A Regular Board Meeting was held on Sunday, July 11, 2010

A Regular Board Meeting was held on Sunday, July 11, 2010



A Regular Board Meeting was held on Sunday, July 11, 2010 at the Cholla Community Center. The meeting was called to order by President Michael Dugan with the following members present: Helen Dahlstrom, Bella Howard, Blaine Fletcher, Laurie Weber, Jerry Ketelhut, Jr., Pat Sledge and Shirley McDonald.

Absent: Lew Felton, Ken Goodin, Gene Court, Steve Lee, Pete Pisciotta, Steve Willis, Don Schmidli, Delegate of Vigilance and Valente Cornejo, Mexican Representative.


The Board had previously received minutes of the June 13, 2010 minutes. Mr. Dugan asked if there were corrections or additions. Ms. Weber said she had some corrections.
(1) She said she was to be given a complete membership list but Mr Sledge told Monica to give her what she needed but no complete list was mentioned nor was it approved. (2) She said in Audience Participation someone asked who had keys to the Clubhouse and was told the Executive Committee and officers of the two clubs. (3) There was a discussion on HOA rebates but there was no action on that. Ms. Weber also had an issue with a word used on page 4, 1st paragraph. Ms. Weber did not like the word “problem” being used in lieu of issues. No change made. Ms. Dahlstrom had noted a correction by email and was told it had been changed at that time. Mr. Dugan then asked for a motion to approve. Motion made, seconded and minutes approved.


Treasurer Helen Dahlstrom passed out the report showing income and expenditures through June 30, 2010. Ms. Dahlstrom said it was a year end statement and the HOA is $30,000 to the good. A few items were over by a small amount and others were under expected spending. There will be some credits regarding the dues problems and Mr. Dugan said there will be some tightening of monies due to that.

Mr. Dugan asked for a motion to approve the report. Motion made, seconded and Treasurer’s Report approved.


Ms. Dahlstrom said there are 304 members paid in full, 560 not current, no Mexican members have paid, for a total membership of 864. There are 83 members whose status
is unclear. Ms. Dahlstrom reminded everyone that we are starting a new year so the report will be very different from the one in June.

Mr. Ketelhut asked which numbers are the ones that aren’t paying and was told that number is in the category of not current. There was a conversation that there won’t be much change to the not current category until the next meeting when the majority of the dues have been received.

Mr. Dugan asked Ms. Weber what was happening regarding delinquents. She was concerned that she had not received a complete copy of the Bank Trust so she would know if Cholla homeowners had to be a member of the HOA in order to get their trust. She feels if she can sit down and meet with people who are delinquent and have the facts to back up what she tells them, it would be helpful in collecting monies. Mr. Dugan told her that Monica will work with her in furnishing membership information needed on delinquent homeowners.

She was given an English and Spanish copy of the notice that was issued by the Governor and recorded in the official bulletin of the State of Sonora. The document said the Developer will present all necessary documents for the regularization of Cholla setting up a Deed of Trust with a Mexican bank as the trustee and a technical committee will be set up to handle it. Mr. Dugan said #3 states that the Tourist Cabinet will promote the incorporation of Neighbors Regularization of the Association of Cholla as a Mexican non-profit association in which all residents or tenants that claim to have rights on the lots of Cholla, as well as those occupants of the Federal Zone in that area, will have to participate so they can be considered in the regularization process.

She will be looking into what services can be stopped and hopes those not paying or not members, will want to bring their dues current or become a member. Mr. Dugan said a while back the Company, in discussions with CFE, because of the capacities of lines, etc., they agreed that all applications for power would go through the Company and then they would approve it and send it to CFE. What the Company agreed to do was call Monica if someone wants new service or a survey. She will notify Mr. Dugan if the lot is current or not and if not, that person is told to get squared away and then they can get power. Ms.Weber asked Monica if she had been called by the Company to see if she and Ms. Howard were current on dues prior to adding another electric meter to their property and she was told no. Ms. Weber said that procedure was not working and proceeded to tell what they have been doing. She gave a long report regarding sales that go through normal avenues that can be monitored. She said the problems are with sales between a

seller, who has been delinquent for years, and a buyer that does not use a realtor or notify
the Vecinos. In those cases the problem continues unless they get lucky and learn of what has happened.

