Board of Directors
FEBRUARY 6, 2006
CALL TO ORDER
President: Bill Risen
Vice President: Chuck Baker
Secretary/Treasurer: Chris Chambers
Board Members: Jack Sweeney, Gary Svider, Squeak, Joe Price, Bob
Stroud, Joe Maxwell, Richard Jaschke
Board Member: Larry St. George
Guests: Blane Coon (lot 54); Rob Troxler (lot 160); Barbara Risen
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: John Currie
Legal Counsel: John C. Churchill
CALL TO PUBLIC
Mr. Coon and Mr. Troxler indicated they are here to observe the
Mr. Price made a motion to approve the Minutes of the regular
meeting held on January 9, 2006. The motion was seconded, and
the motion carried.
Mr. Price made a motion to approve the January Profit & Loss
Statement. The motion was seconded, and the motion carried.
Mr. Price made a motion to approve the January
Balance Sheet. Mr. Svider inquired whether the sinkhole repairs
were paid from the General Account or the Kenko Account. Ms. Thomson
stated the check was written from the General Account, but she
can transfer funds. Mr. Baker made a motion to transfer funds
from the Kenko Account to the General Account to cover the $10,894.17
sinkhole repair expense. The motion was seconded, and the motion
carried. Mr. Sweeney inquired about the negative accounts receivable,
and Ms. Thomson stated she would check it out and get back to
him. The motion to approve the January Balance Sheet was seconded,
and the motion carried.
Ms. Sweeney made a motion to approve the accounts
payable and bills for approval. The motion was seconded, and the
GENERAL MANAGER'S REPORT
Mr. Currie reported that Mr. Lucero (lot 204) will reimburse the
Association for the new exit gate as a result of damage he caused
on January 6. The new gate is expected to be installed this Wednesday.
R&B Security has been called three times
regarding citations and photographs that need to be submitted,
with no response. Mr. Currie still has not received a photo for
a recent citation issued at lot 196. He also called them this
morning to remind them about the meeting tonight.
Mr. Currie reported that the Sheriff's boathouse
was booked on April 15, but he was able to procure the Board of
Supervisor's meeting room for the Annual Meeting.
Deanna Hutchins (lot 97) called the Sheriff's
Office regarding a claim that we sent a letter about curfew and
golf carts drivers requiring a driver's license. Mr. Currie reported
that he told Ms. Hutchins that was not true, pursuant to his conversation
with Ms. Thomson about her claim.
Mrs. Bern's trailer (lot 27) was towed from
the lot for no sticker. A contractor working for the owner parked
the trailer there.
Ms. Thomson reported that she received a brief log report from
R&B Security for the first two weekends in January, and since
no photo was submitted on the lot 196 violation, no formal citation
was issued. Ms. Thomson is working on the Annual Meeting documents
and the 2006 budget. She stated Mr. Churchill sent follow up "urgent
request" letters on 1/15 to 11 owners who have not paid their
rental security deposits. He also advised the landlords that our
CC&R's restrict rentals to single families.
Delinquent dues' letters were sent to lot
45, 70, 93 and 163.
Mr. Sweeney reported that rentals were up
this past weekend because of the races. There were a lot vehicles
parked over the line on Apache that were blocking traffic. Mr.
Currie stated that he called R&B Security about this, and
Mr. Currie contacted three people who were parked over the line.
Mr. Churchill reminded the Board of the requirement
to do its bi-annual audit of the Association's books. Also, a
new law requires HOA's to do an annual audit, which does not have
to be done by a CPA. Ms. Thomson stated that she has had difficulty
finding a CPA in the area who will do an audit. It was suggested
that Parker Accounting be contacted for the annual non-CPA audit
pursuant to the new law. Mr. Chambers suggested that Porter &
Porter in Bullhead City be contacted about the bi-annual CPA audit.
Ms. Thomson reported that a final demand letter
to lot 10 was sent by Mr. Churchill's office on 2/2/06.
