Kiawah Island Community Association, Inc.

May 11th, 2000           Approved

Present:      Peter Trees, President                                   Joe Bunting, Staff
                  Townsend Clarkson, Vice President              Mike DeFalco, Staff
                  Bill Wert, Secretary                                       Jessica Schoeffield, Staff
                  Tom Keating, Treasurer
                  Pat McKinney, Director
                  Buddy Darby, Director
                  Jon Weitz, Director

Others in attendance are listed on the meeting attendance sign-in.

  1. Call to Order - Peter Trees called the meeting to order at 2:00 p. m., having verified quorum. He introduced Mr. Jon Weitz of KIR, who is taking the board seat left vacant by Ms. Permar.
  2. Approval of minutes of April 4, 2000 - Mr. Wert moved approval of these minutes. Mr. McKinney seconded the motion. This 2-3 vote was carried unanimously by those in attendance.
  3. Administrative Reports
    A.    Joe Bunting, General Manager 
            1. Open-Loop Geothermal Systems - (Enclosure) Joe asked the board if they wished to grandfather the existing systems on the property. Such heating and cooling systems use well water and then release it back into the environment. The board and the ARB recently banned open-loop systems from the island. The Covenant Compliance Committee recommended that the board accept the grandfathering of existing systems with two provisions: staff should be allowed to view any connections of open-loop systems to KICA's drainage system; KICA should have the right to require removal of open-loop systems if it is determined in the future that such systems diminish or destroy member enjoyment of other properties in the neighborhood. Board members discussed concerns about the number of open-loop systems already on the island and how property owners would be notified of the grandfathering. Joe replied that approximately ten or less systems are in place on the island, and that letters would be sent to KICA members who have these systems. Mr. McKinney moved the grandfathering of existing open-loop geothermal systems with the provisions as noted. Mr. Clarkson seconded the motion. This 2-3 vote was carried unanimously by those in attendance.

        3.A.2.Y2K Open Forum Schedule - Open forums are scheduled at the Sandcastle for Friday, May 26, Friday, June 30, Friday, September 1, and Wednesday, November 22. They are scheduled near holidays so that more non-residents will be able to attend. All meetings will be held at 4:00 p. m.. The May 26 topic will be KICA recreation programs and fee structures. Topics for the remaining three open forums will be announced in advance. Mr. Wert suggested that the board wait to schedule the three later forums until after they see how many people attend the May 26 meeting. Mr. Trees agreed with Mr. Wert, and pointed out that he wants to make certain that the open forums are advertised well in advance and that the topics be flexible.

    3.A.3 Admin. Office - Second Floor Completion Proposal - (Enclosure) Joe pointed out to the board that the second floor of the KICA Administration office has not been finished. He asked the board if they would like to consider finishing the upstairs. He noted that the Natural Habitat Conservancy (KINHC) has expressed interest in obtaining two upstairs offices as early as this September. Mr. Clarkson asked if KICA will eventually need all of the upstairs space and if KICA needs any of the space now. Joe answered that he believes KICA will need all of the space as it expands, but that it currently does not need the space. Mr. Keating asked if the Town, who leases KICA it's office space, would waive the rent for the Conservancy. Joe offered to find out if the Town would consider doing so. Mr. Trees commented that the ARB functions will not be turned over to KICA in the near future. If the Conservancy could get a free ride from the Town, the upstairs could begin to get finished. Mr. Trees believes that KICA will need all of the upstairs eventually. He asked Jack Pulleyn if KINHC could have the office space for free. Mr. Pulleyn said he would look into this possibility. Mr. Trees asked for a status report at the June 20 board meeting.

    3.A.4 5-year Projection and Long Range Plan of KICA's Finances - The Long Range Planning Committee had asked the Finance Advisory Committee for a 5-year plan. Joe asked the board to vote on how to proceed. Mr. Keating stated that a 5-year financial plan should be developed and studied each year. Board consensus was that the Finance Advisory Committee proceed with the request to develop a 5-year plan.

    3.A.5 Annual Meeting Month Change from March to February - (Enclosure) Joe asked the board to consider changing the date of the annual meeting so that a room could be reserved at the Resort. Mr. Wert commented that the Town's election is held at the same time and expressed concern that property owners would get the two confused. The board discussed possible cut-off dates for candidacy. The board agreed that changing the date is a desirable thing to do, but that what date it should be needs more thought. Mr. Wert asked to defer the vote until the board can work with KICA staff on a firm schedule. Mr. McKinney asked Mr. Weitz to find out what the Resort's latest date could be to reserve room for the annual meeting and not lose money from paying visitors.

