KICA BOARD OF DIRECTORS MEETING               UNAPPROVED

                                      Monday, February 18, 2002  - 2:00 p.m.  Sandcastle

                                                                      MINUTES

 

In Attendance:              Peter Trees, President                                       Joe Bunting, Staff

Tom Hutchinson, Secretary (by phone) Tammy McAdory, Staff

Marty Yonas, Treasurer                                    Jessica Shockley, Staff

Bill Wert, Vice President                                   Teresa Cooper, Staff

Buddy Darby, Director                                     Kay Narmour, Staff

Pat McKinney, Director

Jon Weitz, Director

 

1.                  Call to Order, Verify Quorum.  Mr. Trees called the meeting to order at 2:00 p.m., with a quorum present as follows: In person: Messrs. Trees, Wert, Yonas, Weitz.  By telephone: Mr. Hutchinson.  (Messrs. Darby & McKinney arrived shortly thereafter as noted.)

 

2.                  Approval of Minutes of January 7, 2002.  Mr. Wert moved approval of minutes as submitted.  Mr. Yonas seconded. [Mr. Darby arrived at this point.] Motion carried unanimously by those present.

 

3.A.1.  Administrative Reports. Joe Bunting

Focus Groups.  Joe requested funding, as part of the long range plan, and as part of the work of the Governance & Planning, Recreation and Finance committees, of an amount not to exceed $15,000 to be funded by 2002 operating surplus.  Focus groups will cover issues identified by the three committees. [Mr. McKinney arrived at this point.]  Mr. Wert asked whether topics other than those already identified by GPC could be included; it was determined they could.  Mr. Yonas moved approval.  Mr. Weitz seconded.  Motion carried unanimously.

 

3.A.2.  Resolution - 2002 Annual Meeting Rules of Conduct (enclosure).  This document governs conduct at the annual meeting; the rules are essentially the same as have been followed in past years. Mr. Weitz moved approval of the resolution as submitted; Mr. Wert seconded.  Motion carried unanimously.

 

3.A.3.  Resolution - Board Service Overview & Board/Committee/Staff Relationships (enclosure)  This document explains the roles of the board, committees and staff, and describes expectations and requirements for board members.  A question arose as to whether the resolution=s requirement that board candidates have prior service on a KICA committee would create a problem, in relation to a member being nominated from the floor at an annual meeting and possibly not meeting the criteria.  Staff was instructed to obtain a legal opinion.  Mr. Yonas moved approval of the resolution as submitted provided the legal opinion was not to the contrary.  Mr. Wert seconded. Motion carried unanimously.

 

3.A.4   Deferment of New Employees.  When the board approved the 2002 budget at the December 10, 2001 meeting, it directed that the hiring of new employees approved therein be deferred until the February 2002 meeting.  Joe asked for approval to proceed with hiring these positions: 1 full-time security officer for third shift, two full-time security patrol officers and one part-time administrative assistant for the covenant compliance program, and one full-time land management employee.  Mr. Yonas moved approval; Mr. Darby seconded.  Motion carried unanimously.

 

3.A.5   Announcement of Earth Day 2002 Festival (handout enclosed as Exhibit 1) KICA employees Katie Doyle and Elizabeth Berens described events for a full Earth Day weekend to be held April 12 through 15.  The event is co-sponsored by the Kiawah Island Natural Habitat Conservancy, the Town of Kiawah Island, KRA, KIR and Great Beach Regime Management.

 

3.A.6.  Long Range Plan.

a.  Status Report (enclosure).  Joe reported per the enclosure as information only.

b.  LRP Action Item - Pursuant to Action Item 14, Joe requested a name change from  Governance Committee to Governance & Planning Committee to recognize the chartered tasks for planning of future facilities.  Mr. Wert moved approval;  Mr. Weitz seconded.  Motion carried unanimously.

c.  LRP Action Item (enclosure) - At its January 14 meeting the board considered establishing a Member Council or other mechanism to advise the board on topics of current interest to all members, and asked staff to prepare an outline, submitted herein. Mr. Wert asked to defer further action until the board members had an opportunity to talk to their constituents and determine their views. This item will be discussed at the next regular meeting.

