Board of Directors
Regular Meeting
APRIL 5, 2004

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, Trish Wikoff, Russ Derby, Jack Sweeney, Joe Price, Gary Svider

Vice President: Chris Chambers
Board Members: Joe Maxwell, Tonya McPherson

Guests: Barbara Risen (lot 184)
Legal Counsel: John C. Churchill
General Manager: Richard DiNolfi
Bookkeeper/Recording Secretary: Sue Thomson

Mr. Stroud suggested that future Board meetings be tape recorded, as he feels there are comments made at the meetings that are not incorporated into the Minutes. Mr. Baker tabled the matter for discussion later in the meeting.

There being no further discussion, Mr. Price made a motion to approve the March 2004 Minutes as presented. The motion was seconded and carried.

Mr. Price requested an itemization of the expenses in the "Repairs & Maintenance: Misc." account, and Ms. Thomson stated that she would provide him with it. The February Financials and Bookkeeper Report were reviewed. Ms. Thomson asked the Board members if they successfully downloaded the e-mailed financials in their new format, and the Board members stated they did receive them. The digital camera purchase for the Association was approved by a special vote mid-month. The parking Notice to homeowners went out to all homeowners with the April dues' statements. Mr. Churchill was provided the addresses of all Vista del Monumento Acres' homeowners so the trash assessment letters could be sent from his office. Ms. Thomson is attempting to locate from Mr. Churchill's office the computer file for the CC&R's so that they can be posted on the Association's website. Ms. Thomson reported on the status of several old late fees that are being carried on the books, which matter was tabled for discussion later in the meeting. Monthly expenses were listed in the Bookkeeper's Report, and in addition to those bills presented, additional bills incurred after the 3/25/04 Report include Davis Ace, Verizon, and River Cities Waste.

Mr. Derby made a motion to approve the January and February financials, and the March bills for approval as presented. The motion was seconded and carried.

Mr. Baker stated there is currently only one delinquent account over $300, that being lot 010, and that a lien would be filed on the property if not paid when due. Ms. Thomson stated that the due date was today.

Mr. DiNolfi read the General Manager's report. He stated that a notice should be sent to the owners of lot 008 regarding the use of their fifth wheel as secondary living quarters. Mr. DiNolfi again reported on the conditions of lots 009 and 010, specifically about the fire hazards of overgrown vegetation on both lots, an abandoned vehicle on lot 009, and the bare-roof structure on lot 010. Pictures of violations on both lots will be presented at the next Board meeting. Mr. DiNolfi stated he moved two pontoon boats off the streets and onto the common lots in preparation for seal coating. Also, an abandoned van was moved. Mr. DiNolfi informed the Board that he has stopped a few golf carts with underage drivers and sent them home.

Mr. DiNolfi reported a mud and water problem on lot 183, with muddy water flowing into the street when the yard is watered. He suggested the Board consider asphalting the apron to avoid cars carrying mud up and down the street. Mr. Sweeney stated that this problem exists on other lots as well, and how does the Association address one without addressing the others. Mr. Churchill stated that this is probably a nuisance, since the watering system keeps the area constantly wet, and it has nothing to do with rain.

Mr. Baker asked Mr. Churchill if he wrote a letter to Mr. Willoughby (lot 010). Mr. DiNolfi stated that he has to get Mr. Churchill the photos, as discussed at last month's meeting. Mr. Baker asked Mr. Churchill to write a letter to the owners of both lots 009 and 010. Mr. Sweeney inquired if it was supposed to be bulldozed (lot 010 structure). Mr. Churchill inquired if the abandoned vehicle (lot 009) was actually abandoned. Mr. DiNolfi stated that it was, as it has been there over one year, the vehicle being a Buick Riviera.

Mr. DiNolfi was asked about the large pile of trash on Yaqui Loop. Mr. Risen stated that the structure on lot 185 had an attic fire last Saturday night, with damage to the attic and kitchen. There is to be an inspection to view the debris tomorrow, prior to removal of the debris.

Mr. Baker asked Mr. DiNolfi about the oil slick in front of the dumpsters. Mr. DiNolfi reported this was a result of the T&C Seal Coating changing oil and that oil sloshes out the hoses and fittings. Mr. Baker asked Mr. DiNolfi to take a look in the dumpsters to see whether or not it was from the truck, and power wash if necessary.

