Kiawah Island Property Owners Group

May 15, 2001, Board of Directors Meeting

Secretary Howard Runyon and Director Steve Orban absent.  11 in audience. 

MINUTES - April 17^th minutes approved. 

Treasurer’s Report – Tom Shealy

All outstanding bills have been paid.  Membership income for 2001-2002 is $62,954 or 82.9% of the annual budget. 

Committee Reports

Membership Committee – Arnie Liebman

Year-to-date membership is 1,364.  This includes 1,069 renewals and 295 new members.  Total membership for last year was 1,399.  In 1999, the last time a directory was published, total membership was 1,529.  The membership drive began about a month later that year, and as of mid-June, membership was 1,341.  Membership appears to be on target for budgeted totals of 1,650 this year. 

MIS Committee – Stan Novaco

All is going smoothly. Novaco will be leaving the island for the summer and Assistant Chair Wendy Kulick, in conjunction with Beverly Pawson-Liebman, will maintain the database in his absence. 

2001 Telephone Directory – Stan Novaco

Final changes are about to be made prior to submitting the directory to the printer at the beginning of next week.  Ann Connellee has coordinated all proofreading and will continue to do so throughout the production of the directory.  Delivery is still on target for mid-August. 

Editorial Committee – Patrick Casey

No report. 

President’s Report – Patrick Casey

There is still no movement on the utility issues pertaining to previous water rate increases requested by Kiawah Island Utility.

Old Business

• Delivery of KIAWAH ISLAND TALK

  By order of the Postmaster, TALK can no longer be placed in mailboxes on Kiawah.  Therefore, a new method of delivering TALK to island residents will have to be devised.  In addition, the board continued its discussion from last month about the problems encountered with sending TALK bulk mail to off-island members within the United States because of the time it takes to reach them. 

  Laurie Burpee will look into using lighter stock paper.  Reiterating what he said at the last board meeting, Tom Shealy said estimates indicate that it would cost less than $1/month/member to mail TALK first class.  Since KPOG has the money to effectuate this, Shealy made a motion, seconded by Director Diane Beck, that beginning with the July/August issue of TALK, which will be distributed in June, TALK be mailed first class to all members within the U.S., including those on island.  The motion passed unanimously.

  Casey asked Burpee to be sure it is noted in a prominent place in the July/August issue of TALK that the board decided that in order to keep the membership informed on a more timely basis, TALK will be mailed first class.  This will mean that all members will now receive TALK via first class mail, since Canadian and overseas members already receive TALK first class.

  Ann Connellee suggested greater control be exercised over the length of articles in TALK.  In past years, those making committee reports and writing other articles were asked to keep the number of words down as much as possible.  Connellee suggested that this would also help to keep the cost of producing TALK under control.

  
  

•  Public Hearing on Folly Beach Groin – Arnie Liebman

  Liebman reported that the state Office of Coastal Resource Management (OCRM) held a public hearing at Fort Johnson on James Island on Charleston County’s Parks & Recreation Commission’s (PRC) proposal to build a groin on Folly Beach.

  The PRC made a brief presentation on why it wants to build the groin.  Mayor Jim Piet and Town Council Member Beverly Pawson-Liebman presented the town’s opposition to the groin because of the potential negative impact on Kiawah’s beach.  Wendy Kulick also voiced her opposition to the groin. 

  Others who spoke against the groin were representatives of the Sierra Club, the Audubon Society, and the Coastal Conservation League, as well as two surfers who characterized the surf off Folly as dangerous due to previous groins constructed there. 

  No one spoke on behalf of the groin except the PRC and the company which wants to build it. 

  Liebman noted that any attempt to “fool” with ocean currents leads to problems, as evidenced what has happened to the Morris Island lighthouse.  Kiawah would be the victim of an attempt to stabilize the parking lot at the county’s park on Folly Beach.  While sand is added at the eastern end of Kiawah, erosion occurs further west of the far eastern end of Kiawah.  Liebman said it would have been nice if someone from KPOG had spoken against the groin. 

  Even if OCRM were to grant the PRC a permit, the PRC has no source of funding for it. 
  

• KPOG Website - Stan Novaco

  Casey noted there is a deadline to be met (the end of May) to find alternate staffing to maintain kiawah.org, since two of the volunteers who have been doing the bulk of the work on the website will stop doing so effective June 1st.  Casey asked Novaco to report on the results of his investigation of alternatives. 

  Novaco noted that to have professionals put up articles and maintain the website as it is today would cost between $16K and $20K per year.  It should make us appreciate the web volunteers even more.  Novaco has been working with A World of Difference (AWOD), an Internet service provider (ISP).  It appears that local volunteers could create the articles and e-mail them as Word documents to AWOD, which would then migrate the articles to the appropriate section on the website. 

  The web hosting service KPOG is currently using is experienced in dealing with large businesses and has excess capacity, as well as back-up facilities.  It is “pricey,” but worth the effort.  The new site, using AWOD, would not have much of that at all.  It won’t be as pretty as the current website and KPOG won’t have as much control over the way things appear.  The only way to continue the website as it currently exists would be to find people immediately with existing skill sets necessary for it because KPOG cannot afford to keep it the way it is. 

  AWOD would cost about $100/year, plus about $500 to automate the website.  By contrast it currently costs about $1,500/year.  Some classes would be necessary to train the volunteers who will write the articles.  These would be between 3-5 hours in length, and cost between $195 and $325/session, with about 10-15 volunteers per session at AWOD’s office on Carriage Lane in West Ashley. 

  Novaco noted that someone would have to follow up with AWOD because after today he would no longer be working on the Internet Management Committee. 

  Casey noted that having a local ISP is a concern, since one of the crowning achievements of KPOG’s website was that it was up and running from the time the island was evacuated for Hurricane Floyd until it was safe to return.  Novaco noted that AWOD has some back-up and uploading capabilities, plus agreements with out of area organizations.  They have contracts with the City of Charleston and the county and are required to keep their sites up and running even during emergencies.  Casey would want to be sure that this was written into any proposal.  If they are local, he wondered why KPOG shouldn’t find someone outside of the local area.  Novaco noted that if anything more were done, there would be significantly greater costs associated with it. 

  Shealy asked what is currently done to maintain the website.  Novaco explained that two people spend about three hours per day, seven days per week.  No one has been found to replace one or both of them; Novaco pointed out that people with these talents do not “fall out of trees.”  Casey acknowledged KPOG has been spoiled because of the efforts of these two individuals, and that KPOG cannot afford to miss a beat with the website. 

  Novaco further pointed out KPOG also needs to find people to write the documents to send to AWOD.  The reporters would send two copies of each article, one to AWOD via e-mail and one to the web administrator, still to be named, who would determine what articles would be mentioned on the front page, as well as respond to e-mails sent to kiawah.org.  In response to a question from Beck, Novaco will check with AWOD to see if the free kiawah.org e-mail addresses would still be available to KPOG members. 

  KICA Property Owner Director (POD) Bill Wert asked how many hits per day the website receives.  Beck indicated that although such statistics had not been kept for some time, the website had been averaging about 300/day.  Kulick noted that, given the number of people on the KICA list serve who refer to information gleaned from kiawah.org, the number of hits is very significant. 

  Vice President Tom Cowen questioned what the options were.  Novaco noted none of the choices was ideal, and are limited because of time constraints.  They include not having a website, letting the existing one stagnate, or use the services we can get through AWOD.  If AWOD is used for a year, it would actually end up saving KPOG money.  Casey indicated AWOD could be an interim measure until something else comes along. 

