Board of Directors
Regular Meeting
JULY 11, 2005

President Bill Risen called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:03 p.m.

President: Bill Risen
Board Members: Chris Chambers, Jack Sweeney, Joe Maxwell, Gary Svider, Joe Price, Bob Stroud

Vice President: Chuck Baker
Board Member: Squeak
General Manager: John Currie

Guests: Al McPherson (lot 70); Jodi Vescio, (lot 82 resident); Richard & Sheryle Jaschke (lot 171); Barbara Risen (lot 184); Blane Coon (lot 54)
Legal Counsel: John C. Churchill
Bookkeeper/Recording Secretary: Sue Thomson

Mr. Risen introduced Richard Jaschke, lot 171, who is interested in a position on the Board of Directors.

Mr. Price made a motion to approve the Minutes of the regular meeting held on June 6, 2005. The motion was seconded, and the motion carried. Mr. Price made a motion to approve the Minutes of the executive session held on June 6, 2005. The motion was seconded, and the motion carried.

Mr. Price made a motion to approve the June Profit & Loss Statement. The motion was seconded, and the motion carried.

Mr. Price made a motion to approve the June Balance Sheet. The motion was seconded, and there was discussion about how to collect unpaid security deposits on rental properties. Mr. Churchill stated that a lien could be filed, and Mr. Risen asked if attorney’s fees and interest could be included. Mr. Churchill replied yes to attorney’s fees, and he believed the statutory interest rate of 10% could also be included on a judgment. Mr. Svider inquired about the status of Kathy Leek’s partial security deposit payment on her two rental properties, and Ms. Thomson reported that she has been billed again for the balance. Ms. Thomson was instructed to supply Mr. Churchill with a list of the names and addresses of those who have yet to remit their security deposits. Mr. McPherson suggested that language be checked when there is one owner who has remitted only one security deposit for two rental properties. Mr. Price had a question about fines for citations being deducted from security deposits. Ms. Thomson reported that the need for that has not happened yet. Mr. Svider quoted section 4.8 of the CC&R’s relating to rules, and Mr. Churchill confirmed that rules and fines are considered a special assessment, thus they are lienable. There being no further discussion, the motion carried.

The Bookkeeper’s Report and accounts payable having been previously reviewed by the Board were approved.

No comments from public.

Mr. Risen called for an election to fill the two vacancies on the board (one vacancy due to Ms. Wikoff’s absence, and the other vacancy created by Mr. Johnson’s decision to bow out due to qualification issues). The five interested parties to fill the vacancies were named: Trish Wikoff, Al McPherson, Jodi Vescio, Larry St. George and Richard Jaschke.

Mr. Jaschke, who was unable to attend last month’s meeting to announce his candidacy, gave a brief statement about himself by saying that he has owned his property for three years, and he has been a permanent resident for the last two years; he likes it here, and he can be of some help as a volunteer to the Association. He concluded by saying that he is a fair person.

Mr. Risen called for a secret ballot in which board members present voted for two persons to fill the two vacant positions. Results were presented by Mr. Chambers, and verified by Ms. Thomson: Richard Jaschke obtained the most votes to fill one vacant position, and Mr. St. George prevailed in a runoff with Mr. McPherson to secure the second vacant position.

Mr. Risen asked Mr. Chambers (since Mr. Chambers missed last month’s meeting) of his recollection of his original discussion with Angel of Big River Landscaping regarding the irrigation system that was approved to be installed for the oleanders by the gate. Mr. Chambers stated his recollection was that it was to consist of bubblers at the plants, with no timer. Mr. Sweeney reported that what we got was no pipe work, only a valve connected to a hose bib, on a battery operated timer, resulting in water running down the street. Mr. Chambers stated that he would talk to Angel about the situation. Mr. Risen requested that payment not be made to Big River Landscaping for the irrigation system, because we want bubblers, not flooding streets.

Mr. Risen reported that the lower profile dumpster, with its doors tied open, and courtesy signs posted on it worked well over the July 4th holiday, even though some mattresses and construction debris ended up in the dumpster. Having the doors opened seemed to reduce the amount of garbage that was pitched over the top, and its closer proximity to the regular dumpsters worked well to improve matters. There was a suggestion about the possibility of hiring youths to pick up trash on a regular basis, since we still have an ongoing problem with trash on the grounds. Ms. Thomson reported that River Cities Waste billed the Association an extra $200 for their having to spend extra time on Memorial Day picking up trash that spilled over the sides of the dumpsters.

