LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
MARCH 7, 2011

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

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

OTHERS PRESENT
Guests:  Carla Faulkner (David Plunkett Realty), Charlie Ward Lot 227, Ken Ferguson Lot 172
General Manager:  Cheryl Shockley
Legal Counsel:  John C. Churchill
           
INTRODUCTIONS

CALL TO THE PUBLIC
Mr. Ferguson Lot 172 stated that he had come to the meeting to tell the Board what a fine job they were doing of upholding the CC&R’s since he bought into the Association, then he found out that the height issue and the boat rental business where going to be put on the ballot and he wanted to state that he was opposed to both.  He said he already had one house built next to him that has taken away the sun and he would hate if the house on the other side was able to go up to 25 feet.  He stated that the height issue had already been brought before the Board and the Association had voiced their opinion by 60 % that they were not in favor of exploring the raising of the height limit.

Mr. Ferguson said he did not know much about the boat rental issue, but if it was the same gentleman that has the parasail business, he stated there was nobody more disrespectable of our community and that one day his wife asked him to slow down as he was ripping up the canal and he flipped her off.  Mr. Ferguson stated that he thought that the Board was making allot of concessions for a non-homeowner who disobeys Associations rules already. 

Mr. Ferguson stated that he hopes the Board continues to protect the Association’s CC&R’s because it makes the community a nice place to enjoy.

MINUTES
Ryan Shubin moved to approve the Minutes of the Regular Meeting of February 10, 2011.  Discussion:  Mr.Sweeney stated that the minutes were incorrect concerning the motion made by Chris Chambers for the height limit to be increased, he said the motion made by Mr. Chambers was for the height to be increased from 18 feet to 25 feet and the motion did not included the design review committees approval as stated in the minutes.  Ms. Shockley said she would make note of the correct motion and change the minutes to reflect the correct wording of the motion made by Mr. Chambers.  The motion was seconded and carried unanimously.

FINANCIAL REPORTS
Joe Price made a motion to approve the February 2011 Bookkeeper’s Report, Prepaid Bills and Bills for Approval for February 2011.  Discussion:  Ms. Lancaster asked why Farmer’s rental deposit was used to offset monies owed on lot 118; she was under the assumption that deposits could not be used for paying past due Association dues.  Ms. Shockley said that it was previously discussed with Mr. Churchill and he said that it couldbe done.  The motion was seconded and carried unanimously.

Joe Price made a motion to approve the February 2011 Balance Sheet.  The motion was seconded and carried unanimously.

Laura Lancaster made a motion to approve the February 2011 Profit and Loss Statement.  The motion was seconded and carried unanimously.

BOOKKEEPER REPORT
3/2/11
A rental security deposit was received refunds (calculating interest is cumbersome) and semi-annual re-deposits?  Just because they don’t rent there, once again, from Anslyn (Lot 113).  Typically they don’t re-submit until spring, but they rented their property over race weekend, and we had to ask them for their deposit.  Can’t we force these people to quit torturing us with semi-annual house for a few months…..

Construction deposits were returned on Lots 226 (property sold) and Lot 130; a rental security deposit was returned to Lot 185 (property sold).  I paid Farmer’s (Lot 118) pre-foreclosure delinquent dues from their rental security deposit, presuming we have the right to do that.

The 2011 annual transfer of $7,562.20 to the Reserve account was made on 2/9/11.  I also transferred $5,092.29 to the Reserve account on 2/9/11 as a catch-up from last year to match Joe Price’s starting amount of $68,959.89 on his Reserve Account budget calculation spreadsheet.

I have prepared the annual meeting financials (12/31/10 condensed Balance Sheet and 2010 P&L / 2011 Budget (with annual transfer of funds listed at the bottom, then showing ‘available cash flow after transfer’ below that as the bottom line).  I sent this to Joe Price a couple of weeks ago but haven’t hear back from him, so hopefully this is the final version of what will get mailed to the homeowners very shortly.  SEE ATTACHED SPREADSHEET WITH THE TWO WORKSHEETS.

Tax preparation financials and documents were sent to Barbara O’Connor, CPA for income tax return preparation.

VDMA trash assessments went out this week at $182 each to 8 owners, and a 9th owner (Ritchie) voluntarily contributed $300.

I requested that Horizon Community Bank waive any service charges to our accounts.  The request was approved, and we are on service-charge-waived status.

Delinquent dues’ accounts and status are listed on the enclosed spreadsheet.    Lots 173 and 238 (Tweedy and Maxwell) have not responded to their “FINAL” letters, so they should be turned over to legal counsel for collection. 

