Board of Directors
Regular Meeting
DECEMBER 3, 2007

President Chuck Baker called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:00 p.m.

President:  Chuck Baker
Vice President:  Jack Sweeney
Secretary/Treasurer:  Chris Chambers
Board Members:  William (Squeak) Kossnar, Bob Stroud, Joe Maxwell & Larry St. George

Board Members:  Gary Svider, Joe Price & Richard Jaschke

Guests:  Gary & Becky Anslyn (lot 113), Laura Lancaster (lot 166), Pete Becker (lot 115), Carla Faulkner (Robert Gory Realty Property Manager)
General Manager:  Cheryl Shockley
Business Manager/Recording Secretary:  Sue Thomson
Legal Counsel:  John C. Churchill


Mr. Sweeney moved to approve the Minutes of the Regular Meeting of November 5, 2007.  The motion was seconded and carried unanimously.

Mr. Baker reported the current bank balances: General Account $24,408; Capital Improvements $4,256; Kenko Repairs $994; Reserve $33,162; CD $101,800; Security Deposits (rentals and construction) $23,353.  Mr. Sweeney moved to approve the November 2007 Balance Sheet and Profit & Loss.  The motion was seconded and carried unanimously.

Ms. Thomson reported that the Association finally received the judge’s ruling, in our favor, on the Brooke Water Small Claims case.

Ms. Thomson reported that the Association is close to meeting its projected budget for 2007, with the exception of some extra street repairs due to sinkholes and the installation of some poles and chains on vacant lots.

No citations were issued last month.  Lot 67 protested a reckless driving citation issued in late October.

Mr. Pratt, lot 120, has yet to replace his bad check on his construction deposit.

Lots 146 and 169 remain delinquent in their dues.

Mr. Kossnar moved to approve the November Prepaid Bills and Bills for Approval.  Mr. Stroud seconded the motion, and the motion carried unanimously.

Ms. Shockley reported that the only problems over the Thanksgiving holiday were on Apache Loop, where several owners party together about once a month.  She spoke with an owner of Lot 67 for about a half hour on Friday night, and she spoke with an owner of Lot 64 for about a half hour on Saturday night.  She said the owners and/or their guests were riding cycles on the streets all night.  One of them was a small child operating a dirt bike at night with a flashlight.  Ms. Shockley said they show no respect for anyone.  She talked to a Sheriff’s Deputy, whose name she did not recall, and he told her she was overstepping her bounds, and that she had no right to tell the homeowners how not to behave.  The deputy also told her that a prior incident at the Peters’ house was none of her business, and the deputy said she’s being a vigilante.  Ms. Shockley said the Sheriff’s Office is no longer responding to her complaints.  Mr. Baker said he would set up a meeting between Hal Collett and Linc of the Sheriff’s Office, Ms. Shockley and himself to discuss the matter.  Ms. Shockley was upset by the incident and called Hal Collett, but he did not call her back.  Mr. Kossnar reported bonfires in the street at these owners’ properties on Apache Loop.  Ms. Shockley also reported that a female bike rider, a guest at lot 67, cussed her out when she asked her to stop driving erratically up and down the street.

Mr. Chambers said that one of their neighbors should call either Ms. Shockley or 911, and Ms. Shockley said that one of the neighbors won’t call the Sheriff’s Office.  Mr. St. George said that people don’t want to give out their names and have to go to court.  Mr. Stroud said that maybe things will change after our meeting with Hal Collett.

Ms. Shockley said that she wants the Sheriff’s Office to acknowledge that this is her job, and she would like them to back up her actions to the owners.  Mr. Sweeney said that you would think the Sheriff’s Office would be happy that we’re trying to keep the peace.

Ms. Lancaster said she has witnessed this particular Sheriff’s deputy disrespect Ms. Shockley on a prior occasion.  Ms. Shockley also pointed out that she is a resident in the Keys, and she considers herself on duty 24/7.  If she is in her bathing suit on her boat, she is still on patrol and will handle a bad situation on the spot.  Mr. Baker said the Sheriff’s Office needs a victim, and we could be the victim, as they are on our streets.  We will set up the meeting with Sheriff’s Office.  Mr. Chambers said that the attitude towards the General Manager depends on who the officer is.

