KPOG

 

 

Kiawah Island Property Owners Group

2000 Quarterly Meetings

2000 Board Meeting Minutes

December 11, 2000, Quarterly Meeting

President Browning Crow welcomed all present and thanked the resort (KIR) for providing the meeting room.

Treasurer's Report - Don McIver

McIver was brief, with only good news.  KPOG has $48K in the bank and all bills have been paid.  The budget is on course and there are no surprises.  Anyone wishing a copy of the latest financial statement should contact McIver.

Membership - Wendy Kulick

Year-to-date membership is 1396, bringing in more than $57K in dues.  There are 172 new members.

President's Report - Browning Crow

Crow's report focused on unresolved utility matters, which have taken up a great deal of this year. Some have been delayed so the management audit ordered by the Public Service Commission (PSC) can be completed.  The scope of work of the management audit is under discussion; Crow hopes it can be completed in the next several weeks.

Kiawah Island Resort
- Jon Weitz

Weitz, Director of Development, stood in for General Manager Prem Devadas, who was out of town, and gave an update with a look ahead at the first quarter of 2001.

  • Turtle Point
    Golf course renovation completed, with greens changed and moved, some holes relocated and bunker work done. A learning center will be built adjacent to the driving range, and will have classrooms, video swing analysis and covered outdoor hitting bays.  Completion is anticipated by mid-February, or perhaps the end of January. Construction of new pro shop has begun and is expected to be completed by November or December, 2001.  It will include a casual restaurant and a 19th hole bar for casual drinks, featuring a laid back atmosphere.

  • West Beach
    Renovations to the Inn, including enclosed breezeway, upgraded restaurant and lobby bar, have been completed and KIR has been very pleased with all the positive comments.

  • Cougar Point
    A new clubhouse is on hold until the East Beach hotel has been completed; it was believed there would be too much disruption if both projects were done simultaneously.  Landscape around current clubhouse will be upgraded and a small grill added. Additional parking at West Beach Tennis Club is to be added between the Tennis Center and the Straw Market next year.

  • East Beach Hotel
    KIR has worked over last year to resolve hotel challenges.  All environmental ones have been resolved, as have problems with adjoining property owners and neighbors.  There are still a few meetings to be held with regimes.

    Weitz thanked KICA and the town.  KIR has worked diligently with both to ensure no negative impact from drainage and to ensure the hotel has a positive impact, and will continue to do so.

    From a pure hotel architectural standpoint the building has changed over the past year.  It is now a 4-story hotel and a less massive building.  The landscape has been changed and become more Kiawah-esque, with a focus on native plant material and indigenous species.  KIR feels strongly this is the right direction for the hotel.

    The opening of the hotel is tentatively scheduled for January 2003.  KIR hopes wetlands creation - as part of the environmental resolution, KIR agreed to create about 3.5 acres of wetlands on the west side of the property buffer - will begin in January, with site work some time in March of April of 2001.

Questions/Answers
Marty Maghakian asked if something could be done to make the entry to the pro shop at West Beach Tennis Center more appealing. Weitz indicated KIR hopes to redo pathways in the area when work is done on the parking lot.  Roy Barth has major concerns about safe entry into the pro shop.

Carol Fishman asked about the status of previously proposed work at the Ocean Course. Weitz noted that a lot of people have heard Devadas, Tommy Cuthbert and Weitz talk about what Pete Dye would like to see done there.  Noting that #4 at the Ocean Course was recently named one of top 100 holes in the country, Weitz said Dye thinks he can make it better.  However, there is no resolution yet re: modifying greens and decisions about turf and minor changes to the course.

Chuck Cusick asked about the impact of increased traffic resulting from the new hotel on Kiawah Island Parkway. Weitz replied that based on traffic studies done several years ago, turning lanes will not required at Sea Forest Drive.  Weitz thinks turning lanes would destroy the look of Kiawah, but if mandated, they will be put there based on actual results once the impact on traffic is known.

KICA - Property Owner Director Bill Wert

  • Financially and physically, KICA is in good shape.

  • Short-term Visitors
    KICA is continuing to work with the town, rental agencies and citizens to come up with an equitable solution for all.

  • Charleston County 15% Tax Cap for Owner-occupied Properties
    KICA has been asked to take action on behalf of some non-resident property owners.  Wert noted that KICA had decided not to take sides at this time, not to provide financial support for legal action and not to provide mailing lists.  He did indicate KICA would mail letters submitted to KICA.

Questions/Answers
Tom Nelson asked the board's reasoning on its stand re: the 15% cap. Wert said the KICA board felt it didn't have enough information now.  It is gathering information on the impact of it.  It is an emotional issue which could be divisive.  The board doesn't have the desire for action to be taken.  However, board members will talk with non-residents who are on Kiawah over the holidays.

Patrick Casey followed up on a question re: the Vanderhorst security gate raised at the KPOG-sponsored Meet the Candidates Night before the town election.  It appears to be a "pass through," which is very different from the "lock down" at Seabrook. Wert indicated the KICA Safety and Security Committee is looking at it.  Just the other day a fax was received from a property owner asking why people behind the second gate are paying more, when it isn't a valid gate.  Wert noted we don't want it to become a police state.

