General meeting was held on Saturday, April 26, 2008 at the Cholla Community Center

General meeting was held on Saturday, April 26, 2008 at the Cholla Community Center

P. O. Box 620
Lukeville, Arizona 85341

A general meeting was held on Saturday, April 26, 2008 at the Cholla Community Center. President Michael Dugan called the meeting to order at 9:00 AM. There not being a quorum present, motion was made, seconded and approved by the membership to adjourn. The meeting was then reconvened at 9:05 AM.

All board members were recognized and commended on the work of committees they chaired the previous year.


A motion was made to dispense with reading the minutes of the general meeting held on Saturday April 28, 2007. Motion seconded and approved.


There were four Operating Budgets presented to the assembly raising the dues to $185.00 per year to maintain services as they are referred to as Option A, raising dues to $215.00 per year which included a police/fire/rescue complex referred to as Option B, and raising dues to $220.00 per year which would include a town manager referred to as Option C.


There were 27 new memberships since the last meeting. Mr. Dugan asked for a motion to approve the memberships. Motion made, seconded and all new members accepted.


There were 3 – 3 year terms and 1 – 1 year term for Board of Directors sought by Steve Lee, Lew Felton, Michael Eagan, Gretchen Ellinger and Gerry Nelson. Don Schmidli was running for the 1 year Delegate of Vigilance term.

Also to be voted on was the 2008-2009 Budget. Option A raised dues to $185 to maintain present services. Option B raised dues to $215 and included a paramedic. Option C raised dues to $220 and included a City Manager. Option D raised dues to $250 and included a paramedic and City Manager.


Mr. Dugan expounded on the board’s accomplishments of 2007-2008. He mentioned the
Clubhouse with its new floor, remodeled bar area, cleaning and upgrading the office, the park,
Working on the roads and installing street signs.

Mr. Dugan reported on getting water to the edge of Cholla with a standpipe so the water trucks can fill up, cutting down on use of gas and lowering price per tank to homeowners.
A water concession was secured from OOMOPAS costing approximately $15,000 which can be sold at the time water and sewer comes to Cholla. It will continue to grow in value during our use and insures water for Cholla. Joe Anacletto of JJ’s has been a big help with the water dispensation.

Mr. Dugan also reported that Bengie Brown said he would have the plans for the Cholla Bay sewer and water system within one month and will start installation of service by October, 2008.

As to the CC&RS, Mr. Dugan reported that the group putting the regulations together
Plans to submit them to the registry within 6 weeks and hopefully approved
within 8 weeks and registered for Cholla Bay. These guidelines will help with some of the issues facing Cholla as to new construction.

The next issue he covered was the Deeds of Trust. Procedures to get a trust has been posted to the Vecinos Website. One of the problems with some of the trusts has to do with the latest survey and hundreds of letters being sent out asking homeowners to sign the documents that state their lot size and return them. To date, they have received three and that is a problem with going forward. There have also been problems getting in touch with representatives of the bank to find out the status of individual trusts.

At that point, Mr. Dugan thanked Bengie Brown and said he has been a great help to Cholla. He said that much of what has been accomplished by the board this year has been through the gracious help of Mr. Brown.

Mr. Dugan also discussed the beaches and the problems with such an influx of people from Rocky Point. They have become a dumping ground for a lot of people and something has to be done to end it.

He brought up road maintenance. The main roads are graded but the secondary roads are not. Chairman Pete Pisciotta has budgeted for necessary maintenance but to do all the roads, would cost much more than budgeted. The board would like to see all roads maintained.

One of the things budgeted this year is the expansion of the fire station. The Vecinos own two fire trucks, one of which is being used by Rocky Point because there is no place to store it in Cholla. Money has been budgeted for the last couple of years to expand that area and one of the issues with regard to this is a paramedic. The cost for both a fireman and paramedic was prohibitive, but that is something for the future.

One of the projects is the fencing of the clubhouse. A test section has been installed on
the west side of the property. It is the board’s wish to take that same concept to the park
area. Mr. Dugan said the board is looking to add to the park area. First phase has been finished but playground equipment is planned this year.

The next topic was security and the need for more of it. He discussed private security and a gatehouse, both options to think about in order to make the community safe for everyone.

Mr. Dugan urged all homeowners who have property on the water to seek a concession on the federal zone. The homeowner has the first right for that concession but if that right is not exercised and an application made for it, anyone can buy the concession for
their use, whatever it might be.

Mr. Dugan informed those present that the Clubhouse can be rented and there is a process in place for that. He also informed them that if they did rent it for any kind of function where alcohol is involved, it is necessary to get a permit in Rocky Point.

Pat Sledge introduced Lowell McCulley for his work in setting up the HOA Website and said cards were being passed out with information about the website.


John Wyatt said the street signs were nice but felt more speed limit signs were needed.

