Board of Directors
Annual Meeting
MARCH 26, 2005

President Chuck Baker called the annual meeting of the Lake Moovalya Keys Board of Directors to order at 9:40 a.m.

President: Chuck Baker
Vice President: Chris Chambers
Board Members: Joe Price, Bob Stroud, Gary Svider, Joe Maxwell, Jack Sweeney, Squeak

Board Members: Bill Risen, Trish Wikoff

Bookkeeper/Recording Secretary: Sue Thomson
General Manager: John Currie
Legal Counsel: John Churchill
District 2 Supervisor: Cliff Edey
La Paz County Assessor: George Nault

The sign-in sheet of those present at the Annual Meeting is on file with the Association. The number of owners represented at the meeting was 61.

The Board of Directors and service providers introduced themselves, stating their positions and how long they have been affiliated with the Association. All homeowners introduced themselves. Mr. Baker stated that two Board members resigned during the year, Russ Derby and Tonya McPherson, and that there is one vacancy on the Board. Mr. Baker stated that 61% of owners are currently from Southern California, 29% are from Parker, and the remaining 10% are from all other areas.

Mr. Baker reported on Board meeting attendance during the last year, stating that Ms. Wikoff had a 50% attendance record, Mr. Svider, Mr. Sweeney, Mr. Risen and Squeak had 100% attendance, and everyone else was in the 75-92% range. Mr. Baker reported that last year’s annual meeting was represented by 63 owners.

Mr. Chambers made a motion to approve the Minutes of the 2004 Annual Meeting. The motion was seconded, and the motion carried.

Mr. Baker reported that the Association now has five bank accounts: A general account, a Kenko (repair) account, a capital improvements account, a security deposits account and a reserve account. The Kenko account is being funded with monies that we withheld on final payment pending final punch list items, and those funds now belong to the Association, as the punch list items were not completed by Kenko. The money will be used for drainage repairs; they will be of a general repair nature that will benefit more than one house. The capital improvements account was established for long-term budgeting, and the reserve account is for other non-specified projects. Construction and rental security deposits are kept in the security deposits account.

A motion was made to approve the 2004 financial reports. The motion was seconded, and the motion carried.

George Nault, La Paz County Assessor, now in his fourth elected term, reported that he will be County Assessor for the next four years. Mr. Nault has been a county resident since 1969. Concerning the increase in assessed property valuations, Mr. Nault stated that it’s the people who sell their homes and leave who are driving the assessed values upward. Assessed values are determined from affidavits of sale. He stated that current assessed values are still below market value, and he quoted valuations and assessed values for various types of property, adding that he has had to stay within the scope of the law. He also stated that the entire state is seeing similar increases.

Mr. Nault also reported that recent voter turnout was 60%, with 40% not voting. 5.9% turned down the bond issue. Mr. Nault offered to discuss with any interested parties issues pertaining to budgets, which it must approve, with schools, fire departments, AWC, sewer districts, etc.

Mr. Nault explained full cash value versus limited value, stating that limited value goes up 10% until it reaches full cash value, or at 25%, and limited value couldn’t exceed full cash value. Mr. Nault stated that La Paz County has less than 20,000 people to fulfill all its service needs, and this makes it more difficult than it does for highly populated counties. Also, County offices are staffed with a minimum number of personnel.

There was an owner question regarding whether the Assessor’s Office reassesses houses on an annual basis. Mr. Nault replied that it does not, further stating that they are required to review one-third of the County’s properties each year, and they value land primarily, not houses. He also stated that the 10% rate starts only when a final occupancy permit is issued, not before. Further, the 10% rate may or may not be reflected on the next annual statement, as it is dependent upon when the completion occurred within the annual cycle, which ends around January or February.

Mr. Baker being in the appraisal business, stated that the only way to win an appeal is if the property is not being assessed consistent with other like properties in one’s neighborhood. He also stated that he has reviewed the valuations in the Parker Strip area, and he believes that everyone is being fairly assessed. He also stated that everyone should be getting assessed about 80% of fair market value, and that we are way below that, so we’re still getting away with fewer taxes.

Mr. Nault concluded by reminding us that Tribal members do not have to pay taxes, but they still use the County’s services, so this puts more of a tax burden on the remaining taxpayers.

Cliff Edey having been the District 2 Supervisor for eight years stated that he is in office for another four years. He discussed HCR 2048, which is in the House of Representatives and the Senate, and is similar to California’s Prop. 13. It calls for a 3%-per-year maximum tax increase, and it has a loophole clause that excludes the limitation for remodels or upon sale of the property. He also stated that the County is losing tax revenues on BLM-leased land, specifically Fox’s, Redrock, Havasu Springs and Blue Water Lagoon, as they were given a ruling of Tribal exemption.

