WEST GALVESTON ISLAND PROPERTY OWNER'S ASSOCIATION

MINUTES OF THE BOARD OF DIRECTORS MEETING

The Board of Directors of the West Galveston Island Property Owners Association held a meeting on April 19, 2009 at the Moody Gardens Hotel. Jerry Mohn, President called the meeting to order at 9:00 a.m. A quorum of Directors was present. Directors in attendance were Bermuda Beach – Bill McFarland, Condominiums – Tom Boothe, Isla Del Sol – Boyd Carr, represented by Susan Gonzales, Pirates Beach & Cove – Sidney McClendon, Pointe San Luis – Debra Phelps, Spanish Grant Beach – Peggy Zahler, Spanish Grant Bay – Barbara Piersol, and Terramar – Ed Nadalin. Recording Secretary: Susan Gonzales, President CKM Property Management was present.

The following Officials were introduced: Judge Trey Dibrell, District 6 City Council Member Karen Mahoney, Chair of the Parks Board Jeri Kinnear, Deputy City Manager Brandon Wade, Sgt Brett Luck and Gordon Morse with the Galveston Police Department, and Peter Davis Director of Life Guards.

Corporate Sponsor Peggy Zahler was also present.

The minutes of March 2009 had been emailed and were reviewed. Upon motion duly made by Tom Boothe and seconded by Peggy Zahler, the following resolution was adopted by unanimous vote. RESOLVED THAT, the Board approved the minutes of March 2009 as presented.

Jerry Mohn gave treasurers’ report. WGIPOA has total cash of $32,000 and assets of $45,000. Upon motion duly made by Peggy Zahler and seconded by Bill McFarland, the following resolution was adopted by unanimous vote. RESOLVED THAT, the Board accepted by financial report.

GARM (Galveston Association of Rental Managers) - call 409-682-3603 if related to a rental property only issues. Gordon Morse drove Claire Reiswerg and Jerry Mohn on April 1 the entire 18 miles of beach from San Luis Pass to the end of the Seawall. The purpose was to see about many complaints of cars on the beach and no bollards or signs. The signs have been installed but the beaches are lacking bollards. There are signs, which cannot be seen by those on the beach. There are 23 unauthorized access points to go onto the beach. Most of these were created shortly after Ike when people were trying to get to their homes and are now used on a regular basis. The City suggests subdivisions to add a snow fence or install bollards to stop these access points from being used. City has ordered 3000 bollards and is doing 80 per week and all installed at pre Ike locations before Memorial Day. For every 15’LF a subdivision has to provide one (1) public parking space.

The west end is very vulnerable to thefts now since the dunes were destroyed by Ike and vehicles can now drive right up to homes from the beach. Tickets and warning tickets are being issued for driving on the beach.

Real Estate Report – Alice Melott – rentals are increasing First quarter since Ike; and 27 sales of single family homes. 268 listing of homes with only 27 sales in last three months is not great news. Still looking to bringing back real buyers, not those who are looking for a deal from Ike damage. West end is a second home market and there are not many foreclosures.

UTMB - JD Epstein reported on the Thursday UTMB Austin meeting and HB 4586, which was passed. JD Epstein stated pre Ike UTMB had employees 12,000 and 60% did not live on the island. UTMB has tremendous local support funding. Craig Eiland, Speaker Protem, is very powerful and helped get this Bill passed with 141 votes yes and only 5 no. JD also mentioned Rep. Deborah Riddle from Conroe was also very helpful with the passage. Since 1970 the Sealy Foundation has given UTMB $500 million for the Sealy Smith Hospital. UTMB is back to hiring. Since UTMB is no longer a Level 1 Trauma Center, Ben Taub Hospital and Herman Hospital in Houston have taken the patients and are really over burdened. Prior to Ike 14% of the patients had no insurance and this has placed a burden on Houston hospitals that now care for these patients and causing real money losses. There are Federal funding programs for hospitals, which are sent to the State and then supposed to send to the hospital. UTMB is supposed to get $100 million yearly but since 1999 no funds have been received and the State places the funds in the general fund account. UTMB is now asking the government to give UTMB the money. To continue the pressure in bringing back UTMB to it’s previous position, there is a PAC where contributions can be sent, anywhere from $50 to $50,000 to: Friends of UTMB, attention of Angelo Zottarell, 405 West 14^th, Austin, Texas 78701.