 

3.A.7   Notice of Intent to Convey - The Preserve Phase V (info only).  This is for rights-of-way and infrastructure from 59 & 61 Blue Heron Pond Road, 200-220 Chinaberry Lane & 222-238 Eagle Point Road, including one wooden bridge near lot 200. KICA is now responsible for maintenance of this property, with the exception of the landscaping which is not yet complete. The Maintenance Department is currently performing its standard inspections and will generate a punch list shortly.  Mr. Trees noted that we=ve learned that the wooden bridges are a high maintenance item, and the property owner directors are in discussion with the developer as to what KICA can do to address these high maintenance costs.

 

3.A.8   CAI Course (info only).  Thirteen KICA members responded to KICA=s offer to attend, at our cost, CAI=s association leadership course in March. Nine of the 13 have confirmed attendance and been registered.  CSC will liaison with the attendees to encourage their future volunteerism.  Eight of the nine have not previously been KICA volunteers, and eight of the nine are nonresident members.

3.A.9   Security Department Report (enclosure). A routine report for period of December 18, 2001 to February 1, 2002 was provided to the board without comment. 

 

3.A.10 Recreation Department Report.  Business is brisk for both Thursday Night Dinners and the fitness center. 

3.A.11 Mail Votes.

1.  On January 8 the Operations Committee approved funding for a $500 assessment rebate drawing for returned ballot/proxies for the 2002 annual meeting. The intent was to encourage response so that quorum is meet.

2.  On January 14 the Operations Committee, as authorized by the board at its January 7 meeting, approved 2 changes to the commercial vehicle access policy: (1) increase fleet rate to $1800 + an additional processing fee of $10 per vehicle registered; (2) implement new $10 annual fee per vehicle for employees of contractors and subcontractors using personal vehicles.

3.  On January 31 the full board approved an agreement between KICA and KIR with respect to hotel construction and roads. Mr. Weitz abstained since he represents KIR.  Mr. McKinney asked that this vote be reaffirmed at today=s meeting, since the requirement is that mail votes be unanimous, and Mr. Weitz had properly abstained from voting this issue.  Mr. Yonas moved to ratify the vote; Mr. Wert seconded.  Motion carried unanimously, excepting Mr. Weitz who abstained.

 

3.B.1.   Capital Equipment Request - Information Systems Upgrade (enclosure). Joe explained that staff had worked on this request for some months, and had refined it several times at the request of the FAC.  The upgrade consists of four components: I. Network server and Novell upgrade; II. Accounting Software and Installation; III. New Main Gate Pass System, IV. Improved Interactive Website. Also included is a 10% contingency. The old systems are DOS based, fail frequently, and do not allow intradepartment networking. The FAC recommends approval.  Mr. Wert asked that the website portion of the upgrade be deferred while discussions are occurring between KICA, KPOG and the Town regarding an integrated website.  This defers $12,600 of the $116,181 request. Mr. Trees asked that the gate pass system not be funded from MR&R as proposed, but from operations generated by the new hotel assessment. The funding breakdown is: $32,000 from depreciation & $72,000 from operations.  Mr. Wert moved approval; Mr. Hutchinson seconded.  Motion carried unanimously.

 

4. Committee Reports.

A.        Governance & Planning Committee, Steve Bennett - (enclosure) Mr. Bennett summarized his detailed report as enclosed. The GPC recommended that the extensive communications and related cost of submitting Plain Language Covenants to the membership is not a worthwhile effort. A logical starting point would be Article VI, which discusses association services. GPC=s work on this article is ongoing. Any recommendations for changes would be made on a schedule allowing submittal to the membership for the 2003 annual meeting package.  GPC continues work on the 2002 member survey, with focus groups being used to address many of the topics. The planned schedule is late first quarter/early second quarter for the survey and the summer quarter for the focus groups. 

 

4.B.      Recreation Advisory Committee, Emmy Lou Anderson (enclosure) Mrs. Anderson summarized her detailed report as enclosed. The revised mission statement and requested name change from Recreation Center to Community Center was deferred to the April meeting when all committee charters are renewed.  Regarding the request to raise the unattended child age from 11 to 13, Mr. Wert asked that some time be spent gathering specific data about this, and that RAC report back to the board.  Regarding the request that the pool closing time be moved from 10:00 p.m. in season to 7:00 p.m., Mr. Hutchinson moved approval, Mr. McKinney seconded, and the motion carried unanimously.  Mrs. Anderson reported that, as part of the committee=s goal of 25% annual turnover, she would be stepping down as chair, and Elsie Meyer would also step down. The board thanked these ladies for their dedicated efforts over the years.

