Board of Directors
Regular Meeting
FEBRUARY 5, 2007

President Bill Risen called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:02 p.m.

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

Secretary/Treasurer: Chris Chambers
Board Members: Joe Maxwell

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

Mr. Price made a motion to approve the Minutes of the regular meeting of January 15, 2007. The motion was seconded, and the motion carried.

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

Mr. Price moved to approve the January Balance Sheet. The motion was seconded, and the motion carried.

Ms. Shockley presented T&C’s bid for $4,200 to fill the cracks in the streets. Mr. Stroud inquired when we last filled the cracks, and Ms. Thomson reported that it has been two years. Mr. Svider added that the last vendor did not properly prepare the surface before filling the cracks. Mr. Baker was unclear as to whether or not the T&C options presented at last month’s meeting included filling the cracks, and Ms. Shockley stated those proposals did not include filling cracks.

Mr. Baker made a motion to accept T&C Seal Coating’s proposal for a seal coat of all streets at $12,845, and to accept their quote to do the crack filling for $4,200. Mr. Price seconded the motion. Mr. St. George asked that they blow out the debris in the cracks, rather than use a broom. Ms. Shockley reported that T&C will not fill any cracks less than ¼” because the rubber is too thick for cracks that small.

Mr. Stroud, being absent at last month’s meeting, stated he is not clear on last month’s decision on Hopi. He expressed his concern about the continuing deterioration of sinkholes and cracks on Hopi. Since last month, they have gotten worse. One of his neighbors is concerned about losing his truck in a sinkhole. He said that a prior concrete repair didn’t fix it. Cracks are ½” and getting bigger. He stated that a rubber fill won’t fix it, and we should get the streets repaired.

Both Mr. Sweeney and Mr. Stroud stated they shot the elevation 300’ down the street from the corner. Mr. Sweeney stated that Mike Dyer said it would be impractical to redo the street, as there is not enough flow to repair it properly. Mr. Stroud voiced his concern about this matter having gone on for several years without resolution, and the flooding problem has nothing to do with the drain at his house. Mr. Price stated that this situation was like that before Kenko. Mr. Stroud disagreed by stating that it was diverted away until the street started sinking. Mr. Stroud said this is the third time this subject has been brought up without him being present at a meeting, and he has others who are asking him what’s going to be done. Mr. Sweeney said it can’t be graded adequately. Mr. Baker expressed his frustration with this problem, the biggest problem we are facing, with no solution.

Mr. Stroud said he didn’t care if it’s fixed with a patch; let’s just get it fixed. He stated that Buckskin Sanitary District previously agreed to pay for one half of a patch, which would have been better than nothing. Mr. Sweeney suggested a drain in Mr. Stroud’s driveway to solve the problem. He stated that the runoff from the bridge by his house on Yaqui used to run entirely onto his lot, and the government says that natural runoff has to be taken by the recipient of its flow. Mr. Stroud said he wants the street filled up to an even level to fix the problem. Mr. Sweeney replied that leveling the street is not going to fix the problem. Mr. Stroud stated the berm is there, and the Association is supposed to take care of it. Mr. Sweeney replied that the berm would have to be increased another inch, and Mr. Baker stated that a drain is the answer. Mr. Baker asked Mr. Stroud if his neighbor would approve a mutual drain, and he said he would not approve it, because of encroachment issues. Mr. Stroud again stated that the holes in the street, and the crack running down the middle of the street, need to be fixed. Mr. Sweeney responded that the hole in the street is not creating the flooding problem at Mr. Stroud’s property.

Mr. Churchill advised that we could put in a drain, but where’s the water going to go? Mr. Sweeney stated it would go to the bridge or through lots, and Mr. Churchill inquired if anyone has looked into these options. Mr. Stroud stated that drains to the bridge and asphalt work would be needed to keep it from going to the corner house. Mr. Svider stated that there is not enough fall to get it there. Mr. Sweeney stated there is a 2-1/2” elevation change in 300’. Mr. Stroud wondered if a solution would be to run a drain to the bridge from the corner and run a drain to the bridge from his house.

In response to a $3,000 quote to backhoe and lay a 300’ drain line, Mr. Price replied that he didn’t think all the necessary work could be done for anywhere close to $3,000. Mr. Sweeney stated there are similar problems on streets other than Hopi; Mr. Stroud’s problem is not the only one we have. Mr. Stroud stated that even a Kenko supervisor acknowledged the fact that they stopped and started work on Hopi and left a low spot.