  Cowen made a motion, seconded by Liebman, that the KPOG board direct the President and Vice President to continue negotiating with AWOD to reach a successful final conclusion before the end of the month.  The motion passed unanimously. 
  

• Residents Non-renewing Membership

  Novaco provided Casey with a list of residents who were members last year but have yet to renew their membership, and residents who have never been members.  Casey asked board members to split up the names and contact each of the people on them.  He asked board members to report feedback at the next meeting, including why people have not joined. 

New Business

• Possible Research Committee project – Arnie Liebman

  Liebman explained that at the KICA Meet the Candidates meeting, one candidate made the point that KICA will have to find new sources of revenue, since assessments can only be raised a maximum of 5% annually.  Last year KICA had a substantial overage in income, a surplus of about half a million dollars.  He thinks this would be a good topic for the Research Committee to look into. 

  Casey noted this was a comment by a candidate, but is not the position of KICA.  POD Wert added comments, which were not based in fact, were also made that non-residents should be able to vote for Town Council.  He suggested someone talk to KICA Controller Theresa Cooper or Finance Advisory Committee Chair Mac McCannon to see if they agree with this statement. 
  

• The next KPOG board meeting will be June 19^th at 4 p.m.  The next quarterly meeting will be Saturday, June 23^rd at 10 a.m. 

ADJOURNMENT  - The meeting was adjourned after 1.25 hours.

Audience of 6.  Assistant Treasurer Judy Sanders and Directors Diane Beck and Steve Orban absent.

Minutes
Minutes of March 16th board meeting unanimously approved after President Patrick Casey corrected his report of Diane Beck's resignation from the KPOG board.  She only resigned from the Internet Management Committee.

Treasurer's Report - Treasurer Tom Shealy
About $55,000 has been deposited since March 1st.  At this time there is about $100,000 in the bank.  Dues income to date is approximately 75% of the annual budget.  Shealy distributed a "first cut" of a P&L statement vs. actual income/expenses.

Committee Reports

Membership - Director Arnie Liebman
1,249 memberships have been posted to date; 254 are new members who did not belong to KPOG last year.  Liebman thanked Wendy Kulick, Beverly Pawson-Liebman and Stan Novaco for their work to get this information entered into the KPOG database.

Liebman also reported on the '2000-'01 members who had not renewed as yet. This includes 99 residents, 390 who live in other parts of the United States, and 16 who live in Canada or overseas.

He next compared this year's membership statistics with the two previous years on the same date.  In 2000, there were 1,087, about 200 behind this year.  Since there was a directory published two years ago, he looked at membership figures for both April 17th and May 17th, since the 1999 membership campaign began about a month later.  On May 17, 1999, there were 1,251 members, which is just about where we are now.

Liebman also indicated that there are a number of memberships which have been received but not posted as yet.

Casey asked which issue of KIAWAH ISLAND TALK would be the last one for '00-'01 members who did not renew.  Novaco replied the next issue would be the last and would have a green sticker reminding people of this.  In addition, Liebman will then send a reminder letter to the remaining non-renewals.

KPOG Directory - Vice President Tom Cowen
The next significant date is April 30th, the cut-off for information being entered into the directory.  The projected delivery date of the middle of August is still on target.  As with past directories, there will be no commercial information listed in the book.

MIS Report - Chair Stan Novaco
All is running smoothly.  There had been one glitch in the telephone directory program.  He had not originally anticipated property owners ordering a directory and then selling their Kiawah property, but this has been corrected.  Novaco will be taking a dummy file to the printer in the
next two weeks to ensure that the data can be successfully accessed.

Research Committee - Patrick Casey
There has not been a project for the committee to address as yet.

Casey switched gears to talk about the presentations at the quarterly meetings, suggesting the speakers should be expanded beyond representatives of the Town of Kiawah Island (TOKI), the community association (KICA) and the resort (KIR).  He suggested having someone from the Federal Emergency Management Agency (FEMA) at the next quarterly meeting, as a result of information which was disseminated at a meeting TOKI held at the beginning of April with contractors and other interested people regarding building codes.  Casey did not agree with some of what was said; his insurance confirmed this assessment.

President's Report - Patrick Casey

• Late Delivery of KPOG Annual Meeting Notices
  Casey received 63 communications regarding the failure of these notices to arrive in a timely manner.  As promised, he has responded to each one.  The notice was sent via bulk mail, which was a mistake that has been corrected with our mailing service.
  
  Casey walked the board through the process of delivering bulk mail, as explained by the U.S. Postal Service (USPS).  Once our mailing service receives something to be mailed, it is delivered to the local post office within two (2) days.  Then, the local USPS office delivers it to the destination USPS office, which has seven (7) to nine (9) days to deliver it. Casey noted that in each of the 63 instances of which he was aware, the local post office exceeded this 7-9 day window, by as much as 30 days in some cases.  Our mailing service has asked the local USPS for a list of those local USPS offices in which this occurred, so that Casey can try to follow up to assure this does not occur again for any KPOG mailing.
  

• Utility Issues
  There has been no movement regarding the '94 and '96 rate cases in the past 30 days. Casey will report on the Cassique water issue under Old Business.
  

• KPOG Website
  Casey noted the KPOG website is one of the best things KPOG does.  The people who have been maintaining it have been doing so for a long time.  Help is needed, and those who have been performing this incredible service cannot do it anymore.
  
  Casey indicated that reporters are needed to cover town council, Short Term Rental Committee, Planning Commission and KICA meetings, as well as post pertinent articles from the Post & Courier, as well as the weather.  Casey has contacted people who manage websites for a living. There is software available that lets people enter information directly into one area.
  
  Casey thanked those who have been maintaining the website in "heroic" fashion.  They feel very strongly about their jobs and are taken  aback by some of the political statements and inferences of lack of information regarding the tax cap and rentals. They feel their work is not appreciated, and it has made it very difficult for them to continue to do the job.  More help is urgently needed.
  
  Shealy asked  how many people are currently doing this.  Casey noted there are two, but six-eight are probably needed to pick up what they have been doing.  When TALK co-editor Laurie Burpee said this sounds like the dilemma TALK has been facing, Casey noted that it was similar. While he didn't want to downplay the excellent job Burpee, co-editor Sybil Fromme and other TALK volunteers do, it is critical to address website management immediately because of the scope and breadth of what is covered and the depth in which meetings are reported.
  
  Novaco noted that currently there are volunteers who cover individual areas, i.e., POPS and golf.  The two people who are maintaining the website and keeping it running are doing the hard work, i.e., covering meetings, posting the weather, and they have been disheartened by what is going on lately.  Most of the P&C articles can be captured from the Charleston.net website, but this must be done within a day or so of their posting there.  Otherwise, the article need to be scanned or inputted into kiawah.org.
  
  Cowen asked how often the website is updated.  Novaco indicated that it is often daily, sometimes more or less often, depending upon what meetings are being held or what is occurring on the island.  Wendy Kulick noted that the KPOG webmaster is also the person who responds to e-mails received by the website and/or forwards them to the appropriate person.
  
  Casey indicated that they have 30-45 days to get something in place.  Once this is done, getting help for TALK is the next priority.  Cowen asked whether reports from kiawah.org could be "lifted" for TALK.  Burpee noted this has been discussed, however, website reports are more comprehensive and inclusive than those in TALK.  Articles in TALK often refer people to kiawah.org for greater information and depth.
  
