LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
OCTOBER 4, 2010

CALL TO ORDER
President Jack Sweeney called the regular meeting of the Lake Moovalya Keys Board of Directors to order at 6:01pm.

PRESENT
President:  Jack Sweeney
Vice President:  Chuck Baker
Secretary/Treasurer:  Laura Lancaster (By Phone)
Board Members:  Blane Coon, Joe Price, William “Squeak” Kossnar, Rob Troxler, Gary Svider, Shelby Couch and Chris Chambers
           
ABSENT
Board Members: Ryan Shubin

OTHERS PRESENT
Guests:  Carla Faulkner (David Plunkett Realty), Gary & Becky Anslyn Lot 113 and Jack Brittian Lot 149
General Manager:  Cheryl Shockley
Legal Counsel:  John C. Churchill
           
INTRODUCTIONS

MINUTES
Joe Price moved to approve the Minutes of the Regular Meeting of September 13, 2010.  Mr. Sweeney stated that a correction be made to page 5, it should read (12) people rule, not (10).  Ms. Shockley said she would make the change.  The motion was seconded and carried unanimously.
 
FINANCIAL REPORTS
Squeak Kossnar made a motion to approve the September Bookkeeper’s Report, Prepaid Bills and Bills for Approval for September 2010.  Discussion:  Laura Lancaster asked about the closing of the Capital Improvement account.  Mr. Sweeney stated that would be discussed later in the meeting. The motion was seconded and carried unanimously.

Joe Price made a motion to approve the September 2010 Balance Sheet.  Discussion:  Mr. Baker explained that Ms. Thomson has been depositing monies in the Reserve Account and using it as a savings account and transferring to Capital Improvements as needed.  Mr. Baker suggested the money that should not be in the Reserve account be taken out or re-name that account and the Capital Improvement account should be made the actual Reserve account.  Mr. Baker explained that what would go into the Reserve account would be the actual amount that the Board approved for the yearly budget.  The motion was seconded and carried unanimously.

Chuck Baker made a motion to approve the September 2010 Profit and Loss Statement.  Mr. Couch asked if the Association was considered a non-profit organization, and it was holding so much of the homeowner’s money in reserves, why doesn’t the Board consider lowering the dues.  Mr. Baker told Mr. Couch that question had already been answered several meetings ago.  Mr. Sweeney said the monies being held are for future repairs and it’s required by law to hold money adequate to maintain the Association property. The motion was seconded and carried unanimously.

BOOKKEEPER REPORT - 9/27/10

Current bank-owned properties include Lots 33, 112, 118, 237 & 242.

We will probably end of eating the Lot 118 (Farmer) delinquent dues, in the amount of $750, as the real estate agent handling this foreclosed property says the bank will not pay past-due amounts.  We could go after the Farmers, but no one has been able to locate them, and mail has been returned undeliverable with no forwarding address available. The bank wanted a revised statement showing all delinquent dues being written off, and I told them that was not possible, so I’m hoping they will pay them, as this is a discretionary decision on their part.  Ms. Shockley stated that she had forwarded a current address for Farmer’s.  Mr. Svider asked if they could use the rental deposit to pay the Association dues and Ms. Lancaster said “No” and that the Board had discussed this issue before with the Caves property and Mr. Churchill told the Board that they could not use the rental deposit money for paying the past due dues.  Mr. Churchill said this matter should be discussed in Executive Session.

Carpenter, Hazlewood is having difficulty obtaining service of process on Bob Willoughby.  They say his California residence is vacant, but the address we show still appears active according to Internet research.  I gave Cheryl what I believe is Bob’s girlfriend’s residence address, since he may be living with her.

A rental security deposit was returned to the sellers of Lot 132, and a construction deposit was returned to Lot 21.

Lot 158 (David Lewis) received his 10’ front setback variance.

Joe Price and I have discussed the long-term capital improvements budget for major R&M that will be needed for bridges, roads and gates.  We need some Board and/or legal direction on where the annual budgeted amount of $7,562.20 for 2010 – 2029 should be deposited.  In the past we have placed the annual budgeted amount into the Capital Improvements (money market) account.  Joe believes that the funds may need to be deposited in the Reserve (money market) account to comply with HOA laws.  Since the Reserve account includes general savings monies, it would be difficult, over time, to figure out at any one point in time how much in the Reserve Account is general savings and how much is available for the capital improvements.  Disclosure laws mandate that I send financials to prospective buyers, and financials are also sent to homeowners annually, and there would not be a clear picture of the status of available funds for improvements on the Balance Sheet if those budgeted funds were co-mingled with general savings funds in the Reserve account.  If we do put these budgeted funds into the Reserve account, then I would suggest that we close the Capital Improvements account.  If the Board/legal counsel wants these funds in the Capital Improvements account, then I would transfer $7,562.20 from the Reserve account for 2010.

Delinquent dues’ accounts and status are listed on the enclosed spreadsheet.  Ms. Shockley stated that Stow’s property was being foreclosed and since they nor RGR had not submitted the $1000 rental deposit as required by the Association 2 citations are not going to get paid.  Ms. Shockley said that RGR should be responsible for paying the citations because they have been renting the property for the past two years without getting the deposit.  And in the rules it clearly states that the property owner or agent must submit the $1000 deposit.  Ms. Shockley asked what good is it doing giving out citations to these properties when the agent renting them is not collecting and paying the Association for citations issued.

