LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
DECEMBER 1, 2008

CALL TO ORDER
President Gary Svider called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:05 p.m.

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

OTHERS PRESENT
Guests:  William Gallio, Lot 1 and Pete Becker, Lot 115
General Manager:  Cheryl Shockley
Legal Counsel:  John C. Churchill (Absent)
           
INTRODUCTIONS

MINUTES
Joe Maxwell moved to approve the Minutes of the Regular Meeting of November 3, 2008.  The motion was seconded and carried unanimously.

CALL TO PUBLIC
Mr. Becker Lot 115 addressed the Board and asked why the CC&R’s are not being enforced against the rental properties when renting to other than a single family.  Mr. Sweeney explained to Mr. Becker that in the past two years, the problem has been getting better and that rental properties have been policing themselves and renting to no more than 10 people i.e. a single family.  Ms. Shockley explained that all rentals now have to supply her with a tenant information sheet that lists everyone staying in the rental and all vehicles that belong to the rental party.  Ms. Shockley told Mr. Becker that this helps her to identify problems before they even begin. 

Mr. Becker showed pictures of the Klecan rental that he took over one of the holiday weekends, the picture showed more than 10 young adults on the dock.  Mr. Becker stated that this particular weekend these individuals were out of hand, drinking and swearing and young children were in ear and eyeshot of such activities.  Mr. Becker stated that if the Board was enforcing the CC&R’s and making sure that these rental homes were only renting to single families, this type of behavior would not be occurring.   Mr. Coons told Mr. Becker when this type of behavior is occurring that he needed to call the Sheriff’s department and file a complaint.  Mr. Johnson told Mr. Becker that the Association’s Attorney advised the Board without a paper trail of complaints against the homeowner, there is nothing the Board or the Sheriff’s department can do.

Mr. Becker said he wanted to have some kind of fine imposed on these rental homes when they are renting to individuals who are not a single family.  Mr. Sweeney told Mr. Becker that the Board tried to ban short-term rentals in the past but that when it went out to the homeowners to vote on, it did not pass.  Mr. Sweeney said what resulted from this was that most of the Rental properties are trying to work with the Board and come to a solution that works for everyone and when you have a problem with a rental property you need to report it to Cheryl so it can be documented.  Cheryl will contact either the homeowner or property manager to resolve the problem immediately. 

Ms. Shockley told Mr. Becker that Mr. Baker had met with the Klecans over the 4th of July weekend to discuss the repeat problems he was having with their rental.  In the meeting the Klecans became aware of the problems and assured Mr. Baker that they would try harder to police their tenants and make sure their property manager only rented to single families and since such meeting there had been no problems reported.  Mr. Becker said that he did not think homes that were worth $700,000 should be rentals and that it drives down the value of homes in the Association.  Ms. Shockley told Mr. Becker that there were homeowners in the Association that acted worse that the renters.

Mr. Sweeney said there was no way to say if these rentals are not being rented to single families and that we can only go by what the tenant information states and if it says a single family is renting and they invite some friends over for dinner, the only thing the Board can do is have Cheryl check the tenant sheet and report it to the homeowner or the property manager for compliance.

Mr. Chambers pointed out that JT’s on the Keys is across the canal from his house and they have more people there than a typical rental house and there are hardly any problems because the hotel monitors their guests and keeps things under control.  Ms. Shockley said that with Ms. Lancaster’s help and with the help of such property manager’s as Carla Faulkner for RGR, combined with the enforcement of supplying a tenant information sheet for each rental, she has experienced the fewest problems since taking over the general manager’s job two years ago. 

The Board advised Mr. Becker to call Cheryl when ever possible if was having any type of problem and if she could not remedy the situation then he was to call the Sheriff’s department and file a complaint.  Mr. Becker thanked the Board for there time in hearing this matter.

FINANCIAL REPORTS
Jack Sweeney moved to approve the November 2008 Balance Sheet.  The motion was seconded and carried unanimously.

Jack Sweeney moved to approve the November 2008 Profit and Loss Statement.  The motion was seconded and carried unanimously.

BOOKKEEPER REPORT
Sue got her new computer, it works, and all data was successfully transferred.  Cheryl will pick up the Keys’ computer from her after Thanksgiving.  (Sue will be out of town for one week starting tomorrow.)  Sue is now using Microsoft Office 2007.

Six collection letters were sent to lots 120 (Final Notice), 169, 182, 200, 238 & 240 (second notices).  Lot 57 needs a lien filed by legal counsel.

