The meeting was called to order at 8:33 A.M. In attendance were board members:

Tom Kearns, President

Phyllis Ginzler, Clerk

Pam Ambrose, Treasurer

Scott Russell

Marilyn Salerno

Peter Silva

Jeff Witherell

Also in attendance were 6 KHA members. (Sign-in sheet attached)

Collateral that was provided to members included:

Agenda

Minutes of December 3, 2005 Board of Governors Meeting

Manager’s Report

KHA Statement of Account Balances (as of Jan. 5, 2005)

KHA Transaction List by Vendor (December, 2005)

KHA, Inc. Profit and Loss Budget vs. Actual (Jan. through Dec.2005)

Secretary’s Report

Phyllis Ginzler informed the committee that the October minutes had been changed per the motion at the December board meeting and that the revised final minutes of the October KHA Board of Directors meeting was now posted on the KHA web site.

KHA member Norma Gelles corrected the language in the section, “Rescind Variance Policy” under New Business. With that correction, the

minutes of the December 3 meeting were approved with Pam Ambrose making the motion to approve and Marilyn Salerno seconding.

Treasurer’s Report

The treasurer’s report was accepted with Phyllis Ginzler making the motion to accept and Peter Silva seconding.

KHA member Tracy Rania questioned the telephone expense item, asking if the Association was using the lowest cost plan available. KHA manager Bill Hancock explained the basis of the expense and his attempts to lower these costs without compromising response time, especially in times of emergency. KHA treasurer Pam Ambrose also looked into this item and concluded that it was the best plan that matched KHA’s communication needs. The board remains open to suggestions as to ways to reduce this or any other KHA expense.

Committee Reports

1. Building. Nothing to report.

2. Pool. Nothing to report. At the next board meeting, Steve Fisher and Phyllis Ginzler will submit a summary financial report.

3. Waterfront. Nothing to report.

Manager’s Report (attached)

Bill Hancock reported that one of the water system pumps and motor requires maintenance and is being addressed.

The Manager’s report was accepted with Peter Silva making the motion to accept and Scott Russell- seconding.

Old Business

1. Maintenance. KHA member Bob Gelles provided his analysis, with pricing, of the cost to replace/add docking capacity. The estimated cost is $6,000 in material. Bob Gelles and Dave McFarland have provided Labor in the past. Labor cost is projected at only $2,000 because Bob Gelles donates his time.

In addition to the additional dock capacity, Bob Gelles estimated the cost to replace the walkway at $2,000 in material. However, some members noted that this might be a low estimate.

The suggestion was made to obtain a quote from Great Northern Docks for comparable material and labor. Bill Hancock will provide the quotes that Great Northern submitted in the past to add new dock “fingers” as a way of comparison.

The question was asked as to KHA’s ability to fund this project in FY2006. Based on KHA financial position in Jan. 2006, it appears KHA has the monies to fund the project this year. The board will direct Bob Gelles to procure the material at the lowest cost.

Also, Marilyn Salerno thanked Bill Hancock for proactively procuring the material necessary to repair cracks in the surface of the tennis courts this spring.

2. Review of Manager and Staff Job Descriptions. The board is continuing to develop job descriptions.

3. Variance. Tom Kearns will sign and register the change to KHA variance policy. See minutes of December 3 Board of Directors meeting.

New Business

1. Special Meeting. The Board will call a special membership meeting concurrent with the March 4 Board meeting for the purpose approving the revision to the 2001 KHA annual meeting minutes. The reason for the revision is the omission (in the minutes) of the membership approval of all Board actions taken in FY2001. In accordance with the By-laws, the membership will be notified in advance of the meeting. A written notice will be sent, giving the membership at least 30 days notice. Phyllis Ginzler made the motion to set the time of the special meeting at 8:30 A.M. on March 4. Marilyn Salerno seconded.

2. Policy Manual. Tom Kearns initiated a project to create a KHA policy manual. Phyllis Ginzler volunteered to lead this effort assisted by Pam Ambrose and Marilyn Salerno.

3. False Advertising by Realtors. Peter Silva raised the issue of realtors in the area falsely advertising that “a private boat slip” is automatically included with each home that is for sale in Knights Hill. Bill Hancock will send a certified letter to the Board of Realty correcting this inaccuracy.

4. KHA Telephone Book. It was noted that the membership did not receive the questionnaire concerning the proposed KHA telephone directory. The questionnaire will be re-sent as part of the next newsletter.

5. Request for access. KHA member Tom Tanner asked the Board to consider his suggestion for easier and safer access to his pontoon boat moored near the KHA walkway bridge. The Board committed to looking into this situation in the spring.

6. Water Quality. KHA member Tom Tanner questioned the quality of our water because of the occasional strong smell of chlorine in the morning. Bill Hancock assured Tom and the members that the water is tested regularly and our chlorine content is in accordance with high quality standards. However, he explained the possible cause of the odor in the morning and this explanation was accepted.

The meeting adjourned at 9:35 A.M.

Respectfully submitted

Phyllis Ginzler

Recording Clerk

January 12, 2006