On Sept. 14, we reported that the KICA Board of Directors had met and approved a supplemental assessment for clean-up and repair costs associated with Tropical Storm Irma, pending final cost estimates on repairs. The total restoration costs for Irma are projected to be $1.1 million. This will result in a supplemental assessment of $225 for each developed residential property (undeveloped lots pay half that amount, and commercial properties such as the resort and developer pay significantly more). This assessment is expected to be mailed to members in early October and will be due within 30 days.
The cost breakdown for recovery expenses is as follows:
Landscape clean-up including tree companies, third-party landscape crews, debris removal, vacuum truck for storm drains, KICA staff overtime, supplies, food for crews and bridge inspections: $298,000
Landscape mitigation including replacement of shorted-out irrigation controllers, plants, turf and pine straw: $124,000
Pond mitigation including aerator repairs and replacement, pond edge erosion control at washouts, fish restocking, and mosquito abatement (associated with standing storm water and the wash-out of prior larvacide treatments): $60,000
Dock repairs at Rhett’s Bluff and Bass Pond: $65,000
Road washout repairs: $274,000
Leisure trail washout repairs: $57,000
Gate controller repairs: $31,000
Total: $1.1 Million
Frequently Asked Questions
What about Insurance?
KICA doesn’t insure infrastructure such as roads, leisure trails, drainage pipes, docks, boardwalks and cleanup costs because coverage is either unavailable or cost prohibitive. The association does insure assets which can be traditionally insured, such as buildings, vehicles, etc. Annually, KICA staff work with professionals to develop its insurance program recommendations. The recommendations are then reviewed by the Finance Committee and the board prior to their approval and implementation.
What about reserve funds?
KICA develops reserves to replace roads, bridges, boardwalks, and other infrastructure based on projections of expected useful life, however, we do not have a reserve for natural disasters. The reserves on-hand are there to ensure we have replacement dollars available when an asset needs to be replaced based on its age. Therefore, when material costs are incurred for storm clean-up, they must be recouped by an assessment.
Do the developer and resort pay this assessment as well?
Yes, both pay a substantial portion in accordance with the formula dictated by the Covenants.
Do you have questions or comments on the special assessment? Email them to firstname.lastname@example.org.