Board of Directors
NOVEMBER 7, 2005
CALL TO ORDER
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
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: John Currie
Legal Counsel: John C. Churchill (6:05 p.m.)
CALL TO PUBLIC
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.
GENERAL MANAGER'S REPORT
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
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
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
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
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
APPROVED BY BOARD OF DIRECTORS DECEMBER