LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
OCTOBER 2, 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
Board Members: Bob Stroud, Jack Sweeney, Gary Svider, Joe Maxwell, Larry St. George, and Richard Jaschke (6:25 p.m.)

ABSENT
Vice President: Chuck Baker
Secretary/Treasurer: Chris Chambers
Board Members: Joe Price and William (Squeak) Kossnar

OTHERS PRESENT
Guests: Blane Coon (lot 54) and Barbara Risen (lot 184)
General Manager: Cheryl Shockley
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill

CALL TO PUBLIC
There were no comments from guests.

MINUTES
Mr. Sweeney moved to approve the Minutes of the regular meeting of September 11, 2006. The motion was seconded, and the motion carried. Mr. Risen clarified that issues discussed in an executive session can only be voted on after reconvening to a regular session.

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

Mr. Stroud moved to approve the September Balance Sheet. The motion was seconded, and the motion carried. It was noted that the rental security deposit for lot 112 should either be returned or transferred to lot 012, since escrows on these properties closed last month.

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

BOOKKEEPER’S REPORT
Ms. Thomson reported that Lemme Engineering has completed its survey of the front area and that markers are in place. Bill Lemme told Ms. Thomson that the Association has a few more feet than was previously indicated. The new owners to the north plan on building three residential units, and they asked Lemme to give us these few feet on their south boundary, which grant supersedes what we were already given. The new tract map will include Association property and the back piece we don’t own.

The owners of lot 212 reported that one of their guests received a citation over Labor Day for crossing Riverside Drive in R&B Security’s golf cart, which wasn’t street legal. The owner erroneously thought the cart belonged to the Association. The individual from California has to return to Parker to attend court, and he is facing fines of $1,600. The fine attributable to no proof of insurance is $900, which is consistent with what the Sheriff’s Office told us at the annual meeting.

Mr. Risen reported that a first-offense, extreme DUI fine in Mohave County is now $4,500. If one wants to contest, and loses, the fine is $7,500. Lake Havasu City has a no-tolerance policy.

The Land account on the Balance Sheet was adjusted to $108,312 which reflects the current assessed value of the three lots that comprise the common parking area.

Weed letters were sent to the owners of lots 175, 180, 207, 227 and 228. Mr. St. George reported that Mike Roberts cleared the excess vegetation on vacant lot 27, with the exception of trimming the palm trees, in which the homeowner, or someone on her behalf, should follow up.

The lot 112 proposed Easement Agreement was sent to the new owners for their signatures.

Ms. Thomson asked for guidance on the various patch jobs on the streets.

Late fees were assessed to nine lot owners for delinquent dues.

GENERAL MANAGER’S REPORT
Two white line citations to lot 114 (renters) were issued on October 1. The folks with a boat and trailer parked just outside the gate were warned not to park there, and the owners complained that there are no markings on the street.

The lot 32 dog has been seen out again. Mr. St. George stated that relatives are taking care of the dog.

Ms. Shockley reported that the Sheriff’s Office is no longer allowing non-MVD-registered golf carts and other off-road vehicles to travel on the dirt shoulder of Riverside Drive anymore. Mr. Sweeney stated that in order to stay legal these types of vehicles must be 40’ away from the centerline of the road.

Mr. Risen reported that the Nevada Gaming Commission has been in the neighborhood doing an investigation on the Herbsts who are planning a new casino.

Mr. Svider asked for clarification on Ms. Shockley’s 9/20 and 9/22 report entries. There was a tow on 9/20, but a warning on 9/22, and what was the difference between the two. Ms. Shockley clarified that she should have stated on the 9/22 entry that the owners were going to exceed the 14-day limit, not that they did exceed it, which is why they received a warning.

OLD BUSINESS
Mr. Sweeney received the amended bid from Steve Stanton for the wall at the front area, which was obtained after the survey markers were placed. The revised bid, to allow for the additional 70’ length, is $18,011.85. Because this amount is in excess of prior Board approval, and because we are adding more than initially thought, Mr. Sweeney asked for approval of the revised bid. The money we receive from the damage claim will offset the Association’s out-of-pocket expense. Mr. Coon asked what funds are available for the project, and Ms. Thomson stated that aside from the operating account, the Association has in excess of $147,000 in its capital improvements and reserve accounts. Mr. Sweeney made a motion that the Board approve the Steve Stanton bid of $18,011.85 for the construction of the wall at the front area. Mr. St. George seconded the motion. There being no further discussion, the motion carried unanimously.

Mr. Svider asked if Buckskin Sanitary District claims responsibility for the manhole on Apache Loop. Mr. Risen stated that they say it is not theirs. The only way to know is to see what is inside. Ms. Shockley reported NPG Cable has one of their high-speed cables lying across the parking lot running to lot 245. She will contact NPG to have them bury the line, from lot 245 to the utility box.

Mr. Risen reported a cold patch was put on the Yaqui Loop utility repair area, A hot patch was put on the Papago Loop job. Hopi Drive is still sinking. Mr. Sweeney will assist Ms. Thomson in sending the appropriate letters to resolve these problems prior to next month’s meeting. Mr. Sweeney suggested that Buckskin Sanitary District be contacted about the vault on Apache Loop to see if they claim it. It’s a 15-year old vault, and there is a tendency for the various utility companies to deny they created it. Mr. Stroud suggested that APS be contacted to see if it is either theirs or they can determine whose it is. Mr. Risen stated that Buckskin Sanitary District told him they would have to first dig it up in order to fill it in. Mr. Sweeney stated that compaction would be needed. Mr. Churchill advised that it would be difficult to make a demand if we don’t know who is responsible. Buckskin Sanitary District states that it is an APS vault. Mr. Churchill advised that in order to solve this problem, we contact APS and ask that they take a look at it. Ms. Shockley reported that the road would have to be dug up to find out who’s vault it is. Mr. Risen asked that we get an estimate from Mike Dyer so that we can take action next month.

Concerning the NPG Cable issue at the first bridge, Mr. Sweeney reported that the utility repairs are done with blacktop on one side and concrete on the other side. Ms. Thomson asked for photos, prior to contacting NPG about completing their repairs.

Park-At-Your-Own-Risk signs for the parking lot have not yet been made. Ms. Thomson has found Laser Brite closed the last two times she attempted to drop off the blanks.

NEW BUSINESS
There was no new business.

ADJOURNMENT

The meeting adjourned to Executive Session at 6:56 p.m.

Submitted by Recording Secretary, Sue Thomson

APPROVED BY BOARD OF DIRECTORS NOVEMBER 6, 2006