Board of Directors
Regular Meeting
MAY 7, 2007

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
Secretary/Treasurer: Chris Chambers
Board Members: Jack Sweeney, Bob Stroud, Gary Svider, Joe Price, Richard Jaschke & Joe Maxwell

Board Members: William (Squeak) Kossnar & Larry St. George

Guests: Rob Troxler (lot 160), Barbara Risen (lot 184), Blane Coon (lot 54) (6:45 p.m.)
General Manager: Cheryl Shockley
Bookkeeper/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill (6:25 p.m.)

Mr. Sweeney moved to approve the April Profit & Loss Statement. The motion was seconded. Ms. Thomson answered a question about security deposits for two new rental properties, stating that the deposits have been made. The motion carried.

Mr. Baker moved to approve the April Balance Sheet. The motion was seconded, and the motion carried.

Mr. Baker moved to approve the Minutes of the regular meeting of April 2, 2007. The motion was seconded, and the motion carried.

Mr. Sweeney moved to approve the Minutes of the executive session of April 2, 2007. The motion was seconded, and the motion carried.

Ms. Thomson reported that all the rental agencies and individual owners who have short-term rentals are now submitting Tenant Information Sheets on their rentals. There are two additional rental properties this month.

Ms. Thomson stated she faxed an application to SCF of Arizona for a new worker’s compensation policy on April 13, and she will follow up regarding the status.

Our insurance agent called Ms. Thomson on April 12 to inform her that the Association’s insurance carrier for liability/property damage/umbrella coverage notified our agent that they will not be renewing the policies on June 15. Their decision was due to the two claims that have been made on gate damage over the last two years, the latest incident going into litigation with papers just served on the homeowner. Our agent immediately telephoned the underwriter and has been working with underwriter in an attempt to reverse their decision. They subsequently asked our agent to communicate with us to find out if there are preventative measures we could take to avoid future incidents. The underwriter is particularly interested in how the Association communicates with its owners. Mr. Baker, having been previously informed of this decision, stated he was going to contact the agent who was formerly with Ramco-Calzona, our previous agent.

Ms. Thomson reported that Mike Roberts picked up a lot of trash after the Easter holiday. He noted that some of the items dumped over the holiday were pallets, patio furniture, tires, batteries, a shower stall, a refrigerator, construction materials and boxes not broken down. This was the first year an extra dumpster was ordered for the Easter holiday, and Ms. Thomson suggested that it remain on site for 10 days, enough to cover the entire Easter week holiday, rather than just 3 days, since it appears folks are doing a lot of spring cleaning during Easter break.

There were no past due accounts this month. Citations were issued to lots 4 and 114.

Mr. Baker made a motion to approve the prepaid bills, bills for approval and an invoice submitted by Mike’s Contracting for $443.23 to level the area by the new wall, spread rock and install a boulder. The motion was seconded, and the motion carried. Mr. Stroud inquired whether we should drop more boulders by the generators, and Ms. Shockley said she is addressing that issue. Mr. Sweeney suggested that two or three boulders should be placed on lot 198 for the benefit of the Association. Ms. Shockley suggested some by the oleanders. She reported that Mike’s equipment is out of the yard right now, so the boulders will have to wait until the equipment returns.

There was a discussion about worker’s compensation insurance coverage issues, including audit reporting, subcontractor classifications, and coverage issues in general.

Ms. Shockley stated that the street striper will be here Wednesday to re-stripe the streets.

Brooke Water has agreed to pay only one-half ($1,214.98) of the street repairs that were necessary because of their broken water line on Hopi Drive.

Doug with APS has requested that the oleander blocking access to their transformer be removed, or they will rotate the transformer at a cost of $1,500 to the Association. Ms. Shockley was asked to have the oleander removed.

The bike rack has been painted with one coat, and another coat will be put on it. More boulders will be placed as well.

Ms. Shockley reported a street problem on Moovalya Drive at lot 40. Tim, the local detailer, is responsible for turning the street into a rust-colored mess due to the use of acid while detailing the homeowner’s boat. Two homeowners complained to Ms. Shockley, and she left a message with the lot 40 owner. Ms. Thomson is to send a letter to him after Ms. Shockley emails her some photos.

