Board of Directors
Regular Meeting
JANUARY 9, 2006

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
Secretary/Treasurer: Chris Chambers
Board Members: Jack Sweeney, Gary Svider, Squeak, Joe Price, Larry St. George, Bob Stroud, Joe Maxwell and Richard Jaschke

Vice President: Chuck Baker

Guests: Gary & Laura Schmitt (lot 185); Barbara Risen (lot 184); Sheryle Jaschke (lot 171)
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: John Currie
Legal Counsel: John C. Churchill (6:15 p.m.)

Mr. Schmitt introduced himself and stated that he and his wife were here to observe the meeting.

Squeak made a motion to approve the Minutes of the regular meeting held on December 5, 2005. The motion was seconded, and the motion carried.

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

Squeak had a question about the year-to-date entry for gate openers on the Profit & Loss Statement, and Ms. Thomson answered his question. Mr. Sweeney made a motion to approve the December Profit & Loss Statement. The motion was seconded, and the motion carried.

Squeak made a motion to approve the accounts payable. The motion was seconded, and the motion carried.

Ms. Thomson reported that the majority of vehicle stickers in stock were distributed to homeowners with the quarterly dues' statements, and that if the Association decides that all vehicles and trailers parked in the common lot bear an official sticker, then we will need to order another type of non-consecutively numbered sticker so that an entire batch does not have to be run at one time. Otherwise, the cost would be prohibitive. Ms. Thomson will investigate other sticker options.

There are still lingering problems in getting documents posted on the website, but Ms. Thomson was assured there would be no further posting delays.

Reimbursement was received from the party who recently damaged the entrance gate, and adjustments were recently made to the exit gate mechanism.

Delinquent letters were sent to the owners of lot 10 and lot 146, and late fees were billed on 13 accounts.

Ms. Thomson discussed the proposed classified ad and General Manager Job Description in search of Mr. Currie's replacement. Mr. Risen authorized Ms. Thomson to place the ad in the Parker Pioneer.

Ms. Thomson proposed that this year's Annual Meeting be set for Saturday, April 15, 2006, as Easter is on April 16. Mr. Risen approved the date and he suggested that, because Ms. Thomson does not have the time this year to prepare for a lunch meeting, the meeting be held at the Board of Supervisors' meeting room in downtown Parker. It was also suggested that the meeting be scheduled at the Boat House, but Mr. Risen stated that the room would most likely not be available to us. Ms. Thomson will check on both options.

Mr. Currie made a verbal correction to his report, stating that Ms. Thomson was not at the meeting held with R&B Security on December 22. He reported that R&B Security will be cutting back on their service until spring, and they will bill us accordingly. Mr. Currie reminded Mr. Poolaw at that meeting that his reports need to be timely submitted. Mr. Currie has not received any reports since the meeting.

As previously discussed, the entrance gate has been repaired.

The street grate at lot 112 has yet to be installed, and Mr. Currie states he is having trouble getting Stanton Construction to return his calls. Mr. Sweeney stated he would try to reach Steve Stanton.

Mr. Currie received and circulated a plan from new owner Dennis Smith (lot 214) for proposed construction of a wrought-iron fence in his front yard. Mr. Smith also continues to voice his concerns about the two unsightly properties on Yaqui Loop, across the canal from him, stating that the condition of these properties is diminishing his property value.

Mr. Currie reported that the exit gate was damaged recently by new owner Jimmy Lucero (lot 204), which incident was witnessed by Mr. Chambers as a legitimate accident due to Mr. Lucero's inattention while waiting for the gate to open. Mr. Currie arrived at the scene to collect Mr. Lucero's insurance information. Mr. Currie has a quote for a new gate from Advanced Gate for $1,950, and the gate will take two weeks to manufacture once the Board approves the quote. Mr. Chambers suggested that a large reflective "STOP" sign be posted on the exit gate. Mr. Risen stated that the final cost of the repair wouldn't be ascertained until the controller is tested, once the new gate is installed. Mr. Risen asked Mr. Currie to contact Mr. Lucero's insurance company and let them know that we have a preliminary amount for the repair, but that we cannot settle the final amount until the controller is tested. Mr. Currie was instructed to authorize Advanced Gate to proceed with the job.

Mr. Svider inquired about the status of the title policy on the street (Navajo Lane). It was reported that the title company is working on it, but they are behind in their workload.

Mr. Svider inquired about the matter of closing access to the Brooke Water property near the north boat ramp. Mr. Risen inquired if we could split the cost with the water company, and prevent people going in and out of the area (by the water tank). Mr. Risen said he would ask Mr. Churchill about ongoing negotiations with Brooke Water when he returns to the room, after stepping out for a minute with Mr. Sweeney.

Mr. Svider also inquired about the status of the lien preparation on lot 10, as well as the status of the collection of unpaid rental security deposits. The matter was tabled until Mr. Churchill's return.

