LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
FEBRUARY 2, 2009

CALL TO ORDER
President Gary Svider called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:07 p.m.

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

OTHERS PRESENT
Guests:  Carla Faulkner (RGR)
General Manager:  Cheryl Shockley
Legal Counsel:  John C. Churchill
           
INTRODUCTIONS

MINUTES
Jack Sweeney moved to approve the Minutes of the Regular Meeting of January 12, 2009.  The motion was seconded and carried unanimously.

CALL TO PUBLIC
Carla Faulkner of Robert Gory Realty asked the Board if there was anything that they could do as a whole for the Association concerning the FEMA rules. She asked if an engineer could document that the entire Keys is not in the flood plain.  Mr. Sweeney responded that each homeowner is responsible for their own property and that a civil engineer has to come out and fill out documentation showing that no living structure is below 369 feet.  He said the Association is not responsible for this issue because it is a financing requirement.
 
FINANCIAL REPORTS
Squeak Kossnar moved to approve the January 2009 Balance Sheet.  The motion was seconded and carried unanimously.

Jack Sweeney moved to approve the January 2009 Profit and Loss Statement.  The motion was seconded and carried unanimously.

BOOKKEEPER REPORT (Submitted by Sue Thompson)
As requested, delinquent accounts have been put on a spreadsheet, and it is submitted under separate attachment.

Mr. Robeson (lot 255) is disputing the necessity of clean up of his lot where we fined him $500 plus $80 in lot clean up fees.  He said he did not receive our notice, and that David Plunkett Realty was monitoring the property and confirmed that the property was maintained during the time we stated it was unsightly.  Because there is no proof of the condition of the lot, and because he did not receive notice, he is not paying the charges.  A copy of the letter was given to Cheryl.

I just received an anonymous letter complaining about how we haven’t busted folks for sleeping in RV’s, one being behind the white cinderblock building on the last canal across from the Jaschke house, and a motorhome with people sleeping in it, off and on, on Riverside Drive.  This full-time resident said he/she is not signing their name “because the Board consistently creates animosity between residents by posting who complains about what.”  Mr. Sweeney addressed the issue of the anonymous letter and said this issue had been addressed at last months meeting and the 5th wheel trailer that was parked on Riverside Drive had been moved and the RV located behind the May’s residence is clearly behind a locked gate on their property and is not being lived in.

Lot 143 is requesting a late fee waiver, since they say they did not receive their October statement.  They have always paid on time, and I said I would submit their request to the Board. 

Lot 137 (Rexroad) is in foreclosure and scheduled for Trustee’s Sale on 3/18/09. 

1099 forms were mailed out to all independent contractors.

I transferred $5,000 into the Reserve account and $10,555 into the Capital Improvements account, per the 10-year plan.  I will work on the proposed 2009 budget and format the 2008 financials for the annual meeting notice mail out in the next week or so. 

No citations were issued.
Jack Sweeney made a motion to approve the Bookkeeper’s Report, Prepaid Bills and Bills for Approval.  The motion was seconded and carried.

GENERAL MANAGER’S REPORT
Ms. Shockley reported that Verizon had fixed patches on Yaqui with black concrete and had also fixed a patch at the end of Apache Loop.

Ms. Shockley reported that she had a complaint from a homeowner about the raccoons that run wild in the Keys and was asked if there was anything that could be done about the problem.  It was suggested that Animal Control be called and if they could not do anything Mr. Chambers said he had a number for Fish and Game and maybe they could help if Animal Control could not.

Ms. Shockley reported to APS two street lights out, one on Yaqui and one on Riverside Drive.

Mr. Svider reported that the patch on Moovalya Drive in front of Joe Price’s residence was sinking.

Ms. Lancaster asked if the rock issue had been resolved at Bermel’s residence.  Ms. Lancaster responded in an email to Ms. Shockley that she had driven by and thought that the rock was an eyesore and should be removed.  No other Board members responded to the issue.

Committee Reports

Protest Committee – Patrick Robeson (Lot 255) 8764 Navajo Lane is protesting his $580 clean up citation because he said he never received the original notice.  He stated that David Plunkett of Plunkett Realty is the property manager and that Mr. Plunkett informed him that the lot looked in good condition.  Ms. Shockley reported that Mr. Robeson had changed his mailing address on Lot #57, but did not report an address change on Lot 255 until December 2008, he also never reported that Plunkett was the property manager.  Ms. Shockley presented documentation and pictures showing the weed problem in September 2008.  Mr. Baker made a motion to reduce the citation to $80 if it was paid within 30-days of notice.  The motion was seconded and carried.

