Board of Directors
Regular Meeting
SEPTEMBER 12, 2005

President Bill Risen called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:02 p.m.

President: Bill Risen
Vice President: Chuck Baker
Secretary/Treasurer: Chris Chambers
Board Members: Jack Sweeney, Joe Maxwell, Gary Svider, Joe Price, Bob Stroud, Squeak, Richard Jaschke, Larry St. George

General Manager: John Currie

Guests: Al McPherson (lot 70); Blane Coon (lot 54); Kaye Bozeman (lot 61); Pete & Carol Becker (lot 115); Barbara Risen (lot 184); Sheryle Jaschke (lot 171)
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill
Security: Darrell Wilson, R&B Security

Mr. Becker stated he’s been a homeowner for about three years, and he complimented the Board in reducing undesirable activities. He stated he has a problem with 10-20 person rentals, as this increases security and trash issues. He referred to section 12.17 of the CC&R’s that states houses are to be occupied as a single-family residence. He also stated that the Town of Parker says large groups are considered R-1 activity and not permitted. Mr. Baker stated that Mr. Becker once had tenants that were bad, and he stopped renting. Mr. Baker also stated that the Board has just not clamped down on this issue, but he acknowledged that renters are an increasing problem, and we want to do something about it. Mr. Becker stated that our CC&R’s were fashioned after the Town of Parker codes. Mr. Risen said that the Board would work on a solution with Mr. Churchill.

Mr. Svider reported that he checked with the Assessor’s Office, and all the identified rental properties are being taxed at 10%. Mr. Baker stated that he has already given a list of rental properties to George Nault, and that Mr. Nault would look into it. Mrs. Bozeman stated that her property was taxed at 25% when they were renting it. Mr. Becker stated that groups can get together on an Internet site and pay $100 to rent a place in the Keys--a place to party. Squeak asked Mr. Becker to provide the Board with that website address.

Darrell Wilson gave his monthly security report. He issued 15 white line citations and 18 white line warnings. He had 18 trailers/vehicles towed. He said that word seems to be getting out. He believes a lot were renters who weren’t advised. It was a fairly quiet month, other than an incident involving lots 64 and 67 on Apache Loop. In addition, a letter from James and Carol Schaller, lot 12 on Moovalya Drive, was written on 8/08/05 regarding loud music, cussing and yelling on 8/5 and 8/6 at 8840 and 8850 Apache Loop (lots 63 and 64). Mr. Schaller called the Sheriff at 3:15 Saturday a.m., but they did not arrive until 4:30 a.m., and the party had shut down about 4:10 a.m., so no noise was noted by the Sheriff. Mr. Wilson stated that while he was patrolling that weekend, a group of people gathered at lot 64 started yelling obscenities at him for no reason. Mr. Risen apologized to Mr. Wilson for the words they used, as they were totally inappropriate. Mr. St. George reported that three lots were involved in that incident, including two women from lot 67.

Mr. Wilson reported that on Friday night of Labor Day weekend, at 12:45 a.m., Wade Ruhman, lot 64 and nine others were yelling obscenities at an extremely loud volume, while neighbors were sleeping. Mr. Wilson called the Sheriff’s Office, and Wade Ruhman and a buddy of his, Joe Hirschman, were almost tazered by deputies. It was reported that Mr. Standrod was almost tazered as well at about 3:30 a.m. Mr. Ruhman and Mr. Hirschman were arrested for disorderly conduct, and Mr. Hirschman escaped custody. Mr. Wilson also reported that the next night, Mr. Ruhman had a vulgar conversation with him, and he and threatened him with bodily harm if he called the cops again. The Sheriff’s Office was called again that night. Mr. Wilson said he is going to write a letter of complaint to Mr. Ruhman’s employer, the Garden Grove Fire Department concerning Mr. Ruhman’s actions. He stated that Dennis Standrod who owns lot 64 with Wade Ruhman and Edward Ruhman, is a Captain at the Garden Grove Fire Department, and the two Mr. Ruhmans are his subordinates.

Other incidents include a couple of loud bands and minors on cycles who were speeding but were returned to parents or grandparents to be dealt with.

Mr. Baker made a motion that the Board send a follow up to the Chief of the Garden Grove Fire Department. The motion was seconded. Mr. St. George reported that some of the above persons converged on vacant lot 65 where they bent rebar and knocked some blocks off. He also stated that Mr. Standrod knocked on his door this night, the house was dark, and he seemed surprised to see Mr. St. George answer the door. Mr. St. George invited Mr. Standrod into his house to show him how bad things were vibrating due to the loud music. Mr. St. George said the music was turned down about twenty minutes later, but then it was turned up again. Mr. Wilson reported that he told Mr. Standrod that there is no time limit (day or night) on disorderly conduct. There being no further discussion, the motion carried.

Mr. Wilson stated that the Peters’ party went fairly well. Four shots from a cannon went off before they were stopped.

Mr. Risen stated that the Association is not a sovereign nation. Seven squad cars came in to look for the escaped man. So if someone says the Sheriff’s Office is not welcome, it’s not true.