Squeak was asked about the status of Mr. Chambers'
towing protest. Squeak reported that a Traffic Committee meeting
was not set up, as he believed the matter should be discussed
by the Board, since there is no established procedure for towing
protests, and the tow was done several months ago beyond the citation
protest period anyway. The Board decided to proceed immediately
with the matter. Mr. Chambers presented his case by stating that
he parked his trailer in the 7-day lot on Friday of Memorial weekend,
the first weekend towing was initiated. He said he didn't think
it would be towed if there was no ID tag, and he didn't expect
it to be towed or cited. Mr. Risen asked Mr. Currie how long before
Memorial weekend were the temporary signs put up, and Mr. Currie
replied a few weeks. Mr. Chambers stated he added the language
"or you will be towed" after "all vehicles and
trailers must have lot ID" onto the temporary signs, two
days after he was towed. Rebuttal to Mr. Chambers' presentation
included comments that a similar protest was brought before the
Small Claims Court, and the judge ruled in favor of the Association.
Proof was shown that proper notices were sent to homeowners in
advance. In addition, Robbie of A Toe Truck was at the May Board
meeting, in which Mr. Chambers was present, where upcoming towing
procedures were discussed. Mr. Risen called for a vote on whether
or not to uphold the validity of the towing of Mr. Chambers' trailer,
and the Board unanimously voted to uphold the towing.
Ms. Thomson stated that she has not yet had
time to investigate new sources for mass-production ID stickers
that do not have to be produced by the consecutively numbered
Mr. Risen mentioned a wandering truck in the
parking lot that is being moved every 7 days. He reminded us that
the lot rules also include a maximum 14-day-per-month parking
restriction. Mr. Currie stated the vehicle is the cleaning lady
for lot 249, and he will tell her to get a sticker from the owner
and also that she should not block the drive.
Ms. Thomson stated that a resumé is
forthcoming from a Tina Rose for the General Manager's position.
Mr. Maxwell stated that he is interested in the position, and
Mr. Risen told him he needed to submit his paperwork. Mr. Baker
advised that we need to review the General Manager's job description.
Mr. Svider stated he is seeking an insurance quote from the Farm
Bureau for Keys II, and Ms. Thomson gave Squeak a copy of our
policies pursuant to his request last month. Because Squeak will
be out of town, the copies were given to Mr. Svider, and he will
pursue the quote for us.
Mr. Svider requested that we put on the annual
meeting agenda the possibility of putting in a clubhouse, with
a kitchen, which we could rent out for functions, on either the
parking lot or the grass area. Mr. Price stated there might be
a zoning problem. Mr. Baker reported that he brought up this matter
before, and it was voted down. He stated that the matter could
be brought up at the annual meeting as a concept, along with the
concept of putting in a basketball/tennis court in the parking
Mr. Chambers is also interested in putting
on the annual meeting agenda a proposal to increase the building
height regulation to accommodate two-story houses. He stated that
La Paz County will allow a 35' residential structure height. He
also believes that a two-story structure will allow an 800 square
foot garage to be built, generating more available parking. This
would also increase property values. Mr. Sweeney replied that
there are already two-story structures in the Keys, that are built
3-5' below street level, and they comply with the current height
restriction. Mr. Sweeney stated that his own two-story house is
1' above 100-year flood level (368' above sea level). The current
requirement is 369' above sea level, and he's about 6" above
that. Mr. Chambers also stated that a two-story house would not
be blocking any views, because the houses are already sandwiched
in. Mr. Churchill reported that when attempting to change CC&R's
regarding building height in the past, there was a near riot,
and a compromise was reached. The compromise was that two levels
would be allowed, but not two stories, and the height limit was
set at 18'. He also advised that the Board would need to approve
any proposed changes to the CC&R's before being put to the
homeowners for a general membership vote. A show of hands regarding
the Board's desire to change the building height restrictions
resulted in all but Mr. Svider against a change.
Mr. Sweeney reported that new construction
on one of the Vista del Monumento lots is at a height of 19',
and people are up in arms about the loft/view deck at the top
of the structure. Vista del Monumento properties are not subject
to our CC&R's.