Mr. Sweeney said that houses lower than the street are going to take on water, and Mr. Churchill stated that people who build below street level need drains. Mr. Stroud replied that houses that are lower than the street aren’t taking water. Mr. Sweeney asked Mr. Stroud, did he not think he was lower? Mr. Jaschke said that he has a drain with a 50’ line running down the side of his property, and it doesn’t handle the runoff, and his walkway fills with 2” of water. Mr. Churchill stated that building a house below street level acts as a water magnet, and there is no drainage in the subdivision. Mr. Stroud stated that we had it solved at one time. Mr. Churchill stated that as other people build, drainage changes. Mr. Stroud stated that no new building has occurred on his street since then. Mr. Churchill said there were major drainage issues before houses were built. Mr. Sweeney said there is no way to put a drain in for $3,000. Mr. Price stated that the quote was for a 6” pipe, but he doesn’t have a price for a catch basin. He said it can be dug in a few hours and the pipe laid in the ditch. Ms. Shockley stated there are two companies in Phoenix that can build catch basins. Mr. Price said it’s for a 300’ ditch. Mr. Sweeney said that a backhoe can dig about 500’ a day, if there are no obstructions, then there’s the cost of compaction at $75 to $80 per hour.

Mr. Baker suggested that Mr. Price get together with Mr. Stroud, and get a plan together. Mr. Sweeney stated we could then look at the other areas needing work. Mr. Baker asked if this will save our street, and how many lots will it affect. The catch basin and drain proposed at the former Green property (lot 112) on Papago would save the street and benefit several lots. Mr. Baker suggested that we do something economical if it affects more than one or two people. Mr. Stroud reiterated that the Hopi sinkhole is a big concern, and if we can fix his problem while we're at it, that would be great. Mr. Price stated that if we fill it up, it won’t solve his drainage problem. Mr. Stroud said it’s not a crack, so it can’t just be filled up; it’s much bigger.

Mr. Sweeney suggested that we not approve the seal coat and the crack fill. He advised that repairing the sinkhole won’t solve Mr. Stroud’s flooding problem. He stated the problem on Apache that started out as a 12’ problem is now a 40’ problem, due to lack of compaction. Ms. Shockley stated that none of the streets were compacted, and Mr. Price replied that compaction was done on the streets, and compaction reports are on file, but that is neither here nor there.

Mr. Baker’s motion to proceed with the crack filling and seal coating carried by a vote of 4 to 2, with Mr. Stroud abstaining.

Mr. Baker made a motion to obtain a bid, as soon as possible, not to exceed $5,000, to fix the sinkholes on Hopi Drive before the crack filling and seal coating begins. Mr. Sweeney seconded the motion. Ms. Shockley would take Mike Dyer to the location. Mr. Sweeney said he would be in town until Wednesday. Mr. Svider asked if we should have Mike Dyer also look at the problem on Apache, to the left of lot 85, to see if we should put a drain in, by vacant lot 56. There being no further discussion, the motion carried unanimously.

Continuing with the General Manager’s Report, Ms. Shockley reported that Brooke Water fixed a meter leak at lot 151. They are also working on a meter leak on Apache, and Ms. Shockley stated that Brooke Water is shorthanded. She reported that NGP Cable finished their repair job at the bridge with cold mix. Mr. Kossnar suggested that we give the utility companies a heads up that we will be seal coating the streets so they can complete whatever repairs they need to do. The general consensus to that was ‘good luck’.

Mr. Risen stated that he noted Ms. Shockley has been stopping speeders.

Ms. Thomson stated that insurance coverage on the new wall has been added to our policy.

There have been no responses to date concerning the special notices published on the website about the upcoming ballot issue on short-term rentals.

The Association’s new computer is ready to be picked up, with the older unit going to Ms. Shockley, who is having her high-speed internet installed by NPG on the 15th.

Ms. Thomson reported that Ms. Shockley is working on getting four people to serve on the ballot-counting committee at the Annual Meeting.

A 1st white line citation was issued to lot 142.

Only three lots are delinquent over $300.

