| LAKE MOOVALYA
KEYS, INC.
Board of Directors
Regular Meeting
SEPTEMBER 13, 2010
CALL TO ORDER
President Jack Sweeney called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:06pm.
PRESENT
President: Jack Sweeney
Vice President: Chuck Baker
Secretary/Treasurer: Laura Lancaster
Board Members: Blane Coon, Ryan Shubin, Joe Price, William “Squeak” Kossnar, Rob Troxler, Gary Svider, Shelby Couch and Chris Chambers
ABSENT
Board Members: None
OTHERS PRESENT
Guests: Carla Faulkner (David Plunkett Realty) & Rich Ferber (Owner of Boat Rental Business) Leased lot 220
General Manager: Cheryl Shockley
Legal Counsel: John C. Churchill
INTRODUCTIONS
MINUTES
Chris Chambers moved to approve the Minutes of the Regular Meeting of July 5, 2010. The motion was seconded and carried unanimously.
CALL TO PUBLIC
FINANCIAL REPORTS
Shelby Couch made a motion to approve the Prepaid Bills and Bills for Approval for July & August 2010. The motion was seconded and carried unanimously.
Chuck Baker made a motion to approve the July & August 2010 Balance Sheet. The motion was seconded and carried unanimously.
Joe Price made a motion to approve the July & August 2010 Profit and Loss Statement. Mr. Price asked about the storage cost that was list on the report. Ms. Shockley stated that she had a key for a small storage up river next to Roadrunner Bar. She said that she had been there a couple of time and that there was old plans and old file in filing cabinets that came from Ms. Thompson house. Mr. Svider stated that the cost was split between Keys I and Keys II, both Associations had documents stored in the room. Ms. Shockley said that she would ask Ms. Thompson clarify the cost in her next Bookkeeper’s Report. The motion was seconded and carried unanimously.
BOOKKEEPER REPORT
Rental security deposits were received from Gaipa (120), Christensen/Nicholls (169) and Peters (019). Construction deposits were received from Guenther (130) and Lewis (158). A construction deposit was refunded via check to General Account to pay HOA dues on Hanen (221). A rental security deposit was returned to Sapp (092), as the property was sold.
Cheryl did not authorize payment to Danny Dickinson for services he says he rendered the first week of June. He says he was released on June 6 and wants that week’s pay. Cheryl says he was released on June 1, when we hired and started paying Otis. I did not respond to Danny’s re-submitted invoice for the first week of June. I will do nothing unless directed otherwise.
The Order to Show Cause hearing on the Willoughby lawsuit originally scheduled for 8/16/10 was vacated, because service of process of the hearing notice failed to occur. I have not received further notice as to a rescheduled hearing date. Ms. Shockley reported that she had sent an email to the Attorneys handling the case for an update and had not received a response as of meeting time. She said she would contact Kellie and find out what was going on concerning a lien against the Attorney fees and when the next hearing would be scheduled.
Delinquent dues’ accounts and status are listed on the enclosed spreadsheet. Mr. Sweeney asked Mr. Churchill about the Grybowski lien. Mr. Churchill stated that a lien had been filed, but the Association could not foreclose on the lien. He advised the Board to seek a judgment in the Justice Court against the amount owing. Mr. Baker asked if the lien accrued interest. Mr. Churchill stated not that a lien did not accrue interest, but a judgment would earn about ten percent interest if the Association was awarded a judgment against Grybowski. Mr. Coon asked how long the lien was good for and Mr. Churchill replied that he thought it was 3 years. Mr. Baker asked how much it would cost to seek a judgment. Mr. Churchill responded that it would be inexpensive if filed in the Justice Court. Mr. Price made a motion for Mr. Churchill to proceed with seeking a judgment against Lot 210 Grybowski. The motion was seconded and carried with 10 in favor, 1 opposed.
Lot 158 (David Lewis) has requested a 10’ front setback variance from the County on his remodel.
GENERAL MANAGER’S REPORT
Chris Chambers made a motion to approve the 2010 July/August 2010 General Manager’s Report. The motion was seconded and carried unanimously.
Mr. Shubin stated that he thought Otis was working out. Ms. Shockley responded that Otis was doing a good job. Mr. Coon asked what happened to all the equipment that was bought for Danny Dickinson. Ms. Shockley responded that all equipment was in the shed and the Otis was using it in his daily work.
