[FIRST SUBMITTED SEPTEMBER 25, 2002]

Present: Bill Wert, President Joe Bunting, Staff

Marty Yonas, Vice President Tammy McAdory, Staff

Fred Peterson, Secretary/Treasurer Teresa Cooper, Staff

Tom Hutchinson, Director Carrie Cross, Staff

Pat McKinney, Director (late arrival) Kay Narmour, Staff

Buddy Darby, Director (late arrival)

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

Absent: Jon Weitz, Director

1. Call to Order, Verify Quorum - Mr. Wert called the meeting to order at 2:02 p.m. with a quorum of four directors by Messrs. Wert, Yonas, Peterson, and Hutchinson.

2. Approval of Minutes, August 12, 2002 (previously distributed) - Mr. Hutchinson moved approval of the August 12 minutes. Mr. Yonas seconded the motion. This vote was carried unanimously by those in attendance.

3. Administrative Reports

A. Joe Bunting, General Manager

1. Survey Report (enclosure) – Staff was very pleased with the return rate (41%), as well as with the very positive ratings. The CAC will be provided with the Summary Memo from which they can prepare a report for publication. Verbatim reports are now being compiled; the board will have them soon. The board approved posting the report on the KICA website when all calculations have been double-checked for accuracy. Joe asked whether board members had cross-tab categories they’d like to see. Mr. Hutchinson requested a report on the number of residents versus non-residents requesting information via U.S. Mail.

[Mr. McKinney arrived at this point (2:09 p.m.).]

3.A.2.Focus Group/ Opinion Poll Report (enclosure) – The CAC has been provided with the Executive Summary from which they can prepare a report for publication. The board approved posting of the summary to the KICA website with clarifications.

3.A.3. LRP Status Report of Action Items and Goals (enclosure) – LRP Phase II is winding down. Staff anticipates it will be concluded in December. Staff will incorporate any open items into the new plan, Phase III, which should be brought before the board at the December meeting (if one is held).

3.A.4.Approval of Resolutions (enclosure) – (a)The Emergency Pond Closure; (b)Vice President to Serve as Board Liaison to Community Services Committee; and (c) Overlap of Incoming and Outgoing Treasurer policies were approved at the August meeting in the Executive Session. Approval is needed only for the actual resolutions, and to ratify the votes taken in Executive Session (items b and c). Mr. Hutchinson moved to approve all three resolutions. Mr. McKinney seconded the motion. This vote was carried unanimously by those in attendance.

3.A.5.Security Department Report

a. Routine Report (enclosure) – August 1 – September 1, 2002

b. Covenant Violations – Full Season Report (enclosure) – April 1 – September 3, 2002. Covenant violations are down 34% over the same period last year, with all categories showing lower numbers of citations.

[Mr. Darby arrived at this point (2:29 p.m.).]

3.A.6.Mail Votes – No mail votes were taken since the last meeting on August 12.

3.A.7 Actions Taken during Executive Session of August 12 – A new member was appointed to the Covenant Compliance Committee. Mr. Yonas moved to ratify the votes from the Executive Session of August 12. Mr. Hutchinson seconded the motion. This vote was carried unanimously by those in attendance.

3.A.8 Member Questions from August 12 Meeting (enclosure) – Joe reviewed responses.

3.B. Teresa Cooper, Controller

3.B.1.Recommendation of Method for Minimum Fund Balance for MRR (enclosure) - The FAC will determine a funding method, minimum fund balance, and annual contribution to Reserve fund, if any, as part of the 2003 Budget process, and annually thereafter. The board consensus supports this approach.

3.B.2 Recommendation for Change in Investment Strategy (enclosure) – Introduced to the board were Pete Anderson and John Wilson of the FAC for discussion on the KICA investment policy. After some discussion, it was decided that the FAC would have the ability to change KICA’s investments when needed, with the contingency that the board would review a quarterly notification of the investment summary that listed any changes made. Mr. McKinney moved to accept this recommendation with the above changes. Mr. Hutchinson seconded the motion. This vote was carried unanimously by those in attendance. Mr. Wert asked that these changes be reflected in the new FAC charter to be approved at the next meeting.

3.B.3 Boat Storage Fee, Request for Change (enclosure) – After some discussion, it was decided that the fee would be $400 for an RV and $550 for any other space. Mr. Yonas moved to accept the above proposal. Mr. Hutchinson seconded the motion. This vote was carried unanimously by those in attendance.

