The meeting was called to order at 8:30 A.M. In attendance were board members:

Tom Kearns, President

Phyllis Ginzler, Clerk

Scott Russell

Marilyn Salerno

Jeff Witherell

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

Collateral that was provided to members included:

Agenda

Minutes of October 1, 2005 Board of Governors Meeting

Manager’s Report

KHA Statement of Account Balances (as of Nov 03, 2005)

KHA Transaction List by Vendor (Oct. 1 – Nov 3, 2005)

KHA, Inc. Profit and Loss Budget vs. Actual (Jan. 1 – Nov 3, 2005)

Secretary’s Report

The minutes of the September meeting were approved with a minor change of wording under New Business. The revised wording reads: Capital Expenditures. The board agreed that priority would be given to three major capital projects. Scott Russell made the motion to approve the revised minutes and Marilyn Salerno seconded.

Treasurer’s Report

The treasurer’s report was accepted with Scott Russell making the motion to accept and Marilyn Salerno seconding. Bill Hancock, KHA manager, noted that there remained approximately $10K in expenses to be paid.

Committee Reports

1. Building. Dan Weygandt reported no new building requests. Dan agreed to speak with an owner regarding unfinished construction. Dan will remind owner of the requirement that all construction be completed in a timely fashion per KHA by-law.

2. Pool. Steve Fisher discussed spring projects related to the pool such as handicap ramp, gym set and landscaping. The board agreed to put down grass seed and lime now in preparation for spring landscaping. The board previously had approved the purchase of additional pool furniture for the 2006 season. The pool committee will report back on its recommendation on landscaping. Steve Fisher raised the issue of keeping the pool open past Labor Day. The board decided to keep to the current schedule to close the pool shortly after Labor Day due to the cost of power and maintenance and the lack of staff supervision past Labor Day. Phyllis Ginzler raised the issue of the placement of the children’s gym from the current site outside the pool gate to the beach area instead. She noted that the current site might be used for additional parking that was sorely needed. Also, she noted that the gym would be used by small children running in and out of the gate area and therefore very near parking cars, possibly creating a safety hazard.

3. Waterfront. Steve Fisher will replace Price Hutchins as chairman of the Waterfront Committee. The board expressed their appreciation to Price for his hard work and leadership. Steve will study adding more boat/canoe racks so that every non-motorized craft is placed on a rack.

Manager’s Report

Bill Hancock submitted his Manager’s Report. He noted that KHA water usage was at its lowest level in quite some time – less than 30,000 gallons/day. Bill discussed the issues regarding adding a light pole to the entrance of the marina.

The Manager’s report was accepted with Scott Russell making the motion to

accept and Phyllis Ginzler seconding.

Old Business

1. Boat Slip Assignments. No new business.

2. Web Site. It is necessary to assure that the KHA covenants and by-laws are current and accurate on our web site. Phyllis Ginzler will check on this.

3. Maintenance Items and Capital Expenditures. KHA member Bob Gelles recommended that the board consider replacement of docks and floats and the extension of docks further into Moose Pond. He estimated that replacing/expanding dock area to the right of the walkway would cost approximately $4,000. Expansion/extension of the entire dock area would cost approximately $10,000. The board has delayed a final decision until January in order to assess the ability of KHA to fund this project.

4. Review of Manager and Staff Job Descriptions. The board agreed to continue to review previous board decisions concerning job descriptions and consult with each other to clarify and formalize KHA requirements and expectations for manager and staff.

5. Issue of a Variance. Tim Crosby consulted with KHA attorney Matzen and summarized his findings in a memo (attached) to the board. However KHA member Norma Gelles took issue with the findings (in particular, the lack of specificity in the 2001 annual meeting minutes) and urged the board to proceed with a new variance process. She suggested that the board rescind old KHA variance policy and approve an updated policy and have it notarized. This would adhere more closely to KHA covenants and by-laws and protect KHA in the future from legal action. The board took no action at this time and will continue to study the matter.

New Business

1. Pool Liability. The board will look into the issue of liability due to injury at the pool to ensure that we know how to handle any situation that arises.

The meeting adjourned at 10:00 A.M.

Respectfully submitted

Phyllis Ginzler

Recording Clerk

November 10, 2005