Mr. Sweeney stated that the Association needed to find out what was going on with the diesel generator that is on the Association property which is a backup supply source for Buckskin Sanitation District. According to the guys who are trying to service it, they reported that it’s a part and not functioning at this time. Mr. Couch asked if this generator was owned by BSD and Mr. Sweeney stated it was. The generator is supposed to be used in case of an emergency outage to run the pump
Mr. Troxler reported that Buckskin Sanitation District was aware of the problem and was working on getting the generator function properly and it would probably be within the week. Mr. Sweeney asked that Buckskin contact the Association when the generator was up an operational again.
Mr. Baker asked that the part about Labor Day weekend being mainly quiet and without incidents be removed from the report. He said he would go along with no major incidents occurring but that he thinks that there were problem in the Keys. Mr. Baker stated the reason for not wanting that section in the General Manager’s report was because he was really upset with the tenants again. Mr. Baker said that if people read this that they will think that there are no problems within the Keys when in fact it is not as quiet as Ms. Shockley stated in her report. Ms. Shockley stated the September report lists the incidents that occurred over the Labor Day weekend, but as far as she was concerned it was a quite weekend and nothing major had occurred as in previous holiday weekends. She said the whole summer has not seen many problems.
COMMITTEE REPORTS
Mr. Sweeney reported that he had received plans from lot #158 David Lewis 8958 Yaqui Loop. Mr. Sweeney stated that Mr. Lewis plans included taking out the boat house and extending the garage. Mr. Sweeney stated that they meet all the requirements of the CC&R’s. Mr. Sweeney moved to approve the plans submitted for removing the walls and boat house. The motion was seconded and carried unanimously. Mr. Sweeney made a motion approve the plans to extend and add a garage. The motion was seconded and carried unanimously.
Mr. Sweeney reported that he had received plans from lot #130 Keith Guenther 8672 Yaqui Loop. Mr. Sweeney stated that Mr. Kossnar was in charge of the remodel of the property which included pushing the house out at the patio area and extending the patio to the dock. Mr. Sweeney stated that they are not changing the front of the house or the roof line. He said that the plans meet the requirements of the CC&R’s. Mr. Couch asked if they were changing the dock and Mr. Sweeney replied that they were not. Mr. Sweeney moved to approve the plans submitted as is. The motion seconded and carried unanimously.
Mr. Kossnar presented a protest from Marilyn Cooper of lot 69 Apache Loop, where she alleged that she had no knowledge of the truck that was parked in front of her property which was indeed staying at her house. Mr. Kossnar stated that he had received documentation that shows Mrs. Cooper listed as a rental house on several websites, so how can she know who’s at her property if she is renting. Ms. Shockley stated that she had sent a letter to Mrs. Cooper asking her to submit her $1000 rental deposit and to start providing her with a tenant information sheet when she rents. She advised Mrs. Cooper in the letter that each time she rents her property and does not supply the General Manager with the Tenant Information Sheet she will be fined $25.00. Mr. Kossnar said that the photo clearly shows the truck in front of her property and parked over the white line. Mr. Shubin moved to deny the protest of Mrs. Cooper. The motion was seconded and carried unanimously.
OLD BUSINESS
Mr. Sweeney stated that at the last meeting Mr. Ferber’s girlfriend was advised to have the banner removed from the wall and at meetings time the banner was still on the wall. Mr. Sweeney said that the Board had also asked Mr. Ferber to bring a sign design to this meeting for Board approval. Mr. Ferber asked why he was being told that he could not hang a sign advertising his business, when he rented the building he was advised by David Plunkett that it was commercial property and he could run his boat rental business out of the property.
Mr. Ferber stated that he has heard that there are complaints about the banner on the canal wall, mainly from the homeowner across the canal. Mr. Ferber said he wished the homeowner would have contacted him if he was not happy with the sign. Mr. Ferber said that he has painted the wall and the wrought iron fencing, which in fact makes the property look better. He said that there were three signs hanging on the wall that said “No Trespassing and Keep Out”, he said that he removed these signs and the wall looks better now.
Mr. Chambers said he had not been at the last meeting and asked if the Board was telling Mr. Ferber he could not hang a banner on the wall but he could hang a sign on the back of the building itself. Mr. Shubin responded that the Board had advised Mr. Ferber’s girlfriend to have Mr. Ferber take down the banner on the canal wall in keeping with the presidence that was set back in May 2009 when the Board refused to let Plunkett paint a sign on his canal wall, but said that Mr. Ferber could hang a sign on the Building if he brought a sign design to this meeting and it was approved by the Board. Ms. Shockley stated that this issue had to do with the back of the building and the banner that was hung on the canal wall; it had nothing to do with the signage on the front of the building.
