LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
SEPTEMBER 14, 2009

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

PRESENT
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, Chris Chambers and Laura Lancaster
           
ABSENT
Board Members:  Joe Maxwell

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

MINUTES
Jack Sweeney moved to approve the Minutes of the Regular Meeting of July 6, 2009. The motion was seconded and carried unanimously.

CALL TO PUBLIC
 
FINANCIAL REPORTS
Laura Lancaster moved to approve the July 2009 Balance Sheet.  The motion was seconded and carried unanimously.

Joe Price moved to approve the July 2009 Profit and Loss Statement.  The motion was seconded and carried unanimously. 

Jack Sweeney moved to approve the August 2009 Balance Sheet.  Discussion:  Mr. Sweeney asked about the balance of $500 for Lot 44’s rental deposit.  Ms. Shockley replied that Mr. Meinen had asked if he could make payments on the deposit as he was having financial difficulties and Mr. Churchill and given the OK.  The motion was seconded and carried unanimously.

Joe Price moved to approve the August 2009 Profit and Loss Statement.  The motion was seconded and carried unanimously. 

Jack Sweeney made a motion to approve the Bookkeeper’s Report, July & August Prepaid Bills and Bills for Approval.  Discussion:  Mrs. Lancaster asked where the computer repair bill was and Ms. Shockley responded she did not know why Sue had not included it.  Mr. Svider asked about the payment to Steve Jackson in the amount of $45 and Ms. Shockley replied that is was for the back flow test required by Brooke Water.   The motion was seconded and carried unanimously.

Mr. Baker made a motion to approve the computer repairs in the amount of $1010.00.  Discussion:  Mr. Baker asked if the repairs had been paid already and Ms. Shockley replied that they had not, she told Sue not to pay it until the Board approved it.  Mr. Baker commented that he thought the repairs were too much and that a whole new computer could have been bought for the price that was spent on repairs.  Ms. Shockley commented that the Association owns two computers and she had been doing most of her work on the oldest computer when it had been attacked by viruses.  She then tried to use the newer computer that Sue had given her but there were problems with that computer also.  Mr. Baker caution Ms. Shockley that next time she had such an expensive repair that she needed to get Board approval.  Ms. Lancaster suggested that Ms. Shockley could get an online backup service to backup her files for approximately $55 per year.  Mr. Johnson told Ms. Shockley that she could get a 5 GB mini drive for under $100.  Ms. Shockley said she would check into both methods.   The motion was seconded and carried unanimously. 

BOOKKEEPER REPORT
Submitted by Sue Thompson
The reviewed audit is not yet complete, but it is close.  Barbara promises it by the end of next week.

John Churchill’s office sent letters to the owners of Lots 43, 50, 64, 112 & 171 who have not submitted their rental security deposits per statements I sent.  The status on those is:  44 has paid half, with the other half due by 9/30; 50 has paid; 64 says he isn’t renting, and I let Faye know at Churchill’s office to let the owner know that he needs to send a letter requesting RGR to take his property out of their rental pool, and RGR must acknowledge the letter, then provide us with a fully signed copy.  Lot 112 says they don’t have the money to pay since they are barely making their mortgage payments, and Lot 171 is non-responsive.   

There are two other rental owners (lots 4 and 163) who have not responded to my initial letters to them sent in July.  Their deadline was August 23, so I will give that information to Churchill’s office so they can send them demand letters.

The owner of Lot 237 who lost his house in foreclosure also filed bankruptcy.  $345 in dues and late fees were written off.  Also, I wrote off former-owner citations on Lot 120 in the amount of $400, which is now owned by the bank.

Ms. Shockley asked Mr. Churchill for some clarification when it came to issuing citations on properties that are in foreclosure and have filed bankruptcy. Mr. Churchill told Ms. Shockley to keep issuing citations to these properties because there was a chance they might get their property back and that the property owner is liable for any debts after the filing of bankruptcy.

Mr. Arnold, Lot 209, acknowledged the $350 refund check regarding the disputed lot clean up fine & costs.  He feels the remaining $280 should be refunded.  I gave Cheryl a copy of his July 20 letter.  I will be glad to respond to him after some direction from the Board.

Cheryl told me that the $677.89 expense incurred by Mike’s Contracting to fix the sinkhole at the exit gate is a Kenko issue.  I will transfer that amount from the Kenko bank account to the General Account to reimburse it.  That transaction will appear on the September financials.

I understand that Gary wants the bridge painting expense to come from the Capital Improvements bank account.  The total amount spent on the bridge repairs was $22,445, and I expensed all repairs from the General Account, but they can be journaled from an expense to a capital expenditure, if our CPA so desires.  The Capital Improvements bank account is funded per Chuck’s 10-year budget, and year 8 was funded this year with $10,555.  After street improvements of $31,476 including re-striping, we were over budget on our capital improvements in the approximate amount of $7,700.   Add that to the $22,445 for the bridges, and we are $30,145 over budget.   We will not catch up in the remaining two years of Chuck’s 10-year plan, and as you can see on the Balance Sheet, the Capital Improvements bank account is almost dry.