  Burpee also thinks people are afraid if they volunteer, they will be sucked into doing it for an extended period of time; he noted he volunteered two years ago to help with one issue of TALK!
  
  A number of ideas were discussed.  Director Connie Kerdasha suggested sending a form asking people to identify their skills, so the board would know who to contact when volunteers are needed.  Novaco suggested appealing to those living in the 29455 zip code. Kulick offered the idea of adding information to the membership form mailed to property owners (and new property owners throughout the year) and to the change of address/membership form on the website.  All will be considered.
  
  Old Business
  

• Quarterly Meetings
  Dates for the first two quarterly meetings have been set:  June 23rd and September 22nd, both at 10:00 a.m.
  

• Letter Sent to Casey, Liebman and Secretary Howard Runyon
  Casey read a letter received from a property owner objecting to KPOG not taking a stance on the tax cap issue.  The letter pointed out that "McIver's assertion that all organizations with which KPOG has a web link are strictly Kiawah organizations and, therefore, NOAC should have no web link is nonsense."
  
  Casey noted there has been no contact with the Non-Resident Owners' Action Committee (NOAC) since the last board meeting and  NOAC has not asked for anything other than the link to its website requested in March.  That link was established.  Kiawah.org links to NOAC under "other organizations" and they link to us under "Kiawah organizations."
  
  Casey has also written back to Steve Lapp of NOAC, acknowledging his letter, but has not heard from Lapp.  Casey told Lapp it would cost about $650 to mail the NOAC information Lapp had discussed.  Burpee had asked Lapp to submit something for publication in the upcoming issue of TALK, but had not received anything from him.
  

• KICA Meet the Candidates Meeting
  Because Casey will be out of town on Sunday, April 29th, he asked one of the board members to attend the MTC meeting from 12:30 p.m. - 2:00 p.m.  Several board members indicated they would confirm with Casey if they could attend.
  

• Non-resident Seat on KPOG Board
  This issue was raised at the last meeting.  The Nominating Committee should consider a non-resident seat on the board.  Previously, there have been non-residents who have served on the KPOG board, and non-residents should be considered for the future.  
  
  Shealy thinks having a non-resident on the board is a good idea, but it should be one person, not a revolving seat for any non-resident who happens to be available to participate.  It should be someone who is knowledgeable, interested in Kiawah, and willing to come to meetings.
  
  Cowen thinks this would be difficult for someone outside the Charleston area.  Shealy believes the option should at least be there and offered. Novaco pointed out that right now there is no Nominating Committee.  He also noted that the KPOG By-Laws require all officers to be residents of Charleston, Berkeley or Dorchester counties.
  
  Kulick asked if teleconferencing were available at the Sandcastle, where KPOG regularly holds its board meetings.  If so, this might be a possibility for a non-resident board member to participate.  Casey suggested getting recommendations from the Nominating Committee, which needs to be established.  Novaco suggested Casey contact Tom Lamb to serve as the chair and Dwight Freeburg to serve as the assistant chair, and let them select the rest of the committee.  The total number of members and whether there are an odd or even number on the committee should be left to the chair and assistant chair to determine.
  
  Novaco indicated another alternative is an at-large directorship, which certain people could specifically request to fill for certain months of the year.  Kulick encouraged the board to make all non-residents aware if this were pursued, rather than going through NOAC, which represents some, but not all non-residents.
  
  The board agreed that establishing a Nominating Committee and having a non-resident director with teleconferencing availability if the non-resident director could not be present in person should be pursued.
  
  Concerns were expressed during an extended discussion about a division growing between resident and non-resident property owners and how bad this would be for Kiawah.  Cowen and Runyon agreed with Novaco that there are more commonalities between residents and non-residents than differences.  Although 80% of KPOG's members are non-residents, they have not been very active or involved until recently.
  
  Jack Pulleyn noted that in the past, non-residents have trusted residents to look out for all property owner interests.  A split was not there until the tax cap and short-term rental issues.  Runyon pointed out that KPOG supported a tax cap for all property owners, but the Charleston County Council is the authority which made the decision.
  
  Pulleyn indicated that the rental issue and publicity from former town councilman Bill Miller's draft ordinance set some non-residents thinking that all residents felt the same way, which is not true.  In addition, a recent KICA mailing with a short-term rental survey erroneously says the town voted against Miller's ordinance, even though the ordinance was never presented to council for a vote.
  

• Cassique Water Company (CWC)
  Casey read a March 19th letter he received from Townsend Clarkson, Chief Operating Officer of Kiawah Island Utility (KIU). Clarkson said he wanted to personally let Casey know, "that KIU, KRA and CWC applications for a Reverse Osmosis facility at Cassique have been withdrawn due to unforeseen opposition and legal obligations, which made the well-intended venture no longer a viable solution to increase the amount and source of available water to Kiawah Island."  Clarkson continued, saying, "After none months of hard work, dedication and expense on our part, we have determined that in light of the legal opposition still pending and the involvement of numerous parties other than TSG Water Resources and KRA on this project, the financial burdens exceed the perceived benefits."
  
  Further, he said that, "Rather than continue to invest in what very unfortunately became a 'controversial' idea, CWC will move forward with a small reverse osmosis plant it will solely use for golf course irrigation."  He then thanked Casey on behalf of the aforementioned companies for his time invested in this project that "will, regretfully, never be completed.  This will be among the best examples of when a good, sound idea is stymied by shortsighted opposition."
  
  Casey then read his April 5th letter in response. Casey expressed his surprise to Clarkson's reference to pending legal opposition.  He asked if this referred to earlier utility rate cases pending with the PSC, but noted his understanding that the town had agreed to a buy-out contract of TSG, that "both parties had worked out all legal aspects of this contract in order to protect the interests of both the town and the rate payers and that the parties were ready to ink the document."  He asked Clarkson, "Why did your office withdraw the application to build this facility at the eleventh hour?"  
  
  Casey characterized the project as "conservational" for all parties involved on Kiawah, rather than "controversial," as Clarkson had done. Casey asked Clarkson if the "unforeseen opposition" to which Clarkson referred came from the St. John's Water Company or some other business entity voicing opposition.  He also asked if the "legal objections" Clarkson cited were in getting the project permitted or had the City of Charleston voiced objection to the plant.  He further wondered why such a project was "no longer a viable solution to increase the amount and source of available water to Kiawah Island," noting his thoughts that "any and all projects which would provide additional and future water supply to our island should be examined and pursued 'post haste' and particularly at this time in our island's build-out." Finally, Casey asked Clarkson to identify the "short-sighted opposition" to the project.
  
  Cowen asked if KPOG had taken a position on the reverse osmosis project. Kulick voiced her recollection that KPOG and the town had originally intervened to get additional information about the project.  Past President Browning Crow clarified that KPOG had intervened because there were several questions about proposed agreements between TSG, KRA and others.  KPOG thought all these questions had been resolved and that the project was ready to proceed.  Casey indicated he had been told the contract was ready to be signed by both TSG and the town when it was withdrawn.
  
  Casey promised to keep the board informed if he receives a response from Clarkson.
  
  New Business

• Eligibility of non-KPOG member TALK contributors to receive copies of TALK
  The question arose because Bob Cowgill, a long-time KPOG member and Kiawah resident, sold his property but continues to share his knowledge through TALK and the website.  This is a situation which has not arisen before.  The board unanimously agreed that anyone who contributes to TALK should receive a copy of it.
  

