Board of Directors
Regular Meeting
JUNE 4, 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 Maxwell, William (Squeak) Kossnar & Larry St. George

Board Members: Joe Price & 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 May 7, 2007. The motion was seconded, and the motion carried.

Mr. Baker moved to approve the Minutes of the Annual Meeting of April 7, 2007. The motion was seconded, and the motion carried.

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

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

Mr. Baker moved to approve the Prepaid Bills and Bills for Approval. The motion was seconded. Mr. Svider asked if one of the $1,610 monthly invoices for legal fees was entirely attributable to the Anslyn, et al. lawsuit, and Ms. Thomson confirmed that it was. Ms. Thomson noted that the street striping vendor, who last painted the stripes in 2004, increased his fee to $1,610 from $1,110. Ms. Kossnar noted that more boulders are needed where the Brooke Water chain link fence was knocked down. He also reported graffiti on the pump station, which is the second graffiti incident there. Brooke Water paid their fence man to reset the fence, but he didn’t perform. He discussed the matter with a Brooke Water representative the other day. There being no further discussion, the motion carried.

Ms. Shockley reported on the striping project, stating that Mitch and Mr. Sweeney helped mark the streets, and Mr. Kossnar took photos. There were no homeowner complaints, although some homeowners were out measuring.

Ms. Shockley is working on getting Brooke Water to improve their patch job in front of lot 214 where a water line break occurred over the holiday.

Mr. Sweeney commented on Ms. Shockley’s report item about a complaint from Mr. Cowell (VDMA owner) regarding a boat trailer and truck double parked on Moovalya Drive. Mr. Cowell told Ms. Shockley that he would damn well do as he pleases and park wherever and however he wants. Mr. Sweeney said he talked to Mr. Cowell about the striping project and that the Association was not going to stripe the VDMA portion of Moovalya, to which Mr. Cowell replied, ‘it’s a good thing because we own the streets’.

A motion was made to get a copy of the deeds on all the VDMA properties and send them to those owners with a courtesy letter letting them know that the streets belong to the Keys. Ms. Shockley has told Keys’ owners on Moovalya that they can park on the west side of the street as long as they stayed off the VDMA properties and didn’t block anyone’s driveway. When the striping project was going on, Mr. Sweeney said that four different VDMA owners told him, ‘Keys people have a right to use our street’. The motion was seconded. There being no further discussion, the motion carried.

Mr. Baker asked Ms. Shockley about the 7-day parking lot warnings she gave to four lot owners on the 23rd.

Ms. Thomson asked if a letter should be sent to lot 169 regarding an excessive number of renters’ boats and cars trespassing on both neighbors’ properties (driveways and docks) over the holiday weekend. No action was taken, since this is one of the issues Mr. Baker is currently working on with the short-term rental landlords.

Mr. Kossnar stated that Ms. Shockley and her team (Mitch and Patrick) did a great job with security over the holiday weekend. Ms. Shockley said that it was helpful to be able to talk to people when they checked in at the gate, and the gate stayed closed, which was not the case last year. Ms. Shockley reported that during the night shift Mitch stayed at the gate while Patrick patrolled every hour, so the gate was never left unattended. She reported underage drivers drinking and driving in golf carts, with one of them hitting a tire of a neighbor’s truck on Yaqui. The other golf cart was from a Hopi Drive lot, and both received reckless driving citations, after receiving repeated warnings. She said there were hardly any Rhinos over the holiday. Mr. Risen asked Ms. Thomson to send a letter to lots 190 and 210 advising them that if any similar incidents occur again, they will be reported to the Sheriff’s Office.

Mr. Chambers reported that the cable and telephone boxes by lot 173 were smashed. It was also reported that one of the poles at lot 198 was knocked down. Mr. Sweeney reported that poles on several other lots need replacing, ones that the Association put in for the homeowners. Mr. Sweeney also reported a broken pillar in the trash enclosure area, with another one ready to go, and three broken hinges. A fire hydrant is loose at the bridge and one by Mr. Baker’s house; both need clamping.

Ms. Thomson reported that the SCF of Arizona worker’s compensation policy went into effect on May 15.

Ms. Thomson discussed the insurance carrier’s request that the Association amend section 10.2 of the CC&R’s to delete the phrase ‘to the extent not covered by the Association’s insurance’. By deleting this clause, the Association has the option of making a claim for damages, not the obligation. For that reason the insurance company is not inclined to renew our policy unless that clause is deleted. Beaver Insurance informed Ms. Thomson that if we submit a letter indicating our best efforts to delete this clause from the CC&R’s, they will reconsider renewing our property damage/general liability and umbrella policies. Mr. Churchill advised Ms. Thomson to prepare a letter to the insurance company stating that we are putting the wheels in motion to seek such an amendment.

White line citations were issued to lot 4, two to lot 69, two to lot 131 & lot 161. Reckless driving citations were issued to lots 190 and 210.

Mr. Sweeney moved to include a proposed amendment to the CC&R’s deleting the phrase ‘to the extent not covered by the Association’s insurance’ from section 10.2 at an upcoming Special Meeting of Members. The motion was seconded, and the motion carried.

Mr. Churchill reviewed Ms. Shockley’s proposed Plaintiff’s Statement in the Small Claims complaint the Association is going to file against Brooke Water, and he gave his approval as drafted.

