Kiawah Island Property Owners Group

•  Voting structure has been simplified so that 1 membership = 1 vote. 

• The by-Laws will authorize the KPOG Board of Directors, rather than the membership, to set dues and the following year’s budget. In the past, membership approval has been a pro forma matter. The change will permit annual membership solicitation letters to be sent out sooner, thus keeping the cash flow going at the beginning of each new year.

• Added an additional officer position, Assistant Treasurer, which brings the number of active officers and directors to eleven. The immediate past president will sit on the board, but will not have a vote.  Before, the past president only voted to break a tie. 

• Recognition of current committee structure, i.e., MIS & IMC 

The new by-laws were passed unanimously by voice vote.

GUEST SPEAKERS

Representatives of the town, KICA and the resort accepted invitations to address the group; KRA declined.

Town of Kiawah Island – Councilman Jack Pulleyn 

Pulleyn noted the question was raised recently whether the town is negotiating a development agreement with the resort.  It is not. The letter in the November Kiawah Island Digest re: negotiations was sent to the town by the KICA property owner directors last June.  This was not clear, as there was no date included in the Digest.

Regarding utility matters, Pulleyn said most of the council members have felt it unfair for KPOG to bear the entire expense of fighting KIU's requested rate increases every two years or so.  At some time, the town will take over the water system and will have to negotiate a price.  The lower it is, the less the town will have to pay.  It's in everyone’s interest to spend a little money now, rather than pay a much higher price when purchase of the utility occurs.  Attorneys are currently working out the amount of assistance the town can provide KPOG. The town must follow strict rules re: expenditures.

Mayor Jim Piet has been very active in attending meetings regarding roads and bridges on Johns Island and in the Charleston area, with a view to making the lives of Kiawah property owners easier and more pleasant. Issues such as four-laning Bohicket from the Island Center to Maybank Highway are being discussed.  Floyd is definitely not the last hurricane which will require evacuation.   A roundabout at the entrance to Andell, Kiawah, Seabrook and the Betsy Kerrison Parkway is also under discussion.  Not yet considered is who will pay for it.  Pulleyn thinks if no agreement is reached the result will be a traffic light at that intersection. 

Dr. Tim Kana, a consultant to the town who has spent many years studying Kiawah, recently issued a new report on the state of Kiawah's beach.  In general, it's in pretty good shape.  The shoal at the eastern end is moving down-island.  The beach is generally accreting, and there is no reason to scrape or move sand, even in areas with slight erosion. 

Concern has been voiced about the town’s hotline (1-888-KIAWAH2) during the evacuation for Hurricane Floyd. Updates were posted  every 2 hours until the electricity went off, preventing further updates. The town feels this was a serious problem, which will be corrected.  Several options are being investigated.  During Hurricane Irene, when evacuation threatened, Piet went to town hall and changed the message every few hours, and the system worked well. 

Pulleyn was aware of various concerns voiced  re: a fundamental conflict between the town and KICA, citing a subcommittee report in the November Digest. He explained the impetus for the town’s incorporation was the City of Charleston’s annexing of nearby areas.  The incorporation process was very involved and required the approval of 75% of the owners of 75% of the assessed value of the area involved, whether the property owners were residents or not.  Thus, the town was created by the property owners, not  by a small group of willful people living on Kiawah. 

In addition to avoiding possible annexation by the city, Kiawah could capture certain revenues then going to the county and control its own destiny.  As a town, in addition to certain responsibilities Kiawah acquired many powers, some of which should be exercised and some should not.  This recognition resulted in the development agreement with KRA, signed in September, 1994. The result was largely beneficial to KICA. The dune areas between lot lines and the mean high water mark were deeded to KICA, preserving them from any future building. The DA started transition from developer control of the association to property owner control.  A deal was struck with KRA to reduce/modify ways in which the KRA directors voted on the KICA board.  Four members of the board are appointed by the developer.  For years almost every decision was a 4-3 vote, even though property owners pay most of KICA assessments. Previous town councils and mayors have had the interests of KICA at heart, as current ones do. [Ed. note - Pulleyn ran out of time before finishing his remarks.]

 Pulleyn congratulated the current KICA board for being the first to increase the assessment by less than the maximum permissible 5%  

Kiawah Island Resort – Prem Devadas 

Devadas gave a short report and sought questions/comments from the audience.  The resort has had another good year, even as it recognizes much still to be done to have a great resort on a great island.  He noted a number of projects in progress or in planning stages; 2000 will see “unprecedented” improvements to existing facilities and upgrades to the resort, including

• Turtle Point clubhouse, to include a restaurant

• redoing Turtle Point greens

• continued improvements at Inn for 3rd year in row

• Town Center & East Beach Conference Center enhancements

• starting to build new hotel in 2000, hopefully

• East Beach villa-related improvements

• Ocean Course Clubhouse and facilities enhancements

• Night Heron Park area/pool  upgrades

Question/Answer

Q:  What is the status of the new hotel?

A:  The plan approved by OCRM is still under appeal by some of the Enclave property owners, despite on-going talks with their attorney.  The resort hopes to work out an agreement prior to a hearing scheduled for the end of December.  If the hotel is moved as proposed by the resort to satisfy the appellants, OCRM will have to approve again.  Everyone has to give a little to come to mutual agreement.  Devadas feels the resort has given a lot, but doesn’t regret it. 

