LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
MAY 5, 2008

CALL TO ORDER
President Gary Svider called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:00 p.m.

PRESENT
President:  Gary Svider
Vice President:  Jack Sweeney
Secretary/Treasurer:  Chuck Baker
Board Members:  William (Squeak) Kossnar, Brandon Johnson, Blane Coons, Al McPherson, Laura Lancaster, Chris Chambers and Larry St. George
           
ABSENT
Board Members:  Joe Maxwell

OTHERS PRESENT
Guests:  Carla Faulkner (Robert Gory Realty Property Manager), Robert Hansen Lot 7 (VDMA)
General Manager:  Cheryl Shockley
Legal Counsel:  John C. Churchill
           
INTRODUCTIONS

MINUTES
Mr. Sweeney moved to approve the Minutes of the Regular Meeting of April 14, 2008.  The motion was seconded and carried unanimously.

Mr. Kossnar moved to approve the Minutes of the Annual Minutes of April 14, 2008.  The motion was seconded and carried unanimously.

FINANCIAL REPORTS
Mr. Chambers moved to approve the April 2008 Balance Sheet and Profit & Loss.  The motion was seconded and carried unanimously.

BOOKKEEPER REPORT
Ms. Shockley stated that since Ms. Thomson will no longer be attending the meetings the bookkeeping report would be merged into the general manager’s report.  Mr. Sweeney stated that since there were prepaid bills and bills for approval that there still needed to be a bookkeepers report.  Ms. Shockley asked who was going to read the bookkeeper’s report if Ms. Thomson was not available and Mr. Baker said that Ms. Thomson could still submit a report and it could be read by Ms. Shockley.

Mr. McPherson asked about Advance Plumbing’s bill for jet line at south ramp because of drain being clogged with concrete debris.  Ms. Shockley told Mr. McPherson that this service had been contracted in 2007 for a clogged drain at the end of Moovalya Drive in front of Lot 20 (Hale) and Advance Plumbing did not send an invoice in a timely matter.  Mr. McPherson asked why the HOA had to pay for a bill that was caused by construction work and why the money was not taken out of the construction deposit of the house that caused the clog.  Ms. Shockley stated that at the time there were four houses in the vicinity of that drain that were having construction work done and since the problem was not discovered until Labor Day weekend when there was a major storm and the drain did not drain properly there was no way to find out which house was responsible for the concrete debris that clogged this particular drain.  Ms. Shockley stated that the board had approved for the work to be done and the HOA to pay for it.

Mr. Svider asked if the prepaid bills and bills for approval needed to moved since the bookkeepers report was going to merge with the general managers report.  Mr. Sweeney and Mr. Baker stated there still needed to be a bookkeepers report and that when Ms. Thomson submitted her financial reports that would be the bookkeeper’s report along with the bills for approval and prepaid bills for approval.

Ms. Shockley reported that Ms. Thomson had handed over to her items she needed to begin her new duties.

Mr. Sweeney moved to approve the April Prepaid Bills and Bills for Approval.  The motion was seconded and carried.

GENERAL MANAGER’S REPORT
Ms. Shockley reported that she has the Memorial Day Weekend security set up with La Paz Co. Sheriff’s Department.  Friday, Saturday and Sunday the guard shack will be manned by one La Paz Co. Sheriff from 4:00pm to approximately 4:00am.  Ms Shockley and Mitch Cosby will man the shack between the hours of 7:00am and 4:00pm.  Ms. Shockley stated that she had spoken with Linc Gilbert about the schedule and the duties of the sheriff’s that will be at the gate.  The sheriff will have his own patrol car which he will use to make rounds of the HOA at least every hour and if there is any trouble, the sheriff on duty will make a call to dispatch and he will have the necessary back up.  Mr. Baker stated that he had spoke with Mr. Gilbert and if the deputy on duty thinks that a person entering the Keys is impaired he will hold him at the gate and an on duty officer will be called and that driver may be arrested for DUI.  Mr. Chambers stated it would be the same for golf carts or Rhino drivers also.  Mr. Coons asked if the sheriff goes to a house that is having a loud party and he smells pot can he call on that and he was told yes.  Mr. Chambers asked what the hourly rate was and Ms. Shockley stated that is was $32.50 per hour for the deputy and $2.50 per hour for the patrol car.  Ms. Shockley stated that she will be at the gate at noon on Friday May 23rd to start checking people in and that she will stay with deputies each afternoon to go over the procedures and duties.  She will always be handing out flyers to each person who is new to the Keys stating our rules and that the La Paz Co. Sheriff will be on duty at night.

