Board of Directors
FEBRUARY 5, 2007
CALL TO ORDER
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
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.
GENERAL MANAGER’S REPORT
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
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
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
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
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
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
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
Mr. Churchill instructed Ms. Thomson on some
changes to the drafts of the Annual Meeting Notice, Absentee Ballot
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
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
APPROVED BY BOARD OF DIRECTORS MARCH