    3.A6 .Request for Encroachment Agreement, 154 Flyway Drive - (Enclosure) Joe reported that the owner of 154 Flyway Drive wants to build a driveway to his house, but his property supports specimen trees that are in the way of his plans. He wants board permission to encroach upon KICA common property. Mr. McKinney noted that the owner's plans put the driveway almost entirely on KICA property. He stated his opinion that the driveway could be constructed so that it stays on the owner's property and does not remove any major trees. Mr. Keating agreed and asked for another drawing from the owner. Mr. Trees objected to expanding the owner's property by granting an encroachment agreement. He stated that the driveway can be designed around the trees and remain within his own property lines. Mr. Darby moved approval of the request. Mr. Clarkson seconded the motion. This 2-3 vote failed as follows: in favor­Mr. Darby, Mr. Clarkson; opposed­Mr. Trees, Mr. Keating, Mr. Wert; abstained per weighted vote­Mr. McKinney, Mr. Weitz.

    3.A.7 Security Report - (Enclosure) Joe stated that it has been a quiet month for Security, but that the busy season is rapidly approaching. There were no questions or comments regarding the security report.

    3.A.8 Status of Roundabout Study - Joe informed the board that on April 26, the Mayor of Seabrook Island sent a letter to Buddy Darby which stated that Seabrook is opposed to changing the intersection of Betsy Kerrison and Kiawah Island Parkway. However, if the change is absolutely necessary, their preference is the proposed roundabout.

    3.A.9.Town's Approval of 5th Amendment to Development Agreement - Joe mentioned that the Town of Kiawah recently approved the 5th Amendment to the Development Agreement. There were no questions or comments from the board.

Mr. McKinney asked for clarification regarding the earlier request for an encroachment agreement at 154 Flyway. He was uncertain as to whether the board would deny the request outright, or if it would consider the request if a compromise could be reached. After discussion, the board reached the consensus that a compromise involving a new drawing of the driveway could be considered in the future. Joe will follow up.

    3.A.10.Hotel Drainage Status Report - Joe stated that KICA has hired an engineer to work with the Resort's engineer on the hotel site drainage. KICA is still seeking a memo of understanding for the project.

    3.A.11.A Recreation Department Report - (Enclosure) The grand opening for the new pool at the Sandcastle will be held on Memorial Day, May 29. Joe also mentioned that the Recreation Center is already above average on bookings for private parties. He then introduced Dick Sayers, who had requested to speak to the board.

    3.A.11. B. Request to Approve Sale of Pool Passes in Bulk via "Block Tickets" - (Enclosure) Mr. Sayers reported that there was a 50% increase on the price of guest fees for the Rec. Center from $2 to $5. He and the Rec. Center staff have received many complaints regarding this increase. He proposed that the board approve a $3 guest fee along with a policy to sell blocks of 7 tickets for $15. Mr. Keating inquired about the number of complaints. Mr. Sayers estimated 28 complaint calls and walk-ins. Mr. Keating reminded the board that the increase was voted on by a referendum, which passed. In the past, the board has been criticized for changing it's mind. His concern was that the referendum specifically stated that the guest fee would be $5, and changing that amount would leave the board open to more criticism. Further, if the fee was reduced, the net loss would be about $85,000. He suggested that the board consult the Finance Advisory Committee on this matter. His opinion was that a block of 7 tickets should be available for a price of $25 ($3.57/guest) and that the board should refrain from voting until the Finance Advisory Committee responds. Mr. Sayers indicated that the number of tickets sold will go down because people will not pay the high amount. Mr. Wert added that people with large families are at a disadvantage in having to pay for guests to use the pool. He noted that an extra $3 to the current guest fee adds up quickly. Mr. Wert agreed that the Finance Advisory Committee should look at the fee again. Mr. Mac McCannon, FAC chair, addressed the board and explained that the $5 fee was derived as the last thing to meet the budget. Mr. Keating also requested that the term "immediate family" be redefined by the Finance Advisory Committee with help from the Recreation Advisory Committee. Mr. Trees wants Mr. Sayers, Mr. McCannon, and the Finance Advisory Committee to review the matter, preferably before the pool opens. Mr. Keating pointed out that the membership already has a fixed fee for the guests, so it is not critical to have a resolution by Memorial Day, but it is desirable. Mr. Keating moved for approval of a block of 7 tickets for $25. Mr. Clarkson seconded the motion. This 2-3 vote was carried unanimously by those in attendance.

Non-Agenda Item - Mr. Darby inquired about the Rhett's Bluff River Landing and asked why it is unavailable for member usage. Joe explained that there was damage done to the floating docks during Hurricane Floyd. He stated that two ten-foot sections were left unusable and had to be removed. The sections will be replaced in about 8 weeks' time. Mr. Weitz asked what tours are currently leaving from Rhett's Bluff. Joe replied that canoe and kayak tours sponsored by the KICA Sandcastle are using the dock. Mr. Keating noted that the Sandcastle is providing more member services to broaden people's sense of community.

