Board of Directors
Regular Meeting
DECEMBER 4, 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
Vice President: Chuck Baker
Board Members: Joe Price, Joe Maxwell, Bob Stroud, Jack Sweeney, Gary Svider, William (Squeak) Kossnar, Larry St. George

Secretary/Treasurer: Chris Chambers
Board Members: Richard Jaschke

Guests: Barbara Risen (lot 184)
General Manager: Cheryl Shockley
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill (6:05 p.m.)

Mr. Sweeney moved to approve the Minutes of the regular meeting of November 6, 2006. The motion was seconded, and the motion carried.

Mr. Sweeney moved to approve the Minutes of the executive session of November 6, 2006. The motion was seconded, and the motion carried.

Mr. Baker moved to approve the prepaid bills and Bills for Approval, including an additional $50 to be paid to R & B Lawn Maintenance for excessive holiday trash pick up and the Davis Building Supply invoice for $103 for five sprinkler heads. The motion was seconded, and the motion carried.

Mr. Baker moved to approve the November Balance Sheet. The motion was seconded, and the motion carried. Ms. Thomson was asked to transfer $2,033.66 from the Kenko bank account to the general bank account to cover the Mike’s Contracting invoice for the sinkhole repair on Apache Loop.

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

Ms. Thomson reported that the lot 112 owners are not willing to sign the proposed Easement Agreement without the Association being responsible for maintaining the drain line. Because the line drains household water from the residence on lot 112, Mr. Sweeney made a motion that the Association drop the proposed Easement Agreement with the owners of lot 112 and that the street grate which the Association paid for be picked up from the owners’ garage. The motion was seconded, and the motion carried unanimously. Ms. Shockley is to contact the owners to arrange pick up of the grate. Mr. Churchill reviewed the history of this proposed easement, and Ms. Thomson read the owner’s e-mail response she received today, and she will forward the e-mail response to Mr. Churchill.

The Anslyn, et al. (plaintiffs) 26.1 disclosure statement in the pending lawsuit has not yet been filed. It was due in August. Mr. Churchill reported that opposing counsel approached him regarding the possible invalidity of proxy votes pursuant to a change in the law in 2005. The issue relates to a possible oversight in the statute as it relates to definitions of “units” vs. “lots”. There are no definitions in planned developments, and as the statute is written, the definition of “units” relates to condominium sections of the law, but this was not intended to be exclusive. Mr. Churchill advised that the membership can still vote by proxy. Also, owners can vote by absentee ballot. Mr. Baker stated that we need to research these matters before the next annual meeting. If we interpret the statute as applying to us, then we just change our procedure. A “unit” is a “unit”; we have no “units”.

Ms. Thomson stated there has been no update from our insurance carrier on the status of the Keller subrogation claim.

Ms. Thomson has set up the bank accounts to be accessible via the Internet if any of the Board members are interested in viewing the accounts.

The engineered bridge plans were given to Ms. Shockley for delivery to Stanton Construction.
Ms. Shockley reported that the water is not being lowered 10’ in January, due to CRIT needs downriver. Mr. Risen reported that paperwork is going to the Army Corps. of Engineers. Ms. Shockley stated that whatever the Tribes want for their hydroelectric needs, they get it. Mr. Risen stated that the lake bottom belongs to the Tribes, and the river bottom belongs to the Feds. Ms. Shockley said that Stanton couldn’t do the prescribed bridgework in five days, as he doesn’t have that kind of manpower. Mr. Price recommended getting a bid anyway just to see what the cost would be. Mr. Stroud suggested using bladders to keep the canals lowered.

Ms. Thomson presented various quotes for increased bridge coverage. Mr. Sweeney believes that $5,000 per bridge is adequate coverage, considering the multitude of insurance exclusions.

Citations were issued to lots 125 and 68 for first white-line offenses. Another letter was sent to lot 70 for delinquent dues.

Concerning the numerous warnings given to operators of speeding Rhinos over the Thanksgiving holiday, Mr. Risen asked Ms. Shockley if the speeding Rhinos were street legal. Ms. Shockley stated that she did not know. Mr. Risen stated that if they possess a license plate, they are legal to drive in the Keys, and if not, then they are not permitted on Association streets. Squeak stated that he has some brochures from the Sheriff’s Office for distribution concerning non-registered offroad (and Rhino-type) vehicles.

Squeak reported that the owners of lot 125 are not cleaning up after their dog who frequently dumps on lot 198.

