Board of Directors
Regular Meeting
OCTOBER 4, 2004

President Chuck Baker called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:00 p.m.

President: Chuck Baker
Vice President: Chris Chambers
Board Members: Bill Risen, Bob Stroud, Jack Sweeney, Joe Maxwell, Tonya McPherson, Squeak, Gary Svider

Board Member: Joe Price, Trish Wikoff

Guests: Al McPherson (lot 70); Dan Bahler (lot 188); Ray & Patti Mentch (lot 101)
Legal Counsel: John C. Churchill
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: Joanne Hugaert

The Minutes from the September meeting being previously reviewed, Ms. McPherson pointed out two typographical errors on page 5, wherein the words “to” and “up” should be deleted. Mr. Bahler wanted it known that the reason for his comment at last month’s meeting where he stated “the people across the street from their house were arrested last night”, as mentioned on page 2, paragraph 4 of the September Minutes was that the neighbors across the street had uninvited guests, and that the uninvited guests were the cause of the trouble.

A motion was made to approve the September Minutes as corrected by Ms. McPherson. The motion was seconded; there was no further discussion, and the motion carried.

Mr. Baker reviewed the financial reports for September. Mr. Stroud asked about the expense entry for gate clickers. Ms. Thomson stated it was due to inventory depletion.

Ms. McPherson made a motion to approve the September financial reports. Mr. Sweeney seconded the motion. There was no further discussion, and the motion carried. Mr. Baker noted that there were no delinquencies over $300 as of September 30.

Mr. Bahler spoke regarding his protested fine being added on his dues’ statement. The fine was itemized on the statement as “Fine (protest hearing on 10/4).” Mr. Baker asked Ms. Hugaert to review Mr. Bahler’s protest, which was recently reviewed at the Protest Committee Hearing. Mr. Baker stated that the Protest Review Committee consists of two board members and two non-board members who submit to the Board their recommendations after hearing protests. Ms. Hugaert read her report of the facts of the incident as she witnessed them, and she read Mr. Bahler’s protest. Mr. Sweeney, who is on the Committee, reported that after the Committee’s review, it was recommended that the fine be imposed. Mr. Bahler disputed the General Manager’s report of the incident and inquired about her authority to determine another person’s intoxication. Mr. Baker asked Mr. Churchill to comment, in which he stated that the Association has the power to create rules and regulations, and assess fines. These fines are civil in nature, not criminal, wherein the burden of proof is less than it is in criminal matters. He stated that if someone wants to further contest a ruling, a thorough investigation could be done for between $100 and $175 per hour for a private investigator, and that after interviewing witnesses, one might expect about six hours of investigation service, all of which comes out of Association dues. He stated that a mere preponderance of evidence is all that is needed to assess a fine; that the investigation is done at the homeowners’ expense. Mr. Bahler stated it’s the principle of the matter, not the money.

Ms. McPherson stated that she didn’t believe one could legally have alcohol while driving a golf cart. Mr. Churchill stated that golf carts are considered the same as motorized vehicles and are subject to the same open container laws. Mr. Churchill again stated that we are talking about the Bahler fine being a civil fine and that any litigation costs resulting from protested fines are passed on to the homeowners. Mr. McPherson asked Ms. Hugaert if she saw the Coronas in the golf carts with the boys, and she stated that the Coronas were in their hands while they were in the cart driving on the street, and later they were in possession of the Coronas while she was talking to them in their garage.

Mr. Churchill stated that one does not have to pass a test to possess the ability to determine intoxication. Bartenders have the ability to determine intoxication merely by one’s appearance and behavior. In this case, the citation involves juveniles in possession or juveniles consuming alcohol, and the Association has the right to uphold the CC&R’s. Ms. Hugaert stated that she has extensive bartender experience and that she has the skills necessary to determine intoxication, and when asked by Mr. Bahler if she is certified, Ms. Hugaert stated that she is certified. Mr. Chambers asked Ms. Hugaert if the fine was upheld because of reckless driving, and Ms. Hugaert stated it was for that reason.

Mr. Sweeney asked Ms. Hugaert about one of the local realtors possibly not managing Association rentals next summer, and Ms. Hugaert stated that David Plunkett’s office told her they would not be handling any Association rentals next summer.

Mr. Baker asked if APS has been called regarding the five streetlights that are out, and Ms. Hugaert stated that she has called APS on more than one occasion to fix the lights.

