Board of Directors
Regular Meeting
JULY 2, 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
Secretary/Treasurer: Chris Chambers
Board Members: Jack Sweeney, Bob Stroud, Gary Svider, William (Squeak) Kossnar & Larry St. George

Vice President: Chuck Baker
Board Members: Joe Price, Richard Jaschke & Joe Maxwell

Guests: Kathy & Ty Northcutt (lots 73/102), Carla Faulkner, Security Real Estate Property Manager, Laura Lancaster (lot 166), Malin Manos (lot 53), Joann Saunders-Van Anrooy (lot 30), Kaye Bozeman (lot 61), TK and Jamie Sternberg (lot 139), Gerry Vesely (lot 144), Ken Beard (lot 108), Joan Smith (lots 103/104), Blane Coon (lot 54), Barbara Risen (lot 184), and one unknown guest (arrived after introductions made).

General Manager: Cheryl Shockley
Business Manager/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill (6:15 p.m.)

Mr. Beard expressed his concern over the people who rent their houses being treated differently; the proposed fines should be applied to all owners and their guests. He commented on the Baker wedding crasher comments and wondered how many people were at his house for the wedding in the first place. He said he can’t believe that renters are causing all this damage. He said he hasn’t had any problems with the three or four times he has rented his property this year. The fines should apply to everyone. Mr. Beard moved to hold every third monthly Board Meeting in Southern California. Mr. Risen said that change would require homeowner approval. Mr. Beard said there needs to be more communication and less fines. He just started renting his property last year.

Ms. Lancaster produced a copy of a packet she prepared and sent to the Association via UPS, which was to be reviewed by the Board prior to tonight’s meeting. Ms. Thomson said she did not receive the delivery, because UPS can’t deliver to the Navajo Lane address, as there’s no building affiliated with that address. Ms. Lancaster displayed orange sheets that she proposes be posted on the outside of rental properties showing contact information, as well as a laminated copy to go inside the rental property. Ms. Lancaster said she did not receive the returned package from UPS, but she will re-send it via the postal service so the Board can review it prior to the August meeting. She said she attempted to cover all the bases in dealing with rental issues.

The unidentified guest asked how one goes about putting a topic on a meeting agenda. If there’s no agenda item, there can be no vote. Mr. Risen stated that we are just in the discussion stage before going to the Board for a decision on how to present the issues to all owners for a vote.

In addition to the Prepaid Bills and Bills for Approval, Ms. Thomson presented an invoice from Advanced Gate Systems for $560.30 for a new motor for the exit gate, and an invoice from Cheryl Shockley for $140.18 for a replacement computer monitor. Mr. Sweeney moved to approve the June Prepaid Bills and all proposed Bills for Approval. Mr. Kossnar seconded the motion, and the motion carried.

Mr. Chambers moved to approve the June 30 Balance Sheet. Mr. Sweeney seconded the motion, and the motion carried.

Mr. Stroud moved to approve the June 2007 Profit & Loss Statement. Mr. Sweeney seconded the motion, and the motion carried.

Mr. Kossnar requested a deletion on the last page of the June minutes regarding something he didn’t say. Mr. Sweeney moved to approve the Minutes of the regular meeting of June 4, 2007 as corrected by Mr. Kossnar. Mr. Kossnar seconded the motion, and the motion carried.

Ms. Thomson announced that Mr. Baker was unable to attend tonight’s meeting because he thought the meeting had been pushed back a week due to the holiday. She stated that Mr. Baker received three substantive responses to his rental proposal. The responses were distributed to the Board prior to tonight’s meeting in anticipation that the Board would discuss them. Some guests complained about driving a long way to attend tonight’s meeting, thinking a set of rental rules would be passed. Ms. Thomson explained that was not going to be the case, as the owners are the only ones who can vote to establish rules and fines, but the Board has to first discuss and decide what is to be presented to the owners for a vote.

Mr. Vesely, who is not an owner who rents but an interested party, requested that his name be put on the distribution list and that he be sent emails already distributed. Ms. Thomson asked him to provide her with his email address. Mr. Beard likewise stated that anyone who is interested in discussions about these proposals should be put on the list.

Mr. Churchill, having just arrived, stated that those guests who came here tonight thinking the Board would make a decision setting rules, said that the Board can’t do that. The process is that the Board gets together to talk after feedback is sent out. The Board has to come to a consensus before issues can be brought before the owners. He said the Board likes to receive input, and that is what we’re hoping to get tonight.