Mr. Dugan suggested she come up with an action plan. She said that was exactly why she wanted documents that would let the Vecinos know just how much power they had in handling people who are not paying such as no water, and garbage. Mr. Sledge reminded the board that the Vecinos could also put a lien against a Deed of Trust according to information passed on by Mr. Peterson.. He said that is the extent of power the Vecinos could use to get delinquents to become current due to not having approved CC&R’s. For those who are not paying but never sell, there is little that can be done. There are also a lot of people still waiting to get a Deed of Trust and he likened the conversation to one a year ago where nothing could be done due to the lack of the CC&R’s. There was also conversation that CFE won’t turn off electric because it is revenue in their pocket.

Mr. Sledge said the only thing the Vecinos can hope for is Mr. Brown keeping the HOA informed when someone comes to him and evidently that is not too reliable and we need to work on that. The only other thing would be stopping garbage and water. It was suggested everyone be sure their membership football is visible and several ways to show them was discussed. Mr. Ketelhut said the footballs are not working because he had made trips with the garbage people and he could see the footballs about 33% of the time.
After much discussion, it was suggested that they be placed on their meters or the pole
because they are on the front of the property.

Mr. Ketelhut suggested that the only way to control garbage pickup is by using a certain kind of garbage can that the Vecinos pay for that would be easily identified by the collectors. Mr. Sledge said he would like to continue the conversation under garbage and finish membership.

Mr. Fletcher asked how many people were not current and the length of time they have not been paying their dues. He was told about 10 percent, some of which go back several years. He wondered how many of them are in Cholla on a regular basis, occasionally or not at all. No one actually knows an answer to that question. There are people who have homes and rentals and just refuse to pay dues. Mr. Dugan said some people think because they don’t have a Deed of Trust they don’t owe anything but are using all the services. Mr. Ketelhut suggested that letters be written to those delinquent informing them of plans to file a lien if they don’t bring the dues current. Mr. Sledge felt homework should be done and the board look into filing a lien against the trust but feels
we need more information. There are horror stories about some residents of Cholla who filed a suit against someone, spend thousands of dollars and get nothing accomplished. t

Ms. Weber suggested stopping water delivery to non paying homeowners even though the delivery person relies on that for their money. Mr. Dugan said the people delivering water have permits and they are obligated to deliver water if asked to do so. If they are filling their truck from the concession owned by the Vecinos, that can possibly be controlled but would need to be researched before any decisions are made especially regarding the Mexicans who live in Cholla.

The decision of the board regarding delinquents was to get them into smaller categories and then make a decision as to who we should go after first and make them aware of what is going on and the fact that the Vecinos have the ability to file a lien against their trust. There are those who will not do anything and those who might pony up some money toward what they owe. Mr. Dugan wanted to know what we would do if they said no way and refuse to pay anything. Then the Vecinos would have to pursue every avenue available to them in collecting back dues.

Ms. Weber will contact Antonio Vinegas regarding the possibility of filing a lien against trusts and Mr. Dugan will check the water concession to see if the Vecinos can legally stop water delivery to those who are delinquent on dues.

There was discussion regarding non-payment of dues by Bob Fredricks who has several properties and supposedly has an agreement with Gus Brown that relieves him of paying dues. Mr. Sledge wants to wait until a definite plan is in place to collect all dues before getting involved with just a couple of delinquent homeowners.

Mr. Weber said she would get a list of delinquents to the board and if they know any of the people and can help in collecting money she would appreciate it.


Mr. Dugan said nothing to report.