The matter of whether or not to paint new stripes on the west side of Moovalya Drive, in front of the Vista del Monumento Acres’ properties was tabled for discussion later in the meeting.

Ms. Shockley submitted her detailed proposal for security service over for Memorial Day holiday.

There was a discussion about APS cutting down trees on homeowner properties on Moovalya Drive, and Mr. Price stated that APS absorbs the cost of doing so on those properties because they are within their utility easements, which the homeowners have authorized. Our situation with the oleander blocking the transformer is not the same issue, since there is no utility easement on that parcel owned by the Association.

The following were nominated as the Association’s officers for the new year:

Bill Risen – President, nominated by Mr. Baker
Jack Sweeney – President, nominated by Mr. Maxwell (declined)
Gary Svider – President, nominated by Mr. Maxwell
Chuck Baker – Vice President, nominated by Mr. Sweeney
Chris Chambers – Secretary/Treasurer, nominated by Mr. Sweeney

The nominations were closed, and by a show of hands the following were elected:

Bill Risen – President
Chuck Baker – Vice President
Chris Chambers – Secretary/Treasurer

Mr. Sweeney made a motion that the Association accept Brooke Water’s proposal to pay for one-half of the street repairs in connection with the Hopi Drive street repair necessitated by the broken water line. There was no second, and the motion died.

Mr. Chambers made a motion that the Association pursue collection in Small Claims Court of the entire amount of the repair cost from Brooke Water Company on the Hopi Drive street repair necessitated by their broken water line in the amount of $2,429.96. The motion was seconded by Mr. Svider. It was noted that Brooke Water authorized a $40,000 repair job for a water line break at Lake Manor Market. In addition, it was an out-of-town vendor, and they did a bad repair job. Mr. Price stated that he doesn’t want any attorney’s fees to accrue on this matter. Ms. Shockley stated she would do the legwork in getting the case filed, and Mike Dyer will be a witness at the hearing. There being no further discussion, the motion carried. Mr. Churchill requested that he be provided a copy of plaintiff’s statement for his review prior to Ms. Shockley filing the complaint.

Mr. Risen recommended that a stripe be painted on the street in front of the Vista del Monumento Acres’ properties. Mr. Sweeney recommended against doing so. Ms. Shockley stated she received only one complaint in the last year from a VDMA owner. Mr. Risen stated he received complaints from another VDMA owner involving renters at lot 43 who were parking across the street. Mr. Sweeney asked whether or not we would need a survey to make sure we wouldn’t be encroaching on their property. Mr. Risen pointed out that the rules say one cannot park ‘between’ the white lines, which is problematic if there is only one line. Ms. Shockley followed up on her VDMA owner complaint saying that the problem was solved by the owner of the car, who had a lot sticker on it, by moving it off the VDMA property. Mr. Sweeney suggested there may be an argument if we stripe it.

Mr. Price made a motion that the Association not stripe the portion of Moovalya Drive in front of the Vista del Monumento Acres’ properties. Mr. Baker seconded the motion, and the motion carried.

There was also a discussion about whether or not to stripe the area by the first bridge, at lot 199, and it was decided not to do so. There was also a discussion about the 25’ distance between paint markings at lot 215 at the end of Hopi Drive. Mr. Baker made a motion that Mr. Sweeney re-mark the stripe markers at the end of Hopi Drive so that the distance between the white lines is consistent with that of the other cul-de-sacs. The motion was seconded, and the motion carried.

Ms. Shockley’s security service proposal was discussed, with Mr. Stroud inquiring about liability issues. Mr. Baker said it was a good proposal. Mr. Risen referred Mr. Stroud’s inquiry to Mr. Churchill. Mitch’s qualifications were discussed, since he would be in charge of the night shift. He formerly managed Echo Lodge for one year as day manager. Mr. Risen asked Mr. Churchill, in addition to liability issues, if there are any licensing issues. Mr. Churchill stated, off the top of his head, that if they are privately employed, we probably don’t have any licensing requirements. He advised having our worker’s compensation policy in place prior to the holiday weekend.

