May 20, 2002 Board Minutes

KICA Board of Directors Meeting APPROVED

May 20, 2002

2:00 p.m. - Sandcastle

[FIRST SUBMITTED MAY 21, 2002]

Present: Bill Wert, President Joe Bunting, Staff

Marty Yonas, Vice President Teresa Cooper, Staff

Fred Peterson, Secretary Kay Narmour, Staff

Pat McKinney, Director Dale Anderson, Staff

Buddy Darby, Director Jessica Shockley, Staff

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

Absent: Tom Hutchinson, Director

Jon Weitz, Director

1. Call to Order, Verify Quorum - Verifying quorum, Mr. Wert called the meeting to order at 2:04 p.m.

2. Approval of Minutes, April 8, 2002 - Mr. McKinney moved approval of the April 8 minutes. Mr. Yonas seconded the motion. This vote was carried unanimously by those in attendance.

3. Administrative Reports

A. Joe Bunting, General Manager

1. Technology Status Reports

a. Status of New Technology at Main Gate - Equipment for issuing passes from the main gate was purchased and a prototype was shown to the board by Dale Anderson. The new computers and printers will aid Officers in issuing passes more efficiently.

b. Status of New Website - Staff recommended upgrading website to include interactive forms, member directory, full calendar, electronic newsletter, instant polling, and multiple editor capabilities. Concept approved by FAC. Staff expected to bring proposal to board after the AKiawah Portal@ concept has been decided.

c. Status of Electronic Balloting - E-balloting would not save association money or help in achievement of quorum. Covenants dictate that annual meeting materials must be sent by mail to each member=s last known address. Mr. Wert suggested that the G & P committee, along with CAC, put together a proposal for amending covenants to allow emailing meeting materials and ballots. Mr. Wert directed staff to offer electronic balloting for the 2003 annual meeting.

3.A.2. Member Request for Easement Agreement - Mr. Darby moved approval of the easement agreement, which would allow the owner of 14 Royal Beach to use KICA property for the operation of a grandfathered open loop geothermal system. The system was installed prior to the board=s and ARB=s banning of open loop systems in May 2001. Mr. Yonas seconded the motion. This vote was carried unanimously by those in attendance.

3.A.3. Focus Groups Topics - A list of focus groups topics was compiled and submitted to the board for approval. Mr. Darby suggested that an additional topic be added regarding KICA=s role in the new FreshFields center. Mr. Yonas moved approval of the focus groups topics. Mr. McKinney seconded the motion. This vote was carried unanimously by those in attendance.

3.A.4. Follow-up on Community Building Events: Earth Day April 13, Pooch Parade May 11 - About 300 people participated in this year=s Earth Day Festival, and 100 people ran in the 5k Fun Run. The cost to the association was only $2,000. About 100 people participated in the first annual Pooch Parade, and 60 dogs were entered into the KICA Pet Registry. There was no cost to the association. Both events will be held again next year. Upcoming events included Memorial Day Celebration at the Sandcastle on May 25, AABC=s@ course on June 1, and Kiawah Night at the RiverDogs Game on June 10.

3.A.5. Long Range Plan Status Report - There were 40 completed items, 36 items underway, and zero items pending. An updated version of the report would be available online.

3.A.6. Monthly Coffee with the General Manager - As a means to increase communication between the membership, the board, and staff, Joe would host an informal meeting each month at the association offices. The meetings would be held on a trial basis, first open to all interested, and then narrowed to neighborhood groups. The first meeting will occur once proper notice has been included in Digest as a monthly feature.

3.A.7. Security Department Report

1.Main Gate Grand Opening Ceremony - A grand opening ceremony is scheduled to be held at the main gate on July 22, 2002, at 10:00 a.m.

2.Routine Report - Routine Security reports now contain the number of EMS responses to the island as well as a listing of covenant violation activity for the board=s convenience.

Non-Agenda Item - Mr. Wert asked that staff analyze the improvements that the new pass issuing system at the main gate will have on covenant violations. This will be presented at the next board meeting, July 8, 2002.

3.A.8. Recreation Department Report - Kay Narmour reported that there would be a Memorial Day Celebration held at the Sandcastle on May 25. Thursday Night Dinners had been at maximum capacity and all other programs were successful.

3.A.9. Mail Votes

3.Hotel Road MOU #2 - A mail vote had been taken on this subject, but vote was not unanimous. The MOU specified that the Resort must notify KICA of any activities related to traffic or parking on KICA roads. Mr. McKinney moved approval of the MOU. Mr. Peterson seconded the motion. This vote was carried unanimously by those in attendance.

3.A.10. Member Questions from April 8 Meeting - Answers to Pat Casey=s and Wendy Kulick=s questions were read to the audience.

3.A.11. Report on Executive Session of April 8 - The board unanimously ratified the vote taken in Executive Session at the last meeting, approving Carol Hacker as vice chair to CAC, adding Russ Warren and Karen Watson to CSC, adding Wendy Kulick to GPC, and adding Gerry Gherlein to SSAC.

3.B. Teresa Cooper, Controller

3.B.1. Request for $15,000 loan from MR&R for Recreation Center Air Conditioning Funding - The cost to repair the air conditioning was $25,000, but only $10,000 was budgeted. Mr. Darby moved approval of the $15,000 loan from MR&R. Mr. McKinney seconded the motion. This vote was carried unanimously by those in attendance.

3.B.2. Status of Installation of New Accounting Software - The new software, Financial Edge is up and running six weeks ahead of schedule.

3.B.3. First Quarter Financials - Installation of the new software had taken precedence over the first quarter financials, but Teresa was able to provide the board with a brief summary. Financials would be available on May 30, 2002.

Non-Agenda Item - Mr. Wert mentioned the Community Services Committee=s new program, AKiawah Reads.@ The program was intended to promote community togetherness.

4. Committee Reports

4.A. Three Options for Long Term Solutions for Rec. Center-Avril Fenwick, FAC chair - Mrs. Fenwick outlined three possibilities for long term funding of the recreation center for the board. They included: charging special assessments for Type A members, converting the Sandcastle from a purchased common property to a common property, or cutting back on services/programs when the money is all spent. After discussing the topic for 6 months, the FAC would prefer to charge special assessments to Type A members. The board will now take the matter under advisement.

4.B. Security Status Report for Summer Covenant Enforcement-Bob Hoopman, SSAC vice chair - Mr. Hoopman stressed that the SSAC was taking a pro-active response to covenant enforcement. Weekly meetings were held between KICA, Town, and Resort to review incident logs, troubleshoot areas of difficulty, and follow-up on violations. Monthly meetings between interested parties were also being held to ensure consistent rules enforcement. Staff was better trained for this summer=s enforcement program.

5. New Business

5.A. Bill Wert - Mr. Wert advised that he would be representing KICA in opposing the proposed Folly Beach Groin at a public meeting on May 28. Letters of opposition had already been sent. Mr. McKinney stated that KRA had sent letters of opposition also.

6. Unfinished Business - There was no unfinished business to conduct.

7. Adjournment - Having no further business to conduct, the meeting was adjourned on motion duly made and seconded at 3:40 p.m.

Submitted by: Approved at July 8, 2002 Meeting

Jessica Shockley Fred Peterson

May 21, 2002 Secretary