Chairman Pat Sledge reported that Doug Gallagher said he would have his work wrapped up by the time of our next meeting. He has wired the building for security including every door and motion sensors. He said he is sure it is not a freebie but he was running
wires in those areas and he added a couple of wires. He has not heard if it is an extra. Keys to the building had been mentioned earlier and Mr. Sledge said there would definitely be some false alarms with everyone in and out of the building. He suggested the alarm might be set July 1st when there is very little activity in Cholla.

Mr. Sledge asked for help from anyone around during the summer during a rain to see if the newly coated roof leaks. He said he hasn’t done anything more about the kitchen changes. He has the measurements but hasn’t set down with the person who does the drawings but will get with him in the next couple of months.

Everything being kept cool or frozen was consolidated into the large refrigerator and the chest freezer. All other coolers and refrigerators were cleaned out and turned off which should cut down on the summer electric bill. Mr. Felton took the food down to a couple of families in Cholla.

Mr. Fletcher offered to help with any issues pertaining to beer dispensers and coolers. Mr. Dugan asked if he could come up with a cooler that would fit at the end of the bar and Mr. Fletcher is going to take measurements and check on availability of equipment.
Ms. Dahlstrom said the sliding top on the chest beer container is almost impossible to slide and it would be nice to replace it. Mr. Dugan said he considered that a part of the building and the Vecinos would be responsible for that equipment. Mr. Sledge buys equipment for dispensing beer from a company in Tucson and if Mr. Fletcher could get a better price, he would appreciate it. He said his company handles a lot of different items that might be needed by the clubs for parties.

Mr. Sledge said there have been two parties, one was a retirement party and used the whole facility and even had a pool in the parking lot. He said there was a piece of rebar that needed to be moved from the parking lot before it caused some damage. It took them a couple of days to get everything cleaned up. They bought 12 ounce beer and there was a whole lot of cleaning up to do. There was also a 50th Anniversary Party the following week and he said both parties went well.

The Executive Committee met on Saturday and came up with a final document for renting the Clubhouse. If someone wants to rent the facility but not use the kitchen, the deposit would be $250. After the event they have the Clubhouse cleaned and if everything is alright, they get $200 of their deposit back. If someone wants to rent the property and use the kitchen, the deposit is $450. They clean the building and surrounding area and everything else is okay, they get $300 of their deposit back. In both rentals there is one tank of water included and extra tanks are $12.00 each. Mr.
Ketelhut wanted the club to have the building cleaned and the cost withheld from the
deposit. The majority of the members present felt that the renter would want the building left in good condition to ensure getting as much of their deposit back as possible. He reminded everyone that OBSC pays the electric bill and a portion of what is received by the Vecinos will be credited to OBSC utility payment. Mr. Dugan said Ms. Dahlstrom can look at 12 months cost, divide by 365 and use the daily rate.

The need for a sponsor/host was discussed, either a board member or a member who is familiar with the Clubhouse as to where everything is turned on and off. They would check for anything damaged and note that before the event and then again check to make sure everything remains the same.

Mr. Sledge when he rented the building he brought them in, showed them how everything worked such as turning on lights, water, changing water tanks, etc. They both signed the contract and he collected the deposit. Mr. Ketelhut asked who would get the permit and Mr. Sledge told him he was not going to get a permit for anyone. If Mr. Dugan volunteers to get it, as he did for someone, that is up to him but it is the responsibility of the person renting the facility. Mr. Sledge told Mr. Ketelhut that since he and Mr. Dugan and some of the other board members live in Cholla full time, they will get more of those emails than anyone else. Mr. Dugan said renting the facility will not be a weekly event and it just happened that the first two rentals happened to be one week apart.

Ms. Weber thought there should be something to show people how to turn the lights and other equipment on. Mr. Sledge had made up a book that covered everything she had just mentioned and it has disappeared.

Secretary said the Rental Agreement will be attached to the minutes and they will be given to Board Members at the October meeting. The Rental Agreement will also be posted on the HOA webpage.


Chairman Jerry Ketelhut said the bulk trash pick up just ended but hasn’t been picked up yet so there is time to get junk out. He said during the summer the trash guys back off a little bit on their daily route. He asked if anyone said their trash hadn’t been picked up, be sure to have them call or email him.

