LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
JULY 10, 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
Secretary/Treasurer: Chris Chambers
Board Members: Joe Price, Jack Sweeney, Gary Svider, William (Squeak) Kossnar, Larry St. George and Richard Jaschke

ABSENT
Vice President: Chuck Baker
Board Members: Bob Stroud, Joe Maxwell

OTHERS PRESENT
Guests: Barbara Risen (lot 184) and Sheryle Jaschke (lot 171)
General Manager: Cheryl Shockley
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill

FINANCIAL REPORTS
Mr. Chambers moved to approve the June Balance Sheet. The motion was seconded, and the motion carried.

Mr. Sweeney moved to approve the June Profit & Loss Statement. The motion was seconded, and the motion carried.

MINUTES
Mr. Sweeney moved to approve the 2006 Annual Meeting Minutes. The motion was seconded, and the motion carried.

Mr. Kossnar moved to approve the Minutes of the regular meeting of June 5, 2006. The motion was seconded, and the motion carried.

GENERAL MANAGER’S REPORT
Ms. Shockley reported a pontoon boat and a vehicle being stored over the property line, but within the white line, at lot 22. One of the owners, Ernie Ogland, met with Ms. Shockley, and Mr. Ogland said that a County Assessor’s report says he owns his property to the middle of the street, and he is leaving his personal property where it is. He threatened legal action if the property is removed. Mr. Sweeney stated that Mr. Ogland doesn’t own to the center of the street. Ms. Shockley reported that Mr. Ogland told her that Robert Gory Realty disclosed to Mr. Ogland when he was purchasing the property that the property boundaries run from the middle of the canal to the middle of the street. Mr. Churchill stated that he would be surprised if the property line goes to the middle of the street, and Mr. Ogland, therefore, may have a claim against the realtor. Mr. Risen stated that if it is his property extends to the middle of the street, then he should be responsible for street maintenance. Mr. Churchill said he needed to see the original plat, when the subdivision was created, for determination of the property line. He also stated that the white line is not a parking line, a storage line or a property line.

Mr. Chambers reported that Mr. Ogland’s neighbor’s water meter box is not in line with Mr. Ogland’s water meter box, and he’s currently within a foot of his water meter. Mr. Ogland’s boat and vehicle are not parked beyond his neighbor’s water meter box. Mr. Sweeney advised that the water meter is a guideline only; it is not exact. Mr. Churchill did a white board diagram and explained that sometimes water meter boxes are inside the property line, and sometimes they are outside the property line.

Mr. Price moved that the Association send a letter to Mr. Ogland, lot 22, requesting he obtain a survey of his property. Mr. Churchill stated that Kenko tore up the monument pads, and we could use some of the withheld funds to survey and replace the monuments. The motion was seconded, there was no further discussion, and the motion carried. Ms. Thomson will draft the letter for Mr. Churchill’s review.

Ms. Shockley reported that the dog belonging to the owners of lot 32 has been running free, and she reports that the owner is trying to keep the dog in. If the problem persists, she will contact Animal Control and the Humane Society.

Mr. Spangler, lot 34, wanted Ms. Shockley to have an unknown vehicle towed from his driveway. Ms. Shockley determined that the vehicle belonged to a neighbor who was told lot 34 was unoccupied. They promptly moved their vehicle. Ms. Shockley informed Mr. Spangler that she was not authorized to tow, or cite, any vehicles that were parked entirely on private property. In that situation, the homeowner would be the victim and would be the only one authorized to remove the vehicle from his property.

Ms. Shockley received a report of a slowly sinking pontoon boat. The owner was contacted, and the matter was resolved.

Ms. Shockley discussed the lack of street striping at lot 198 at the Moovalya Drive-Yaqui Loop intersection, and people have been parking there. Mr. Sweeney stated there are also no stripes on the Vista del Monumento Acres’ properties, which are our streets, and they should be striped, along with the streets at lot 198. Mr. Kossnar reported that there was a truck and Sanger boat/trailer parked overnight just outside the gate, before the Riverside Drive stop sign. No action was taken.

Ms. Shockley reported that five trailers were towed over the holiday. Security has not yet provided written reports for either the Memorial Day holiday or the July 4th holiday. Mr. Kossnar reported that on some point on one of the July 4th evenings, he found the gate open with the guard shack closed, and the two guards sitting on the hill, apparently observing. Mr. Kossnar talked to them. He also reported that the guards did not have their golf cart on site for the first two days of the four-day holiday weekend. Ms. Shockley stated she could obtain a report of the holiday incidents and report back. Mr. Chambers stated the guards were using their Blazer on patrol. Mr. Risen stated that security should keep a log, and Ms. Thomson suggested assisting them by creating an incident check sheet for them to use.

Ms. Jaschke inquired about where to report renter problems---to the General Manager or to the Board? She stated there were some renters who were checking for locked doors. Ms. Jaschke was advised to report that type of incident to the Sheriff’s Office.

Ms. Thomson suggested that the shift for the second guard be shortened from its current 12 hours (6 p.m. to 6 a.m.) to 6 hours (9 p.m. to 3 a.m.). A motion was made to reduce the second guard shift from 12 hours to 6 hours, from 9 p.m. to 3 a.m. The motion was seconded, and the motion carried.