Regarding the recent sinkhole repairs, the
Board requested Mr. Sweeney to break down Steve Stanton's invoice
to itemize the sewer-related repairs so that Ms. Thomson can send
a letter to Buckskin Sanitary District requesting reimbursement.
Mr. Churchill stated that he heard Kenko no longer exists, further
stating that a lawyer for Buckskin Sanitary District said Kenko
had project financial troubles and essentially disbanded. He stated
that they had to go after the bonding company in that case.
Mr. Risen presented a proposal from Steve
Stanton Construction to install the drain box and drain line in
front of the Green residence, lot 112 for $1,868.57. He proposes
to do the work at his convenience, when he's in and out of the
Keys on other projects. Mr. Price recommended that we obtain an
agreement with the owner of lot 112, whose drain line we would
tie into for the runoff, requiring the property owner to keep
the line open for continued drainage of street runoff through
his property. Mr. Baker concurred that a maintenance agreement
would be wise so that it would carry to future property owners
if the property were sold. Mr. Baker made a motion that Mr. Churchill
prepare a maintenance agreement with the owner of lot 112 whereby
property owner agrees to provide the Association with continual
use of owner's drain line for street water runoff through the
property. Mr. Price seconded the motion. The motion was carried.
Mr. Price received a faxed copy of the title
policy on the street; he has not received the original copy yet.
Mr. Sweeney presented a revised plan from Dennis Smith, lot 214,
for the construction of a 36" high wrought-iron fence, which
he proposes to construct over his existing retaining wall. The
top of the proposed fence would be about 3.5' high from street
level. Mr. Price stated there is a 36" height requirement.
Mr. Chambers stated there are gates at 5' high at the side yards,
and there are many of those around, and he wondered if a gate
across a driveway is considered a fence. Mr. Churchill referred
to section 12.2.8 of the CC&R's that says no solid wall over
2.5' high is allowed, taking into account street level. He stated
that if the fence is not a solid fence, then it is probably okay,
as the idea was to be able to see through the fence. Mr. Sweeney
made a motion to approve Dennis Smith's resubmitted fence plan
for lot 214. The motion was seconded. There being no further discussion,
the motion was approved, with Mr. Price opposing the motion.
Mr. Sweeney presented a construction plan
from David Smisek, lot 90, for the construction of an enclosure
to his upper, existing deck. Upon review of the plan, Mr. Sweeney
made a motion to approve David Smisek's plan to enclose his upper,
existing deck on lot 90. The motion was seconded, and the motion
Mr. Jaschke presented a panoramic photo of
three lots on Riverside Drive that need clean up on the canal
edge. Overgrown vegetation letters will be sent to the owners
of lots 225, 226 and 228.
Mr. Baker opened discussion on our security/general
manager needs. Mr. Price made a motion that we terminate R&B
Security effective immediately. Mr. Baker seconded the motion.
There was discussion about the cost of the monthly service, the
absence of security personnel at board meetings, the lack of photos,
reports not timely submitted, as well as the poor service over
the recent race weekend where several vehicles were reported over
the line, without any reports or citations being presented by
R&B to the Association. There being no further discussion,
the motion was unanimously carried. Ms. Thomson was instructed
to send the termination letter to R&B Security.
Mr. Baker suggested a work session be scheduled
this month to determine how the General Manager should be involved
in security, now that we have terminated the security service.
We need extra patrolling on summer weekends and major holidays.
It was decided that the work session be set for Tuesday, 2/21
at 6 p.m. in this room to discuss the General Manager's duties.
Prospective applicants for the General Manager's position will
be interviewed at 7 p.m. following the work session.
Mr. Churchill advised of a new law that went
into effect on 1/5/06 wherein the Supreme Court will look to the
intent of CC&R's. Meaning if CC&R's don't specifically
state their intent on a matter, the court will uphold the matter
if the intent was clearly implied in the CC&R's; i.e., the
matter does not have to be specific to be valid.
The meeting adjourned at 7:25 p.m.
Submitted by Recording Secretary, Sue Thomson
APPROVED BY BOARD OF DIRECTORS MARCH