Q:  What are planned changes to Turtle Point (TP) golf course?

A:  The course will close mid-May – September 2000 to redo greensand some tee boxes. There will be a major renovation of practice area.  The first teaching facility on Kiawah will be built there.  The existing pro shop will be demolished, with about a year required for a new pro shop similar to Osprey Point, an informal 100-seat restaurant/lounge for golfers and Governors’ Club members and space on 2nd floor for functions.. 

Q:  Is there model of new hotel?

A:  Not at this time.  If agreement is reached with Enclave property owners, the resort hopes to begin construction in August 2000. As things progress,  more details will be shared with property owners at another meeting, probably in March. 

Q:  Is the need for a DA with the town anticipated?

A:  It will be necessary if variances or requests are sought, i.e. resort seat on KICA board.  Current hotel design has 5 stories in the accommodation wings and fewer parking spaces than required by town code.  Even at 350 rooms, density is still 40% less than the amount allowed by zoning.  Devadas said he strongly believes less surface parking would be good.  At same time, he understands issue of 5th story.  The options are a DA or a variance; Devadas did not rule out the possibility of the hotel having only 4 stories.

KICA – POD Peter Trees 

In introducing him, Greer noted how hard Trees has been working, attending town council and KPOG board meetings.  Trees reviewed accomplishments of the KICA board in the 6 months since he last addressed a KPOG quarterly meeting:

• Refurbishment of pool: the functional requirements were studied and recommendations on financial feasibility came from Recreation Center Operating Committee and Finance Advisory Committee.  A referendum to add amenities, authorize a loan from the Major Repair & Replacement (MR/R) fund and institute anon-resident $20 annual usage fee passed by a vote of 4-1.  The old pool was demolished in early November, with work to be completed by spring. 
  

• Changes to the Communications Advisory Committee: Gene Kreuzberger was appointed editor and a new editorial policy was established for Kiawah Island Digest in an effort to improve its quality and credibility. 

• The Landscape Committee has been renamed the Land Management Committee, and will study environmental issues that need to be addressed.  Dick Sula is the new chair.  Trees hopes this will bring closure to the landscape plan proposed earlier in the year. 

• The board adopted election campaign reform recommendations made by the Governance Committee, including use of Digest as primary vehicle for campaign statements; a KICA-sponsored "Meet the Candidates" forum, and confidentiality of proxy counts prior to the election.

• The Covenant Compliance Committee chair has been invited to sit in on Architectural Review Board (ARB) meetings.  This is the beginning of transition of control of the ARB from KRA to KICA

• Strength of KICA's MR/R fund is unique, with about $5M in it: Flyway Drive, Fletcher, Airy and Clay Halls will be resurfaced soon

• 3 public forums were held to open dialogue with property owners

• The 2000 budget contains a number of “firsts,” including increasing the annual assessment less than 5% maximum, and no increase in personnel.

• There has been effective communication with the town.  The PODs have met with Piet and Pulleyn 6 times since Trees was elected.  Acrimony has quieted; they are actively discussing common interests. 

Trees thinks the board should focus on the following in the next year:

• Landscaping definition and management plans resulting in positive changes which would enhance developed neighborhoods and create better balance between older and newer neighborhoods.  The issue is funding. 

• Development of the long range plan has proved to be  very successful in involving volunteers in KICA  There were 27 focus groups, 21 sub-committees with more than 100 volunteers, and 17 reports filed to date.  The board needs to prioritize after culling recommendations. 

• The Governance Committee study of revision/updating/revamping of covenants.  The board hoping to submit changes to the membership by March 2001. 

• Continue efforts to improve communications and have Digest as an unbiased source of information. 

• Take relationships with the town and other entities to new levels, to maximize the synergistic benefits of working together.  Creatively explore sharing workload, knowledge and expertise. 

Question/Answer

Q:  Is there formula for when KICA takes over the ARB?

A:  It's not totally open-ended, which is why it is significant.  Some elements of ARB work would be better placed in KICA.  The covenants provide for take over, but no time frame is included. 

General Q&A/Comments

Q:  Could the developer decide to sell the utility to another private entity rather than the town?

A:  Greer said could be a concern, but the town has the right to take over the utility if it so desires.  The town could do so by condemnation.  Pulleyn added condemnation would lead to a long period of negotiation on price.  Former Mayor Tom Nelson noted several years ago Seabrook Island took over the utility there via condemnation and was involved in a long court fight before prevailing.

comment:  Wendy Kulick urged support for the town’s efforts to improve roads and bridges to and from Kiawah and the mainland, pointing out that traffic is heavier coming out to Kiawah during her early morning commute.  She noted the improvement in relationships between town officials and PODS as a result of pro-active efforts of both.  When KICA focus groups met with the facilitator, the relationship between the town and KICA was at an all-time low. 

President Tug Greer opened the meeting, thanked Prem Devadas and VIT for facilities and refreshments.  There was a light turnout due to concerns about potential impact of Hurricane Floyd.  Mayor Jim Piet, attending a county emergency preparedness meeting held at same time, planned to call with news if possible.  The lack of a quorum was not a problem, since no votes were taken. 