Wert deferred to Mayor Jim Piet when Lou Anderson asked what more could be done re: the 15% tax cap.

Town of Kiawah Island - Mayor Jim Piet

Piet thanked all those who voted for him and promised to do his best to serve all.  Piet provided an update on two of the four subjects he identified as important to the town at Meet the Candidates Night.

  • 15% tax cap
    Charleston County passed the cap only for owner-occupied property.  In February notices of new appraised value and new assessed value will be sent.  This should not be more than 15% higher if property is owner-occupied and already classified in the 4% tax group. The millage rate won't be known until February, so it is hard to know exactly how much taxes will go up.  Piet estimates taxes for owner-occupied homes will go down about $500 on average, however non-resident taxes will probably double.

    What can non-residents do?
    > Change their residence and have property become owner-occupied.  Anyone considering this option must do so by December 31, 2000.
    > Accept higher taxes and raise rent, if property is rented.
    > Sue the county because they have not been included in the cap. The county believes it is on sound legal ground, citing legal precedent of the 4% for residents/6% for non-residents split currently in existence.  State Attorney General Charlie Condon also thinks the 15% cap for owner-occupied homes is legal.
    > Sell their property, which might cause property values to drop.

    This could be a very divisive issue.  In the unlikely event part-timers were to sue the county and win, it could have the effect of eliminating the 15% cap altogether, which would stay in effect for another five years.  Piet suggests part-timers become residents of Kiawah and seriously consider the ramifications and potential "boomerang effect" lawsuits could have.

    The town will work with state representatives and senators to pass a law with better changes in real estate taxes, whereby any residential property taxed at fair market value when purchased would stay at that same rate until sold.  The town will do everything it can to have other forms of taxation replace real estate taxes.


  • Bridges and Roads
    Construction on the replacement for the Limehouse Bridge is scheduled to start after January 1, 2001, and should take about 2 ½ years to complete.

    Stono River Bridge construction bids will go out in January.  Piet hopes construction can start quickly after that.  Charleston Mayor Joe Riley opposes the bridge construction because money has not been provided for a golf cart bridge at the municipal golf course. Executive Director Elizabeth Mabry of the SC Department of Transportation doesn't agree with Riley.  The issue will come up again at the CHATS meeting in January and Piet hopes it will be resolved.

    Last year a $125K study was conducted re: best way to deal with road problems on Johns Island.  The town is working with Seabrook and three Johns Island entities on this issue.  Potential solutions include 4-laning Bohicket Road, 4-laning River Road, and building a new road between the two.

    Piet thinks the third option, a new road coming out on Maybank Highway near Pelican [now Builders First], is the best one, but it won't be easy to accomplish.  There are wetlands about which there needs to be concern and farmland which runs in strips east to west and perpendicular to Bohicket Road.  There will not be an expressway or a toll road, but the design will probably be for a 50-mph road.  There won't be any conclusion for a few months.

    Mayor Riley and the City of Charleston have held up extension of the Mark Clark Expressway because they want to keep Johns Island rural.  The ½% sales tax, planned to raise money for roads, was defeated, and the county's Uniform Development Ordinance (UDO) is in trouble.  Piet hopes Riley's position will become known in January at the CHATS meeting.

  • Roundabout at Betsy Kerrison Parkway and Kiawah Island Parkway

KRA and KIR are discussing where the intersection of the two roads will be and where the shopping center will be.  Piet thanked KPOG Vice President Patrick Casey for spearheading the town's efforts in this area.  Piet hopes this will be resolved in the first quarter of next year.

Question/Answer
Martin Coyle said he thought everyone would be treated the same until the tax cap was reached. Piet said theoretically the total amount of money that the county collects would stay the same.  As the value of property goes up, the millage rate has to be reduced to offset it.  If owner-occupied properties are capped on taxes but property owned by non-residents and commercial properties were not, the millage rate would come down for owner-occupied properties.  Piet thinks if all residential property had been capped and commercial property wasn't, the Chamber of Commerce would sue the county.

The only option the state gave the counties was to cap ALL properties.  Charleston County decided to cap only owner-occupied properties because of the legal precedent setting lower taxes for owner-occupied properties (4%/6% split).

Tom Nelson asked the status of the Blue Ribbon Commission on the short-term visitor situation. Piet said Charlie Lipuma and he have been working on it, i.e., who would serve and what the structure would be.  The new Town Council must decide if it will proceed.

Piet noted the Town Council bridges the gap between its legislative council and the mayor's administrative organization.  Different council members get different areas of coordination in which they function as go-betweens.  Piet will separate out the 4 issues discussed at Meet the Candidates Night.  One council member will be responsible for working with Lipuma on the BRC and short-term visitor issue.  At issue is what balance we want to strike between residential community and resort activities.  It is a key decision.

