Board of Directors
Regular Meeting
SEPTEMBER 10, 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, Gary Svider, Joe Price, William (Squeak) Kossnar & Richard Jaschke

Vice President: Chuck Baker
Board Members: Bob Stroud, Larry St. George & Joe Maxwell

Guests: Rob Troxler (lot 160); Laura Lancaster (lot 166) and her brother Garner Lancaster; Carla Faulkner, Security Real Estate Property Manager; Barbara Risen (lot 184); Sterling Pratt (lot 120)

General Manager: Cheryl Shockley
Business Manager/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill (6:10 p.m.)

Mr. Risen commended Ms. Faulkner for doing a good job as rental agent for Security Real Estate.

Ms. Lancaster’s information packets which contain a multitude of ideas concerning the issues and problems the Association is currently dealing with were passed out to the Board members present at the meeting. Ms. Lancaster recently re-mailed the packets to the Association via the postal service, and Ms. Lancaster said she had amended some of the initial documents to address some issues that were discussed at the July meeting. Ms. Thomson stated she reviewed the contents of the packet before the meeting and thought it was very detailed and well presented. Ms. Lancaster would like the Board members to look over the information as ideas and concepts, and that it should be viewed as a starting point. She said there has been a lot of complaining but no action. She stated that everyone should follow the same rules. Mr. Risen asked Ms. Lancaster if there has been a commitment from the five plaintiffs in the lawsuit against the Association, and Ms. Lancaster said there has been a commitment from them.

Mr. Sweeney presented remodel plan for lot 185, which is the house that had a roof fire awhile back. The plans call for a new dock and patio remodel. He said the plans appear to be in compliance with all the required setbacks. Mr. Sweeney made a motion that the remodel plans for lot 185 be approved, once legal counsel has reviewed and approved them. Mr. Risen asked that we take into account proper outdoor lighting regarding high-intensity spotlighting; lighting should be in compliance, with no spotlights. Mr. Price seconded the motion.

Mr. Pratt was present to answer any questions regarding the remodel plans for lot 120 which were previously given to Mr. Sweeney. A construction deposit was given to Ms. Thomson. Mr. Sweeney clarified with Mr. Pratt that the 18’ distance on his plan from the slab needs to be 18’ from the street, not the slab. Mr. Pratt said he was okay with that. Mr. Sweeney made a motion to approve the lot 120 plans, subject to Mr. Churchill’s approval. Mr. Chambers seconded the motion. Mr. Kossnar pointed out that High Tech Surveyor misplaced pins, resulting in a 5’ error. The pin was moved, and the kid working for HTS was not licensed and admitted to the mistakes. So now the pins don’t line up. Mr. Sweeney said that if we challenge the survey, we have to then get out own surveyor. Mr. Kossnar asked why the pin was moved out further. Mr. Pratt said he has a certified letter from the surveyor. Mr. Kossnar wants to go on record that the pin has been moved. Mr. Sweeney asked that Mr. Pratt fax us the certified letter from the surveyor. Mr. Price asked if Mr. Pratt has previously presented any plans on the property to La Paz County. Mr. Pratt said he has not. Mr. Churchill having reviewed the plans during this discussion stated that he has no problem with them as long as they contain a note that the 18’ measurement is from the street.

Mr. Churchill having reviewed the plans for lot 185 said they were fine. There being no further discussion, the remodel plans for lot 185 were approved.

There being no further discussion, the remodel plans for lot 120 were approved.

The Traffic Committee consisting of Mr. Troxler, Mr. Svider, Mr. Kossnar and Ms. Shockley reviewed two citation protests prior to the meeting. Ms. Thomson read the formal protests from lot 132 and from lot 203, both white-line citations.

Mr. Burke (lot 132) stated that the white lines were not painted in the same place as before the streets were done, and there was no room for him to park his new vehicle. Mr. Svider stated that the lines were straightened out when the stripes were redone, and that if the vehicle in question had its mirrors moved in, there would have been enough room to park within the white line. It was the unanimous consensus of the Traffic Committee that the citation be upheld. Mr. Sweeney made a motion that the Association uphold the 6/4/07 white line citation issued to lot 132. Mr. Price seconded the motion, and the motion carried unanimously. Ms. Thomson is to notify the homeowner of the outcome of his protest.

Ms. Krysko (lot 203) stated that she was not aware of the rules. Ms. Krysko has been a Keys’ homeowner for at least as many years as the Association established rules and fines. In addition, the Association has on numerous occasions distributed information to owners relating to the rules, including discussions at annual meetings. It was also noted that she could have parked the cited vehicle within the legal area. For these reasons, it was the unanimous consensus of the Traffic Committee that the citation be upheld. Mr. Chambers made a motion that the Association uphold the 7/5/07 white line citation issued to lot 203. Mr. Price seconded the motion, and the motion carried unanimously. Ms. Thomson is to notify the homeowner of the outcome of her protest.