Height Review –Mr. Chamber’s brought the following proposal to the Board:  R-1 Residential – Single Family Dwelling – Set Backs 5’ Side Yard – 10’ from the street side property line on all new construction – 27’ maximum height requirement, not closer than 20’ from property line (street side) – 18’ height requirement maximum at the existing set backs – 2nd story to have a maximum buildable space of 75% of 1st floor – Minimum garage size on any lot with 50’ or greater to be 1200 sq. ft. – Height limits set off of street in front of the residence.

Mr. Baker asked Mr. Chambers if this was what he expected to be voted on.  Mr. Kossnar asked about the garage size, what if you don’t have 50’ or greater.  Mr. Chambers said that was up for discussion.  Mr. Baker asked what was meant by “height limits set off of street”; Mr. Chambers responded that it was just as the CC&R’s are now.  Mr. Kossnar asked how far off the street and Mr. Chambers responded that you couldn’t build 27’ unless you go back 20 feet off of property line.  Mr. Baker asked Mr. Chambers how this would apply to his property and Mr. Chambers replied that his property was existing so he could stay at the 3’ set back but could not go any higher than 18’, if he wanted to 27’ he would have to tear down his house and go back 20’ back off the property line.  Mr. Kossnar asked about the existing set backs, if you are grandfather at 3’ setbacks, do you have to tear down your house to go up to 27’.  Mr. Chambers replied that was something the Board could decide. 

Mr. Kossnar said that Mr. Chambers had a lot of loopholes in it.  Mr. Chambers said his proposal pretty much spells out the rules and it is as clear as the rules the Association has now. 

Mr. Baker asked what if a property is not 50 foot or greater, what size garage do they build?  Mr. Baker told Mr. Chambers that hours and more hours went into the CC&R’s and there are still loopholes.  Mr. Chambers responded then there is no requirement for 50’ or less, there is no requirement now in the CC&R’s, there is no requirement for garages.  Mr. Kossnar responded that the County has a garage or carport requirement. 

Mr. Chambers said there are County requirements and they are not going to let you build a house without a garage.  He said there are no loopholes because you have to adhere by the County regulations.  Mr. Chambers stated he had outlined everything the Board has asked of him. 

Mr. Baker told Mr. Chambers that the Board had asked him to submit a proposal that made since and that his proposal had to many things wrong with it and he was not in favor of it.  Mr. Baker asked why wasn’t an 18’ height good enough, the house he built for his parents is two story and it meets all the requirements for the 18’ rule.

Mr. Churchill asked Mr. Chambers if the set backs, 5’ side yards, 10’ from street applied only to new construction.  Mr. Chambers responded those set backs were for existing construction and could not go higher than 18’, new construction must be 20’ from property line if building to 27’.  Mr. Churchill asked Mr. Chambers to explain the 18’ requirement at the existing setbacks.  Mr. Chambers responded that homeowners can go to 18’ at their existing set backs as described in the CC&R’s, but if they want to build a home that this 27’ in height they must go back 20’.  Mr. Sweeney asked if you were going to put on a second story wouldn’t that be considered “new construction”.  Mr. Churchill asked Mr. Chambers if in his proposal a homeowner could a 30’ house with 3’ to 5’ side yard set backs.  Mr. Chambers responded “yes”.

Ms. Lancaster asked if Arizona had any laws that stated a person could not encroach on some one’s view or sunlight, like they do in some places like England and such.  Mr. Churchill responded “no”, that we don’t go by old English standards.

Mr. Svider stated that the County has a rule that is 55’ lot coverage, if you are going to have more, you will have to file for a variance. 

Mr. Kossnar stated that our CC&R’s say that a structure must have 1400sq. feet on the ground floor, which does not include the garage or carport.  Mr. Churchill said the 1400sq. feet must be livable space. 

Mr. Svider said the Board needed to move on and resolve this and asked if changing Mr. Chambers proposal on garage size to a minimum of 800sq. feet would be acceptable.  Mr. Svider asked instead of changing the CC&R’s, would adding to Mr. Chambers proposal that the minimum size garage must be 800sq. feet.  Mr. Churchill responded that right now there is no minimum for garage size.  Mr. Sweeney said that the 1400 sq. footage rule was going to have to change to include garage space also.  Mr. Svider asked Mr. Chambers as the Head of his committee what he wanted to do.  Mr. Chambers responded that he would like to see the total dwelling size be changed to include the garage area. 

Mr. Svider asked Mr. Churchill if both measures should be put out to a vote, the minimum garage size and the entire residence being 1400 sq. feet.  Mr. Churchill said it was probably not a good idea; you would not want to have one without the over.  It was suggested to Mr. Chambers to merge it all into one proposal. 

Mr. Sweeney stated that the Board was once again at the eleventh hour and nothing has been resolved.

