[FIRST SUBMITTED AUGUST 13, 2002]

Present: Bill Wert, President Joe Bunting, Staff

Marty Yonas, Vice President/Treasurer Tammy McAdory, Staff

Fred Peterson, Secretary/Treasurer Teresa Cooper, Staff

Pat McKinney, Director Carrie Cross, Staff

Jon Weitz, Director

Tom Hutchinson, Director

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

Absent: Buddy Darby, Director

1. Call to Order, Verify Quorum - Verifying quorum, Mr. Wert called the meeting to order at 2:00 p.m.

2. Approval of Minutes, July 8, 2002 - Mr. Hutchinson moved approval of the July 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. Survey Status – about 1,800 back at 8/12/02. This is a good return thus far.

3.A.2. Focus Group Status Report – As of August 12, 11 live groups and 5 phone groups were conducted. Attendance was good and participation was excellent. In addition, a special opinion poll on the focus group topics was sent to a random sample of 400 nonresident members. A full report will be available to the board by the end of August. Discussion turned briefly to the existing Long Range Plan. Staff was asked to draft a revision, for board approval, prioritizing the remaining items from LRP Cycle II, and include the recommendations that come out of the recent focus groups.

3.A.3. LMAC request to streamline pond closure – In the event an emergency pond closure becomes necessary, it is requested that the Board give permission to the Board Operations Committee to authorize emergency closings. The Board agreed to the concept that the KICA Director of Lakes Management will report in writing to the General Manager who would send a request for closure as a vote to the Operations Committee for final approval within 48 hours. As need dictates, the General Manager has the authority to act in his best judgment before the vote occurs.

3.A.4. Security Department Resort-

a.Routine Report (enclosure) – June 26 – July 31. Comparatively low number of incidents July 4 week.

b.Main Gate Traffic Flow – When traffic without a pass approaches the right lane, guards will move that traffic to the parking area directly behind the gate to better assist members and guests who do have passes. Automatic arms are not currently working, but we expect them to be working by September 10, 2002. Board directed that staff find an alternative to Carolina Time, due to their unsatisfactory performance, and also suggested that we find a back-up unit for both gates when they are out of service. Guards have moved inside the gatehouses. The board directed that during peak hours, guards be both inside and outside the guardhouse.

c.Covenant Violations Reports (enclosure) – June 26 – July 30. Total violations down.

3.A.5. Mail Votes – No mail votes were taken since the last meeting on July 8, 2002.

3.A.6. Member Questions from July 8 Meeting (enclosure) – response letters were sent to each inquirer from the July 8 meeting. In addition, copies of the letters are available for review at the KICA administrative office, as part of the corporate records.

3.B. Teresa Cooper, Controller

3.B.1. Verify Robinson Grant (enclosure) as our 2002 financial auditors. Board directed a maximum amount on the out of pocket expense. Mr. Hutchinson moved to accept the proposal with the additional parameter. Mr. Peterson seconded the motion. This vote was carried unanimously by those in attendance.

3.B.2 Resolution to Update Trustees on 401(k) plan (enclosure) – Update to include the HR manager as one of the trustees of the 401(k) plan. Mr. Hutchinson moved to accept the proposal. Mr. Yonas seconded the motion. This vote was carried unanimously by those in attendance.

3.B.3 2003 Budget Guidelines (enclosure) – Mr. Hutchinson moved to accept the proposed budget guidelines. Mr. Yonas seconded the motion. This vote was carried unanimously by those in attendance.

3.B.4 2003 Budget Time Line (enclosure) – Timeline was submitted as information. Mr. Wert put the Board on notice that the November 4 meeting will be long since the goal is budget approval.

3.B.5 Capital Equipment Requests (enclosure) –

a.Recreation requests a new stair stepper. The old stepper will be removed upon receipt of the new one. Current stepper is five years old. Payment would be available out of the Operating Fund due to increased revenues from pool initiation fees and property status changes. Mr. Weitz moved to accept the purchase of a new stair stepper. Mr. McKinney seconded the motion. This vote was carried unanimously by those in attendance.

b.Maintenance requests a used pick-up truck. They request purchase of a used pick-up for service calls, pick up of parts, and to minimize employee use of personal vehicles. Payment will come out of the proceeds from the sale of one dump truck and one Versa-Lift. The pick- up would only be purchased after these sales occurred. Mr. Hutchinson moved to accept the purchase of a used pick-up truck. Mr. Yonas seconded the motion. The vote was carried unanimously by those in attendance.

3.B.6 Second Quarter Financials (enclosure) – We currently have a favorable variance report.

4. Committee Reports

4.A. Ad Hoc Committee – Commercial Pass Operations, Kelly Bragg, Chair – Currently there have been four meetings to get requirements and recommendations for replacement of the Little Rabbit Pass Office. Three suggestions for the electronic store are: use custom-built software, Yahoo e-commerce store, or use current programs update that is Internet capable. Ms. Bragg still needs to meet with Mr. Corcoran, and then the initial findings will be proposed to the Board hopefully by the end of next week.

5. New Business - There was no new business to conduct.

6. Unfinished Business, Bill Wert – Joe had submitted a request on behalf of the Governance and Planning Committee. Mr. Wert asked that this be tabled for now and that the request be sent to all Board members for their responses within ten days.

7. Adjournment - Having no further business to conduct, the meeting was adjourned on motion duly made and seconded at 3:00 p.m.

Submitted by: Approved at September 23, 2002 meeting

Carrie Cross Fred Peterson

August 13, 2002 Secretary

Member Comment Session UNAPPROVED

August 12, 2002

[Speakers were very indistinct due to distance from microphones.]

Tom Kulick, 38 Marsh Edge Lane – Regarding bridges on Kiawah Island in general, does KICA have regular, professional bridge inspections, how often are they done, by whom, what are the inspector’s qualifications and, when problems are discovered, are the proper authorities notified? What is the problem with Summer Island Bridge and what is the cost to repair it? Is KICA’s insurance carrier aware that KICA’s legal counsel also represents the developer and the water company and, if so, has the carrier agreed to fully indemnify KICA in the event a problem arises due to a conflict of interest.

Don McIver, 185 Glen Abbey – Requests that the Board waive the Commercial Access fee for public transportation companies, such as taxis to come to the Island to pick up fares after telephone requests.

Wendy Kulick, 38 Marsh Edge Lane – Was the response to Ms. Kulick (regarding Freshfields being discussed in focus groups) from staff or from the Board? Have any steps been taken for future planning with respect to vehicles blocking roads? Why does it take so long to get a response to questions raised at Board meetings? Could you put the questions and answers on the list serve? When will the Property Owners Directors actions match their words regarding their interest in improving communication (example, front menu board did not announce Board Meeting)?