KICA Board of Directors Meeting     APPROVED

[FIRST SUBMITTED APRIL 23, 2001]

Present:  Pete Trees, President                           Joe Bunting, Staff

              Townsend Clarkson, Vice President     Teresa Cooper, Staff

              Tom Keating, Treasurer                  Jessica Schoeffield, Staff

              Pat McKinney, Director

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

Absent: Bill Wert, Secretary

            Jon Weitz, Director

            Buddy Darby, Director

1.    Call to Order - Verifying quorum, Mr. Trees called the meeting to order at 2:10 p.m..

2.    Approval of February 27, 2001 Minutes - (Previously delivered) Mr. Trees noted that a correction had been made by staff under item 3.A.10 (Member Comments) to reflect that there had been comments from the January 16, 2001 meeting. Mr. Clarkson moved approval of the revised minutes. Mr. Keating seconded the motion. This 2-3 vote was carried unanimously by those in attendance.

3.    Committee Reports - Mr. Trees explained that Leo Fishman, chair of the Governance Committee had asked to give his report at the beginning of the meeting due to a prior engagement.

  A.    Governance Committee                      Leo Fishman

Mr. Fishman summarized the report included in the board's packets. Two major issues the Governance Committee plans to address are the development of "plain language" covenants and research for the 2004 election, at which a majority of the board (4 property owner directors) will be elected at one time. The committee also recommended that it no longer be focused solely on Governance, but rather, be a "Strategic Planning Committee" that advises and assists other committees. He stated that it was increasingly difficult to get people interested in what the board should look like in 2008 when transition takes place.

Several board members expressed concern that a Strategic Planning Committee would create confusion over which committee would be responsible for what actions. They did not want to duplicate the functions of other committees. Mr. Trees asked that the discussion of a Strategic Planning Committee be brought up again after the annual meeting and when Mr. Wert was present. In the mean time, Mr. Trees informed the audience that the committee was proceeding on developing plain language covenants. Board consensus was that the Governance Committee should make a recommendation on streamlining transition in the 2004 election.

  B.    Security and Safety Advisory Committee      Rod James

Mr. James reported to the board that the Security and Safety Advisory Committee was researching construction of a new main gate with the objectives of reducing congestion, providing area for tractor-trailers to pull up to, providing up-to-date facilities and weather protection for the Security officers, and maintaining a modern look that is friendly and attractive. The architectural firm of Shope Reno Wharton was board approved in October 2000 for design and specifications were given to the firm in November 2000. Preliminary meetings with the ARB, KRA staff, KICA staff, and the SSAC were favorable.

Mr. James explained that the new gate would potentially be located 80 ft. towards Cougar Point Golf Course to maintain a safe distance from the intersection of Kiawah Island Parkway and Beachwalker Drive. It would have a covered kiosk in between the two lanes where a security officer could be sheltered from the weather and keep the right hand lane open. There would be parking for at least four cars and the building itself would be approximately 600 square feet. He showed transparencies of what the structure might look like. Mr. James stated that if the job could be put out for bid in June, work could start in the fall of 2001.

4.    Administrative Reports

  A.    Joe Bunting, General Manager

        1.    Status of Annual Meeting - Four candidates had filed for two seats on the board as of the close of nominations on March 29 (Avril Fenwick, Thomas Hutchinson, Barbara Manges, Marty Yonas). A Meet the Candidates Forum was scheduled for Sunday, April 29, from 12:30 to 2:30 p. m. at the Sandcastle. The Election issue of the Digest was mailed and the annual meeting packets would be mailed on April 20.

    4.A.2.    Earth Day Celebration Status Report - Liz Berens of KICA's Lakes Department reported to the board that all of Kiawah's major entities had contributed to the celebration. She described the events of the day, noting that advertisements had been posted in the Post and Courier, local television and radio stations, and various island newsletters and websites. Mayor Jim Piet had declared April 21 as Kiawah Island Earth Day.

   4.A.3.     Long Range Plan Status Report - Eleven items were completed since the last board meeting. The updates were posted to the website. Staff anticipated that Phase 2 of the Long Range Plan could start in June.

    4.A.4.    Rental Survey Status Report - The survey was mailed to the membership on April 4. The survey allows the membership to let KICA know their thoughts on short-term rentals of single-family homes (i.e., not villas, condos, and cottages).

    4.A.5.    Security Department Routine Report - (Enclosure) The past month was quiet. The Monday after the Masters Celebrity Golf Tournament occurred without incident.

    4.A.6.    Recreation Department Report

        4.A.6.a.    Routine Report - (Enclosure) Staff was preparing for the pool season. The pool opening and cookout will take place on May 28. At next month's meeting, staff plans to bring a fitness room expansion concept to the board.

        4.A.6.b.    Boat Storage Plan - (Enclosure) Mr. Clarkson and Mr. Keating had agreed on the details of a lease agreement, which was enclosed. Joe asked for approval of the agreement and the funding. There were 92 people on the waiting list for boat storage. KRA offered to allow KICA to use the land, but they will need the property back to expand their water treatment facility. They cannot anticipate when they will need this property, but imagine it won't be for several years. Mr. Trees moved approval of the lease agreement. Mr. Keating seconded the motion. This 3-3 vote passed as follows: in favor - Mr. Trees, Mr. Keating; abstained - Mr. McKinney, Mr. Clarkson. Joe asked if the vote included approval of the funding for the boat storage plan. Mr. Trees stated that the funding was included in the vote just taken.

