LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
MARCH 1, 2004

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

PRESENT
President: Chuck Baker
Vice President: Chris Chambers (arrived at 6:40 p.m.)
Board Members: Bill Risen, Bob Stroud, Trish Wikoff, Russ Derby, Jack Sweeney, Joe Maxwell, Joe Price, Gary Svider, Tonya McPherson

ABSENT

OTHERS PRESENT
Guests: Barbara Risen (lot 184), Gene Hines (lot 130), Al McPherson (lot 070)
Legal Counsel: John C. Churchill
General Manager: Richard DiNolfi
Bookkeeper/Recording Secretary: Sue Thomson

MINUTES
Mr. Sweeney instructed Ms. Thomson to revise the February correction to the January Minutes; 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, a motion was made to approve the February 2004 Minutes as corrected. The motion was seconded and unanimously carried.

REPORTS
Some of the Board members stated they were unable to retrieve in a legible format the January financials e-mailed by Ms. Thomson. Ms. Thomson stated that the financials were converted into tab-delimited format then cut and pasted into one document/attachment. Many of the Board members stated they would prefer to view the financials in QuickBooks' format. Ms. Thomson stated she would mail the January financials, in QuickBooks format, to all Board members before the end of the week, and she will work on a new technique for future e-mail distribution of financials. The approval of the January financials was postponed until the next Board meeting.

The delinquent accounts report was discussed, with Mr. Baker expressing his pleasure at the fact that there are currently only five delinquent accounts over $300. It was noted that Mr. Braun retired his position as groundskeeper effective February 19.

The Bookkeeper's Report was discussed. Ms. Thomson reported that Complete Tax Service has not yet completed the 2003 financials or the 2003 income tax returns. Ms. Thomson met with Tammy at Beaver Insurance to do the initial review of the renewal policies of insurance. Ms. Thomson reported that her surety bond is in place for $100,000. Ms. Thomson, and Mr. Baker, both stated they have been in contact with Becky Braska regarding the production of the 2003 annual meeting minutes, the October minutes, and the final approved minutes for July and September. Prepaid bills and bills for approval were discussed.

A motion was made to approve the February Bookkeeper's report, including the prepaid bills and bills for approval. The motion was seconded and unanimously carried.

Mr. DiNolfi read the General Manager's report. Excess vegetation needs to be cleared on Lot 9, as well as lot 10 to reduce the fire hazard. Mr. Chambers stated the fire department has given prior warnings to the owners of lot 9. Mr. Baker requested Mr. Churchill to prepare and send letters to the owners of lots 9 and 10 regarding the hazardous overgrown vegetation. Mr. Baker asked Mr. DiNolfi to take photographs of the overgrown vegetation and submit them to Mr. Churchill.

Mike Dyer submitted an unacceptable bid on the bridge repairs, and Mr. Stanton is working on his bid. Mr. DiNolfi presented his separate reports regarding Mr. Hines and Mr. Stroud's flooding issues, which will be discussed later tonight in a closed session. Mr. DiNolfi also researched prior meeting minutes regarding the purpose of the white stripes in the streets. If the Association decides to enlist Parker Towing to remove vehicles in violation, it would have to pay for their services at the time of towing. Mr. DiNolfi stated there is now a sun shield protecting the gate code unit, fabricated by P&M Enterprises.

Mr. Baker asked Mr. Hines if he had any further information to present tonight on behalf of his request for partial reimbursement in the amount of $1,000 on the drain he had installed. Mr. Hines stated he did not. Mr. Baker asked Mr. DiNolfi if he has any questions. Mr. DiNolfi asked Mr. Hines whom the inspector was that he referred to at last month's Board meeting. Mr. Hines stated he only knew that he paid $250 to the Association for its engagement of an inspector in 1975. Mr. Baker stated that this matter would be discussed towards the end of tonight's meeting in a closed session. Mr. Svider asked Mr. Hines if he has a live cable wire running the length of the drainage ditch. Mr. Hines stated there is a live telephone line in the ditch. Mr. Hines stated that he has contacted Kenko and Buckskin Sanitary requesting reimbursement, and all they said to him was, "have a nice day". Mr. Hines further stated that with the recent rains, he didn't have any flooding problems; that his new drain handled the runoff.

As a follow up to Mr. Hines' prior concern about his neighbor's dock extension, Mr. Hines stated that he spoke with the Army Corp of Engineers. He thereafter measured the subject dock beams and stated that the dock falls within the limits of the law, i.e., 5' by 50'.

