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

In attendance were board members:

Tom Kearns, Vice-president

Phyllis Ginzler, Clerk

Peter Silva

Tom Tanner

Jeff Witherell

Also in attendance were 13 KHA members. (Sign-in sheet attached.) Vice-president Tom Kearns chaired the meeting in the absence of Pam Ambrose.

Secretary’s Report

Phyllis Ginzler reported that KHA had received 211 signatures to date voting to renew the KHA Declarations.

After discussion and suggested wording changes, Marilyn Salerno made a motion to approve the minutes of the April Board meeting as amended. The motion was seconded and passed.

Treasurer’s Report

Jeff Witherell reported that KHA continues to receive dues payments. Due to an issue with our accounting software, he was delayed from printing any reports. The balance in KHA accounts as of May 4 totaled $182,000.

Tom Kearns made the motion to accept the treasurer’s report. The motion was seconded and passed.

Manager’s Report

Fred Fortier was on vacation, but prepared and e-mailed his manager’s report to Phyllis Ginzler who read the following report:

1. Water calls: No emergency calls this month. Just requests for seasonal turn- on. Will include non-compliance notification for January (as discussed last meeting) with Consumer Confidence Report for 2006 in July.

2. Docks:

· The gas docks are in place

· Remaining docks will be installed on May 15 and 16, weather permitting. We are rebuilding 3 older docks because they are too unsafe, using lumber purchased last fall and stored at the pump house.

· Once the docks are installed, we will begin work on rebuilding the walkway, again using the materials purchased last fall.

3. Pool area: The pool company is scheduled to come the week of May 25 for "firing up" pool. However, it won't open for use until after Memorial weekend, weather permitting. I will also initiate the water works system for the Poolwinkle during that same week. I will be attending the course to become state-certified as a pool operator during May. Certification is good for 5 years. Then it is up to the state as to the re- certification process.

4. Tennis Courts: As soon as the surface is free of excess moisture, I will get the nets into place.

5. Beach area: I will clean/groom/trim beach area as soon as docks go in the water. I do need an exact new location for the sandbox, keeping in mind the size of the box and the size of the new area.

6. Bullwinkle: The new bulletin board is done, thanks to Dan Weygandt. Dan has also generously offered to build a frame for the new lot map created by Tom Tanner. The new bulletin board will go up on Tuesday of this week. I will begin working on the exterior of the building, washing and painting, in May. I will also do some parking lot repair when the ground dries out. This includes parking striping with environ-safe, water based paint.

7. Signage: This needs attention and I’ll spend some time plumbing and leveling, and replacing posts as needed. Winter was unkind to them.

8. Dues: Continues to come in.

9. Cleanup/work day. I need a list of materials used last year to be ready for the volunteers.

The board members discussed the report, in particular, the list of materials that Fred needed to order for the cleanup day. Marilyn Salerno and David Ginzler offered to take charge of buying the food and charcoal for the lunch that will be served for all the volunteers. Marilyn will also work with Fred to order the flowers for the beds and buckets around the pool area, Bullwinkle and select corners of KHA streets.

Phyllis Ginzler made the motion to accept the manager’s report. The motion was seconded and passed.

Committee Reports

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

Old Business

Nominating Committee. Michelle Douglas has offered to co-chair the committee with Joie Tanner.

New Business

2008 Budget: The Board discussed the expected capital improvements for inclusion in next year’s budget including docks and water system. It was noted that operational expenses should remain level, or increase slightly. The Board recommended adding to the KHA reserves, but noted that there had to be agreement on how it would be used. Currently, it is a line item used as a “safety net” for emergency expenses.

Member Requests or Comments

1. To the question on when notification on boat slips would be sent out, the Board deferred to Fred when he returned.

2. There was discussion on special assessments vs. the building of the reserve account as a way to fund large capital improvements and provide for unplanned expenses. Jeff Witherell said that the board should specify the rules as to what constitutes an emergency. We could use the past well situation, as an example of the level of funding KHA should keep in a reserve account. It was agreed that our manager’s 5-year plan (in process) needs to be translated into the budget for next year and succeeding years. Tom Tanner added that municipalities typically maintained reserve accounts but with a ceiling. He suggested a ceiling for KHA reserve account at $30,000. The Board agreed to consider building a reserve account to $30,000 as a goal over time. The Board agreed to be ready at the June meeting to submit a budget for inclusion in the membership packet for the annual meeting.

3. Norma Gelles raised awareness about the need for signed and returned ballots for the renewal of the Declarations. Phyllis Ginzler noted that she is preparing a list of owners who have yet to return their ballot in order for each board member to call with a reminder. To a question about e-mailing a copy of the covenants, it was pointed out that the covenants and by-laws are available on the KHA web site.

4. There was a problem at a house on North Bay that Dave Croteau offered to address.

5. Price Hutchins asked if the problem of low water pressure can be solved by a pressure relay. Jeff Witherell stressed the importance, if this is the solution, to include this item in our budget preparation.

6. Dave Croteau asked how many valves had been replaced. The Board answered that we have a list of valves that we have added, as well as replaced and deferred the question to our manager when he returns.

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

Meeting adjourned at 9:28 a.m.

Respectfully submitted,

Phyllis Ginzler

Recording Clerk

Board of Governors

Knights Hill Association, Inc.

May 28, 2007