Board of Directors
Regular Meeting
DECEMBER 1, 2003

President Chuck Baker called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:05 p.m.

President: Chuck Baker
Board Members: Bill Risen, Bob Stroud, Tonya McPherson, Gary Svider, Jack Sweeney, Joe Maxwell, Joe Price, Russ Derby

Vice President: Chris Chambers
Board Member: Trish Wikoff

Guests: Barbara Risen (lot 184), Alan McPherson (lot 70), Jennifer Baerg (lot 62), Al Moroff (lot 178)
Legal Counsel: John C. Churchill
General Manager: Richard DiNolfi
Bookkeeper/Recording Secretary: Sue Thomson

Mr. Sweeney requested re-authorization to purchase the camera equipment, and Mr. Baker stated that he was duly authorized at the last Board meeting.

Ms. Baerg stated that she did not receive her last dues' statement, but that she brought a check to pay them tonight.

The Board members reviewed the Minutes of the November meeting, and there were no corrections. Mr. Baker commended Ms. Thomson on a comprehensive recording of the Minutes from the November Board meeting. He stated that the October minutes are still forthcoming from Ms. Braska.

A motion was made, seconded and passed that the November, 2003 Minutes be approved as presented.

The October Financial Statements prepared by Complete Tax Service were discussed. Mr. Price inquired about posting bridge depreciation. It was noted that CTS did make a monthly entry for depreciation, encompassing all depreciation items in one entry.

A motion was made, seconded and passed to approve Complete Tax Service's October 2003 Financial Statements.

Ms. Thomson's past-due accounts receivable report was distributed and reviewed. Mr. Baker stated he would get together with Ms. Thomson to clean up past-due accounts, and discuss procedures for collecting delinquent accounts of $300 or more.

Mr. Derby stated that Linda Braman is deceased, and her name should not appear on our accounts in the future.

Mr. Baker opened discussion on the Bookkeeper's Report. Ms. Thomson stated that since her report was written, she was successful in retrieving the database files that she was previously unable to open, after taking possession of the Association's computer from Ms. Coffelt. October paid bills as presented in the Bookkeeper's November report were approved. Mr. Baker stated he will give Ms. Coffelt a copy of Ms. Thomson's list of missing computer files which were shown to exist at one time in the Recent Documents directory on the computer to see if she has a copy of those files. Mr. Stroud inquired as to who signed Ms. Coffelt's final paycheck, as she presented her bill directly to Complete Tax Service, picked it up herself and obtained, presumably, Mr. Chambers co-signature on the check. Ms. Thomson stated that she has been attempting to reach Mr. Chambers to obtain his signature on the revised Bank signature card, which will substitute her in and remove Ms. Coffelt from the account. Mr. Derby stated that we need to locate the missing computer files, and Mr. Baker stated that he would assist Ms. Thomson in this endeavor, but that most of the files do not appear to be anything that can't be reconstructed.

Mr. Sweeney replied to Ms. Thomson's inquiry about the bond amount needed for her by stating that he thought it appropriate for the bond to be in the amount of $100,000. Mr. Baker responded to Ms. Thomson's inquiry about her authority to purchase office supplies by stating that she is authorized to utilize the Parker Office Supply open account for purchases up to $200 at a time. Ms. Thomson was authorized to order laser check supplies in anticipation of her taking over check writing duties, the generation of dues' statements, and the sole reporting of monthly financials commencing January 1, 2004. The dues' statement format Ms. Thomson presented was approved.

The November bills were discussed, and it was noted by Ms. Thomson that the Laser Brite invoices are missing. Mr. Baker instructed Mr. DiNolfi to obtain a duplicate copy of them. Mr. Stroud pointed out that there are water spots and other stains on the new stucco on the guard shack. Mr. Baker stated he would ask Mr. Chambers to speak with Gonzalez Plastering about repairing the stains.

A motion was made, seconded and passed to approve the November bills as presented.

Mr. DiNolfi reported that the Thanksgiving holiday went well; however, there were lots of off-road vehicles speeding up and down the Association's streets; many of the riders under the age of 16. He sought advice from the Board as to how to enforce the rules regarding unlicensed drivers and off-road vehicles on the premises. Mr. Price stated that off-road riders are allowed on Association streets for the sole purpose of going to and coming from the desert. Concern was expressed by several about riders' safety, and the safety of others coming around corners, and in particular about off-road vehicles on the access road by the canal and the Brooke Water property. Inquiry was made if the Association can legally put up a fence in this area, prior to the Brooke Water property matter being resolved.