Mr. Edey encouraged interested persons to Google ALIS Today for the Arizona State Legislature calendar to communicate with legislators on pertinent issues.

Mr. Edey updated us on the Highway 95 widening project, which will give us five traffic lanes from Safeway to the north, with traffic signals at Airport Drive and at Casino Drive. He stated that the project was delayed in the bidding process. He also stated that 95 will be improved at the Holiday Harbour area, including center turn lanes, shoulders and improved drainage. Also, the final engineering phase is in progress for the reconstruction of Business 95 from Clearman’s to Buckskin, addressing drainage problems, shoulders, clean up and realignment to improve visibility on some of the curves.

Mr. Edey answered an owner question about the leased-land tax issue by stating that the County appealed the court’s decision and lost, and all leased land ultimately had to be treated equally, so the County lost the tax revenue.

There was an owner question about the proposed Walmart, and Mr. Edey stated that all parties are ready to do the deal, but he thinks that CRIT may ask too much at the 11th hour, as has happened before, causing the deal to fall through.

Mr. Edey stated that Bouse and Ehrenberg were not in his District three years ago, but they are now and that his job used to be a part-time job, but it is now a busy full-time job.

There was an owner question about the stop sign at the public boat ramp. Mr. Edey stated that he opposed the stop sign and fought it. Engineers argued that it was a line-of-sight liability issue. He would like to at least have the sign moved back so that traffic on the boat ramp is not blocked.

Mr. Edey also hopes to see the speed limit increase to 30 or 35 MPH on Business 95 once the Phase II sewer project, and the simultaneous road reconstruction, is complete. He hopes that Phases II and III will start next year, and he said they will be easier than Phase I.

Mr. Edey addressed an owner question about a snowbird tax by stating that he has tried to get a bill through for a $.25-per-night bed tax. If HCR 2048 goes through, the County coffers will suffer, and La Paz County is already lean. Mr. Edey said that he doesn’t even have a secretary. He also stated that revenues are not increasing, but the need for services is increasing. He said he would go back to bat for the bed tax if HCR 2048 passes.

Mr. Baker reported that the Association has no owner delinquencies at this time (a delinquency being defined as an owner owing more than $300).

The structure of the Association calls for an annual meeting of owners once a year, who elect the Board of Directors for the upcoming year. The Board of Directors then elects officers for the upcoming year at its next Board meeting. The Board is governed by the CC&R’s and the Bylaws. Monthly Board meetings are held the first Monday of each month at Buckskin Fire Dept. at 6 p.m., and the public is welcome. Mr. Baker explained Ms. Thomson’s duties as bookkeeper, recording secretary and business manager. The Association has a new General Manager, John Currie, who is a new homeowner in the Keys. The Association also contracts with a gardener who maintains the lawn and front entrance/common areas.

These are three parcels (common areas), which the Association owns and maintains. The roads within the gate are private, and if they weren’t owned privately, we wouldn’t be able to have a gate. Mr. Edey stated that since 1979, the County could not have taken the roads back if wanted to.

Mr. Churchill is the Association’s legal counsel, and he attends Board meetings to render legal advice.

Mr. Baker reported that the bridges are in good repair, and that we are on a 10-year plan to maintain the roads.

Mr. Baker reminded everyone that Board members are not compensated.

Mr. Baker opened nominations for the Board of Directors, and Mr. Maxwell nominated Dave Johnson (lot 74) to the Board to fill the vacancy created by Tonya McPherson’s resignation. A motion was made to retain the current board of directors, with the addition of Mr. Johnson. The motion was seconded, and the motion carried.

The following were elected as Board members for the coming year:

Chuck Baker
Chris Chambers
Joe Price
Bob Stroud
Bill Risen
Gary Svider
Joe Maxwell
Trish Wikoff
Jack Sweeney
Dave Johnson

