LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
JUNE 5, 2006

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.

PRESENT
President: Bill Risen
Vice President: Chuck Baker
Secretary/Treasurer: Chris Chambers
Board Members: Joe Price, Jack Sweeney, Gary Svider, William (Squeak) Kossnar, Bob Stroud, Joe Maxwell, Larry St. George and Richard Jaschke

ABSENT

OTHERS PRESENT
Guests: Dan Hernon (NPG Cable), Rick Buckelew (lot 141), Rob Troxler (lot 160), Barbara Risen (lot 184), Sheryle Jaschke (lot 171)
General Manager: Cheryl Shockley
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill (6:10 p.m.)

CALL TO PUBLIC
Mr. Troxler said he was here to observe. Mr. Buckelew is here regarding NPG Cable issues, specifically NPG’s requirement of a $1,220 repair fee to fix his cable line. Mr. Hernon stated there was damage done to the cable when the sewers were installed. There is another customer on Yaqui Loop that is facing the same repair cost if he wants service. NPG Cable is willing to work with the Association in seeking a solution, but because contractors hooking up lateral sewer lines to homes damaged lateral cable lines, NPG is not responsible for the cost of the repairs.

Mr. Sweeney stated that Mr. Buckelew’s problem originates from a break in the cable under his neighbor’s (to the north) concrete driveway, where the cable signal is lost, according to the trace that was done. Mr. Hernon stated that a “signal leak” could be 5-10’ in either direction of the break and that a more defined trace is needed to pinpoint the exact location. He stated the problem arose when the cable was nicked, then covered up with dirt, and eventually the dirt ate away at the cable. NPG does not charge the owner with repair costs if they are called out before the nicked cable is covered with dirt. He also stated that NPG recently spent about $3,000 in repairs to their main cable line within the Keys.

Mr. Baker asked Mr. Hernon how many more problems like Mr. Buckelew’s there are in the Keys, and Mr. Hernon replied there are several, and they are finding them as they occur. Nicks in the conduit, which allow dirt to enter, eventually deteriorate the cable. Mr. Svider reported that Keys II had a similar problem with the main cable line, and 140’ of line under the street was bored and repaired. Mr. Hernon reported that in Mr. Buckelew’s situation, the damage is in the “drop”, not the main line, and again that the damaged line was covered with dirt and eventually deteriorated. Mr. Hernon reported there have been 14 locations in the Keys already repaired (6 drops, and 8 on the main line). He stated that the cable lines follow the same orderly path as the other utility lines, so they pretty much stay together.

Mr. Hernon is open for suggestions, but it is a little unreasonable for NPG to absorb these $1,200-$1,300 repairs for each drop, but he will be flexible. Mr. Baker stated that the Association does not have the funds for these repairs. Mr. Sweeney again stated that in the trace he saw, Mr. Buckelew’s problem is in his neighbor’s driveway, and the signal was lost at the new concrete where the septic tank was abandoned, 3’ off the garage door on the neighbor’s property. Mr. Baker stated that the cause of the incident needs to be determined. Mr. Hernon stated that blue stake is a law, and the homeowner must hand dig in areas where there are utility lines. Mr. Chambers stated there are lots of abandoned utility lines in the Keys, and Mr. Stroud stated that some of the blue stakes are off the mark.

Mr. Sweeney stated that licensed contractors did 95% of the lateral sewer lines; he can think of only one or two who did the work themselves. Mr. Chambers stated that Earthscape did Mr. Buckelew’s neighbor’s house. Mr. Risen asked if NPG could tie into Mr. Buckelew’s neighbor’s house to the south, and Mr. Hernon replied that he would be afraid that two houses might be out of commission if that neighbor accidentally cut the line. Mr. Risen stated that Mr. Moroff is the other customer on Yaqui who has no cable service, and Mr. Moroff doesn’t want to pay the $1,220 to fix it. Mr. Sweeney asked Mr. Hernon if there is an easement on Mr. Buckelew’s property, and Mr. Hernon stated the easements are usually in the front 10’. Mr. Sweeney reported that Mr. Buckelew’s tenant was with him at the time the NPG technician was doing the trace. Mr. Baker suggested that NPG trace Mr. Moroff’s problem, and further trace Mr. Buckelew’s problem. Mr. Hernon said NPG would send someone out in the next day or two.

MINUTES
A motion was made to approve the Executive Session Minutes of May 1, 2006. The motion was seconded, and the motion carried.

A motion was made to approve the Minutes of the regular meeting of May 1, 2006. Mr. Stroud stated a correction was needed on the first sentence on page 7, to read as follows: “Mr. Stroud reported that a renter crushed his paddleboat, and a renter threw a bottle through the legs of his pool table.” Ms. Thomson will make the change. The motion was seconded and the motion carried.

FINANCIAL REPORTS
A motion was made to approve the May Profit & Loss Statement. The motion was seconded, and the motion carried.

A motion was made to approve the May Balance Sheet. The motion was seconded, and the motion carried.

A motion was made to approve the May Prepaid Bills and Bills for Approval. The motion was seconded, and the motion carried.