$18,228 was transferred to the Capital Improvements bank account, pursuant to the annual Capital Improvements Budget, and a transfer of $15,000 was made to the Reserve account. Because the Association now has over $200,000 under one financial roof, Ms. Thomson inquired whether or not the Board felt a need to move some of the funds to another bank to stay within the FDIC guarantee. Mr. Sweeney stated he thought there were some loopholes to the regulations. He also thinks the FDIC guarantee may have been increased to $200,000. Ms. Thomson will check into it further.

Mr. Sweeney made a motion to approve the prepaid bills and Bills for Approval. The motion was seconded and carried unanimously.

Mr. Sweeney spoke with his accountant, who confirmed Mr. Sweeney was correct about the audit options he presented at last month’s meeting. His accountant is sending something in writing. On the subject of audits, Mr. Churchill added that the CC&R’s are more restrictive than the statute. Mr. Price stated that he also spoke with his accountant, who stated that all three audit options are done by a CPA, but with the compilation option, there are no guarantees. He further stated that with a reviewed audit, there are some guarantees, and the cost for a reviewed audit is $1,500, with a full audit costing thousands of dollars. Mr. Sweeney stated that a reviewed audit is certified by a CPA, and the reference to ‘some guarantees’ is a matter of interpretation.

Mr. Sweeney made a motion that the Association have a compiled audit every other year (commencing calendar year 2007) and that it have a reviewed audit every other year (commencing calendar year 2006). Mr. Baker seconded the motion, and the motion carried unanimously.

It was noted that Mr. Maxwell has missed three meetings recently, but Ms. Thomson does not have information at hand as to whether or not they were consecutively missed meetings. Mr. Churchill stated that he believes anyone missing three meetings in a calendar year is subject to removal. Mr. Stroud will talk to Mr. Maxwell to determine if he is still interested in remaining on the Board and get back to Ms. Thomson right away before the ballots are finalized.

Mr. Churchill instructed Ms. Thomson on some changes to the drafts of the Annual Meeting Notice, Absentee Ballot and Agenda.

Ms. Thomson stated that Mr. Edey will speak at the Annual Meeting. There was discussion amongst that Board and Ms. Thomson about the order of the Agenda items, as well as the ballot write-in’s, nominations and voting procedures. Mr. Churchill stated that we can disclose to the membership at the Annual Meeting, before voting begins, the write-in results obtained from the Absentee Ballots.

The proposed 2007 Budget having been circulated for review prior to the meeting, it was suggested that Accounting Fees be increased due to the reviewed audit that will take place this year.

Ms. Shockley inquired if Ms. Thomson knows of the whereabouts of more keys for the large parcel boxes at the mailbox area, which parcel boxes have been moved to their new location. Ms. Thomson will see if she can locate any keys.

Ms. Shockley was asked to leave the room so that her service contract could be reviewed. After it being determined that she is doing a commendable job, Mr. Baker made a motion that Ms. Shockley’s service contract be increased $200 per month effective February 1, 2007. Mr. Sweeney seconded the motion, and the motion carried unanimously.

Ms. Thomson was asked if the Board needed to review her compensation, and she stated it was fine, but she requested that the Association consider reimbursing her for the Pitney-Bowes postage meter rental that runs from $20 to $35 per month. Mr. Sweeney made a motion that the Association pay Ms. Thomson up to $35 per month for her Pitney-Bowes postage meter. Mr. Baker seconded the motion, and the motion carried unanimously.

Mr. Stroud commented on the gardener’s lawn seed failure, and he suggested that we reconsider doing a desert scene. Mr. Sweeney stated that a desert scene would only eliminate the grassy area, and there would still be shrubs to water. Mr. Kossnar reported recent irrigation line breaks by the oleanders. Mr. Churchill asked if a landscape architect has looked at our options. He said his rye didn’t come up either because it was too cold. Mr. Sweeney said we can do something new to tie the new wall into the existing wall at the front entrance. Mr. Risen suggested revisiting the removal of the oleanders, as a proposed future project. Mr. Kossnar commented that Mike Roberts picks up a lot of trash, in addition to his gardener duties.

Mr. Risen asked if the large dump truck working at lot 18 is the cause of the street cracks that have appeared on Moovalya Drive.

Ms. Stroud stated that the mail lady says she doesn’t have all the keys to the large parcel boxes, and that box 1 is broken. Mr. Price asked who replaces the missing mailbox number labels. Ms. Thomson stated she did not know.


The meeting adjourned at 7:33 p.m.
Submitted by Recording Secretary, Sue Thomson