In attendance were board members Sharon Schlittenhard, Larry Bohall, Wendell Phillips, and Kit Harma, 16 members present with 69 votes and there were 60 proxy votes for a total of 129 votes.  Three guests were present.

 President Schlittenhard called the meeting to order at 2:40 pm.  She then asked new members to introduce themselves.  (the Andersons )

 The meeting began with a program by a “Firewise” team consisting of Guemes Fire Chief Mike Stamper, with Jenny Hinderman, and Al Craney from the Skagit Conservation District.  We were told that Holiday Hideaway is a high risk area for wildfire and we should be diligent and Firewise.

 The minutes of the last meeting were read and approved.  The Treasurer’s report was given by Kit Harma (for Treasurer Bill Rainwater).  The year’s expenses were $4222.58 and income $5900.52.  The bank balance as of March 23 was $8869.03.

 OLD BUSINESS:  

1.   Nothing further has been done about updating the governance of the Association. 

2.  Deadman’s Cove trail work has been completed according to a report by Larry Bohall.  Much of the cost involved surveying the property.  Drew Norton cleared and built the trail to the beach and will maintain it.  A sign will be posted later in the year.

NEW BUSINESS.

1.   The Water Company report was given by Business Manager Cas Hancock.  Total income for the year was $111,201.  The year’s operating expenditures were $132, 452 leaving a net loss of $21,251. 

a.  Next year’s projected budget anticipates income of $123,436 and expenditures of $141,635 leaving a loss of $18,199.  No sales of water shares have occurred in the last year so that income has been removed from the budget.  There are 11 water shares available at a cost of $12,865 each.

b. Goals for the company are 1) to reduce leakage to 3% per year by 2014, and 2) to maintain usage of 342 gallons per household per day.   This will be the last year of replacing old connections which should help leakage problems.  Customers have been efficient in reducing water use and actual average use per household this year was 166 gallons per day.

c.  Because the company operates on a cash only basis, further improvements to the well and storage system cannot be made without selling water shares.

d. The company is vigilant against seawater intrusion and is dedicated to providing high quality drinking water.

 2.   Cooks Cove Improvements.  The boat launch area needs more gravel and possibly a new gate.  Volunteers are needed this summer to help remove logs and maintain accessibility to the beach area.  The board is also discussing improving the trail to Long Bay and volunteers may be needed there as well,

3.  Election of Board Members.  Kit Harma and Laura Saunders, whose terms expire are willing to continue on the board.  A motion was made to accept this list and elect the candidates by acclimation.  The motion passed.

 A question was asked about fireworks at Cook’s Cove on the 4th of July.  Fireworks are illegal.  There is little the association can do but residents should be aware. 

 The meeting was adjourned at 4:30 pm.

 submitted by Carol Harma, acting secretary