GENERAL MANAGER’S REPORT
Ms. Shockley reported three streetlights are out, and APS has been contacted twice to replace the lights. APS was also contacted about the cost to repair or replace the light pole at the south end of the parking lot, and they want $1,200. She also stated that J&S Electric can install a pole that Mike Dyer has for $700, but she doesn’t know what Mike Dyer would charge for the pole. Both APS and J&S said that the damaged pole is not in danger of falling.

Mr. Sweeney made a motion that the Association pay APS $1,200 to replace the damaged light pole at the south end of the parking lot. Mr. Baker seconded the motion, and the motion carried.

Ms. Shockley reported that the Memorial Day weekend was quiet, with no citations being issued, but she did ask a couple of people to move their vehicles. One trailer was towed from the parking lot. She also reported a trailer parked on lot 199 with no sticker. It was parked between the owner’s wall and the white line, on the Navajo Lane side of the property. There was discussion about whether or not the trailer was on the owner’s property or Association property, since the white line comes off the bridge there. Lot 199’s entry is on Navajo, and Mr. Churchill stated that the white line is not the property line. Ms. Shockley reported a similar situation at the end of Moovalya Drive by the ramp, where the white line stops at the last house. Mr. Chambers stated that until we walk it and post it, we can’t do much. Mr. Sweeney stated the same situation occurs at the end of Hopi Drive. Mr. Baker stated that if someone’s property is on Association property, it can be towed after three days.

Mr. St. George reported a travel trailer plugged in to utilities next to lot 19.

Ms. Shockley said she ordered only one replacement mailbox unit, as these units are a special order requiring a 4-6 week process period, and she wants to make sure it is the right fit before ordering the second unit. She obtained the police report on the incident.

BOOKKEEPER’S REPORT
Ms. Thomson gave an update on those delinquent owners who have paid their dues/fines/security deposits, and those who have not paid them, prior to Mr. Churchill filing liens on those properties. Mr. Churchill stated that once liens are filed, foreclosure proceedings must be filed within six months. If any of these matters need to be litigated, there will be significant attorney’s fees. Mr. Sweeney recommended that we do something to enforce collection of these matters, and that we need to be consistent. Mr. Churchill will file the liens on the delinquent owners and send the owners his final letter, which includes a copy of the recorded lien, along with advice that foreclosure proceedings will commence in six months if the liens are not satisfied.

Ms. Thomson stated that the new website is up, everything is posted, and the e-mail links are all working properly.

Lot 32 paid its RV white-line citation issued on 5/4/06 with a note stating, “Sorry, but this is a little petty.”

OLD BUSINESS
On the soils engineering suggestion brought up at last month’s meeting, Mr. Baker stated that he spoke with Mike Dyer, who thinks that we shouldn’t do anything, as we’d just be spending an enormous amount of money on core samples and testing, and we’d be merely throwing good money after bad. These sinkholes are going to continue, and we should just plan on repairing them as they occur. Mr. Sweeney stated that we already know the soil is junk, and Mr. Baker stated we just need to deal with the problems. Mr. Sweeney stated that of the unrepaired areas, Hopi Drive was the first street to sink, followed by Apache Loop. There are probably a couple of new sinkholes since them. Mr. Baker stated there was very little compaction done on the streets during the sewer installation. Mr. Sweeney reported that Stanton pumped concrete under the surface when he did the last sinkhole repair. Mr. Churchill stated there was no engineering done on the streets and the houses, and during a prior dredging attempt on Yaqui Loop and Hopi Drive, houses started to sink.

Mr. Sweeney said we can’t go deep enough to fix them, as we’d run into mud. He said there’s not enough money in the next ten years to repair all the holes, and if we’re going to do these repairs, we need to do them right.

Concerning the repairs and improvements at the entrance area, Mr. Sweeney obtained the bid for the block wall ($11,869). There was a discussion about where to end the wall, if not at the mailboxes. The general consensus was that the wall run from the dumpsters, where the cable is, to the back of the large oleanders, which means the bid will be increased according to the extra lineage.

Mr. Churchill stated the letter to the driver who did the damage is almost ready to go out.

Mr. Svider inquired whether we should rebuild the backboard at the dumpsters now or later. Mr. Risen stated that the last wall behind the bins was plywood. Mr. Risen inquired if we should also include the back of the trash area as part of the new wall. Mr. Sweeney suggested that Outwest Fabrication build a metal backing, and he can get a bid for that. The large oleanders will be cut way back. Mr. Churchill advised that we mark the property lines before starting; that this area has been surveyed, but it has not been staked.

Mr. Chambers made a motion that Lemme Engineering be engaged to stake the property lines for the purposes of constructing a new wall at the entrance area. Mr. Price seconded the motion, and the motion carried.

Mr. Kossnar made a motion that the Association construct a block wall at the entrance area from the large oleanders to the dumpsters, after the surveyor has staked the property, at a cost not to exceed $17,000. Mr. St. George seconded the motion. The motion carried, with Mr. Baker, Mr. Price and Mr. Svider abstaining. Ms. Shockley will contact Lemme Engineering.