Other Business

Crow announced that anyone interested in serving on the next KPOG Board of Directors should contact Stan Novaco, chair of the Nominating Committee.

Wert announced that Avril Fenwick and Marty Yonas were selected by the KICA Nominating Committee to run for the two open property owner director seats.

The meeting was adjourned after an hour and a quarter.

September 25, 2000 Quarterly Meeting

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President Browning Crow welcomed all present and thanked Prem Devadas & Kiawah Island Resort (KIR) for providing the meeting room and refreshments for the meeting.

TREASURER'S REPORT - Don McIver

McIver noted KPOG is "very liquid;" about $55K in the bank & virtually no liabilities. Net income of $34K on target for year. Legal expenses are less than anticipated, but there are still 6 months to go in fiscal year. For the first time, this year the town will give KPOG assistance in paying for matters relating to the utility rate cases. 90% of budgeted dues for the year have been collected. Expenses are at about 43% with 50% of the year over. Financial affairs of KPOG are in good shape.


MEMBERSHIP - Arnie Liebman

Year to date (YTD) membership is 1379 (about 100 less than last year at this time), with 156 new members. 244 members from last year have not renewed. This would seem to be primarily a function of turnover on Kiawah. The phone directory last year also helped increase membership.

PRESIDENT'S REPORT - Browning Crow

  • Folly Beach Groin
    October issue of TALK reported on demise of groin construction project at Folly Beach. This is good news for Kiawah. The project was dropped largely because of the efforts of town council member Beverly Pawson-Liebman. All Kiawah owes her their thanks.

  • Posting of KPOG Meeting
    KPOG asked KICA to post the date, time and place of this quarterly meeting at the main gate, as has been done for many years. We were told, however, that messages could not be posted because there is a KICA committee studying "permissible messages," and the study is not complete. Messages may be limited to KICA activities.

    KPOG hopes KICA will include posting KPOG's meeting announcements in the future. We see no reason it cannot be done. If the message board is too small, get a new one.

  • KIU Special Report
    The Public Service Commission (PSC) issued an order stipulating staff should meet with representatives of KPOG and KIU to coordinate management audit. The initial meeting is scheduled for November 3, 2000.

    Re: KPOG's appeal to the South Carolina Supreme Court of KIU's 1996 rate increase, on September 7, 1999, after 2 ½ years, the court reversed and remanded the order of the lower court's decision. KPOG has just recently received the PSC's September 1, 2000 response, which is 47 pages plus index and is currently being reviewed.

TOWN of KIAWAH ISLAND - Mayor Jim Piet

  • Kudos
    Piet also recognized Pawson-Liebman's work to get the Army Corps of Engineers to drop its support of a permanent groin at Folly Beach. He also thanked the Community Association (KICA), KRA, the resort (VIT/KIR), the Kiawah Island Natural Habitat Conservancy (KINHC) and many property owners, who all voiced opposition to the groin.

    Due to efforts of Town Administrator Allison Harvey, effective October 1, 2000, the Federal Emergency Management Agency (FEMA) will lower Kiawah's flood insurance classification from 8 to 6, providing a 20% reduction in rates. Harvey coordinated her efforts with KICA, KRA, VIT and KINHC.

    Councilman Jack Pulleyn organized and held meetings with as many property owners as possible to discuss emergency preparation procedures. Piet is confident the number of meetings enabled as many property owners to attend.

  • 15% cap on property reassessment
    Piet did not review the history of the push for a cap on reassessment, covered at the last quarterly meeting. In June 2000, the state passed a law giving all counties the option to pass a 15% cap on reassessment. Other options included having (1) no cap and conduct reassessment at current values; (2) a cap on all property (residential, commercial and industrial); or (3) a 15% cap only on property owned prior to '93 and on which there has not been significant modification since.

    Charleston County eliminated (3) because of practical problems in administering it. It passed an ordinance adopting a 15% cap on all property and held a public hearing on the issue on August 31st, attended by more than 150 people; 90% supported the cap. Many spoke in favor of the cap, including Piet, Councilman Bill Miller and Planning Commission Chair Charlie Lipuma. Most effective speakers were older widows from downtown Charleston, who expressed their inability to maintain ownership of their property without a cap. In an unusual and politically motivated move, the county held a special meeting with the North Charleston City Council on September 12th.

    When the county's Finance Committee met on September 14th, 5 of 9 County Council members supported the cap. On September 19th, the council surprised everyone and delayed passage of the ordinance until it could study capping only owner-occupied property, not that owned by non-residents or commercial interests. The county attorney stated he thought this new proposed ordinance would be legal. By a unanimous vote, the council voted to delay voting on any ordinance until September 28th. At that time the county auditor would present the ramifications of the new ordinance to the county.

    Non-resident and commercial property owners would be worse off under the new ordinance because there will be no cap on their reassessments. The county must take some action by year end because reassessment was only delayed for a year.

    County Council members A.D. Jordan, Tim Scott (both up for re-election), Toi Estes, Leon Stavranakis and Charles Wallace as well as Kiawah's state representative John Graham Altman, state representative Bobby Harrell, and state senators Ernie Passalaigue, Glenn McConnell and Arthur Ravenel all supported Kiawah's position.