White line citations were issued to Lots 113, 166, 202, 131 (2x’s), 118, 103, 102 & 47.  Reckless driving citations were issued to Lots 4 and 201 (3x’s), the latter having a total of four unpaid reckless driving citations, which they are protesting.  A copy of Grybowski’s July 21 letter was given to Cheryl.

Mr. Svider brought up the issue of reviewing the 10-year budge, he stated that at this time as mentioned in Sue’s report we are approximately $30.000 over budget.  Mr. Baker replied at the time he came up with this budget it was strictly for the streets, so by including the bridge project in the plan it has gone over budget.  Mr. Baker said he when he set up this plan he talked to the people who maintain the Association streets and asked what needed to be done and when. He said that this plan did not include anything else.  Mr. Baker stated that we are close to that plan coming to an end and suggested that the Board revisit the issue and come up with another 10-year plan. 

Mr. Svider replied that was what he had in mind.  He brought up two solutions:  Leave the plan alone or transfer money to into the account only when we apply any bills to that account or revisit the issue and change the budget.  Mr. Svider said according to Sue that by putting in $10,555 in the account we will not catch up to the budget set up.    Mr. Sweeney stated that we have a CD with $107,000 and if the capital improvement account is running short we can certainly transfer funds.  Mr. Sweeney said that it might sound like the Association is running out of money and that certainly was not the case.  Mr. Baker stated that at the time the budget was set, some people wanted separate accounts to keep track of the monies used, that why it was set up the way it is.   

Mr. Baker suggested that when the Board works on a budget for next year, they come up with a long term plan.  Mr. Baker also suggested that the Board make sure the dues are doing more than just covering the expenses, in case of some future large repairs.

GENERAL MANAGER’S REPORT
Ms. Shockley reported that she had contacted APS about (4) street lights out.  2 on Papago, 1 on Yaqui and 1 on Riverside Drive.

Ms. Shockley reported that she had removed several bridge signs that need to be re-lettered.  She also reported that the black mailbox that homeowners use for correspondence to her and Sue was broken.  She had bought a new one but when she opened package she found that the letter hole was so big that you could put your hand inside and pull out mail, she is investigating a new box. 

Two American flags are on order with Parker Supply.

Vega/Pratt Lot 120 has been taken over by the bank and cleaned up.

Ms. Shockley reported that she had talked to Mrs. Tweedy about their boat being stored in front of their garage.  Mrs. Tweedy was under the assumption that if the boat was behind the white line and on the concrete it was on their property.  Ms. Tweedy asked Ms. Shockley to ask the Board to clarify the water meter's interpretation of the property line.  The Board responded that the water meters are usually used to mark the property and anything beyond the meters are Association's common area.  Mr. Sweeney responded that Mr. Tweedy had just added a room on his house and the he had a ten foot setback so as long as the boat was within the 10 foot there was nothing to be done.  Mr. Price said he thought there was a rule about no parking on POA’s property for no more than 72 hours or 3-days.  Ms. Shockley said she would measure the setback and talk with the Tweedy's about the situation.  Mr. Price said that there was another boat trailer parked on Yaqui that had been there for over 72 hours.  Ms. Shockley said she thought that these homeowners were still here and Mr. Price said it did not matter if they were still here, the trailer had been parked for over 3-days and needed to be move.  Ms. Shockley said there was no rule, so she could not issue a citation, she did say it was in the CC&R’s but the only thing to do was to contact persons in violation and give them a time line to move the vehicle.

Mr. Baker said that it seemed that she was giving out a lot of warnings and he thought it was discussed in a previous meeting that she was to stop giving warnings and just issue citations to violators.  Mr. Chambers and Mr. Sweeney said it was left up to Cheryl’s discretions on when to issue a citation.  Ms. Shockley said even when she gives warnings, there are homeowner’s who yell at her and accuse her of targeting them or harassing them.  She said she was getting tired of this abuse from homeowners when all she is doing her job as the Board has asked her to do.  The Board advised Ms. Shockley to tell homeowners that she is doing the job she was hired to do and if they have a problem then they need to come to a meeting and take it up with the Board, not with her. 

Mr. Kossnar said he was tired of these homeowners complaining and asked that they have some guts and show up a meeting and state their case.  Mr. Kossnar stated that Cheryl is doing the job the Board has asked her to do and if a homeowner does not like it, they need to run for a Board seat, he said he was tired of once a month giving up a Monday night to hear about these people who write letters and complain constantly about one thing or another and complain about the Board or Cheryl’s job.