Mr. Svider requested the Board revisit the matter of establishing policy on replacement gate openers, and he also requested an update on the irrigation drip system. Squeak stated that he will ask Mike Roberts about the drip system.

Mr. Svider asked if the Board is going to attempt to recuperate from Buckskin Sanitary District the cost of the sinkhole repairs.

Mr. Chambers brought up his $100 towing fee protest, and he requested that the Traffic Committee review his protest. Mr. Risen stated that Al Moroff, a member of the Committee, is not present and that committee members Gary Svider, Al Moroff and Squeak schedule a Committee meeting to discuss Mr. Chambers' protest and make a recommendation to the Board. Ms. Thomson is to get the information to Squeak prior to the Committee meeting.

Mr. Chambers again suggested that the Board consider converting a portion of the common parking lot to a basketball/tennis court. Mr. Chambers is to obtain an estimate and present it at the next meeting.

Mr. Risen reported that the Police Explorers assembled all the vehicle stickers and homeowner packets, and that a donation for their efforts would be appropriate. Mr. Chambers made a motion that the Association donate $40 to the Police Explorers. The motion was seconded, and the motion carried.

Mr. Svider reported that he experimented with an alternatively produced sticker, via the current sticker, and it did not succeed. Ms. Thomson stated that the sticker style we use is not supposed to be easily reproduced.

Mr. Churchill having returned to the room, he reported that the final letter to Robert Willoughby, lot 10, prior to filing a lien, is being drafted by his paralegal.

Mr. Sweeney having returned to the room with Mr. Churchill, he understood that we were not going to pursue collection for sinkhole repair expenses from Buckskin Sanitary District. If that's what the Board decides to do, then he will have to separate the sinkholes that Earthscape did on the majority of the initial work. Some were connections to laterals. Three were actual lateral installations; the rest were 2-3' lines to connect to the existing lateral for the homeowner. Mr. Churchill inquired as to how you would prove it was work done by contractors hired by homeowners versus contractors hired by Kenko. Mr. Price stated that Buckskin Sanitary District has information on the contractors doing the work. Mr. Stroud reported that some of the recent Stanton repairs are lower in elevation than before the repairs; there are a couple on his street. Mr. Sweeney said that someone approached him about a dip in one of the new repairs. Mr. Sweeney said he would check it out.

Concerning access near the north ramp to the water tanks, Mr. Churchill stated he is in negotiations with the water company. They have ignored our request to contact us. He further stated that although we use it without restriction, but we don't own it, so it would be difficult to fence it. He also stated he received a survey description, so we can propose they sign a quitclaim deed before we file suit. We're not incurring any expense on the matter. If we continue to use it, we continue to have a right to claim use. Mr. Stroud pointed out that if an incident occurs, it's not our property. Mr. Sweeney suggested that we table the matter for now, and that we continue to use it, which will strengthen our case in the future.

Mr. Churchill stated that in regard to the delinquent rental security deposits, a follow up letter is going out to those landlords that will clarify the Association's position on the matter. The next step would be to file a lien; and, if authorized, start foreclosure.

Mr. Risen opened discussion about our gate opener replacement policy. Mr. Sweeney made a motion that the Association provide only an unconditional 30-day warranty from date of sale on all gate openers, no exceptions. Squeak seconded the motion. There being no discussion, the motion carried, with the exception of Mr. Svider opposing and Mr. Maxwell abstaining.

There was a discussion about replacement policy on gate cards. Mr. Risen asked Mr. Sweeney to explain how the cards and card reader work. Mr. Sweeney said the cards are coded, so if they are damaged, they may not work. Also, if the power is turned off on the card reader and the battery back-up stops working after approximately six hours, we could have a catastrophic loss of all card codes. He suggested that cards with physical damage not be warrantied. Otherwise, inoperable cards with no apparent physical damage should be replaced at no charge.

Mr. Sweeney presented plans submitted by Dave Oddo (lot 226). No construction deposit was given, and the building is to be constructed at some point in time. Mr. Sweeney suggested that we table the matter until such time as the plans are clarified and a deposit received.