Non-Agenda Item - Joe stated that he would like to address another non-agenda item regarding the status of Major Repair and Replacement. A significant amount of re-paving is being done. Streets that have been completed include Airy Hall, Clay Hall, Fletcher Hall, Old Dock Road, Cordgrass, Saltgrass, Sea Myrtle, Sea Marsh Drive. Flyway Drive and Surfsong Road are the only two which remain to be paved. Paving is expected to be completed by May19.

3.A.12 Mail Vote Joe notified the board that this item could be removed from the agenda because the Operations Committee member who had not yet voted as of 5/3/00 voted the day of the board meeting.

3.A.13 Responses to Member Questions from 4/4/00 Meeting - (Enclosure) In response to David Warner's question of how members of the Architectural Review Board are appointed and how the ARB is funded, Joe explained that the Developer (KRA) appoints and fully funds the ARB at this time. The Developer's right to carry out architectural control is outlined in the covenants. The Developer will continue to appoint members to the ARB and fund it until it assigns the rights to the Association. A legal opinion on this question was attached for the board's perusal.

David Warner and Dr. Arch Templeton had inquired about the Vanderhorst gate entry policy for Resort guests and renters. Joe stated that the policy is defined in the Association's "Gate Access Policy and Procedures for Vehicle Access and Passes," which was first adopted by the board in1989 and revised in 1997. Copies are available at the KICA offices. Both Resort guests and renters, with restrictions, can access the second gate in vehicles. Individuals with golf tee-times or meal reservations also have access, as well as people renting behind the second gate, pedestrians, and cyclists.

3.B.    Mike DeFalco, Controller

    3.B.1. March Financial Results with First Quarter Variance Report - (Previously delivered on April 17) Mike reviewed the summary of the financial statements for March. Both Mike and Mr. Trees noted that KICA is under budget because of high employee turnover. There are several positions that remain to be filled.

    3.B.2 Preliminary April Financials - (Handout) Mike stated that the preliminary closeout for April had not changed much from the first quarter. The bottom line for the general fund shows about $55,000 in surplus.

    3.B.3 Additional Funding Request - (Enclosure) The Governance Committee put in a request for additional $47,000 to cover the expense of the covenant legal review with Wayne Hyatt. Mike explained that he, Tammy McAdory, Joe Bunting, and Leo Fishman, Governance Committee chair, had met to discuss this matter. The Governance Committee and the Finance Advisory Committee also met to attempt to resolve the issue. They propose that $33,000 be taken from the Board Operating Contingency. The remaining $14,000 should be taken from the 2000 Operating Surplus. Mr. Trees commented that he and the board are pleased with the efforts of the Governance Committee, especially since it is such a new committee. He stated that some people may feel uncomfortable in allowing $47,000 to the Governance Committee, but that the board will be under no obligation to spend this much money for the committee every year. Mr. Clarkson moved approval of the additional funding request, per the FAC recommendation, in the amount of $47,000, to be funded. The motion was seconded by Mr. Wert. This vote was carried unanimously by those in attendance.

    3.B.4 Pool Expansion Project Status - (Enclosure) The pool project is approximately $26,000 under the amount which was approved via referendum by the membership. Vagn Andersen believes that another $10,000 to $15,000 will be spent to put finishing touches on the pool, which still keeps the project under budget.

4. Committee Reports - This is a new agenda item. No committee reports were scheduled for May. Committees will begin reporting at the June 20 board meeting. Mr. Trees noted that the chairs of six of the nine committees were present, as were representatives from the remaining three committees. Mr. Trees thanked them for attending.

