Board of Directors
Annual Meeting
APRIL 10, 2004

President Chuck Baker called the annual meeting of the Lake Moovalya Keys Board of Directors to order at 9:45 a.m.

President: Chuck Baker
Vice President: Chris Chambers
Board Members: Russ Derby, Tonya McPherson, Joe Price, Gary Svider, Bob Stroud, Joe Maxwell, Bill Risen, Trish Wikoff, Jack Sweeney


General Manager: Richard DiNolfi
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John Churchill
District 2 Supervisor: Cliff Edey
La Paz County Sheriff: Hal Collett

The sign-in sheet of those present at the Annual Meeting is on file with the Association. The number of homeowners represented at the meeting was 63.

Mr. Baker introduced guests Cliff Edey and Hal Collett. Mr. Collett made a presentation regarding law enforcement of river activities, including the canals at the Keys. He stated the Sheriff's Office is commencing a program of monitoring boat noise levels with decibel meters. The Sheriff's Office is responding to complaints about excessive noise, as the trend is for an older generation becoming permanent residents of the area.

A Deputy Sheriff spoke about the specifics of the decibel metering, stating that anything over 86 decibels is considered high volume, with a reading of 95-96 being considered excessive, and anything in the 102-110 range will result in a pursuit via sirens. Although the Sheriff's Office wants residents and visitors to abide by the law, their philosophy is to uphold the law while maintaining the spirit of what the community wants. After midnight on a weekend, the law will be upheld. It may be in our future to see muffling devices being required on excessively noisy boats. Concerning the speed limit on the water, it is whatever is reasonable and prudent for the conditions at the time. The Sheriff's Office is doing its best to educate the boating public. There was a question regarding the distance from which decibels are checked, and the Deputy stated that when a boat is idling, it would be checked at about 50'. A question regarding alcohol consumption on the river was answered by the Deputy stating that alcohol on the river is not illegal. However, if an officer sees a driver drinking while operating a watercraft, he or she will be stopped and tested. The Sheriff's Office will also check boats to see if safety regulations are being met. Safety citations are now considered a petty offense, instead of a misdemeanor. Another question raised was enforcement in the canals. The Deputy stated that they normally patrol the canals twice a day.

Mr. Collett spoke about enforcement in the canals, reporting that he would like to patrol more, but they must cruise at no-wake speed, and it therefore takes approximately 20-30 minutes to cruise all the canals, which means that patrol boat is not available to patrol the river while it is occupied in the canals. They do patrol at random, and on holidays the Sheriff's Office works in conjunction with the San Bernardino County authorities as well as Game & Fish to patrol the waterways. Mr. Collett stated that patrol boats will be visible in the middle of the night in the future. A question regarding reckless boat drivers was answered by Mr. Collett stating that a civil complaint can be filed against such persons, if the complainant makes a note of the hull number and reports it to the Sheriff's Office. A civil complaint can be filed on any violations of a total-disregard nature. Mr. Collett stated that he is looking for public input in order to balance community needs. Tourism and quality of life are all we have here. The Sheriff's Office wants to promote safety and protect lives. There was a question regarding Sheriff's Office reserves, and Mr. Collett stated that they have volunteers. There was a question regarding the validity of Coast Guard watercraft registration, and Mr. Collett stated that Coast Guard registration is valid. There was a question regarding discrepancies in the law between Arizona and California, and Mr. Collett stated that Arizona laws are generally more liberal; that we don't enforce California laws for California vessels. California vessels must comply with Arizona law. Mr. Collett stated that he doesn't know if California recognizes Arizona laws, such as 12 year olds being of legal age to operate a vessel under Arizona law. Mr. Collett stated that the Sheriff's Office can be reached by calling 911 to report an emergency, or by calling 311 for a non-emergency matter. The Sheriff's Office is available to assist the public in accident reporting for insurance purposes, so he urged those in need to call.

Mr. Edey spoke about current projects in our area, including parks, the golf course, and of the renovated launch ramp at Take-Off Point, which just reopened on April 1. It now has two boat lanes and launching is much improved.

Regarding road improvement, Mr. Edey reported that there is money in the bank to rebuild Riverside Drive, however, it won't be done until the sewer pipes are installed. The two projects will be piggybacked, so that the road is torn up only once. There will be more visibility at the curves, with the speed limit hopefully going up in some places to 30-35 MPH. The Golf Course Drive improvements are complete. Regarding property taxes, properties in the Keys pay the lion's share of property taxes. Because the state has lowered the tax rate, there have been no gains in revenue over the past six to seven years. There was a homeowner question regarding the WAPA power lines. Mr. Collett stated that there was an attempt in 1999 to get them moved, but after 9/11, funds were diverted to create Homeland Security, and there are no longer any federal funds available for this purpose. There was a question regarding the possibility of a traffic signal at 95 and Casino Drive. Mr. Collett stated that the plan is to improve the highway from Safeway northward, where there will be five traffic lanes, with signals at Casino Drive and at Airport Drive. ADOT has approved the funding for this project.