Ms. McPherson stated that she, too, noted many people speeding on Association streets in off-road vehicles and cars over the holiday, especially on Yaqui Loop at Moovalya Dr. Ms. McPherson expressed her concern over the Association's liability should an accident occur as a result of excessive speed by any type of vehicle on the premises.

Mr. Churchill responded by stating that the Association will always be subject to lawsuits. Whether or not we are liable is the question. Speed limits are posted on site. Ms. McPherson asked how else we could protect ourselves, and Mr. Churchill stated that a plaintiff in a lawsuit could say that we are not enforcing the CC&R's. Mr. Stroud stated that Mr. DiNolfi needs direction on enforcement of the CC&R's. Mr. Price expressed his disagreement with the off-road vehicle enforcement issue, since the Board previously approved off-road vehicles on the premises, albeit for ingress and egress to the desert. Mr. DiNolfi stated that the operation of off-road vehicles on the Brooke Water property is the biggest problem, with Mr. Sweeney stating we cannot enforce desert riding. Mr. Churchill stated that enforcing is a problem. Mr. Moroff suggested that Mr. DiNolfi should be authorized to tell offenders to pull their bikes off the streets. How to define whether one is using the streets solely for desert ingress and egress is a problem.

Mr. Baker asked Mr. Churchill what we have to do to protect the Association, and would waivers hold up in court. Ms. Baerg inquired if we could send letters to homeowners of known 15 MPH speed limit offenders. Mr. DiNolfi stated he has no problem talking to homeowners, as he has the Sheriff's support. Mr. Baker stated that the Association should strictly enforce posted speed limits, and fine offenders.

Mr. Stroud stated that the overflow pond needs a fence around it also. He also stated that there's been no resolution to the Brooke Water property matter, because that would mean Brooke would fence off the ramp. Mr. Churchill stated that the Association doesn't own the property yet, so we can't construct a fence. The Association owns the ramp only, as a result of exclusive use via the gate, so we could fence the ramp area, but we cannot force a neighbor to construct a fence. Mr. Stroud asked Mr. Churchill of the status of the Brooke Water matter, and Mr. Churchill stated he still has had no response.

Ms. McPherson asked if the oleanders by the road are on Association property, so as to serve as a potential fence site, and she was informed that they are not on Association property. Regarding fences, Mr. Churchill stated that we could solicit neighbors' cooperation.

Mr. Risen stated that it is difficult to enforce speed limit violations and that he didn't believe such charges would hold up in court, that it would be better to go after a charge of reckless driving. Mr. Risen stated he would check with La Paz County to see if a radar unit can be put closer to the Keys.

Mr. Moroff inquired of Mr. Churchill if the Board is authorized to allow unlicensed drivers to operate off-road vehicles, to which Mr. Churchill stated that the Board is not authorized to make this change; a change to the CC&R's would have to be made. Mr. DiNolfi suggested that fines be assessed for violations of rules. Mr. Stroud reiterated that Mr. DiNolfi needs more authorization to enforce rules.

Mr. Stroud said he received a complaint about an RV running electricity and parked illegally. Mr. Churchill stated that there could be only one residence per lot, either an RV, a house, but not both. Ms. McPherson stated that it looks bad, and is awkward, when homeowners question Board members about the violation of rules, and no consequences result.

Mr. Stroud discussed the 7-day parking rule on private lots, and that these violations should be enforced. Mr. Baker stated that parking on private lots is limited to seven days, and he suggested that the Association obtain permission of vacant lot owners to install poles and chains across the front of their lots. He also stated that Mr. DiNolfi was to give the Board an estimate of blocking off vacant lot access. Mr. DiNolfi stated that the Board previously authorized a $100-per-lot expenditure to install poles and chains. Mr. DiNolfi inquired whether or not it is within his power to remove illegally parked trailers, and Mr. Baker instructed Mr. DiNolfi to tell the subject owners to remove such vehicles. Mr. Baker inquired if the Association needs permission from the homeowner.