TREASURER'S REPORT - Ruth Ann James 

KPOG currently has more than $59K in checking and two savings/money market accounts.  More than $5K over dues budget as result of increased membership.  More than $21K in donations to build up reserves.  Under budget to date by more than $2,600. 

MEMBERSHIP - Suzanne Barnes, Co-Chair 

New record for membership of 1,507.  Last year at same time 1,306 members.  Of 302 new members this year, 208 have never been members before.  Greer thanked Barnes and Co-Chair Arnie Liebman for hard work which has produced increased numbers. 

TELEPHONE DIRECTORY - Tug Greer 

Greer gave report for Joe Pezzullo.  Due to volume, clarification of information and some computer glitches, process has taken longer than anticipated.  All property owners, except those who requested omission, will be included.  1,297 property owners have ordered 1,616 copies of directory, which is being proofed prior to printing. 

PRESIDENT'S REPORT- Tug Greer 

Hurricane Floyd:  If Mayor Piet able to report in during meeting, Greer will pass any info along.  If not, website will be  updated as often as possible. 

KICA Pool Replacement: KICA Board of Directors made decision to replace rather than repair existing pool; new one will be 50% larger.  Will borrow money from KICA General Fund; no assessment to property owners.  Phase II requires referendum for playground area and other improvements; will also include authorization to borrow money from Major Repair/Replacement (MR/R) fund to pay for this.  Replacement of pool should be completed by Memorial Day 2000.  

“Good bit of noise” made about these 2 decisions.  Type of controversy KPOG should watch, and KPOG board has studied what, if any, action to take.  After consideration, KPOG board agrees with what KICA has done and applauds KICA board’s decisions.  KPOG does not believe referendum on replacement of pool is necessary, contrary to what has been said. KPOG thinks referendum is prudent for phase II, however, because portions of improvements are new, and wording of covenants is vague.

KPOG also thinks it’s wise to borrow money from the MR/R fund.  KPOG urges everyone to vote in favor of referendum when sent to property owners. 

Utility Increase Appeal Update: Before reporting on meeting earlier that day with KPOG’s attorney, Greer reviewed history of utility rate appeals: In 1996, Kiawah Island Utility (KIU) requested increase.  KPOG intervened against it and appealed Public Service Utility’s (PSC) decision, which circuit court upheld.  KPOG then appealed to state Supreme Court.  With utility being owned by developer, KPOG felt costs passed on to KIU by KRA, which were then passed on to property owners, should have been developer costs.  Increased rates were reflected in all property owners’ bills. 

In 1998, KIU requested another increase.  KPOG argued against it because ‘96 case was still open.  Again, bills reflected approved increase.  KPOG appealed PSC’s decision in ‘98 rate case in order to keep it open, pending decision from Supreme Court in ‘96 case. On June 22nd, Supreme Court heard KPOG’s appeal.  Decision just received September 7th.  Supreme Court determined PSC order inadequate and did not provide enough information to allow Supreme Court to determine if appropriate.  Decision was reversed and remanded back to PSC to do it over and do it right. 

What decision means not known for sure.  Rate increase now null & void.  Extra money collected will have to be returned or put in escrow, and KIU will have to decide whether to reduce monthly bills.  ’98 increase based on data for ’96 increase.  Chances are it will be voided also, but not certain. PSC & KIU have problem: what will they do about funds they have collected?  They have done nothing illegal, because we did not object to new ‘96 rates, but chose to appeal decision.  Issue will have to be resolved quickly. 

What happens from here depends on PSC.  Greer guessed KIU will send out letter with tone that this isn’t a problem, that Supreme Court just looking for additional information, and try to make it appear simply an administrative matter. KPOG doesn’t see it that way.  Supreme Court could have said rates were approved and they just needed additional information, but didn’t do that.  What KPOG thinks will happen is PSC will have to resubmit.  KPOG wants input and wants discussions with PSC.  If it gives on some issues and satisfies KPOG, we would drop our appeal.  If KIU comes up with something KPOG doesn’t like, it would go back to circuit court and, if upheld, KPOG would have to appeal to Supreme Court.  This would be expensive, and KPOG board would have decisions to make. 

PSC had its knuckles rapped pretty hard and has credibility problem.  Four of 7 current PSC board members are new since last case.  Several ran on need for reform of PSC.  Circuit Court judge who upheld ‘96 rates has retired.  Also, remand now has to go before entire PSC, whereas before 3 members wrote decision.

Trying to build as broad base as possible for public support.  More than 30 members on KINHC board.  Almost all on board actively involved. Donations of $40K in cash and valuable in kind contributions from 200 donors during first year; most have renewed. 

Town Wildlife Committee, the resort and KICA all have limitations.  KINHC can work with all groups and do some thing others can’t.  KINHC appreciates KICA Land Management Committee having refocused role to include habitat preservation. 

FLOOD INSURANCE - Tug Greer (for Joni Rennhack) 

Concern expressed by property owner that many people don’t understand what goes with government sponsored flood insurance and violations which could cause loss of it led Greer to invite FEMA or county representative.  Unable to attend meeting b/c of preparations for Hurricane Floyd; Greer summarized comments. 