4. New Business

4.A Security Standards (enclosure) – Mr. Wert wrote a letter to the Mayor, which explains that we have increased customer service, but that it and great security are not mutually exclusive, and we do in fact have both.

4.B. Proposed Covenant Amendment – Funding Sandcastle by MRR Funds (enclosure, but an updated version was distributed at the meeting and is enclosed as Exhibit A.) – Approval of first draft in concept so that CAC can put information in the Digest. We do need a Covenant change to forgive the debt to the Sandcastle. Mr. Yonas suggests that we overkill communication for clarity sake. The overall board consensus supported for the plan.

5. Unfinished Business, Bill Wert –

A. Governance and Planning Committee Focus – Mr. Yonas explained that Article VI was written badly, which is the purpose of the GPC re-writing the Article. Too many changes at once to the Covenants will not be accepted by the membership based on focus group input, therefore changing the GPC’s focus and will hold off on continuing the re-writing of Article VI. GPC will come back to the Board with other ideas of how to bring the Covenants up to date, at a later time.

B. Kiawah Island Portal Website (enclosed as Exhibit B, distributed at the meeting) - Ginny Orban and Kelly Bragg were introduced to inform the board about the portal website. Total cost would be $24,000 divided equally by the four main entities: KICA, the Town, KINHC, and KPOG ($6,000 per entity). The main page would contain general information about the Island, such as weather and non-controversial articles, and there would be a link to each entity’s site. After some discussion it was decided that the board would support the portal site for Phase I on a trial basis for not more than one year. Mr. Darby would like to have KIR and KRA also included and truly make in all-inclusive. Response was that it might be added in Phase II, but for now this site is only a non-commercial site. A vote was taken on Phase I for a trial of period of not more than one year. Messrs. Wert, Yonas, Peterson and Hutchinson were in favor. Messrs. Darby and McKinney opposed. Mr. Weitz was absent.

Non-agenda: Mr. Wert reminded the board that the next Executive Council Meeting is October 14, 2002.

6. Adjournment - Having no further business to conduct, the meeting was adjourned on motion duly made and seconded at 3:50 p.m.

Submitted by: Approved at November 4, 2002 meeting

Carrie Cross Fred Peterson

September 25, 2002 Secretary

Member Comment Session UNAPPROVED

September 23, 2002

Tom Kulick, 38 Marsh Edge Lane – Mr. Kulick believes that it is very important that the bridges be looked at on a regular basis and was glad to know that a structural engineer was hired. His comment from last meeting regarding the fire department’s rigid regulations on bridges was just to make sure that their equipment/trucks pass easily across them. He requested to have John’s Island Fire Department notified of any weight restrictions made by the engineer for the afore mentioned reason. He will refine his insurance question from the August meeting for the November meeting.

Pete Trees, 10 Bufflehead Drive – Mr. Trees was impressed with the board’s congeniality beyond the previous administrations. He would like for the board to share some information with the members about the Sandcastle. First, that it has been in financial trouble for some time. Compared to projections three years ago, expenses were up considerably and revenues were about at par. Mr. Trees also believes that it is important to use the MRR fund to share expenses of the Sandcastle. He’d like the board to share the fact that efforts have been massive to reduce the high expenses of the Sandcastle, as well as the importance of the Sandcastle to the members. An effort should be made to convince the members that it is to their advantage to upkeep the entity. The viability of MRR fund should be stressed. He believes the board should let the members know that the financial troubles seen at the Sandcastle are not replicated throughout the Community Association. Finally, if it is necessary to raise the cap on the general assessment, he encourages the board to raise it sooner than later. He suggests that the board doesn’t wait until the MRR fund is exhausted.

Wendy Kulick, 38 Marsh Edge Lane – She appreciates the board putting cat’s eyes on the roads, and she approves of today’s vote to give the Portal Website a trial run. Ms. Kulick requests that the shrubbery by the sign leaving the island be moved or trimmed. She had asked about having examples of decals either available to view at the board meetings or on the web, and she was told her request was going to the CAC. Has there been any follow-up? Regarding Joe’s response to Mr. Kulick about the bridges from the August 12 meeting, when were the bridges to Summer Island built, considering we just spent $50K to fix? Are board working sessions open to public or closed? If they are open, where are they publicized?