Mr. Sweeney presented fence plans submitted by Dennis Smith (lot 214) which is for a wrought-iron fenced dog run along the entire front (street) side of his property. Mr. Sweeney stated the fence/dog run is not appropriate and would be an eyesore. Mr. Sweeney made a motion to disapprove Mr. Smith's lot 214 wrought-iron fence plan. Mr. Risen stated that he spoke with Mr. Smith's next-door neighbor who is unhappy with the plan, stating there is traffic and kids playing that would cause the dogs to bark. Mr. Maxwell seconded the motion. Mr. Svider inquired whether or not the Board can legally disapprove a plan that is within the proper boundary. Mr. Churchill stated he doesn't see anything that can preclude him. Mr. Sweeney stated that CC&R section 11.4 give us disapproval rights. Mr. Svider asked if there is a rule about nuisance and noise. Mr. Churchill stated that his own dog has run of the entire property, and Mr. Sweeney pointed out that if Mr. Smith's dogs are caged in a 6' x 29' area, then the dogs do not have free run of the property. Mr. Churchill stated that he can't find anything in Mr. Smith's proposal that offends the CC&R's. Mr. Sweeney stated he deems the proposed fence unsightly pursuant to section 11.4 of the CC&R's. Mr. Risen called for a vote on Mr. Sweeney's motion to disapprove the plan, suggesting that Mr. Smith propose another method. There being no further discussion, the motion carried unanimously.

Mr. Smith's request to force the two homeowners on Yaqui Loop with the unsightly houses to upgrade was discussed. Mr. Sweeney stated that one of the houses is trashy looking and debris is all that needs to be picked up. Mr. Chambers stated that the other house in question is being re-stuccoed. Mr. Risen stated that the blue one came in as a mobile home, one of the few in the Association. Mr. Sweeney acknowledged that the decking looks rickety. Squeak inquired if it would be appropriate to send a letter to the two homeowners requesting that they upgrade because of complaints. Mr. Risen said that Mr. Smith, who just recently purchased his property, knew that those properties were in that condition when he purchased his property. What Mr. Smith paid for his property was based in part upon the conditions in the neighborhood at that time. Mr. Risen further stated that should these subject properties on Yaqui Loop be eventually improved, and that will occur at some point when the owners are financially able to make repairs and improvements, then Mr. Smith's property value will only increase accordingly. Mr. Sweeney stated that other houses in the Keys have problems too, and he further pointed out that we have been unsuccessful in our attempts to get anywhere with lot 10. Mr. Price stated these problems will eventually fix themselves when people attempt to sell their houses for the best price. Mr. Risen said he can't see the Board getting involved. A motion was made, and carried, to table the Dennis Smith matter of forcing upgrades to the two unsightly houses on Yaqui Loop.

Mr. Chambers asked what is involved in getting the CC&R's amended to increase the building height restriction. Mr. Churchill advised that a 2/3-majority vote of homeowners present at a general membership meeting called for that specific purpose is required to amend the CC&R's.

Mr. Sweeney presented plans submitted by Chuck Baker (lot 116). Mr. Baker has asked the County for a 3.5' variance on an existing, no-eaves, and former 3' setback requirement. Mr. Sweeney made a motion to approve the building plans for Lot 116, as they meet the setback requirements of 10' between lots (116 and 117), extending all the way back (the lots were combined on the Assessor rolls, and they are being re-separated, as Mr. Baker's garage on lot 116 is being demolished, to be replaced by a new, separate residence). Mr. Risen stated he considered going to the variance meeting, but legal counsel said it was not necessary, since it doesn't affect the Association. Mr. Svider said he went to the meeting, and he reported that the County's interpretation of the 20' setback requirement is that they will approve 10' setback variances. There being no further discussion, the motion carried unanimously.

Mr. Svider inquired about the possibility of putting Board members' phone numbers and e-mail addresses on the website. The general consensus was not to do so.

Mr. Svider would like the Board to consider sponsorship for a defibrillator; he would like the matter discussed at the Annual Meeting.

Mr. Svider also proposed the possibility of having an office and clubhouse occupy the grassy area, in lieu of the grassy area.

Mr. Svider also suggested that the Association hold up hiring a replacement General Manager until after the Annual Meeting. Mr. Risen stated that Mr. Currie leaves on February 28, and the Annual Meeting is not until April 16, and a Board member would have to serve as General Manager in the interim. He also reminded Mr. Svider that security is only patrolling on weekends until spring.

Mr. Chambers requested that we agenda for the Annual Meeting a discussion on revising the building height restriction. Mr. Churchill stated such a matter would have to be discussed at a regular Board meeting first, then at a specifically scheduled General Membership meeting.

Barbara Risen noted that Mr. Maeck (lot 249), by the exit gate, often parks his pick up truck in the adjacent common lot with the tailgate down, causing a blockage. Mr. Currie stated that Mr. Maeck is never there with his tailgate down more than 24 hours at a time, but he will speak with him about it.

Squeak stated that he recently acquired property/liability insurance with Farm Bureau, and they cut his premium in half. He would like the Association to get an insurance quote from Farm Bureau. Ms. Thomson will look into it. Mr. Chambers reported that the Keys is not in a floodplain according to FEMA, and the maximum payout by FEMA is currently set at $275,000.

It was noted by Mr. St. George that lot 25 was cleared today of overgrown vegetation.


The meeting adjourned at 7:18 p.m.
Submitted by Recording Secretary, Sue Thomson