WEST GALVESTON ISLAND PROPERTY OWNER'S ASSOCIATION

MINUTES OF THE BOARD OF DIRECTORS MEETING

Jerry Mohn, President, called the Board of Directors meeting for the West Galveston Island POA to order at 9:15 a.m. Directors making up the quorum were Jerry Mohn, Peggy Zahler - Spanish Grant Beach; Sidney McClendon – Pirates Beach; John Schiller – Acapulco Village; Tom Booth – Condominiums; Bill Moll as the designee for James DeFord – Spanish Grant Bay; Marie Garrett – Bermuda Beach; Carole Stewart as the designee for Clay Lewis of the Sportsman Road POA; and, Mike McCully of Pointe San Luis. Marty Baker was present as the Advisory Director.

In attendance was the newly elected District 6 City Council member, Dianna Puccetti; Judge Roy Quintanilla; Lt. Henry Poretto of the Galveston Police Dept; and, Mike Wright, Legislative Aide for Sate Senator Kyle Janek.

One of the candidates for Galveston County Sheriff, Henry Poretto, was introduced.

Corporate Sponsors Peggy Zahler with Johnson Space Center Credit Union; Bert Feinberg and Claire Reiswerg with Sand ‘N Sea; and, Marie Garrett with Beach Restoration, Inc.

MINUTES: Minutes of the May 19 meeting were sent by e-mail and reviewed by the Board. Upon motion duly made by Tom Booth and seconded by Peggy Zahler, the following resolution was adopted by unanimous vote.

RESOLVED THAT, the minutes of May 19, 2007 were approved as presented.

FINANCIAL REPORT Peggy Zahler gave the financial report. Total income $26,947, Business expenses $3,676, Grant & contract expense $500, Misc. expenses $3,095 with Total expenses of $7,271. Net Income was $19,677 and Total assets are $34,929. Upon motion duly made by John Schiller and seconded by Mike McCully, the following resolution was adopted by unanimous vote.

RESOLVED THAT, the financial report was approved as presented.

City Council Report: City Council member Dianna Puccetti advised the Planning Commission is hearing about the Marquette platting and special use permit request hearing on Tuesday, June 19, at 4:00 PM, City Hall Chambers. In addition, she mentioned the City would be contracting with a height and density plan consultant. The Trust for Public Land "green printing" of the west end of the island is almost complete.

80^th Legislative Update: Michael Wright, Legislative Aide for State Senator Kyle Janek updated the group of the recent legislative session and bills that were approved and signed by the Governor. CEPRA V funding achieved almost 98-99% of what the GLO requested or $19 million over the next two years, the largest allocation ever. Indigent health care did not fare well at all this legislative session and UTMB was not able to secure the type of financing to handle this type of care. There were several bills on eminent domain but none were passed that protects a landowner from possession of the property for development – the Bill that Senator Janek supported to pay fair market value was vetoed. For education, there will be more financial aid available and there will be pay raises for teachers. For public safety, the State will hire 100 additional Department of Safety officers. There will be a moratorium on any toll roads.

Windstorm Insurance: Otie Zapp, President of the Galveston Windstorm Action Committee (GWAC) reviewed the activities on windstorm insurance legislation. HB 2960 was defeated in the last few days of the Session. This Bill would have increased a property owner’s insurance bill up to 233%. State Senator’s Mike Jackson and Kyle Janek really helped in the GWAC’s efforts. This Bill would have allowed the Texas Windstorm Insurance Association (TWIA) to double rates in 14 years. In addition, there was an attempt to repeal existing statutory actuarial rate development criteria and allowing use of models to develop rates, which would give insurance firms more tools to increase rates. The TWIA Board of Directors of nine would change from a 5 insurer majority to 4 insurers plus 3 public and 2 agent directors. This would have made TWIA policyholder supported but not policy holder governed. The WGIPOA expressed appreciate and gratitude to Otie and the GWAC in the money they have saved residences by keeping the windstorm insurance rates to a minimum.

Bank Accounts: Jerry Mohn would like to open up a bank account for all the bank corporate sponsors. The WGIPOA has two bank accounts now at Moody National Bank and Frost National Bank. Upon motion made by Tom Boothe and seconded by Bill Moll, the following was adopted:

RESOLVED THAT, this day of June 16 the Board of Directors approved opening up accounts with the following financial institutions:

• Hometown Bank
• JSC Credit Union
• Texas Bank

The signatories on the account will be Peggy Rapp, Peggy Zahler, and Jerry Mohn.

