Board of Directors
OCTOBER 3, 2005
CALL TO ORDER
President Bill Risen called the regular meeting of the Lake Moovalya
Keys Board of Directors to order at 6:05 p.m.
President: Bill Risen
Board Members: Jack Sweeney, Gary Svider, Joe Price, Squeak, Richard
Jaschke, Larry St. George
Vice President: Chuck Baker
Secretary/Treasurer: Chris Chambers
Board Members: Bob Stroud, Joe Maxwell
Security: Darrell Wilson, R&B Security
Guests: Blane Coon (lot 54); Steve Catlin (lot 177); Barbara Risen
(lot 184); Sheryle Jaschke (lot 171)
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: John Currie
Legal Counsel: John C. Churchill (6:25 p.m.)
CALL TO PUBLIC
Mr. Catlin stated he was attending his first meeting as an observer.
Mr. Risen reported that Darrell Wilson injured himself, and is
absent tonight as a result of his injury. Mr. Risen stated that
Mr. Wilson is doing a good job, except he is not submitting his
paperwork in a timely fashion. Ms. Thomson was asked to send him
a letter giving him formal notice that we expect his security
reports and photographs to be submitted on a weekly basis, within
seven days following the end of the week. No reports or photographs
for September were submitted prior to the meeting.
GENERAL MANAGER’S REPORT
Mr. Currie reported that R&B Security did a good job over
the Labor Day holiday, even though there was a report of one of
the guards sleeping in the guard shack, but Mr. Currie did not
witness this. Mr. Currie stated that Mr. Sweeney has a handle
on the sinkhole issue. Dan Kurtz, lot 214, complained about a
tow due to no lot ID, and he threatened suit. Mr. Currie stated
that Mr. Wilson has been making his rounds.
Mr. Risen stated that the Association won
the recent towing-related court case, the court ruled the towing
valid, and the $125 requested reimbursement was denied. He also
stated that the Hutchins’ (plaintiffs in the case) complained
about not towing when trailers are blocking other trailers. Mr.
Catlin asked if the Association would accept street-address identification
in lieu of lot numbers. Mr. Risen replied that an address would
be acceptable. Mr. Sweeney suggested that we adopt a permanent
form of identification which would prohibit sticker abuse from
outside parties. It was decided that by the next Memorial Day
holiday a permanent, official Lake Moovalya Keys ID sticker would
be the only form of permitted vehicle/trailer sticker.
Mr. Risen commented on the improved situation
with street clearance since the system of fines was established;
where once it was almost impossible for a fire truck to get down
the streets, the streets are now clear. Mr. Currie suggested that
warnings be reinstituted, and Mr. Sweeney stated that while he
used to believe in warnings, it has been too long now, and no
warnings should be issued. Ms. Thomson stated that the lot-specific
visitor passes are being distributed by the realtors to the renters.
Squeak asked if broken gate remotes are being replaced at no charge
to the owners, and Mr. Risen stated that has been the Association’s
Ms. Thomson reported on communications between the Association
and Buckskin Sanitary District (BSD) regarding the identified
sinkholes. Late fees were assessed against 11 lots for delinquent
dues. Six metal R&B Security signs are being manufactured
for installation on each street. The latest response from Dave
Johnson (lot 74) regarding Squeak’s qualification to serve
on the Board was previously circulated to the Board, and it was
noted that the issue is now moot, since Squeak and Lauri Burke
(lot 122) executed and recorded a deed this morning in both their
names. Squeak also stated that Mike Roberts, our new landscape
maintenance person, started this morning. Mike replaces Angel
of Big River Landscaping, whose services were recently terminated.
Ms. Thomson reported that she did some Internet
research on HOAs. She stated SB1151 protects HOA boards. HOA statutes
come under Title 33, Chapter 9, Condominiums (33-1201 to 33-1270)
and Chapter 16, Planned Communities (33-1801 to 33-1808) of the
Arizona Revised Statutes. The provisions of Title 10, Corporations,
and the chapters relating to membership nonprofit corporations
also apply. Amendments to Liens can be found in sections 33-1256
and 33-1807. Also of interest is section 33-1902 relating to residential
rental property, which requires owners to apprise assessors, in
writing, of certain property and ownership information. These
letters are considered public records and “failure to comply
is subject to civil penalty of $1,000 plus $100 for each month
after the date of the original violation until compliance occurs.
The court shall not suspend any portion of the civil penalty provided
by this subsection.”
Mr. Risen stated that he has been approached
about the possibility of the Association doing away with rentals,
and can we say “no more”, except to grandfather existing
rentals? Squeak stated that none of the rental properties are
getting assessed at the higher tax rate. He stated he gave Cliff
Edey today a list of all rental properties in the Keys, and he
was told they would be taxed accordingly. Mr. Risen reported that
he was aware that the Hutchins’ property (lot 97) is being
taxed at the higher rate. In reply to Mr. Coon’s query about
long-term renters, Mr. Risen stated that we are talking only about
short-term rentals in this regard, 30 days or less. Mr. Sweeney
and Mr. Price both expressed the opinion that they didn’t
think prohibiting rentals would be possible.
Mr. Sweeney made a motion that the late fee
waiver request by lot 24 be approved, due to the owner’s
statement that he did not receive his last statement, and he has
never been late before. There was discussion about recent, frequent
mail mishaps possibly due to our new postal delivery person. Squeak
seconded the motion, and the motion carried, with Mr. Price opposing
Mr. St. George reported on rental issues at
a new HOA in Surprise, where a friend of his had to sign a no-rent
clause and a commitment to own the property for a minimum of two
years. Mr. Sweeney also reported on new deed restrictions by some
HOAs to eliminate speculative buyers.