Ms. Northcutt inquired whether it would be possible to have an occasional meeting on a weekend. Mr. Churchill replied by saying there’s an inherent problem with people who live here full time about wanting to get out of Dodge on the weekends. He said we may be able to have telephonic meetings, as we do want homeowner input, and the Board represents all the homeowners. Ms. Sternberg asked if someone in the Association can look into telephonic meetings. Mr. Chambers stated there’s Internet in the building. Mr. Churchill stated that a possible solution would be through AT&T, along with a good speaker phone. Ms. Thomson stated she would look into it. Mr. Beard asked again if every third meeting could be held in California.

Ms. Thomson presented a protest of two citations issued to lot 131. Mr. Risen referred the matter to the Protest Committee consisting of Mr. Svider, Rob Troxler and Mr. Kossnar.

Ms. Thomson reported on her research regarding the Vista del Monumento Acres’ owners purporting their ownership of Moovalya Drive. Ms. Thomson stated the VDMA owners’ legal descriptions on their Warranty Deeds grant them a "portion of that area of Moovalya Drive….” However, the Keys owns all the streets inside the gate, including Moovalya Drive, via a Special Warranty Deed recorded on 6/5/70, docket 610, page 426. This was the basis for the Association being able to obtain a recent title policy on the streets. Ms. Thomson will provide Mr. Churchill with a copy of the pertinent documents.

Ms. Thomson presented Brooke Water’s formal response to our Small Claims complaint concerning their refusal to reimburse the Association for street repairs due to the Hopi Drive sinkhole, which occurred because of a break in one of their water lines. The matter is set for trial on July 18. Ms. Shockley stated an officer will need to attend court. She has all the photos of the incident. She said that Brooke never told us not to fix the street after they repaired the water line. She also stated that Brooke Water has not properly patched their repair job at lot 214, and their fence is still down by the ramp. Mr. Chambers stated he could attend the hearing if he’s not out of town. Ms. Thomson said she would advise Mr. Baker about it when he returns.

Ms. Thomson reported two feedback complaints from Mr. Lyons, one of the owners of lot 67, regarding the construction project across the street at lot 75. Mr. Lyons reported that he was blamed for a flooding incident at the lot 75 construction project recently, which he denied being a part of. He inquired of the Association whether it should be mandatory for all construction sites in the Keys to be fenced in. More recently, Mr. Lyons complained about construction work starting at 4 a.m. The incident involved cement trucks showing up at that hour to pour the foundation. Mr. Stroud said there is a County ordinance against starting work before 8 a.m. Ms. Thomson said she could find nothing in the Association’s CC&R’s about it, other than the general nuisances’ clause at section 12.6. Mr. Chambers said that the Sheriff’s Office was called to his house when he poured concrete before 8 a.m. Mr. Risen stated this is a County ordinance issue.

Ms. Shockley reported that Michael T. fixed the block pillar, and Mike the welder fixed four hinges at the trash enclosures. She did the repainting. Mike Dyer placed a boulder where the gate is pushed back to block access. Mr. Ayers, lot 215, moved his truck off the street. Ms. Shockley said that Brooke Water will fix their patch job in front of lot 214 at their convenience, when they have more jobs in the area.

Ms. Shockley stated she gave Mr. Stroud an estimate of the drainage job at lot 202, further stating the owner next door needs to approve any digging necessary to locate the pipe. She reported a dispute between the owners of lot 213 and lot 212 regarding a messy palm tree at lot 212 that needs cleaning up. Ms. Faulkner, who handles property management of lot 212, will talk to the owner.

Mr. Chambers asked if the gardener could sweep the rocks off the boat ramp every couple of weeks. It was noted that Brooke Water is responsible for the mess due to their backwashing which floods the ramp and deposits rocks on it. Ms. Bozeman asked if the Army Corp. knows about this, and Mr. Risen stated that it’s not our property.

Ms. Shockley reported a problem last week with one of the local rental agents not properly instructing renters where to place ID tags on boat trailers parked in the parking lot. She stated she towed an unmarked trailer from the lot, and the owner later told her the tag was not on the tongue but at the rear of the trailer on the undercarriage, which was not plainly visible on her walk-around inspection of the trailer. The tow truck operator could not find a tag either. Ms. Shockley informed the rental agent where tags are to be affixed, which is on the trailer tongue. In the case of a vehicle, the sticker must be on the windshield. Visitor passes must be placed on the vehicle’s dash, and stickers and passes should not be covered up by sun shades. She stated there have hardly been any towaways this year as compared to last year. Ms. Faulkner said when she gives paperwork to her renters, she hands them the visitor passes and ID tags along with Robbie’s (A Toe Truck) business card and says ‘take your pick’.