Ms. Shockley stated that the Tenant Information Sheets assisted her with checking folks in at the gate over the holiday.

Regarding the proposed CC&R amendment requested by the insurance company, Mr. Churchill suggested that perhaps the insurance company could put in an exemption clause in the case where if a member’s insurance doesn’t cover a damage incident, our company will pick up the claim, just as an interim measure until the CC&R’s are amended. Mr. Sweeney said he thinks we should focus on just proceeding with the amendment. Ms. Thomson reported that she just received a refund of the deductible from our insurance company on the recent claim, and she presumes that the subrogation claim has been paid and the matter is closed.

Mr. Sweeney made a motion that we contact Outwest Fabrication to replace the three broken hinges on the trash bin doors at a price not to exceed $200, and to contact Michael T. to replace and repair the two block columns at the trash enclosure at a price not to exceed $250. The motion was seconded, and the motion carried.

Ms. Thomson was asked to get lot 198’s permission for Mike Dyer to move two boulders over to the backside of the dumpsters to block off the short-cut access.

Mr. Sweeney and Ms. Shockley will do a drive-through inspection to determine which knocked-down poles need to be replaced or repaired and will make a presentation at the next meeting. After further discussion, Mr. Sweeney made a motion to approve the payment of up to $1,500 for the various pole repairs. Mr. St. George suggested that some of the cables be more visible, as they are too low. The motion was seconded, and the motion carried.

Mr. Sweeney moved to approve Barbara O’Connor’s engagement letter concerning her anticipated services for the 2006 reviewed audit. The motion was seconded. Mr. Churchill advised that the proposed reviewed audit is not in compliance with the audit provisions of the CC&R’s. There being no further discussion, the motion carried, with Mr. Svider abstaining.

Ms. Shockley questioned what the security needs would be for the 4th of July holiday, since the 4th is on a Wednesday. She suggests hourly patrols on the weekend before and the weekend after the 4th, and greeting people at the gate on both Fridays. Mr. Baker suggested splitting the typical holiday hours between the two weekends and adding a Wednesday night (7/4) patrol. Mr. Sweeney suggested playing it by ear.

Mr. Baker presented his rental regulations’ proposal that he would like emailed to the short-term rental landlords for their comments. Ms. Thomson was asked to type up the draft and e-mail it to the subject owners. Mr. Baker is seeking their comments within 15 days. Mr. Churchill advised keeping all the rental landlords in the loop but advised we can still proceed with the Special Meeting. Mr. Kossnar asked what it would cost to have security service at the gate every weekend to check people in. Mr. Svider voiced his more stringent recommendations for the maximum number of persons and proposed fines in reply to Mr. Baker’s proposals. There was a question regarding use of the word ‘trespassing’, and Mr. Churchill suggested changing the language to using or utilizing others’ facilities. Mr. Baker said that three people asked him about the motel submitting Tenant Information Sheets and guests parking at the limited dock space at the motel. Mr. Svider, owner of the motel, stated he has a 60’ dock, and his guests have not trespassed on neighboring docks, stating he does have his neighbors’ approval to use their docks if necessary. Mr. Baker said that he told these people that the motel is a commercial venture on commercial property.

Mr. Sweeney made a motion that Mr. Baker’s draft proposal be typed, with the changes as recommended by Mr. Churchill, and distributed to the entire rental community for comments. Mr. Baker seconded the motion. Mr. Svider said that if he were a renter, he’d pay the fine and break the rules. Mr. Sweeney stated that the fines are cumulative, meaning if they break one rule, they’re breaking other rules. Mr. Baker asked Mr. Churchill what the procedure will be once feedback is received from the rental community. Mr. Churchill stated that a Special Meeting of the members can be noticed once the Board has approved the proposals at the July 2 regular Board meeting. There being no further discussion, the motion carried unanimously.

Mr. Sweeney suggested that we look at the entire entrance area and tie in the project with the area at Riverside Drive where the wall and the tall oleanders are located. Another suggestion was made to utilize cables to block in the area, which would be more beneficial than removing the oleanders by the new wall. Mr. Stroud recommended straightening out the entire area, as it is looking shabby.

Mr. Kossnar asked that we enforce the storage violation by the owner of lot 215 who has left his truck parked in the Hopi Drive cul-de-sac for well over 72 hours. Mr. St. George stated that the owner of lot 22 on Moovalya Drive stores his property beyond the water meter. Mr. Churchill stated that some private properties extend beyond the water meter. Ms. Shockley said she would tell the owner of lot 215 to move his truck, as he is violating storage regulations.

There was a discussion about storage on vacant lots, and Mr. Sweeney said we need to enforce this regulation that is frequently violated. Storage on vacant lots is disallowed. A boat was stored on vacant lot 25 and was sitting entirely on the owner’s lot. Ms. Shockley stated she can’t enforce it if it’s left there more than 72 hours, as she can’t have it towed. Mr. Churchill said that storing on unimproved lots is not allowed, including boats, cars and RV’s. He said the Association can remove them at owners’ expense, and the CC&R’s are very clear on this point. Ms. Shockley stated there are two pontoon boats stored behind locked cables on vacant lot 98. Ms. Shockley suggested putting up poles at vacant lots to resolve the problem, and Mr. Sweeney said the matter will be addressed with the prior motion that was carried regarding poles.


The meeting adjourned at 7:50 p.m.
Submitted by Recording Secretary, Sue Thomson