        4.A.6.c.    Pool Fees - (Enclosure) Members of KICA's Internet Mail List have expressed concerns regarding the fee structure for pool usage. Members have commented that renters should not be allowed to use the pool, joint members shouldn't have to pay for pool usage, family members should have free admittance, and fees are too high in general.

Emmy Lou Anderson, chair of the Recreation Advisory Committee, addressed the above comments. Renters have never been allowed to use the pool at the Sandcastle. Members' dependent children have never had to pay a fee. Adult children and their families do have to pay and have always had to pay. Developed properties pay a higher assessment for pool usage than undeveloped properties. People tend to confuse the entire KICA assessment with the actual amount that is paid to the Recreation Center. About $95 to $140 of their annual assessments goes to the pool. That residents use the pool more than non-residents is a misconception. Last year, non-residents and their guests comprised the majority of the pool's visitors. Guest fees have been charged for years and have gone up only $2.54 while the amenities have increased 100-fold. Other pools on island charge between $5 - $15 per day. The cost incurred by KICA to operate the pool for this year is about $70, 000 - $75,000. It is the only pool on the island that has lifeguards on duty. Prior to 1990, joint members had to pay the entire assessment (now approximately $800) to use the pool. The referendum in 1990 allowed a user fee of $30 per month or $60 per season instead of requiring payment of the full assessment. This user fee had not changed in 10 years. The RAC recommended that the amounts remain unchanged for this pool season.

Mr. Trees stated that the board would vote on the fees at its next meeting. Mr. McKinney suggested that a 3" x 5" card be developed for handout at pool entry points. The card, signed by Joe, could give some background and the rationale for the pool fees so that Sandcastle staff could put in people's hands rather than attempt to explain the reasoning to an unhappy member or guest.

    4.A.7.    Summary of Mail Votes - (Enclosure) Four mail votes were taken during the past month and all passed unanimously.

    4.A.8.    Member Comments from February 27, 2001 meeting - Joe furnished answers to the member questions that were asked at the last board meeting. [A detailed account of the answers to Member Comments is available at the KICA Administration Offices.]

  4.B.    Teresa Cooper, Controller

    4.B.1.    Status of Financial Audit and Tax Returns - The audit was completed and awaiting a final review and the tax returns were in progress.

    4.B.2.    Financial Statements for January and February - (Enclosure) Teresa summarized the financial statements for the months of January and February.

    4.B.3.    Request for Steiner Turf Tractor - (Enclosure) The Landscape Department was in need of a new turf tractor, at a cost of $21,924.55, to be funded by the department's operations budget and the sale of obsolete equipment. Mr. Keating moved approval of the request for a new turf tractor. Mr. McKinney seconded the motion. This 2-3 vote was carried unanimously by those in attendance.

5.    New Business

    1.    Ratification of Votes taken in February 27 Executive Session - New members were approved to the Community Services Committee as follows: Faith Dodge, Rod James, Fred Peterson, & Marty Yonas. Mr. Clarkson moved approval of the new members to the Community Services Committee. Mr. Keating seconded the motion. This 2-3 vote was carried unanimously by those in attendance.

6.    Other Unfinished Business

  A.    Pete Trees

    6.A.1.    Status Report on Board's 3-19-01 Working Session with NOAC on 15% Tax Cap Issue - Mr. Trees gave a brief summary of the meeting held with the Nonresident Owners Action Committee (NOAC). A complete summary of the meeting is available on the KICA website and at the Administration Offices.

    6.A.2.    Short-Term Rental Agreement - (Enclosure) Carol Fishman, chair of the Covenant Compliance Committee, gave an update on the agreement. The five major rental agencies assisted in the development of the agreement and have seen the final draft with no changes made. Many of the agencies have already begun to implement some of the procedures set forth in the agreement. Mr. Trees suggested that the resolution be changed under bullet point number one, replacing "President" with "Operations Committee." Mrs. Fishman stated that the next step was to adapt the agreement for use with individual property owners who rent without the use of an agency. Mr. McKinney moved approval of the Short-Term Rental Agreement. Mr. Keating seconded the motion. This 2-3 vote was carried unanimously by those in attendance.

7.    Other New Business - There was no other new business to conduct.

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

Submitted by:                                             Approved at the 5/17/01 Meeting
Jessica Schoeffield                                     William G. Wert
April 23, 2001                                            Secretary

Wendy Kulick, 38 Marsh Edge Lane - Mrs. Kulick asked if the welcome center at the Andell property was a "done deal." Mr. Trees responded that it is not definite. Mrs. Kulick asked if KICA had consulted with the Resort on the tractor-trailer pull-up area at the proposed main gate, since it would be adjacent to Cougar Point Golf Course. She then asked Joe to help her find where in the January 16, 2001 board meeting minutes was it discussed to use absentee ballots.

Anne-Lee Verville, 69 New Settlement - Ms. Verville asked who was on the committee tasked with formulating questions for the Meet the Candidates Forum. Mr. Trees replied that the panel includes Lide Glenn (resident), Steve Bennett (new resident), Frank Eason (non-resident).

Carol Fishman, 247 Saltgrass Court - Mrs. Fishman asked if there could be a weekly pool usage fee for those who visit for a short period of time instead of charging for a whole month.

Gerhard Bohn, 182 Glen Abbey - Mr. Bohn suggested that the board should increase the Security force on the island to allow for more rule enforcement. He also suggested that the Vanderhorst Gate should mark the residential part of the island. Mr. Trees suggested that Mr. Bohn speak with Carol Fishman.