Ms. Shockley reported that there are still a few who are not complying with rental procedures. RGR is not giving us their Tenant Information Sheets, even though they said they would start doing so. The current citation protests by lot 131 involve an RGR rental, and RGR says they did not rent that property on the two dates the citations were issued. Not having any Tenant Information Sheets inhibits the protest procedure. Ms. Shockley said there were people in the house on those dates. Ms. Shockley expressed her appreciation to all of those who are complying with rental procedures and rules.

Mr. Sweeney stated that the pole repair project has been delayed, as Stan Vescio has been busy. He said he would get with him next week.

Mr. Churchill said that Mr. Baker was hoping to be here tonight, and that Mr. Baker expressed his surprise at the amount of resistance he received to his recent proposal to the short-term rental landlords. Mr. Churchill said that Mr. Baker was attempting to be a peace maker. Mr. Sweeney reported that there was no intent in the proposal to preclude renters from parking in the common lots. Ms. Thomson confirmed that fact.

Mr. Churchill went on to say that Mr. Baker intended no hostility about renting. Mr. Churchill pointed out that a house can only be occupied by a ‘single family’, and that’s carved in granite. Landlords have every right to rent within the confines of the CC&R’s. When a house is occupied by other than a single family, it’s a violation. If all residences were rented to single family occupants only, the intent of the CC&R’s would be complied with. As long as landlords and owners comply, there are no issues. Mr. Churchill said that there are homeowners themselves who behave badly, so they are not perfect either. That is what Mr. Baker was trying to say by limiting the maximum number at 8-10, which is within the confines of a single family. If a house is being occupied by 15-18, Judge Burke would not deem that a single family occupancy.

Mr. Kossnar replied to Mr. Beard’s earlier inquiry about how many guests were at Mr. Baker’s wedding by stating that those guests didn’t spend the night. Mr. Churchill stated that he has had as many as 50 daytime guests, but they go home after the party. He said some houses in the Keys have been turned into mini-motels.

Ms. Lancaster asked that everyone comply with regulations.

In response to the single-family clause, the unidentified guest said some houses are owned by a partnership, and that’s a violation of the CC&R’s.

Mr. Risen stated that he wants Mr. Baker to be present for this discussion.

Ms. Lancaster referred to her proposed rental packet she prepared which contains a checklist of updated email addresses and telephone numbers. She said she is willing to submit the packets to homeowners at her expense. She also said that a list of non-licensed vehicles should be provided to the General Manager, as she thinks it is fair that the Association knows who’s visiting. The packet also includes the necessary items for rental contracts. She has posted signs on both the street side and the canal side of her house with contact information.

Ms. Shockley said she believes that rental landlords are trying to comply and she appreciates what people are doing to make it easier. Mr. Stroud addressed the guests and stated that we are trying to find solutions, and if you agree to the packet, then we’re all for it. Ms. Shockley said that some of the problems come from family members of owners, who say they aren’t aware of the rules, but then they don’t respect the rules anyway even after being warned.

Ms. Lancaster stated that bad rental agents should not be allowed to handle rentals.

Mr. Churchill said that he has represented the Board for about 25 years, and he does not recall the Board ever asking him about occupants of homes and people parking on other people’s properties. He said it is difficult for the Board to pursue action against tenants, because they come and go within a few days, and we don’t know them. The owners, we do know. He said rental agencies could be breaking the rules, but it would be costly to make them comply with the rules. It’s easier if the homeowners have their agents comply.

Mr. Beard says he still pays for the same facilities and utilities that everyone else does.

Mr. Risen said that the best asset is an owner’s next door neighbors. He reported an incident last night at lot 212, where someone urinated from and jumped off the roof. Ms. Faulkner was asked if she knew about it, and she said she did not. Mr. Coon said he witnessed dancing on a kitchen table at a rental property. Ms. Faulkner said that if she knows, she can go over and talk to people, and she would have handled the situation at lot 212 had she known about it. Mr. Kossnar said there are tons of people here on the weekends.

Ms. Lancaster asked if it would be possible to have a monthly guest gate code, one that could be changed each month, and Mr. Sweeney said it’s possible. Mr. Sweeney reported that two males walked into the Keys through the front entrance walkway after midnight recently, and they left with stolen property. They were later arrested, and the stolen property was found at house of one of the guys. Both were locals, and the incident was picked up on one of the Association’s surveillance cameras.

The meeting adjourned at 7:15 p.m.

Submitted by Recording Secretary, Sue Thomson