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 9:00 a.m. Directors making up the quorum were, John Schiller – Acapulco Village; Lindrel Thompson – Bermuda Beach; Sidney McClendon – Pirates Beach; Lew Arend – Dunes of the West Beach; Boyd Carr – Isla Del Sol; James Grady – Pointe San Luis; Bill Moll – Spanish Grant Bayside; Peggy Zahler – Spanish Grant Beach; Carol Stewart – Sportsman Road; and Ed Nadalin – Terramar Beach. Also in attendance was Susan Gonzales – CKM Property Mgt.

In attendance was Karen Mahoney – District 6 City Council Member; Galveston Parks Board Chair – Jeri Kinnear; County Commissioner – Brian Lamb; Judge Roy Quintanilla; Judge Jim Schwitzer; City of Galveston Mayor – Lyda Ann Thomas; Assistant City Manager – Brandon Wade; Assistant City Manager Lloyd Rinderer; Planning Department – Brax Easterwood; and, City Manager - Steve LeBlanc. Corporate sponsors recognized were Peggy Zahler - Johnson Space Center Federal Credit Union; Perry Culp – Apollo Environmental; and, Andrea Madison of Silver Leaf Resorts.

MINUTES: Minutes of the June 21, 2008 meeting were sent by email and reviewed by the Board. Upon motion duly made by Peggy Zahler and seconded by Bill Moll, the following resolution was adopted by unanimous vote. RESOLVED THAT, the minutes of June 21 meeting were approved as presented.

TREASURER REPORT: Cash on hand $41,363.53. Total assets: $43,848.65. Upon motion duly made by Peggy Zahler and seconded by Sidney McClendon, the following resolution was adopted by unanimous vote. RESOLVED THAT, the financial report as presented.

REAL ESTATE STATISTICS – Alice Melott stated there have been no symptoms of recession on the island.

BEACH TO BAY PRESERVE: President Alice Ann O’Donnell discussed the new organization and its purpose in preserving west end land, aquatic, animal, and bird habitat, wetlands, and native flora and fauna. There is a meeting later today at her house.

WGIPOA NEWSLETTER – Peggy Zahler stated the Board wants to provide more information to members and will produce a newsletter. The goal is to publish the first one August/September. It would be in addition to the website. Articles can be expected from the City of Galveston officials on many issues related to the west end. Articles should be emailed to Jerry Mohn.

HB 2819 The GLO has proposed changes for beach dune rules and the Open Beaches Act. The City of Galveston and Galveston County have concerns. WGIPOA is working with the City and County on a list of recommendations. The recommendations should make it more flexible. Sidney McClendon stated that the HB2819 put through last legislation was bias and based on a setback line that is deeper than the one that exists. The amendment to the Dune Rules by the GLO is subject to modification. The City and County asked the GLO to slow down putting this in place and to allow for public comment with a deadline of August 15^th.

The new rules will establish a setback line further landward of the vegetation line. Also the percentage of damage will be criteria for removal such as 50% or more would be set for removal. The GLO has a right to accept or reject the City and County’s recommendations and could withhold Cepra funding and insurance coverage on homes. Many believe that it would be damaging to property values as well. Jerry Patterson is working on nourishment of the beaches and at the same time we have HB 2819.

Peggy Zahler gave appreciation to the City and County Officials who have worked on the issue on behalf of the west end. Special thanks were given to Marty Bilek and Sidney McClendon in attending and addressing the public meeting on July 8 that was held by the GLO at the Justice Center. City Council plans a workshop on July 24.

ELEVATION OF FM 3005 The TxDot Engineering Study is completed – now they are trying to find funding of $25-40 million. HGAC determines appropriation of funds.