COMMITTEE REPORTS

OLD BUSINESS
Mr. Sweeney expressed his confusion on the amount returned to Mr. Arnold; he stated that he thought Mr. Arnold had sent a check in the amount of $500.  Mr. Churchill corrected him and said he had sent a check in the amount of $630.00 which included the citation amount of $500, the clean up fee of $80 and a late fee for not paying the citation for $50.  Ms. Shockley stated that she had received the quarterly statements from Ms. Thomson and that a check was attached to Mr. Arnold’s statement without any explanation as to what he was paying.  Mr. Sweeney said that the Board should be done with this matter and the motion that was originally made should stand.  Ms. Shockley said she would get a breakdown from Ms. Thomson and send the explanation to Mr. Arnold and advise him this matter is closed.

 Mr. Johnson asked if there was any rule that said a person who is protesting a citation must show up in person and if there was not he asked the Board if one could be implemented.  Ms. Shockley read the protest procedure which is located on the back of the citation.  It states:  Protests must be submitted in writing, giving a detailed description of why they believe the fine has been imposed in error, dated and signed, and postmarked within 30 days of the date of the fine.  The protest will be brought up for discussion at the next regular board meeting, which the homeowner may attend, and at which time a decision will be made.  The homeowner will be notified by mail of the outcome.  Fines not paid within the 30 days of the date of the fine, or within 30 days after the date of notification of denial of protest will result in the filing of a lien on the lost owner’s property.  The legal costs of preparing and filing a lien on homeowner properties will b e borne by the homeowner.  Mr. Churchill told the Board that they cannot compel a homeowner appear at the meeting; they can waive their rights to not appear when they protest a citation.

Mr. Sweeney wanted it on record that the Grybowski’s accusations of him placing nails on the hill is not true.  Mr. Sweeney went and spoke to Mr. Tozer and he infadictly told him that he did not tell the Grybowski’s such a thing and when he heard them tell Cheryl that, he went over there and specifically told them that he did not tell them that Jack did it and he did not believe that Jack would do such a thing.  Mr. Sweeney also stated that when the incident happened he was probably out of town on vacation.  Mr. Sweeney stated that since he had been accused of this, he did not wish to partake in the discussion on the Grybowski’s, since he felt he would they would take is his opinions of the matter as being bias because of what they accused him of.  Mr. Sweeney stated that he would abstain to any voting.

The Board read the protest from Lot 201 Grybowski for the (3) reckless driving citations from July 4th and the recent email letter with the claims against Ms. Shockley.  The Board voted to uphold the citation in the amount of $300.  Ms. Lancaster noted that the Grybowski’s have a citation from September 2008 for reckless driving that they have not paid and a lien should be filed. 

The Board advised Mr. Churchill to write a letter to the Grybowski’s informing them that their protest had been heard and the citation had been upheld.  The Board also asked Mr. Churchill to file a lien against the 2008 citation that is still outstanding.  The Board advised Mr. Churchill to include in the letter that any further reckless driving will be handled with legal action.

Mr. Kossnar along with the Board stated that Ms. Shockley is instructed by the Board on how to do her job and that’s the way it is.  If a homeowner does not like the way the Board is conducting itself then the Board asks all homeowner’s to show up at the monthly meeting and express their concerns and if they don’t want to show up then keep their comments to themselves.

The Board advised Ms. Shockley the next time a homeowner starts to give her a hard time about her doing her job, she is advised to tell the homeowner to come to a meeting and speak to the Board in person.  It is not Ms. Shockley’s responsibility to answer to the homeowner, she answers to the Board.   

NEW BUSINESS
Mr. Svider stated he thought the raccoons in the Association were getting out of control and asked what could be done.  Mr. Kossnar replied that he had spoken with Doug at Animal Control and the only thing that they could do was lend the Association traps so we could trap them ourselves.  Ms. Shockley said that she would check with Arizona Game & Fish and see what they suggest. 

Open Comments
Brandon Johnson reported that an orange kayak had been stolen off his dock.

Regular meeting adjourned to executive session at 7:10pm.

Meeting reconvened to regular session at 7:30pm

ACTION TAKEN FROM EXECUTIVE SESSION
Mr. Kossnar made a motion to research an attorney to take legal action against lot 10 Willoughby for not complying with the CC&R’s.  The motion was seconded and carried unanimously.

Mr. Kossnar made a motion to remove Joe Maxwell from the Board of Directors due to non-attendance of four Board meetings since the Annual Meeting in April.  The motion was seconded and carried unanimously.

Mr. Troxler made the comment that he agrees with Mr. Kossnar and the Board has to get tough on these homeowners who are not complying with the rules and stop being nice guys.  He said that Cheryl puts her neck out there and the Board supports her all the way.  Ms. Lancaster said that the Board has always taken the position against the renters and the homeowners think that the rules don’t apply to them.   Ms. Lancaster also stated that everyone was against the white lines and it took some time to get people to comply and that’s what is happening here, homeowners are not use to the Board enforcing the rules.

ADJOURNMENT
The meeting adjourned at 7:35pm
Submitted by Recording Secretary, Cheryl Shockley
APPROVED BY THE BOARD OF DIRECTORS, OCTOBER 5, 2009