LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
DECEMBER 6, 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
Board Members: Bill Risen, Bob Stroud, Jack Sweeney, Joe Maxwell, Squeak, Gary Svider, Joe Price, Trish Wikoff

ABSENT
Vice President: Chris Chambers
Board Members: Tonya McPherson

OTHERS PRESENT
Guests: Ken Ferguson (lot 172); Jennifer Baerg (lot 62); Barbara Risen (lot 184)
Legal Counsel: John C. Churchill
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: Joanne Hugaert

MINUTES
The Minutes from the November meeting having been previously reviewed, Mr. Price made a motion to approve the November Minutes as presented. The motion was seconded, and the motion carried.

REPORTS
November Financials. November income was $4,900.00 with operational expenses of $9,845.46. Accounts receivable at month end were $<1,395.00>. Mr. Baker asked Ms. Thomson to bring to the next meeting the capital improvements spreadsheet, which shows the projections for long-term capital expenses.

Mr. Price made a motion to approve the November financial reports. The motion was seconded, and the motion carried.

The November Bookkeeper’s report was reviewed. Ms. Thomson was authorized to return to Kyle Vestermark his construction deposit. Two property owners are delinquent over $300, and unpaid fines total $250, including $75 for those pending further investigation. Ms. Thomson was authorized to write off the annual trash assessment to those Vista del Monumento Acres’ property owners who have not paid because they do not use the Association’s dumpsters. She was also instructed to send those owners a letter confirming their non-use and that if any of those owners are seen using the dumpsters, such an act would be viewed as a trespass.

Mr. Price made a motion to approve the November prepaid bills. The motion was seconded, and the motion carried.

Mr. Sweeney made a motion to approve John C. Churchill’s October and November bills. The motion was seconded, and the motion carried.

CALL TO PUBLIC
Guests present did not have any issues to be discussed.

GENERAL MANAGER’S REPORT
The November General Manager’s report was reviewed. Ms. Hugaert stated she received complaints about RV parking on homeowner lots and asked for confirmation on the legality of parking them within homeowner property boundaries. She reported that the subject RV was not plugged in to electricity and the pop outs were not extended, and no one appeared to be living in or sleeping in the RV. Mr. Churchill stated that an owner can park an RV on their property if it’s not being used. Squeak reported that the RV that was on lot 46 has been moved off the property.

OLD BUSINESS
Ms. Hugaert reported that she spoke with David Plunkett several weeks ago regarding the junk on lot 226 and that it was supposed to have been removed by now. Mr. Ferguson reported that the junk appears to have further accumulated since last month. Mr. Baker requested Ms. Thomson to provide Mr. Churchill with the owner’s name and address so that he can send the owner a letter, with photos, requesting him to remove the unsightliness.

Ms. Thomson was asked to send another request to those property owners on Yaqui Loop who need to move their poles and/or chains back to their property lines. A request will also go to lot 35 requesting the owner to move the poles and chains back.

Mr. Baker asked Mr. Churchill for a status report on lot conditions at lots 9 and 10. Mr. Churchill stated that he has not received any response, and the properties are ugly and unsafe. There was discussion about whether or not the Association can force the owner of lot 10 to put on a new roof, with Mr. Baker stating that he didn’t think the County would force him to fix it. Mr. Churchill stated that a suit could be commenced to seek a court order forcing the owner to fix the roof. No action was taken.

Mr. Baker asked Squeak about the status of the block wall plan. Squeak stated he has been tied up the past month, but he will work on it this month.