    Piet singled out Emerson Reed, a real estate agent from downtown Charleston, for his support of the 15% cap. Reed convinced many widows to be vocal in their support of a cap; he organized Kiawah, Seabrook, Isle of Palms, Sullivan's Island, Folly Beach & the city of Charleston to support the cap; and he kept everyone informed.

    Piet thinks it will be unfortunate if cap excludes non-residents. He urged support of our allies in county and state government. Any cap could be repealed next year if the wrong people are elected to County Council. Our taxes could double or triple if there is no cap.

Questions/Comments for Piet:
Lou Anderson asked what happened to the issue of pre-'93 owners and significant improvements to property.
Piet: County Council dropped this because it would be very difficult to administer when property was purchased, by whom and the kind of improvements made.

Tom Nelson: Will the school tax and lawsuit have any action/effect on the cap?
Piet: Not practically. Politically, the Chamber of Commerce, which has been fighting the cap vigorously, is using the schools as a reason to kill the cap. Piet believes if something is wrong with the 90-mil cap for schools, change it.

KICA - Property Owner Director Bill Wert

  • Miscellaneous
    Before beginning his remarks, Wert quipped there were more people at this quarterly meeting than the last, so maybe not posting the meeting worked.

    Financially, KICA is still healthy. Costs are under budget, and the association survived the summer weather & charity events on the island. A draft of the Kiawah Land/Lakes Guide to Land Management has been prepared. Covenant Compliance Committee (CCC) Chair Bill Gamble will manage this.

    Funds have been approved for new gatehouses at both gates, whether there is a welcome facility at Andell.

  • Short Term Visitors
    The short-term visitor issue, which Town Councilman Bill Miller is addressing with the town, was the subject of recommendations by two KICA Long Range Planning subcommittees. The CCC has been reviewing them. Representatives of the major rental companies serve on the subcommittees. Improvements being considered include tightening rules and regulations, communication and enforcement.

    KICA will hold quarterly meetings with the major rental agencies. KICA will enlist the town to deal with issues under its jurisdiction, such as garbage, and will review rules and regulations. Piet, Miller, Property Owner Director (POD)/ KICA President Pete Trees and Gamble have met. Some of the issues to be addressed include parking, noise, abuse of environment and communication. KICA & the town have been barraged by property owners, encouraged to write by rental agencies. Very few letters have been received from residents. Memo of understanding has almost been reached between KICA & rental agencies.

  • Cassique Decals
    At September 12th KICA board meeting, PODs voted to issue decals to Cassique property owners. The KRA directors abstained from voting.

    Wert said KRA approached PODs several months ago about issuing Kiawah decals to Cassique property owners. Wert said there would be less traffic tie-ups at the gate with decals. KICA believes Cassique owners should bear some cost to our roads and infrastructure. Paying "costs" for admittance is not a new idea. Wert says Development Agreement (DA) between town and KRA permits these decals. Because of perceived conflict of interest when KICA/KRA attorney are one and the same (which has been expressed in the past), PODs got separate attorney to review.

    Up to 275 decals could be issued. The Cassique Property Owners Association will handle administrative work. Each Cassique property owner will pay ½ KICA assessment for developed or undeveloped property, depending on status of it. Money will help fund security and rights of way. KRA will reduce number of lots on Kiawah by the same number as at Cassique. In addition, Wert says KRA will not seek decals for other developments, specifically Mullett Hall.

    Wert said negotiations were confidential, which was a "judgment call" by PODs. Wert believes they were correct in keeping negotiations out of glare of the public domain. He believes PODs reduced gate security work and preserved the sanctity of Kiawah.

Questions/Comments for Wert:
Tug Greer: Apologized in advance for lengthy comments. As non-resident property owner, has kept tabs via KPOG's website, TALK and, to a lesser degree, DIGEST. Feels PODs are letting property owners down. Suggested Wert check with former PODs such as Gloria and Don White, Tom Winkleman and Laura Pulleyn, not just take Greer's word.

Development agreement has hastened property owner control of KICA. Transition between PODs & developer: dual majority system on votes remains in effect until March 2001, when PODs will then have majority on KICA board.

Most of the time commercial interests and individual property owners' agree on things. 5% of issues cause problems, i.e., certain commercial activities which may not be in property owners' interests and some property owner activities which commercial interests would prefer not occur.

For years, PODs have worked for POD control. Always assumed there would be people willing to run for POD seats and Town Council, too.

Because of DA, PODs have more authority, which Greer thinks they are unwilling to use, to disadvantage of property owners. Greer believes Wert's comments - that PODs are working quietly behind the scenes, that KRA has been more cooperative and all are working for the good of Kiawah - reflect naïve point of view. When KRA had full control of KICA from '88 - '99, they didn't hesitate to use their control to run things as they wanted. Property owners had no choice.