The Board of Directors and service providers introduced themselves, stating their positions and how long they have been affiliated with the Association. Mr. Baker asked for a show of homeowner hands as to how many years they have owned property in the Keys. A majority of the homeowners present have been homeowners between one and five years.

Mr. Baker reported that the minutes for the 2003 Annual Meeting are not available due to circumstances of the Association's former recording secretary. However, minutes have been constructed in as detailed a fashion as possible from Mr. Baker's notes of the meeting last year. However, they are not to be construed as official minutes, merely an outline of what transpired. Mr. Baker made a correction to the minutes of the 2003 Annual Meeting, stating that 69 homeowners were represented at the meeting.

Mr. Baker reviewed the vote taken at the 2003 Annual Meeting on the common lot parking rules' issue. The results were 53 voting for a seven-day parking limit for cars and trailers; 9 voting for cars only; and 7 voting for trailers only.

Mr. Baker discussed the 2003 year-end Balance Sheet, specifically the bank balances and the approximate $20,000 we have on deposit earmarked for final sewer-related matters. He stated that Mr. Churchill is sending a final letter to Kenko requesting them to respond to our letter of March 2003 within thirty days, or the Association would keep the $20,000.

Mr. Derby made a motion to approve the 2003 Financial Statements. Mr. Price seconded the motion. There being no discussion, the motion carried.

Mr. Baker explained that the Association operates under the CC&R's, which originated in 1966, and were revised in 1995. The Association's Bylaws operate under the CC&R's and call for a maximum 11 members to serve on the Board. Regular Board meetings are held on the first Monday of each month at Buckskin Fire Department. All homeowners are welcome to attend Board meetings.

Richard DiNolfi is the Association's General Manager, serving as policeman to enforce the CC&R's and to maintain the common area. Homeowners will meet up with Mr. DiNolfi if they do anything wrong. Mr. Baker encouraged homeowners to call the General Manager for any complaints, and Mr. DiNolfi's telephone number can be found in the phone book (Moovalya Keys, Inc.) or on the Association's website ( Mr. Baker explained that on November 1, 2003, Complete Tax Service was no longer performing the Association's accounting services. They are now being done in house by Sue Thomson, who handles the bookkeeping, billing, minutes, website maintenance and correspondence. The Association has a new gardener, Guy Dearcos, who takes care of the lawns every other week. Mr. Dearcos was hired to replace Don Braun, who retired on February 19, 2004.

Mr. Baker explained that because Association streets are private, there are no Sheriff's deputies patrolling our streets, which also means that the Association is in charge of street maintenance. The streets were just seal coated, and they will be re-striped. The roads will need no further maintenance for another three to four years, at which time they will receive another seal coat. Our streets should be in good condition for at least ten years. Mr. Baker reported that the only major expense item left at this time is the repair of the wood framing on the bridges, which repairs will be done when the water level is down.

Mr. Baker gave a history of the Association, stating that it was incorporated in 1966, and there is historical information at Robert Gory Realty for history buffs interested in seeing photos of what the Keys used to look like. There were three founding partners of the Keys: Bud Graham, who owned the land; Max Dunlap, who had the equipment; and the third partner was the moneyman. Mr. Baker stated our development is unique in this area because the canals were "bootlegged", as they were not known to exist, and at that time we were part of Yuma County, with plan checks being done out of Yuma. They didn't pay much attention to this part of the county, so the canals became part of the development, something that will never happen again anywhere else. Mr. Baker stated that lots originally went for about $12,500, with water lots going for about $17,500. However, some sold at $6,500. Plan checks were easy because they were coming out of Yuma at the time.

Mr. Baker explained how the Association handled the manmade flood of 1983, stating that water rose three feet in the canals. The Army Corp. of Engineers didn't know what to do, and Mr. Baker and Robert Gory suggested blocking off the two ends of the development to stop further flooding, then installing irrigation pumps to pump out the water. This procedure was implemented, and within 1 to 1-1/2 days, the water level was down close to normal, which saved many houses and septic tanks. Mr. Baker talked about when the main bridge started to fall apart in the late 1980's. It was engineered and rebuilt at a cost of $80,000. In the 1990's there was a similar problem with other bridges, and those were engineered and rebuilt at a cost of $125,000. Mr. Baker stated that our roads are new after the sewer installation, and they will last indefinitely. The Association spent ten years dealing with the sewer project in a hands-on fashion by the Board of Directors and the sewer board.