Mr. Svider asked if the gate repairman returned the gate clicker that he borrowed over the Labor Day holiday. Ms. Hugaert stated that he claims to have returned it in the drop box, but that it was missing from the box. Mr. Svider asked about the two clickers delivered to Gory Realty, and Ms. Hugaert stated that she has collected for one of the clickers and needs to either pick up the other one and return it to inventory, or collect payment for it. Mr. Svider asked Mr. Chambers how many gate clickers are carried in each fire truck, and Mr. Chambers stated that one clicker is kept in each truck.

Mr. Chambers discussed the oleanders and how the gardener is to trim them, stating that Angel will be here tomorrow. Angel reported to Mr. Chambers that the tree by the ramp and the tree at the front are not being watered. Mr. Baker stated that the small oleanders on the street need a minor trim to a small-hedge form. Mr. Chambers reported that Angel would install bubblers, including trenching and PVC for the shrubs, excluding electrical hook up, at a cost of $800. Mr. Sweeney stated there is a power source at the gate, and the entire row of shrubs could be put on bubblers, with one controller at each end.

Mr. Baker asked about a watering system for the palm trees, and Mr. Stroud stated they are on bubblers. Mr. Chambers added that they should be on a timer. Squeak stated that a solar-powered battery timer would work well for about one year on one set of batteries. Mr. Chambers asked about reseeding procedures, and Mr. Baker said to do whatever is necessary to make the lawn green. Mr. Chambers stated that water is not getting to the oleanders. Squeak reported that water is getting to the oleanders, but that the water is just running around the roots, and that a bubbler or soaker hose is needed. Ms. Mentch inquired why we even need grass, and she suggested a desert landscape instead. Mr. Baker stated that most people like the grass, and that this subject has come up before. He stated the Association is giving it one more shot. Mr. Stroud stated that the timers could go directly to the faucet. He recommended that the oleanders be trimmed lower at the area starting at the stop sign on Hopi, for visibility purposes, and that the height taper up from there.

Squeak reported that trash was once again piled up today behind the oleanders and the trash bins. Mr. Chambers stated that Angel needs direction on his exact trash pick-up duties. Mr. Mentch mentioned that this trash was leftover from the overfull holiday bin, which trash blew in the bushes. Mr. Risen stated that was incorrect, as he picked up the overfull trash from the holiday bin. Ms. Thomson stated this problem would not occur again, as a bigger bin would be ordered for future holidays, and she would arrange to have the bin dropped immediately before the start of the holiday and have it picked up immediately after the holiday. Ms. Hugaert reported that she has attempted to reach Angel by phone, but that he doesn’t return her calls. Mr. Baker asked Mr. Chambers to meet with Angel to go over his duties. He also stated that he wanted Angel’s bid for $800 for the bubbler system in writing.

Mr. Chambers made a motion to accept Big River Landscaping’s bid for $800 to install a bubbler system for the oleanders, excluding electrical. Mr. Baker stated he wants the bid in writing. The motion was seconded and carried. Mr. Sweeney said he would hook up the electrical.

The Bookkeeper’s Report was reviewed, and Mr. Svider questioned a General Manager’s petty cash expenditure of $10 for camera batteries purchased at Circle K, suggesting that rechargeable batteries be used instead. Ms. Hugaert responded that she has rechargeable batteries, but they ran out of juice while on patrol for seven hours one day over the Labor Day weekend.

Mr. Sweeney made a motion to approve the Bookkeeper’s Report. The motion was seconded; there was no further discussion, and the motion carried.

Mr. Baker asked if Mr. Vestermark’s building height complies with the CC&R’s. Mr. Sweeney stated that it does. Ms. Hugaert reported that Mr. Vestermark would like his construction deposit returned. Mr. McPherson and Mr. Stroud both stated that deposits are not to be returned until building projects pass final inspection, and it was reported that Mr. Vestermark has not yet received his final.

Mr. Baker asked if the buoy lights have been repaired, and Ms. Hugaert stated that the one that was out as a result of intentional damage has been replaced. The other light was repaired without having to replace parts. Mr. Baker reported that the vehicle and trailer identification stickers have been sent out to homeowners.