 

4.C.     Finance Advisory Committee. Avril Fenwick Mrs. Fenwick summarized the Recreation Department deficit as detailed on the enclosed report. 

4.C.1. (Enclosure) Explanation of actual revenues and expenses versus those estimated in the referendum. The assumptions made at the time of the referendum were the best that could be done at that time. Recreation has expanded services to meet the needs of the membership. These  also have a cost associated to operate them. Board members discussed the fact that typically operations of this nature do not break even. [Mr. Darby left the meeting at this point.]

4.C.2. Short-term Recommendations (enclosure) To achieve break-even status, the FAC proposed adoption of its AShort-term recommendations for Recreation Center@ dated February 7, 2002, enclosed herein. Mr. Hutchinson moved adoption; Mr. Yonas seconded. This motion carried unanimously with the exception of Mr. Darby, now absent.

4.C.3. Timetable to Long-Term Solution Recommendations (enclosure) By the May 2002 board meeting, FAC will develop 4 options, including assembling legal opinions, preparing financial assumptions and projections and collecting other data. By June and July, KICA will implement and complete focus groups to discuss options and select best alternatives.  At the August board meeting, FAC will present a long-term solution with implementation schedule, before the 2003 budget process is complete.

5.         New Business.  A. Bill Wert.  Proposed schedule for board meetings April 2002 - February 2003 (enclosure) On motion by Mr. Wert, seconded by Mr. Hutchinson, the board unanimously approved this schedule,  with the exception of Mr. Darby, now absent.

 

 

 

5.B (nonagenda). Marty Yonas.  Mr. Yonas asked about the status of 1 Airy Hall, about which he is receiving many questions. The property has been under construction for some time with no progress. Mr. Wert explained that it is a complex situation, and because of legal issues he was not at liberty to divulge a lot of details. Several agencies are now involved in resolution, including KICA, ARB and Charleston County, and actions are proceeding.

 

5.C. (nonagenda)  Joe reminded attendees that today=s meeting represents President Trees= last regular board meeting, and he thanked Mr. Trees on behalf of the staff, committees, and membership. Staff appreciates Mr. Trees= leadership and guidance over the years.   

 

1.                  Unfinished Business.  None.

 

7.         Adjournment. There being no further business, on motion duly made and seconded, the meeting was adjourned.

 

 

 

Submitted by,                                                               APPROVED at the April 8, 2002 Board Meeting

 

 

Tammy McAdory                                                         Thomas E. Hutchinson

February 19, 2002                                                       Secretary

 

 

 

                                                          Member Comment Session

                                                                February 18, 2002

 

 

 

(Note: speakers did not approach microphones, making transcription difficult and inaudible in places.)

 

 

Wendy Kulick, 38 Marsh Edge Lane.   Mrs. Kulick had questions in three separate areas. First, regarding the upcoming annual meeting.  When adopting the rules of conduct, Mr. Trees had said that the procedures are the same as in past years. Why, then, does the proxy card have no place for members to sign to revoke the proxy if they attend the meeting, and why was that changed from past years.  She also asked whether it was a procedural reason or something else that led to the Operations Committee being asked to approve the $500 assessment rebate on January 8, a day after the meeting of the full board.

 

Second, Mrs. Kulick urged that even if legal counsel said there is no problem legally with requiring members to have served on a committee before being eligible for board service, that the board consider that only as a recommendation and not a requirement.

 

The third area relates to the most recent Kiawah Island Utility request for a water rate increase. Mrs. Kulick asked  what KICA has spent on irrigation and other water-related expenses over the past three years and what the percentage increase is.  She also asked why KICA is not participating in the water rate increase appeal along with the Town, KPOG, and now KIR. 

 

Ted Kautz, 30 Bufflehead.  Mr. Kautz pointed out that the savings in productivity realized by an information systems system upgrade was not mentioned. He suggested that, while cost avoidance or savings may not be quantifiabe, the members could be given some anecdotal information that might make them more comfortable with the costs involved, as so much is heard about the costs of running the community association.