Ms. Shockley reported that she is still working with La Paz Co. Community Development on getting Lot 10 (Willoughby) condemned.   She spoke with Charles Griffin who reported that the building inspector was supposedly red tagging the property.  Mr. Griffin asked that we give the County another month to get paperwork in order and that they are doing there best to get the property up to code or condemned.

Ms. Lancaster asked if Lot 169 had paid their sewer bill and Ms. Shockley said it had been paid.  She also asked if they had brought their dues current and Ms. Shockley stated that she would check with Ms. Thomson.

Mr. Baker asked about the plans for Lot 150 and Ms Shockley stated that she had made a mistake with the address and that Lot 150 had approved plans for the construction they were doing.

Ms. Shockley stated that she received a call from Gene Hines Lot 130 – 8672 Yaqui Loop on
Saturday April 26th about construction equipment doing work on Friday April 25th at 11:30pm on the vacant lot located across the street from his house.  (In between Callagham and Tozer)  He stated that they were loud and they did not have permission from owner of the lot to be doing any work on the lot.  Ms. Shockley stated that she drove to vacant lot located at 8669 Yaqui Loop and there were no equipment vehicles on lot and that the poles were in place.  Ms. Shockley spoke with Mr. Sweeney to see if he knew of any thing that was going on and he report that Stevie Stanton had brought his equipment on lot to dump sand and gravel for beach area located at the Callagham residence located next to vacant lot.  Ms. Shockley stated that Stanton had not done any damage to the lot.

Mr. McPherson asked Ms. Shockley about her daily report and what it meant to “Check Lot”.  Ms. Shockley stated that was what she did when she check the common lot for vehicle identification.

Mr. Baker made a motion to approve General Manager’s Report. The motion was seconded and carried.

OLD BUSINESS
Laura Lancaster reported that she spoke with the owner to the north of the Keys about access to his property via the Keys entrance.  He stated that he did not want to be tied down to come up with a plan on how many units will be built, but he did not expect to exceed 12 units.  The owner of the property stated to Ms. Lancaster that he wanted a letter from the Keys HOA stating that he is not abandoning his claim for access to his property at this.  Mr. Churchill advised the board to go into executive session to discuss this matter any further.  Mr. Svider asked Mr. Churchill if the Moovalya Drive issue should also be discussed in the executive session and Mr. Churchill said it was.

Mr. Svider also wanted to address the Joe Maxwell issue in an executive session but Mr. Sweeney stated that it was discussed that Mr. Maxwell was attending his last Monday night of Fire School and that he would be present at the next meeting on June 2nd.  Per Chris
Chambers Mr. Maxwell has only missed 2 meetings since being reelected to the board but Mr. Churchill stated per the CC & R’s if you miss 3 consecutive meetings in a calendar year the board has the right to replace the member.

Mr. Baker stated he wanted to address the rental issue again.  Over the past weekend he had problems once again with the rental house across the canal (Klecan/Sternberg) house.  They were loud and obnoxious.  He brought up the issue that since the 10-person limit did not pass, he said we were back to the issue of enforcing the CC&R’s, stating you can rent your home only to a single family.  Mr. Baker stated that if he had to he was going to sue the homeowner across the canal (Klecan/Sternberg) and the HOA to comply with the CC&R’s.  He also stated that he would go to DOR (Department of Revenue) and turn the house in across the canal (Klecan/Sternberg). Mr. Baker stated he does not want to take these steps but if something is not done about the rental houses on his canal he will.

Mr. Baker stated that on Saturday May 3rd at approximately midnight the house across the canal (Klecan/Sternberg) and several rental houses on his side of the canal (Leek and Anslyn) were playing loud music, which could be heard before he turned to go down his canal by boat.  Mr. Baker stated that he spoke with Jim Leek about the music.  Mr. Chambers asked Mr. Baker if he had called the sheriff’s department and Mr. Baker stated he had not, because he knew there were underage drinkers at Mr. Leek’s residence and he did not want to get them in trouble. 

Mr. Baker stated that as a board or a HOA that a rule should be passed on how many people can stay at a rental house.  Ms. Faulkner stated that even though the ruling did pass to limit the tenants of a rental home, her contract states that only 10 people can be staying in the home.  Mr. Baker stated that he counted at least 20 people staying at the Klecan/Sternberg rental. 

Mr. McPherson asked if there was a definition of a single family home and if so can’t it be enforced?  Mr. Baker stated that Mr. Svider knew the meaning of what constitutes a single family. 

Mr. Svider stated the interputation for a single family home as follows:  Zoning & Commission (6), Community Development (6) and Department of Revenue (6)-six person constitutes a single-family residence. 

Mr. Kossnar stated that he had the same problem in the trailer park in town that he owns and there is no one in the county to enforce such a rule. 