Mr. Dugan said he was going into town and the Vecinos truck was coming out of the Reef area. He thought Mr. Ketelhut might tactfully see if the truck was being used to
pick up trash.

Mr. Fletcher said his windows are not where he can put the football for the trash guys to see but wondered if they could be placed on the meter boxes. There was a very long discussion about using this method to showcase membership but since they adhere to the inside of a window, some other method such as glue would have to be used to put on something else. Several ideas were discussed and the final thought was to put it up any way it would work. Someone suggested a plexiglass holder that had been seen in a couple of places. 36 gallon blue garbage cans had been brought up last month and Mr. Ketelhut said Mr. Arvizu can’t find them but will keep looking for them.

Ms. Dahlstrom volunteered to make half sheet copies of her large Cholla map for the Board’s use.


Ms. Howard reported the grader had been broken and the road has been very bad. Hopefully it will be up and going soon. She said they were using the drag trying to smooth the road as much as possible, but even when the grader is working full time, the roads don’t stay graded very long due to the constant traffic into and out of Cholla.
Ms. Dahlstrom asked how often they are supposed to grade the roads and Ms. Howard said Monday and Friday but doesn’t know how long the grader had been broken. Mr. Dugan said he thinks it hasn’t been used for a week. Ms. Dahlstrom just doesn’t want the Vecinos to be paying and not getting service.

Ms. Weber asked if anyone knew if the grader would skip the area at a house if they have spread gravel on the road. Someone thought that area was skipped because some members have had gravel for several years and there doesn’t seem to be a problem when the grader has gone through the area. It was suggested that the homeowners might want to look into gravel in the future. Mr. Dugan did warn that we do not own the streets and if the gravel happens to get graded, there is nothing the Vecinos can do. Mr. Fletcher asked if someone wanted to put gravel in front of their house, do they need to get permission to do it and he was told if any permission was given it would be from the Company.

Mr. Fletcher asked if all the streets/roads have signs. Ms. Howard said she thinks about 90 percent of them do. Mr. Fletcher lives on the street east of the Clubhouse and Mr Sledge told him the one above (4 way stop) is Calle P so his is Calle Q.


In the absence of Chairman Gene Court, Mr. Dugan said there was little to report.

Ms. Dahlstrom said the bollards are up but Mr. Dahlstrom had Miguel wait on the cable part of the fence.


Ms. Weber said they had planned to do some things down in Borracho Flats but some of that is not a party of Cholla so has to delay it. Mr. Ketelhut asked why the Vecinos can’t put boulders at the end of Borracho Flats and he was told that is not a part of Cholla. He said there are a couple of properties in that area that are not even a part of the Colony. They are separate entities from the Borracho/Cholla area. There were a lot of what ifs but most of it was wishful thinking as to what could happen.

Mr. Sledge said he drove on the beach in that area and there are 27 accesses to the beach in the area she is talking about all the way down to the pipe, both private and public. He wanted everyone to be aware that if they cut off public access to the beach, they can’t have private access to the beach. Ms. Weber said it wasn’t trying to cut off access to the beach, it was getting people to park and walk down. Mr. Sledge said that should be looked at from a private point of view. We can’t have it both ways meaning if we don’t want the Mexicans driving on the beach, then we can’t either.

There was a discussion regarding the concession at the end of the beach by the work yard which is owned by 29 people some of which reside in Cholla. Mr. Dugan said there are three lawsuits being filed on that property so no one owns that concession, but other members had different ideas about the property.

Mr. Dugan said we can’t stop the Mexicans from coming to Cholla and driving to the beach until the city finds an alternate method of accommodating the 60,000 people in the town. The have one sliver or beach on the south side of the town. It is a real issue to try and get them convinced to do something because they really don’t know what to do.