Citations issued:  Lots 97 & 142 for not supplying a Tenant Info Sheet; Lot 124 for white line violation.

CALL TO THE PUBLIC
Mr. Brittain said his daughter had informed him that on the Keys website a notice had been posted about citations being issued for not stopping at the stops signs and he had no knowledge this would be happening as he does not use a computer and he wanted to know what the Board was doing about the reckless driving of golf carts by teenage kids.  Ms. Shockley explained that too many homeowners are not stopping at the stop signs especially on the corner of Papago and Moovalya Drive and its becoming a major issue and she posted the notice on the website to get the homeowner’s attention about the problem.  Ms. Shockley said she was also going to have the stop sign on Papago relocated so homeowners can see it clearly and she is going to have the white line painter stencil “STOP” on all streets with the white limit line.  In the future when she changes the special notice page she said she will drop a copy of it to Mr. Brittain since he does not have a computer.

Ms. Shockley asked Mr. Brittain to call her when he observes somebody driving recklessly.  She can’t catch everyone but she said that Mr. Brittain was to leave her a message with a description of the vehicle and occupants then she might be able to locate them and slow them down.  Mr. Sweeney said Ms. Shockley can’t be on the property all the time so homeowners experiencing problems need to call her and leave her a message with the problems they are having.

GENERAL MANAGER’S REPORT
Squeak Kossnar made a motion to approve the September 2010 General Manager’s Report.  The motion was seconded and carried unanimously. 

Ms. Shockley stated that over the winter months she would be addressing the signs on both boat ramps.  The signs warning people the ramps are slippery are faded and hard to read and she said that a no wake sign needs to be posted on the boat ramp at the end of Moovalya Drive.  She said she would be cleaning up the no wake buoys, they are covered with stickers and you can’t see the no wake signs on them.

OLD BUSINESS
Mr. Kossnar said the Board approved last meeting that Mr. Ferber could put a sign in the front and the back wall of his boat rental business, but that he was still putting out signs on the weekends that he either rolls out or puts up in front of his business and takes down at night, he said that the county does not allow this type of advertisement.  Mr. Sweeney told Mr. Kossnar that Mr. Ferber’s signs were addressed at the last meeting and that no further discussion was needed about his signs.  Mr. Kossnar said Ms. Shockley had misunderstood about what he wanted to discuss for the agenda when she had listed signs. 

Mr. Kossnar said he wanted to discuss section 12.1 of the CC&R’s, commercial use of the property.  It states in the by-laws that commercial property in the Association is zoned as a C1 and C1 does not allow boat rental businesses.  Mr. Couch said that his building is zoned as a C2 and he does not care what the Association says it is he knows that it is fact C2.  Mr. Chambers asked where all this was going and Mr. Kossnar said he wanted the Associations Attorney Mr. Churchill to define section 12.1 to the Board.

Mr. Churchill stated that it does not matter what the county zoning is.  He said the reason is simple, if the restriction on the property is more restrictive than the county than the restrictions control.  He stated that is the law.  Mr. Churchill stated several examples of this within the Association pertaining to the county.  He stated the height limit as being one, in the Keys you can only build to 18 foot height.  He also stated the Associations set backs are different than the counties and that the Associations restriction control.  Mr. Churchill stated that the lots 216 through 235 are limited very specifically by the Associations CC&R’s to C1 uses, regardless of what the county thinks they are.  He explained that C1 uses do not include rental of cars and boats.  Retail sales yes.  Mr. Sweeney said they don’t actually do anything but the physical paper at the facility.  Mr. Churchill said then you would have to look at the zoning ordinance to see what the intention is.  Mr. Churchill provided a copy of the zoning ordinance for C1 which states: C1 is applied to properties which are intended to be developed to accommodate and preserve convenient shopping areas containing retail and service establishments serving the daily needs and conveniences of neighborhood residences.  The uses of this zoning district must be wholly conducted within enclosed buildings.  No outside storage, no collection centers, no warehouses, no wholesaling, no noisy, smelly, obnoxious, or other offenses uses are allowed.  Automotive, marine, trucks, RV’s, agricultural and machinery, sales and rentals including servicing not permitted.  Parts and accessories, sales which may include installation not permitted.  Mr. Churchill stated basically it has to be contained in the building. 

Mr. Churchill stated that Mr. Ferber’s use seems to be contrary to the C1 restriction.  The Board discussed the situation and it was determined that a letter must be sent to the property owner to Cease and Desist the rental business due to non-compliance with the Association’s CC&R’s.  Mr. Baker made a motion for Ms. Shockley to send out the letter on behalf of the Association.  The motion was seconded and passed with a 6 to 4 vote.

Mr. Baker stated that until Mr. Chambers brought his dues current he motion at last month’s meeting be void on the Height Limit issue.  Mr. Chambers said that was fine by him but stated that he had just given Ms. Shockley his dues payment.

NEW BUSINESS
None

ADJOURNMENT
The meeting adjourned at 6:51pm
Submitted by Recording Secretary, Cheryl Shockley
APPROVED BY THE BOARD OF DIRECTORS, NOVEMBER 1, 2010