Mr. Churchill recommended deleting the phrase “…to the extent not covered by the Association’s insurance.” from CC&R’s section 10.2, which language looks to our insurance company first.  Deleting this language means we can look to the perpetrators insurance.  Our insurance company merely wants it not to be mandatory that all incidents be reported to our insurance.  Mr. Sweeney moved for Board approval to request the owners at the 2008 Annual Meeting to vote on a proposed amendment to section 10.2 of the CC&R’s deleting the phrase “…to the extent not covered by the Association’s insurance.”  Mr. Chambers seconded the motion, and the motion carried unanimously.

Bids for reworking the back of the trash bin area were discussed.  Shelby Couch submitted a bid for $4,150 using wood.  Michael T. submitted a bid for $4,200 using block.  If slump stone is used, the cost would be $6,200.  Concrete and rebar would be used inside the block.  Mr. Chambers moved that the Association accept the bid from Michael T. to construct the back of the trash bin area at a cost of $4,200.  The motion was seconded and carried.   Ms. Shockley said he can start next week.

Ms. Shockley reported that a new large-parcel mailbox unit would cost $629.50, including shipping, for a two-box unit.  She went to the same website as the one we previously purchased from.  Cutler Federal, the manufacturer of the locks on the current unit which are broken, is out of business, according to Bulldog Lock & Key.  Ms. Shockley was given some other names to contact for pricing.

Mr. Churchill will send a letter to Brooke Water to request payment of the judgment amount of approximately $2,500.

The outstanding lot clean-up fine which was assessed to lot 10, but put on hold during the owner’s title issue, was brought up by Ms. Thomson.  Now that the owner has resolved his title issues, Ms. Thomson asked whether the Board is still interested in pursuing collection of the old fine.  The Board said the fine stands.  Furthermore, the owner has not started remodeling, pursuant to his assurance to Mr. Churchill months ago at the time his title issue was resolved.  Ms. Thomson was instructed to send a letter to the owner stating he needs to clean up his property and do the necessary repairs/remodeling to the house.  She was also instructed to send a clean up letter to the owner of lot 9.

Mr. Sweeney reported that no survey has yet been started on lot 69.

Mr. Baker asked Mr. Kossnar where we were on the oleanders vs. block wall issue, since he is on the landscape committee.  Mr. Kossnar reported that Mike Roberts would trim the tall oleanders down to 8-10’ for $1,000.  Parker Tree Service quoted $2,000.  Mr. Baker asked him if that is what the committee is leaning towards.  Mr. Sweeney said the tall oleanders are ugly and a mess and we should do something else besides trim them.  Mr. Baker agreed, but he surmised it would probably be a few months before we do anything.  Mr. Chambers said we have been looking at them this long.  Mr. Sweeney said they are going to grow only a few inches in a few months.  Mr. Baker said we’ll do nothing for now. 

The committee members are Mr. Kossnar, Mr. Chambers and Ms. Lancaster.  Mr. Baker suggested we solicit feedback via the website on what owners would like to see by way of entrance landscape.  Mr. Kossnar commented on how nice the desert landscape is at the new Herbst station in town.  Mr. Chambers suggested setting a budget for the project.  Mr. Stroud said that Michael T. and/or Steve Stanton can bid on a wall.  Mr. Kossnar suggested we could do a planter similar to the one at Miraleste Shores.  Mr. Baker asked if we are happy with the current gate and guardhouse setup.  Mr. Kossnar said that the right turn, southbound from Riverside Drive, is tough.  Mr. St. George suggested saving water by having a desert landscape.  Mr. Baker suggested Mr. Kossnar formulate a plan and get a landscape designer to look at it.  Mr. Chambers said County Public Works needs to be consulted concerning easements.

Mr. Baker discussed the current vacancy on the Board and stated he has talked to Ms. Lancaster about her willingness to be on the Board.  He asked Mr. Becker and Mr. Anslyn if they were interested in being on the Board.  Mr. Becker declined, and Mr. Anslyn declined due to his Colorado residency most of the year.  Mr. Baker entertained nominations for the Board vacancy.  Ms. Lancaster said she would love the opportunity to be on the Board.  Mr. Baker said that she would be an asset to the Board.  Mr. Chambers moved to nominate Laura Lancaster to the Board of Directors.  Mr. Stroud seconded the motion.  Mr. Baker noted that she would have to be excluded from Executive Sessions because of the current rental owners lawsuit against the Association, of which her co-owner is a plaintiff.  Mr. Sweeney thought it a problem that she has not submitted a rental security deposit and that Dale Smet, her co-owner, is a plaintiff in the lawsuit.  For this reason, Mr. Sweeney felt that Ms. Lancaster should not be on the Board.  Otherwise, she would be great.  Mr. Baker concluded that until the lawsuit is resolved, the Association doesn’t feel comfortable having Ms. Lancaster on the Board, but it still wants her energy and enthusiasm.