Mr. Price reported that the request for a County variance for a lot split by the Vista Del Monumento Acres’ owner (vacant lot), which is adjacent to the Association’s lot 1, is again on the calendar for the 8th. The owner is proposing a V-shaped parking configuration where a piece of the street would be abandoned to us, which also reduces the size of each of the proposed new lots. By alleviating the street parking issue, the owner hopes this new proposal will pass.

Mr. Risen asked the Board how it wants to proceed on a study to increase the building height maximum, since the general consensus of the homeowners is to further study the matter. Mr. Sweeney stated we should put the question to all the homeowners, and if 2/3's are interested, we should proceed with a study. Mr. Chambers said we could save a step by putting it to the members as a proposal. Mr. St. George stated that he believed the matter was voted down at the annual meeting in large part due to the setback issue; that 24’ is in compliance with the County’s regulation. Mr. Baker stated that we need to look at all issues relative to a building height increase, including sewer and light issues. Mr. Baker suggested a text box on the due’s statements be created to solicit homeowners’ opinions on the matter. Concerning setbacks, the County says setbacks are grandfathered. Mr. Sweeney stated that our prior, proposed amendment was worded differently. He also stated we should look at a whole new set of rules for a 24’ house.

Mr. Price made a motion to ask the homeowners their opinion on whether or not the Association should commence a study about increasing the maximum building height to 24’ by soliciting their ‘yes’ or ‘no’ opinion on the remittance stub of the 3rd quarter dues’ statements. The motion was seconded, and the motion carried unanimously.

Mr. Svider pointed out that Mr. Troxler works at the sanitation plant. Mr. Risen suggested that if the study proceeds, the Board would ask Mr. Troxler to be on the committee. Mr. Risen stated he would want some non-Board committee members.

Mr. Churchill reported that he received a response to our proposed drainage maintenance agreement from Steve Green (lot 112). Mr. Green wants the Association, not himself, to maintain the drain on his property (to which we want to link for the purpose of draining street water). The Association is not interested in Mr. Green’s counterproposal, due to the fact that Mr. Green has other lines on his property, from his garage, that drain into the new main drain that runs front to back. Mr. Chambers reported that this would generate clean water only, as the drains are all under concrete. Mr. Sweeney stated that we should put the proposed street drain in to keep the street from cracking, which means tying it in to the new drain on Mr. Green’s property (for which the Association paid for the materials).

Mr. Price made a motion that the Association not agree to maintain the recently installed lot 112 drain that runs front to back, and that Mr. Churchill be instructed to write Mr. Green with its decision not to maintain said drain. Mr. Sweeney seconded the motion. The motion was carried, with Mr. Svider voting against the motion, and Mr. Stroud abstaining.

Mr. Stroud’s flooding problem (lot 202) was discussed, with a question as to what’s next, now that a soils engineer will not be engaged. Mr. Chambers suggests the asphalt contractors be contacted, although they are not normally in the area during the summer months.

Mr. Chambers made a motion that the Association contact T&C Seal Coating to bid on an overlay of the Hopi Drive sinkhole. Mr. Svider seconded the motion. The motion carried on a vote of 5 to 4. Ms. Shockley is to contact T&C. Mr. Baker suggested that the T&C representative meet with Mr. Stroud, Mr. Chambers and Mr. Svider (committee members) on the proposed job.

Mr. Svider reported a new sinkhole on Apache Loop, about 15”, next to one of the manhole covers.

NPG Cable is to repair the patch at the first bridge.

Mr. Svider brought up the lot 32 motorhome that continues to have utilities plugged in. He suggests photos be submitted to Mr. Churchill showing the plug-ins.

Ms. Thomson reported Jamie Klugman, new owner of lot 225, is angry that he was not previously notified to remove the dilapidated dock, which he could have done when he had other work done. Ms. Thomson reported she explained to him that the complaints about the property started prior to his purchase of it, a letter was sent to the then property owner, and we had no knowledge when, or if, the property would sell until it actually occurred. He and his wife are having plans drawn for new construction, and they will be cleaning the entire lot, including the dock, the weeds and the palm tree. He was given time to move the dock, and Mr. Klugman stated he was currently making arrangements to have the property weeded.

Regarding the weeds on lot 228, to which there has been no response from the homeowner to our letter, Ms. Thomson stated she would have Mike Roberts weed that lot, and the Association will bill the homeowner.

Mr. Risen announced that the new members of the Traffic Committee for the next fiscal year will be Squeak, Gary Svider and Rob Troxler.

Mr. Chambers requested that the newly placed gravel in the parking lot be spread around to cover the bare spots at the south end, next to lot 249. Ms. Shockley will ask Mike Dyer to make another pass to fill in those bare spots.

NEW BUSINESS
No new business.

ADJOURNMENT
The meeting adjourned at 8:05 p.m.

Submitted by Recording Secretary, Sue Thomson

APPROVED BY BOARD OF DIRECTORS JULY 10, 2006