Regarding the RV parking issue, Mr. Churchill referred to section 12.7 of the CC&R's which states that one cannot park a bus or RV on the street regardless of whether it is inside, or outside, the white line. Parking such a vehicle on a lot is permissible; however, it cannot be used for living quarters, even on a temporary basis. Running electricity to clean an RV on a lot is permissible.

Regarding off-road vehicles, Mr. Churchill referred to the CC&R's, which state that a licensed driver may use the Association's streets for ingress and egress only. Mr. Churchill further stated that in order to change the CC&R's a 75% majority vote is required. Mr. Sweeney suggested that the Association deal with the nuisance aspect. Mr. Churchill agreed and suggested that we send a cease-and-desist letter to homeowners who violate rules. Mr. Sweeney stated that the Association has seen temporary success with such letters in the past and suggests we re-institute cease-and-desist letters and vehicle-removal-request letters, and ticket the nuisances as needed.

Mr. Baker suggested a letter go out with the next dues' statements to all homeowners, addressing these issues and asking for homeowners' cooperation. Mr. Baker asked Mr. DiNolfi to work with Ms. Thomson in putting the draft letter together. Mr. Churchill requested that he review the draft. The draft letter is to be e-mailed to Board members for their review, and the letter shall be finalized prior to month end so that it can be sent with the January 1 dues' statements to property owners. The letter shall address nuisance, RV's, 7-day parking, and the fencing of the vacant Yaqui Loop lots.

Mr. Braun's Groundskeeper's Report was discussed, and Mr. Baker asked Mr. DiNolfi to request Mr. Braun not to remove discarded items from the dumpster, as anything that fits in the dumpster should be left in the dumpster. Mr. Risen stated that Arizona Battery and Napa Auto Parts accepts old batteries for recycling.

Mr. Baker asked Mr. Churchill about the status of the Sandy Brown matter, and Mr. Churchill stated that he has heard nothing, and he will send her a final letter before proceeding with legal action.

Mr. Sweeney presented an instruction sheet on gate access, and Ms. Thomson was instructed to post the document on the website.

Regarding the cameras, Mr. Sweeney states the cost for the cameras will be $5,500 plus shipping and tax. Mr. Moroff discussed the resolution and lens options of the cameras, stating that the cameras record at half resolution. This may be a problem in playback when attempting to identify a license plate number. A longer lens is needed to compensate for the loss of resolution, and it was recommended that 25mm lens be used for the cameras recording vehicles arriving at the gate entrance, and a longer lens be used on the two cameras inside the gate. Mr. Moroff stated the lenses are interchangeable and the cost is the same for each. The purchase of two lenses of each type as discussed was approved. Mr. Moroff stated that the hardware, a 166-gig drive, will hold 12 days of recorded imaging, and another drive can be added if the Association wished to have more than 12 days of storage.

A motion was made, seconded and passed to increase the amount to $6,000 to purchase the camera equipment.

Mr. Baker discussed the needed repairs, toilet replacement and tile work in the guard shack, and that Mr. DiNolfi had volunteered to finish these repairs. Mr. Baker requested Mr. DiNolfi to take care of these projects.

Mr. Sweeney requested the replacement of the light fixture for the fence, at the approximate cost of $50; Mr. Baker approved the request and asked Mr. Sweeney to select one.

Mr. Risen asked why the Association does not have a Keys' identification sign at the entrance for visitors unfamiliar with the area. Mr. Baker asked Mr. DiNolfi to design a sign prior to January's Board meeting, that it should be simple, preferably using wrought iron material.

Mr. Baker asked Mr. DiNolfi the status of the two telephone lines in the Association's name, one of them being the business line located in Ms. Coffelt's home, the other in Mr. DiNolfi's home. Mr. DiNolfi stated that the business line in Ms. Coffelt's home had been disconnected. Mr. Baker asked Ms. Thomson to verify the disconnection and the termination of the account.

Mr. Baker presented revised architectural drawings on behalf of the owner of lot 216 for a proposed duplex to be built on that lot, which is adjacent to the Wimpy's property. Mr. Churchill stated that a duplex may be constructed on a commercially zoned lot, but that he is not sure how the lot is presently zoned. Lots 216-235 were initially zoned commercial; that the CC&R's contemplated C-1 zoning only.

