Board of Directors
Regular Meeting
MARCH 6, 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, Bob Stroud, Joe Maxwell, Larry St. George, Richard Jaschke

Vice President: Chuck Baker

Guests: Barbara Risen (lot 184)
Bookkeeper/Recording Secretary: Sue Thomson
General Manager: Ken Woodhouse
Legal Counsel: John C. Churchill

Mr. Price made a motion to approve the Minutes of the regular meeting held on February 6, 2006. The motion was seconded. Mr. Svider asked for an interpretation of language in the Minutes concerning his ‘yes’ vote to propose a change to the CC&R’s, and Ms. Thomson clarified the language as stating such. There being no further discussion, the motion carried.

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

Mr. Stroud made a motion to approve the February Profit & Loss Statement. The motion was seconded, and the motion carried.

Ms. Thomson reported that R&B Security submitted its final bill, and they have been paid for December and prorated weekends in January.

She has met with Ken Woodhouse and has given him the necessary documents for his General Manager duties.

Financials have been sent to our CPA for preparation of 2005 income tax returns. Ms. Thomson has been working on getting the Annual Meeting documents ready for distribution to homeowners, and the notices were mailed today. Budget and proposed capital improvements will be handed out at the meeting, as will the ballot. Annual meeting minutes for this year’s meeting will be distributed to homeowners in July, as opposed to waiting until the following year’s annual meeting notices are sent.

A Claim of Lien has been filed on lot 10, and another $500 fine for noncompliance with a weed removal request in January has been assessed on lot 10. The owner of lot 204 has been billed for his accidental damage to the gate. Homeowners with delinquent dues, fines and towing assessments were reported.

Ms. Thomson stated that she has located a source for weatherized vehicle/trailer stickers. These stickers can be produced one lot at a time, without having to run the entire 250+ lot batch.

A motion was made to authorize the purchase of the weatherized vehicle stickers to use as a back-up product if a homeowner requests replacement stickers, and we are temporarily are out of stock of the standard silver-foil stickers for their lot. The motion was seconded, and the motion was carried.

A motion was made to approve the prepaid bills and bills for approval. The motion was seconded. Mr. Price asked what can be done with homeowners who don’t pay their fines. Mr. Svider asked what can be done with the rental property owners who do not pay their rental security deposits. Mr. Churchill replied that a lien can be filed against the homeowners’ properties in both cases. Attorney’s fees accrue on the lien; however, the Association risks absorbing its own attorney’s fees if a judge rules against the lien. There being no further discussion, the motion carried.

Mr. Price made a motion that liens be filed on homeowners who are delinquent in remitting the rental security deposits. Mr. Sweeney seconded the motion, and the motion carried.

Mr. Price made a motion that Mr. Churchill send letters to the homeowners who have delinquent fines and towing charges, said letters to include a copy of the lien that is to be filed precedent to foreclosure proceedings. The motion was seconded, and the motion carried.

Ken Woodhouse, the new General Manager, was introduced to the board members who were not present at the workshop last month. The Board was previously supplied with the outgoing General Manager’s final written report.

Mr. Woodhouse reported that the cover to the display board by the gate was ripped off, and the hinges damaged. He reported that the parking situation for Mrs. Berns, lot 27, whose house has been undergoing construction, should be resolved tomorrow, as the contractor will be finished tomorrow. Mrs. Berns has had to use the common parking lot for a period in excess of seven days due to the construction and temporary lack of parking on her property. Mr. Sweeney stated this is a special circumstance, and Mr. Churchill concurred that this is a special-needs situation.

Mr. Stroud reminded everyone that the parking lot rules also mandate a 14-day-per-month maximum parking allowance. One cannot just move the vehicle or trailer every seven days for an unlimited amount of time. One can move the vehicle or trailer to another spot after seven days, provided it’s not parked in the lot in excess of 14 days within a 30-day period.

Mr. Svider, being previously authorized to attempt to get an insurance quote from the Farm Bureau, reported that the Farm Bureau does not want to get involved with covering homeowners’ associations. Mr. Svider was authorized to get a quote from La Paz Insurance Agency.

Mr. Sweeney stated he would provide Ms. Thomson with a breakdown of the sinkhole repairs the Association has cause to believe are attributable to the sewer project, so a letter can be written to Buckskin Sanitary District requesting reimbursement of those specific sinkhole repairs.