Mr. Stroud asked about specific dock requirements, and Mr. Baker stated that the original CC&R's allowed a homeowner to replace a dock at not to exceed the length of the original dock. However, when the sewer system went in, all bets were off, and the new requirements were that docks could not be constructed beyond that of adjacent homeowners' docks.

OLD BUSINESS
Mr. Baker asked Mr. Chambers if there had been any follow up discussion with the County regarding its approval of plans prior to the required Association plan approval. Mr. Chambers stated there had not been any further word.

Mr. Baker asked Mr. Churchill about the status of the VDMA trash assessment letters, and Mr. Churchill reported that the letter is drafted. Ms. Thomson is to obtain the names of the property owners who will be receiving the letter. Mr. DiNolfi reported there has been no further activity regarding the Brooke Water matter.

Mr. Baker discussed the upcoming renewal of the Association's insurance policies, stating that Mr. Sweeney is to get serial numbers on the new camera system equipment in the guardhouse, to the extent there are serial numbers. Mr. Sweeney asked Ms. Thomson to submit a copy of the equipment invoices to Beaver Insurance. Mr. Baker stated he has asked Beaver Insurance to increase the coverage on the bridges to $20,000 and that he wants clarification on coverage described as "bridge coverage". Mr. Baker also requested Beaver Insurance to increase coverage on the guardhouse to $10,000.

Mr. DiNolfi reported that the second phase of the street resurfacing plan is underway, with T&C Seal Coating ready to seal coat the streets at a price of $21,892. Upon completion of the seal coating, the Association's streets will require no further maintenance for three years. He also stated that Buckskin Sanitary could do a hot patch on the Apache lot needing attention, perhaps as soon as next week. Mr. McPherson inquired if there were any lots that could be affected by lateral sewer hook ups, and should the laterals be located prior to the street work. Mr. Derby stated there aren't many undeveloped lots left, so it is not an issue.

A motion was made and seconded to approve the T&C Seal Coating Bid to seal coat the streets for $21,892. There was discussion about whether or not Buckskin Sanitary would replace the cracked sewer lines, with Mr. DiNolfi stating that Buckskin and Kenko do not have funds for repairs. Mr. Baker asked Mr. DiNolfi to make sure they are not going to do anything. Mr. Churchill asked if the job cost includes striping, and Mr. DiNolfi stated the stripes would be visible after the job, with Mr. Baker adding that the Association will need to re-stripe. Mr. DiNolfi responded to Mr. Baker's request of him to confirm that Kenko and Buckskin were not planning on replacing cracked sewer pipes by referring to the December 2003 minutes concerning this matter wherein Mr. Stroud stated to the Board that Buckskin told him they did not have funds to correct any problems and that "the problem was relayed to Kenko by Buckskin, and that Kenko has no funds to fix the cracked sewer pipes either". Mr. McPherson inquired about potential liability to the Association as a result of cracked sewer pipes. Mr. DiNolfi stated that they are merely hairline cracks or stress cracks. Mr. Baker stated that liability lies with the sewer district. The motion was seconded and unanimously carried.

Mr. DiNolfi was instructed to confirm with Buckskin Sanitary its position on the cracked sewer pipes issue prior to commencement of the seal coating. Mr. DiNolfi will also notify homeowners of the seal coating job schedule.

Mr. Baker opened discussion on the "parking vs. storage" issue, stating that boats parked in the streets are considered "storage" because they are inoperable on pavement. Mr. Derby stated that the Association needs to be specific regarding the purpose of the white lines. Mr. Churchill was instructed to prepare a notice to homeowners clarifying the rules on parking. Mr. Churchill stated the notice would clarify that the purpose of the white lines was not to move property lines into the streets; that parking on the streets shall be defined as the temporary placement, not to exceed 72 hours, of an operable motor vehicle. Violators will be notified in writing, and if their vehicle isn't moved, it will be towed, and their lot will be assessed the towing fee. The towing company will charge the vehicle owner directly for any storage fees. Mr. DiNolfi shall be responsible for enforcement. Mr. McPherson inquired if La Paz County rules apply to Association streets, and Mr. Churchill stated they do not, as Association streets are private property. Mrs. McPherson suggested the letter give homeowners a deadline, perhaps after the April 10 annual meeting, to move vehicles that are in violation and that homeowners should also be reminded about the rules regarding motor homes.