Mr. Svider had a question about the legality of minors on golf carts. Mr. Stroud stated that the homeowners voted to allow minors on golf carts. Mr. Risen warned that golf carts operating on the road or crossing the road (Riverside Dr.), and anyone operating a golf cart without a driver’s license, will be issued a ticket by the police.

A motion was made to approve the Minutes of the regular meeting held on August 1, 2005. The motion was seconded, and the motion carried.

A motion was made to approve the Minutes of the executive session held on August 1, 2005. The motion was seconded, and the motion carried.

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

Mr. Baker made a motion to approve the August Balance Sheet. The motion was seconded, and the motion carried.

There was a discussion about some of the rental property homeowners claiming discrimination in being required to pay the $1,000 security deposit. There was also a comment about interest accrual on those security deposits the Association is holding. Ms. Thomson reported that accrued interest can be passed on to the homeowner at the time of refund, when either the property ceases to be a rental property, or the property is sold.

Ms. Thomson presented a letter from Steve Green (lot 112) representing his itemization of the materials to complete his drain. Mr. Svider reported that the job is not done, that four catch basins are in, but the grate is not. Mr. Svider is unclear as to why 4.5 yards of concrete was needed, and why a concrete pump was needed. Mr. Baker said that the Association was to pay for only the pipe and the grate, as Mr. Green was going to do the concrete work anyway. Mr. Sweeney reported that a street drain is needed on Apache Loop by Russ Derby’s property (lot 85).

Ms. Thomson reported on delinquent fines, assessments and security deposits. Mr. Risen reported that the Judge’s decision has not come forth as yet on the Small Claims suit filed by Hutchins (lot 97) for the reimbursement of tow fees. He also stated that the Board needs to authorize Mr. Churchill to take action against delinquencies that are past due over a quarter (three months). Mr. Baker noted that our previous decision was to wait a quarter before filing a lien.

Mr. Price made a motion to pursue collection of all past dues fines, assessments and security deposits over one month delinquent. Mr. Churchill advised that the first step is a letter, and if negotiations break down, then a lien can be filed. Mr. Churchill also advised that because of new HOA laws, measured steps should be taken. There being no further business, the motion carried.

Ms. Thomson reported that Mike Roberts has placed a bid for lawn/landscape maintenance, and trash pick up at the entrance and dumpster areas for $500 per month. Ms. Thomson forwarded an official proposal to Squeak, and Squeak added trash pick up from the common parking lot to the proposal. Mr. Baker also requested that Mr. Roberts’ proposal include trash pick up at all the bridge approaches. Squeak is to follow up with Mike Roberts regarding this additional task.

Mr. Chambers voiced a complaint about his towing charge. He was one of the first towed after the policy was implemented, and on Saturday 5/28 the language “or you will be towed” after the lot ID phrase was not on the sign. (Mr. Chambers himself wrote on the signs “or they will be towed” after the lot ID phrase just a day or two after he was towed. At the time he was towed, the signs only said “will be towed if parked more than 7 days.” But he will abide by what the Board decides.

Mr. Risen reported that Mr. Wilson is having difficulty generating his reports and photos in a timely fashion, but that he is working on it.

Ms. Thomson reported that a Dennis Smith, soon-to-be owner of lot 214 on Hopi Drive has contacted her, and the General Manager, regarding the undesirable condition of two houses across the canal on Yaqui Loop. Mr. Risen stated that the two houses are in a better condition now than they were, and the owners are doing what they are financially capable of doing. It was suggested that Mr. Smith present his case in person after he has become an owner.

Mr. McPherson reported that lot 10 was auctioned by the County to Security Financial, because no sewer assessments had been paid. No one else had any information on the status of ownership of lot 10. Mr. Svider stated that he wants to have the Fire Marshal check on the structure. Mr. St. George reported a recent break-and-enter at lot 10, but the vandal(s) left immediately.

Mr. Baker made a motion to approve the Accounts Payable as reported by Ms. Thomson, including the newly submitted invoices from R&B Security for the Labor Day holiday and security for the month of August. The motion was seconded, and the motion carried.

Mr. Churchill questioned the cause of the sinkholes on Yaqui Loop. He said if it’s due to compaction problems and they are filled in with concrete, it would be difficult to get to the lines. Mr. Sweeney said he thinks the sewer connection is leaking, and it’s getting worse. Mr. Risen stated that Buckskin Sanitary District will look at them after we open them up for inspection. It may be a lateral connection problem due to former compaction work, but we need to find out the cause. He also stated that Stan Vescio bid all sinkholes except the large one on Moovalya Drive. Mr. McPherson stated that Buckskin may hire its own contractors. Mr. Risen replied that Buckskin is not laying claim, or blame, until the holes are opened up. Mr. Churchill advised that the Association put Buckskin Sanitary District on notice so that we don’t open ourselves up to potential liability. Mr. Svider reported that Keys II was on a wait list for sinkhole repair with Buckskin for over two years. He had to go to the Buckskin Board, and he suggested that this Board do the same. He stated that Buckskin claims not to be liable after two years for any incidents, other than if the pipe breaks. The work has been done in Keys II, it’s been scoped, and it’s fine now.

