The meeting was called to order at 8:29 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 11 KHA members. (Sign-in sheet attached.)

Collateral that was provided to members included:

Agenda

Minutes of April 8, 2006 Board of Governors Meeting

Manager’s Report

KHA Statement of Account Balances (as of 05-02-06)

KHA Transaction List by Vendor (Apr.1 through May 2, 2006)

KHA, Inc. Profit and Loss Budget vs. Actual (Jan.1 through May 2, 2006)

KHA Re-formatted Budget 2006

KHA Re-formatted Proposed Budget 2007

Secretary’s Report

The minutes of the April 8, 2006 meeting were approved with Marilyn Salerno making the motion to approve and Jeff Witherell seconding.

Treasurer’s Report

The treasurer’s report was approved with Scott Russell making the motion and Phyllis Ginzler seconding.

Committee Reports

1. Building. Dan Weygandt reported that Steve Fisher has applied for a permit to build an addition to his home.

2. Waterfront/Docks. The committee discussed the use of the lagoon for the exclusive use as a children’s swimming area without a final decision. The committee recommends replacing the sign in the lagoon to ask boaters to turn off their engines when entering the area and to avoid causing a wake.

3. Policy Manual. Draft, version 1 is complete. It was agreed to keep the policy book focused on policies only and omit other appendices.

Manager’s Report (attached)

An edited version of the manager’s report is now included with the minutes of the Board meeting on the KHA web site.

Of note: 1) Seven homeowners are being served with a statement of small claims. 2) Boat slip assignments were mailed on April 15^th. 3) KHA water has been tested for uranium. Results show that KHA water is within safe limits for uranium. 4) Water system improvements are continuing throughout Knights Hill. 5) The electrical line to the marina was repaired. 6) Thanks to Steve Fisher for re-seeding the pool area lawn.

Motion was made by Pam Ambrose to accept the manager’s report from March as well as April. Marilyn Salerno seconded and the motion passed.

Old Business

1. Budget. Jeff Witherell developed a new format for the KHA budget statement. Discussion centered on the potential for increase in dues/water fees in order to fund capital improvements. Preliminary analysis indicates that a $70 increase in dues/water fees may be presented to the membership at the annual meeting. Before proposing any increases to the membership, however, the board needs to assess the costs of repairing and replacing the docks and boardwalk, plus other items.

2. Capital Improvements. Current capital improvement projects approved by the board are in various stages: the handicap ramp at the pool is under construction; the Poolwinkle roof will be replaced this spring at a cost of approximately $4500 for a metal roof; the tennis courts will be re-surfaced in the fall. The board and KHA attendees discussed the progress of KHA water system upgrades and future plans. To date, Bill Hancock reported that we have replaced 14 of the 26 original gates. In addition to replacing the remaining 12, Bill recommends that we add 3 gates to the system. With input form the board, Bill will prioritize these new gates plus 3 flow control units (to improve water pressure). Costs for these improvements are estimated at $3,500 to $5,000 per gate, and $12,000 per flow control unit. The KHA water system account currently shows $24,000 plus an additional $12,000 in the FY2006 budget for a total of $36,000 that can be applied to continuous water system improvements over the next 12 months. The board requested that KHA manager Bill Hancock submit a comprehensive 5-year plan to document these and any other planned improvements.

3. Manager’s Job Description. The board discussed a Manager’s Job Description that was developed by the current 2006 Board of Governors over the last 8 months. It was noted that for many years, the membership had been promised a written job description in order to clarify the duties and functions of the KHA manager. Phyllis Ginzler pointed out that a job description is an essential tool by which the Board can evaluate the manager’s performance. KHA manager Bill Hancock objected to the description as drafted because it differed in some aspects to his understanding of his responsibilities. It was agreed that the job description would not supersede the current oral agreement under which our manager works and which is in effect until August 2007. Phyllis Ginzler made a motion to accept the Manager’s Job Description as developed by the 2006 Board of Governors. It will not supersede the agreement between the current manager and the previous Board, in effect until August 2007. The motion was seconded by Peter Silva and passed.

New Business

1. There will be NO special meeting on clean-up day in May.

2. Minutes of 2005 Annual Meeting. Marilyn Salerno prepared the minutes of the July 2005 Annual meeting in preparation for the 2006 meeting.

3. Summer Season Projects. Discussion centered on the tasks to prepare for the 2006 summer season: plantings; staining picnic tables; power washing the Bullwinkle. There was also some discussion of the duties of the summer staff and the need of sub-contracted cleaning services.

Motion to adjourn at 10:55 made by Phyllis Ginzler, seconded by Jeff Witherell.