Mr. Baker asked Ms. Lancaster if she talked to the rental owners about the deposit issue.  She said she did, and they had some questions, one being why the $1,000 rental security deposit is more than the $750 construction deposit.  Another question is why the owners wouldn’t be sued first.  Mr. Baker talked about the potato gun incident, which was caused by renters.  He said we knew where the renters were from, but they refused to pay for the damage they caused.  The owner refused to pay for the damage as well.  This happened three times, so the Association decided it needed a deposit which would be used as a damage reimbursement if necessary.  The Board suggested to the owners that the deposit be set at $500, but the owners voted it in at $1,000.  Mr. Stroud related a prior incident caused by some renters who damaged his pontoon boat.  When he contacted their rental agency, he was told by them that the deposit the renters put down was not to be used towards other people’s property damage, only damage to the unit they rented.  Mr. Anslyn said that if the Board needs a deposit, then all members should submit one, not just people who rent their properties.  Mr. Baker replied that the Association’s thinking is that if property owners themselves cause damage to another’s property, we can just put a lien on the owner’s property.  If a tenant causes damage, we have no recourse against the property owner.  Mr. Anslyn said the CC&R’s require owners to be responsible for their renters’ actions and their compliance with regulations.  Mr. Baker said that the Association has not had to use anyone’s security deposit; that it is like a good-faith deposit. 

Ms. Lancaster said another homeowner asked what the procedure is for removing funds to use for a damage claim.  Also, what is the procedure for returning the deposit.  Mr. Churchill explained that the deposit is conceptually the same as a damage deposit for a rental contract, and it also helps pay for damage to Association property.  Streets and bridges are costly to fix.  Folks have crashed bridges and gates and are seen doing burnouts.  The Association has no recourse against renters.  We can lien an owner, but we can’t lien a renter, so the
Association wanted a more direct access to funds for damage repairs.  By having a security deposit in place, we feel it deters accidents.  The procedure for getting a refund of a security deposit is a simple request by the owner after they stop renting, and the owner gets all the accumulated interest.

Mrs. Anslyn stated that she believes rental owners are being discriminated against and that the June 2004 general member meeting was never legally noticed.  Mr. Churchill and Ms. Thomson both said that it was legally noticed.  Mrs. Anslyn said she didn’t hear about it.  Ms. Thomson explained the notice procedure and that we had a big turnout at the meeting.

The comprehensive Visitor Pass draft that Ms. Lancaster recently prepared was previously reviewed with Ms. Shockley.  It was suggested that the owner or rental agent’s phone number be put on the Pass as well.  Ms. Lancaster and Ms. Shockley talked further about the content and the cost of production.  Ms. Shockley suggested printing rules on the back side, and using the street address instead of lot number, along with a place for the time period of the tenancy.  Mr. Sweeney said no decision has been made on whether or not to go with a unilateral gate code. 

Mr. Churchill reported that the Board worked on establishing rules and fines for 8-1/2 years before they finally culminated in 2004.

Ms. Lancaster said that the improved Visitor Pass will allow us to self-police and will provide more information to everyone.

Mr. Becker asked Ms. Lancaster how many people can occupy a rental.  Mr. Baker said that 3-1/2 months ago he made what he thought was a quite simple proposal for rental rules.  He said he wanted to see what would happen the rest of the summer and identify all the problems, at which time we could solve them and be ready for next season.  He discussed the Citation Analysis prepared by Ms. Thomson, which indicated citations to 24 short-term rental owners who rented their properties in 2007.  Ms. Shockley prepared a Complaint Log, but the Board hasn’t had a work session on it.  Mr. Baker said his proposal boiled down to parking space and the maximum number of people who can occupy a house.  Renters can still use the common parking lot.  Occupancy is the main issue.  He said his house is directly across the canal from a rental property, and he is ready to burn down their house.  He has seen 30 people there at one time, and some of them have flipped him off.  He said he couldn’t leave his house for three days once, and they used his dock.  He has had to call Ms. Faulkner and the property owner at 2 a.m.  Ms. Faulkner said she intervened and told the renters to either straighten up or leave.  Mr. Baker said one of them threw a football and hit his mom’s window.  He said an owner can have 20 guests, because an owner is on site and can take charge of a situation.  He said the only owner problems we now have are on Apache.  Renters are different; they’re on vacation, and no one is in charge.  Many renters aren’t filling out the Tenant Information Sheets accurately; they are leaving names of people off the list.   Prior to the 2008 Annual Meeting, the Board will have determined what rules it will propose to the members for their votes. 