Another homeowner said she was still paying $16 for two tanks of water. Mr. Dugan said he had spoken to seven drivers and they agreed to lower their prices $1 per small tank and $2 per large tank if they pull water out of the standpipe. He said if they have to go to town to get water then that would be the higher rate. She was asked if she had a green sticker on her house and she said no. Many people said they did not get a green sticker which was sent out with the receipt for paying their dues in July. The audience was told if they had a problem with the pricing in the future to either call any member of the board or ask Joe at JJs. That was the agreement with the water truck drivers.For those who did not get a green sticker, Monica was passing them out at the sign in table.

Mr. Dugan was asked why there was no option to not raise the dues and was told that it was necessary to continue the level of service as being provided. He explained that many things are planned for the rest of this budget year and a raise is needed to continue to improve Cholla and maintain the contingency budget at about the same level.

One homeowner asked if the sewer system in Cholla would have a waste treatment plant and Mr. Dugan said it would not be in the community of Cholla Bay. In answer to someone’s question about fire hydrants in Cholla Bay, he was told there would be none.

There was a long discussion about garbage containers on the beach and when they were picked up, etc.

Connie Norsworthy asked if the Vecinos was being reimbursed for the fire truck being used by Rocky Point. She was told no and wanted to know why. Mr. Dugan said they were maintaining it.

She also asked if the names of the 86 “dead beats” who have not paid could be put in the Newsletter and was told they had been in the Newsletter numerous times. She also wanted to know if any late fees, etc. could be assessed again them at the time of a sale. Mr. Dugan replied that the answer was probably but escrows in Mexico are very different than in the states.

Mr. Dugan advised the audience that there are 15 board members who come down for a meeting once a month and work for nothing, to be able to try and maintain some kind of order in Cholla and take care of everything that needs to be done. He said not only the board but every homeowner needs to work toward that goal.

Connie also brought up money spent on road grading and wanted to know when the Vecinos could expect to get roads other than the main ones graded. The money budgeted will not cover grading all roads but the Company said they would maintain primary and secondary roads for about $2,000 per month which is not in the present budget and would mean raising each homeowner’s dues by $30 per year.

Ray Flynn suggested a building on the Clubhouse property with lodging, etc for private security and offered to fund the building. Mr. Dugan told him it would be discussed by the Executive Board and thanked him for his offer.

Mr. Tegge was concerned with what is spent to maintain the fire truck but he is concerned that it isn’t being maintained well enough to be of use if needed. Mr. Dugan told him that a major part was replaced a short time ago, it was tested and the truck ran.

Someone asked about the ownership of the water and sewer line when they are put in.
He felt costs would be astronomical and there was a long discussion about how to handle that problem. Bengie Brown said that the system could only be turned over to Rocky Point if the system was built to their specifications. He felt the water system should be kept under Cholla management because it will generate a lot of money. Vecinos are being charged 13 pesos per cubic meter and the water trucks are being charged 25 pesos per cubic liter which is 5 pesos cheaper than they would pay in Penasco. The Vecinos are making double on every cubic meter that comes out of the standpipe.

Sewer is the same system. He feels it can be sustained with $20.00 per month per home. If everyone pays $30 per month per month, money will be made.

Water and sewer are both a business and if owned by the Vecinos, maybe in the future we will get to a point where dues will not be necessary. He said in the future, that decision regarding owning the systems will have to be made.

Mr. Brown said Cholla is at a turning point right now. A check station can be installed, and water and sewer can be maintained. If everything, including the roads, are turned over to someone else, we will not get good service from Rocky Point because we are too far out.

Mr. Sledge, at the request of a homeowner, explained Options B and C to the budget presented for approval. He said the options included hiring a City Manager to take directions from the board on managing the town. There was also inclusion of living quarters for security which would be 24 hours a day. Work on the office to make it safe to store records, etc. and have an office the proposed City Manager could work out of
with phones and necessary equipment to bring the office up-to-date.

Mr. Dugan explained that the Company is paying $66,000 per month to maintain the infrastructure of Sandy Beach, the Gus Brown road, electricity to pump the water, sewer system and many other things that they will eventually divide up among the users and a small portion of those costs will be passed on to Cholla Bay. He said he was telling them this story because there is always continuing costs to have a community.

Mr. Dugan announced there were 22 proxies still waiting to be voted and he asked if there as anyone who hadn’t voted a proxy, to please vote one.

There was a discussion regarding disintegrating power poles and if power lines could be buried at the time the poles are replaced. Mr. Dugan said the existing lines will never be put underground because that would call for a complete different system.

There being no other business to discuss, Mr. Dugan asked for a motion to adjourn. Motion made, seconded and meeting adjourned at 10:45 AM.

Respectfully submitted,


Shirley McDonald, Secretary





Board of Directors:

3 Year Terms

Steve Lee
Lew Felton
Michael Eagan

1 Year Term

Gretchen Ellinger

Delegate of Vigilance:

Don Schmidli

2008 – 2009 Budget:

Option A – Raising dues to $185 per year was approved.