TAX VALUATION COMMITTEE Members are Alice Melott, Kelly Kelly and Cheryl Johnson. Please let Alice know if anyone would like to join the committee

WINDSTORM ACTION COMMITTEE (WAC) Roger Feig is the Chairman and Otie Zapp is a member. Otie Zapp spoke on behalf of the Committee and advised the Galveston Windstorm Action Committee (GWAC) was formed in 1986 and works on keeping a lid on the windstorm costs. In 1992 the committee was successful in obtaining $4 million in refunds and over half of that went to Galveston. Several issues to consider: 1) Hearing in Austin – long term help insurers to restore voluntary market; 2) Sunset Commission – reviewing the Texas Department of Insurance and Texas Windstorm Insurance Association (TWIA). TWIA is not a governmental agency or committee and should be removed from this review. Plans are to allow use of models and to cap the increase of 10%/year – intent is to remove the cap; and 3) filing of rate change date is on or before August 15^th. Please let Roger know if anyone would like to join the committee.

TOWNHALL MEETING Jerry Mohn introduced Karen Mahoney, District 6 City Council Member. Karen stated she wants to increase effectiveness by having feed back from property owners and the communities on the west end.

There were several topics City Council Member Karen Mahoney wanted to cover including HB 2819/GLO Rules & Regs; 4B Sales Tax; Charter Amendments; Water/Sewer projects; Drainage; Environment – Impact Study, wetlands Ordinance, light pollution Ordinance, TIRZ issues; traffic; police; evacuation; beaches; bays; east end flats; and quality of life. We were able to get through the Drainage topic. Discussions were very heavy on HB 2819 and the 4B sales tax. Many west end residents emailed their issues and concerns to be addressed at the meeting but time limitation prevented several from being addressed. It was noted that Karen stated any one not able to ask their questions or having addition questions could reach her by emailing to KarenMahoney@cityofgalveston.org. In addition, at each WGIPOA meeting, City Council Member Karen Mahoney will spend 15 to 30 minutes to go over the other topics of interest to west enders.

HB 2819: Planning Commission will have a workshop on July 22 and City Council will have one on July 24. Comments from the members:

• Two assumptions have been that erosion is permanent and will always happen, and that development causes erosion.
• Set back lines proposed by the GLO could end up in taking eminent domain and real legal problems. The general consensus is we do need better set back lines.
• A real problem for the City to buy property considered to be on the beach.
• Development inland helped cause Galveston Island erosion.
• The State of Texas told the Galveston Island Parks Board that stabilizer system could be used, but money is needed.

4B sales Tax: City Council workshop will be on July 22 in the morning at City Hall.

• The importance of the 4B Sales Tax is that is will put sand on the beaches and pay for stabilizers.
• The 4B Sales Tax, as it is important that it pass this time. This is not a new tax it is a continuation of a current tax.
• Use of 4B Sales Tax should be for beach and Bay.
• Steve LeBlanc discussed what the City will propose:
• Each tax to expire in 30 years; basis issue two 15 year bonds
• The 1/8 cent beach nourishment tax that expires May 2009: 1/8 cent for beaches and bays
• The 1/8 cent street tax that expires May 2009: 1/8 cent for streets
• The Ό cent drainage and sewer tax that expires May 2014:
• 1/8 cent for beaches and bays
• 1/8 cent for economic development
• Total Ό cent for beaches and bays

• Charter Amendments on November ballot – important ones:

• Increase expenditure cap from 7% to 10%
• Tax rate capped at $.63 cents
• Remove debt portion of property tax from under the cap

• Petition to add to Charter Amendment:

• Dedicate $.17 cents for streets; $.09 cents is dedicated now. Steve mentioned you need to fix the water and sewer line under the streets before you does the streets. For every $1 for streets, you need $3 for water and sewer.
• Reduce property taxes – now max 10% over three years. Reduce homestead property to 3% and non-homesteaded to 5%.

Drainage: Water & Sewer Projects

• Water: $8 million - $6 million for the Jamaica Beach Water tower. $1.5 million for the water line from 13 mile road to JB; $1 million for the 30^th street pump station.
• Sewer: $8 million - $6 million for sewer at Bay Harbor; $1 million for 9 mile road to Ostemayer; $1 million for Sunny Beach
• Septic Systems: Phase in process when the new sewer lines are in.
• Palm Beach – contracts for sewer being signed in 60 to 90 days.

There being no further business to come before the members and the Board the meeting was adjourned at 11:45 a.m.

Susan Gonzales - Recording Secretary