Board of Directors
Regular Meeting
NOVEMBER 7, 2005

President Bill Risen called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:00 p.m.

President: Bill Risen
Vice President: Chuck Baker
Secretary/Treasurer: Chris Chambers
Board Members: Jack Sweeney, Gary Svider, Joe Price, Squeak, Larry St. George, Bob Stroud, Joe Maxwell (6.40 p.m.)

Board Members: Richard Jaschke
Security: Darrell Wilson, R&B Security

Guests: Guests: Michael Barrett (lot 245); Barbara Risen (lot 184)
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: John Currie
Legal Counsel: John C. Churchill (6:05 p.m.)

Mr. Barrett asked what is going on with the street repairs, and Mr. Risen stated they are sinkhole repairs. Mr. Barrett also stated that he can't wash his vehicles without neighbors complaining about water pooling, and his neighbor's driveway fills with water. He stated it has been like this for 2-3 years and can't the slope be fixed to resolve the problem. Mr. Stroud stated that the problem is at his house and that Ace Concept whom he recently called about the proposed repair work can't do a run that long (50'). He's back to square one since he cannot find a contractor to do the work. Mr. Stroud also stated that now is the time to fix the problem, and his neighbor to the north has given him permission to put in a drain through the neighbor's vacant side yard, as the neighbor would also like a drain. Running a drain through Mr. Stroud's property wouldn't work, as he has steps, and it would be too expensive to cut through the steps.

Mr. Sweeney stated that Stanton Construction started the sinkhole repairs today. Mr. Baker asked if Stanton is going to investigate the cause of the sinkholes. Mr. Sweeney stated that the one on Moovalya Drive needs investigating, and it is getting bigger. Mr. Price reported that the sewer district did not come out after the holes were blue staked. Squeak stated that additional cuts have been made, and no one knows who made them. Mr. Sweeney reported that asphalt is caving in, and Squeak reported that two homeowners have water leaks.

Mr. Baker made a motion that the Association investigate the proposed installation of a drain adjacent to Mr. Stroud's house to remedy the Hopi Drive flooding problems. The motion was seconded. Mr. Price said an easement is needed. Mr. Risen asked if we should hold up on Stanton's work to coordinate with the Stroud drainage project. Mr. Sweeney said he investigated the situation, and the water runs to Mr. Stroud's driveway; even with a drain, water will still pool; Mr. Stroud's driveway is the low spot. He stated a 24" catch basin in the driveway is the only resolution. There being no further discussion, the motion carried by a 3-2 vote. Mr. Stroud and Mr. Currie are to work together on getting a bid for the project. Mr. Baker stated that a 1' x 4' drain by the driveway should help.

Mr. Currie reported that he has tried to reach Darrell Wilson for two weeks, and discovered that he has been out of town for two weeks on two separate hunting trips. Mr. Currie left numerous messages with Mr. Wilson. Mr. Currie also stated that he has seen new security faces lately on patrol, but he has not spoken with them as yet, so he doesn't know if they know what to do. Squeak ran into Darrell recently, and he told Mr. Wilson that the Association is fed up with the situation. Mr. Wilson told him that his daughter was to help. Mr. Risen stated we would look into it. Mr. Currie also stated that R&B Security's owner picked up patrol while Mr. Wilson was away, but only after Mr. Currie inquired about the absence of security. Mr. Chambers stated that he talked to two guards recently, and they told him they're spending an hour every night while Mr. Wilson is away.

A motion was made to approve the Minutes of the regular meeting held on September 12, 2005. The motion was seconded, and the motion carried. A motion was made to approve the Minutes of the regular meeting held on October 3, 2005. The motion was seconded, and the motion carried. A motion was made to approve the Minutes of the executive session held on October 3, 2005. The motion was seconded, and the motion carried.

Mr. Price made a motion to approve the October Balance Sheet. The motion was seconded, and the motion carried. Mr. Price made a motion to approve the October Profit & Loss Statement. The motion was seconded, and the motion carried.
A motion was made to approve the accounts payable. The motion was seconded, and the motion carried.

Mr. Currie stated that Ken Smith (lot 35) made an inquiry as to the whereabouts of his poles and chains, as they were removed and not left on his property. It was determined that no one present removed the poles and chains. Mr. Currie reported that Angel with Big River Landscaping picked up the irrigation timers; he reported that he has not been able to reach Darrell Wilson; and he reports that he now has the gate coding mastered.

Mr. Chambers stated that the subcontractor who works for the telephone company is doing a crappy job of street patching. Mr. Risen reported on complaints about splatters and that they ran out of black concrete so they were patching with other road materials thought to be roof tar, which have created small speed bumps. Mr. Sweeney reported that Stanton is to repair the speed bump patch on Yaqui.