Another holiday incident involved Ms. Shockley asking some kids driving a golf cart to slow down, at which time the male got out and threatened her with his fist and called her several nasty names. The sticker on the cart was issued to 8782 Moovalya. The girls driving the cart said they would slow down, and the boy started walking down Yaqui Loop. Ms. Shockley said she told security to find the boy and escort him out of Keys. She was then notified by security that the mother of the girls at 8782 Moovalya wanted to talk to her, but when she went by the residence, they had already left. Ms. Thomson was asked to contact the owner to discuss the incident.

BOOKKEEPER’S REPORT
Ms. Thomson inquired of the Board whether they wanted to uphold the second $500 fine for lot cleanup on lot 10, in light of the fact that the property had already been illegally sold to undisclosed parties at the time of the imposition of the fine. Mr. Churchill reported on the status of his attempts in restoring the property back to Mr. Willoughby. Mr. Sweeney moved to keep the fine in abeyance on the homeowner’s account until such time as the court determines legal ownership. The motion was seconded, and the motion carried.

Ms. Thomson reported early survey results on the building height increase study. She has received 19 votes in favor of the study, and 23 votes in opposition to the study.

It was reported that the weeding on lot 228 has been done.

Mr. Price asked about the survey status at the gate area, and Mr. Sweeney reported that he got the deed and documents to Lemme just after the last meeting. Ms. Thomson received confirmation via letter dated June 7 that Lemme’s services have been retained to do the work.

The new mailbox unit has been installed, but Ms. Thomson has not received anything from Mr. Keller by way of reimbursement for damages, which Mr. Churchill presented to him. Mr. Churchill said he understood that Mr. Keller is under the impression that his insurance company is taking care of it. Ms. Thomson was asked to follow up with Mr. Keller regarding the status of payment.

Late fees were assessed on eight lots. No new citations were issued.

Mr. Sweeney moved to approve the prepaid bills and Bills for Approval. The motion was seconded, and the motion carried.

OLD BUSINESS
Mr. Risen asked about the status of our cable problems. It was reported that NPG Cable is looking for the source of surging. Mr. Price stated that it is not our responsibility to fix their cables.

Ms. Shockley was asked about the status of the light pole to be replaced at the south end of the parking lot. She reported that she has followed up with APS, and they told her they’ll get to it when they get to it. She is also getting the runaround in connection with the replacement of burnt out bulbs on some streetlights. Mr. Risen suggested she call DL Wilson.

Mr. Kossnar and Mr. Sweeney installed the replacement mailbox.

Mr. Sweeney stated he is trying to get a bid from Outwest Fabrication for the backboard to the dumpsters. The bid is done, but it is not written up, but he understands it to be $5,000 to $6,000 for the entire back, including replacing the wood and cross panels. The block wall project is on hold until the survey is complete.

Mr. Chambers reported that the Vista del Monumento Acres’ variance (on the lot adjacent to Keys lot 1) was approved. The owners of lot 1 are suing La Paz County and the VDMA owners, as they are upset the 15’ easement was taken away in the variance.

Concerning the lot 112 counterproposal for a drain line maintenance agreement, we have not heard back from the lot owner.

On the lot 202 flooding situation, it was reported that T&C Seal Coating will not be back in the area until September or October, when the weather cools down, but they can give us a bid in the meantime. The Apache Loop sinkhole was marked with cones. Buckskin Sanitary District was asked to shoot it with their camera. The sinkhole next to lot 32 was filled with concrete by the property owner. Mr. Price suggested we temporarily patch all sinkholes, and Mr. Sweeney volunteered for the task.

Mr. Sweeney stated that NPG Cable still hasn’t fixed the concrete on the bridge, and cable is hanging from the bridge, either old phone or electric cable, he believes. Mr. Chambers stated that if we want to do any bridgework, we need to let Marjorie Blain of the Army Corps. know ahead of time how many feet we want the river lowered. He suggested that perhaps we replace the wood with veneer and avoid structural repairs. Mr. Sweeney stated that the main bridge need wood replacement, and there are nails and lags sticking out.

NEW BUSINESS
Mr. Kossnar reported ongoing trash problems at the dumpster area. All the bins have been full, with trash spilling over onto the ground. He stated we can fit three more trash bins inside the enclosures at a cost of $96 each, per month, and suggested we order them for the summer season, from the Memorial Day holiday through Labor Day. We currently have 18 bins in the trash enclosure area, but since there are more houses in the Keys now, 18 bins are not enough.

Mr. Kossnar also stated that the gardener recently spent over three hours in one day picking up trash. He recommended that we increase Mike Roberts’ service contract $100 per month for the months of May, June, July, August and September, to compensate him for his extra efforts in maintaining the trash area. Mr. Sweeney moved to increase Mike Roberts’ maintenance contract $100 per month for the months of May, June, July, August and September only. He will continue at his regular rate for the months of October through April. The motion was seconded, and the motion carried.

Mr. Price inquired about the cost of a third pick up by our trash vendor each week. Ms. Thomson will check into it.

Mr. Kossnar moved that the Association add three dumpsters to its trash area at a cost of approximately $288 per month, from Memorial Day weekend through Labor Day, each year. The motion was seconded, and the motion carried. Ms. Thomson will order the bins right away for the remainder of the season.

Mr. Kossnar presented a paid invoice from Davis Hardware for some landscape hoses that needing replacing, and he wants to get more soaker hoses for the area by the mailboxes and oleanders. Ms. Thomson will reimburse Mr. Kossnar.

ADJOURNMENT
The meeting adjourned to Executive Session at 7:32 p.m. and reconvened at 7:50 p.m. to regular adjournment.

Submitted by Recording Secretary, Sue Thomson

APPROVED BY BOARD OF DIRECTORS AUGUST 7, 2006