Board of Directors
Regular Meeting
OCTOBER 1, 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
Board Members: Jack Sweeney, Gary Svider, Joe Price, William (Squeak) Kossnar, Bob Stroud, Joe Maxwell & Larry St. George

Secretary/Treasurer: Chris Chambers
Board Members: Richard Jaschke

Guests: Blane Coon (lot 54); Rob Troxler (lot 160); Gary Anslyn (lot 113); Barbara Risen (lot 184); Mr. & Mrs. Robert Pierce (lot 46)
General Manager: Cheryl Shockley
Business Manager/Recording Secretary: Sue Thomson
Legal Counsel: John C. Churchill

No comments from guests present.

Mr. Kossnar moved to approve the Minutes of the Regular Meeting of September 10, 2007. Mr. Price seconded the motion, and the motion carried unanimously.

Mr. Price moved to approve the September 10, 2007 Minutes of the Executive Session. Mr. Baker seconded the motion, and the motion carried unanimously.

Mr. Sweeney moved to approve the September 2007 Profit & Loss Statement. Mr. Price seconded the motion, and the motion carried unanimously.

Mr. Sweeney moved to approve the September 2007 Balance Sheet. Mr. Stroud seconded the motion, and the motion carried unanimously.

Ms. Thomson reported that the judge refused to grant Brooke Water another trial continuance, so the trial was held without a defendant on 9/17/07. Ms. Shockley and Mr. Sweeney attended the trial and presented our case. The judge took the matter under submission.

Mr. Pratt’s construction deposit for a remodel project at lot 120 was returned NSF by the bank. A replacement check is supposedly on its way. Late fees were assessed to 13 dues’ accounts.

Ms. Thomson reported that Mr. Baker reviewed the 2006 CPA audit report, and he stated everything looked fine.

The three extra trash bins were removed from the trash area for the winter season.

Citations for white line violations were issued to lots 63, 66, 96, 97, 139 and 161. Reckless driving/speeding citations were issues to lots 63, 69 and 201.

Ms. Thomson reminded Mr. Churchill about his needing to provide us with a draft amendment to CC&R’s section 10.2 relating to insurance claims.

Mr. Sweeney gave Ms. Thomson a reimbursement bill from Moore’s Electronics for $830.90 for the new computer hard drive in the guard shack. Ms. Thomson also just received a bill from Rolyan Buoys for $342.07 for two replacement buoy lights. Mr. Sweeney stated that the center buoy is unable to have a light, so the second light will be kept as a spare. Ms. Shockley replaced the other buoy light on Saturday.

Mr. Price moved to approve the September prepaid bills and bills for approval, which include the Moore’s Electronics reimbursement to Mr. Sweeney and the Rolyan Buoys invoice. Mr. Sweeney seconded the motion, and the motion carried unanimously.

Ms. Shockley reported the last three weeks have been quiet. She had two trailers towed from the parking lot, and she tagged another unknown trailer on Yaqui, and it was then moved.

The gardener cleared the bushes by the Brooke ramp. The two vacant lots on Hopi and Moovalya should be finished soon with new poles cemented 2’ into the ground, with chains to be attached to the poles. Ms. Shockley said she was asked to bring them in 9’ from the line, on the Moovalya lot, and Ms. Shockley stated she could not see the original location. Mr. St. George said the current holes are too close to the white line. Mr. Kossnar stated that 9’ is plenty wide to park a trailer. Ms. Shockley said she can change the location of the holes. Mr. Sweeney made a motion to move the holes back to where they originally were, in line with the block wall, 3’ back. Mr. St. George seconded the motion. Mr. Stroud wondered if others are going to complain. Mr. Kossnar asked if this would create a storage issue. There being no further discussion, the motion carried unanimously.

Mr. Kossnar asked if the upriver channel light needs to be moved, and Mr. Sweeney said that it does.

Mr. Price asked if the asphalt people are due back in the area soon. Ms. Shockley said she would call to find out.

Mr. Baker reported overgrown, wild palms at the Apache Loop stop sign. Mr. Risen suggested they be chopped down, and Ms. Shockley said she would talk to the gardener.

Mr. Baker reported that his RV was parked entirely on his property, and he wanted it known that the Board does not treat him any differently. There were some recent comments that he had an unfair advantage, and he said that is not the case. His RV was parked entirely on his property.

Mr. Sweeney stated that he continues to adjust the cameras to focus in on license plates, but that it continues to get out of focus a day later. He suggested that we upgrade to an infrared camera, at a cost of less than $500. Mr. Kossnar made a motion that the Association purchase an infrared camera for the entrance area at a cost not to exceed $500. Mr. Baker seconded the motion, and the motion carried unanimously.

Mr. Svider discussed the dilapidated backboards at the dumpster area, stating that it would cost $5,000 to $6,000 to replace them with metal backboards. Mr. Kossnar suggested it could cost up to $10,000, and Mr. Stroud suggested replacing them with plywood. Mr. Sweeney suggested plywood and new paint. Ms. Shockley was asked to get a couple of estimates for plywood replacement backboards and repainting.