As to why you saw Lot 237 twice on the Collection Report, which was not a mistake, I had to create a separate account to split the pre-foreclosure debt from the post-foreclosure debt, in this instance where the bank or Fannie Mae would not pay pre-foreclosure debt.  So I have to collect from two different individuals/entities on the same property.   I also had to do this on Lot 118 (Farmer).  Fannie Mae finally paid the post-foreclosure dues on Lot 237, leaving the Lot 237 pre-foreclosure (Holthe) debt still on the Collection Report.  I doubt we will be able to recover this amount when Fannie Mae sells the property to a third party, because any demand we make to a title company handling a proposed sale probably can’t include the debts of an owner previous to the current seller, i.e., I don’t think we can demand that a 3rd party pay the debts of the 1st party, after the 2nd party refused to pay the 1st party’s debt.  But I could use some legal guidance here.

I acknowledge the instruction not to write off any (seemingly uncollectible) dues.

Citations issued:  NONE.

GENERAL MANAGER’S REPORT
Christie May made a motion to approve the February 2011 General Managers Report.  The motion was seconded and carried unanimously.

Mr. Sweeney asked Ms. Shockley if she was able to program the new gate access panel through her computer system or was something else needed to be able to do it remotely.  Ms. Shockley replied that she found that she needed an external modem so she can program the gate remotely and the cost for a compatible modem for the new program would be around $60.00.  Mr. Sweeney said he had purchased a new gate access panel that can be programmed remotely and the cost for the new panel was $550 + tax and shipping.   Mr. Kossnar made a motion to approve Ms. Shockley to purchase a modem and to reimburse Mr. Sweeney for the cost of the new access panel.  The motion was seconded and carried unanimously.

Ms. Shockley reported that she had spoken with Mike at Precision Striping about the STOP stenciled on the streets that was peeling.  Mike said that he uses the same product to paint the white lines on the Association streets so he was not sure why some of the STOPs were peeling and somewhere not, but he would re-do the STOPs the next time he was in the area, free of charge.

COMMITTEE REPORTS

OLD BUSINESS
Ms. Shockley said she needed the final language or wording for the ballot on the height issue and asked if Mr. Chambers was providing this for her.  Mr. Sweeney said that all was needed was for Mr. Churchill to review the proposal which is just asking to change the height in the CC&R’s from 18 feet to 25 feet.  Mr. Kossnar asked what about the Design Review Committee approval and Mr. Sweeney replied that was not part of the proposal.  Mr. Chambers’s motion was only to change the height limit and nothing else.  Ms. Shockley stated that she would put the wording together on the ballot and have John review it before the ballot went out.

Mr. Ferguson of Lot 172 – 8891 Yaqui Loop asked if the height issue needed to be brought up again, and hadn’t it just been voted down.  Mr. Chambers said the last time it had gone out to vote to the Association was 2006.  Mr. Sweeney stated that a letter was sent out to the Association asking if the homeowners wanted the Board to explore the issue of raising the height limit and at that time 60 % that responded said they were not interested in the Board exploring raising the height limit.

Mr. Sweeney asked if the Conditional Use Permit for Lot 220 was ready for the ballot.  Ms. May asked Mr. Churchill if there was a typo in the first sentence were “Conditions” was used twice instead of “Restrictions”, Mr. Churchill responded yes and said he would change that.  Mr. Kossnar asked about provision #7 signs.  Mr. Shubin explained that Mr. Ferber was advised that he could not put up any type of sign without the permission of the Board and that included lighted signs.

Mr. Kossnar asked where the owner of this property was and why was the Association taking on the responsibility and cost of putting this issue on the ballot for a “Renter”.  Mr. Churchill stated that this proposal was voted on by the Board to be presented to the Association for a vote, so as far as he was concerned it was up to the Association to vote on the Use Permit for Mr. Ferber’s boat rental business.   Mr. Kossnar replied it just didn’t make sense and it was his opinion that the Board is doing all this for a “Renter” who doesn’t even pay Association dues.

NEW BUSINESS

Annual Meeting Review
Mr. Chambers asked if there were any guest speakers for the meeting.  Mr. Sweeney stated that he did not think it necessary to have guest speakers at the annual meeting.  So there will be no guest speakers at the meeting.

ADJOURNMENT
The meeting adjourned at 6:34pm
Submitted by Recording Secretary, Cheryl Shockley