LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
APRIL 2, 2007

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

ABSENT
Secretary/Treasurer: Chris Chambers
Board Members: Joe Price

OTHERS PRESENT
Guests: Al McPherson (lot 70), Barbara Risen (lot 184), Gary Anslyn (lot 113), Carl Bozeman (lot 61), Gerald Vesely (lot 144)
General Manager: Cheryl Shockley
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill (6:05 p.m.)

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

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

MINUTES
Mr. Sweeney moved to approve the Minutes of the regular meeting of March 5, 2007. The motion was seconded, and the motion carried.

Mr. Baker moved to approve the Minutes of the executive session of March 5, 2007. The motion was seconded, and the motion carried.

BOOKKEEPER’S REPORT
Work is set to begin this week on street maintenance. Mr. Baker made a motion to accept T&C Seal Coating’s correct proposal amount of $24,846 for the seal coating project, not including the $4,200 for the crack fill job. (Ms. Thomson read the wrong bid at last month’s meeting causing the faulty motion in March). Mr. Sweeney seconded the motion, and the motion carried.

Mr. Baker made a motion to approve the prepaid bills. The motion was seconded and carried unanimously. Ms. Thomson presented a bill from Mike’s Contracting for $4,713.42 for street repairs, $2,430 of which is attributable to the Brooke Water leak repair on Hopi Drive. Mike’s Contracting is seeking reimbursement from Brooke Water on behalf of the Association for that amount. Buckskin Sanitary District paid Mike’s Contracting $850 for new manhole covers. Mr. Baker moved to approve payment of Mr. Churchill’s February statements and Mike’s Contracting invoice for $4,713.42 for street repairs. The motion was seconded, and the motion carried.

Ms. Thomson reported that our insurance company is pursuing its subrogation claim against Mr. Keller on last year’s property damage incident. The attorneys asked for additional documentation, which she gave to the claims adjuster.

The CD account at National Bank will be opened after the annual meeting, when all signatories can meet at the bank to sign documents at the same time.

The eight Vista del Monumento owners who use the Association’s dumpsters have been billed their pro-rata, annual share.

Late fees were assessed on seven lots, and a letter was sent to lot 169 to repair his dock. Citations were issued to lots 29, 43 and 127.

GENERAL MANAGER’S REPORT
Ms. Shockley reported on the Hopi Drive sinkhole that was caused by a broken water pipe. No one knows how long it had been broken. She said the Brooke Water supervisor was rude to her and was noncommittal about them being financially responsible for the repair work. Ms. Shockley went directly to Brooke corporate headquarters to further pursue the matter. She is also waiting on their response to the photos she sent them of their mess left on Yaqui Loop. There was also a water meter leak at the end of Papago that was repaired over a month ago, and Brooke has not yet cleaned that up, and a letter is being sent to them.

The auto repair job at lot 141 was moved off site. There is also a car and trailer on Apache that needs to be moved. The owner was shown the CC&R’s, and he stated he didn’t think he was doing anything wrong, but he stated he would move them before the street sealing.

The RV at lot 32 has returned, and the property owner stated he was not aware of it, but he will contact the owner and ask him to move it. He was called again two weeks later, and it was moved just prior to it being towed.

Ms. Shockley stated that water pooled at the new berm at lot 202 after the recent rain. Mr. Stroud said the berm is too high. Mike’s Contracting will knock it down a bit, but moving it out won’t help the problem. The hot patch suffered some crumbling, but it will be resolved when the seal coat is done. Mr. Stroud reported that low-profile vehicles are high centering over the berm. Also, a new sinkhole is starting as a result of the Brooke Water hole.

Ms. Shockley has posted flyers for the crack filling project, and she will post more notices Friday for the seal coating to be done next week. She discussed the proposed schedule for each street closure.

Ms. Thomson was asked to get permission from the owner of lot 198 to use his lot for overflow parking during the seal coating project, in exchange for the Association weeding his lot.