KRA appears to be becoming cooperative because control is shifting. KRA is shrewd, smart developers, and experienced. They know what they are doing and do it well. They are slick as they can be and are out to make a dollar. Disadvantage PODs have is each POD serves a 3-year term, while 3 of 4 developer-appointed KICA directors have been on the board for 12 years. What they cannot get by control, they get by clever maneuvering.

At August KICA board meeting, board passed proposal concerning KICA committees, which Greer thinks are critical to the success of KICA, the most important thing KICA has. They provide guidance and the benefit of study to the board. KRA wanted to modify the Standards Manual of the DA. The new proposal provides for at least 1 and no more than 2 board liaisons, to each committee. There have been two liaisons for some time. Prior to August board meeting, as set forth in Standards Manual, KRA & PODs each name 1 liaison. Under newly passed proposal, KRA would be able to name one board member to each committee. Each liaison would name half the committee members. If only one liaison, what will the board do? It's important who selects those members. In addition to objecting to the change, Greer noted it was approved unanimously after having been discussed behind the scenes.

Two sentences fall out of old Standards Manual: "This policy will remain in effect until April 1, 2001. Thereafter developer-director co-liaison will have the right to select one member of each committee." Now, until end of DA, KRA can name 1 liaison who can name half the committee, not just 1 member. Greer feels property owners have given up an awful lot on this. Wert disagreed with Greer that property owners have "gotten hosed."

Even when board has only 1 KRA-appointed director, that director can decide which POD will serve on each committee. As of April 1, 2001, dual majority system of voting goes away. After then, no way to make changes unless both KRA and the town agree. Yet, Greer noted, there is no mention of these two sentences being dropped.

Greer also objected to KICA director (not the President) who went on tour of Kiawah with a property owner and KICA Administrator Joe Bunting. The director gave orders about cones, removing signs prohibiting concealed weapons, and landscaping changes to be made. No single director can give such orders, whether good or bad, or have separate authority regarding the affairs of KICA.

Greer quarreled with issuing decals to Cassique property owners for quid pro quo of money and KRA saying it won't ask for any more situations like this. These are not good reasons. The PODs should have just said no.

Greer feels it is a farce in stating that by KRA giving up 275 vested, authorized units, KICA "got" something. There are now 5504 vested dwelling units. KRA has indicated maximum it will ever have is about 4500. Since there are about 1,000 authorized units not intended to be used, giving up 275 of these means nothing.

No mention of constraints on decals. Cassique property owners should only go to River Course or Beach Club & back to Cassique. There should be specific instructions and they should be required to sign something that they will abide by these rules. They are difficult to enforce and, if there are violations, those Cassique property owners should lose their decals. Greer is concerned that decals will give Cassique property owners "run of the island."

Also sets precedent. When VIT develops rest of Andell, what will PODs say if asked for decals for Governor's Club members?

Greer also objected to turning over selection of KICA Nominating Committee members to the Operations Committee, at Buddy Darby's suggestion. Wert said Greer was incorrect. Greer took exception, since he had just read the procedure he described this same day in minutes of August board meeting, and objected to KRA having anything to do with POD Nominating Committee.

Greer faulted KICA President/POD Peter Trees for not permitting KPOG quarterly meeting be posted on sign boards at main gate. He has the authority, but is not using it.

Finally, Greer objected to KICA continuing to discuss issues behind the scenes. Property owners have right to know who is fighting for us, who has done their "homework" and who has not.

Wert said he didn't know whether he'd just been asked questions or been lectured. He took exception to being called "naïve." He said he did not just fall off the turnip truck and took Greer's comment as a personal affront.

Wert said it was Trees, not KRA, who asked for changes in director liaisons to committees, because he was tired of only 1 director showing up for meetings. Regarding committee appointments, Wert says every prospective KICA committee member is voted upon by entire board. He says next year PODs will have majority and can just say no.

Regarding Cassique, Wert says PODs feel what they did was right. Trees chose members of Nominating Committee and the other PODs agreed with his selections.

Wert believes to live in past means lessons to be learned; to live in the future is hope. Wert said between 1990-92 (before moving to island full-time), he would receive different documents about fights going on here; he found it hard to believe these people reported on the same meeting. He believes people should work together and not have arguments. Wert says he will "work my darnedest for peace and harmony" on Kiawah.

Wendy Kulick: First asked Wert if property owner who is not "blessed" by KICA Nominating Committee would still be able to run for POD. Wert said yes, that he was initially against Nominating Committee, that it would be tacit support for what establishment wants. But town election coming this fall and 2 PODs to be elected at next KICA annual meeting.

Kulick took issue with process PODs permitted KICA board to use to approve Cassique property owner decals. Wert had said PODs had known for several months that KRA wanted these decals, yet it was never discussed openly that negotiations were taking place. Kulick stated she did not expect PODs to discuss details of negotiations, but that PODs owed it to property owners to let them know negotiations were taking place. This was same problem with PODs discussing what they would seek as concessions if they sold KICA land in front of the Ocean Course to KIR.