Ms. Thomson stated she received from Mr. Churchill’s office a draft easement agreement for the owner of lot 112 to sign concerning the owner’s agreement to maintain the 4” drain line installed on his property to drain water runoff from the street. Ms. Thomson asked Mr. Woodhouse to obtain the information needed to fill in the blanks prior to it being sent to the homeowner.

Mr. Sweeney asked that a weed letter be sent to lot 198.

Mr. Risen reported that the motor home that is frequently parked on Moovalya Drive has its slide out over the white line, in addition to power and water lines being connected to it. It was reported earlier by Mr. Currie that he has not seen anyone sleeping in the RV, so he has not detected any violation of the rules. Mr. Churchill was asked what the options are on the matter, and he replied that we would have to prove a violation before a fine can be assessed. There was also a report of a pontoon boat parked over the white line at the end of Hopi Drive.

Mr. Price made a motion that everyone who is “storing” vehicles, boats and motor homes—storage being defined as more than 72 hours in the space between the owner’s property line and the white line, known as ‘common area’—either be towed or fined. Mr. Churchill stated that there is no specific fine for “storing” in the common area over and above the 72 hours. He stated that the owner’s front property line is in line with the water meter box. Mr. Churchill read the 2004 Parking Memo which was previously distributed to homeowners.

Mr. Risen suggested a 30-day notice be given to all owners who have property stored in the common area on the streets in excess of 72 hours, and Mr. Woodhouse is to give Ms. Thomson a detailed list of locations and license numbers so letters can be sent. If the owner of the Moovalya Drive motor home has his slide out extending beyond the white line, he should receive a violation for that. Mr. Risen concluded by stating that if you tow one, you need to treat all perpetrators the same.

A letter was sent to the owner of lot 145 on Yaqui Loop that their trailer tongue needs to be moved back to the property line.

Mr. Sweeney suggested that Mr. Woodhouse ‘red tag’ violators of common area parking regulations.

Mr. Svider asked what is needed to get moving on a resolution of the flooding problem at Mr. Stroud’s property, lot 202. Mr. Chambers made a motion to move the lot 202 flooding problem back to a committee, with the General Manager being a committee member, to resolve the issue. Mr. Svider seconded the motion. The motion carried with a 4/3 vote. Mr. Sweeney stated that Mr. Stroud should be on the committee, and drainage should encompass his driveway. Gary Svider, Chris Chambers and Ken Woodhouse were appointed to the committee.

Mr. Chambers renewed his desire to get a motion approved so that an increase in the maximum building height can be presented to the members at the upcoming annual meeting. He stated that if it could not be presented at this annual meeting, it would not have another opportunity until next year’s annual meeting, pursuant to the CC&R’s. Mr. Churchill confirmed that the Board has to approve any proposed change to the CC&R’s, and Mr. Chambers needs to convince the Board there’s interest, and then the proposal can go before the members. Mr. Churchill advised that changing rules is different from changing CC&R’s. Mr. Sweeney suggested that the Board could draft rule changes after general membership interest is shown.

Mr. Chambers made a motion that a proposal go before the general membership at this year’s annual meeting increasing the current, maximum building height of 18” to 23’, to allow for two-story structures, with a minimum 10’ front setback requirement and a minimum 800 square foot garage be constructed on the property. Mr. Churchill said that the matter must go to the members at an annual meeting, and that the Board doesn’t have the power to make this change. Mr. Sweeney stated that all the rules and regulations that go along with the requested height increase should be looked at. Mr. Chambers stated that he wanted the matter to go before the members at this year’s annual meeting. Mr. Churchill therefore proposed that should Mr. Chambers’ motion be approved by a majority of the Board, an amendment be proffered to the members at the annual meeting, said proposal to comply with the requirements of section 15.1 of the CC&R’s which state in part, “…Amendments may be adopted at a duly noticed annual meeting of the Members which notice specifically sets forth the contemplated amendment upon the approval thereof of two-thirds of all of the Members present at such meeting [including those who have designated proxies] or without any meeting if all Members have been duly notified and if two-thirds of all of the responding Members consent in writing to such amendment….” Mr. Svider seconded the motion, and the motion carried with a 6/3 vote.

Mr. Churchill stated that the matter has to be properly noticed to the general membership, and a review of the CC&R’s will be made tomorrow so that Ms. Thomson can generate and mail the necessary documents.

There was no new business.

The meeting adjourned at 7:15 p.m.

Submitted by Recording Secretary, Sue Thomson