Property owners should review flood insurance policies.  Town has series of criteria with which it must comply to reduce flood insurance rates.  If property owner violates policy, could cause his policy to be null & void and eliminate federally-backed mortgage. Use of space below required finished floor is most common violation.  Only authorized use is for vehicle parking and storage of lawn equipment.  No structure which would impede flow of water permitted.  If room built on ground floor, violation of terms of flood insurance.  Before Hurricane Hugo, grandfathered on height, but if anyone w/lower level remodels more than 50% value of home, must raise to meet new standards.  Could be expensive. 

Kiawah qualifies under FEMA community rating system, which has resulted in reduction in flood insurance costs.  FEMA inspects every 5 years.  If violations, could be put on probation or suspended.  Individual violations could endanger whole community.  Individual property owners with questions urged to call Allison Harvey, town administrator. 

In response to question whether problems Delk mentioned earlier about lagoon blockage at Cougar Point would endanger flood insurance, Delk said no.  KICA can still regulate lagoons; started draining them today as precaution before storm. 

Meeting adjourned after 1 ½ hours.

Approximately 125 people in attendance.

President Tug Greer opened meeting, encouraging people to choose words carefully because of impact they can have.   He thanked Prem Devadas and Kiawah Island Resort for providing both the room and post-meeting coffee and cookies.  Greer noted future quarterly meetings would be held end of August/beginning September and late November/early December, with annual meeting in February.

Membership approved dispensing with reading of minutes from previous meeting

TREASURER'S REPORT - Ruth Ann James 

See budget at end of this article. Items over budget need to be watched carefully over time.  This year, KPOG must be diligent to stay within budget because there are no reserve funds on which to fall back, mostly due to legal expenses.

MEMBERSHIP REPORT - Suzanne Barnes 

As of May 24, KPOG has 1,325 members, which includes 264 new members.  At this time last year, there were 1,079 members.

TELEPHONE DIRECTORY REPORT - Joe Pezzullo

Response for directory orders has exceeded projections, with 1,600 orders from slightly more than 3,200 property owners.  Orders still being processed - $8 for members, $12 for non-members.  Pezzullo thanked all who assisted in the original stuffing & mailing party, and sought volunteers for preparing for delivery of directories.

PRESIDENT'S REPORT - Tug Greer

KPOG Intervention in Utility Rate Request Increases

~1996 request: The Public Service Commission (PSC) approved less than half of requested increase to Kiawah Island Utility (KIU), but KPOG felt PSC did not pay due regard to KIU being wholly owned by developer, with same management, rather than independent utility management to protect interests of rate payers, and that certain costs borne by rate payers should be borne by KRA.  Thus KPOG appealed, as expected.  Lost at Court of Appeals level;  proceeded to appeal to state Supreme Court.  Hearing scheduled for June 22, 1999.  This should settle key decisions.

~1998 request: Has about run its course.  About 61% of requested increase was approved, with greatest increase going to consumer of large quantities of water..

KIU requested rehearing from PSC, which was denied; originally approved rates will stand unless appealed.  This case is pretty much finished, but KPOG has to keep it open through June 22, 1999, because of potential impact on 1996 request if appeal is successful.  Greer acknowledged huge debt owed to Wally DuBois and Dick Sayers, who have participated in KPOG’s water rate interventions since 1985.

KPOG’s Financial Status
Interventions are not without pain, and KPOG is in financial pain.  Greer said he could be diplomatic and say it’s time to build up the reserve fund, but the fact is KPOG is “almost broke.”  On 3/1/97, KPOG had $58K in reserves; on 3/1/99, new board thought had about $25K, but legal bills from December thru February of about $15,000 reduced reserve fund to about  $9,700.  Other items contributing to depletion of funds included $4,500 to send out report of ad hoc committee's report on annexation/extension of covenants.  Provisions not made for building up the reserve fund. 

Budget for 1999-'2000 presented by previous board at February annual meeting only had $812 excess revenues over expenses. Budget included $20K in  “legal” line item.  There have been $10.5K legal fees through 4/12/99, with appearance before the Supreme Court yet to come, so line item will probably be exceeded.. 

When KPOG begins a new fiscal year, there has to be some money in reserves to draw on for first few months until dues start to come in.  KPOG will send letter to all members in the near future to outline financial situation and ask members for a “handout,” since new board felt it would be inappropriate to increase dues from level set at annual meeting.  Letter will explain the straits in which KPOG finds itself and explain why board believes money has been well spent.  For example, since 1985, KPOG has spent between $125K and $135K.  Over that same period, $4.4M has been saved for rate payers.  KPOG cannot take credit for all of it, since it’s likely PSC would have disallowed some part of requested increases, but if KPOG takes credit for only half the savings, that’s $2.2 million.

This is not the first time KPOG has had to ask members for additional funds. KPOG has been a deterrent over the years.  To be effective, must have a sizable reserve fund and be willing to use it.