5. Other Unfinished Business - None.

6. Other New Business

    A  Pete Trees

  1. Golf Cart Restriction Policy - (Enclosure) This item was first brought up at the October 12, 1999 board meeting by Rod James and was tabled at that time. Mr. Trees asked the board if they should pass the golf cart restriction policy and grandfather those carts already on the island. Mr. McKinney stated that prior policy already restricted the usage of golf carts. Mr. James responded by explaining that carts are not being restricted now, since they were not specifically mentioned in the covenants. Joe Bunting added that if the board decided to allow golf carts, they must meet state vehicular standards and be registered like other motor vehicles. Mr. James stated that the membership is buying carts at a rate of two per month. Mr. Wert made a motion to add the words "golf carts" and "ATV's" to the rules and regulations handbook. Mr. Keating seconded the motion. This 2-3 vote passed as follows: in favor­Mr. Wert, Mr. Keating, Mr. Trees, Mr. Clarkson; opposed­Mr. Darby; abstained per weighted vote­Mr. McKinney, Mr. Weitz.
  2. Proposed Changes to Standards Manual regarding Board Liaisons to Committees- (Enclosure) Mr. Trees explained that the proposed change would allow the board to reduce the number of liaisons to the committees. The Development Agreement states that there will be two liaisons to each committee; one to be named by the developer directors, and one to be named by the property owner directors. The proposed change states that one or more board member liaison will be assigned, annually and by majority vote, by the board to each committee. Mr. Clarkson suggested the addition of the words "super majority" (two property owner directors and two developer directors) to the last sentence of the proposal. Mr. Darby suggested tabling the issue so that the developer directors could further review the proposal. The board did not object to tabling the approval of the proposed changes to the Standards Manual.
  3. Approval of Committee Charters (see Executive Session for approval of members)
a.    Human Resources - (Enclosure) A brief summary was read. Mr. Clarkson moved acceptance of the charter. Mr. Keating seconded the motion. This 2-3 vote passed unanimously by those in attendance.

b.    Communications - (Enclosure) A brief summary was read. Mr. McKinney moved acceptance of the charter. Mr. Wert seconded the motion. This 2-3 vote passed unanimously by those in attendance.

c.    Recreation Center Committee - (Enclosure) Mr. Trees stated that it was proposed that this committee be changed from an operating committee to an advisory committee. It was also recommended that the committee focus on recreation in general rather than on the Recreation Center, and that the committee's name reflect that. The Recreation Advisory Committee (RAC) was the proposed name. A brief summary was read. Mr. Clarkson inquired about the required non-resident member for the committee. He asked what would happen if they could not find a non-resident to serve on the committee, or if there were only six people available to serve. Would the committee not function? He recommended that the charter be re-worded to state that every effort should be made to find seven committee members, one of which being a non-resident, but that the committee could still function if the suggested number of members were not available. Mr. Keating moved acceptance of the charter. Mr. Clarkson seconded the motion. This 2-3 vote passed, with the stipulation of aforementioned change, unanimously by those in attendance. Mr. Trees stated that Dick Sayers, chair of the Recreation Center Committee, was stepping down. He thanked Mr. Sayers for his fine work with the Recreation Center.

7.    Adjournment - With no further business to conduct, the meeting was adjourned on motion duly made and seconded.

Submitted by:
Jessica Schoeffield                          William G. Wert

May 22, 2000                                 Secretary



























Member Comment Session

May 11, 2000

Robert Heile, 1215 Flying Squirrel Ct. - Mr. Heile stated that he is a non-resident, joint owner of his property. He received the mailing regarding the new charges for the Recreation Center. He commented that he feels like a second-class citizen. Non-residents are being charged more than residents for the same services. He stated that, not only is this practice unfair, but it is confusing as well. He is unsure of what he can and cannot do as a secondary owner. Mr. Trees replied that the board's practice is to thoroughly discuss and consider the member's comments and respond to them at the next meeting.

Emmy Lou Anderson, 207 Sea Marsh Dr. - Mrs. Anderson announced that a Red Cross Blood Drive will be held in council chambers at the Town of Kiawah between the hours of 11 a. m. and 4 p. m. on May 18, 2000.

Laura Pulleyn, 136 Augusta National - Mrs. Pulleyn commended the board for adding a representative from the Resort. She welcomed Mr. Weitz to the board.





Executive Session

Pete Trees

  1. Communications Advisory Committee Members - (Enclosure) Mr. Trees noted that there is currently no chair for this committee. He stated that the board is pleased with the new layout for the Digest. Ed Wax and Pat Manna were the proposed new members to this committee. Mr. Clarkson moved approval of Mr. Wax and Mr. Manna to the committee. Mr. McKinney seconded the motion. This vote was carried unanimously by those in attendance.
  2. Human Resources Committee - (Enclosure) Mr. Trees announced that the proposed new members to this committee are Buck Walters and Ralph Edwards. Mr. Darby moved approval of Mr. Walters and Mr. Edwards to the committee. Mr. Wert seconded the motion. This vote was carried unanimously by those in attendance.
  3. Recreation Center Advisory Committee - (Enclosure) Mr. Trees stated that the proposed chair to this committee is Emmy Lou Anderson. Chet Barrand and Sandy Speno are the proposed new members. Mr. Wert moved approval of Ms. Anderson as chair and Mr. Barrand and Ms. Speno as members to the committee. Mr. Keating seconded the motion. This vote was carried unanimously by those in attendance.



Submitted by: Approved at 6/20/00 Meeting





Jessica Schoeffield William G. Wert

May 26, 2000 Secretary