Mr. Risen reminded everyone that the Board is not exempt from parking rules.

Mr. Sweeney moved to approve the Minutes of the regular meeting of July 2, 2007. Mr. Kossnar seconded the motion, and the motion carried unanimously.

Motion was made to approve the July prepaid bills and bills for approval. The motion was seconded and carried unanimously.

Ms. Shockley having previously submitted her July General Manager’s Report stated there was nothing newsworthy to expand upon at this time, with the exception of lot 34 guests who were diving off lot 19’s diving board (trespassing). The guests were told that they were on private property, and when they had to be told again, the Sheriff’s Office was called. They went to the lot 34 residence and worked it out with the homeowner. The guests later apologized to Ms. Shockley.

Ms. Thomson said the items in her July report would be followed up with more current information in her August report.

Mr. Price made a motion to approve the July Profit & Loss Statement. Mr. Svider seconded the motion, and the motion carried unanimously.

Mr. Sweeney made a motion to approve the July Balance Sheet. Mr. Price seconded the motion, and the motion carried unanimously.

Ms. Shockley reported on several repeat golf cart offenders, mostly kids. She is trying to get the speeding under control. She said there are fewer rhinos than there used to be, and the Labor Day holiday was quiet and uneventful, aside from the usual speeding and several parking violations.

Ms. Shockley reported that Mr. Cowell, a Vista del Monumento Acres’ owner, was taken to the hospital by ambulance, and he had the driver stop the ambulance at the gate so he could yell at security, threatening to sue the Association because it let a car park in “his street”.

Ms. Shockley reported that the poles at vacant lot 198 were reinstalled, and bigger poles with chains were installed in concrete on two other vacant lots, on Hopi and Moovalya. They were painted red with reflective paint, as was the existing one on Yaqui. She reported two inoperable buoy lights, one at the main, southern entrance and one at the entrance to all canals. New lights are on order. She reported that the recent storm knocked out the video equipment. Mr. Sweeney reported the hard drive burnt out due to the lightning. He said either a repair or replacement will be needed at a cost of $300 to $375, depending on whether or not other circuit boards were knocked out. He reported that we could upgrade to double the storage capacity for about $700 to $1,000, and he recommends that we double the storage. The computer is going back to the service center for repair. Mr. Risen asked how many perpetrators the camera has caught since we installed it, and Mr. Sweeney said that he has turned over three sets of tape to the Sheriff’s Office. Mr. Risen asked if we needed to upgrade the camera, and Mr. Sweeney said there’s no reason to do that because it still works fine. Mr. Kossnar made a motion that the Association upgrade the computer system at the gate in an amount not to exceed $1,000. The motion was seconded, and the motion carried unanimously.

Ms. Shockley reported that the drain at lot 20 by the south ramp got clogged with concrete debris in the rainstorm. Stanton recently poured a floor next door, and that could have been the cause. Ms. Shockley and Mitch will try to hose it out, as it’s in the street and belongs to the Association, but she asked that the Association look into it.

She also reported that the “no jumping” signs on the first bridge were tampered with, where someone scratched off the “no”. New signs are being made, and Ms. Thomson reports they are not ready yet.

Ms. Shockley received a complaint about double parking of boats at JT’s on the Keys, and asked for clarification on the permissibility of this. Ms. Shockley said that the owners were told by JT’s personnel that it was okay to double park boats at the dock to load and unload. Ms. Shockley talked to Jody at JT’s who said that they have permission to use the neighbor’s dock, but not for overnight parking. Mr. Risen said that anything parked in the water is a Sheriff’s Office issue; we don’t own the water. Mr. Sweeney said that it may only be a Sheriff’s Office matter if there’s a safety issue. He also said that the canals are a Federal waterway.

Ms. Shockley reported a Sea Doo in the middle of the canal this morning. The fluctuating water caused it to float off a ramp.

Mr. Chambers stated that Brooke Water is to remove the tumbleweeds by the north ramp. It was reported that Brooke may fence off the ramp because we filed a Small Claims suit against them regarding the Hopi sinkhole.

Ms. Thomson reported that Brooke Water just asked for another continuance of the trial. She has not yet heard from the judge on whether or not their request will be granted.