Ms. Lancaster said that one house was being used as an example but wanted to know what other houses were not complying and Mr. Coon’s stated that the house across the canal was one of them.  Mr. Coon stated that the owner Neil Lance called him complaining about the homeowner’s that were bad mouthing his rental home and that he was trying to complying with the rules but he is having trouble faxing his tenant information sheets to Cheryl’s fax. 

Ms. Faulkner also stated that RGR was having trouble faxing the sheets and asked if there was something that could be done.  Ms. Shockley stated that her fax machine seemed to be working fine and she had received faxes from other rental properties with no problems. 

Mr. Kossnar and Mr. Sweeney stated that if someone was having troubles faxing that they both had dedicated fax lines that people could fax the information sheets to. 

Ms. Shockley stated that she would check her machine again and make sure it was on the correct mode and change her message to reflect on how to send a fax to her. 

Mr. Coon’s wanted to know if Mr. Lance had submitted his rental deposit yet and Ms. Shockley stated he had not.  Ms. Shockley also stated that Carla at RGR was no longer the property manager for his rental. 

Ms. Lancaster stated there is a black list going around to all the rental properties on people who have been problem renters in the past and to please not rent to them.

Mr. Churchill stated the answer to all the rental problems are in the CC&R’s.  The CC&R’s can be enforced by writing a letter to the homeowner stating that his or hers renters were in violation of the CC&R’s, section 12.6 (Nuisances). The homeowner gets a bill for the letter being written, which becomes a special assessment secured by a lien. (CC&R’s, section 12.18). The letter advises the homeowner that if the occurrence happens again legal action will be taken.  Mr. Churchill says that after this happens several times the homeowner will get the message that there is a problem and take the actions to police their renters in a better manner. 

Ms. Lancaster asked if we are holding the renters at a higher standard than a homeowner?  A Mr. Churchill replied that he was talking about all homeowner not just the ones that rent their properties. 

Larry St. George stated that the sheriff’s told him that Arizona Law states “disturbing the peace” can be at any time of the day – 24 hours a day.  It is defined as disturbing your peace, such if any one is yelling or playing loud or offensive music and it disturbs your peace, you have the right to call the sheriff.

Brandon Johnson suggested that a standard letter be drafted to advise a homeowner that they have been in violation of the CC&R’s.  And if that first letter doesn’t work that a formal letter from Churchill’s office be sent with the special assessment attached.

Al McPherson wants a notice to be sent out to all homeowners on how to correctly post “No Trespassing” signs on their property, such as docks.  He suggested it go out with the next dues notice or be placed on the website.

Chris Chambers spoke with Jaynette Denham’s mother Bobby, the homeowner at 8722 Navajo Lane at the exit gate about the wall that needs to be put up.  Bobby asked Chris if he could see if the Board would help with the cost of the wall.  Mr. Chambers said that the homeowner would supply the block.  Chuck Baker moved to approve up to $700 in costs for the wall.  The motion was seconded and carried.  Chris Chambers to oversee project.

Ms. Shockley was asked if she had purchased her camcorder yet and she said she was still looking and hoped to have it by Memorial Day weekend.

NEW BUSINESS
Jack Sweeney introduced Bob Hansen 8612 Moovalya Drive (VDMA); he wanted to know why he had not received his trash assessment for the year.  Ms. Shockley told Mr. Hansen that she would check with Sue Thomson the bookkeeper and get back to him before the end of the week.

Gary Svider formed the following committees:

Plans:  Jack Sweeney

Improvements:  Larry St. George, Laura Lancaster & Blane Coon

Appeals:  Squeak Kossnar & Al McPherson + 2 non board members

Mr. Svider also wanted to form a committee to review the CC&R’s but was rejected by the board at the time.   Chuck Baker stated the best way to review the CC&R’s was a special work session.  Mr. Svider suggested that each month the board review two sections of the CC&R’s and discuss any changes or deletions that need to be made.  Mr. Churchill stated that all the rules should remain as the laws change back and forth.

Mr. Svider wanted to send out new Lot ID stickers to all homeowners in the next mailing.  Ms. Shockley stated that is was not necessary due to the fact that when a homeowner needs more lot stickers all they have to do is call her and she can print them up on her computer. 

Mr. Chambers wanted to add another committee: Height Review which would include the following board members: Chris Chambers, Jack Sweeney and Larry St. George.  Mr. Chambers also stated the Karen Gallio, Lot #1 wanted to be on this committee.

Mr. Svider wants the monthly meetings agenda posted on the website.

The meeting adjourned to Executive Session at 7:30pm

ADJOURNMENT
The meeting adjourned at 8:30pm
Submitted by Recording Secretary, Cheryl Shockley