DINA outlines governance transition plans

In 2016, the Daniel Island Neighborhood Association (DINA) established a Transition Committee whose mission is:

 

• To assess the governing documents and the administrative, operational and financial procedures of the three associations that make up the community of Daniel Island: Daniel Island Community Association, Daniel Island Park Association and Daniel Island Town Association;

 

• To educate residents regarding the events that initiate their rights to participate in oversight of the management of the respective associations and other provisions of the governing documents affecting residents rights and responsibilities; and

 

• To facilitate the ultimate transition to residents oversight of the management and operations of the community of Daniel Island.  

 

The first such transition (DICA) is expected to occur early next year as described in more detail below. The final transition will occur no later than Dec. 31, 2025. Residents electing a majority or all of the members of the governing boards will accomplish the transition.  

 

The Transition Committee has met numerous times since 2016 and has communicated frequently with the developer’s legal representatives to gain clarity on a number of key issues that affect the timing and eventual transfer of budgetary and management control of Daniel Island. The turnover of control of the three associations is an important step in the transition process, but to be clear, the process starts and continues beyond the turnover of board control. The committee has sought to shorten the time period and narrow the scope of the developer’s post transition control. While some progress has been made, we will continue to seek early resolution and clarity from the developer to accomplish a successful transfer. 

 

The following describes the DICA transition process and timetable.

 

What is DICA?

 

• DICA is one of three entities overseeing the governance of Daniel Island property owners’ associations.

 

• DICA’s purview consists of the single family homes, townhomes and common areas generally south/east of 526 exclusive of the area described below as DITA.

 

• The Daniel Island Park Association (DIPA) governs the single-family homes, townhomes, condominiums and common areas within Daniel Island Park (except the Daniel Island Club).  

 

• The Daniel Island Town Association (DITA) governs all commercial and multi-family properties in the center of town, including part of Fairbanks Oak Alley, Robert Daniel Drive, Seven Farms Drive, Island Park Drive, Fairchild Street, Pier View Street, Daniel Island

Drive and River Landing Drive.

 

NOTE: The Daniel Island Neighborhood Association (DINA) is a volunteer organization sanctioned by the City of Charleston that acts as the voice of residents from all parts of the island in raising and resolving issues needing the attention of local, county or state government or the Property Owners’ Association.

 

DICA Board Responsibilities

 

• Review and approve the annual DICA budget

 

• Review quarterly DICA financials

 

• Review DICA audits

 

• Review DICA reserves that are set aside to fund major repairs and replacement of DICA assets

 

• Review DICA contract bid packages

 

NOTE:  These reviews are conducted with the Daniel Island Property Owners Association (POA) Staff.

 

DICA Transition Process

 

• The DICA board of directors currently consists of three members appointed by the developer, Daniel Island Associates (DIA) and two members elected by residents.

 

• The makeup of the DICA board will change when 5,625 dwelling units of the 7,500 units allowed in the DI Master Plan are owned by a property owner other than a builder and have a certificate of occupancy.  This is expected to occur in 1Q or 2Q of 2021. As of

June 2020, we are currently at 5,500 units with certificates of occupancy.

 

• Within 90 days of the 5,625 units being reached, DICA will hold another election to elect one more resident member. The DIA members will be reduced to two resulting in a five-member board (Two DIA appointed members and three resident elected members).  At this point DIA will no longer have the right to appoint a majority of DICA board members.

 

• At the annual DICA meeting in November 2021, four more resident members will be elected to the DICA board. At that point the board will consist of seven members (one appointed by DIA and six elected by residents).

 

Board of Director Terms of Office

 

Resident directors typically serve a two-year term; however the six directors serving after the election will allocate a one-year term to three directors and a two-year term to three directors for the purposes of staggering the terms of the directors on the board, as they deem necessary.

 

NOTE: A director cannot serve more than two consecutive terms.

 

Declarant Transition Period 

 

For a two-year period following the expiration of the right of DIA to appoint a majority of the members of the Board of Directors, DIA has approval and disapproval rights over the actions, policies or programs of the board (including any committees) which, in the sole judgment of DIA, would tend to impair the rights of DIA or any builders under the DICA Declaration or By-Laws, would interfere with the development of Daniel Island, or would diminish the level of services being provided by DICA.

 

• DIA can make its concerns, thoughts, and suggestions known to the board and/or the members of the applicable committee. DIA’s right to disapprove may be used to block proposed actions but cannot be used to require any action or counteraction by the Board. DIA cannot use its right to disapprove to reduce the level of services DICA is obligated to provide or to prevent capital repairs or any expenditure required to comply with applicable laws and regulations.

 

• DIA is entitled to written notice of all meetings and proposed actions approved at meetings (or by written consent in lieu of a meeting) of DICA, the Board or any committee. DIA will have the opportunity at any such meeting to join in or to have its representatives or agents join in discussion regarding any prospective action, policy, or program subject to DIA’s right of disapproval.

 

• DIA will also retain control of the Architectural Review Board (ARB) for an indefinite period of time by its right to appoint all board members of the ARB. The Transition Committee has requested this right have a defined time period with control eventually being turned over to the residents.

 

Voting Process

 

• Any DICA resident in good standing (all assessments paid) may be nominated to the slate of board candidates.

 

• Voting will be done online via community association voting software that has been used in past elections.

 

Further updates will be published as we get closer to the November 2021 DICA election and the “trigger point” of 5,625 units having been reached in early 2021. 

– Dave Campopiano, DINA Transition Committee Chair; Bob Sauer, DICA Board Member; Otto Orr, DICA Board Member