Mr. Sweeney states it is not the Association’s responsibility to do the initial digging so Buckskin can inspect their pipes. Buckskin owns the sewer system, and the homeowners own the connection to the sewer system. They have complete and total ownership of it, and the homeowners have paid them thousands of dollars to connect to it. And the streets continue to collapse. Mr. Price reported that telephone lines also sink, but we can’t go digging everything up. Mr. Baker stated that sinkholes will keep growing if the underlying cause isn’t addressed. Mr. Price said there is a certain amount of leaking in the system. Mr. McPherson inquired about contamination of leaky sewer pipes, and Mr. Price replied that there would be no contamination if the leakage went back into the system, in which case the homeowner would take it up with Buckskin, and they could scope it. Mr. Risen stated that we have no estimate as yet on the sinkhole on Moovalya Drive.

Mr. Baker made a motion that the Association send a letter to Buckskin Sanitary District notifying them that we have sinkholes and that we believe the cause lies in their lateral lines; that we demand an immediate investigation and repair, within 15 days, or the Association performs the work and bills Buckskin for the work. Mr. Price said that the sinkholes need to be fixed now, and it was reported that the sinkholes are not other-utility related. Mr. Stroud seconded the motion. There was no further discussion, and the motion carried.

Mr. Svider stated that we have an uphill battle, as Keys II waited over two years for its sewer-related sinkhole repairs. Mr. Price suggested that photos be taken of the sinkholes. Mr. Svider stated that because Keys II previously repaired the sinkhole, Buckskin threw it back onto the HOA.

Mr. Risen reported that the left side of the first bridge, down to the canal, is sinking near the Cablevision line. Cablevision says they don’t have open lines. Mr. Sweeney reported a problem at the Yaqui Loop bridge, and he suggested a committee be appointed to look at problems on all the bridges.

Bids from Stan Vescio were presented to the President. Mr. Risen asked if installing black concrete is a problem if it needs to be dug up later. It was reported that 4” of concrete is not difficult to remove.

Mr. Sweeney made a motion to approve payment of up to $10,000 for the repair of all sinkholes. The motion was seconded, and the motion was carried. Mr. Baker stated that we should attempt to get another bid. It was decided that all sinkholes are to be handled by the Architectural Committee.

Ms. Thomson will draft and send the letter to Buckskin Sanitary District, with a copy to Mr. Churchill.

Mr. Sweeney stated that he has not had time to gather further information on the cameras for the trash area.

Mr. Risen presented the Security Guard Job Description and the revised General Manager’s Job Description.

Squeak stated that the County’s street sweeper hasn’t swept the streets lately. Mr. Baker suggested that Mr. Currie call Cliff Edey or Tim to resume service. Squeak also reported that he spoke with Judy Derby today who reports that Russ Derby recently had a quadruple bypass and has been in intensive care for four days.

Mr. Svider inquired how the General Manager can perform his duties if he has an outside full-time job. Squeak replied that Mr. Currie gets home by mid-afternoon.

Mrs. Bozeman requested a continuance of her citation protest, due to a delay in back up information on the citation.

Mr. Risen stated that six new metal reflective signs for each street will be made identifying R&B Security as our security vendor. The new signs will include R&B’s telephone number.

Mr. Price inquired of the status of the two or three poles and chains that were supposed to be moved back. Ms. Thomson stated that she had asked Mr. Sweeney to clarify some setback issues of adjacent structures. Ms. Thomson and Mr. Sweeney reviewed the earlier photos of the subject poles and chains on lots 35 and 143, and it was explained that the adjacent structures were built with no setbacks and thus were not a guideline. Squeak stated that the barrier on lot 177 has been moved.

A motion was made that Mr. Price and Mr. Sweeney inspect the poles and chains on lots 35 and 143 and pull them if they are still over the property lines. The motion was seconded, and the motion carried.

Mr. Price presented old photos of the main bridge collapse and stated we need block work repairs on the bridges. Mr. Chambers stated that Stanton Construction is the only one capable of doing the work. Mr. Baker requested that Mr. Currie contact contractors in Lake Havasu City. Mr. Currie should also talk to Mr. Price about this project. Corp of Engineer approval will also be needed.

Mr. Baker updated the Board on the status of the APS street lights. He said that APS owns the lights, maintains them, and the Association pays a monthly per-light fee for power. Even though the Association was not notified of a price increase, Mr. Baker attributes the higher power bills to a price increase.

Mr. Svider reported the strobe light on the buoy is trashed. Mr. Sweeney reported the remaining one is half floating. A motion was made to purchase two strobes, with Mr. Sweeney volunteering to install them. The motion was seconded, and the motion carried.

Plans for the construction of a residence on lot 65, and plans for a remodel project on lot 27 were presented for review.

A motion was made to approve the submitted plans for new home construction on lot 65. The motion was seconded, and the motion carried.

A motion was made to approve the submitted plans for a remodel project on lot 27. The motion was seconded, and the motion carried.

The meeting adjourned to Executive Session at 8:00 p.m.

Submitted by Recording Secretary, Sue Thomson