Kiawah Island Utility Study
KPOG board would like to see a study of the utility, as gathering information about issues such as

• adequacy of water supply through build-out

• alternatives at build-out

• plans KRA has

• what other small communities like ours have done

• developing system for all parties concerned about rate increase to get together BEFORE going to PSC to avoid incurring large legal bills in contested increases. 

The latter used to be done, and in 1990 agreement was reached before rate increase request was submitted, so KPOG could support it before PSC.  In 1992 there were irreconcilable differences re: lack of separation of management between KRA and KIU, with KRA making decisions in its interests, rather than those of rate payers.

Greer would not ask study committee to make recommendations about takeover of utility, but just to gather information.  KPOG feels town should undertake this, as had been suggested by councilman Bill Miller, and define scope in such a way to be non-threatening to KRA about a takeover.  If town does not conduct study, KPOG will, in similar fashion to role it played in studying the pros/cons of incorporation..

Research Committee
The board has approved appointment of Ken Dando, Bob Hoopman, John McGough, Fred Parsons and Rita Yaeger to  Research Committee, which has not been operational in last few years.  Committee members’ responsibilities include keeping their ears to the ground for problems, presenting to the board issues they have determined they should study.  Board will determine priorities for addressing issues.

Gang of Four
Despite efforts to rename this group "Coordinating Committee," people persist in referring to it as "Gang of Five," which has become Gang of Four, Buddy Darby having declined to participate or name a representative for KRA.  Representatives of KPOG (President Tug Greer), the town (Mayor Jim Piet), KICA (KICA President/POD Vaughan Delk) and the resort (Managing Director Prem Devadas) have met once.  Group began to look at broad range of problems cutting across all entities' responsibilities, such as Bohicket Road and its attendant problems, and short-term visitor problems.  Coordinating Committee is another way of opening communication between groups on island.  Will meet every two months or so.

AT&T Billing
Greer encouraged all who have AT&T as long distance carrier to check their bills for a “municipal license fee.”  Anyone interested in contact information for getting this charge, which is not levied by town, removed from their bill should contact Greer.  Greer has written a letter to AT&T urging them to correct their billing rather than wait for individual customers to complain. The town has written a similar letter.

www.kiawah.org
The KPOG website is a vehicle for people to get news quickly.  Home page provides hot links to the websites of the town, KICA and the resort.  There are plans for each of these sites to establish reciprocal links to kiawah.org.

Volunteers
Greer requested anyone interested in volunteering for the following positions notify him as soon as possible:

• assistant KPOG treasurer - would also become a board member

• volunteers to help with Kiawah Island Talk

• chairperson for the Friendship Committee, to fill need for an “angel” to replace Fran Horvath. Committee helps Kiawah neighbors in distress due to illness or other problems by providing meals, rides to doctors, etc.Our thanks to Fran, who is leaving Kiawah.

GUEST SPEAKERS
Greer outlined procedure to be followed for guest speakers from the town, the resort and KICA: 15 minutes each to speak followed by 3-4 questions,  with availability to answer additional questions at end of meeting.  Buddy Darby was invited to speak for KRA, but declined, indicating he had a briefing scheduled for property owners.

PREM DEVADAS - KIAWAH ISLAND RESORT
Devadas, who said he was speaking as one of 264 new KPOG members,  noted there is not a lot new and exciting for him to discuss.  He preferred making brief comments and devoting most of time to answering questions.  The resort has had a good year for first six months.  Rates for Inn and villas continue to go up in pretty dramatic fashion.  The perceived value of the island may be due to something VIT has done.  Renovation plans began last year, including $1M in expenditures, an amount to be duplicated this year.

By the end of the week, Devadas expects an architect will have been selected for the new clubhouse at Turtle Point.  It is envisioned to be less formal than the one at Osprey Point, having a nice grill with a lounge area and taking advantage of the views.  Plans also include a better pro shop, more like the one at Osprey Point.  He hopes for November/December ground-breaking, with 12-13 months for construction.  Turtle Point greens will also be redone, necessitating its closing for a period of time next year.

The resort is also looking at redoing Cougar Point clubhouse, along with needed improvements to tennis courts, Inn, and new meeting space and offices.

Work has been started on site planning for Oak Point clubhouse; hopefully it will get under way early next year and be done within 12-13 months.  There may also be improvements to the golf course.  The Ocean Course clubhouse needs to become much more world class, but there are no plans on the drawing board at this time.

For third consecutive year, the Inn received 4-diamond rating from the AAA, as did restaurant at Osprey Point clubhouse for year 2000, based on this year’s inspection by an anonymous rater.  Devadas noted it is rare for a public facility in a resort to receive a 4-diamond rating and credited Chef Matthew Neisner and General Manager Chris White for helping achieve it..

Q&A

»Tom Nelson asked about plans for the tennis program.  Devadas said he had just walked West Beach Tennis Center (WBTC) with Roy Barth that morning.  Replacement and painting of fences is planned.  Although pro shop and surrounding landscaping are not in good shape, resort is not inclined to spend money there until it decides what to do at West Beach.  Irrigation changes probably will be done, with replacement of some asphalt pathways in backwith sod, creating a courtyard.  New pathways of stamped concrete at Inn will be like those will be done at WBTC.  Entire space will not be treated until master planning for West Beach is finished.  No major changes planned for Each Beach, mainly because of East Beach hotel project. Consideration will be given to additional courts, redoing pro shop and possible stadium court.  Barth continues to look at Governor’s Club benefits for tennis and works with the resort’s advisory group.

