The meeting was called to order at 8:30 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 7 KHA members. (Sign-in sheet attached.)

Collateral that was provided to members included:

Agenda

Minutes of May 6, 2006 Board of Governors Meeting

Manager’s Report and Manager’s Plan for Projected Improvements: Water Betterment Program 2006 Season

KHA Statement of Account Balances (as of 05-31-06)

KHA Transaction List by Vendor (May 2006)

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

KHA Approved Budget 2006

KHA Proposed Budget 2007

Secretary’s Report

The minutes of the May 6, 2006 meeting were approved with Peter Silva making the motion to approve and Marilyn Salerno seconding.

Treasurer’s Report

The treasurer’s report was approved with Jeff Witherell making the motion to accept and Phyllis Ginzler seconding.

Committee Reports

1. Building. Dan Weygandt reported that he has received three requests for deck additions.

2. Waterfront/Docks. Steve Fisher asked what the Board expected of the Waterfront Committee. Discussion followed and it was agreed that the Committee serves a valuable function to study and make recommendations regarding the waterfront and docks. Further discussion focused on the remaining issues and tasks in preparation for the 2006 season: 1) There are 6 or 7 boat slip requests outstanding to date; 2) There is a need for a sign at the dry hydrant to indicate fire lane; 3) Growth around the loading dock needs to be trimmed; 4) We need to post notice of abandoned canoes on the bulletin board and in the newsletter.

3. Policy Manual. Phyllis Ginzler reported on the progress of the Policy Book. She pointed out that the Policy Book now contained a non-smoking policy at the pool area, and the re-instatement of KHA, Inc. owner and guest passes as policy. The Board agreed to include these policies. Phyllis Ginzler then made the motion to approve the Policy Book and contents therein. Peter Silva seconded and the motion passed.

Manager’s Report (attached)

Of note: 1) Quotes for mosquito spraying have gone out to 9 companies after McSherry’s Nursery was unable to spray. Two bids have been received. 2) All small claims cases have been settled prior to going to court. Cases will not be dismissed, however, until owners pay court costs and civil service fees. 3) Dock installation was complete as of May 15^th. 4) The Memorial Day clean up had a great turnout. Thanks to all who participated. 5) Water business: Various leaks were reported and are being investigated. Bill Hancock addressed a problem of a dam created by beavers in close proximity to the water supply. Bill contacted Maine Rural Water and the State Drinking Water Program to discuss the situation. The situation was monitored and resolved and did not require KHA to be placed on a boil order.

There was further discussion of the docks. The Board thanked member Bob Gelles for his efforts in upgrading the docks. Bob suggested that KHA add 2 more “float” docks for an estimated cost of $1800. (Tabled).

Bill Hancock alerted the Board that we might need to hire another contractor to complete the roofing of the Poolwinkle in time for the 2006 pool season.

Pam Ambrose brought up the issue of ants and ant damage to the Bullwinkle. She suggested that we re-locate trash bins away from the building.

Pam Ambrose made the motion to accept the manager’s report and Scott Russell seconded. Motion passed.

Old Business

1. Budget. The Board discussed items in the proposed 2007 budget including the costs associated with continued improvement of docks and mosquito spraying. The Board also strategized on the presentation of the 2007 budget to the membership at the next annual meeting. It was decided to explain to the membership any and all changes in a letter, as well as during the oral presentation at the annual meeting.

The motion was made by Pam Ambrose to accept the Proposed 2007 Budget as amended. Phyllis Ginzler seconded and the motion passed.

2. Capital Improvements. Thanks to Scott Russell for the completion of the handicapped ramp at the Poolwinkle.

3. Policy Book. Norma Gelles requested the inclusion of the KHA Sexual Harassment Policy. The Board did not feel that this was necessary since it did not pertain to the membership. Rather, it was a state-mandated policy that is signed by KHA, Inc. employees. Norma Gelles also suggested that we review the Policy Book with KHA attorney.

New Business

1. Bill was asked to install a bike rack at the entrance to the beach area.

2. Bill was asked to provide a tennis posting board and sign-up sheets at the tennis courts.

3. Bill was asked to replace or repair the bulletin board at the beach area.

4. Bill was asked to spray lines for parking spaces at the dock parking lot.

5. Bill Hancock and Marilyn Salerno will make arrangements for the annual meeting in July.

6. A question was raised about KHA water system preparation for hurricane season. Bob Gelles offered to assist on developing a disaster recovery plan. Phyllis Ginzler suggested that such a plan also include KHA computer database and other office data. Bill will check on a propane generator for the water system.

7. Pam Ambrose informed the Board that she was contacted by the marketing manager of Lampron who proposed co-op pricing for KHA owners. The Board declined to respond to Lampron and, instead, leave it to homeowners to negotiate individually.

8. Phyllis Ginzler raised the issue of pool hours of operation and the responsibility for closing and locking the pool area each night. Neither Bill Hancock nor hired summer staff is available at 7:00 P.M. to close the pool. The responsibility will fall to volunteer members. It was suggested that Bill keep a schedule of volunteers.

9. Bill Hancock developed and distributed a Water Betterment Program in response to a request from the Board at the May meeting. Pam Ambrose complimented Bill on the plan. Discussion was deferred.

Motion to adjourn at 10:25 made by Scott Russell, seconded by Pam Ambrose.