Mr. Dugan informed the board he is looking at a project that might work and he will see what he can do. He wants to explore some alternatives and see if there are other possibilities for the areas in Borracho. Mr. Ketelhut asked him to share and he said he would when he gets more information.
Mr. Dugan said one year ago he saw a picture taken from Competition Hill and there were only 3 people on the beach at the end of Cholla and in one year, there could be hundreds of people in the area. He said he counted 52 trucks and Ponga trailers in the launch area and boats can’t be launched due to people swimming in the water. What can be done about that and where do they go? They are voters and the city won’t do anything about the problem.

Mr. Sledge said one thing he would like to do whenever those problems are approached, is to build something different other than the ugly pipe. He suggested some planter boxes or something. Mr. Dugan had a meeting with someone close to the Mayor’s office and he showed him what they did in Los Conchos and their solution was to beautify the area.
They put in planters which kept vehicles from going through to the beach. The city couldn’t argue with it since they did not stop people from getting to the beach but could not drive to it.

Mr. Ketelhut suggested forming a task force to look into doing something like that from Tucson Beach all the way down to Borracho Flats and he wanted to be on the committee.
He said Villa can’t launch or pick up boats with all the people around the launch area. Mr. Dugan mentioned that if someone got the concession for the launch area they could charge for launching and control it better. Mr. Dugan said the Concession is approximately $4,130.00 per year.

Mr. Sledge said he would help Mr. Ketelhut but feels there is a huge issue and the Vecinos are trying to put a bandaid on it and at this point it would be a small bandage.
Maybe there are some cooperative things that could take place but if the boaters are told they can’t launch there they will be launching at Tucson Beach. He feels with Cedo involved and working with the Vecinos that together they might approach the City with all the problems from Tucson Beach to the end of Cholla and tell them we need some relief. Mr. Ketelhut asked for any other volunteers and Ms. Dahlstrom said she would help. Mr. Dugan said he would be on the task force (by default) and mentioned that he had talked to someone at the City and was told to put all the problems and what is needed in the way of help, etc. and what possible solutions on our letterhead and send it to him and the Mayor will see what help they can give Cholla.

Mr. Dugan said a few homeowners received calls demanding money be put into a checking account or harm may come to them. These calls are being investigated by the police and the best procedure that homeowners can do is to make sure who is calling before you pick up the phone.

Mr. Dugan said this goes back to all the information on every homeowner in Cholla if
anyone gets the membership list and even though he was not at the last meeting, he is
reluctant to see that list handed out to anyone. It can be lost or stolen and he feels the Board would be remiss in putting our members in a situation for something like what has just happened. There was a problem several years ago and members were adamant that their information be guarded from solicitations and this is the worst solicitation in life.

A lady in the audience said her neighbors got one of those calls and the Federales came to their house and said they have caught some of the people who are making the calls and that some of the calls came from the prison.There was discussion about cell phones and no one knew if there had been calls on them. Mr. Dugan suggested that people get caller ID on their Mexican phones and if the caller is not recognized, don’t answer the phone.

Secretary brought up all the board’s information posted on the website and suggested that only their names and email addresses be posted.

That brought up the list that was supposedly promised to Ms. Weber and she said she could work with Monica to get whatever information she needed. Therefore, no membership listing will be given out to any board members.


Mr, Dugan reported that there is a flow problem for Cholla. It involves the Company, the City and it depends on a myriad of issues. One of the major issues is due to the Company not having regulating valves to the 10 areas who receive water. They have valves that have to be opened and closed. All the condominiums have community cisterns they fill to supply the condos. When they are turned on and off and because we are the last on the line to receive water, we sometimes don’t get it and the water boys are standing around and attempt to call a person who works for the Company numerous times and don’t get an answer. Mr. Dugan then calls Mr. Brown who calls the other person and within half an hour the water is in Cholla.

Mr. Dugan gave a long explanation about valves that are turned on and off but the long and short of it is that they don’t work very good. To help correct the problem of not having water when needed, the Vecinos had looked at some kind of engineered tanks on property near the standpipe. In discussion with Mr. Brown one thing came to mind and that was to use regulating valves and every one of the 10 sections would get a regulating valve which would put constant pressure on the lines going to the individual communities. However, the Company does not have money to install the valves but did
have money to fix another problem that is relative to the regulating valves.