Ms. Thomson reported that no additional security
deposits were received this month subsequent to the collection
letters being sent by Mr. Churchill’s office. Lot 214’s
security deposit was returned due to a change in status and a
pending sale of the property. Also, Security Real Estate is now
handling two new rentals, lot 108 and lot 212, and both owners
have been billed the security deposit.
Delinquent fines are outstanding on lots 188,
43, 161 and 10. No citations were issued, since R&B Security
did not submit any reports for September.
Ms. Thomson did some Internet research on
the owners of lot 64 and the Garden Grove Fire Department as a
result of discussions at last month’s meeting. Mr. Risen
stated that the Board would not be following up with the Garden
Grove Fire Department regarding the owners of lot 64. Mr. Svider
reported that as a private citizen and a retired fire department
member, he is going to send his own letter.
A motion was made to approve the Accounts
Payable as reported by Ms. Thomson. The motion was seconded, and
the motion carried.
Mr. Price made a motion to approve the September Profit &
Loss Statement and the September Balance Sheet. Mr. Sweeney pointed
out errors on the Balance Sheet, and Ms. Thomson stated she would
fix the errors and resubmit the Balance Sheet to the Board tomorrow.
The motion was seconded, and the motion carried, except as to
the corrections to be made to the Balance Sheet.
Mr. Risen and Mr. Sweeney reported on a movement to overthrow
the current Board of Directors. Mr. Sweeney stated he was approached
by the Hutchins’ (lot 97) to see if he would be interested
in serving as President of a new Board. He stated the Hutchins’
are upset about the security deposit issue. Mr. Sweeney reported
that he turned down the offer, and he told Mrs. Hutchins that
she should come to a Board meeting. She replied that she didn’t
have time except to attend the annual meeting. Mr. Sweeney stated
that for those who do short-term rentals only in the summer, the
Association could refund the security deposit at the end of the
season, and collect it again at the beginning of the following
rental season. Mr. Catlin reminded everyone that George Nault,
La Paz County Assessor, at the last annual membership meeting,
told us that if anyone knows of any rental properties to let him
know. He said it’s almost impossible for them to keep current
with the identification of rental properties.
Mr. Sweeney reported on 13 sinkholes and the
two bids he received to accomplish the needed repairs. Stan Vescio’s
bid is for $10,426.00. Steve Stanton Construction’s bid
is for $10,894.17. Ms. Thomson discussed the status of her communications
with Buckskin Sanitary District, and Mr. Svider reported that
he attended the most recent BSD meeting where they stated that
our letter to them was threatening, that they have other more
pressing things to do, and that their sewer lines are in good
condition. Mr. Price reported that the phone company made a repair
on a speed bump they created, and he thought Cablevision was doing
some work with their lines. Mr. Risen wondered if we would be
risking damage to the sewer system if we go ahead with the sinkhole
repairs on our own. Mr. Price suggested that we send a letter
to BSD with the cost estimate and provide them with an opportunity
to do the repairs. Mr. Churchill advised that we confirm with
an expert that the sinkholes are not caused by the contractor
or otherwise. We need someone to render an expert opinion. Mr.
Sweeney stated that both contractors agreed in their bids to dig
down and make a mark. Mr. Price stated that we don’t want
to mess with the sewer line; we don’t need to dig to the
laterals. Mr. Churchill stated that every homeowner contracted
for their own work on their respective laterals. Mr. Sweeney stated
that BSD was the only one to inspect them. Mr. Price stated that
the damage done in the streets is sewer-company related, and homeowners
didn’t pay for new laterals. BSD hired the contractor. It
was noted that Mike Dyer recently did the one by the exit gate,
and Mr. Price said that you could tell the difference.
Mr. Risen stated that we are still holding
the approximate $19,000 Kenko money, which can be used for these
Mr. Churchill says that while he is not an
expert, this could be due to a lack of compaction. Mr. Sweeney
stated that he believed the only one that may be leaking is the
one on Moovalya Drive. He also stated that he has been paid as
an expert witness before in this area. Mr. Churchill stated that
an expert could do a core sample to see if there is a compaction
Mr. Price made a motion to hire Steve Stanton
Construction for the bid price of $10,894.17 to dig out, re-base,
compact and black concrete 13 sinkholes, our preference for Stanton
being our ability to seek recourse against a licensed contractor,
should recourse become necessary. The motion was carried, with
Mr. Svider opposing the motion.
Mr. Currie was asked to take photos after
underground alert has been contacted and marks made. Mr. Churchill
advised that we contact BSD of what we will be doing. Mr. Sweeney
asked Ms. Thomson to give him BSD’s phone number, and he
will coordinate with Stanton and BSD.
Mr. Sweeney stated he has a source for a solar-powered camera
that would go the physical distance, and that he is waiting on
Mr. Churchill stated that he has not had time to follow up on
the Berge access matter.
Mr. Catlin asked if the Feedback function
on the Association’s website has been fixed yet, and Ms.
Thomson reported that it was supposed to be fixed as of this morning.
Mr. Catlin will follow up and advise Ms. Thomson if there is still
The meeting adjourned to Executive Session at 7:08 p.m.
Submitted by Recording Secretary, Sue
APPROVED BY BOARD OF DIRECTORS NOVEMBER 7, 2005