• First Class Mailing of TALK
  Casey has investigated what the additional cost would be for mailing TALK first class to KPOG members who live in the United States. This is a function of weight.  The additional cost to KPOG would be about $800/month or almost $10,000 annually.  It currently costs about $200/month to mail TALK via bulk mail throughout the U.S.
  
  Kulick suggested, after checking with Novaco that the database could be programmed to allow this, that members be offered the option of paying for TALK to be delivered via first class mail.  Although it would be more difficult to administer, she felt it should be explored. Runyon supported the idea.
  
  Shealy took this one step further, noting "our product is information."  He suggested the board consider incorporating the cost of first class postage into next year's dues structure and investigate the feasibility of mailing TALK first class throughout the U.S. for the remainder of this year.  The board wanted time to consider the impact of Shealy's suggestion and agreed to make a decision at the next board meeting.
  

• Request to Address the KPOG Board
  Jean Hiestand asked for the opportunity to give background information on an issue which is the subject of a Letter to the Editor he wrote for publication in the upcoming issue of TALK.  Specifically, he addressed the request of KIR for authorization to cut through Turtle Beach Lane, eliminate the cul de sac at the Enclave, and extend a road into hotel property to service a residential area of about 2.5 acres with up to 18 residential units.
  
  People in Turtle Beach are opposing this.  Hiestand noted it is hard to believe it was three years ago he first became involved in this issue.  He was told that a large red balloon tethered to the stake just beyond the boardwalk serving the tennis villas marked the southeast corner of the hotel.  It was 20-30 feet from the boardwalk, south of both the tree and dune line.  The Turtle Beach Lane view to the west would be destroyed and there would be the loss of a kidney-shaped pond.
  
  About 21 months later, the lawsuit by Enclave owners which arose from this was settled.  KIR agreed to move the hotel 300 feet west of the property line and place condos it wanted to build a certain distance, with certain limits. This fact and the ARB's moving the hotel up from the dune line made the Turtle Beach people feel good about the project.  The Turtle Beach owners agreed not to protest the hotel, including but not limited to its zoning.
  
  Hiestand learned that the Development Agreement being negotiated between KIR and TOKI asked for the provision which would give them vested rights to do what they are asking for.  He has presented arguments against this to TOKI and the town's Planning Commission. Hiestand noted "some of our Kiawah neighbors have been led to believe that we are seeking to prevent the building of the hotel altogether. Nothing could be further from the truth."  Hiestand said he has heard second- and third-hand, although not directly, that their motives were misunderstood with the first go-round with the hotel, and he wants to do everything he can to be sure that doesn't happen again.
  
  It has been acknowledged for 11-12 years that there will be a hotel.  He said that time and again over the last three years, they have been assured KIR is preparing, and they have encouraged them, to build a find hotel.  Hiestand hopes that [General Manager] Prem Devadas' dream of a five-star hotel comes to fruition.  The Turtle Beach owners just doesn't want their neighborhood tarnished.
  
  What KIR wants to do on the hotel property is up to KIR as long as they maintain the agreement signed.  Hiestand will continue to deal with the issue of property outside the hotel property, i.e., the street, the cul de sac and 50 yards or so around it.  Hiestand would appreciate if it board members set people straight if they hear someone expressing the idea which the board now knows is a misunderstanding.
  
  Casey thanked Hiestand for his input.
  

• Folly Beach Groin
  Casey announced, for those who hadn't already heard, that DHEC and OCRM will hold a public hearing, as requested by the town and many property owners, about Charleston County Parks & Recreation Department's application for a groin at Folly Beach.   The hearing  will be on Wednesday, May 9th, at 6:00 p.m. in the auditorium at the SC Department of Natural Resources, 217 Fort Johnson Road, Charleston, SC. 

ADJOURNMENT  - The meeting was adjourned after about an hour and a half.

VP Tom Cowen, Assistant Secretary Vicky Meister, Director Connie Kerdasha and Past President Browning Crow absent.

MINUTES
Minutes of last meeting approved without change. 

• Thanked the MIS Committee/Stan Novaco for helping him get up and running with Quick Books.  Also thanked previous treasurer Don McIver for leaving things in good order.
  
  

• State license fee paid, extension of corporate income tax filing requested.  Has written a lot of checks.
  
  

• Too early after only 3 weeks to give a report vs. budget.  Income to date $15,000, mostly from membership dues; expenses slightly over $5000.  As of that morning, a little over $14,000 in checking account and $39,000+ in money market for total of $54,000+.

COMMITTEE REPORTS 

Membership – Arnie Liebman

321 memberships to date, 272 renewals and 49 new members.  A large number yet to be posted.

Casey commended the great response from people who volunteered to proof, assist with membership mailing. Shealy asked if too soon to know whether 1650 members budgeted for is still appropriate.  Liebman thinks it still holds.  He has had a few phone calls re: increased dues, but when explains dues include a telephone directory, people accept it.

MIS - Stan Novaco

• Reminded Casey board needs to appoint new committee.  Requested board reappoint present members.
  
  

• Requested board approval to continue to exchange data with KICA, town, POPS.  
  
  

• There was a glitch with labels for current issue of Kiawah Island TALK due to a faulty back-up. Situation has been corrected.
  
  

• KPOG’s old 486 computer will be given to Kanda Parsons, who will be taught to work with database.  At present database is taking about 40 hours volunteer labor per week.

The board unanimously approved both of Novaco's requests.

Editorial Committee – Laurie Burpee

Nothing to report. Committee has not been reappointed. 

Directory – Tom Cowen (reported by Patrick Casey)

Directory project is underway and going well.  Novaco added process is working better than in past.  Database updating is a little behind, partly because "Fingers" Kulick is in London.  Schedule Cowen put together remains accurate, with directories to be mailed by August 15.

PRESIDENT'S REPORT

• Mailings for annual meeting.  Close to 1400 postings went out February 12; people were still receiving them as late as March 4^th.  KPOG has done a pretty thorough study of the mailing process.  A mistake was made up front in that the notices were sent bulk mail, not first class. Even so, bulk mail is supposed to be delivered within 7-9 days.  42 people complained about late mailings, and Casey responded to each of them.  There will be a report in next issue of Kiawah Island TALK explaining what happened. 
  
  Liebman noted if there were 42 complaints, that probably represents 10% of people affected.  Casey said he found out from the post office there are 3 classes of bulk mail, depending on how packaged and other factors. 
  
  

• Utility issues - Town negotiated in good faith with Cassique Water Company re: water being supplied to Kiawah from its reverse osmosis system.  Dick Sayers, Wally DuBois and Don McIver put a lot of time in on the project.  Then KRA withdrew its request to the SC Public Service Commission and will not resubmit it. 
  
  ’98 rate case is in the circuit court of appeals, as is the '96 rate case.  Both were remanded to same judge, so hopefully he will combine them, although this may be not possible since one case previously went to SC supreme court.
  
  With respect to the management audit of Kiawah Island Utility, scope of audit still has not been agreed to.  Some parties in the utility have dragged their feet, said they would prefer a cost of service study rather than a management audit.  Casey pointed out KIU usually requests a rate increase every two years, so there may be such a request even before decisions are received on the pending cases or the management audit.  It's up to KPOG's lawyers to keep the pressure on, and for citizens to "get up in arms" if an increase is requested.
  