Regarding the beautification status, Mr. Kossnar stated he talked to Mike Roberts about trimming the tall oleanders, and he said he would hedge them off level for $1,000. Ms. Thomson read Laura Lancaster’s e-mail, which she received just prior to the meeting, that explained she was unable to attend tonight’s meeting due to an injury she sustained over the weekend. Ms. Lancaster is on the beautification committee, and she reported that she did some research on synthetic grass and talked to people about whether or not to remove the large oleanders, and she called several gardeners, as well as Brooke Water, who stated we would save about 35% on the water bill by investing in mulch and rocks to go around the bushes to reduce evaporation. She also talked to other owners about entertaining the idea of updating the entrance as far as stucco color, landscape and possibly a wall around the parking lot to update the Keys with a high-end look. Mr. Baker stated that the synthetic grass that’s on the market now is really nice, and you can hardly tell the difference.

Mr. Risen stated that all recommendations are due at the November meeting, keeping in mind economics and cost of upkeep. Mr. Risen stated that Ms. Lancaster’s rental packages will be discussed at the November meeting.

Mr. Baker asked about the double parking of boats issue in the canals, and are we not involved? The CC&R’s reference it. Mr. Stroud stated the homeowners have ownership of half the canal, and Mr. Risen advised that they own only the land, not the water. Mr. Svider stated that section 5-347 of the Arizona statutes (Interference with navigation or launching areas) is enforced by the Sheriff’s Office, and if it does not block or impede passage, they won’t deal with it. Mr. Baker stated that we need to address the double parking issue. Ms. Shockley reported that if she receives a phone call about this she will have them move it, but she doesn’t see this happen very often. Mostly it occurs at JT’s, and she tells the boat owners that double parking is not allowed.

Ms. Thomson reported that Laser Brite, the folks doing the bridge signs, have been out of state for several weeks, but she will follow up with them again.

Mr. Risen reported that the cable is down again at lot 251, and he asked if we’ve received any feedback on the subject. Mr. Sweeney said that Mr. Chambers was to have talked to the owner, and Ms. Thomson stated that she would contact the owner about the possibility of a permanent barrier.

Concerning the status of renter issues, we need to let the owners know about possible solutions. He said his initial plan was misconstrued, and everyone came up with something different. It was decided that all problems this past summer be documented, and we’ll take a look at that and see what needs to be done. The lawsuit over the rental security deposit is sitting inactive. Everyone, except for a few, has complied with the deposit requirement. Mr. Baker said we need to address problem issues, such as the renters across the canal from his house at lot 139 who are a continuing frustration to him. Their behavior is rude, and they’ve even flipped him off. Mr. Sweeney said he reviewed Ms. Lancaster’s package, and he made notes and passed it on to Mr. Anslyn. Mr. Sweeney said he would rather do away with rentals than implement some of Ms. Lancaster’s detailed plans. He disagrees with Ms. Lancaster’s comment, ‘we are all the same’ by saying we are not all the same. I’m here when there is a problem. The landlords are not here when there is a problem. He said there has to be an acceptable maximum capacity per house established, and people shouldn’t park their boats on someone else’s dock. That’s the rule he imposes on his guests at his house.

Mr. Svider stated he has been out of the loop the last couple of months, and Mr. Baker’s initial proposal looked fine to him. He said he agrees on imposing a maximum capacity rule, for people, cars and boats, but we need enforcement of those who violate, but not be anti-renter. He said he wants to know if there are problems on his property, and his watchdog stays in touch with him. Mr. Baker stated that the parking problems are being handled, but that the current problem is encroaching on other people’s properties. Mr. Sweeney said he is inclined to go with a set of simple rules, such as what Mr. Baker proposed.

Mr. Churchill advised that the CC&R’s are really clear, and that if a landlord is using a residence for any other purpose than single-family use, they are violating the CC&R’s. The single-family use applies to every use, including bedrooms and docks. The definition of ‘single family’ is clear and he will be happy to discuss the matter further in executive session.

Mr. Sweeney inquired of Mr. Churchill about homeowners with guests who spend the night, or one renter who pays for the rent and has guests--is that not single-family use? Mr. St. George inquired of Mr. Churchill if that is the case, then are we not allowed to have 10 guests spend the night? Is the difference guests who pay, versus non-paying guests? Mr. Churchill stated that if that’s what’s happening, then they’re not violating single-family use. Mr. Sweeney said he is trying to establish a peaceful co-existence, and we need guidelines about maximum capacity, dock use and parking regulations.

Mr. Baker wanted everyone to know that his proposal meant to include everyone’s right, including guests and tenants, to use the common parking lot. Not referencing the parking lot in his proposal did not mean he intended to exclude its use by renters and guests. Mr. Sweeney stated the proposal was a starting point, and a dialog to work with the defendants in the lawsuit. Addressing Mr. Anslyn, Mr. Sweeney told him that the Board got the impression that you guys (the defendants) thought we were starting a war.