»Bill Mulligan asked about status/timing of new hotel.  Devadas said OCRM & DHEC have approved latest plans, but decision has been appealed; it could be anywhere from six months to two years or longer before final decision.  Resort is hopeful of OCRM ruling being upheld.  He acknowledged paying legal fees is part of doing a project like the hotel.  There are no changes to hotel plans for approximately five stories,  350 rooms/suites in luxury setting.  Resort continues to work with town on either zoning variances or a development agreement (DA).  The hotel issues has held up everything for the last two - three years; the resort is now moving forward with certain things not dependent on new hotel.

PETER TREES - KICA PROPERTY OWNER DIRECTOR
Trees noted he has served 55 days of his three-year term as property owner director (POD).  KICA board is composed of four developer-appointed directors and three elected PODs. In addition to general responsibilities, Trees is liaison to the Major Repair/Replacement, Landscaping, and Covenant Compliance Committees.  Trees reviewed several issues before KICA board.

Drainage contracts with VIT: Contract for renovation work done at Cougar Point in 1996 is being signed off on.  Point of contention regarding depth of new lagoons and sedimentation left in culverts after project finished.  Negotiations have been long and arduous, but always amicable, with VIT.  Regarding drainage at new hotel site, much work needs to be done; KICA far from ready to sign a contract.  KICA’s responsibility is to ensure there are no negative effects on nearby property owners.from run-off at hotel

Trees noted good relations between KICA and VIT.

New pool at Recreation Center: Existing pool is 22 years old, needs repair, and land around it is eroding.  Options are to patch or replace, with cost estimates ranging from $150K to $840K.  KICA’s Finance Advisory Committee (FAC) has been asked to identify spending/funding options for consideration at board’s June 8th meeting.  Board already approved Rec Center Operating Committee request for $50K for design and engineering.  Trees said maintaining Rec Center in outstanding shape is important to all property owners, who should be prepared to pitch in and pay their share.  Balance needed between operating funds and user fees.

Landscape Revitalization Plan: Proposed plan includes: expansion of irrigation, sprucing up of landscaping, reducing grass areas and using native plants, upgrading cul-de-sacs, greater defined sense at intersections; buffer areas between developed and undeveloped lots.  Cost is estimated at $1.3M. 

Funding of pool is board's first priority.  Landscape Committee needs to work with FAC to develop funding/spending plans.  Trees said landscaping supports quality of life and property values on Kiawah.

Long Range Planning: After 27 focus group sessions, subcommittees composed of 87 property owner volunteers are developing optional solutions to recommend to nine standing KICA committees.  Additional volunteers are needed.  Once committees can agree on what will be done; many recommendations will require board action. Trees sees LRP as critical to Kiawah’s best chance to be what it wants to be in future.

Town/KICA relations: Number of cooperative initiatives under way: regular meetings between town council members and PODs, with open informal discussion of issues leading to solutions; joint effort of KICA and town in test plantings of sea beach amaranth; board working on Mayor Piet’s request for input on issues to be addressed in upcoming negotiations with resort re: DA.  Trees says it’s important for the two organizations to do the job of governing.  With foresight and determination of Piet and POD Vaughan Delk, both organizations are on road to doing what they should be doing.

Personal observations after 55 days as POD: Other PODs over the years have been hard-working bunch.  Now developer has backed away from day-to-day operations, leaving them to PODs and staff.  Joe Bunting, very capable leader, heads a good, strong staff of 82 employees.  KRA directors provide vision, counsel and advice.  Trees believes Kiawah is lucky to have a developer who cares about quality and future of island. He noted it is the strong committee structure which really runs KICA affairs.

Q&A:

»Jimmy Smith asked status of  blue and red pipes from second gate down Governor’s Drive. Trees said first US Cable, then Berkeley Electric, put in cable, each in a different trench.  Then KIU installed  a water line between second gate and Surfsong Drive.  Trees didn’t know why it was taking so long, but thinks it’s coming to a conclusion.

»Carol Fishman said people wanted various kinds of gates in various places and asked Trees to comment on this.  Trees said Delk handled the official stance well at last board meeting.  Rhett’s Bluff people want a gate and are prepared to pay for it.  They went to KICA Safety & Security Committee, which passed a recommendation, on a 6-2 vote, for board to put in gate.  After Delk talked with KICA Director of Security Bill Westberg, it was determined more information was needed.  Letters from other Rhett’s Bluff residents suggested desire for gate is not unanimous.  Concern expressed about island being cut up into sub-communities, which might not be good for Kiawah.  Need to determine where Rhett's Bluff traffic is coming from and how it got there. A  90-day study period has been agreed to.  All Rhett’s Bluff property owners contacted after board learned from reading Talk that nine people had not been contacted.

Trees’ position is that Rhett’s Bluff is a sufficiently singular example that it could afford to have a gate.  Summer Islands might be close behind.  Fortunately, a vote wasn’t taken at last meeting.  Trees is prepared to reconsider after 90-day study.  Sense of board is negative toward installing Rhett’s Bluff gate.