Mr. Baker asked Mr. Sweeney about his ongoing investigation into a new gate card reader. Mr. Sweeney stated he has ordered a proximity reader, and it should be in this week. The reader will accept a key chain-size card or regular-size card, and the cards are programmable. Mr. Baker asked about the proposed camera by the dumpsters, and whether or not we can run electrical from the dumpsters to the guardhouse. Mr. Sweeney stated the distance is too far for 12-volt power, which is needed for the camera, and we would need a closer power supply. Al McPherson was looking into a wireless camera, but Mr. Risen reminded the Board that the 2.4-gigahertz is a problem; that a higher frequency would be needed to get out of that range. Mr. Sweeney stated that a wireless system wouldn’t be as effective. Squeak stated that pipe could be laid in the footing of the block wall to run electricity closer to the dumpsters. Mr. Sweeney stated that regular lighting would be detrimental to the system; that infrared lighting would be better.

Mr. Baker asked Mr. Churchill about the status of the Jeff Sapp (lot 75) construction plan. Mr. Churchill stated that Mr. Sapp’s engineer is to get back to Mr. Churchill in response to his recent letter. However, Mr. Churchill stated he spoke with the engineer by telephone to let him know he needs to meet setback requirements. Squeak reported that the Rohans’ view would be blocked if Mr. Sapp built to the sea wall. He stated that the Rohans plan to speak with Mr. Sapp about this.

Mr. Baker asked Ms. Hugaert if any new citations have been issued. Ms. Hugaert reported that she did not issue the previous month, but that she issued some red-tag warnings to visitors with no vehicle ID over the Thanksgiving holiday.

Mr. Baker asked Mr. Sweeney for an update on Mr. Stroud’s (lot 202) flooding problem. Mr. Sweeney reported that the street on Hopi Dr. from the corner to the 4th house is low. He recommends a catch basin and a drain in the street. Mr. Price stated that the streets used to drain through houses to the canals. He further stated that the law says that the property owner has to take the natural flow of water, unless the Association changes something. Mr. Baker stated that someone could say that has happened because of the sewer project.

Mr. Baker reported on the status of the Steve Green (lot 112) flooding problem, and that he met with Mr. Green yesterday. Mr. Baker stated that when ponding occurs on Papago Loop, water drains away from Mr. Green’s drains. Mr. Baker also reported the seam is showing on Papago, and he instructed Ms. Hugaert to contact a street paver to repair the crack.

Mr. Baker suggested that the Association put a drain in the street near Mr. Green’s lot, and that Mr. Green be responsible for the drainage of water from his property to the canal, but that the Association would pay for the pipe materials to be used on Mr. Green’s property. Mr. Green would also be responsible for getting bids for the entire project. This remedy would service several properties, as well as save the road. Ms. Wikoff stated that the Papago crack is getting bigger.

Mr. Baker instructed Ms. Thomson to call Ace Concept to have them return to finish the utility company patch job on Papago.

Mr. Sweeney asked what the Association plans on doing about Mr. Stroud’s problem. Mr. Baker stated we can prove that Mr. Green’s situation was the result of a change in the street, but that we can’t prove Mr. Stroud’s problem wasn’t there before the sewer project. Ms. Wikoff stated that Mr. Green installed drains at his property, and they didn’t work to resolve the flooding. Mr. Risen suggested that two Board members with construction experience propose a resolution to Mr. Stroud’s problem, and get an agreement with Mr. Stroud’s neighbor on the easement issue. The Association would be responsible for going only to Mr. Stroud’s property line, and Mr. Stroud would be responsible for his own property. Mr. Churchill stated that there is an easement problem, and we need an easement agreement in order to drain water through the property. The Association can maintain the drain and get the easement.

Mr. Churchill also mentioned the “lake” on Yaqui Loop. Squeak stated that there was a plugged drain, but it has since been cleaned out. Mr. Baker stated that Mr. Chambers would bid the Green project, and he should bid the Stroud project. Squeak stated that some property owners were not aware of who is responsible for maintaining drains. He stated that he has informed those owners of who is responsible, and now they know and have agreed to maintain them in the future.

