August 9, 2001 Minutes

KICA Board of Directors Meeting APPROVED
August 9, 2001
2:00 p.m. -Sandcastle

[FIRST SUBMITTED AUGUST 22, 2001]

Present: Peter Trees, President                             Joe Bunting, Staff
             Bill Wert, Vice President                         Tammy McAdory, Staff
             Thomas Hutchinson, Secretary                 Teresa Cooper, Staff
             Marty Yonas, Treasurer                           Daffney Barco, Staff
             Pat McKinney, Director                           Kay Narmour, Staff
             Buddy Darby, Director (late arrival at 2:15)
             Jon Weitz, Director (late arrival at 2:05)

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

1. Call to Order, Verify Quorum: Mr. Pete Trees called the meeting to order and verified quorum at 2:05 pm.

2. Approval of Minutes: Mr. Hutchinson moved for approval of May 17 and June 25 minutes. Mr. Wert seconded. This vote was carried unanimously by those in attendance.

3. Administrative Reports

A. Joe Bunting, General Manager

1. Reserve Audit Report - (Enclosure) Peter Miller of U.S. Inspect gave a report on the Reserve Audit. Joe Bunting explained that the report will now go the FAC to assist them in determining the minimum level of reserves needed. This is a long range plan action item. [Messrs. Darby and Weitz arrived during this presentation.]

3.A.2. Long Range Plan Report - (Enclosure) Staff and the committees sought approval of the Long Range Plan Phase 2 so that implementation of the action items may begin. Mr. Huthchinson moved to amend approval of Long Range Plan as follows: approve the priorities, measurable goals, and the action items and revise the mission and vision statements. Mr. McKinney seconded the motion. This vote was carried unanimously. Joe will bring revised mission and vision statements to the next meeting.

3.A.3. Encroachment @ 593 Oyster Rake - (Enclosure) A contractor building a home on 593 Oyster Rake placed the driveway partially on KICA property without authorization from KICA or ARB. The contractor was fined by the ARB and was formally requesting permission to encroach on KICA's property. Mr. Yonas moved approval of formal request. Mr. Darby seconded. This vote was carried unanimously.

3.A.4. LMAC Landscape Revitalization Phase II - The LMAC recommended approval to "sole source" Phase II by retaining the low bidder from Phase I. Mr. Darby moved approval to "sole source" Phase II and keep the present contractor. Mr. Hutchinson seconded. This motion passed as followed: In favor: Messrs. Wert, Hutchinson, Yonas, Darby, McKinney, Weitz. Opposed: Mr. Trees

3.A.5. Security Department Report - (Routine Report Enclosed)

1. Main Gate Status - A full presentation on the bids will be given at the next board meeting.

2. Rules Compliance Status - On September 24^th, a presentation will be given about this years program to provide better member services through rules compliance via more patrolling of the island and better follow-up on complaints. Both CCC & SSAC are currently looking at the rules handbook to see what changes should be made.

3.A.6. Annual Leadership Development & Recognition - Mr. Wayne Hyatt will be here on October 19, 2001 to speak on ways we can focus more on community building. All KICA volunteers will receive an invitation. Mr. McKinney suggested inviting the Board of Directors and key staff members from Seabrook Island, and Wild Dunes. Joe will invite these persons.

3.A.7. Recreation Department Report - Kay Narmour. The acoustical tile at the Sandcastle will be completed by the end of the week. Thirty two of the fifty spaces in the new auxiliary boat storage have been rented. Pool hours have been extended and are now from 7am to 10pm.

3.A.8. KICA Home Rental Survey Results - The Home Rental Survey has been completed. A summary of the results were printed in the August Digest and a copy of the full results are available for downloading from KICA's website.

3.A.9. Mail Vote - A mail vote of the Operations Committee to grandfather existing yoga instructors failed. It was noted that this would have been counter to existing recreation policies.

3.A.10. Admin Second Floor - (Enclosure) The Conservancy asked to finish the upstairs office space at 23 Beachwalker Drive. Mr. Yonas recommended approval of finishing the upstairs once the final numbers are developed, and to authorize the Operations Committee to approve it as long as it is within the parameters outlined in the paperwork. Mr. Wert seconded. This vote was carried unanimously.

3.A.11. Member Questions from June 25 - (Enclosure)

a. The board has implemented a new policy for answering member questions. Staff will respond to questions directly to the member, in writing, following the board meeting. A summary of the question and the response will then be given at the next regular board meeting.

b. Joe Bunting read the response to a question that was asked at the June 25, 2001 meeting about the plans for Bass Pond which was described as "dead." Bass Pond is not "dead," and is a great area for crabbing because it is so shallow. Because of the shallowness, the matter was referred to the LMAC for consideration.