Mr. Baker inquired about the huge pile of construction demolition debris on lot 222 (the old Denton building on Riverside Drive). Mr. DiNolfi was requested to call the lot owner immediately to remove the debris as soon as possible. There was a discussion about whether or not the demolition was part of the submitted plans on lot 222. Mr. Derby stated that the County had 90 complaints today regarding the unsightly debris pile. He also stated that the homeowner needed to get the demolition done as soon as possible to prepare for the framers, and that two dump loads and a water truck provided by Mike Dyer would be needed to clean up. Mr. Baker stated that the original plans did not appear to include exterior walls, and he inquired of Mr. Churchill if the Association could stop the homeowner. Mr. Churchill stated that it could with an injunction. Mr. Derby stated that the Association approved the plans. Mr. Baker asked Mr. DiNolfi to stop the homeowner from further work, and to find out whose wall it is. Mr. Sweeney stated that the block wall is the Denton wall (lot 222), and that there are two walls. Mr. Baker stated the Association couldn't approve a zero setback. Mr. Churchill stated that we would have to see the plans and review the zoning. Mr. Stroud inquired whether the lot is zoned residential or commercial. The Association needs to determine the zoning. Mr. Churchill stated his concern about not having setbacks. Mr. Baker stated that setbacks were grand fathered on commercial properties. Mr. Sweeney stated that Neil Kleine's wall (lot 223) backs up to the wall on lot 222.

Mr. Baker asked about the Bozeman's dog (lot 061). Mr. DiNolfi stated that Gary Schmidt found a wallet that belonged to one of the Bozeman's workers, and when Mr. Schmidt approached the Bozeman's garage to return the wallet, he had to fend off the dog with his hand, and he got chewed up. Mr. Schmidt stated that he felt he was at fault and did not wish to file a report. Mr. DiNolfi stated that the only sign on the property reads "DOGS". Mr. DiNolfi suggested that Mr. Schmidt file a report, and that he will ask him when he sees Mr. Schmidt again. Mr. DiNolfi further stated that this dog is a bad hazard. Mr. Derby stated that a neighbor has threatened harm to the dog. Mr. Baker asked Mr. Churchill if the Association could do something to avoid liability. Mr. Churchill stated that a letter has already gone out to the Bozemans and that the Baergs (lot 062) filed a complaint several months ago. Mr. DiNolfi stated that he has seen the Labrador retriever maced, and it still does not back off, and he knows that the dog was kicked out of a former location. Mr. DiNolfi stated he believes the dog is more than a nuisance now, and is concerned that there are no adequate signs posted warning of the dog. Mr. Baker asked Mr. Churchill to send another letter to the Bozemans regarding their dog and that a copy be sent to Animal Control. Mr. Churchill asked if the dog has been aggressive outside of the yard, and Mr. DiNolfi stated that it has, prior to the restrictive gate being installed.

Mr. DiNolfi reported that other than the debris pile on lot 222, all construction projects in progress have been monitored, and everyone is doing a good job of cleaning up. Dearcos Landscaping has now been hired to maintain the lawn and vegetation at a cost of $60 every other week, resulting in reduced expenditures for grounds maintenance. Mr. Stroud asked if the weeds are being attended to.

Mr. Derby discussed the mess at Fontleroy's old lot, and that Mike Dyer was to move the mess. Mr. Churchill asked if a fence is going back up at the rocks, and Mr. DiNolfi stated that it was not, that more rocks would be brought in. Mr. Churchill stated that rocks don't seem to be stopping the cycles, and Mr. DiNolfi stated that the rocks Mike Dyer will deposit will block cycles from speeding through. Mr. Churchill stated that there used to be a fence there to stop cycles.

Mr. Derby expressed his displeasure at the unsightliness of the area from the dumpsters to the gate. Mr. Churchill stated that he continues to work on getting the other two remaining quitclaim deeds so the Association can clean up the entire area. He stated he has received one quitclaim deed on the section where the oleanders are located but is awaiting the remaining two quitclaims on the area by the mailboxes. Mr. Churchill is in contact with the owner's attorney and has provided the attorney with a map and a survey, and he hopes the attorney will advise his client to execute the quitclaims.

Mr. Churchill reported on the Brooke Water boundary matter, stating that he met with Lemme Engineering, walked the metes and bounds and will get a legal description of the land so a demand can be made for an ingress-egress easement at the boat launch ramp area. Mr. DiNolfi suggested that the area the Association does not want be fenced off. Mr. Baker stated that when all the pieces are in place, we can fence it all off. Mr. Price mentioned the area that the State gave up, and Mr. Churchill stated that the Association would need a small area open for backwashing.