Mr. Baker asked if the Association is going after any of these people. Mr. Sweeney stated there are only three bumps that are not related to the sewer sinkholes. Mr. Price stated that Earthscape was hired by Buckskin Sanitary District to put in the laterals, and Squeak questioned the construction of the laterals. Mr. Price stated that the Association can bill BSD or file a small claims action. Squeak asked if the homeowner hires someone to do the hook up, and is it on the street or on the homeowner's property? Mr. Price stated that the thinks BSD's work goes 3' into homeowner's property, at least that's where BSD was supposed to go. So it is not the responsibility of the latest contractor doing the lateral hook up.

Mr. Svider reported on last week's BSD meeting, which he attended. He states that Doug with BSD said, "none of this is our problem; no sinkholes are within five feet of laterals." Mr. Svider further stated that BSD is not concerned about any of the Association's sinkholes. He said they are more concerned about slurrying over a manhole cover. Mr. Price stated that Cliff Edey made a comment that he doesn't understand BSD's position.

Ms. Thomson reported that the rental security deposit for lot 131 was received. Collection letters were sent to lots 10, 90, 146 and 183, with lot 10 being seriously delinquent.

Mr. Becker (lot 115) sent a follow up to inquire as to what the Association is going to do about multiple-family rentals, which is in violation of the CC&R's. A discussion ensued about the feasibility of enforcing this rule, and that if we can't stop the rentals, can we change the rule? Mr. Churchill advised that the CC&R's would have to be changed. Mr. Baker reported that the Assessor has supposedly changed the rental properties' assessed values. Mr. Svider asked when we will we pursue collection as a result of Mr. Churchill's letters on the unpaid rental security deposits. Mr. Svider was told that the matter is tabled for later in the meeting. Concerning Mr. Becker's request, Mr. Sweeney asked what the remedy is. Mr. Churchill stated that we couldn't fine them, as the issue was not presented for vote as a CC&R violation with a fine attached to it. We could send those homeowners a letter seeking to enjoin them from renting to multiple families, including a court order for the payment of attorney's fees. Mr. Price stated that it's difficult to control this issue when guests show up, and Mr. Churchill concurred that it is difficult to control. Mr. St. George reported that one house (2nd to the end on Moovalya Drive) has rented to large groups who have multiple boats, cars, etc. Mr. Risen concluded by stating that Mr. Becker can call the General Manager to complain and initiate an investigation.

Mr. Sweeney suggested that we send a letter to homeowners and their rental agents with the next billing statements reminding those who rent their properties that Association CC&R's prohibit renting to multiple families. Mr. Churchill stated that if we determine that multiple parties have rented a property, they are in violation of the single-family rule.

Ms. Thomson reported that she has not received any reports, photos or invoices from R&B Security since August 28.

Mr. Sweeney reported that he has found a camera that can be installed on a light pole across the street from the dumpsters. All we would need to do is get power from the pole. Mr. Risen stated that APS did not want us to tap in to their pole. Mr. Sweeney suggested that we offer to pay them for the power. Mr. Barrett, who works for APS, stated that he didn't think it would be a problem to run a secondary conduit from the pole. Doug is the APS person to talk to about it; what APS is concerned about is liability by our tapping into their fixture. Mr. Sweeney stated he would check into other power sources.

Mr. Churchill gave an update on the status of uncollected rental security deposits by reporting there is a group of homeowners who are rebelling against the security deposit. He stated that an attorney has been unofficially retained to fight the issue. Ms. Thomson read a letter prepared by Mr. Churchill in response to a protest letter written by Dale Smet (lot 166).

Ms. Thomson was asked to provide Mr. Churchill information on the lot 10 delinquencies so he can proceed with the filing of a lien.

Revised plans from the Tweedys (lot 173) were submitted to approval. The revisions call for the addition of two windows on the side of the building, none on the front. The space is to be used for storage, not living quarters. Mr. Sweeney recommends approval of the revised plans, further stating that it is ugly, but we should approve it. Mr. Maxwell made a motion to approve the revised plans submitted by the Tweedys for the lot 173 construction in progress. Mr. Sweeney seconded the motion. The motion was carried, with Mr. Baker and Mr. St. George opposing the motion. Mr. Churchill read an excerpt from section 11.4 of the CC&R's regarding architecture and harmony of external design with surrounding structures; he advised that the Board does not have to approve something that is not in harmony with its surroundings.

Gary Svider reported that he met with Steve Green (lot 112) concerning his reimbursement request for drainage system materials. Mr. Baker reported the history on this problem as going back to 2002 where there was pooling at his house and into his garage (but that's not the issue; he's to take care of that). Mr. Green installed two drains in front, and he is under the impression that the Association would pay for materials, not just the pipe. The two drains didn't do the job, so he ran lines down to the dock. That didn't solve the problem either, so he had more work done, and the problem is fixed, except for a low spot in the street. The grate is in Mr. Green's garage and will fix that problem, once it's stubbed into the existing drain, which the Association will do. It is Mr. Green's position that his request for reimbursement of $2,474 is all for 'drainage' (not 'improvements'). Mr. Baker further stated that the first two drains were already there, and he previously told Mr. Green that the Association would pay for the two extra drain pipes only, in addition to the grate that is to be installed in the street. The Board authorized reimbursement to Mr. Green of $375 for the PVC and $165 for the grate, for a total reimbursement of $540.

