Board of Directors
FEBRUARY 2, 2004
CALL TO ORDER
Vice-President Chris Chambers called the regular meeting of the
Lake Moovalya Keys Board of Directors to order at 6:05 p.m.
Vice President: Chris Chambers
Board Members: Bill Risen, Bob Stroud, Trish Wikoff, Russ Derby,
Jack Sweeney, Joe Maxwell, Joe Price, Gary Svider
President: Chuck Baker
Board Members: Tonya McPherson
Guests: Barbara Risen (lot 184), Gene Hines (lot 130), Howard
Wikoff (lot 095)
Legal Counsel: John C. Churchill
General Manager: Richard DiNolfi
Bookkeeper/Recording Secretary: Sue Thomson
Ms. Thomson was instructed to correct the third sentence of paragraph
1, page 1 under "Minutes" to read as follows: "Mr.
Sweeney stated that a minimum 39' is required from dock to dock.
The bridge clearance is 14'."
There being no further discussion, Mr. Risen
made a motion to approve the January 2004 Minutes as corrected.
The motion was seconded and unanimously carried.
CALL TO PUBLIC
Mr. Hines (lot 130) opened discussion about his ongoing problem
with rainwater runoff onto his property. He presented a letter
to the Board dated 2/2/04 wherein he states that the sewer installation
raised the street in front of his home and created rainwater flow
directly to his property. He stated that Sandy Brown had previously
asked him to submit two repair bids. Mr. Hines stated that he
asked Steve Stanton and Mike Dyer to submit bids. Steve Stanton
did not bid, and Mike Dyer submitted a bid for $1,500 to install
40' of 4" pipe, but that he could not get to it for over
four months. Mr. Hines stated that he spends the summers in North
Dakota, and since his return, he took the project upon himself
so that it could be completed before the rainy season. He dug
a 1' wide; 83' long drainage ditch that is concrete lined and
covered with redwood planks. Mr. Hines submitted receipts for
materials, and a list totaling $1,233.41 for labor and materials.
Mr. Hines stated that he is willing to accept the sum of $1,000
as full and complete settlement of this matter.
Mr. Chambers asked Mr. Churchill's advice
on whether or not the Board should reimburse Mr. Hines, and whether
or not the Association has any of Kenko's money left which could
be used for this purpose. Mr. Hines stated that several homeowners
have noticed a similar problem, and that they resolved the problem
using redwood planks that can be unscrewed to enable clean out.
Mr. Risen pointed out that Mr. Stroud has
a similar problem with rainwater runoff. He inquired whether the
Board should be addressing these problems individually or as a
whole. Mr. Hines stated that he did not have this problem prior
to the road being redone by Kendo. Mr. Churchill stated that a
number of homes are below street level. As new homes are being
constructed, they are building them above street level, which
causes the houses on lower elevations to take on more runoff.
Mr. Hines stated that new homes are being constructed with proper
drainage. Mr. Churchill stated that the lowest elevation houses
are going to have a problem, but that they are installing drainage.
Mr. Hines also stated that he paid $250 to
have an inspector engaged by the Association do an inspection.
He stated that the inspector could not do a proper inspection
and returned $100 of the $250 fee.
Mr. Churchill stated that the Association
needs time to analyze Mr. Hines' problem. If the problem did not
exist before Kenko's road reconstruction, then we can hold Kenko
responsible. He also stated that the Association might not be
responsible. He further stated that the Association might want
to get water easements for drainage purposes. Mr. Hines stated
that he was asked about an easement, but that he did not want
one. Mr. Hines stated that the road was obviously changed.
Mr. Chambers requested Mr. DiNolfi to look
into this situation and that the Board would then readdress the
Mr. Churchill stated that as a compromise
the Association might want limited easements for rainwater runoff;
that we may have money we're holding for Kenko, which the Association
could use for this purpose, as a continuing right for runoff.
Mr. DiNolfi asked Ms. Thomson if she would
research prior Minutes for any discussion regarding the Kenko
Mr. Sweeney stated that the bridge near Mr.
Hines' house was raised 8 or 9" and that the water runs off
both sides of the bridge. Mr. Churchill stated that Kenko, to
correct the too-high crown, returned the bridge to its original
slope. It was difficult to get a boat trailer or RV over the old
bridge, but that the bridge was not raised 8 or 9" as Mr.