She expressed disappointment with Wert as POD. She noted that when he asked her to second his nomination, he promised to provide openness re: how KICA conducts its business and he has not done that.

Wert said that VIT had approached KICA about the property, that Bill Goodwin had mentioned it at Kiawah 2000 meeting. Trees then sent memo to KICA committee chairs asking if they wanted to negotiate this. Wert says Pete Dye has not come up with final Ocean Course design and that Goodwin doesn't like what has been done so far. Wert said before any sale of land would take place, there would be plenty of discussion.

Wert said he has tried to be open and honest. He thinks he has fulfilled his promise. He has attended KPOG board and Town Council meetings. Wert said PODs made judgment call, and will take the paint of not being open; he thinks they did the right thing. He said he was sorry Kulick felt he had disappointed her.

Bob Feldman: Took issue with Wert's response to Kulick. Feldman said Kulick had asked why property owners were not informed about what was going on and that Wert hadn't answered her question. That was what Wert had promised; Feldman had been at the KICA annual meeting when Wert was elected and had heard him say it.

Feldman said property owners want to be informed of questions and issues before the board. As a property owner, he should have been told what was going on, even if he could not do anything to change the process or outcome.

Another property owner asked for clarification about access to island for non-Kiawah property owners. He said even though KRA has said it doesn't plan to use access for Mullett Hall, what is to prevent them from exercising same right as Cassique property owners have been given?

Wert said PODs have in writing that KRA will not ask again for decals in a bulk issue for access. Wert says KRA has right to provide decals for "a number of its guests." Greer said those are decals for VIP guests. Wert said they are VIP decals for guests.

Fran Maguire expressed concern about renters. It sounds to her like KICA has just cut it off and will just tighten up rules for renters. She says a number of people are disturbed, yet acknowledged there always have been and will be renters, but she doesn't think renters should spread into private residential areas. In '90, KRA salesman said there were no rentals in her area. She doesn't think board should cut off discussion.

Wert said 37% of property owners behind the Vanderhorst gate rent their homes. The KICA board represents the 80% non-resident property owners as well as those who are residents.

Maguire said this isn't the way it needs to be. Non-residents are not ones to live with ruination of island. Some people have left Kiawah because of this issue and she knows others who will be leaving. Wert agreed something has to give.

Maguire said she knows town will address issue in some way. She would like to think KICA would come forward. She believes some things should not be evenly represented.

KIAWAH ISLAND RESORT  - Prem Devadas

No report from KIR. Devadas was on agenda, but was unable to attend meeting.

NEW BUSINESS

Jack Pulleyn made general observation that there has been tremendous amount of correspondence to various people on island about draft ordinance re: rental property. Some of this correspondence, but not all, has been inspired by rental agencies.

What dismays Pulleyn is people being uninformed about who does what with what to whom on Kiawah. KRA isn't completely evil & Pulleyn doesn't want to disagree entirely, but what real estate agency tells someone may not be so. He noted in '84, agent told him there would be no commercial activity behind second gate at same time new golf course was advertised there. A number of people were told there would be 2nd property owners' pool for all property owners to handle overcrowding. A second pool was built, but it was part of a private club.

Pulleyn believes we must all take it upon ourselves to be as well informed as we can be about what has been, can and will be done on Kiawah. He noted two incidents that demonstrate misunderstandings people have. (1) comment that things were better on Kiawah when Landmark owned whole island [it only owned the resort and amenities]. (2) question from a property owner asking why KRA was taking her money to tear up her lawn and change golf course [the golf course is owned by KIR].

Maguire clarified that point was not that real estate agent said there would be no rental property; just because two different things are said, no one takes precedence.

ADJOURNMENT

Before adjournment after 1 ¼ hours, Crow thanked all those in attendance & expressed his belief the meeting had been positive; lots of questions were raised. Hopefully, we all have same goal in mind.

May 22, 2000, KPOG Quarterly Meeting 

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President Browning Crow welcomed approximately 60 members present and thanked Prem Devadas and Kiawah Island Resort (KIR) for providing meeting space and refreshments. 

Minutes from annual meeting in February approved without being read. 

TREASURER'S REPORT - Don McIver 

61.7% of projected revenue has been collected YTD, with 16% of expenses paid.  This is not unusual, since a number of budgeted expenses occur throughout year (i.e., monthly cost of producing and mailing Kiawah Island Talk) and revenue mainly comes in during 1st quarter. 

KPOG’s current total assets, including checking and savings accounts = $63,212.79. 

MEMBERSHIP REPORT - Director Arnie Liebman 

Total membership through May 19, 2000, is 1201.  115 are new members.  401 members (79 residing on Kiawah) from last year have not yet renewed.  Last issue of Talk included reminder notice for any non-renewing member.  YTD membership as of May 19, 1999 was 1284. 

PRESIDENT'S REPORT - Browning Crow 

Crow gave limited report because wanted to give as much time as possible to evening’s four speakers.  Did note help still wanted/needed for producing Kiawah Island Talk.  Anyone interested in volunteering should contact KPOG board members or Crow himself. 