  

• Non-resident Owners Action Committee (NOAC) – Casey has had a great deal of correspondence with this group, and has tried to reply to each e-mail as best he can.  He has been informed by 6-8 individuals they are withholding their KPOG membership renewal until they see at this board meeting how KPOG board will react/respond to NOAC. 

  Most KPOG members have been very supportive of KPOG's efforts and what it has done on a strictly volunteer basis;  KPOG has no staff. Some people have said they enjoy TALK, but by the time they receive it the news is 3 weeks late.  Casey said KPOG doesn't have enough volunteers to put out a daily paper, but will continue to do best it can.  He referred members to KPOG's website, www.kiawah.org, which is updated daily.
  
  Liebman felt very strongly that KPOG has to come out with a statement explaining what it means when it says it's an advocacy group. Bulk of its members are non-residents, and dues basically  cover expenses and publication of TALK.  Perhaps KPOG needs to align itself with some other organization.

OLD BUSINESS

• NOAC - Casey said he has thought long and hard about what KPOG can do to respond to NOAC.  When there are disparate groups on island like KICA, town, KPOG, NOAC, have to emphasize the commonalities, what the groups share.  They have a lot of goals in common and while may not agree on method for reaching them, commonality can bring them together.
  
  One complaint is that KPOG doesn’t have non-residents on its board.  It did have a non-resident last year, and he was brought on specifically for that reason.  Casey suggested board consider having a "non-resident seat" not designated to a specific individual.    When a non-resident is on island and wants to come, he/she could occupy that seat, have a vote, express his concerns.
  
  Second, KPOG has been asked to participate in helping NOAC as a group with some of their mailings.  At end of board meeting will hear from Steve Lapp, who addressed a KICA forum previous day, about exactly what type of letter he wants to put out, so long as it is not an election tool sponsoring any one of their members, which is what NOAC ran into in meeting yesterday with KICA.  NOAC would pay cost of such a mailing, which would go to all property owners.  
  
  Third, NOAC has requested a link to their website from KPOG's.  Novaco interjected this was in his Internet Management Committee (IMC) report, which Casey told him to go ahead and give.

IMC Report - Stan Novaco

• Novaco informed board Diane Beck, who sold advertising for the website, is not going to continue on IMC or KPOG board.  He said there is a problem with website advertising in that it is not really giving value to its advertisers the way the site is set up. This would required banner ads and so forth, which Novaco doesn't see IMC doing.  No one on the committee wants to sell advertising either; they're all a bunch of  geeks.  Servicing ads requires a lot of volunteer time in addition to effort already going into website.  IMC recommendation is for board to subsidize website (about $1500/year), let ads expire, give advertisers 6 months or so free advertising as thanks for their past support. 
  

• Re: request from NOAC for link to them from KPOG website, KPOG would expect a reciprocal link.  Link to NOAC would not open up in KPOG website frame but directly into NOAC.  Novaco explained that links on left-hand frame are maintained by KPOG volunteers with exception of Governor's Club, which was originally. Some time ago VIT took over maintaining that section from their own website, but are not doing a very good job.  

Orban asked about response from Wild Dunes and Seabrook?  Lapp said Wild Dunes was initially unresponsive, but after his letter was published in the Wild Dunes newsletter they've "jumped on." Orban asked what the numbers add up to.  Lapp thinks potential is 5000;  if get all Kiawah non-residents that would be 3000, with Seabrook and Wild Dunes doubling that number.

Audience Comments/Questions

Stan  Novaco – Tax cap for homestead is already a fact, so KPOG has to be careful about supporting one class of member to detriment of another. Whether one likes it or not, supporting NOAC is to detriment of residents.  If support residents, is to detriment of non-residents.  There is information KPOG can provide, such as how to appeal an assessment, but anything more gets into an "iffy" area.

Jack Pulleyn explained how, years ago, KPOG provided a platform for investigating feasibility of incorporation.  When it became obvious this would be a major issue,  incorporation committee was separated from KPOG and told it would have to be independent, raise own funds.  One reason for this was there were people on Kiawah strongly opposed to incorporation and it was felt by the KPOG board that is should not support an issue in which property owners had differing positions.

Steve Orban (board) asked if KPOG could send out a letter without putting stamp of approval on NOAC, since obviously there are people who are not in support of NOAC – maybe only 25%, but they’re there.  Casey opined if NOAC submitted a letter to be turned over to KPOG's mailing service, KPOG could probably put letter out at NOAC's expense. Casey would have to go over letter with KPOG board.  Lapp asked if KPOG ever takes action for benefit of majority, realizing may be to detriment of some.  Casey said possibly.

Don McIver – Resident, former KPOG board member, making personal observations.  Said he applauds Lapp for effort in organizing NOAC; understands his position, why he's doing it.  Board needs to keep in mind, however, that NOAC is larger than just tax cap.  Have 2^nd issue also, which could be contentious on island, and that is rental issue.  It could well be that the tax cap lawsuit is lawsuit #1 and that another could come later depending on what town does about rentals.  KPOG board proposes to get into fray and take a side, and for what they're going to do to him as a resident and member of KPOG, McIver wants his money back.  He won't belong to an organization that takes that position.

He listed 3 possible outcomes previously described by Lapp:  NOAC loses lawsuit and nothing changes; NOAC is successful in overturning cap, resulting in no cap for anyone;  NOAC is successful and cap is ultimately extended to everyone.  

Representative John Graham Altman told McIver it is unlikely state legislature would do anything about property taxes for another 5 years. McIver disagreed with Lapp's lawyers' odds of better than 50% chance of success.  It is not unusual for non-residents to be charged higher taxes; this takes place all over the country.  Taxes in Charleston County are not that high.  McIver said he pays more in Michigan.  He disagreed that non-resident taxes are too high. 

McIver said he is not happy about KPOG's decision to provide a link to NOAC, because KPOG is linking to people who are opposed to McIver.  Further, NOAC is not even a Kiawah organization; has Seabrook and Wild Dunes members.  McIver suggested it would be better to form a PAC and make donations to politicians. 200-300 property owners giving $100 each would have much greater political force than a single individual.  If NOAC really wants to do something for Kiawah, there are plenty of issues to work on - roads and schools for example. 

McIver concluded by saying KPOG has a long history of representing everyone.  If that changes, it should be renamed Kiawah Non-resident Property Owners Group.

Bob Smith said there is a perception among non-residents that KPOG is a pawn, a tool of residents,  and he's just heard a speech that confirms that.  

Smith said what Lapp is really TALKing about is an assessment cap.  If Charleston County decides it needs more money it will raise millage rates.  If assessments of small minority of non-residents more than double, it will ruin their investment value and the ability of non-residents even to hang on to their property.  Smith predicted the 17 condominium regimes on Kiawah will be slums before long.  Smith rejects out of hand any assertion that resident taxes are going to double and took issue with statement in TALK saying overturning cap would do little for non-residents but would probably result in doubling of resident taxes.     

McIver offered to share information from county assessor that validates those very facts.  Casey thought it was McIver who provided that information to KPOG last year. 

Laurie Burpee believed article Smith was TALKing about is one he wrote in reporting on a board meeting.  If tax cap is eliminated altogether residents will be in pretty much same position as non-residents are now.  Both would pay double taxes; there is no one else to absorb the load.  He noted Kiawah comprises only 3% of total properties in Charleston County. 

David Warner – Agreed equity of tax can be argued, but real question is if board is being asked to support position on rental issues and taxes that will affect quality of life on Kiawah.  Board should protect rights not just of majority but also minority.  As Pulleyn said earlier, KPOG should not take an advocacy position in these matters.  

