| LAKE MOOVALYA
KEYS, INC.
Board of Directors
Regular Meeting
JANUARY 4, 2010
CALL TO ORDER
President Gary Svider called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:10pm.
PRESENT
President: Gary Svider
Vice President: Jack Sweeney
Secretary/Treasurer: Chuck Baker (Absent)
Board Members: William (Squeak) Kossnar, Joe Price, Blane Coon, Laura Lancaster (by phone), Chris Chambers and Rob Troxler
ABSENT
Board Members: Chuck Baker
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 December 1, 2009. The motion was seconded and carried unanimously.
CALL TO PUBLIC
FINANCIAL REPORTS
Jack Sweeney moved to approve the December 2009 Balance Sheet. The motion was seconded and carried unanimously.
Joe Price moved to approve the December 2009 Profit and Loss Statement. The motion was seconded and carried unanimously.
Squeak Kossnar made a motion to approve the Bookkeeper’s Report, December Prepaid Bills and Bills for Approval. Discussion: Mr. Svider asked about the extra charge for trash disposal of $12. Ms. Shockley explained that homeowners are leaving large objects such as bar-b-que’s, that Allied Waste will not pick up and she has to hire some one to pick up and dispose of these items. The motion was seconded and carried unanimously.
BOOKKEEPER REPORT
Submitted by Sue Thompson
Kellie Callahan, Esq. of Carpenter Hazlewood sent a letter to Bob Willoughby (Lot 10) on 12/16/09 giving him 30 days to clear the “nuisance…” A copy was faxed to Cheryl.
I have not received anything further since John Churchill’s letter to the Grybowski’s (Lot 201) attorney regarding their protest of the three reckless driving citations
The new (prospective) owner of vacant Lot 180 has submitted a construction deposit. His escrow was to close 12/28, but I’ve not received confirmation yet. Tim Herbst (Lot 18) was refunded his construction deposit.
14 late charges for delinquent dues were assessed to Lots 45, 70, 93, 118, 138, 162, 163, 164, 171, 200, 232, 236, 237, & 238.
Lot 118 (Farmer) is in foreclosure, with a Trustee’s Sale set for 2/25/10.
Regarding payments to SCF AZ for worker’s compensation, I’ve been asked to do a breakdown. $807.81 paid on 4/29 was the policy renewal fee. All the other payments totaling $805.06 during the year were for “Outside Services” compensation premiums based on our current rates (for Cheryl, the gardener and security guards in one class, and me in a lower-rate clerical class), after policy credits/adjustments were given to us.
No citations were issued this month.
GENERAL MANAGER’S REPORT
Mr. Sweeney made a motion to approve the December General Manager’s report. The motion was seconded and carried unanimously.
Mr. Kossnar asked if there was any thing to be done to let homeowners know that the Association is getting charged extra for large trash items such as mattresses, furniture and non-household items. Mr. Svider suggested it be addressed at the annual meeting.
Ms. Shockley reported that the gate access panel was not working and that was why the entrance gate has been open. Mr. Sweeney stated that he contacted the manufacturer but they were closed for the holidays. He said that he had tried that day again to call but had only been able to leave a message and was waiting for a call back. Mr. Sweeney said that depending on how much the parts were to fix the unit, it might be in the best interest of the Association to buy a new unit. He said would research the best option to get it fixed.
COMMITTEE REPORTS
Mr. Sweeney said he received plans for a dock only on lot 180. He stated the dock is uniform with the docks on both sides of the property. Mr. Sweeney made a motion to approve the plan. The motion was seconded and carried unanimously.
OLD BUSINESS
Mr. Svider asked if any thing had been done to fix the block damage at the trash area. Ms. Shockley stated that the Board never approved the work to be done at the last meeting. She said this is an on going problem and some thing more needs to be done to fix the problem instead of just repairing it every time the blocks break off the top of the pillars. Mr. Kossnar and Mr. Sweeney stated that they would speak to Dennis Shaffer to see if there was a way that he could put some type of strap around the area that is breaking off or he may have some other suggestions to fix the problem.
Ms. Shockley reported that she had received a call from Marjorie Blaine with the Az. Corp. of Engineers concerning the Brooke Water drainage issue. Ms. Blaine explained that this kind of drainage was not their concern and they could not help the Association.
Ms. Shockley reported that Parker Tree Service had cut the oleanders at the entrance area. Mr. Coon asked how high the oleanders where now. Mr. Kossnar said he thought they were about 10 feet high and looked good. Ms. Shockley said that she had advised Bob Kerbs to trim them down to approximately 8 feet. Mr. Troxler said that if the Association paid for eight feet height that’s what they should get. Mr. Coon asked Ms. Shockley to ask Mr. Kerbs what height the oleanders are now and find out why they were not cut down to the 8 feet height.