3.B. Teresa Cooper, Controller

3.B.1. 2002 Budget Guidelines - Teresa Cooper (Enclosure) The financial controls manual states that six budgetary guidelines must be provided by early September. This information is being provided now because of the budget scheduling time line. The budgetary guidelines are as follows: 1.) FAC and staff recommend a 4 % increase over a year ending salaries and any additions or upgrades will be presented as additional funding requests in the 2002 budget. 2.) The maximum increase for any one employee would be between 0% and 8%. 3.) The percentage increase allowed over the most current year in projections for total expenses would also be 4%. 4.) Recommend the amount transferred to the reserves, the hundred thousand dollars rolled over from 2001 be rolled over to 2002 and any projected surplus be rolled forward to the 2002 operating budget. 5.) FAC and staff recommend that the board, by dual majority vote suspend adherence to the budget percentages as outlined in the standards manual. 6.) We are unaware at the present of any properties or tasks to be passed to a third party for 2002. Mr. Trees suggested making a motion to pass the proposal as outlined, seconded, and then a discussion and if they wish to modify it, do so after a motion is on the table. Mr. Hutchinson moved to accept the budget as outlined. Mr. Weitz seconded. Mr. Wert moved to amend the main motion to eliminate the 8% maximum and leaving it in the hands of the General Manager to control within the 4% overall. Mr. Hutchinson seconded. This vote carried unanimously. Mr. Trees moved to amend the main motion and to recommend holding the percentage increase and expenses to 0% rather than 4%. Mr. Wert seconded. Mr. Hutchinson pointed out that a 0% increase contradicted the 4% salary increase just approved. After further discussion, Mr. Trees revised his motion to a 4% overall salary increase, and a recommended 0% increase in the rest of the budget. Mr. Wert seconded this amendment. This motion carried as follows - in favor: Messrs. Trees, Wert, Hutchinson, Yonas, Darby & Weitz; opposed: Pat McKinney. Mr. Trees restated the revised main motion - guidelines for expense increase is 4% in salaries, with no maximum provided GM stays within overall 4%, recommended 0% for all other, rollover $100,000 from 2001 to 2002 reserves, suspend if necessary adherence to the budget percentages outlined in the standards manual. The revised main motion passed unanimously.

3.B.2. 2002 Budget Preparation Schedule - The schedule outline allows staff to present the first draft of the budget to the FAC on September 13, and a first draft to the board on September 24. The board will then submit any questions to the staff and FAC by October 1. The second draft will be generated and presented to the FAC on November 1, and then to the board on November 12. A meeting will be called at the end of November if there are any changes or revisions. Assessments will be mailed in January. Mr. Wert moved for acceptance of the schedule submitted. Mr. Hutchinson seconded. This vote was carried unanimously.

3.B.3 Second Quarter 2001 Financials & Variance Report - (Enclosure) Teresa Cooper briefly reviewed the financials. The board had no comments.

4. New Business

4.A. Pete Trees

4.A.1. Ratification of Executive Session Votes from June 25 - Votes taken in the Executive Session of June 25^th as outlined in agenda were ratified.

4.A.2. Salaried Employees - Mr. Trees informed that an anomaly in pay schedule timing for salaried employees was corrected. Mr. McKinney moved to ratify what was approved in the Executive Session from June 25. Mr. Hutchinson seconded. This vote was carried unanimously.

5. Committee Reports

5.A. Pat Wert

5.A.1. Community Services Committee - (Enclosure) Mrs. Wert described the Community Services Committee's different activities and gave information about the New Member Brunches and ideas for future events.

5.B. Steve Orban

5.B.1. Major Repair & Replacement Committee - Mr. Orban reviewed the remaining reserves budget for 2001. Mr. Hutchinson moved to approve the budget as presented. Mr. Yonas seconded. After further discussion, Mr. McKinney moved to amend the motion by taking the main gate costs out of the budget and approving the rest of the reserves budget. Mr. Hutchinson seconded. This vote was carried unanimously. Mr. Trees suggested treating this vote as the main motion.

6. Unfinished Business

6.A. Pete Trees

6.A.1. Election of Directors/Staggered Terms/Development Agreement (Enclosure) At the June 25 meeting, the board approved a modification to the timing of property owner director elections pending legal counsel review. After counsel's favorable opinion was received, staff informed the Town and KRA, in writing, of the change, which will impact their Development Agreement.

6.B.1. Procedures for Taking Minutes - At the June 25 meeting, a new procedure for taking minutes was discussed, pending legal review, which was positive. Mr. Wert moved to accept the new procedure for taking minutes. Mr. Yonas seconded. This vote was carried unanimously by those in attendance.

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

Submitted by:                                     Approved at the 9/24/01 Meeting
Daffney Barco                                    Thomas Hutchinson
August 22, 2001                                 Secretary

Member Comment Session
August 9, 2001

Diane Williams, 711 Glossy Ibis Lane - Ms. Williams wants an outline of what steps the board is taking to address what she perceives to be a conflict of interest. KICA attorney Trenholm Walker is also representing some property owners on the county tax cap issue.

Wendy Kulick, 38 Marsh Edge Lane - Mrs. Kulick would like the board to provide her with a copy of the total amount of money paid in employee overtime for the hours worked at the annual meeting or an explanation of why it could not be provided.