As has been practice in past, after each speaker time was allotted for a question and answer period. 

TOWN OF KIAWAH ISLAND - Mayor Jim Piet 

  • Folly Beach (FB) groin
    FB city council resolution opposing groin failed on 3-4 vote.  State’s Office of Coastal Resource Management (OCRM) will hold public hearing, but time, date and place not yet announced.  Town will notify property owners when set.  Spit currently forming at east end of Kiawah preventing sand movement, with currents coming around it and causing erosion.  Piet encouraged Kiawah property owners to participate in public hearing.

  • Roads & Bridges

    On May 19, meeting held on Kiawah with Elizabeth Mabry, Executive Director of SC Department of Transportation (DOT), new DOT Commissioner Bob Harrell and state representative John Graham Altman (Kiawah’s representative) with towns of Kiawah and Seabrook to talk about needs here.

    Limehouse Bridge is top priority.  Scheduled to go out for bid in September, even though not all money for it in hand.  Stono Bridge on Maybank Highway set to go out for bid in November.  Had to be redesigned since Maybank from River Road to bridge is not be 4-laned. 

    Town, along with Johns Island Commission, Rural Transportation Alliance, the Black Ministerial Alliance and Town of Seabrook Island, went to Charleston County to support study of options for 4-lane road from intersection of Betsy Kerrison Parkway and River Road to Maybank Highway.  In June County Council Finance Committee and then entire council are expected to vote to fund $115K study of options.  

  • Roundabout/Shopping Center
    Towns of Kiawah and Seabrook now agree on roundabout for intersection.  It will cost about $2.5M; how to finance is big question.  KRA will request development agreement with county for commercial development on Andell property. 

  • Extension of Mark Clark Expressway
    City of Charleston will only support if green belt is formed on James/Johns islands.  Bill in Columbia for 1% local option sales tax increase to provide funds for roads, public transportation and green belt/purchase of development rights.  If passed, referendum will have to be held.  Kiawah and Seabrook are going to seek Charleston Area Transportation Services (CHATS) approval of Mark Clark with federal money and toll as was attempted last year. 

KIAWAH ISLAND RESORT - General Manager Prem Devadas 

  • Devadas offered to answer any questions property owners had after he gave brief update about KIR. 

  • Turtle Point Golf Course
    Construction of clubhouse to start in July, not mid-May, due to design changes and ARB approvals.  Teaching facility being started.  Golf course redesign beginning.  Course expected to reopen in October. 

  • West Beach
    Master plan for area being implemented.  Atlantic Room restaurant (formerly Jasmine Porch) now open for dinner, with greater ocean views from dining room.  Charleston Bar scheduled for completion mid-June.  West Beach Cafe (formerly Sweetgrass) has been redone.  First Union Bank is a new tenant in Straw Market. 

  • New Hotel
    Still some changes, but proceeding to final design.  Ground-breaking planned for November of this year, with construction to begin in February 2001 and grand opening in November 2002.  Devadas confident deadlines will be met and hotel will open on schedule. 

  • Ocean Course
    Huge mound of sand will go out within 30 days.  Dreamworks will release movie “The Legend of Bagger Vance,” filmed partly at Ocean Course last November.  KIR has asked OCRM for extension on removing hole until movie is released.  Theatre networks in top 10 locales will promote KIR logo with movie. 

  • South Carolina Aquarium
    KIR Coastal Gallery part of aquarium, which opened May 19.  KIR contribution is effort to open relationships between Kiawah and downtown Charleston. 

  • Personnel Changes
    Glenn Newlin has been named Golf Club Food & Beverage Manager, with responsibility for all programming of Governor’s Club and services it provides. 

    In cooperation with program by Jamaican government, 60 seasonal employees working at KIR.  All have been carefully screened.  If they don’t do a good job, will be flown out of here by plane.  KIR has leased temporary housing on Highway 17 and is bringing employees to work by bus.  KIR working with other governments/agencies for European & Asian workers.  KIR looking to buy land to build housing for these workers closer to Kiawah with shopping within walking distance. 

  • Jefferson Hotel in Richmond, VA, also owned by VIT, has received 5-diamond rating for 2001 for its restaurant as well as hotel, 1 of only 14 North American properties receiving this dual designation. 

Questions: Carol Fishman asked Prem about beach parking.  Devadas has been meeting with different entities. Resort is committed to parking lot for property owners at Ocean Course and has been working with Pete Dye.  Devadas asked for some time to develop plans. 

Beverly Pawson-Liebman asked Devadas if the Charleston Area Regional Transportation Authority (CARTA) bus, running between Charleston and Kiawah, has been used much by resort employees.  Devadas said scheduling is a problem and resort has not promoted it that much.  Suggested meeting with CARTA re: fares, flexibility, funding, etc. 

KICA - Property Owner Director (POD) Bill Wert 

Wert reported KICA financially stable and on budget.  Especially pleased KICA not at war with anyone.  “The roads are getting repaired, the town is having the trash picked up, the new pool is on schedule and on budget, home construction continues and unemployment on Kiawah is non-existent.”  