Mr. Churchill gave a report on the status of the quitclaims, stating that we now own the lawn, oleanders and mailbox areas. He stated there is still a delay on the boat ramp. He stated there are two parcels involved, one being the launch ramp itself and the other is the roadway by the ramp. Mr. Churchill stated he is awaiting one more legal description from Lemme Engineering before sending the documents to all of the several owners. He also stated he needs to track down the primary owner.

Mr. Baker discussed the idea of the Association purchasing a power washer, as suggested by Ms. Hugaert, in an attempt to power wash some of the slime off the south ramp. He stated that a gas washer would be needed and is considerably more expensive than an electric unit. Mr. Baker stated that the Association has not previously maintained the ramp. He also suggested that a sign be posted at the ramp that reads, “Use at your own risk,” as the concrete on the ramp has a smooth finish, making it risky to launch. He suggested that perhaps the concrete could be roughed up or scored. Mr. Chambers stated that it would still slime up. Squeak stated that Badenoch’s had to close their ramp for this reason. Mr. McPherson felt that a pressure washer was a good idea, but the slime would still return in a couple of days, the pressure washer wouldn’t go far enough under water, and the upkeep would be too much. Mr. Sweeney stated he has a 2000-psi gas power washer that Ms. Hugaert can try, but it won’t reach down deep where the moss is. It was reported that the other ramp does not have this problem. Mr. Churchill stated that a sign at each ramp should be posted that reads, “Use launch ramp at own risk.” Mr. Svider inquired of the possibility of changing the angle of the ramp when the water drops in January. Mr. Churchill stated that would be a huge undertaking to improve the angle, as the entire ramp would have to be removed and replaced.

Mr. Baker discussed the reserve account. He asked Ms. Thomson to open a separate reserve account for the Kenko-related repairs that need to be done. He also asked that a new reserve account be set up for long-term capital improvements for streets, bridges, guardhouse and gate, amortized and based on the 10-year plan that was discussed at the 2003 annual meeting. He also requested that a new bank account be opened to retain the security deposits on rental properties. Ms. McPherson asked if the motel is required to post a $1,000 security deposit for each unit as was suggested at last month’s meeting. Mr. Baker stated there was no action taken on that discussion.

There was discussion about Parker Tree Service’s bid to trim the large oleanders by the road and a question as to how high the trees should be left. Mr. Stroud stated the palms should be trimmed, as they are ready to drop dates. He reported that Parker Tree Service would trim the palms and the ironwood by the mailboxes, and the palms by the bridges, for $545. Mr. Stroud stated that he walked the area with Bob Kerbs. Mr. Baker presented a bid from Jeff Barber for trimming the oleanders.

Mr. Churchill stated the Association now owns the land where the mailboxes and the large oleanders are located. He stated he doesn’t have the survey with him, but the Association could claim that it owns them, even if they encroach onto the state road easement. He further reported that the Association now has the capability of putting up a wall on Association property, which could extend to the mailboxes. Mr. Sweeney suggested that the Association put up a block wall and replace the oleanders entirely. A show of hands was taken, and the majority indicated their desire to investigate the cost of installing a block wall. Mr. Churchill stated he would get a copy of the survey to Ms. Hugaert. Mr. Chambers stated he knew a block layer in Havasu who would work for cash on weekends. Mr. Stroud stated that cinder block would need to be used, and the block stuccoed, as well as taking out the oleanders. Mr. Risen suggested that the County might be willing to run a blade through the oleanders to get them out. Squeak suggested that if we do this project, we widen the angle of the southbound right turn at the entrance so it is not so sharp. Mr. Baker asked Squeak to provide information on these ideas at the next meeting.

Mr. Risen made a motion to accept Parker Tree Service’s bid to trim the palms and the ironwood for $545. The motion was seconded, and the motion carried.

Mr. Baker reported that he spoke with Sheriff Hal Collett regarding towing issues. He reported that Mr. Collett states Parker Towing can tow away vehicles that are blocking access to other owners’ private property. Mr. Baker asked Mr. Churchill if he called Mark at Parker Towing, and Mr. Churchill stated that he has not. Mr. Svider stated he knows of a new resident in Keys II who said he is willing to perform tow services, as long as the Association’s attorney says it is permissible to do so. Mr. Churchill replied that the tow truck company just wants to be paid.

