Board of Directors
Regular Meeting
JULY 6, 2009

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

President:  Gary Svider
Vice President:  Jack Sweeney
Secretary/Treasurer:  Chuck Baker
Board Members:  William (Squeak) Kossnar, Brandon Johnson and Joe Price, Blane Coon, Rob Troxler and Chris Chambers
Board Members:  Joe Maxwell and Laura Lancaster

Guests:  Carla Faulkner (RGR) & Mr. and Mrs. Manos Lot 53
General Manager:  Cheryl Shockley
Legal Counsel:  John C. Churchill

Jack Sweeney moved to approve the Minutes of the Regular Meeting of June 1, 2009. The motion was seconded and carried unanimously.

Chuck Baker moved to approve the June 2009 Balance Sheet.  The motion was seconded and carried unanimously.

Jack Sweeney moved to approve the June 2009 Profit and Loss Statement.  Discussion:  Mr. Sweeney asked that the bridge repair put under Capital Improvements, not Repairs and Maintenance.  Also the sinkhole repair at 8722 Navajo Lane be paid from the Kenko account since it was a sewer issue.  The motion was seconded and carried unanimously. 

Chuck Baker made a motion to approve the June Prepaid Bills and Bills for Approval.  The motion was seconded and carried unanimously.

Submitted by Sue Thompson

Barbara O’Connor, our CPA, said she would have the 2008 audit prepared by the end of July.

I received a rental security deposit from Pollett (Lot 43), Farmer (Lot 118) and Schroth, Lot 89 (the latter to be deposited on July’s books).  Meinen (Lot 44) is the only defendant in the lawsuit who hasn’t sent his rental security deposit.   Troxler (Lot 160) said he tried renting his property once, and it was a disaster, so his status is returned to a non-rental.  I am still awaiting security deposits from Lots 44, 50, 64, 75, 112, 133, 163/164, 171 & 214.   Mr. Arnold, Lot 209, was refunded $350 as settlement of his lot-clean up fine.

Mr. Baker asked if any one had been heard from Mr. Arnold.  Ms. Shockley replied that his check had cleared and the balance of the amount he owed was sent back to him in the quarterly statement.

Late charges were assessed to 17 lots.

Delinquent accounts and status are listed on the enclosed spreadsheet.   Jo Churchill and I had a discussion this week about foreclosures and liens.  I asked her to pose the question, via John, about deleting fines when properties become bank owned.  I would think those are something that should not be passed on to someone else.

White line citations were issued to Lots 52, 64, 73 & 102.  The citation issued to Lot 89 for failure to submit a Tenant Information Sheet was voided since the people staying in the house were not tenants, but merely guests of the owners.

Squeak Kossnar made a motion to approve the June Bookkeeper’s Report.  The motion was seconded and carried unanimously. 

Mr. Baker wanted to know if there was policy for 3rd, 4th and 5th violation.  He noted that it seemed that the Northcutt rental seemed to get a lot of parking violations.  Ms. Shockley reported that the first offense is $25 and after that it is $50 for each offense.

Ms. Shockley reported that she has been having a problem with Lot 201 Grybowski, 8664 Hopi, they have (2) Razors that they drive recklessly through out the Keys property.  She stated that on more that one occasion in the last several years she has witnessed them race out of their driveway and not stop at the stop sign on Hopi and Navajo.  She said she has given them plenty of warnings about their driving and they have ignored her completely.  They have refused to pay their fine from last Labor Day weekend for reckless driving and they have one other violation for Labor Day 2007 for reckless driving which they did pay.
Ms. Shockley reported that on Saturday night or the early morning hours of Fourth of July weekend, the security on duty witnessed (3) razors exit the Grybowski’s property at a high rate of speed, they ran the stop sign at Hopi and Navajo. (2) Of these vehicles continued through the caution tape and up the Brooke Water hill.  Ms. Shockley said that the security people on duty tried to talk to these individuals and explain to them about the hill being a danger and that was why the caution barriers were up.  But that they continued to race through the exit and entrance gate at a high rate of speed.  Ms. Shockley stated that she sent the Grybowski’s (3) $50 citations for reckless driving. 

Mr. Sweeney stated that he knew that the Grybowski’s had (2) razors and that the third razor might belong to Lot 204 the Lucero’s.  Ms. Shockley thought that was the case also but when security reported the incident to her, they said the Lucero’s razor was parked, that was why she gave all (3) citations to Grybowski’s.

Mr. Sweeney said he sides with Ms. Shockley in this matter; he thinks that they are a hazard as well as annoying.  Mr. Sweeney asked Mr. Churchill what kind of action could be taken against the Grybowski’s besides the citations that they obviously are not paying.  Mr. Churchill replied that if the Grybowski’s are not paying the citations, a lien can be filed and then the HOA could foreclose on their property.  

Ms. Kossnar responded that in the CC&R’s there is a Nuisances rule.  Mr. Churchill said if their conduct has risen to the point of nuisance than the HOA can seek court intervention, which would be the Superior Court.

Mr. Sweeney asked Mr. Churchill to write a letter to the Grybowski’s stating that their behavior has gone beyond giving any more warnings or citations and if they continue this type of reckless driving on the Associations property than the next step will be to get a court injunction against them driving their vehicles on the property.

Mr. Sweeney made a motion for John Churchill to send a letter to Lot 201, Grybowski, advising them to cease their reckless behavior while on HOA property.  The motion was seconded and carried unanimously.

Ms. Shockley reported that Lot 106, Robinson, 8865 Papago Loop had taken down there temporary shade that they had erected on the front of their property.