Mr. Sweeney stated that a 12” catch basin and a 4” drain would not solve Mr. Stroud’s problem, as he is catching water from several properties. Mr. Svider stated that he is uncomfortable about the Association proceeding on a resolution of Mr. Stroud’s problem, because Mr. Stroud turned down the offer from Buckskin Sanitary District to fix the problem and split the cost. Mr. Sweeney reminded Mr. Svider that it wasn’t Mr. Stroud who turned down the proposal; it was the Association, because it didn’t believe that the proposed solution of filling in the hole would work. Mr. Sweeney further stated that Mr. Stroud even stated at that previous Board meeting that he didn’t know if the proposed solution would work.

NEW BUSINESS
Security Deposits were discussed, and clarification was sought as to what the Association should consider a “rental unit”--short-term, long-term, or both. Also, can the Association mandate the $1,000 security-deposit rule. Mr. Churchill advised that the CC&R’s don’t state it, but the rule was legally adopted. Mr. Baker reported that some property owners have complained about fines being assessed after the tenant’s deposit has been returned, leaving the owner responsible for the fine. Mr. Churchill advised that the Association could make the owner pay via a lien, as it is an assessment. Mr. Svider stated that the initial concept in the collection of security deposits on rental properties was the concern over weekenders violating rules and causing property damage, which could not be paid from the tenant’s security deposit in instances where the deposit was already returned, and in the further instance when homeowner’s insurance can’t cover the damage. Mr. Svider further stated that many property owners who rent are not classified as commercial property with the County Assessor. Commercial properties are taxed at a higher rate, they do not pay sales tax, nor do they have commercial insurance. Mr. Price stated that the $1,000 security-deposit rule was passed as it was, which was non-specific. Mr. Churchill reported that “single-family” rentals are allowed, and that the Association can enforce compliance with that. As far as what the Association considers a property’s “rental status” depends on whether or not it is rented at any one time.

Mr. Churchill suggested that the Association, if it so desires, could propose to the general membership a rule change to not allow rentals for less than a 30-day period of time. Ms. Baerg inquired if the problem is that the fines aren’t getting paid, and the response was that this was not the bigger issue. Ms. Baerg stated that Mr. Svider’s (motel) property is zoned commercial, and he should not have to pay a security deposit. Mr. Churchill stated that the $1,000 should only be applicable to residential rentals.

Squeak stated that short-term renters should receive visitor passes from the rental agency, or the homeowner, in instances of a private rental. Ms. Thomson stated there are several owner-managed rentals in the Keys. Mr. Price again stated that the security deposit rule was already passed as it was. Mr. Risen proposed that anyone with a business license be exempt from the rule, and if one isn’t running a commercial business, they are not exempt. It was the general consensus of the Board to interpret the enforcement of the security-deposit rule to apply only to non-commercial properties. Mr. Baker stated that he would discuss the various rental properties with George Nault (County Assessor), as he has done previously from time to time.
Mr. Svider inquired as to who owns the pallets of roofing tile stacked near the dumpsters. Ms. Thomson is to investigate ownership of the tile and ask that it be moved off Association property.

The Board reviewed Mr. Coykendall’s (lot 198) engineered drawing for the construction of a sea wall, which drawing was received this morning. It was the general consensus of the Board that because the drawing was merely a topographical survey, it could not approve the wall without a formal plan.

Mr. Baker confirmed to Mr. Ferguson that a letter will be sent to the owner of lot 226 to clean up the mess on the lot.

Mr. Stroud arrived at 7:12 p.m., and Mr. Baker brought him up to date on earlier discussions about his flooding problem. Mr. Stroud confirmed that his neighbor to the north has the least amount of concrete and would be the best location to install the drainpipe. He also stated that he has talked to his neighbor, and he has no problem with the proposed project. Mr. Baker requested that bids be obtained for the installation of the catch basin and drain.

Squeak reported that the street light at Papago and Moovalya is out.

ADJOURNMENT
The meeting adjourned at 7:15 p.m.

Submitted by Recording Secretary, Sue Thomson

APPROVED BY BOARD OF DIRECTORS JANUARY 3, 2005