Mr. Baker opened discussion on the Stroud flooding matter, the Board having previously reviewed Mr. DiNolfi's comprehensive report. Mr. DiNolfi reported that during last Friday's heavy rain, he was at Mr. Stroud's house observing the rainwater runoff, stating that water was running over the lot, but it didn't "lake" as before. Mr. Baker asked Mr. Stroud if he concurs with Mr. DiNolfi's assessment, and Mr. Stroud stated that he didn't know. Mr. Stroud did say that typically the water spills over the hump, fills the driveway, and then proceeds towards the garage; that incomplete grading caused a low spot. Mr. Price pointed out that no one is aware of what the situation was prior to the sewer installation. Mr. Derby stated that the only way to alleviate runoff problems for homeowners is to channel it towards the ramp. Mr. DiNolfi believes the solution to the problem would be a fill patch to the high points, and then Mr. Stroud could install a 10-12' grate directing water to the river. There needs to be catch basin to carry water to a 3" drain that Mr. Stroud is already tying into. Mr. Baker stated that since Mr. Stroud's neighbor on the right is about to build a garage, would it be possible for Mr. Stroud to tie into that drain. Mr. Stroud stated that he would install a trough once the street is fixed. Mr. Baker deferred further discussion on the matter until a closed session later tonight.

Mr. Stroud inquired about the fire department's request that street address numbers be visible on the canal-facing side of all houses. Mr. Chambers stated the fire department is not enforcing its request, but it is helpful to rescue boats to be able to identify properties from the water. Mr. Risen stated that the request is posted on the website, and Mr. Baker said he will mention it at the annual meeting.

NEW BUSINESS
Mr. Sweeney reported that ten women who wish to hold a community garage sale on either the first or third weekend of April have approached him. Mr. Stroud stated that the CC&R's do not allow garage sales, especially one of this magnitude, and too many people would show up, which would be a real problem with our narrow streets. Mr. Stroud also stated that this would present a security issue, as the gate would have to remain open for the sale. Ms. Wikoff stated that she was previously approved for an individual garage sale.

A motion was made and seconded that the holding of an area garage sale by the women who have requested permission to do so be approved for the third week of April. After discussion, a vote was taken, and the motion failed carry.

Mr. DiNolfi presented a plan review by the new owners of lot 60 located at 8812 Apache. Several of the Board members had already reviewed the plans with Mr. DiNolfi prior to the meeting. The plans involve a conversion of the existing carport into an extended garage. The homeowner is requesting permission to extend the garage wall 9" beyond the existing face. It was pointed out that the columns are not 10' from the property line, as is indicated in the plans. It was also pointed out that on the lot 61 (Bozeman) remodel, the Association allowed the Bozemans to build out to the face. Mr. Derby stated that the Bozemans removed the existing columns and put in the floor and stem walls. Dale at La Paz County had been asked if they would need a variance and were told they would not, because there was no change in the roof. The plans for lot 60 call for the new face of the proposed garage to be in line with the Bozeman's face. Mr. Churchill stated that he did not believe the lot 60 plans were properly drawn, because the property line appears to be in the same place as the white line, and he believes that the garage could be constructed only to the columns. Mr. Sweeney stated that the requested 9" extension would bring the face out to the structure's gable end, which is acceptable procedure. Again, it was noted that the plans are incorrect regarding the 10' setback, and the Association needs better plans submitted and a physical inspection. Mr. Risen stated that properly surveyed plans should be required, as have been in the past.

A motion was made and seconded to approve the plans submitted by the owners of lot 60 for a carport-to-garage conversion, with a 9" face extension beyond the existing post to the gable. There being no further discussion, the motion carried by a majority vote.

Mr. DiNolfi presented plans submitted by Neil Kleine (lot 223) for the construction of interior walls.

A motion was made and seconded to approve Neil Kleine's plans for the construction of interior walls in the structure located on lot 223, without the necessity of a construction deposit. There being no discussion, the motion was unanimously carried.

Mr. Baker opened discussion on the annual meeting set for April 10, stating that this year's meeting will be held on site, with a pit barbecue and refreshments following adjournment of the meeting. Mr. Chambers volunteered his services and equipment in the barbecue set up, and he will enlist the services of the pit cook. Trish Wikoff, Tonya McPherson and Pat Farmer will serve on the set-up committee. The barbecue lunch will be free to those members who sign in at the annual meeting.

ADJOURNMENT
The regular meeting recessed at 8:10 p.m., with Mr. Stroud and Mr. Hines being excused. The Board convened to a closed session for the purpose of discussing Mr. Hines' request and Mr. Stroud's request for assistance in the resolution of flooding issues on their respective properties. The Board reconvened the regular board meeting and adjourned at 8:30 p.m.

Submitted by Recording Secretary, Sue Thomson

APPROVED BY BOARD OF DIRECTORS APRIL 5, 2004