Mr. Derby made a motion to approve lawn and vegetation services to be performed by Dearcos Landscaping on a bi-weekly basis at $60 each. The motion was seconded and carried.

Mr. DiNolfi reported that the street striping is to be done next Wednesday, and does the Association want the width set at the former 18', or does it want the fire hazard width of 20'. Mr. Baker stated it should be the way it was, as that solved some of the Association's parking problems. Mr. Stroud suggested that it be re-striped the same as it was. Mr. Derby stated that the mud on the streets should be swept prior to re-striping. Mr. Baker concurred. Mr. Price stated that the drain near his house is still covered, and Mr. DiNolfi stated he went down all the streets with the seal coating company, and they might have missed one or two drains, and he will take care of this.

Mr. Derby stated that unknown person(s) cut the lock on the chain on Jim Smith's lot (56) on Apache Loop. Mr. Smith paid for the lock and chain. Mr. Baker suggested that the Association re-install its standard cable and lock on the lot.

Mr. Derby made a motion for the Association to approve the installation a cable and lock across lot 56. The motion was seconded and carried.

Mr. Baker reported that he is unable to obtain from Becky Braska the minutes for the 2003 annual meeting. Ms. Braska told him that she would be unable to provide them, after having promised them earlier, as she was going in for some surgery. Mr. Baker stated that he would provide Ms. Thomson with his personal notes from that meeting, and that Ms. Thomson will prepare unofficial minutes from those notes. Ms. Thomson stated that the trash assessment letters went out under Mr. Churchill's letterhead on March 26, and that she has received two payments thus far.

The list of old late fees was discussed. Mr. Baker stated that those on the list each have a story.

Mr. Derby made a motion to write off the late fees as presented in Ms. Thomson's Late Fee History Report on lots 041, 042, 095, 097, 130, 183, 189 and 198, totaling $280. Mr. Sweeney seconded the motion. Mr. Price stated that when he had a discussion with Sandy Brown some time ago about when late charges incur, Sandy told him they would not incur before the end of the quarter; that it was always a different story as to when late charges were incurred. There being no further discussion, a vote was taken, with Mr. Derby and Mr. Sweeney voting to approve the motion; Mr. Svider and Mr. Risen voting against approval of the motion; with Mr. Stroud, Ms. Wikoff and Mr. Price abstaining. Mr. Baker was called on to vote, and with Mr. Baker voting to approve the motion, the motion carried.

Mr. Risen brought up the problem of using RV's as sleeping quarters, and that this matter needs to be dealt with so that people aren't sleeping in their RV's off the streets down by the river when their home air conditioning goes out. Mr. Baker reported that Mr. Woodside (lot 048) is trying to get together a contingency to fight the storage vs. parking issue with respect to RV's. Mr. Churchill stated that the Association should be prepared to deal with this topic at the annual meeting, with Mr. Churchill confirming that each lot is designated for use as a single-family residence; that homeowners using an RV as a second residence should be fined. Mr. Stroud suggested that homeowner lots be liened for such fines. Mr. Churchill suggested a $100-per-day fine. Mr. Sweeney stated that it is a pain in the ass to get around these vehicles. Ms. Wikoff stated that this RV rule has always been a part of the CC&R's. Mr. Baker recommended taking photographs before any fines are assessed.

Mr. Derby inquired as to how long the portable radar will remain on site, as some kids were recently observed speeding past the radar detector in golf carts in order to see whose golf cart went the fastest. Mr. Baker stated that perhaps we should put in a speed bump.

Mr. Baker presented to the Board members correspondence, feedback and e-mails from homeowners Christie May (lot 227), Ernie Ogland, (lot 022), Wanda Dalcin (lot 155), and Dave Johnson (074). The issues brought up by Christie May were taken under submission.

Mr. Baker discussed the proposed 2004 Budget and Estimated 2004 Capital Expenditures Report prepared by Ms. Thomson, copies having been previously distributed to the Board members. Mr. Stroud asked if the approximate $20,000 earmarked for final sewer issues is in the proposed 2004 Budget and/or Estimated 2004 Capital Expenditures Report, or is it earmarked somewhere else. Mr. Baker explained that those funds are not in a separate account, but are on deposit in the general operating account; and that sewer-related fixes are not in the proposed budget or in the proposed capital expenditures report. Mr. Churchill stated that he has not heard from Kenko regarding the punch list they were sent in March 2003.