Orban argued board is not taking an advocacy position, but should get information out, publish something in TALK.   Burpee said with board support he would be willing to publish something written by Lapp putting forth his position under his (Lapp's) signature.  This would not mean board necessarily supports NOAC's position, but purpose of TALK is to provide forum for all members. 

Lapp said doesn’t blame Warner, McIver  for worrying about their taxes doubling.  “You’re feeling our pain.”  Depending on how board decides to handle the issue, Lapp felt KPOG needs to be more explicit about what its advocacy means. If KPOG is going to claim to be an advocacy group, be one.  If KPOG is going to be an information source, which it is and it's a good one, Lapp would pay his $46, but implication right now to new property owners reading website is that KPOG is an advocacy group.  [ed. note:  Click here to read the purposes of KPOG as enumerated in the by-laws.]

Howard Runyon (KPOG board) pointed out advocacy took place when town, KICA, KPOG were supporting cap for everyone.  He didn't think anything is served by residents joining non-residents in opposing cap.  Most Kiawah residents don't use the schools either, have to pay for addition police services.  Now that the cap is selective, KPOG can’t just abandon support of cap and leave residents out. 

Betty Fulton - Observed Warner and McIver don't even want KPOG to put information out to everyone, which in itself is a position which favors one group over another.   

Bob Feldman said board agreed to put out information when agreed to give NOAC a link on the KPOG website. 

Casey thanked everyone for their participation, saying people don't have to agree, but do have to respect differing opinions.  Board will have to meet again for further discussion.

Lapp added that when the dust settles, we’re neighbors.  He’ll be there for his neighbors with the Folly Beach groin issue and whatever else. 

Stan Novaco – Pointed out recommendation on non-resident board seat would require a change to bylaws. He observed board could relatively quickly, while avoiding the issue, get information out about how to appeal an assessment.  Lapp said it's almost too late for that now, but the information is on the NOAC website.

adjournment - 5:45 PM

Absent: Tug Greer, Past President; Connie Kerdasha, Director; Carol Fishman, Secretary (arrived later)

The agenda was covered out of order.

Stan Novaco distributed copies of the telephone directory proposal. He then reviewed the document with the board. Highlights: new responsibilities for publishing the KPOG telephone directory were established and divided between several volunteers. Wendy Kulick and Stan Novaco will continue to provide database support. Tom Cowan volunteered to be the board liaison to the Directory Committee.

The directory is targeted for completion by August 15, 2001. 2400 copies will be printed. The number of copies to be printed is based on the last directory plus growth on the island and the fact that it is a 2-year directory. The next directory would not be distributed until 2003.

There was very little difficulty obtaining information. The printers were very helpful and the effort should be easier this time. The directory should not be much larger than the last one.  The directory letter will be sent out next week with the membership letter. The Directory Committee will meet again on 2/19/2001.

Patrick Casey indicated he would make a proposal to the KPOG board to review the dues structure and include one directory with membership. One reason for his suggestion is the number of comments by off-island members about how information is disseminated by KPOG. He indicated this would show them KPOG is listening to them. Members would get a directory and a pledge that information would continue to be included in TALK.

Casey recommended increasing membership dues to $46 and including 1 telephone directory. Members could also order additional books. The costs have been run through the Budget Committee and these costs are included in the budget. KPOG would amortize the book over 2 years since it is a 2 year directory.

John Fenimore asked if the $46 would be minimal dues going forward. Casey said he did not anticipate an increase. KPOG put a lot of money aside this year for legal expenses; only about one quarter of it was spent. The remaining is left for reserve. Tom Cowan indicated the reason behind all of this is to increase our membership. Casey also felt the directory provided so much additional information over the "other" telephone book that is published.

Arnie Liebman presented the 5 new membership letters. He reviewed one of these with the board, outlining the wording re: the new dues and phone book. Tom Nelson asked if non-property owners could purchase a book? Several people indicated they were not supposed to purchase a book. Don McIver suggested KPOG look into getting the directory copyrighted and indicated it would not be difficult.

Casey proposed the Board accept the membership letter. Cowan seconded.

Tom Shealy, from the audience, asked why KPOG would want to sell the directory to non-members. Several people responded because they are property owners. Shealy also suggested putting in the letter a statement that KPOG is a group of volunteers, etc. He wanted to see the word " volunteer" in the letter. He pointed out it could be construed KPOG is an organization out to just make money. Cowan and Casey worked through the membership letter and added the "volunteer" phrase.

Novaco indicated that 128 non-members bought 147 books when the last directory was published. Tom Nelson suggested increasing the price to non-members to perhaps $20. Gail Quinn agreed. Browning Crown, President, suggested they review the budget before voting on the proposal.

Treasurer’s Report - Don McIver

Don McIver presented this year’s budget and expenses year to date. There is almost $50,000 in the bank. It is looking better this year because of delayed legal fees. Crow indicated KPOG doesn't know the amount of legal fees for next year.

McIver felt the town would pick up a big portion of the utility-related legal costs. He indicated the '96 and '98 water rate cases are in front of the judge. Only active legal issue at the moment is the utility management audit. Legal fees for the next 3-4 months should fall off. The judge has a lot in front of him at the moment and it will be awhile before he gets to the Kiawah utility issues.

2001-2002 budget:  McIver distributed the new budget and suggested the board look at the budget without the directory costs first and get comfortable with it, then add the directory costs and income. Very few changes were made to the budget over the past year’s budget. Some items were tweaked up or down. Legal fees are set at $10,000 for 2001-2002. There will be a good reserve left from this year.

Casey asked about the line item for non-member mailing. McIver responded it is for any special mailings to all property owners.
The allocation for the Research Committee is for any special project that would incur expenses.

Carol Fishman asked about the dues reduction. McIver said it was because legal fees are only $10,00 for the next year. The budget is planned on base fixed expenses. Most expenses are predictable quite accurately except for legal expenses.

Tom Shealy, from the audience, asked: "How realistic is the membership projection of 1650? " Casey responded that in years when  the telephone book is published membership increases by about 150 members. Plus, he added, KPOG's commitment to better disseminate information on a continual basis should add to the membership numbers. Cowan felt the calculation they went through indicated they could have up to 1800 members.

McIver asked if the board could reach a consensus? Cowan indicated OK with 1650. Liebman indicated that based on history, he feels OK with the projection. Lide Glenn wanted to use the current number of 1450 as basis. He said that since there were no burning issues, membership had declined.

Liebman then brought up the NOAC group. Novaco indicated NOAC denied sending the e-mail asking its members not to renew their KPOG membership in 2001. He said someone took their mailing list and sent out the email without their approval.

Casey re-submitted the proposal to accept the 2001-2002 budget with the increased dues, include a directory with each membership, and charge non-members $20 for a directory. McIver indicated the new budget would be based on: an increase in the dues to $46, a projected number of 1650 members, and 150 telephone books sold to non-members at $20 per book. This should reflect roughly a $3000 increase. He will update the budget and re-distribute it to the board.

Tom Nelson seconded Casey’s motion. The board accepted the proposal.

COMMITTEE REPORTS

MIS - Stan Novaco

He has purchased 2 copies of Quick Books. The database is ready for the membership drive. He will take his laptop to the annual meeting on the 24^th for membership verification. He also indicated the Internet Management Committee (IMC) will not have a separate line item on the monthly board meeting agenda, but will be included in the MIS committee report.