• The adoption of Rules & Fines and an appeal process at last June’s general membership meeting. Mr. Baker explained the formation of a Protest Committee, consisting of two board members and two non-board members to review protested citations.
• The installation of cameras and tape recording of all activity at the gates, with a notation that several perpetrators have been caught on tape. It was noted that owners should be aware that the tape after eight days, so incidents should be promptly reported to management.
• Mr. Sweeney was thanked for his efforts in obtaining and installing the new gate card reader, with new secure gate cards.
• A work session was held to formulate job descriptions for the gardener and the Association’s General Manager.
• Parking violations are down thanks to all the white line citations that have been issued.
• The 18’ height limitation issues have been resolved.
• Richard DiNolfi resigned as General Manager last April, and the Association hired Joanne Hugaert on May 5, and she was terminated in February. Mr. Currie applied for the position and was approved by the Board on March 7.
• The cracks in the streets were recently filled.
• Many letters were sent out to owners recently to clean up their lots.
• The oleanders underwent major trimming, and the gardener was enlisted to do a major clean up of dead leaves and trash under the shrubbery and the areas by the road, the mailboxes and behind the dumpsters.
• The mailbox area was recently quitclaimed to the Association, so it now officially belongs to us. This is in addition to the three common-area parcels mentioned previously. We have been working on getting the launch ramp quitclaimed to us, and that should happen soon.
• The website has been updated with new information on a monthly basis, and Minutes are posted as soon as they are approved; Special Notices are current.
• Letters regarding drainage problems as a result of Kenko’s work on the streets have been collected for review in preparation of a decision as to priority projects. Those affected who have not already presented a letter to the Board should do so soon.
• Rental properties have been identified, and renters are our biggest problem. A few security deposits have been collected, and attempts are being made to collect the remainder of them.
• Vehicle identification stickers have been distributed, and visitor passes are being fabricated for distribution in the next few weeks.
• Loud noise, intoxicated minors on golf carts, with no cooperation from their parents, dumpster abuse, parking on neighbors’ properties, blocking neighbor’s driveways are all major ongoing nuisance issues.

• Entrance redesign
• Renter’s and owner’s issues
• Enforcing CC&R’s
• Mr. Currie to police; owners are encouraged to help police
• Continue guard service at gate and street patrol on holiday weekends. Don’t be shy about calling 911 to request the Sheriff come out for excessive noise. They will do something if they have to be called out more than once.
• No requests at this time to establish any new Rules & Fines.

Dusty Gravatt (lot 187) asked if there are plans to make the boat ramp useable. Mr. Baker stated that there are no such plans in the works, other than possibly try to keep slime off the ramp. Mr. Gravatt stated that you can’t even turn around on the south ramp, and Mr. Baker replied that the street is only so wide, and there’s nothing that can be done to widen it.

There was an owner question about whether or not the access issue has been resolved with the adjacent property owner on the hill. Mr. Baker explained that we are looking into a possible access easement in the area of the mailboxes and the boulders. Legal counsel is researching whether or not we have to give the landlocked parcel an access easement, what our options are, and if we can impose limitations on an easement. Mr. Churchill will negotiate with the property owner once research is complete.

Mr. Baker explained that the Vista Del Monumento Acres’ owners are not part of the Association, but we do provide them with access, and some of the owners pay for the use of the dumpsters, but they do not have to comply with the CC&R’s.

Mr. Lyons (lot 67) asked if cameras will be installed at the dumpsters, and Mr. Baker replied that we hope to do so this year. Mr. Lyons also asked if owners can approach other owners about noise before calling 911, and Mr. Baker stated that owners should first try to resolve noise issues between themselves.

An owner expressed concern because boaters are not following the no-wake rule. It was noted that Parasail Rick speeds through the canals. Mr. Chambers responded by giving out the Boating Safety telephone number, 667-2281, and encouraging witnesses to report boating violations, and they will be taken care of. It’s about a $200 fine for the first offense. Witnesses calling in a complaint need to identify the boat with its call numbers.

Mr. Lyons (lot 67) asked about loud boats in the canals and decibel metering. Mr. Edey replied that decibel metering can be used on federal waters, and if ticketed multiple times, it will be more than just a ticket. Squeak stated that he is aware of an incident where the boat was impounded on the third ticket. Mr. Edey stated that there’s always the chance of getting cited for open container as well. He stated that noise is mainly checked on the river, not in the canals. Mr. Baker explained that the Association owns to the center of the canals, as an easement by the Feds, and that the canals are bootlegged. They are unique in that there is no other similar situation on the river, and no amendments can ever be made to their regulation.

Mr. Lyons also asked about the possibility of another opening in the common parking lot, as there is no organization, and one often gets stuck in the middle with no way out. Mr. Baker replied that the Association has kind of left that matter alone, because it doesn’t want to further police it.

There was a complaint about motorized scooters speeding at night, and Mr. Baker encouraged such incidents to be reported to us.

The meeting adjourned at 10:45 a.m. to a barbeque lunch.

Submitted by Sue Thomson, Recording Secretary