A motion was made, seconded and passed to approve the revised plans for lot 216, as long as the lot is not zoned R-1.

Mr. Baker presented remodeling plans submitted by the Bozemans, lot 61. The plans are for a remodel of the front of the structure.

After discussion, a motion was made, seconded and passed to approve the remodeling plans for the front of the structure located on lot 61.

Ms. Baerg informed the Board that she has been having problems with the Bozemans' dogs on lot 61, in that they are jumping over the fence into her yard, where there have been dog-bite incidents, in addition to a dog odor problem caused by unremoved animal waste.

Mr. Baker asked Mr. DiNolfi to investigate the run-down condition of the house on lot 10.

Mr. Churchill presented the Board with a legal bill from his office from the period of January through May 2003. He explained that his office installed a new computer system earlier this year and that the bill was not generated until now.

A motion was made, seconded and passed to approve payment of Mr. Churchill's May 31, 2003 statement for legal services rendered.

Mr. Stroud discussed the status of the flooding problem at the front of his property. He stated that the street was rebuilt improperly after the sewer installation so as to cause the pooling of rainwater in front of his driveway. He took photographs to Buckskin Sanitary who referred the matter to Kenko. Mr. Stroud stated that he was told by Buckskin that Kenko has no funds to fix the problem, nor does Buckskin have the funds to correct the problem. Mr. Stroud also related to the Board that he was told about cracked sewer pipes, that this problem was relayed to Kenko by Buckskin, and that Kenko has no funds to fix the cracked sewer pipes either.

Mr. Svider brought the Board a report on Listing Agent Obligations, which suggests renters sign an acknowledgment of Association rules; he further suggests renters place a deposit in an escrow account, and any violations of rules would cause a deduction from the deposit. Mr. Baker asked Mr. Churchill if the Association can do this, and Mr. Churchill stated there's nothing that says we can, or nothing that says we can't. Mr. Sweeney suggested brokers use this document for weekend renters.

Mr. Baker recommended that the Board put together a program for presentation at the next annual meeting regarding Association rules, violations and consequences. Ms. McPherson stated that if nothing else, at least people would be aware of the rules. Mr. Baker further recommended that Mr. Svider compare the content of his document with Mr. DiNolfi's former proposal, choose three or four of the most serious issues with which the Board can impose a fine, and present the matter again to the Board before March.

Regarding the dog issues with the Bozemans, Mr. Baker told Ms. Baerg that Mr. DiNolfi will contact the Bozemans to deal with the problems.

Mr. Derby informed the Board about a letter River Cities Waste sent to VDMA owners stating that they were no longer providing those residents with trash cans and that they were instructed to use the Keys dumpsters. Mr. Baker asked Mr. DiNolfi to investigate the matter with River Cities Waste.

Mr. Price mentioned that chains on certain lots were installed too far into the street. Mr. Churchill stated that the poles and chains must not extend outside the property boundary.

Mr. Derby inquired as to whether or not the gate should remain open for the Holiday Home Tour on December 14, as two Association homes are on the tour route. Mr. Baker stated this would be acceptable, but that Code 5050 be deleted from the gate system for security reasons, as too many people know about it

Mr. Stroud was excused from the meeting in order for the remaining members to discuss the flooding problem on Mr. Stroud's property. There was a discussion about the situation prior to the sewer project as compared to the situation now, why there's a problem and what could be done to alleviate the problem. Mr. Risen inquired as to whether the Association ever paid for a homeowner repair of this nature. Mr. Baker responded that there had not been.

Mr. Churchill stated that the Association could be responsible if something the Association did (i.e., the installation of a sewer system) changed the flow of water to create the damage. Mr. Baker asked Mr. DiNolfi to ask Mr. Stroud to show the Board his back-up documentation. Mr. DiNolfi was asked to report back to the Board with his recommendation of a reasonable solution. Mr. Churchill also stated that the development of new houses can cause a change in flow of water, and there have been instances of water that formerly ran across vacant lots, but is now diverted elsewhere with the development of the lot.

Mr. Baker stated that the next Board meeting is set for January 5.

There being no further business to come before the Board, the meeting adjourned at 8:15 p.m.

Submitted by Recording Secretary, Sue Thomson