Mr. Baker said that current problems boil down to four or five rental houses and those certain Apache owners.  Owners have asked why we don’t just call them to resolve bad tenant behavior.  Mr. Baker said the difficulty lies when we get new groups of renters in every weekend, so we’re constantly trying to educate new people.  With owners, we only need to educate once.

Mr. Anslyn asked if Tenant Information Sheets are coming in, and Ms. Shockley said they are, with the exception of RGR’s sheets, which are incomplete.  Ms. Faulkner said they are going over everything now in an effort to make them complete.  Mr. Anslyn said he can see a definite need for the Tenant Information Sheets, and he had talked to several rental owners who acknowledge the need to know who’s coming into the Keys.

Ms. Shockley reports that she keeps the sheets in a file for one month, noting any problems on the back of the form, and she keeps those in a problem folder.  She said rental owners and agents have complied, except for RGR, from whom she needs vehicles makes and license numbers.  Mr. Baker said he wants everyone to start using the Tenant Information Sheet he revised.  Ms. Lancaster said one of the issues is people don’t always know who is coming.  While Mr. Baker suggested that the Tenant Information Sheets be kept forever, Ms. Lancaster asked if they were not supposed to be shredded one month after departure date.  Ms. Thomson agreed that was her initial understanding.  Mr. Baker said his revised form is simple and contains no sensitive information.  Mr. Sweeney told Ms. Lancaster if we had 23 more of her, there wouldn’t be a problem.

Mr. St. George said he’s been here for 16 years, but because of the problems across the canal on Apache, he isn’t having fun anymore, and he is selling his house. 

Mrs. Anslyn said she is not opposed to blacklisting people, such as the ones who were jumping off a roof.  She is willing to receive input on whether problem people should be given a second chance. 

Ms. Lancaster said it should be a self-policing issue and that they personally changed their advertisements requiring a 10-person limit.  Ms. Lancaster said there are positive changes occurring, and there’s been good communication.  She wants it to continue.

Mr. St. George said that when we call people out for mopeding up and down the streets at 3 a.m., they say ‘there are no rules—this is the river!’  Mr. Anslyn said they have all the same issues in Aspen.  People leave their brains at home.  Addressing Mr. St. George, he said you are full time, but you are still in a resort.  Mr. St. George told of how his visiting friends are envious of his life in the Keys during the daytime, but after the sun goes down they say, ‘how do you live here?’  Mr. St. George said it’s not just renters.  Mr. Baker said the more people you have the more problems you have.  He said the Board will probably have a work session to come up with a proposal to submit to the members at the annual meeting.

Mr. Becker talked about the four rental houses in close proximity across the canal from him, where conceivably they could total 50-60 people.  Mr. Baker said that did happen this summer.

Ms. Lancaster said that a child must have a learner’s permit, with an adult present, to drive a motorized vehicle.

Mr. Sweeney presented a revised remodeling plan for lot 151, and stated it is in compliance with setbacks and height.  Mr. Churchill, having reviewed the plan, also approved.  Mr. Sweeney moved to approve the remodeling plan for lot 151 as submitted.  Mr. Kossnar seconded the motion, and the motion carried.

Mr. Baker discussed underage drivers being allowed to drive golf carts in the Keys.  He said the members were asked at a prior annual meeting if they wanted to allow underage children to operate them, and by membership vote, the measure was approved.  However, what was once a little problem is now a big problem.  He said the Board has a liability no matter what the homeowners want, and we need to address kids speeding in golf carts.  Mr. Sweeney said the CC&R’s require licensed drivers only.  Mr. Baker said this is a problem that needs to be voted on at the annual meeting.  Ms. Lancaster said there’s liability by not enforcing an existing regulation.
Mr. Baker asked that the next regular Board meeting be moved to Monday, January 14, 2008, since he will not be here on the 9th.

The meeting adjourned at 7:38 p.m.

Submitted by Recording Secretary, Sue Thomson