Lot 209 has protested their lot clean up fine and clean up expense, saying they just cleaned their lot in August, and that they did not receive their 30-day notice.  The protest letter stated that the Arnolds had never received their 30-day notice, which was sent on September 15th and asked if this notice had been certified.   The Arnolds also stated that they had their lot cleaned of weeds in August and had a $100 receipt from CB Realty for such services.  Mr. Arnold also stated that he was at his property in mid-September to finalize the dock repairs and had not seen any weed problem at that time.  Ms. Shockley responded to the protest by saying that the Arnolds property had an on-going weed problem and that the original warning that was issued in April was never answered by the Arnold’s, Ms. Shockley had to find out from another property manager that Bill Partridge was responsible for the Arnolds property and went to him in May to have him clean the lot.  Mr. Sweeney asked how weeds could grow so fast if Ms. Shockley had taken the pictures on September 1st and Mr. Arnold stated that he had property cleaned in August.  Ms. Shockley said the original notice stated that the weeds needed to be cleared from the side of the Arnold’s property that bordered Lot 208, Richards by the canal and dock.  Ms. Shockley said that when her clean up guy went on October 23rd to clean the weeds by the canal and dock, she also had him clear the weeds that were in front of the property by the street and down in the driveway in the flower beds.  She also had round up sprayed to keep the weed problem from occurring so fast again.  Ms. Shockley asked the Board to rescind the $500 citation but to ask Mr. Arnold to pay for the services of clearing his property of weeds, which was $80, which included the spraying of round-up.  Mr. Johnson asked if the warning letter was sent certified and Ms. Shockley responded that it had not been.  Mr. Kossnar suggested that the fine be reduced to $250. 
Mr. Sweeney made a motion to reduce the fine to $150 which includes the cost of clean up and round up.  The notice is to be sent certified and Mr. Arnold is to be given 10 days from receipt of notice to pay the reduced fine.  If Mr. Arnold does not pay within the time allotted the $500 citation plus the $80 clean up fee stands.  The motion was seconded and carried.

John Churchill has prepared and recorded a First Amendment to the CC&R’s regarding section 10.2 (insurance clause), which was approved by the members at the last annual meeting.  Mr. Sweeney asked for a copy of the amendment for his files.  Mr. Svider suggested that a copy of the amendment go out with the quarterly statements to all homeowners.

Sue has not paid Mike Roberts for gardening services because he has not submitted a monthly invoice as asked to do, so you will not see a check to him in Prepaid Bills for Approval this month.  Mr. Sweeney asked if Mr. Roberts had been paid yet.  Ms. Shockley responded that he had not submitted an invoice as asked to do, so no check had been issued.
Mr. Sweeney made a motion to approve the Bookkeeper’s Report, the prepaid bills and bills for approval for November 2008.  Mr. Sweeney included in the motion to pay Mike Roberts monthly payment of $525, but not to release payment until Mr. Roberts provides Ms. Shockley with the monthly invoice.  The motion was seconded and carried.

No citations were issued.

GENERAL MANAGER’S REPORT
Ms. Shockley stated that she had not received any proposals for the grounds keeper position but would keep on working on it.

Ms. Shockley stated she had received the proposal from Mike’s Contracting for grading and re-graveling the common lot and had emailed it to all Board members for approval but had responses only from Chuck Baker, Laura Lancaster, Al McPherson and Larry St. George.  Mr. Kossnar and Mr. Sweeney stated that they had both replied to the email, but Ms. Shockley never received them.  Mr. Sweeney made a motion to approve the proposal from Mike’s Contracting for grading and re-graveling the common lot.  The motion was seconded and carried.

Mr. Becker said he knew where the emails were going and told Ms. Shockley how to find her lost emails.  Ms. Shockley was grateful for the help.

Ms. Shockley reported that Arnold’s dock at lot 209 was under construction and that Ventzke lot 25 was working on getting their dock repaired or removed.  Stull lot 175 had not responded on the beam removal on his lot.

Ms. Shockley reported that Jay Louis was working on a proposal to repair the broken boards in the bridge areas.  Ms. Shockley thanked the following Board members for going with her and Mr. Louis on the bridge inspection:  Squeak, Chuck Baker, Jack Sweeney and Gary Svider. 

Ms. Shockley reported that there were no problems over the Thanksgiving holiday.

Committee Reports
Plans Review - Mr. Sweeney brought forward interior plans for Willoughby.  Mr. Sweeney made a motion to add the plans as a second set to the original building plans submitted.  The motion was seconded and carried.