Ms. Thomson reported that the Association’s CPA has completed the reviewed audit for 2006. Only some minor fine tuning to the balance sheet accounts was needed. Ms. Thomson said she made the required journal entries, printed new financials and compared them for accuracy with the CPA’s financials, and everything is accurate as of 12/31/06. Mr. Baker will review and sign a final audit letter prepared by the CPA upon his return to town.

There was a discussion about the ownership status of the west side of Moovalya Drive that runs concurrent with the Vista del Monumento Acres’ properties. In addition to the proposed Notice to Vista del Monumento Acres’ owners that Ms. Thomson prepared at Mr. Price’s request, Ms. Thomson gave Mr. Churchill a plat map and copies of several previously recorded documents on the subject. Relative to the streets, there was a discussion about the Lemme Engineering survey where the metes and bounds with the landowner to the north were adjusted after the Berge quitclaim deed was recorded. Mr. Churchill said the Notice would be discussed in Executive Session.

Ms. Thomson said she ordered more gate clickers, a compatible model that should be more durable. Ms. Thomson researched teleconferencing options, and she came up with basically the same results that Ms. Lancaster came up with. Those results, fairly expensive, can be reviewed in Ms. Lancaster’s packet.

Knowledge of several new short-term rental properties became aware to us recently, and Ms. Thomson reported that one or two of them were only professed to be back-up or occasional-use rentals. Ms. Thomson was asked to collect the $1,000 security from them as well.

Ms. Shockley reported that the pool construction crew working at lot 251 needs to clean up the street in front of the exit gate, but the cable barricade on the fencing is holding up. Mr. Sweeney wants a letter sent to the owner about installing a permanent barricade, which was a condition to the approval of the original house construction plans. Because the property has changed ownership since the house was built, it was uncertain if that condition flows to the new owner. Mr. Chambers said he would talk to the owner about the barrier.

Ms. Thomson reminded the Board that it needs to proceed on its attempt to amend section 10.2 of the CC&R’s as requested by our insurance company to delete the phrase to the extent not covered by the Association’s insurance. According to the insurance company, deleting this phrase gives the Association the option of reporting incidents to the insurance company, rather than making it mandatory to report all incidents to the insurance company. Mr. Churchill reviewed section 10.2 and said he is not convinced we should change the language, but after further discussion, he stated he has no objection if it doesn’t affect our ability to collect damages. Mr. Risen asked Mr. Churchill to recommend how the section should be phrased by next meeting.

Mr. Sweeney moved to approve the August Balance Sheet. The motion was seconded and carried unanimously.

Mr. Sweeney moved to approve the August Prepaid Bills and Bills for Approval. Mr. Price seconded the motion, and the motion carried unanimously.

Mr. Price moved to approve the August Profit & Loss. The motion was seconded and carried unanimously.

Mr. Svider revisited the possibility of removing the tall oleanders and redoing the landscape at the front entrance to a natural, desert landscape. The matter was tabled due to current sinkhole expenses. Ms. Shockley said that the gardener does not want to mess with removing the oleander in front of the APS transformer box because of the electrical lines, and Mr. Risen said to just chain saw it at ground level. Mr. Risen asked if anyone on the Board is interested in preparing a design for a desert landscape for the area. Mr. Sweeney and Mr. Chambers stated they like the grass. Ms. Lancaster suggested that a block wall incorporating wood or wrought iron materials would be nice, and there are desert flowers that are colorful. Mr. Risen asked for a landscape report at the November meeting from a committee consisting of Mr. Kossnar and Lauri Burke, Mr. Chambers and Ms. Lancaster.

Ms. Lancaster asked about the feasibility of striping the common parking lot. Mr. Risen stated that because of the varied sizes of vehicles and trailers that use the lot, we have had to let everyone just fend for themselves.

Mr. Svider asked about putting the oleanders that are in front of the new wall on an automatic watering system. Mr. Risen deferred that matter to the committee for report back in November.

Mr. Svider brought up the boat parking issue at JT’s and asked if Ms. Shockley is handling such complaints as a trespassing issue. Mr. Risen stated it is a Sheriff’s Office issue if a boat is parked at someone else’s dock. Mr. Price stated that no one has the right to tie up to someone else’s dock, or step onto their dock, they only have ingress and egress rights to the waterway. Mr. Churchill advised that, generally, people who tie up to a dock or step onto the dock, who are not owners of the dock, are trespassing. The exception would be if the boat is in distress and the occupants need to abandon the boat. The Sheriff’s Office should be called for these incidents of trespass. Mr. Chambers said he would give Ms. Shockley the direct telephone number for the Sheriff’s boathouse.

There was no new business.

The meeting adjourned to Executive Session at 7:30 p.m.

Submitted by Recording Secretary, Sue Thomson