Mr. Price made a motion to approve the proposed 2004 Budget and proposed 2004 Capital Expenditures as presented. The motion was seconded and carried.

Mr. Baker discussed plans for the annual meeting to be held this Saturday, stating that it was to be on the common lot, but because of limited space in the lot due to the holiday, the meeting needed to be moved. The grassy area was considered as a substitute site, but was decided against because it is too small an area. Mr. Baker volunteered the use of his vacant lot located by the guardhouse. Mr. DiNolfi was instructed to put up directional signs on Thursday, directing homeowners to Mr. Baker's lot. Final organizational plans for the barbeque were reviewed and discussed. Ms. Thomson was instructed to invite Cliff Edey and Hal Collett to the annual meeting as guest speakers. Mr. Baker reviewed the agenda, and Mr. Price questioned whether or not the Balance Sheet should be part of the homeowner handouts. Mr. Baker stated that it has always been part of the financial handouts.

Mr. Baker opened discussion on the proposed Summary of Rules and Penalties submitted by Mr. Svider. The proposed rules are categorized into three areas: (1) property management/rental guidelines and regulations; (2) individual homeowner regulations; and (3) general regulations. Mr. Baker asked the Board members to review the proposal so that it can be discussed at next month's Board meeting. Mr. DiNolfi presented Mr. Baker with his one-page proposal of rules and fines, which was drafted several months ago and in conjunction with the preparation of Mr. Svider's proposal.

Mr. Baker opened discussion on the tape recording of Board meetings, stating that in the past when Ms. Braska took minutes, there was not a lot of detail in the minutes, which is not the case now. Mr. Baker agreed that the meetings should be tape-recorded but felt the minutes would be too lengthy if they were transcribed verbatim. He stated that the minutes Ms. Thomson has been preparing are sufficiently detailed. Mr. Baker asked Mr. Churchill what the Association's fiduciary responsibility is in this regard, and Mr. Churchill responded that the minutes should be taped.

Mr. Stroud made a motion that minutes of all Board meetings be prepared as they have been, but that they be tape recorded for back up purposes. The motion was seconded and carried.

Mr. Churchill stated in his March 2003 letter to Kenko that they were to call if they had any questions regarding the punch list that was enclosed. There has been no response, and Mr. Baker requested Mr. Churchill to send a final letter to Kenko giving them 14 days to respond or the Association will use those funds to take care of the final sewer-related issues. Mr. Derby reminded the Board that Miraleste had to file suit against the sewer district over similar issues.

Mr. Stroud expressed his displeasure that no one followed up with him after last month's executive session where his request for financial assistance from the Association in the amount of $800 (with an agreed-upon contribution by Buckskin Sanitary of an equal amount) was voted down. Mr. Stroud stated that he phoned Mr. Baker the day after the meeting to get the voting result. Mr. Sweeney explained to Mr. Stroud why he voted against his request. It was because when Mr. Stroud was asked last month by the Board whether or not he concurred with Mr. DiNolfi's observation that during the recent rain the water was running over the lot, but it didn't "lake" as before, Mr. Stroud stated that he didn't know. Mr. Stroud then stated that he already said he would install the drain, but that he wasn't going to do so until the street was fixed. He also stated that when his next-door neighbor washes his boat, his (Stroud's) property gets flooded and that a survey shows the street is wrong. Ms. Wikoff stated that a homeowner on Papago has the same problem, but that he is putting in drains to see what happens to the water, before taking any action.

Mr. Baker concluded by saying that until the Kenko money is secured, he does not want to set a precedent by agreeing to fix Mr. Stroud's problem prior to reviewing all sewer-installation related problems. Mr. Stroud stated that his problem was included as an item to be addressed in the Kenko letter. Mr. Price stated that there are other lots that also collect rainwater. Mr. Stroud stated that the whole thing changed after the sewer installation. Mr. Price stated that he disagrees. Mr. Baker stated that as soon as the Association secures the Kenko money, then the Association will address what to do with it; that all complaints will be reviewed at one time. Mr. Stroud concluded by stating that he is not pleased with the lack of communication, and indecision.

The meeting adjourned at 7:40 p.m.

Submitted by Recording Secretary, Sue Thomson