Height Review – Mr. Chamber submitted a rough draft to increase the height limit to 26.6 feet.  Mr. Chambers explained that the foundation is going to be 6 inches below the street, the first story ceiling height will be 9 feet, typical floor joyces will be 2 feet to allow for A/C and such, second story ceiling height at 8 feet.  The main thing will be the trusses with a 40 foot span, any one who goes with tile roof will have to go minimum of four and 12 pitch to get your fall for your tile.  Mr. Chambers also suggest that Southwest and Box style houses remain at 18 feet, so people will not be able to build a 24 foot Box style house.  Mr. Kossnar questioned the set back issue, he said, if you are going to go up you need have more provided parking.  Mr. Kossnar said if you are going to build higher you would need more garage or more parking.  Mr. Chambers said that going up will increase the value of the homes in the Association.  Mr. Sweeney respond that he did not think the house value would increase for a home that is 26 feet high and 10 feet from the street.  Mr. Kossnar said such house would look terrible, Mr. Chambers responded that a 18 foot house that looks like a box is terrible, but a 26 foot house with nice roof and a nice look would make a difference.  Mr. Chambers stated that lots cost more than the houses and the only way to get the house value to increase is to raise the height limit.  Mr. Kossnar said that the height needed to be left at 18 feet and if the homeowner wanted more space than they need to dig down to the canal to get the second story.  Mr. Chambers said that this is not expectable situation because if you go below the water level, homeowners are not able to get flood insurance.  Mr. Chambers said the bank would not loan money if you are below the flood table.  Mr. Sweeney responded that the flood table is 369 and his patio is at 369 and 1/2 and his house is at 370, which gave him 5 feet to build below the street, and he has a two-story home.  Mr. Chambers responded that it depended on the street height and any one who wanted to remodel a home was not going to tear down a single story home to build a single story home. 

Mr. Kossnar said the situation has been asked and answered at the annual homeowners meeting two years ago when the increase issue was voted down.  Mr. Chambers said that it was voted down because of the stipulations that were placed on the height increase at the time.  Mr. Sweeney said he was opposed to height increase because he believes the issue was already addressed two years ago and 65 per cent of homeowner’s responded that they were not interested in exploring the height increase issue at that time.  Mr. Sweeney stated it was a waste of the Boards time.  Mr. Chambers stated that the Board did not have to waste their time that he would put together the information and it could be sent out with the quarterly statement as to not incur any extra postage cost.

Mr. Svider told Mr. Chambers his latest draft proposal looked better and had much more information than previous ones submitted, Mr. Kossnar injected with there were still no provisions for square foot of living downstairs, how many square foot will be allowed for upstairs and the parking issue and setback issues.  Mr. Chambers replied that it was outlined in the 2nd and 3rd page and was in the Associations CC&Rs-5 feet set back on side yard and 10 foot set back in front.  Mr. Kossnar asked what if the original set back was 3 feet or zero set back?  Mr. Chambers replied that homeowners that do tear down their home to go two stories should have original set backs grandfathered, if they leave the front wall and have the bearing footings to do so and if not, they should have to comply with the sets backs set forth in the CC&R’s.  Mr. Chambers said the Board still has the right to approve the architecture of such homes as set forth in the CC&R’s.  Mr. Sweeney replied the Board has never had to resort to that method.  The Board only enforces the setbacks and height.

Mr. Coon asked that the Board let Mr. Chambers explore the height issue with the Association, in the quarterly mailing.  Mr. Kossnar and Mr. Sweeney voiced there concern and were opposed to exploring this issue any further.  Mr. Gallio asked why the Board would not let Mr. Chambers explore the height issue any further, he would like to have a two story house on his lot which is on the front row.  Mr. Sweeney said this issue has gone on for 4 years and has been voted down time and time again and he does not want to waste any more time on this issue.  Mr. Gallio said, there were Board members that wanted to waste their time and it was time for change. 

Mr. Sweeney told Mr. Chambers he could not make a motion on a proposal that did not exists.  Mr. Coon and Mr. Johnson said that the Board should let Mr. Chambers have the option to prepare the proposal and let the homeowners decide if the Board should explore the issue any further.  Mr. Sweeney pointed out to the Board that Mr. Chambers was asked time after time to put together a formal proposal with all the information so the Board could approve it to go out to the Association for a vote, but that Mr. Chambers still has not submitted such a proposal.  Mr. Sweeney asked Mr. Chambers once again to go back and do his research and submit a proposal with all the pertinent information needed for the Board to approve it to go out to the Association for a vote.

Mr. Chambers made a motion to go up 28 feet going by all the original grandfathered setbacks.  The motion was seconded but did not carry.

The Board once again told Mr. Chambers they were allowing him to put together a professional proposal, one that outlined all criteria discussed for the height increase as an amendment to the CC&R’s and once the Board approves such a proposal it can go out to the Association for a vote. 

OLD BUSINESS
None

NEW BUSINESS
Mr. Sweeney and Mr. Kossnar both responded with water leaks behind the mailbox area and the trash area.  Ms. Shockley said she would look into the leaks and have them repaired immediately.

ADJOURNMENT
The meeting adjourned at 7:50pm
Submitted by Recording Secretary, Cheryl Shockley