Mr. Dugan asked what if the Vecinos loaned them the money to put in the regulating valves and just take it out of the road money paid to them every month. Mr. Brown said that sounded good. It won’t solve the problem i the City doesn’t supply the water but it would solve the problem of not having someone out there turning the valves on/off all the time. The valves will only deliver however much water they are supposed to get.

He asked Mr. Brown what the cost of this endeavor would be and he said he would have his engineering department figure it out. They came back with a drawing showing the location of the water line and the valves they have in the system. The price to do what is proposed would be approximately $36,000. However, Mr. Dugan was going to suggest that some of the valves upstream should be their responsibility and the Vecinos would work a loan with them for the regulating valves to have consistent water. Whatever the cost turned out to be in the long run, it would be deducted from grading payments until paid in full. If the City does not provide regular water, then we would revert to storage tanks. Mr. Dugan asked if the board wanted to proceed with this idea, or just leave it the way it is now. The members present all seemed to think it is worth persuing this solution.

Several board members wondered about cutting all revenue off for grading and whether or not they would do the regular grading but Ms. Dahlstrom said they would still be getting monies for the interior roads and other work they do. Mr. Sledge made a motion that Mr. Dugan get with the Browns and work out a payment plan that would work for the board and the Browns and move forward with the regulators. If it doesn’t work, the Vecinos lost nothing and at that time will have to address some kind of storage. Motion was seconded and approved. Mr. Brown said it would take them about 3 months to complete the job.

Mr. Sledge said he wanted to comment on some of Gerry Nelson’s issues, some of which were very valid. One of his issues was that a licensed engineer be involved and Mr. Brown’s Company has seven engineers licensed in the State of Sonora. He was also concerned about water sitting which would be addressed when necessary. Mr. Sledge wanted everyone to know that the Board is going through the necessary process to handle the water situation.


Ms. Dahlstrom had received a report from the Auditors and Mr. Dugan read what was

contained in the report. They reviewed the Balance Sheet of the Vecinos as of 2006, 2007 and 2008 and the related statements, income and expenses then ended. All the information included in the statement is a representation of the Association. They provided a Management Review letter listing 3 issues.

The Auditors enclosed the following note: We identified these issues that were important to insure that the financial statements were fairly representative relative to the financial fiscal state pf the association. Based on the review we are not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The report was signed by the two Auditors and dated June 30, 2010.

There was some discussion about a couple of items the auditors had suggested regarding collection of the water stand pipe money and that a chart of accounts be prepared and kept up to date to facilitate review of the financial statements, if this does not currently exist. The Vecinos have a small amount of interest earned on accounts in the US and they wanted to make sure the Association is in compliance with any filing requirements.

Mr. Ketelhut had several suggestions of how the audit should have been handled and what he would expect them to do. Ms. Weber also had comments on how it was handled and would like to see all the full report. A lot of discussion was made about the Auditors presenting the audit and Ms. Dahlstrom was to see if the auditors could attend the October meeting.

Tucson Beach palapas were brought up and it was decided to just let them fall down and remove them.

Secretary brought up the General Meeting in 2011. The meeting has normally been on Saturday of the 4th weekend in April. That weekend in 2011 is Easter Weekend and it was suggested that the meeting be moved to Saturday, April 16th, 20ll and the regular meeting will be held on Sunday, April 17th, 2011.

There being no further business to discuss, Mr. Dugan asked for a motion to adjourn. Motion made, seconded and meeting adjourned at 11:45 AM


Respectfully submitted,


Shirley McDonald, Secretary



Sunday, October 10, 2010 9:00 AM
Sunday, November 14, 2010 9:00 AM
Sunday, December 12, 2010 9:00 AM



1. Audit

2. Valves

3. Rental check list

4. Date of General Meeting