Mr. Svider stated that we need to get a bid for installing the street grate in front of Mr. Green's house. Mr. Sweeney suggested we approve an expenditure of up to $2,000 for this project. Mr. Baker made a motion that the Association seek bids, including one from Steve Stanton, for the installation of the street grate and stubbing it into the existing drain line at Mr. Green's property in an amount not to exceed $2,000. Mr. Baker stated that the tie-in line should not be longer than 10'. Funds from the Kenko account will be used to pay for this project. There being no further discussion, the motion carried, with Mr. Price opposing the motion.

Ms. Thomson relayed a message received from Lori Lyons (lot 67) about over spray that damaged five vehicles on their property, as a result of the roofing project going on at the Fevurly construction project (lot 79). Ms. Lyons had inquired about the possibility of withholding the neighbor's security deposit to pay for damages, and it was noted that because the Association is not the victim, withholding return of the homeowner's deposit is not permissible. Mr. Price stated the Lyons should go after the contractor's bond. Mr. Churchill stated that he agrees that the security deposit belongs to the homeowner, subject only to a claim by the Association against the homeowner. The Lyons can file a complaint with the Registrar of Contractors, as they have the power to order payment of restitution for damages. Mr. Churchill stated that the Registrar has nothing to do with the bond, unless the contractor is not licensed.

Mr. Sweeney presented plans for the construction of a residence on vacant lot 18. Mr. Sweeney recommends approval of the plans, further stating that it will be a nice looking house. Mr. Sweeney made a motion to approve the construction plans for lot 18. The motion was seconded, and the motion was unanimously carried.

Mr. Chambers suggested that the common parking lot be converted into a tennis/basketball lighted court with key-card entry. Mr. Stroud, who lives across from the lot, stated that would be too noisy. Mr. Chambers stated that the subject has been approached about three times in the last 10-12 years, and it has always been turned down, but he would like to see it happen. It was suggested that the subject be brought up again at the next annual meeting.

Squeak reported there is a serious raccoon problem in the Keys. Mr. Risen stated that Animal Control should be called to remove them, as we can't touch them. Mr. St. George reported a large raccoon inside his house in the middle of the night eating from the dog bowl. The raccoon entered the house through a doggy door. It is recommended that no pet food be left outside. Ms. Thomson is to notify homeowners about the situation.

Mr. St. George reported overgrown vegetation on lot 25. Mr. Currie will take photos, and Ms. Thomson will send a letter with the photos to the homeowner.

Mr. Stroud complimented the oleander-trimming job done at the perimeter of the parking lot. He also stated there are still some left to do by the power generator.

The ongoing matter of access to the Berge property was discussed. Mr. Churchill reported that he is not clear what happened before the warranty deed was given on the streets, which deed doesn't entirely solve our problem. The engineer's report doesn't render an opinion on the possibility of access from Bus. 95. Mr. Churchill stated that the engineer came to the legal conclusion that there's already access via Navajo Lane, so he didn't need to opine on Bus. 95 access, but he stated we need to seek an opinion from the engineer about that. Mr. Price stated that all we need is a title policy, isn't it? Mr. Churchill replied that it depends on the type of title policy. Insurance based on what's on record? There are exclusions they will impose depending on what's not of record; and if not of record, they will exclude. Mr. Price responded by stating that there was nothing on the title insurance proposal about exclusions; that we should get it and let the other side dispute it. Mr. Churchill warned that this is confusing as far as potential claims are concerned; the adjacent property owners may be claiming a right to drive across it, not that they own it. Mr. Price stated that we were subdivided 10 years after the deed to the streets. Mr. Churchill advised that the final title policy would be different from the preliminary (proposed policy), as there will be more exclusions. The adjacent property owners would then have to file a claim to claim a right.

Mr. Price argued that the title policy guarantees title to the streets. Mr. Churchill stated that is not true; he stated we would be buying title insurance, not title guarantee. He stated we have a deed, but how do we exclude access? Mr. Price replied that they would have to come after us.

Mr. Sweeney stated that title insurance is subject to easements. Mr. Churchill stated that we could disclose the potential claim to the title company and see what they say. Title insurance should be placed on that issue. Mr. Baker suggested that we let the adjacent property owner prove we should give them an easement; we've paid Mr. Churchill his attorney's fees to do proper due diligence. When asked of the cost, Mr. Price replied that the title insurance would cost $265.

Mr. Baker made a motion that the Association proceed with the procurement of a title insurance policy from Chicago Title for $25,000 on all the streets the Association owns. Mr. Churchill added that we hould disclose to Chicago Title the potential claim. Mr. Price stated that this is the same title insurance company Robert Gory Realty used for this matter, so they should know about the issues. There being no further discussion, the motion was carried.

The meeting adjourned at 7:42 p.m.

Submitted by Recording Secretary, Sue Thomson