JIM PIET - MAYOR, TOWN OF KIAWAH ISLAND
Public hearing on town’s ’99-’00 fiscal year budget: For fiscal year ’98-’99, income will be greater than expenses by about $900K.  Budget for next fiscal year projects $450K income over expenses without property taxes, from collection of fees and licenses which would, for most part, go to other agencies/municipalities if Kiawah didn’t collect them.  Revenues over expenses are about $100K more than a year ago.

Town council is dedicated to conservative management of expenses with fair administration of revenue collection.  Some have predicted town’s financial condition would deteriorate; this has not happened.  Piet said town has most economical provision of services for revenues collected.

Roads & Bridges:

• Regarding curb cuts along Kiawah Island Parkway, width of lanes for entrance to Cassique, new golf course KRA is constructing, needs to be agreed on.  Town knows where new shopping center will be, but doesn’t know about proposed roundabout or other three curb cuts.  Town will try to keep parkway as free of congestion as possible. 

• Several entities (Kiawah, Seabrook, the Johns Island Commission and the Ministerial Alliance) have requested that county study extending four-lane highway from Betsy Kerrison Parkway to Maybank Highway.  Rural Transportation Alliance has refused to support this.

• Nothing new re: replacing two Johns Island bridges.  Request has been made for bridges to open only on hour and half hour.

• Chances of getting federal funds for extending route 526 to James Island have improved. Progress on roads goes slowly.

Property Reassessment: Properties in Charleston County are scheduled for reassessment next year.  Town has been trying to get legislation passed which would give local counties ability to delay reassessment for one year and permit a 15% cap within five-year period where no change of ownership.  Otherwise, taxes will almost double on Kiawah.  State senate has passed the legislation; the house will consider it as part of next year’s budget, which must be approved by the first week in June.  Our local representative, John Graham Altman supports the legislation.  Piet encouraged everyone to write to legislators in Columbia, urging their support.

New hotel: Town appreciates input from citizens at recent public hearing.  Town council is trying to draw a circle around all issues and items; awaiting KICA input.  Not all suggestions will necessarily be included.  Council will meet in executive session soon to review, and then serious discussions with resort can begin.  Town will not wait for ruling on appeal before putting DA together. 

KIU: Piet said he has no trouble with town studying certain issues re: utility, such as assurance of sufficient water supply, things that can be done to work more closely with utility and avoid legal fees for water rate increase requests, which property owners end up paying for one way or another.  Piet believes some day town will own utility, but thinks it is premature to take over utility now or seriously study doing it.  Acknowledged council members not infallible.  Anyone disagreeing with his position should communicate their reasons to Piet.

Q&A:

»Tug Greer asked if the roundabout had been approved.  Piet said VIT and KRA have decided KRA will own shopping center, roundabout will be in or adjacent to it.  Buddy Darby has said KRA plans for a roundabout.

GENERAL Q&A

Beverly Pawson-Liebman asked whether KICA members who don’t reside IN or own property on Rhett’s Bluff will be polled for their opinions.  She noted Rhett’s Bluff includes historic and natural areas, as well as a community boat landing and gazebo and should be accessible to all KICA members.  Trees didn't think there are any plans to poll everyone, but Rhett’s Bluff would be accessible to all property owners. Trees knew of no intent to prevent this.

Carol Fishman asked about access to Rhett’s Bluff for guests of property owners.  Greer noted that with guest pass they can go anywhere property owners go. It is his understanding property owners would have something on their bumpers which would raise gate, but this would exclude property owners’ guests.  Trees said he doesn’t like bar code stickers like the one at the second gate and doesn’t have one on his car.  There would have to be some provision for property owner guests.

Fishman noted anyone could go through the gate on pedestrian basis.  Gate would not prevent bikers, which may be why it’s not a good idea.

Don McIver questioned access to island for non-property owners.  Noted Seabrook Island Realty ad in Sunday’s Post & Courier, “Use Kiawah ... live at Hope Plantation.”  McIver suggested putting ground rules for access to island in Talk, and suggested this as a topic for KICA and KPOG to look into. Trees guessed Hope Plantation property owners were Governor’s Club members; loud chorus of “no” from audience.  Trees said he knew of no reciprocity with Hope Plantation to use Kiawah facilities.  Tom Cowen suggested ad might mean Hope Plantation owners have access to public beach at county park on Kiawah.

Trees said theoretically people cannot get in through our gate and go anywhere on the island.  Access is limited to commercial properties and resort golf courses. People should not be able to use a pass to a particular destination to go anywhere else on island, but there are not a lot of security patrols to enforce this.

Greer noted this has always been a problem.  Access has been tightened up over the years, destination and time of issuance added to guest passes.  No matter what is done, there are always ways to get by the rules  Access could be tightened up even more through stricter enforcement.  Now, property owners and their guests, contractors, and people playing golf or going to the restaurants have access through second gate.  Devadas noted that golfers must have tee times, which are checked at second gate, and restaurants must call in names of guests in order for them to pass through second gate. 