Beach Restoration: Marie Garrett made a presentation on Beach Restoration’s innovative technology on a multi-phase turnkey on a Coastal Erosion Mitigation Solution (CEMS®) to stabilize eroding beaches. Geotextile fabric is filled with sand and with scientific evaluation of the beach characteristics, they are placed strategically perpendicular on the beach to allow sand build up and sand passage. Solution implementation includes items such as:

• Beach gradient geomorphology assessment
• Wave characteristics and transformation assessment
• Water elevation, including wave set-up, set-down, tide and storm surge variations assessment
• Wind characteristics assessment
• Cross-shore and long shore current assessment
• Wave run-up and wave and wind setup assessment
• Grain size across the beach profile assessment
• Cross and long shore sediment transport characteristics assessment
• Storm erosion assessment
• Wildlife specie pattern assessment

The system has been in place at Stump Pass, Florida, now for three years and the results have been successful. The basis of the CEMS® system is simple: It is more effective and efficient to work with the forces of nature than to work against or compete with nature. Results so far include: Stabilizing the beaches; reducing the current erosion rate and protecting the natural environment

Motion: Before the Marquette presentation began, Bill Moll made a motion that the WGIPOA vote against Marquette Companies present and future applications for permits for the approximately 1100 acres of property they plan to develop on the west end. It was seconded by Tom Boothe. Discussion on the motion ensued and a motion made by Sidney McClendon and seconded by Mike McCully to table the motion. Since tabling a motion has precedence over a motion, a vote was held and the motion was tabled by the following votes:

• Peggy Zahler – table Tom Boothe – against tabling
• Sidney McClendon – table John Schiller – against tabling
• Carole Stewart – table Mike McCully - table
• Marie Garrett – table Bill Moll – against tabling

The Motion will be voted on at the next WGIPOA meeting.

Marquette Development: Chuck Hanlon from Land Vision, a consultant to Marquette, made the power point presentation of the "Preserve at West Beach"

• 1,058 acre master planned community between 8 mile and 11 mile road from the beach to the bay.
• 3,961 single house equivalent units
• 362 acres dedicated to open space – 34% of the land for preservation; 517 acres of open space if a golf course is built or 49% of total open space
• Golf Course approximately 154 acres and part of the area dedicated to open space.
• Density: 4 units per acre
• Project will be built in 20-30 years in 9 tracts. Each tract was reviewed.
• First tract would be adjacent to 8 mile road and FM 3005. Second section would be on the beach adjacent to 8 Mile Road.
• Hi-Rise (Tract 8): 2 – 16 story towers beach front hotels. View corridor and shadow studies have been done in how the towers would affect the view. Part could be a time share.
• Tract 1, 2, and 8 would be the first to be developed within 3 to 4 years.
• Approximately 5 mid rises – up to 9 stories – on various tracts
• Marina (Tract 6) planned on a tract adjacent to Spanish Grant Bay. Use of Spanish Grant canal. Impact of water quality a concern by Spanish Grant Bay.
• Planning Commission June 19 for 3 permits
1. A special use permit for a golf course in the development.
2. A special use permit for a tall building (16 floors)
3. A change in the zoning for virtually all of the areas to "Recreation Use". A change in zoning districts to recreation, traditional neighborhood, retail, and commercial. Recreation to be defined only for a golf course.
• Working with beach home owner associations on issues and concerns.
• Corps permits: Prefer to get Planning Commission and City Council approval first before applying.
• Traffic studies are in process of evaluation
• Preserve the northern area between Stewart Road and FM 3005 with no exists/entrances to Stewart

CEPRA Cycle V: Jerry Mohn advised the passage of the Coastal Erosion Planning & Response Act, Cycle V, for the 80^th legislative session for funds for shoreline restoration projects during the next biennium, 9/1/07-8/31/09. CEPRA V will have approximately $19 million for projects. Applications of Project Goal Summary’s (PGS) for the funds are to be submitted no later than July 1. The funds will come primarily from the sporting goods tax. The GLO was also successful in securing from the 80^th legislative session the funding, approximately $8 million, for the Coastal Management Division, about 104 employees.

Coastal Coordination Council (CCC): Jerry Mohn reminded the Coastal Coordination Council will have a Board meeting on west Galveston Island, June 21, 2:00 PM, at the Galveston Country Club.

There being no further business to come before the Board the meeting was adjourned at 11:45 AM.