NEW BUSINESS
Ms. Shockley and Mr. Kossnar reported that they had received an additional $1000.00 proposal from Parker Tree Service to trim the large tree and oleander behind the mailbox area, this proposal also included trimming all the oleanders before and after the trash enclosure area down to the same height as the common lot oleanders. Mr. Sweeney made a motion to accept the $1000.00 proposal from Parker Tree Service to trim all oleanders at trash area and large tree behind the trash area. The motion was seconded and carried unanimously.
The Board discussed setting the Annual Meeting date as Saturday April 3, 2010, Easter weekend. Mr. Kossnar made a motion to set the Annual Meeting date Saturday April 3, 2010. The motion was seconded and carried unanimously.
OPEN COMMENTS
Mr. Price questioned the Association paying workman’s compensation on non-employees, such as the General Manager, security guards, the gardener and Ms. Thomson. He expressed his concern that the Association would be liable to pay all payroll taxes if the Association is audited by the state or federal government, because of reporting on the workman comp. policy that they have employees.
Mr. Price said that the Association should file the report and pay the standard policy rate for the year but should not show that Association has employees. Mr. Sweeney stated that he thought it was inexpensive insurance so as the Association would not be liable if someone was injured while working on the Association property.
Mr. Churchill said the Association can 1099 an individual for IRS purposes, so they are deemed not to be employees. He stated if the IRS challenges the 1099, they will look for control, the frequency of pay, what kind of work the person does and what kind of equipment he or she uses, but for worker’s compensation he stated it is a different issue, you can have no control and a person can still be considered an employee. Mr. Churchill stated that if the Association was going to insure someone if they were or were not an employee just makes good sense because liability wise the Association does not want to get stuck with a gigantic bill down the line.
Mr. Churchill told Mr. Price he had a valid concern if the Association was calling them employees, but it is not an irrefutable presumption, the Association merely characterizes them as employees for purposes of insuring that they have workman’s compensation in case they get injured. Mr. Churchill said that if the Association can get away from calling them employees they should do it.
Ms. Shockley was advised by Mr. Churchill and the Board to require all contractors that are hired by the Association to work on the Association property to provide a certificate of general liability insurance and workman’s compensation policy.
Mr. Haney questioned the variance the County is asking for and the cost of it. He said that the County is asking for $605.00 for the 10 foot set back. Mr. Sweeney and Mr. Kossnar stated that they did not have to get the variance when they built their homes, but they do not know now what the County is requiring now. Mr. Churchill explained that the CC&R’s that govern the Association have a 10-foot requirement but that does not bind the County necessarily. The County can have its own rules and if that’s a 20-foot set back then you would need a variance from the County. Mr. Churchill said that you are OK with the Association and its 10-foot set back but not with the County and a variance would be required. Mr. Haney asked which was considered the front and the back of the property. Is the street the front and the canal the back? Mr. Churchill said that the CC&R’s are very clear about the 10 foot set back starts at the road, they consider that the front of the house. Mr. Haney said he was concerned that if he went to the trouble drawing up the plans and the Board was Ok with them, then he presented them to the County and they had a problem with them, his time would be wasted. Mr. Sweeney advised Mr. Haney to go the inspector himself and get clarification on what the county is seeking.
Mr. Haney then asked the Board if they would be willing to give him a 5 foot set back, so his house would be uniform with the houses on either side of his property. Mr. Churchill said that there was no way to get the 5 foot set back even if the Board agreed to give it to him because they do not have the power to change the CC&R’s.
Ms. Lancaster expressed her concern with the budget. She stated that Ms. Shockley had sent her a copy of the 2007 budget and she had looked at all the year to dates and the running costs have changed a lot especially if the Board is going off the budget. She stated that the Board needs to quickly address the issue of raising the quarterly fee, with the costs going up the cash is going down. Mr. Svider stated that the Association was at a flat level. Mr. Sweeney said if you looked at the profit and loss year to date is was in excess of $12,105.09 and that was with doing the bridges. Mr. Sweeney said that he was not saying that the reserves did not need to be revisited but he did not believe that the quarterly fees needed to be raised at this time.
The Board was in agreement that the Association needed a new 10 year budget which would include such items as the streets, bridges, common areas and guard shack. Mr. Chambers said to make sure that if T&C did the slurry of the streets they do it correctly this time and blow out each crack, instead of using a fan to blow the debris off the street.
Regular meeting adjourned to executive session at 7:15pm.
Meeting reconvened to regular session at 7:25pm
ADJOURNMENT
The meeting adjourned at 7:25pm
Submitted by Recording Secretary, Cheryl Shockley
APPROVED BY THE BOARD OF DIRECTORS, FEBRUARY 1, 2010 |