Mr. Sweeney reported that he has a bid from Stan Vescio on the trenching for the line to house electrical line to the proposed new camera at the dumpster area. The work would include backhoe, compaction and concrete repair at a price of $4,125. Mr. Sweeney stated that a wireless camera would not work because of the extended distance from the guardhouse. Mr. Sweeney stated he would purchase and install the conduit, with the camera to be located at the northeast corner in the back facing out (by the mailboxes). Mr. Sweeney would schedule the project with Mr. Vescio, with Mr. Sweeney laying the conduit within a couple of weeks. He stated the PVC pipe and wiring costs have not yet been calculated, but that is not a big expense, and his labor is no charge. The camera will cost approximately $1,500, so with the trenching and the pipe/wiring costs, the project should total about $6,000.

Mr. Chambers asked Mr. Sweeney what the camera would zoom in on. Mr. Stroud stated that no one is now picking up trash like Don Braun, former groundskeeper, used to do. Ms. Thomson reported that the Association recently repaired or replaced all of the gate hinges to the dumpster area at a cost of $650, at Mr. Risen’s request, since two of the hinges have had to be replaced recently.

Mr. Svider made a motion that the Association authorize the payment of not to exceed $7,000 for the installation of the new camera at the dumpsters. There was no second to the motion, and the motion failed to carry.

Mr. Risen reported on the status of lot 10, stating that he went to the County Health Department to report black mold inside the residence. The Health Department told Mr. Risen that it doesn’t inspect the inside of structures, that it doesn’t test for mold, and that it does not want to get involved. It was reported that Buckskin Fire also does not wish to get involved in this situation.

Mr. Svider made a motion to bring the owner of lot 10 into compliance with the CC&R’s concerning the condition of his lot by imposing the legal fine. Mr. Churchill stated that Mr. Willoughby’s roof needs to be repaired so roofing materials will stop blowing onto the street and onto neighbors’ properties; blowing debris constitutes a nuisance, which nuisance is in violation of section 12.6 of the CC&R’s. Mr. Willoughby is also in violation of section 12.11 (Safe Condition) and section 10.1 (Maintenance; Owner’s Responsibility). The motion was seconded, and the motion carried. Ms. Thomson is to contact the owner.

Mr. Sweeney reported that the roof height of the Fevurly construction project on lot 79 is currently in compliance, but it is very close to 18’, and the roofing material hasn’t been put on yet. He stated that it is likely the finished roof will exceed the height limit, and he continues to monitor construction.

Mr. Risen reported that the 5th wheel on lot 18 has been removed. The lot 173 vehicles that were being illegally stored on the street at the neighboring vacant lot have also been moved.

Mr. Sweeney presented the Board with two towing protests. Both protests state there were no signs, and no notice, to homeowners. Mr. Sweeney reported that both those statements are incorrect. He circulated the two protests submitted by Kathy Leek (lots 73/102) and Charles Hutchins (lot 97) to the board members. The new members of the Traffic Committee not having been determined as yet, Mr. Svider stated that he is still a member of the Committee. Mr. McPherson expressed his displeasure at having been removed from the Committee. Mr. Svider stated that the Association needs procedures for the parking lot. Mr. Risen stated that there are procedures, and violators receive a red-tag, 24-hour warning before being towed. Mr. Chambers stated that his trailer was towed over the Memorial Day holiday. He stated the new signs didn’t say trailers would be towed if they did not have lot ID, but he added that language to the signs right after his trailer was towed.

Mr. Risen presented to the Board R&B Security’s proposal for twice-daily patrols, seven days a week at a cost of $30 per day. The proposal includes a uniformed, DPS-certified security guard patrolling the streets via marked security vehicle and on foot, with a two-way radio and cell phone to monitor and report suspicious activity to the police. R&B will provide written reports on a weekly basis, will take photos of violations, issue citations, and arrange for towing of vehicles and trailers from the common lot in violation of the rules. R&B Security does not engage in law enforcement duties (make arrests). Sgt. Darrell Wilson would be the primary security guard. Mr. Risen recommended the board approve the proposal, and felt the Association would benefit from an unbiased, third party agency to enforce rules and regulations. A discussion followed about trash removal and general maintenance. Mr. Sweeney suggested that someone who lives in the Keys be enlisted to do clean up and drive the streets to address landscape, maintenance and upkeep issues, as well as pick up trash on the streets. Mr. Risen read R&B Security’s July 4th report to the Board.