Mr. Baker gave a valuation history of houses and lots sold in the Keys:
In 1975 the average house sold for $50-60,000; lots for $14,000;
1980 was $90-125,000; lots $35,000;
1990 was $130-150,000; lots $55,000;
2000 was $275-280,000; lots $100,000;
and in 2004 the average house is going for $500-550,000; lots, if any are available, average $250,000.

Mr. Baker opened nominations for the Board of Directors, noting that the Association currently has the maximum number of 11 Board members.

Neil Kleine made a motion to retain the current board of directors. The motion was seconded and carried. There was a homeowner inquiry about whether or not there was a quorum, and Mr. Baker stated that a majority vote is required only of those attending the meeting or by proxy vote, and that there is a quorum present. Mr. Churchill confirmed this.

The following were elected as Board members for the coming year:
Russ Derby
Chuck Baker
Chris Chambers
Joe Price
Bob Stroud
Tonya McPherson
Joe Maxwell
Bill Risen
Gary Svider
Trish Wikoff
Jack Sweeney

Mr. Baker reported on delinquent accounts, stating that at this time, there is only one delinquent account over $300. Mr. Baker explained the series of three collection letters that go out to those homeowners who are $300 past due. If the past-due amount remains unpaid after the due date set by the third notice, then a lien is filed on the homeowner's property.

Kenko - Mr. Baker again mentioned the Kenko funds the Association has on deposit in the approximate amount of $20,000, which is to be used for the punch list items, and that if Kenko does not respond to Mr. Churchill's final demand within 30 days, then the Association will claim the monies. There was a homeowner question regarding flooding, and an insurance claim made, resulting from Kenko's work. Mr. Baker explained that the sewer project was not an Association project. Buckskin Sanitary District hired Kenko to install the sewer system. Claims for damage should be submitted to Buckskin Sanitary District, while our Association will look at drainage problems as they relate to the rise in the street levels.

Gate - Mr. Baker discussed the gate and telephone entry system, and that if anyone has any problems with the gate, they should call Mr. DiNolfi.

Front area improvement - Mr. Baker reported that the Association is in the process of obtaining rights to the property by the mailboxes and dumpsters, including the grassy area, by quiet title actions, so that it can be fixed up for more visual appeal. One of three property owners has responded to Mr. Churchill's demands by quitclaiming his interest in one of the strips of land, and as soon as Mr. Churchill has successfully obtained the other two quitclaims, the Association will commence improvements to the area. We have installed a new trash gate, and the guardhouse has new stucco. The Association has installed new metal lettering on the front wall to identify "Lake Moovalya Keys" to visitors.

Street striping - The streets will be re-striped at the former 18' apart.

Signs & Buoys - We have purchased two new reflective "no-wake" signs, and new buoys are in place.

Surveillance Cameras - An unknown vehicle recently caused damage to the wall at the entrance to the Keys. We have located the incident on camera and are attempting to identify the vehicle causing the damage. The Association has already caught on camera an S-10 on the lawn about a week ago. The cameras also allow us to catch trash violators on tape.

Chained lots - The Association obtained permission to chain off with lock and cable five vacant homeowner lots.

Debt - Last year the Association paid off the $125,000 loan for the bridge repair, and the Association currently has no debt.

Speeding - Speeding off-road vehicles continue to be a problem, and the Association is hopeful that speed bumps will not become necessary. Perhaps a posted sign that says "Only You Can Prevent Speed Bumps" would be effective in curbing this problem. The Sheriff's Office has let us use its portable radar speed display unit to assist in public awareness of this problem.

Renters - Renters are one of our biggest problems, as they mean more vehicles and boats on the premises, and because renters are not familiar with Association rules. Something needs to be done about this problem, and we need everyone's cooperation. Mr. Baker explained, however, that the Association does not wish to be the Gestapo. He did state that homeowners are responsible for their tenants, and that rules and fines are in the works. Homeowners are responsible for their tenants' actions, and the Association has the right to lien the property owner for such fines. Mr. Baker stated that any person violating the rules should be reported to Mr. DiNolfi.

Ongoing concerns - Mr. Baker stated that current concerns include dog problems, parking issues, and renter problems. He expressed his desire for compromise between the permanent residents and the weekenders. He acknowledged that many permanent residents used to be weekenders---so invite them to the party!!

There was a homeowner question regarding address lettering on the canal side of houses, and where should the numbers be specifically placed. Mr. Chambers stated that anywhere on the back wall, or the house, that is visible to the fireboats would be most helpful. The fire department does not reference locations by lot number, so lot maps are of no use to the fire department. They must have an address. Mr. Chambers stated that fire department personnel know the canals by street name, but they cannot identify specific houses from the water unless street numbers are posted. He stated that when a fire was reported last week by a neighbor across the canal from the fire, the caller had to drive around the block to the burning house to get the address to report where the fire was. House numbers on that house would have saved fire department response time. Mr. Chambers did state that the fire department has caller id, and telephone numbers are linked to the caller's address.