Mr. Coon stated that we take care of our guests; why aren’t the rental landlords responsible? They are.

Mr. Stroud brought up the ongoing drainage problem at his property and asked if Mike Dyer could put in a bid for a drain at his and his neighbor’s house. He said the recent storm created another flood.

Mr. Sweeney presented remodel plans from Mr. Pierce on lot 46, which includes a second-story bedroom over the patio, with no changes to the front. The height is stated at 17’10”, and the setbacks are okay. Mr. Sweeney made a motion to approve the remodel plans for lot 46 for a second-story bedroom as presented by Robert Pierce. Mr. Kossnar seconded the motion. The plans were given to Mr. Churchill for review, and Ms. Thomson was given the construction deposit.

Mr. Price, upon researching the CC&R’s on the double-parking issue, said homeowners can’t block ingress and egress, per Section 12. Mr. Risen stated that if we want to make it more restrictive, we would need to pass a rule. Mr. Sweeney said that the Board can interpret the CC&R’s.

Mr. Churchill stated that the plans for the lot 46 remodel look fine. There being no further discussion, the motion carried.

Regarding the double parking issue, we can tell the General Manager whether there’s a violation. Mr. Price made a motion that the Association instruct the General Manager that double parking of boats is a violation of the CC&R’s. No action was taken on the motion.

Mr. Stroud stated that his neighbor approves a connector drainpipe. Ms. Shockley stated that Mike Dyer would have to dig for the drain before he can give an estimate. Mr. Stroud and Ms. Shockley both stated that it would cost $150 per hour to locate the line. Mr. Stroud said two 12x12 drains, one at his house and one at his neighbor’s house, would alleviate standing water. He said he had standing water for a couple of days after the last rain. Ms. Shockley estimated that it would take 1-2 hours to determine where the drain is. Mr. Baker suggested that Mike Byrd could do it.

Mr. St. George reported speeding boats in the channel last night. Ms. Shockley said she talked to a person last night who was speeding on a wave runner.

Mr. Kossnar, who had stepped out of the meeting to call Mike Byrd, said Mike Byrd would locate the end of the drain at the Stroud property for $175. Mr. Baker made a motion to hire Mike Byrd for $175 to locate the Stroud drain line. Mr. St. George seconded the motion. The motion failed to carry.

Mr. Svider asked if it is possible to post on the website an agenda, or at least a tentative agenda, a week in advance of monthly Board meetings for the benefit of those who can’t attend the meeting. Mr. Risen said that we tried to do it before, but agenda items change. No action was taken.

Mr. Risen discussed the ongoing speeding problem on Keys’ streets, and stated he arranged for the procurement of an $1,800 used radar unit from the Town of Parker for $500, plus $300 for a three-day training course by the Sheriff’s Office who would train and certify the General Manager, thus enabling any speeding citations to hold up in a court of law. The course would also give the General Manager the knowledge and ability to estimate speed of vehicles. Mr. St. George asked if the legal speed limit is 15 or 25 (state mandated) MPH, and Mr. Risen stated that the Keys’ speed limit is 15 MPH. Mr. Sweeney stated the Sheriff can’t enforce 15 MPH, but the Keys can.

Mr. Baker made a motion that the Association purchase a used radar gun from the Town of Parker for $500 and pay $300 for the certification course for the General Manager. Mr. Kossnar seconded the motion. Mr. Sweeney asked if recertification is necessary every two months, and Mr. Risen stated that it is necessary only after a year. Ms. Shockley suggested a radar-enforced sign. She has a handle on repeat abusers, and she is talking with them. The motion failed to carry.

Mr. Kossnar reported guests of the Pollett house (lot 43) were shooting fireworks, and the Sheriff’s Office came out and confiscated the fireworks. Ms. Shockley stated that the tenants denied the fireworks, but she told them they would be asked to leave if it happened again. Ms. Shockley reported that Mr. Bahler (lot 188) and Mr. Pilato (lot 63) are fireworks abusers.

There was no new business.

The meeting adjourned to Executive Session at 7:13 p.m.

Mr. Risen submitted to Ms. Thomson his handwritten resignation from the Board, effective immediately.

The meeting reconvened from Executive Session at 7:45 p.m. and was chaired temporarily by Vice President Chuck Baker.

Because Mr. Svider will miss six board meetings, Mr. Sweeney moved to retain Mr. Svider’s place on the Board; that due to medical reasons, he not be dismissed from the Board during his six-month absence. Mr. Stroud seconded the motion, and the motion carried.

Mr. Sweeney nominated Mr. Baker as President of the Association. The motion was seconded, and the motion carried.

Mr. Kossnar nominated Mr. Sweeney as Vice President. The motion was seconded, and the motion carried.

The meeting adjourned at 7:47 p.m.

Submitted by Recording Secretary, Sue Thomson