Mr. Price made a motion to hire R&B Security pursuant to the terms of its proposal. There was a discussion about continuing the service on a month-to-month basis to see how it works, noting that either party may terminate the service upon 30 days’ notice. Mr. Stroud requested that reports be submitted prior to monthly Board meetings, and Mr. Risen stated that R&B would submit reports on a weekly basis. The motion was seconded, and the motion carried.

Mr. Risen asked Ms. Thomson to report to the Board a new due diligence law imposed by the State of Arizona relating to real estate agents and prospective buyers of properties in homeowner association’s. The law requires all prospective buyers be provided with specific disclosure information and documents, whether or not the prospective buyer actually purchases the property. Ms. Thomson states that some of the prospective-buyer information is different from the new-owner information packet she sends to new owners.

Mr. Price made a motion that the Association charge a $100 transfer fee to escrow for each new member to cover the cost of submitting necessary documentation to new owners. The motion was seconded, and the motion carried.

Mr. Sweeney made a motion that the Association charge a $100 due-diligence fee to real estate agencies requesting disclosure on behalf of prospective buyers. The motion was seconded, and the motion carried.

Mr. Stroud inquired about the status of Squeak providing qualification of his membership status enabling him to serve on the Board. Mr. Price replied that Squeak told him he would have the documents. Mr. Risen suggested that those documents be submitted to Mr. Churchill.

There was a report of brush growing into the canal, with blowing debris, at lot 180. Mr. Chambers stated he would contact the owner and work with them to resolve the issue. (The bank is now extremely steep following Kenko’s reconstruction of the slope, and the owners have been unable to do their own weed control.)

Mr. Risen read Mr. Currie’s monthly report, and he stated that the possibility of Mr. Currie leaving following his experience with the Memorial Day holiday has been resolved for the moment. Mr. Currie told Mr. Risen recently that he was going to stop issuing warnings for violations, because people don’t cooperate even with a warning. He did tell Mr. Risen, however, that he has been getting some cooperation on the stickering of trailers in the parking lot.

The protest submitted by Kathy Leek having been read by the Board was brought up for discussion again. Mr. Sweeney read the protest which states that no warnings were given, nor were there signs posted on 6/10/05 (the date of the tows). Mr. Sweeney stated that the signs were posted in May and that Mr. Currie did warn the vehicle/trailer owners, and the following day they were towed. Mr. Sweeney stated that the Association did everything it was supposed to do, and he therefore recommended that it uphold the towing of the one vehicle and three trailers owned by renters of Ms. Leek. A motion was made to uphold the towing of one vehicle and three trailers owned by renters of Ms. Leek. The motion was seconded, and the motion carried.

Mr. McPherson asked if there is a mechanism in place for ID stickers. Mr. Risen stated that the Association accepts any form of ID attached to the trailer tongue. He stated that Robert Gory Realty has its own guest stickers that they distribute to renters of the properties they manage. He further stated that the Association does not engage in the towing of vehicles/trailers in the lot that are blocking other vehicles.

The protest submitted by Charles Hutchins was reviewed. The protest states that no warnings were given, nor were there signs posted on 6/9/05 (the date of the tow). For the same reasons as stated in response to the Leek protest, Mr. Sweeney recommended that the Association uphold the towing of this vehicle/trailer. A motion was made to uphold the towing of the vehicle/trailer owned by renters of Mr. Hutchins. The motion was seconded, and the motion carried.

Plans for a room addition on lot 238 were presented. This is a dry lot, and the structure meets the 15’ height requirement and the 5’ rear and side setbacks. Mr. Churchill reviewed the plans and deemed them acceptable. Mr. Price made a motion to approve the room addition plans for lot 238 as presented. The motion was seconded, and the motion carried.

Mr. Svider had a question about last month’s motion on the plan submission for lot 198, specifically concerning the setbacks. Mr. Sweeney reminded Mr. Svider that those plans were reviewed and rejected, and a motion was made with specific guidelines for the owner to address in order to obtain plan approval. He further stated that we did provide the owner with those guidelines.

Mr. Price reported that the title company is working on the Berge matter. Mr. Churchill stated that he spoke to Mr. Berge’s attorney about preserving the integrity of our security once their property is developed and both developments are within the same gate. The attorney said that they had not thought about that issue. Mr. Churchill also stated he talked to Mr. Gory about the possibility of utilizing the existing entrance that has been used all this time. Mr. Gory replied that there is a visibility property with the existing entrance, according to their engineer.

The meeting adjourned at 7:50 p.m.

Submitted by Recording Secretary, Sue Thomson