Mr. Baker moved to accept Ms. Shockley’s security service proposal as presented, pending worker’s compensation insurance coverage and resolution of any liability coverage issues. The motion was seconded, and the motion carried, with Mr. Price abstaining.

Mr. Svider asked if everyone who has completed a Tenant Information Sheet will know that they must comply with Association rules prior to entering the premises over the holiday. Ms. Shockley stated that everyone will be talked to before gaining entry through the gate. Mr. Churchill advised that we need to be more careful about guests’ gate access.

The continuing problem of the fallen barrier at lot 251, which property straddles the exit gate, needs to be permanently fixed. Ms. Thomson gave the construction plans to Mr. Sweeney for review, and the former owner who built the house agreed to maintain a security barrier. The property changed hands after the house was built, and Ms. Thomson was asked to write a letter to the current owner requesting that he either place a permanent barrier to prohibit unauthorized entry into the Keys, or the Association would have to take care of it, at the homeowner’s expense.

Mr. Baker reported on Laura Lancaster’s (lot 166) follow up e-mail to their discussion at the conclusion of the Annual Meeting. Ms. Lancaster, who states she is a problem solver, has been working with him to come up with ideas and suggestions to remedy some of the Association’s rental-related problems. She intended to be at tonight’s meeting, but she had to cancel at the last minute due. Mr. Baker also received an e-mail from Tricia Pollett which said that she wanted him to specify what the concerns are that the Association would like the owners (who rent) to address.

Mr. Baker reported that his wedding on April 28 at his house was crashed by six people from two different groups. Four persons (renters at lot 110) were in the food line ahead of him and his wife. There were two more wedding crashers (renters at lot 97). All were asked to leave.

Mr. Baker said that he recently counted 33 people at a weekend rental across from his house. Mr. Baker recommends resolving the overcrowding issue by limiting maximum occupancy to 10 people per property. He has talked with Carla at Security Real Estate, Robert Gory Realty and Betty Hunter Realty about this, the latter who state they allow only 8 people. It was suggested that the number of cars and trailers be limited to the amount of space available at each lot, and that the number of boats and water toys be limited to the dock space available at each property. Regarding Ms. Shockley introducing herself to the individuals who are listed on the Tenant Information Sheets on check-in day at the rental property, she could just say hello, welcome, here’s a copy of the rules, call me if you have any problems, I will call you if there’s a problem. That let’s them know someone is keeping an eye on them. The owners who rent said that they approve of that procedure. Mr. Baker did not get into a discussion with Ms. Lancaster about fines, such as one for non-submission of Tenant Information Sheets. He suggested we have another rules’ meeting, where he thinks we’ll get 90% cooperation from owners. He believes that a maximum occupancy of 8 persons in a rental unit is a good number, and he will put a better proposal together for the Board’s review. Then it can be sent to Ms. Lancaster, and we can then proceed to call a special meeting.

Mr. Sweeney recollected how nothing happened last year, except getting hit with a lawsuit, so we should stay on top of the proposal and get it going before next month.

It was decided that the first step would be to get the proposal reviewed by the Board, and then send a draft of the proposal to the 22 homeowners who rent. The Board would then approve the final document, and it would go out to all owners with a Notice of Special Meeting, at which time a vote would be taken. Mr. Coon said he believed it would be a problem enforcing this, as Ms. Shockley is not a cop. Mr. Churchill stated we have most of the CC&R’s to cover these issues, but we have no fines, such as violations of the single-family rule. We have to establish fines based on the Association’s CC&R’s.

Mr. Baker commented on the remodel job at lot 75, where only 8’ of existing wall is left to build onto. Mr. Sweeney stated that the existing wall is on the building plans, and our supplemental plan notes require a civil engineer for the project. They are framing a wall around an existing wall, and the engineering was short ¾” short of the required 10’ setback.


The meeting adjourned at 7:30 p.m.
Submitted by Recording Secretary, Sue Thomson