Ms. Hugaert reported that Steve Green (lot 112) submitted photos of rainwater ponding in the street by his property, and that Mr. Green is still waiting on word about whether or not the street will be repaired by the Association. Mr. Baker stated that this is one of half a dozen problems relating to the Kenko situation that will be investigated. Mr. Baker asked Ms. Thomson to locate the file on the Kenko problems. He stated he wants to look at all the problems at one time. Mr. Baker stated that the fire department could flood the streets to determine where the problems are, which is what Kenko was going to do. It was suggested that we wait until a good rain occurs, at which time the various problems can be seen. Ms. Hugaert was instructed to inform Mr. Green that the Association will wait to assess all the problems at one time as soon as it rains. Mr. Baker stated that Papago is inverted, where the center of the street is the low spot, and he acknowledged that the middle of the street needs a drain.

Mr. Sweeney reported that a new card reader for the gate, including a programmer, would cost about $750. The card cost is $4.75 each, plus tax. Mr. Chambers suggested that those who have existing gate cards be allowed to exchange them with new programmed cards.

Mr. Risen made a motion to allocate $2,000 towards the purchase of a new gate card reader and programmable cards. The motion was seconded, and the motion carried.

It was decided that there will be a $5 charge to replace broken cards, no charge for the exchange of an old card with a new card, and a $30 charge for each card issued to new card users.

There was a question to Mr. Churchill regarding the legality of no trespassing signs. Mr. Churchill stated they are legal.

Mr. Svider inquired about whether there will be a potential citation problem if poles and chains are moved up on those lots where the poles and chains are located too far back. Squeak stated that some of the poles and chains are 2’ past the lot boundary. Mr. Sweeney stated that homeowners don’t want people to park in their yards. Mr. Churchill stated that homeowners can cable off their lots anywhere they want to, as long as it’s on their property.

The meeting recessed to Executive Session to discuss protested citations.

The regular meeting resumed with Mr. Svider reporting that the new buoy lights cost $165 each plus tax and shipping. Mr. Sweeney stated that the center channel light was the only one that was broken. Mr. Svider stated that Kathy Leek’s kids broke the light, and Mr. Baker asked Ms. Thomson to send Ms. Leek a bill for the for the replacement cost.

Mr. Stroud presented plans, which he just received prior to the meeting, from Jeff Sapp for a remodel project on lot 75. He stated the security deposit should be here tomorrow. The plans show the 5’ setbacks, but the photos are confusing. The exterior wall is shown as 20’ from the center of the canal. The plan proposes leaving only the existing garage walls. Since Mr. Stroud will be out of town for two weeks, Mr. Chambers was asked to meet with Mr. Sapp to go over the plans. Mr. Baker stated that this could be done telephonically if there are no visible problems and on further condition that Mr. Churchill review the plans.

Mr. Sweeney made a motion to approve the remodel plans of Mr. Sapp for lot 75 at the next board meeting, if at all. Mr. Risen seconded the motion. There was discussion from Mr. Stroud reminding the Board to stay on track with its plan reviews; that it has 35 days from plan submission within which to review them. It was also mentioned that plans should be submitted to the Board just a few more days prior to meetings. The motion carried with a yes vote from all except Mr. Svider who voted against the motion.

Mr. Risen stated that the Board would back Ms. Hugaert if she continues to have problems at the Bahler property that require her to contact the police. Mr. Churchill stated that we can apprise authorities of incidents of minors in possession of alcohol.

Mr. McPherson discussed a missing cap in the blacktop near the guardhouse that needs to be replaced. There is also a second cap missing by the sewer lift station. Ms. Hugaert was asked to replace the caps. Mr. McPherson inquired about the Association procuring a digital camera with date stamp capability, or that the camera we currently own be checked to determine if it can produce a date stamp on photos. Ms. Hugaert stated she would look into the camera’s programming functions. Mr. McPherson also reported wireless, solar-powered cameras are available for pole mounting that can record onto our current system, which cameras could be utilized at the dumpster area. Mr. Risen stated that we would have to upgrade to 3-4 GHz, as 2-4 interferes with cordless telephones.

Ms. Hugaert inquired about the telephone jack in the guardhouse. She stated that over the recent holiday, some homeowners complained because they couldn’t reach the security guards by phone at the gate, nor could they reach her on the business line, because she was patrolling on site. Mr. Sweeney reported that this phone jack is inactive. Ms. Thomson reported that the Association has only two lines, one for the General Manager, and one dedicated to the gate system.

The meeting adjourned at 7:45 p.m.

Submitted by Recording Secretary, Sue Thomson