Sweeney suggested. Mr. Sweeney stated that a fill in was done
on each bridge approach to reach the original hump, resulting
in an 8" height increase on approaches. Mr. Price stated
that the approaches were lengthened. Mr. Hines stated he was told
to address what is in front of his house.
Mr. DiNolfi recommended handling each rainwater
runoff situation separately, and let Kenko deal with this if we
are holding some of their funds.
Mr. Chambers again stated that Mr. DiNolfi
is to look into the Hines' matter, and the Board will readdress
The December financial reports and bookkeeper's reports were discussed.
Mr. Sweeney asked Ms. Thomson for an interpretation of the -$5,530
in Accounts Receivable on the 1/31/04 Cash Flow Report. Ms. Thomson
explained that this is an accounting adjustment to reflect the
current state of the accounts receivable.
Mr. Price made a motion to approve the December
financials as presented. The motion was seconded and unanimously
Ms. Thomson's delinquent accounts receivable
report was previously distributed and reviewed, and Ms. Thomson
updated the board on recent delinquent accounts brought current.
Mr. DiNolfi stated that Mr. Duncan (lot 146) was working on a
project in the Keys, and he would pay him a visit in an attempt
to get the check for delinquent dues that Mr. Duncan had been
There being no further discussion, Mr. Risen
made a motion to approve the January Bookkeeper's Report and Supplemental
Bookkeeper's Report, including the prepaid bills and bills for
approval. The motion was seconded and unanimously carried.
Prior to Mr. DiNolfi presenting his General
Manager's Report, he discussed the situation with Mr. Vestermark
(lot 222). Mr. DiNolfi stated that the County is no longer concerned
about whether or not homeowners receive prior Association plan
approval, and that they are issuing permits without homeowner
association approval. Mr. Vestermark had been given a cease-and-desist
notice on his remodeling project because the Association had not
yet approved his remodeling plans, even though Mr. Vestermark
obtained his building permit from the County. Mr. Vestermark presented
his plans and his construction deposit to the Association on or
about 1/29/04, four days after the cease-and-desist letter, and
upon Mr. DiNolfi's physical inspection of the project, the setbacks
and building heights are constructed as per the plans. Mr. Sweeney
stated that the County used to insist on homeowner association
approval prior to issuing permits, but that is not the case anymore.
Mr. Chambers stated that he would contact Dale with La Paz County
to attempt to remedy this matter. Mr. Churchill stated that while
the County formerly accommodated us as a small-town courtesy,
it remains the Association's responsibility to police illegal
Mr. Derby stated that Mr. Coykendall's plans
(lot 198) are forthcoming, and that he has been working with Dale
from La Paz County in this matter, but that he has been having
some problems in this regard.
Mr. DiNolfi stated that Mr. Vestermark's plans
call for a 3' setback, which should be 5'. Mr. Stroud stated that
setbacks must be 5' on pre-existing commercial properties, which
the Vestermark property is. Mr. Churchill stated that the Board
has 35 days after a Board meeting to approve or disapprove submitted
plans. Furthermore, the homeowner cannot technically start work
until the Board has approved submitted plans. Mr. Chambers distributed
four copies of Mr. Vestermark's proposed plans among the Board
members for review at the end of tonight's meeting.
Mr. DiNolfi stated that the re-fogging of
the stucco on the guardhouse has not yet been done, and Mr. Chambers
stated that Ernesto of Gonzalez Plastering would get to it.
Mr. DiNolfi stated that he extended the seven-day
limit for boats parked in the common lot another week, as the
water level remained down beyond the time it was scheduled to
Mr. Price discussed the accumulation of asphalt
on the drains, and Mr. DiNolfi stated that he is having the drains
and manhole covers blow torched. Mr. Price also discussed the
needed refacing of the peeler/telephone poles, and that Steve
Stanton and Mike Dyer should submit their bids. Mr. Price asked
Mr. DiNolfi to follow up on the matter.
Mr. Dinolfi stated that he would follow up
on the next phase of the five-year road-resurfacing plan, with
the seal coat following the slurry.
Mr. Braun's Groundskeeper Report was discussed,
and Mr. DiNolfi was asked about his supervision of Mr. Braun's
duties. Mr. DiNolfi stated that he does not police Mr. Braun's
daily duties, that Mr. Braun always does what he is asked, but
that he takes Mr. Braun's report at face value.