Novaco mentioned the NOAC group has requested a link from the kiawah.org website. The IMC is planning to meet to consider the request. Policies for this and similar such requests will need to be discussed and developed. The IMC hopes to have a recommendation for the board at the next meeting.

Some members of the board asked questions about links and how they worked. Novaco explained a link was similar to a short cut to another website.

Nothing to report.

Nothing to report.

• Utility Rate Case - This is still up in the air. Crow hopes to have an update for the next KPOG board meeting. Something came in this morning that may relate to Cassique water issues.

• Carol Fishman commented that a number of people recently received a letter from the Kiawah Island Utility containing an "application of service" document with a date of 2/7/01. Apparently it was sent to those property owners where there was no record of a service application. Fishman called the utility to ask if it was related to the management audit and was told it was not. She said she changed the date to 1996 and returned the form.

• NOAC Group - Crow received an e-mail from a NOAC member indicating they no longer wanted to be members of KPOG. This will be noted in the next membership letter.

Lide Glenn, outgoing director, indicated this is his last meeting after being on the KPOG board for 3 years. He reflected that he has seen lots of changes on the island in the last 3 years: the town now has contested elections; the KICA board will have a property owner majority; the hotel development agreement is in progress. He indicated that many methods are now in place to resolve issues on the island.

Glenn continued that he is concerned that KPOG as a "watch dog" it may "get in the way" of things getting done on the island. TALK does get read. The website is absolutely extraordinary. He felt the volunteer effort that supports KPOG should now be turned to efforts to support KICA and the town.

Glenn said in 3 years KPOG had only worked on the utility rate case, and now the town can take it over. He felt KPOG will only cause mischief. NOAC is not something KPOG should get involved with. The board going forward should think of its role. The process is now in place for the town and KICA to address issues. Glenn indicated he had sent a letter re: his concerns to Browning Crow in advance, and then distributed a copy to the other members of the Board. Crow indicated the letter should be addressed at the next board meeting.

Carol Fishman said the meeting room has been reserved. Anne Connellee has agreed to help her staff the registration desk. The rest of the plans are up to Stan Novaco and the Nominating Committee. Carol indicated she would work with them. Novaco indicated it was all under control.

Some discussion was held regarding the person who would conduct the presentation for the town at the annual meeting. Mayor Jim Piet does not plan to TALK and has suggested Don McIver present a utility update and David Warner present the short-term rental issue. A question was asked about the VIT presentation and whether it would include a presentation on the new hotel.  It was suggested they hold the presentation outside the meeting, perhaps in the hallway. KRA was asked to TALK and declined. Tom Shealy asked what reason is given when KRA turns down the KPOG invitation to speak. Crow responded they provide no reason.

ADJOURNMENT  - The meeting was adjourned at 3:39 PM.

Audience of 16.  Past President Tug Greer absent.

Committee Reports

Membership - Director Arnie Liebman
Solicitation of membership is over for '00-'01 fiscal year.  Final membership=1399, about 100 fewer than last year.

Membership renewal letters & solicitation letters for non-members will go out towards the end of February with actual dues amounts for next year.  Non-members'  letters will include "Who Does What for Whom on Kiawah" document, which includes an explanation of 11 organizations on Kiawah.  Liebman sought input regarding how to upgrade, improve, and edit this document.  KICA put out a condensed version of this; not as informative.

MIS - Stan Novaco
Database has been modified to reflect new membership year.  As usual, a copy of this year's database will be "frozen," so that it can be referenced in the future.  Thanks largely to Wendy Kulick, all parcel ID numbers have been inputted, which will allow complete database design previously considered.  This will separate owner records from property records, creating two unique & distinct databases.

Novaco is making changes required to produce owner directory, even though decision to do so has not yet been made.  He is working with telephone directory people to redefine responsibilities and break them into 3-4 workable areas to distribute work amongst more people with a board member liaison.  Novaco will meet Thursday with 3-4 potential candidates.

President's Report - Browning Crow
15% tax cap
Crow has received at least five e-mails through kiawah.org from people questioning the 15% tax cap and seeking KPOG to do something.  Crow was not sure how KPOG can help other than putting information articles on the website and in Kiawah Island TALK. Crow had hoped Laurie Burpee could have been present to address letter to the editor.

Secretary Carol Fishman noted TALK had printed David Warner's letter explaining how the numbers work with the tax cap changes, as well as Steve Lapp's letter and several articles which touch on the issue. The Non-resident Owners Action Committee (NOAC) had asked KICA to fund a letter, which KICA at first agreed to do.  Decision later reversed because NOAC was also going to use it for KICA political issues, which KICA cannot fund.

Vice President Patrick Casey has also received a few letters.  One said it felt TALK did not do enough to air the controversy on the tax cap.  Casey would like to have Tom Nelson go through past three years' issues of TALK to see the number of times matter was reported. Casey feels KPOG has been informing people about this issue for a while.

Novaco said in the past, KPOG would typically do a special report, which non-residents have historically expected, such as the one done on the issues of town annexation and extension of the KICA covenants to include the Andell property.  KPOG's Research Committee or an ad hoc committee has studied issues such as these in the past.  Results of these studies have then been mailed to all property owners, not just KPOG members.  Novaco thinks this was a reasonable expectation and that the board should have done something like this.

Assistant Secretary John Fenimore asked if would have been possible to do this with the tax cap issue, which is a changing, fluid one. Novaco noted KPOG is in the information business.  All known facts, i.e., if tax cap in place, this is what impact will be, and scenarios could have been laid out.  KICA Property Owner Director (POD) Bill Wert disagreed with Novaco, saying the 15% cap for owner-occupied properties only came out very late.

[Editor's note: In researching this issue, it was determined that the first mention of a possible resident-owner-only cap was published on the KPOG website on or about September 25. It was taken from a September 24 Arlie Porter article in the Post & Courier. This article and others are still in the KPOG website archives.  In addition, on September 25, Town of Kiawah Island Mayor Jim Piet discussed the possibility of a resident-only cap at the KPOG quarterly meeting.  A summary of this meeting was also published on the website, as well as being published in TALK. This meeting report is also still on www.kiawah.org.]

Jack Pulleyn noted that every Post & Courier article on the subject has been posted on the KPOG website.

Wert said he has been intimately involved in the issue for the past 6-7 weeks.  NOAC charter says non-residents have not been represented on either the tax cap or rental issues.  Wert agrees with Novaco that maybe KICA and KPOG should have sent something on November 5th, when the vote for the 15% tax cap went from 4-3 in favor to 6-1 in favor of tax cap only for owner-occupied homes. Wert takes great umbrage that KICA, the town and KPOG were asleep at the switch.  NOAC was looking for financial support, mail lists and support on the tax cap issue.  If NOAC strikes a desire to sue, Wert doesn't know if there will be enough money to fund the suit.

Fenimore  indicated he had heard that each person would be asked to contribute $200.  Wert said this is based upon 89% KICA members being non-resident, a number with which Wert disagrees.  Multiplying $200 by 3,000 property owners yields $600K. Novaco said a letter posted on the NOAC website indicates that if ½ non-residents contribute $200 each, it will yield $400K.