Mr. Ferber stated that it was not fair that other businesses could have a sign on the canal side advertising their business but he can’t. Mr. Svider asked where in the Key’s CC&R’s does it govern commercial business. Mr. Sweeney said it doesn’t.
Mr. Kossnar stated that in section 12.1 of the CC&R’s that “commercial lots can be used for the purpose set forth in the La Paz County regulations as “C-1” (Local Commercial District) and none other”. Mr. Kossnar said the in the County C-1 zoning does not allow for rental businesses of any type. Mr. Couch said that the Associations commercial properties are rated as C-2. Mr. Kossnar also stated that in section 12.2.11 “With the exception of one For Rent or For Sale sign (which shall not exceed 18 by 24 inches in size) no advertising signs, billboards shall be placed, erected or permitted on any lot”. Mr. Kossnar said that this section does not state commercial or residential, it just states “any lot”.
Mr. Price said that no matter what, it states in section 12.4 that “no sign can be displayed without the approval of the Association or Design Review Committee.
Mr. Churchill said that the restriction of 18 by 24 is for residential lots. The Board still has the power to approve or disapprove of any signs but that they can’t be unreasonable about it. Mr. Churchill said as long as Mr. Ferber is putting it to C-1 use he is in compliance with the CC&R’s.
Mr. Coon said that in the times we are living, we are all hurting for business and this man has a right to advertise. He said that the homeowner’s just don’t want it on the canal wall, why don’t you put it up on the building. Mr. Ferber said that he would be happy to do that, he just thought it was a little less blatant the way that he did it. Mr. Coon and Mr. Shubin both said that the neighbor across the canal was not happy with the banner. Mr. Churchill said the homeowner knew when he bought, he was buying across from commercial property and he should have known there would be advertisement.
Mr. Churchill said it looks better now than it looked before and Ms. Shockley said she agreed that he had made the wall and the railing look better.
Mr. Shubin said wasn’t this whole matter supposed to have been that Mr. Ferber was supposed to bring a sign design to the meeting for approval.
Mr. Price asked if the County approved the signs and Mr. Ferber said they had. Mr. Price then asked if the County had made him pull a permit and he said “no” they had not.
Mr. Sweeney asked Mr. Ferber to pass around the picture of his banner (sign) which is hanging on the canal wall. Mr. Sweeney asked the Board to entertain a motion for this sign to be approved for his boat rental business advertisement. Mr. Couch made a motion to approve the banner sign hanging on the canal wall. The motion was seconded. Discussion: Mr. Shubin asked if this sign passed did that mean that anyone with a business could hang a banner outside. Mr. Baker explained that all advertising signs had to be approved by the Board. The motion carried with (8) in favor (3) opposed.
NEW BUSINESS
Mr. Baker stated that he wanted to discuss the rental problems the Keys was having, he stated that the past weekend he was kept awake until 4am because of the rental house across the canal from his house and that he thought that the Tonkavich house on Apache Loop was renting their house for the weekend and both houses were loud. Mr. Baker said that the biggest problems were noise and overcrowding. He witnessed the house across the canal on at least 3 occasions with at least 20 people staying there. He said it was a 1700 square foot house and wondered where all the people slept. Mr. Baker said if the Board did not feel there was a problem then he would take the matter in his own hands. Mr. Baker said that his neighbor Pete Becker has had it with the renters and he was selling his house. Mr. Becker had his boats sabotaged over the 4th of July holiday. Mr. Baker said there are fights in the streets. Mr. Chambers said to call the cops when these things happen.
Mr. Baker said that when single families rent these houses it seems like the problems are less, but when the houses are rented out to (6) couples in there early 20’s or 30’s they seem to have problems such as running across peoples decks, parking at other homeowners houses and partying all night.
Mr. Baker said the Association needs enforcement. He said that Ms. Shockley is spending half her time keeping track of the 40 something rentals that are in the Keys now. He said it seems like the Association needs to hire someone to do this full time just to enforce the tenant information sheet. Ms. Lancaster said that Ms. Shockley has a procedure for handling the tenant information sheets and its working. She said that she thought that this year went extremely well considering there were over 40 rental houses. Ms. Lancaster said allot of the problems come from homeowners and their guests. Ms. Shockley agreed.