Mr. Svider brought up again, as previously mentioned at last month’s meeting, the possible need to revise the Association’s CC&R’s, and also the apparent need to review voting procedures. Mr. Churchill stated, again, that the CC&R’s don’t expire. Squeak talked about the possibility of reviewing provisions relating to rentals, and Mr. Churchill stated that limitations could be discussed.

Mr. Churchill advised that any proposed amendments to the CC&R’s have to first be approved by a majority of the Board of Directors, then if the Board wants to present it to the owners at an annual meeting, passage can only be obtained by a 2/3rds vote of owners present at the meeting, which meeting must be properly noticed. Absentee ballots, if utilized, could conceivably count towards the required 2/3rds vote. He stated that the Board must approve any issues ahead of time. Mr. Risen suggested that the January board meeting be dedicated to a review of the CC&R’s.

Mr. Churchill reported that in one of the discovery responses in the current lawsuit plaintiff Pollett, lot 43, has a rental brochure that states the maximum occupancy of the house is 14 people, which probably violates the “single-family” occupancy limitation.

Mr. Svider asked Mr. Churchill if he previously said that we could make a rule concerning rentals, and Mr. Churchill replied that he would prefer to make it a CC&R's amendment, rather than a rule. Mr. Baker discussed a couple of rental limitations that could be presented, such as no short-term rentals. Mr. Sweeney stated that the Association has trouble enforcing even the single-family definition in the CC&R’s, and he doesn’t agree that we should pursue that avenue. Squeak concurred with Mr. Sweeney. Mr. Risen concluded by stating that the January meeting will be devoted to discussing the CC&R’s.

Mr. Risen reported that the columns on the trash enclosures were repaired. The color coating on the new wall is yet to be done. Stanton is to remove the broken concrete soon. He also recommended that the USPS large parcel unit be put on the block wall. It was also noted that the boulders now look fine as they are. Mr. Stroud suggested that the large rocks be moved behind the dumpsters to keep kids out of the pathway in that area.

Mr. Sweeney reported that the County’s easement enforcer was called out to the site of the new wall by the new, adjacent property owner, who is not happy about the wall. He asked the County to make us tear down the wall because it blocks his access. Although their legal access is via Riverside Drive, the owner states that the Keys is fencing them out. The neighbor also spoke to the installer of the wall, but no one has talked to us. Mr. Sweeney stated that the code enforcer would need to review legal documents before approaching us. It was noted that the mail lady complained about not having enough room to deposit mail on the last mailbox unit, so the new wall was notched to allow better access to the rear side of that unit.

Mr. Svider asked what was the cause of the Apache Loop sinkhole, and Mr. Sweeney replied that it was due to lack of compaction when the manhole was installed. He went over the problems with Jasper when the digging occurred. There was virtually no compaction done on this site. Mr. Sweeney stated that the other sinkholes that have been repaired recently were due to installation of sewer laterals, utility line problems and broken water lines. On the Apache repair, we went 6-8’ on each side of the manhole to repair the problem.

The sewer-related problems of sinkholes and improper street grading on Association streets, including the flooding problem on Hopi, are going to be a continuing problem, and avoiding liability on our part is something the Board needs to address. Mr. Risen asked if we should put Buckskin Sanitary District on notice, and Mr. Churchill stated that we should send them a bill for the Apache Loop repair. Mr. Sweeney asked that we get a letter from Mike Dyer regarding his conclusion that the sinkhole was due to lack of compaction when the manhole was installed by Buckskin Sanitary District and that we get the letter to Mr. Churchill so he can address the matter with Buckskin Sanitary District.

Mr. Risen suggested that the Board also discuss street paving plans at next month’s meeting. Mr. Baker asked Ms. Thomson to research the timeline for street resurfacing prior to next month’s meeting. Mr. Sweeney asked if we were due for a slurry. Mr. Svider reported that an oil-based coating worked better in Keys II. Sinkholes could be done first and in conjunction with a slurry seal. Mr. Sweeney stated that we need to walk the streets again to inspect them.

Mr. Sweeney stated that NPG Cable has still not fixed their work at the bridge. Ms. Shockley said NPG keeps putting us off. She stated that Verizon has been behind schedule, but they will get to the permanent patch on Yaqui Loop soon. Mr. Sweeney asked Ms. Shockley to ask Stanton to give us an independent bid on completing the NPG Cable repair job, which Stanton could do while he is removing the broken concrete at the mailbox area. Sweeney stated that undermining will occur under the concrete when it rains if this isn’t fixed.

Mr. Stroud asked Ms. Shockley to put up a new flag, and to order two at a time so we always have a spare.

There was no new business.

The meeting adjourned at 6:55 p.m.

Submitted by Recording Secretary, Sue Thomson