  • Property Owners Pool
    New pool at Sandcastle will open Monday, May 29, at 10 a.m.. All property owners are invited.  As result of vote by KICA Board of Directors, property owner and direct lineage fee has been reduced from $5 to $3/day.

  • Road Repair & Paving
    Repair and paving of Airy, Clay and Fletcher Halls, Flyway Drive, Sea Marsh, Saltgrass, Cordgrass, Old Dock, Sea Myrtle and Surfsong to be completed by May 26. Most disruptive area so far has been intersection of Glen Abbey, Bufflehead and Flyway, where extensive repairs were necessary.

  • Open Forum
    Open Forum scheduled for Sandcastle on May 26 at 4 p.m. Topic is Sandcastle programs for year, but no subject “off limits.”

  • Board votes
    Under 1994 development agreement between town and KRA, transition of control of KICA from developer to property owners set forth.  Began initially in March, 1996, with weighted voting system.  Although property owners maintained same number of seats (3), KRA could only vote 2 of 4 seats on all items except landscaping, lakes maintenance and facilities maintenance. Next step in transition process will take place at 2001 KICA Annual Meeting, when PODs will occupy 4 seats (necessitating election of 2 new PODs, rather than 1).  KRA will have 3 directors and weighted voting system will end.  In 2004, 2 more PODs will be added, a total of 6, leaving 1 KRA seat.   Then, on January 1, 2008, KRA will sign permanent waiver of its rights to appoint a majority of board.

    Under DA, some areas require a dual majority of KRA directors and PODs for a change to occur.  Wert says KRA have not been disruptive to date and PODs, along with KICA’s professional staff and committees, are running community association.

  • Folly Beach Groin
    KICA board actively supports opposition to building proposed Folly Beach groin. Wert thanked Pawson- Liebman for leading town’s effort to stop groin construction.

Questions: Patrick Casey expressed concern re: staging area on Governor’s Drive for contractors working on Kiawah (paving, water lines, tree surgeons, etc.).  Pointed out need to clean up area when finished and provide facilities for workers.  Wert said as liaison to Major Repair & Replacement Committee, he will look into cleanup and facilities.

 UTILITY RATE CASE UPDATE - Dick Sayers

Dick Sayers, who, along with Wally DuBois, has worked with KPOG when it has intervened in Kiawah Island Utility (KIU) rate increase requests since 1985, reviewed status of KPOG’s intervention against KIU-requested increases in 1996 and 1998.

In 1996 rate case, KIU filed application to increase rates in July 1996.  In August KPOG intervened, opposing requested increase.  Public Service Commission (PSC) heard case in December and granted rate increase in January 1997; KPOG requested reconsideration, which was denied in February 1997.  In April 1997, judicial review of case held in Richland County.  Then in May 1997, PSC filed answer to KPOG’s petition with Circuit Court.  After holding hearing in January 1998, Judge Cole affirmed PSC decision in March.  KPOG’s appeal of decision was denied in April and KPOG filed petition with Supreme Court.  In June 1999, Supreme Court heard the case, and in September 1999 remanded case back to Circuit Court, saying PSC’s decision should not be accepted without explanation of reasoning.  KPOG does not believe PSC can explain. 

In December 1999 and February 2000, hearings were held before PSC on aquifer storage application, which KPOG did not oppose in concept, but objected to being done on leased property.  Before hearing in December, Trenholm Walker, attorney for KIU, asked for meeting to “talk.”  KPOG had expert witness at hearing who recommended a cost of services study.  Sayers also complimented town councilman Bill Miller on his testimony for KPOG at this hearing. 

Because of number of questions raised by intervenors in aquifer and other KIU proceedings re: relationship between KRA and KIU, at end of April this year PSC issued order that stated in part, “We hold staff shall work with all interested parties to hold a management audit of the utility.”  First steps for management audit are being taken, looking for mediator and firm to perform audit.  Sayers described himself as “conservatively optimistic.” 

One major question to be answered is where money will come from to pay for study.  Town of Kiawah Island will participate.  Sayers feels PSC, KRA and town should share cost .  KRA and not KIU should be entity participating in payment of study, so rate payers of KIU will not have to bear the expense. 

Questions: Don McIver asked about rates being paid now, and if incremental increases are going into escrow.  Sayers responded KIU is broke and could not buy land on which facilities/assets are placed. 

Patrick Casey asked about number of members on PSC.  There are 7; cases are normally heard by only 3 members, but all 7 heard aquifer hearings. 

Sayers said developer has “sloughed off” development expenses onto utility to extent of several million dollars . 

In response to questions about public hearing on proposed groin at Folly Beach, Pawson-Liebman noted period to send comments to OCRM has been extended to June 15.  Environmental assessment document not completed yet.  Tom Nelson asked about alternatives to groin.  These include moving parking lot from current site, increasing use of Beachwalker Park, and renourishment. 

Meeting was adjourned after 1 ½ hours.

   

 

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