Board of Directors
Regular Meeting
FEBRUARY 2, 2004

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.

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 issue.

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 money.

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 issue.

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 carried.

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 promising.

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 building.

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 rise.

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 when dumping.

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 assessment letters.

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 carried.

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 unanimously carried.

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 as submitted.

There being no further business to come before the Board, the meeting adjourned at 7:45 p.m.

Submitted by Recording Secretary, Sue Thomson