Mr. Svider asked if the fines could be raised for homeowners that continue to disobey the rules, such as after 3 offenses the fine would be $500.  Mr. Sweeney stated that without out a vote of the entire HOA the fine amounts could not be changed by the Board.

Mr. Svider asked that the issue of trespassing be addressed again.  He reported an incident that involved the Northcutt rental houses, where the renters tied up to J.T. on the Keys motel and after being told not to they got verbally abusive.  Mr. Svider was advised to call the Sheriff’s department if the issue arises again. 

Mr. Svider gave an update on the Willoughby issue and stated that the La Paz County Community Development said that as long as Mr. Willoughby has the fence around his property there was nothing more that they could do for us.  Mr. Kossnar stated that they told him that our Association has to go after Mr. Willoughby through court action if he is violation the CC&R’s.  Mr. Kossnar also told the Board that Mr. Willoughby has never picked up the corrections from the County since last November and he has no permit on file only a plan check fee.  If there is no permit, then there are no inspections being done every six months, per the County he is in no violation of any thing.  The County also advised Mr. Kossnar that the case was dismissed by John Drum after the last hearing. 

Mr. Sweeney said he had a conversation with John Drum after the last meeting and was told if Mr. Willoughby did not have his permit and the construction was not under way in six months, he would take action against him.  Mr. Kossnar said he would go to the Board of Supervisors and see what he could do to get the matter heard at the next meeting.

Ms. Shockley reported that Security was set for Labor Day weekend.

Mr. Kossnar asked Ms. Shockley to make sure the trash enclosure doors were left open throughout the entire holiday weekend.  Ms. Shockley stated she had closed some of the doors because the trash bins were full in that area, but from now on she would leave them open until the trash was picked up.

Mr. Svider asked what further action was needed to pursue those homeowners who have not submitted their $1000 rental security deposit.  Mr. Price asked if we could impose some kind of fine for those who have not.  Mr. Churchill advised that any time we impose a fine we have to pass a rule.  Mr. Baker asked if these deposits were some that the Association has been trying to collect for some time or were they just recent rental properties.  Ms. Shockley responded that lot 44 was the only defendant in the lawsuit who has not paid his deposit.  Lots 44, 50, 64, 112, 133 and 171 have all been renting since last summer the only new ones are 163/164 & 214, they have only been renting since this summer. 

The Board asked Ms. Shockley to give Mr. Churchill a list of all rental houses that are still renting and have not paid their deposits.  The Board asked that the letter state that they have 30-days to pay their deposit and if they do not, a lien will be filed.  Mr. Baker made a motion to have Mr. Churchill write a letter to all the homeowners who have not paid their deposit with a 30-day notice.  The motion was seconded and carried unanimously.

Mr. Svider asked about the accounts receivable summary and commented that there were 13 delinquent accounts and that did not include the bank owned or foreclosures.  He asked if there was something more that needed to be done to get these accounts current.  Mr. Churchill said that past due accounts get a first letter from the HOA stating that they are past due and if they are not brought current their account will be turned over to his office.  The next step is for his office to send out a second letter stating to pay up or a lien will be filed against their property; this letter is accompanied by a copy of the lien that will be filed.  Third letter is a copy of the lien that has been filed.  Mr. Churchill explained this was a process he has had in place for years.  Mr. Baker commented that most of the accounts listed are from April so they are not that much past due.  Ms. Shockley commented that the third quarter statements had just been sent so technically they are only past due $150.00 for the previous quarter and the new dues are not past due until September 15th.

Ms. Shockley presented an email from a Crystal Smith about an incident that happened on Papago Loop on Memorial Day weekend concerning an individual showering without clothes.  Ms. Smith expressed that she thought Ms. Shockley should apologize to the individuals involved because it had been discussed in her General Manager’s report at the June Board meeting.  Mr. Sweeney and Mr. Chambers both agreed that Ms. Shockley had nothing to do with the incident because she was not even on duty.  Mr. Chambers responded that he had been at the gate with Mr. Cosby who was on duty at the time, when La Paz County Sheriff’s officers arrived stating that they had received a complaint from persons renting a house on Papago Loop about a man bathing naked.  The Board expressed that Ms. Shockley had done nothing wrong and that she is required by the Board to keep a daily report of incidents that happen in the Keys, especially on holiday weekends.

Mr. Kossnar presented a letter from Mr. & Mrs. Challoner, Lot 94, 8820 Papago Loop, in the letter they expressed concerns about Ms. Shockley and Mr. Cosby being able to handle security issues during the holiday weekend.  They commented that they believed that Sheriff’s department could handle things better.  They had their home broken into by a drunken guest of a homeowner on their street.  Ms. Shockley responded that Wendy Wynkoop had been on duty the night of the incident and she did not know how Wendy could have predicted that the drunken girl would mistake the Challoner home as the one she was staying at and break the window to get back in.  It was clearly a bad judgment call by the girl who was drunk and she did not break in with the intention of stealing any thing. 

The Challoner’s also expressed concerns with the Buckskin Sanitation Districting dumping raw sewage into the manhole at the end of Apache Loop.  Mr. Kossnar said that he had spoken with Steve Jackson about the incident and had claimed that someone had dumped rags into the system and that they were looking into getting this issue resolved.  Mr. Sweeney stated that Buckskin should not be dumping anything other that clear water down the manhole for maintenance purposes and that if it happens again the sheriff’s department should be called for trespassing and dumping on private property, Mr. Churchill agreed.  Ms. Shockley stated that she had also spoken with Buckskin Sanitation District and they had assured her that this would not happen again and that any time River Septic is allowed to flush our lines on Apache there is to be supervision by Steve Jackson.


Regular meeting adjourned to executive session at 7:12pm

Meeting reconvened to regular session at 7:47

No action to be taken from executive session.

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