Mr. Baker said that it’s fine that she and Carla do their rental information on a timely basis but there are allot more that don’t. Ms. Shockley said that she doesn’t see the problem, there are a few homeowners that are trying to rent under the radar but eventually they are found out like Marilyn Cooper of lot 69. Ms. Shockley wished that the Board would help her out with getting homeowners like her and the Habermann and a few other that the she knows rent their houses but nothing is being done to make them submit the $1000 deposit or send in the tenant information sheet. Ms. Shockley said the Habermann’s try using the excuse that they are outside the gate the rules don’t apply to them and know they have an arrangement with some guy who uses their house, but Ms. Shockley said that the boats are never the same if it’s the same guy. She also has the most problems with RGR rentals and finding someone on the weekends to help her out if there is a problem with a house they have rented out. She has no phone #’s for Kim Gory other that the office number, so what happens when the office is closed and she can’t get ahold of her. Ms. Shockley said all other property managers supply her with a 24 hour cell number.
Mr. Baker asked how many more people have to move out of the Association before the Board realizes it has a problem. He said these problems are making the values of the homes go down. Ms. Lancaster said there is always going to be dissention between both sides. There will never be a meeting of the minds on this or other issues.
Mr. Coon said the bottom line is that if Mr. Baker is having problems he needs to call the sheriff’s department and report it. He said the Association can’t put Ms. Shockley in the middle of it, he seen it happen before where Homeowner threatened her because she went out on a noise compliant.
Mr. Sweeney said that with the failing economy the Association’s has seen more rentals and Ms. Lancaster said that there are allot more people who may have to start renting their homes to keep them. Mr. Baker said that it seems like no one wants to do anything about these problems. Mr. Coon and Ms. Lancaster said that wasn’t true, but they don’t see how imposing more rules are going to get anywhere. Ms. Lancaster said it would be hard to pass any more rules or fines on rental houses because there are now more homeowners who are renting. Ms. Faulkner asked Mr. Baker don’t you have a rental house in the Keys that RGR is renting out and he replied yes, but if needed he would stop renting it, if rentals were banned from the Keys.
Mr. Chambers said that the homeowner’s in the Keys pay allot of taxes why don’t we talk with Don Lowery the Sheriff and see if his department could do extra patrols through the Keys. Ms. Shockley said that would not solve any problems and that it would just make her job harder and that homeowner’s would bitch her out for allowing the cops inside. She told the Board that they don’t realize how many homeowners’ were upset when off duty sheriff’s officers were used as security two years ago. Mr. Sweeney stated that he did not know how much more progress the Keys can make, Mr. Baker said he had several suggestions.
Mr. Baker suggested that security be hired during the summer months to patrol the streets from the hours of midnight until two or three am Thursday, Friday and Saturday nights.
Mr. Churchill advised the Board that the CC&R’s are very specific in what is permissible in a residential dwelling; it can only be occupied by a single family. Mr. Sweeney said that we have heard this before and Mr. Coon was in agreement, that argument has been worn out. Mr. Churchill said he had good news and bad news; the CC&R’s also contemplate that the Board can waive that prevision with appropriate conditions. Mr. Churchill suggested that a Board Committee together to determine what the appropriate conditions might be for these rentals. He does not know what these conditions may be but maybe the committee could restrict how many people could occupy these homes. He meant by occupy ‘stay the night”, he said there is no way you are going to prevent anyone from having guests.
Mr. Sweeney said at the 2009 Annual meeting that the Board could not even get the 12 person rule passed. Ms. Faulkner said the property manager’s try to adhere to renting to no more than 10 people.
Mr. Kossnar said that the majority of the noise comes from the canals and that a person patrolling the streets is never going to hear the noise. He said it was going to be hard to police the noise problem in the canals.
Mr. Baker said another problem is that the homeowner that is renting their house out has no idea that these problems are occurring and that the homeowner needs to be made aware of it not just the property managers. Ms. Faulkner stated that she does tell the homeowner there is a problem when it occurs.
Mr. Baker made a motion to have someone patrol through the Keys on Thursday, Friday and Saturday between the hours of 12am to 2am from May 1st through October 31st. The motion was seconded. Discussion: Mr. Troxler asked how the Association was going to pay for this. Mr. Baker withdrew his motion.
Mr. Chambers asked if a committee could be formed to re-visit the raising the height limit. He said that the only way you are going to get any value out of your property is going to be from house value not by lot value. Mr. Chambers made a motion to form a committee to review the height limit. The motion was seconded and passed with (6) in favor and (5) opposed.
Legal Matters
Ms. Shockley reported that she had asked for an update on the Willoughby issue from the Attorneys but by meetings time she had not heard anything. As stated in the Bookkeeper’s report, the Attorneys are having a hard time trying to have Mr. Willoughby served. She will follow up before next meeting date.
ADJOURNMENT
The meeting adjourned at 7:16pm
Submitted by Recording Secretary, Cheryl Shockley
APPROVED BY THE BOARD OF DIRECTORS, SEPTEMBER 13, 2010 |