Piet thanked Westberg and his crew for good job they do.  His scanner runs 24 hours/day, and he hears lots of people getting tickets for illegally going through the gate.  He people who see someone with a wrong pass or in the wrong place to notify security at the front gate..

Another property owner inquired about nature of most recent burglary noted in Kiawah-Seabrook Connection, asking if contractor work isn't prohibited on Saturday and Sunday.  No one was able to answer question, but Greer noted contractors are supposed to be off the island some time Saturday afternoon.  However, ARB can, whenever it wishes, give permission for work to be done on Saturday or Sunday.  Greer encouraged anyone who sees contractors where it appears they should not be, to call main gate security to investigate.  Greer’s experience with security, after many years on Safety & Security Committee, is that they are very good about controlling contractor access, but it's prudent to bring concerns to their attention.

SENSITIVE ISSUE - Tug Greer

Greer noted one purpose of KPOG is to identify problem areas and, if worthy of study, to do so.  One problem is so sensitive, people tend to avoid it, but it has to be faced up to in order to correct it.  That problem is the one existing between Kiawah Island Club, Governor's Club and non-club members.  Greer said his comments are strictly his own.  He began to discuss this at the last KPOG board meeting but ran out of time.  He characterized talking about the subject as “tiptoeing through a mine field.”

Greer said one of the biggest plusses to come out of the KICA long range planning process was focus group sessions conducted by professional facilitator, Catherine Musham.  Opinions of all types came from a variety of property owners.  As he read through reports of each focus group, Greer found problem between Kiawah Island Club/River Club and Governor’s Club came up repeatedly.  He read some of the quotes: “polarization of club groups creating antagonism among people who were previously friends and neighbors;” “presence of River Club has created social tension;” “establishment of River Club has split island into 2 social groups that do not mix.”  Greer said some may disagree that this is a problem, and some may be surprised to hear it.  For others it has been agonizing, particularly if they belong to both clubs.  Some have talked of being shunned.  No one should have to be ashamed of or defensive over their club affiliation.

Greer said in his experience in the army, problems sensitive to race/gender are addressed early in training.  Eight weeks of basic training cannot change peoples' biases, but it can change behavior.  Sensitivity training can show what irritates others so people can make sure they don’t do those things.  On the other hand, on Kiawah, whatever attitudes have developed have been learned in a short time; the problem is not ingrained, so should be able to get things back on track.

Greer suggested starting by agreeing that establishment of a private club on Kiawah was a good thing because so many people obviously wanted it.  The problem lies not with decision to have a private club but in behavior of members of both clubs.  Maybe property owners need some sensitivity training.

“Accentuate the positive; eliminate the negative” was Greer’s recommendation.  Two negatives are careless and insensitive remarks and tendency to stereotype.  Examples Greer cited were a comment made to a River Club member who attended a Thursday night dinner at the Rec Center (“Slumming, I see?”) and statement by a River Club golfer to a Governor's Club golfer ("Are you still playing the public courses?").

Other negative comments concern snobbishness of River Club members in groups, but not individually. Comments have been made that at a party composed mainly of Governor’s Club members, the few River Club members sit together and don't mingle.  Greer posited that when you enter a room filled with people you don't know, you usually seek out people you do know, which is natural and not an indicator of snobbishness. The same thing could easily occur at a River Course party attended by 3 Governor's Club couples. In order to be sensitive to the problem and improve things, people should put more effort into mixing. Equally insensitive are comments that Governor’s Club members don’t join the River Course because they can’t afford it and hence cannot afford to live on Kiawah.

Greer encouraged everyone to be more sensitive.  Think before speaking.  Make an effort to mix when the occasion permits. We need to return to civility in every day dealings.  The insensitive acts of a few should not automatically brand all members of a club.  Avoid the tendency to stereotype.

Greer related that in last town election, Common Sense candidates and supporters were almost all River Course members.  Whether one agrees or disagrees with Common Sense is not important here.  The tendency was to label all River Course members with the politics of the Common Sense group, and the reverse, to assume all Governor's Club members think alike.  Neither River Course nor Governor's Club is a monolithic organization.  Individuals don't think alike just because they belong to the same club. Let’s accept that some people like private clubs and some don’t.

Greer said if we accentuate the positive, we recognize that we have far more in common than that which divides us: for instance, we all love Kiawah and the natural beauty of the beach, and we all hate no-see-ums and increased traffic.  If we build on what we have in common, we build a sense of community amongst River Club members, Governor’s Club members and people who don’t belong to either club.  Look at all the activities on Kiawah such as Alternatives, Turtle Patrol, KPOG, the Nature Conservancy, gourmet and dinner groups, Garden Club, Book Club and other clubs, and work with Habitat for Humanity.  These all cut across social club lines and we mix and get along fine.

Greer concluded by saying perhaps we need more socializing between the various groups.  We should build on the precedent set by the Men’s Golf Association and River Course golfers who get together once a year.  Perhaps KPOG could put greater effort toward building a sense of community.  Encourage people to participate in POPS parties, the Christmas tree lighting, and neighborhood block parties. Be sensitive to the potential problem with what you say in a loose moment.  Mix more at parties.  Stop stereotyping. Join community activities.

Meeting adjourned after a little more than 1 1/2 hours.