OLD BUSINESS
Mr. Risen reported that the bike rack donated by the City of Parker has been installed in the parking lot. It just needs paint. Mr. Stroud suggested that the rack be placed across Navajo Lane in the new concrete area by the mailboxes.

It was reported that lot 10 has been fenced to prohibit entry. Mr. St. George stated that the neighbor was upset because the fence was attached to his structure, and he is now getting cracks.

NEW BUSINESS
Mr. Stroud stated that his neighbor at lot 203 noted there is more water pooling since the higher berm was installed. Mr. Sweeney stated that catch basins and drain pipes would probably not alleviate the problem, as they would just fill up with dirt and debris.

Mr. Svider suggested replacing the oleanders with a natural landscape next to the new wall by the dumpsters. Mr. Baker suggested that we address the taller oleanders and coordinate the landscaping of both areas at once.

Mr. Stroud noted that the cable barriers at lot 251, which property straddles the exit gate, need to stay up to keep out outsiders. Ms. Thomson will get the house plans to Mr. Sweeney so we can determine who is responsible for the barrier.

Mr. Baker discussed the 2007 and 2008 County Assessor’s valuations. He stated there are 15,000 parcels in La Paz County, and the entire assessed valuation change in the County resulted in a 7% change. Properties in the Keys equaled a 57% change, and we are being picked on. The canal lots increased while the Vista del Monumento Acres’ properties and Keys river front properties did not increase. Outlying areas of the County that showed increased sales prices showed no increase in assessed value. Mr. Baker urges Keys’ owners to appeal, and he recommends further appeals to the Board of Supervisors, and the Arizona Department of Revenue, if necessary.

Mr. Svider stated that the Board of Supervisors recently approved a contract with the Department of Revenue to enlist the services of a taxation worker to hear appeals at a cost of $150 per day. Mr. Risen recommended that persons who file an appeal follow up on getting their appeal results in a timely fashion so they don’t miss a deadline pursuing additional appeal rights.

Mr. St. George reported that the new construction on lot 18 is to be entirely of blocks, and two semi’s full of block need to be unloaded and stored for about five weeks. Mr. Sweeney stated that if the block has to be hauled back and forth from the drop site to the construction site, the newly coated streets will get torn up. Mr. Sweeney suggested the block be stored on the neighbor’s property, if the owner agrees (the two owners are friends), but that the lot 18 owner should be financially responsible for any damage that might occur. Mr. St. George stated that the owner told him that he would pay for any damage. Ms. Shockley said the owner will be here this week, and she will talk to him.

Mr. Bozeman spoke about the parking violations he received early on when construction workers at his house parked over the line, and he felt that construction workers who park over the line are now getting a break. It was noted that the Association has a different General Manager now, and that it is at the discretion of the GM whether or not to cite. Also, if a contractor is loading and unloading his truck, he is not cited, and construction people are now checking in with the GM. Michael T has been working in the Keys for awhile, and he is not getting special treatment. Ms. Shockley stated that she sometimes gives warnings, and that repeat violators get cited. Also, Mr. Sweeney stated that we had overwhelming non-compliance in the beginning, but now most people comply. Ms. Shockley stated that if someone is present when she sees a violation, she will give them a warning, but sometimes they refuse to move, in which case they get a citation. She tells construction workers to move. She’s been doing this for a year now.

Mr. St. George said he has attempted to get people to slow down and to pick up after their dogs.

Ms. Shockley stated that after observing last year’s security service, she would like to make a proposal to provide 24-hour security service for the upcoming holidays. She would have two males on duty at night, and she would serve on the day shift. She feels her proposal would make sense, since she knows people in the Keys. She will make her proposal next month.

ADJOURNMENT

The meeting adjourned to Executive Session at 6:56 p.m.
Submitted by Recording Secretary, Sue Thomson

APPROVED BY BOARD OF DIRECTORS MAY 7, 2007