The meeting was called to order at 10:05 a.m. by President Tony Urso.

All Directors were present. A quorum was established. Barbara Murray from Keystone Property Management Group was also present.

Tony Urso gave an update on what has been happening in the community over the last six months.

The Board’s goal is to keep the Association fees at $185.00 per month for 2008. Tony stated the Board feels they are getting their moneys worth from the current vendors.

Tony thanked the volunteers for the work they have done and calculated that approximately $25,000 was saved over the past year. Without the volunteers, it would have cost each homeowner $235.00 more.

Tony stated that the most important Board member is Buzz Errickson. Buzz checks the lawns for irrigation issues and takes care of operational issues.

Tony reported that oak trees were planted around the Ocracoke Lake and sprinkler heads were added to water these trees.

Three (3) bids were received for painting the gate house and it was decided to use Robert Steele at a cost of $3,900.00 which will be paid from the Reserve Fund.

The tennis court net was replaced at a cost of $115.00.

Buzz Errickson reported that the irrigation controller was replaced after being struck by lightning and then had to be replaced again after carpenter ants got in and fried the controller.

Painting specifications were finalized by the Board. The two (2) most important points are that the color must match the approved colors and must use minimum standard paint set by the Architectural Committee.

The Board is working on a home rental policy that the Board must approve the rental. The minimum rental term will most likely six (6) months. Renters will receive copies of the Bylaws and Rules & Regulations.

The Board has agreed on uniform "For Sale" signs which will be purchased and provided to owners who have their home for sale. The signs are 12" x 12" and are while with black letters. The Board will also purchase a sand carved sign for the entry to Kenwood Village with a scalloped top that states "Properties Available". The cost of this sign is $271.00.

Tony Urso reported that Kim Taylor has resigned from the Board and they are looking for someone to take her place.

Tony reported that a list is posted at the pool with names of anyone who is 90 days past due in Association fees. On the 31^st day after payment is due late fees and interest begin to accrue.

Bob Neel gave an overview of the financial status. He stated that the financial status is good through the first five (5) months of 2007.

Buzz Errickson stated that parts are available to make mailboxes more study. They can be purchased at a cost of $20.00 and Buzz will provide the white paint.

Tom Hendricks spoke about Gulfstream Landscape. Marty Sanderson, owner of Gulfstream Landscape, has been on the property from the beginning and does a good job. They do make mistakes on occasion but overall do a good job. Tom asked that everyone please have patience with them. If you have an issue you should call Barbara Murray at Keystone Property Management Group at 569-7928 and she will get in touch with Marty at Gulfstream.

It was asked if a trash can could be purchased to put by the tennis courts and the Board agreed to purchase one.

The Board advised that they will take down the fans at the pool area as they are not used.

Tom Hendricks stated he would like to see the community pull together more and if they know of any neighbor who may need any type of assistance to let the Board know.

The meeting was adjourned at 10:57 a.m.