Next was a homeowner question regarding rules and fines, and will the homeowners get to vote. Mr. Baker explained that the Board members address the problems, but it seeks homeowner input. Homeowners should give their input to a Board member.

Question was raised regarding clarification of the recent Parking Notice sent to homeowners. Mr. Churchill stated that no one can park between the white lines; that part of the area just outside the white line is not homeowner property, and that one can "park" an operable vehicle temporarily in this area, but one cannot "store" an operable vehicle in this area. Mr. Churchill went on to explain that the area between the white lines is a no-parking, tow away zone and is for emergency vehicle access. The white line is not the homeowner's property line. An operable vehicle that is parked beyond the lot boundary for more than 72 hours is defined as "storage". A boat may not be parked outside the property boundary at any time, as boats are not operable vehicles. Boats can be parked on your own property, improved property only. Boats cannot be parked on vacant lots.

A query was made as to where the property boundaries can be found. Mr. Baker stated that most property boundaries are where their water meters are located, about two feet from the white line. Mr. Churchill stated that some houses are closer to the property lines than others because of variances.

A homeowner stated that he got a parking violation notice during the winter season after about two hours of parking because his tires were slightly over the white line. The homeowner stated that he was told that the white stripes are just a "guideline". Mr. Churchill stated that the stripes are 18' apart, which is the minimum amount needed for two vehicles to pass together on the streets.

Question was raised about replacing the buoy at the main canal. Mr. Chambers stated that the buoys were going back up on Monday. Another homeowner requested that an additional no-wake sign be installed in the canal by their property (lot 020). The Board will get together with Mr. DiNolfi regarding this request.

There was a question as to why family guests cannot sleep in an RV that is parked on a homeowner's property. Mr. Churchill explained that sleeping in an RV on a developed lot is a violation, and is restricted by the CC&R's because of the single-family-residence rule. Mr. Baker stated that if people want to change the CC&R's, it requires a 2/3 vote of all homeowners. He further stated that if the Association let's one or two people sleep in RV's, then the area could turn into a campground. The homeowner stated that these RV's are million dollar RV's. Another homeowner inquired of the Board about the possibility of issuing visitor passes for RV's. Mr. Baker again stated that in order to deviate from this rule, a 2/3 vote is required.

Kenneth Beard (lot 108) stated that there has been poor communication between him and the Board in the past, as he has attempted to get a list of homeowners but has not been successful. Mr. Baker stated that Ms. Thomson would send him a list.

Another homeowner inquired as to why rules never get changed at annual meetings. Mr. Churchill stated that the required 2/3 vote to amend CC&R's is a 2/3 vote of all homeowners, in writing, not just those in attendance at an annual meeting. Mr. Baker stated that the Board could put together a ballot if a homeowner can get a list of at least 25 homeowners who wish to see a particular rule changed. At that point, the Board would distribute a ballot to all homeowners for a vote.

There was a homeowner inquiry about renter problems, specifically loud stereos. Mr. Baker stated that rules of this nature are not specific by design; that approximately 10 p.m. on weeknights and midnight to 1 a.m. on weekend nights is the appropriate time to turn down the music.

Question was raised if the Board has the authority to authorize the General Manager to give a variance. Mr. Baker and Mr. Churchill both responded no.

Another homeowner expressed his displeasure, and embarrassment, at the number of signs one sees when coming through the gate.

Question was raised about why the Vista del Monumento Acres' homeowners are not part of the subdivision. Mr. Baker explained that Moovalya Keys uses their road for access. This road was owned by Bud Graham and extends from the second story house past the vacant lot, and we have an agreement with them that we will maintain their road and provide them access.

There was a question about the dilapidated roof on the structure on lot 010; is that lot part of the Association, and what is being done about it. Mr. Baker stated that it is part of the Association, and that the Board members, at the April 5 meeting, authorized Mr. Churchill to send letters to the owners of lot 009 and 010 regarding removal of overgrown vegetation and structural improvements to be made.

There was a question regarding the status of the Kenko money, and what will happen with it. Mr. Baker explained that the Board would look at all the problems as a whole, and not on an individual basis.

A question was raised regarding the accumulation of silt in the canals, the pumping of silt, and the shallowness of the water where silt accumulates. Mr. Baker suggested the matter be brought up at a regular Board meeting.

The meeting adjourned at 11:17 a.m. to a barbeque lunch.

Submitted by Sue Thomson, Recording Secretary