I don't know where you get saying you can put a bag over the propeller. I fish there a lot and live in town.

The state statue and law is you have to remove the propeller. This is clearly noted on the rules at the boat launch.

Sec. 15-136a. Compliance with certain engine size requirements. In complying with the requirements of any statute, regulation or ordinance restricting the horsepower or size of the engine on any vessel while being operated on an inland body of water, a person may (1) in the case of an outboard motor, remove the propeller from the boat’s engine and incline the engine out of the water so that the absence of the propeller is clearly visible, or (2) in the case of an inboard motor, remove the propeller from the boat’s engine and incline or trim the engine to an upright position. This section shall not be construed to allow vessels with the gasoline-powered engines on bodies of water where such engines are not allowed.

Also I've seen people stopped there trying to do this by the local landowners association. You can see their website below and that they state correctly the law is you must remove the propeller

http://westhillpond.org/west-hill-pond/fishing/