Ms. Lancaster asked Mr. Chambers if he could come up with drawings to present to the HOA.  Mr. Chambers said he would if the proposal passed the Board.

Mr. Baker made a motion that Mr. Chambers’s proposal not be approved for the Annual meeting as it proposed.  The motion was seconded. Mr. Baker rescinded his motion after the following discussion:

Mr. Baker explained that his reasoning’s were because it was not presented in a professional manner that could be brought before the HOA for a vote.  Mr. Baker suggested that a special meeting be held in one week’s time to give Mr. Chambers time to put in the changes that the Board had suggested and to put the proposal in a manner that represented the CC&R’s.  Mr. Baker asked Mr. Chambers to send out a rough draft of the proposal a few days before the special meeting, so changes could be made if needed.  Mr. Sweeney told Mr. Chamber’s that he would like to see him put an actual draft of what the CC&R’s would look like if his changes were to be placed in the CC&R’s and the old section was removed.

The Board called for a special meeting to be held on Wednesday, February 11th at 6:00pm to vote on Mr. Chamber’s revised proposal in the form of the CC&R’s.

OLD BUSINESS
None-Renter’s Proposal to be discussed in Executive Session

NEW BUSINESS
T&C Seal Coat Proposal-If the project is to be separated in two with completions at different months, the crack fill will be $5,886.00 and the seal coating will be $29,365.00. To do the project at different times would mean an extra move in cost of $1,500.00.  Plus the complex would need to be scheduled for street closures twice within a six-month period. Mr. Chambers stated we are not even into the 5-year plan and we’re doing the streets every two years.  Mr. Chambers asked if it was time to do another seal coat.  Mr. Chambers said he would like to see the cracks filled but thinks that we could hold off one more year to seal coat the streets.  Mr. Kossnar said the streets would look awful with only the cracks filled and wants the streets seal coated at the same time as the crack filling.  Mr. Sweeney said it did not make financial sense to only fill the cracks this spring and come back in the fall and do the seal coat.  Mr. Baker suggested that we fill the cracks this year and do a seal coat the following year.  Mr. Baker made a motion to fill the cracks this year and do a seal coat the following year.  The motion was seconded and after a brief discussion about how the streets would look, Mr. Baker rescinded his motion.  Mr. Kossnar made a motion to fill the cracks and seal coat the streets at the same time this spring.  The motion was seconded and carried with 5 in favor, 2 abstained and 1 opposed.

It was brought to the attention of the Board that Al McPherson has missed the last (5) meetings in a row.  Ms. Shockley stated in addition to the 5 meetings he has missed he has also missed the June and August meetings in 2008.  Mr. Churchill stated according to the CC&R’s section 4.4, “The failure of a Board member to attend three Board meetings during any calendar year shall, in the discretion of the Board, be deemed a vacancy.”  Mr. Kossnar made a motion to vacate the seat of Mr. McPherson from the Board due to lack of attendance.  The motion was seconded and carried with 7 in favor and 1 abstained. Discussion:  Ms. Lancaster wanted to note that Mr. Johnson has also missed several meetings, due to personal circumstances and that he should make the effort to attend the meetings since he lives in Parker.  Ms. Lancaster said she has only missed one meeting and she makes the effort to drive from California every month to attend the meetings.

It was decided by the Board that the vacancy would be filled at the Annual Meeting.  Ms. Shockley was asked by the Board to post the vacancy on the website and ask for a response by March 1, 2009.

Adjourn regular meeting to go into Executive Session at 7:42pm

Readjourn regular session at 8:12pm
Ms. Lancaster was asked to join the regular meeting.  Mr. Svider asked to the Board to entertain a motion to take action upon the executive session.  Mr. Sweeney made a motion to adopt and to put to vote the removing of the rental security deposit per the resolution draft 1C that was submitted, with verbiage changes by John Churchill that are acceptable to both parties.  The motion was seconded and carried.

Mr. Churchill explained to Ms. Lancaster that the majority of the Board was recommending that the deposit be rescinded in light of the monies never being used and for a way to have the lawsuit be dropped by the renters.  Mr. Churchill stated that 2/3 of the votes were needed to pass a rule change and if alternatives remained in the proposal as it was worded, there was a good chance it would not pass.  He recommended to the Board that they remove the $500 option and ask the HOA to vote either for rescinding the rule or keeping the rule as is.  Mr. Churchill told Ms. Lancaster that all this was contingent on the renter’s stating in writing that they agree to drop the lawsuit.  Ms. Lancaster was in agreement and would bring the changes to the plaintiff’s for their approval.

ADJOURNMENT
The meeting adjourned at 8:20pm
Submitted by Recording Secretary, Cheryl Shockley

APPROVED BY BOARD OF DIRECTORS, MARCH 2, 2009