Mr. Derby expressed concern over the recent
arrival time of the trash trucks, i.e., 10:30 a.m., and the fact
that traffic was backed up waiting for the trucks to finish their
duties. APS was among those who were blocked. Mr. DiNolfi stated
he would talk to the rubbish company to see if they can arrive
at around 7:00 a.m. so as not to block so much traffic. He will
also ask them to place the dumpsters in a more consistent location
Mr. Churchill discussed the letter that went
out to all homeowners on January 1, specifically regarding parking
within the white lines. He expressed his concern about people
taking advantage of what we intended the letter to address on
the subject. Mr. Churchill reiterated that one must be parked
on his or her property, not on the street, regardless of whether
or not one is parked within the white line. Mr. Churchill requested
Mr. DiNolfi to talk to violators and ask them to park within their
property boundary. Mr. Sweeney stated that the white line has
set a standard for open parking areas. Mr. DiNolfi stated that
the white lines were discussed in a prior newsletter specifically
to set parking areas. Mr. Price stated that the CC&R's don't
address "cars." Mr. Churchill stated that "cars"
are mentioned in the CC&R's, in the context of "parked"
versus "stored." Mr. DiNolfi asked Mr. Churchill what
"stored" means, and Mr. Churchill stated that it means
anything other than temporary use.
Query was made of Mr. Churchill regarding the status of the trash
assessment letters to the Vista del Monumento owners. Mr. Churchill
stated that he has not yet prepared the letters but will do so.
Ms. Thomson mentioned that she is not informed when lot ownership
occurs on VDM properties; that she will need to verify current
ownership to assist Mr. Churchill in properly directing the trash
Mr. Churchill stated that the primary party
on the quiet title matter has executed a quitclaim deed, specifically
the administrative members of the LLC, but that the secondary
party has yet to sign.
The Board reviewed Ms. Thomson's previously distributed proposal
for adjusted compensation effective February 1, 2004.
Mr. Derby made a motion to approve Ms. Thomson's
compensation proposal at a base rate of $750 per month, plus $100
for each set of Minutes, and a statement fee of $150 per occurrence,
effective February 1, 2004. The motion was seconded and unanimously
Ms. Thomson stated that she recently received
quotes from Beaver Insurance Agency on her bond. Upon her presentation
of the bond quotes, Mr. Churchill was asked his advice on the
necessary amount of bond coverage, and Mr. Churchill stated that
the bond should be for $100,000.
Mr. Risen made a motion to approve the procurement
of a $100,000 bond through Beaver Insurance Agency covering Ms.
Thomson at an annual cost of $326. The motion was seconded and
Ms. Thomson stated that she often has difficulty
obtaining a co-signature on checks, particularly when Mr. Baker
is out of town, and she asked if additional Board members could
be added as authorized signatories on the checking account. After
discussion, it was decided that Mr. Sweeney, Mr. Stroud and Mr.
Maxwell be added to the general checking account as authorized
co-signers. Ms. Thomson will obtain a new signature card and circulate
it for signature by all authorized signers.
Mr. Risen inquired if the Association should
increase the maximum amount of repair work overseen by Mr. Dinolfi
from the present $100 per repair with no prior approval required.
After a short discussion, no action was taken.
Mr. DiNolfi, in the interest of safety to
riders, recommended cabling off the access road to the hill adjacent
to the boat ramp, which serves as a short cut for off-road cycles
and golf carts. Mr. Derby stated that cables could prove to be
more dangerous to kids riding at night. Mr. Churchill stated that
the hill is not Association land. We would need Brooke Water to
allow an easement, so we would need their cooperation. Mr. DiNolfi
stated he would discuss the matter with Brooke Water.
Mr. Chambers presented rough plans submitted
by Kirk Northrup (lot 162), which involve extending the garage
10', while maintaining the 10' set back. The extension will not
be enclosed. Mr. Chambers stated that Mr. Northrup's plans are
for a preliminary check only, at this point.
Mr. Hines inquired about whether or not his
neighbor's dock extension is legal, stating that the dock extends
beyond 5'. Mr. DiNolfi stated that the dock is still at 4', that
it was merely lowered; that it is the same length as before, i.e.,
4'. Mr. DiNolfi was asked by Mr. Chambers to measure the dock.
Mr. Vestermark's plans were reviewed and approved
There being no further business to come before the Board, the
meeting adjourned at 7:45 p.m.
Submitted by Recording Secretary, Sue Thomson
APPROVED BY BOARD OF DIRECTORS MARCH 1,