Utility Matters
Crow, Casey, Wally DuBois, Dick Sayers, Piet and McIver met for more than 3 hours on January 15th.  There has been a flurry of correspondence recently regarding the management audit (MA) and trying to work with Kiawah Island Utility and KRA to agree on the scope of the study.  Cassique water contracts and the '96 and '98 rate cases are still ongoing with no agreement between the parties at this time.  Crow noted key to resolution of all these issues is some agreement on the scope of work of the MA.  The Public Service Commission (PSC) has made the decision to get the MA completed because it will have a major effect on all of them.

Kulick asked if the PSC had set any deadline before it would go back to the Supreme Court to force some action.  Crow said contact to date had been limited to PSC staff, which really isn't doing its job.  He expects there will be some action taken before too long to bring the MA to a close.

Old Business
KPOG telephone directory
Casey asked if it were cast in stone any where that a new directory is to be produced every other year.  Novaco noted Kiawah's population is "highly movable" and that the data in the most recent directory is more than two years old.  The membership counts on KPOG for a number of things, including an owner directory.  Novaco noted that part of his report on the work of the Nominating Committee includes the fact that lack of visibility of the KPOG board (i.e., owner directory, rental issues and tax issues) has made it difficult to recruit nominees and members.  It may not be written in stone, but the membership has come to expect the directory every other year.  Novaco thinks it's necessary to consider it almost mandatory to publish a directory.

Novaco thinks it may be too late to combine directory information with '01-'02 membership solicitation.  Kulick supported Novaco and urged the board to publish a new directory.  The board agreed Novaco should meet with potential volunteers (the MIS Committee is already prepared to help with a directory) to attempt to have mailing on directory coincide with membership solicitation.

New Business
Exchange Club request for KPOG to provide Kiawah addresses for next directory
Novaco noted there is no technical problem which would prevent providing the information.  Kulick pointed out the board would have to ascertain if the Exchange Club meets the criteria for KPOG providing information as it has done in the past for POPS (must be non-profit organization and must promise not to provide information to any other entity).  Director Tom Cowan questioned if there would be a risk that someone from Kiawah would not want to be included in the Exchange Club directory; if KPOG were to agree to do this, it should let people know.  Novaco said the answer to both questions was "yes."  

Fishman believes KPOG should explore more what Exchange Club needs and what timing requirements are; doesn't think KPOG should provide information on disk.  Kulick agreed there were potential problems and that if KPOG were to assist the Exchange Club in any way, people need to be told and given the opportunity to request they not be listed.  The board agreed a written request from the Exchange Club was necessary before further consideration could be given to the request.

2001-2002 KPOG budget
The budget will be available shortly.  Novaco suggested a special board meeting to approve the budget rather than waiting until the next regularly scheduled board meeting so that membership solicitations could be mailed.  McIver expects the budget committee to meet within the next few days.

In a related issue, since McIver will pass KPOG financial records to the next treasurer using Quick Books, Novaco recommended KPOG use unexpended MIS funds for database redesign to purchase two copies of Quick Books, for the incoming treasurer and assistant treasurer.

Information about the new hotel
Casey said information on the new hotel must be included in the next issue of TALK.  The proposed Development Agreement (DA) between the town and the resort is not yet set in stone.  The Planning Commission will be reviewing the proposed agreement syllable by syllable.  Casey thinks everyone needs to be made aware of what is planned.

McIver noted there is a U.S. Supreme Court case which may impact the hotel, and the resort is trying to determine if it will.  He thinks things will be firmed up before the next TALK deadline.  Kulick asked McIver to ensure the town gets any pertinent information on the DA to the website for posting.

Treasurer's Report - Don McIver    (out of order)
McIver noted KPOG's financial position is still very favorable.  Expenses are in line or less than anticipated, especially legal costs because the town took over legal expenses regarding utility issues.  This will impact next year's budget.  KPOG currently has more than $48K in the bank, some of which will be spent on expenses not yet incurred this year.

Fishman requested that in setting next year's budget, consideration be given to increasing reserves, which used to be around $50K. Kulick urged board to consider the importance of reserves when setting next year's dues.  KPOG has been able to take the lead on major issues because it has had a "war chest" available for legal costs and other expenses.  Without financial backing, KPOG could not take the positions it has in the past.  McIver thinks contributions to reserves will double from last year.

New Business (resumed)
Officer/Director slate for 2001
Proposed slate data distributed by Nominating Committee Chairman Stan Novaco.
Patrick Casey - President
Tom Cowan - Vice President
Tom Shealy - Treasurer
Judy Sanders - Assistant Treasurer
Howard Runyon - Secretary
Vicky Meister - Assistant Secretary
Diane Beck - Director
Connie Kerdasha - Director (2nd year of term)
Ben Lever - Director
Arnie Liebman - Director (2nd year of term)

Once the above slate is accepted, Novaco will ask acceptance for Steve Orban to fill remaining year of Tom Cowan's term.

KPOG Annual Meeting
Fishman noted there is much logistical work to be done before the February 24th meeting.  Fenimore and Fishman will make sure the mailing goes out by the deadlines set forth in the by-laws.  Ann Connellee has agreed to chair the Proxy Committee/registrars.

Non-resident board members
Novaco noted non-residents were not actively recruited.  Thinks the board should consider a rotating non-resident directorship.  The details of such a position may have to be worked out by the By-Laws Committee.  He observed that although Assistant Secretary John Fenimore is a non-resident, most property owners do probably not view him as a non-resident because he lives so close to Kiawah (Charleston).

Fishman said the Governance Committee of KICA has been considering this for the last two years, i.e., a villa owner.  Kulick and Novaco gave at least three examples of villa owners who had served on the KPOG board in the past.  Lide Glenn said the Governance Committee had concluded that the only people who would be willing to devote the time to issues would be those who are here most of the time.  Novaco agreed with Glenn that this might be a Research Committee issue and reminded him that about 75% of KPOG's membership is from off-island property owners.  Fishman suggested the new board decide direction it wants to take on this issue.

KICA 2001 assessment
Crow called POD Wert a few days ago to ask why this year's assessment is going up 5%, compared to the 4% it was raised last year.  Wert acknowledged that last year was the first time the increase was less than the maximum.  He indicated there had been no groundswell of approval for this.  5% is the traditional increase and the maximum allowable.  

Wert says KICA's labor costs rose 18%, with a 40-50% hourly increase this summer.  To keep good people and to try to reduce turnover, KICA had to give an increase.  Wert says KICA is responsible for more properties, and expenses were up about 5% overall.  Surpluses are not touchable by the covenants (i.e., Major Repair/Replacement Fund and Contribution to Reserves).  KICA is looking at increased security costs not currently covered, i.e., short-term visitor issue, greater number of patrols, which will cost about $120K.

Crow asked Wert if the same explanation applied to the increase in the assessment at the Vanderhorst gate.  Wert said it did and clarified for Casey that only those who own property behind the second gate pay the extra assessment, even though all property owners are able to go beyond the second gate.  Wert said KICA is trying to make V-gate security tighter and that ½ the traffic which comes through the main gate goes past the V-gate.  Wert said it is a vexing problem.

Casey said he thought he had been told that when the V-gate was moved for the River Course, there would be a list of tee times for the golf courses behind the V-gate.  Wert said KICA is looking at an interactive computer system which would permit that.  Kulick noted as a point of information that the V-gate was moved so that Rhett's Bluff fell behind it; this occurred before the River Course was built.

Casey asked what Wert meant by additional funding requests for the KICA budget.  Wert explained that these were requests which came in after the budget was finalized, i.e., a consultant for the Governance Committee.

ADJOURNMENT  - The meeting adjourned after 1 ½ hours.

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