The meeting was called to order at 8:30 a.m.

In attendance were board members:

Pam Ambrose, President

Phyllis Ginzler, Clerk

Marilyn Salerno

Tom Tanner

Also in attendance were 13 KHA members. (Sign-in sheet attached.)

Secretary’s Report

Marilyn Salerno made a motion to accept the minutes of the March meeting. The motion was seconded and passed. Phyllis Ginzler reported that there are 139 accurate e-mail addresses in the KHA e-mail distribution list and that more members are continuing to send in their completed contact sheets.

Treasurer’s Report

Pam Ambrose substituted for Jeff Witherell and reported that funds on hand in KHA accounts totaled $198,895.65. Currently, KHA has collected greater than 90% of membership dues. There is $23,000 in dues outstanding, of which $4,000 is past due. Pam reported that she has been working with a bookkeeper from our KHA accounting firm (Jones and Matthews) to “clean up” our accounting software and reconcile files. The cost is $20/hour and Pam said that it is well worth the expense for the assurance of up to date and accurate records.

Phyllis Ginzler made the motion to accept the Treasurer’s report. It was seconded and the motion passed.

Manager’s Report

1. Fred Fortier reported that the mandatory test for bacteria for the month of January was not done. (Fred began employment at KHA on Jan. 29) However, when it was performed, bacteria levels were acceptable.) He wants the membership to know that this will be recorded in the 2006 Consumer Confidence Report (an annual report) in July.

2. Fred reported that Dave McFarland is returning in April but his workload is yet to be determined. Jack Kostka has been a great asset to KHA by being very responsive and communicating well with the manager and with the members. Fred noted that he is proceeding with hiring an assistant but until he has a better understanding of his needs, he will hire a per diem person in the short term. This person will be processed through payroll to fulfill insurance requirements.

3. Fred is evaluating a new fence and door for the pump house. In the meantime, he is cleaning up the area. The generator has worked well. He hopes to provide tours for the members who are interested.

4. Fred will begin full time duties Monday, April 16, 2 weeks earlier than expected.

5. Bathrooms at the Bullwinkle will be painted and updated. Also, we will switch the men’s and women’s rooms.

6. Fred will deliver a list of summer “to dos” at the next meting.

7. The semi-annual copper test is coming due (June 30). Fred will contact individual homeowners for testing of their water for copper.

Committee Reports

Building. Dan Weygandt reported one request for a screened-in porch and one request for a new house.

Declarations. Pam Ambrose explained the effort underway to renew KHA Declarations. Norma Gelles prepared a draft mailer for the membership: a letter of explanation and a ballot. Norma went on to emphasize the need for each owner to sign the ballot. It was estimated that KHA has 650 owners of the 287 deeded lots. It is estimated that we need approximately 325 signatures to fulfill a majority approval vote. The mailer will go out to the membership Monday, April 16. In addition, the Board will follow up with phone calls and e-mail reminders to complete and return the proxy forms. Norma and Phyllis Ginzler will manage this process and monitor responses. It was noted that proxy votes are not valid.

Old Business

1. Insurance. Pam Ambrose conducted an insurance review with Jim Chalmers. We have added a surety bond for the board member who handles KHA funds as well as the manager. The cost to the association is $224. /year. Tom Tanner made a motion that a surety bond of $250,000 covers five positions in KHA, INC. maximum. The motion was seconded and passed. Pam also noted that workman’s compensation covers our manager for “hands-on” work, not just clerical.

2. Financials. Pam Ambrose reported that the KHA audit cost $2100 and that KHA taxes were filed on time.

3. Well Expenses. Pam Ambrose reported that expenses incurred in drilling a third well and other related expenses totaled $39,503.46. This includes $1500 for additional work in the spring by JK Maintenance. The cost to each lot owner is estimated at $150 - $160. There was discussion as to when to send out the bill to the owners. It was decided to send the bills June 1 and provide 60 days for payment. This would allow ample time for an owner to remit payment without jeopardizing his/her “good standing” in order to attend the July annual meeting. To a question about the need to drill for another well, the item was deferred to Fred Fortier and his manager’s report.

New Business

1. August 11 Barbecue. In place of the annual lobster bake, KHA will hold a barbecue on Aug. 11. The menu will include chicken and ribs and will be catered by Lake Region Caterers. The cost will be $20/person and $10 for a child 6-10. Children 5 and under eat free. This information will go out in the annual meeting packet. It was noted that monies collected for this and other social events will be kept separate from other KHA funds.

2. Tag Sale. Postponed to May meeting.

3. Sand Box. It was decided to move the sandbox to a more appropriate area on the beach.

4. CPO License for Pool Operators. Fred Fortier and Dave McFarland will take the course to be certified pool operators prior to the pool opening. Fred will also identify a third person. The cost is $25/person plus one day’s pay. Tom Tanner suggested Jack Kostka as well as summer staff. Fred will coordinate.

5. Cigarette Disposal Containers. Pam Ambrose ordered 2 cigarette disposal containers for the pool and beach areas.

6. Member List Policy. There was discussion about releasing or restricting the use of member lists and member information. The issue was tabled pending a call to KHA attorney.

7. Maine Drinking Water Program. Pam Ambrose read a letter from the Maine Drinking Water Program (MEDWP) that retracted and apologized for a previous letter written to former manager Bill Hancock which was used by him to support his seeking unemployment compensation. (The request for unemployment compensation and subsequent appeal were denied.)

8. Nominating Committee. There are 4 seats available for the 2007-2009 term. Joie Tanner has volunteered to chair the process. If no other volunteers come forward, Pam Ambrose will appoint a board member to join Joie.

9. Pool Hours. Phyllis Ginzler made a motion to establish pool hours for the 2007 season from 9:00 a.m. to 8:30 p.m. until August 1 when the closing time will be 8:00p.m (weather permitting). The motion was seconded and passed. There was discussion and agreement on prohibiting private parties at the pool at any hour. There was discussion on creating a lap lane for lap swimmers but it did not receive enough support.

Member Requests or Comments

Phyllis Ginzler made the motion to adjourn. The motion was seconded and passed.

Meeting adjourned at 10:52 a.m.

Respectfully submitted,

Phyllis Ginzler

Recording Clerk

Board of Governors

Knights Hill Association, Inc.

April 29, 2007