Windstorm Insurance Report - Otie Zapp: 44 days left to this legislative session. There are five Bills that could help and three Bills could hurt us. Rep. Smitty’s Bill HB 4733 and Senator Frazier’s Bill SB 14 need to be stopped. The amount of support coming from individuals is very important. These Bills could hurt our economy. Check the coastal windstorm Website: www.cwictx.org for information on legislation on windstorm insurance. Ask your members to call, send a letter or fax to be effective, in person is the most effective. Email is the list effective. SB 14 would be an 80% to 127% increase in costs of Windstorm and would change who qualifies for windstorm. If you do not have a windstorm certificate WPI-8 on your home, you have to pay 20-30% more for windstorm coverage.

Upon motion duly made by Sidney McClendon and seconded by Bill McFarland, the following resolution was adopted by unanimous vote. RESOLVED THAT, the Board approved $2000 be paid to the Galveston Windstorm Action Committee towards addressing Windstorm Bills.

District 6 Report – Karen Mahoney, City of Galveston Counsel Member.

Yesterday City Council received long term plans – tune into the municipal channels. Housing issues were being addressed. Marquette got their final plat on tract 2 & 8. Karen asked that the Hi-Rise be moved to north of FM 3005. It appears it takes more to recover when the structure is hi-rise and hi-density. Karen stated she would attend property owner association annual meetings when asked. Karen prefers phone calls to email.

Brandon Wade – Deputy City Manager "State of Galveston after IKE". The Water Environment Association of Texas has chosen to award the City of Galveston Municipal Utilities Department "Medal of Honor for Heroism" award. The association recognizes an individual or group of individuals who have demonstrated exceptional courage and bravery in the performance of heroic behavior toward their fellow man. The Galveston Utilities Department employees worked 72 hours straight and refused to stop even when ordered.

Brandon visited Cities Gulf Port and Biloxi after Katrina storm to gear up for Galveston. Ike has been a learning experience especially with the Federal tangle. Frustrations have been very high in dealing with FEMA. The perception is that FEMA is to fix everything because they are responsible to fix things except where another fed agency is responsible. The end result according to Brandon is that we have to help FEMA understand their rules. As an example, the Federal Aid Highway map shows that some of our traffic signals are under federal, while others are under FEMA. Debris piles, Justin Bowling from the Utilities Department has worked very hard on the debris pick up. FEMA debris manual tells them whether it can be picked up by FEMA based on a certain criteria. The City of Galveston has had to figure out which agency can provide the help needed in working through the Ike recovery.

City finances: The City has an $85 Million budget, approximately 50% is from property taxes, but taxes are down 10-15%, plus appeals will change the end number. Sales tax is up due to repairs materials. The water is down 19% at $20 million, sewer down 13%, but the drainage and utility fund is even. The capital improvement program has stopped, unless a project was already started. The City will have to go back and look at financial condition to see if we can resume any project.

The 75/25 FEMA split will hurt the City of Galveston. FEMA stated the repairs needed for the water treatment plant was at $1 million; our actual is at $75 million.

FEMA

• The City has $51 million pending projects and the City has applied for Hazard Mitigation Programs at 4 million.
• Buyouts: There is $28 million in pending housing buyouts with 64 homes on the list, $2 million in pending payments from the Federal Highway Administration. Should be ready in two weeks. Brandon did mention that the housing buyout and Ike dike are at odds with each other because if a property is bought out the Ike dike cannot be built on that property.
• CBDG Funds: The City will receive $267 million in CBDG (Community Block Development Grants) with $167 million earmarked for housing - the criteria is that it must be storm damage and for low to moderate income; and $106 million for non housing activities that must be storm related. Community Block Programs can provide funds for water, Sewer, Drainage, Police & Fire vehicles – must be storm damage.

Police Department: City of Galveston Police department is down more than 20 Officers. The City of Galveston has a hiring freeze. Non-emergency call 409-765-3702 or 3703 other wise call 911 for emergencies. Some issues that are occurring, children driving golf carts, driving on the beach, trespass on to property on the beach, camping out on vacant homes, theft, begging door-to-door, etc. Susan Gonzales stated that we are having different types of crime and increased crime and asked that the City allow the hiring of the missing officers. Brandon Wade stated he has looked at the City of Galveston financial situation and may be able to help. Marty Baker recommended subdivisions hire additional patrolling to help deter crime. The City has 2 cars assigned (previously three) to the west end with one supervisor. At times, there will be 3 cars.

Other City problems reported by Brandon include:

• Traffic signals – the city is working on reinstalling all signals. There are 116 traffic signals in the City; however, 115 of the 116 signals are considered Federal Aid Signal responsibility and this goes through another FEMA review and process. There is no funding source for computer inter connects for the signals to become coordinated from 53^rd to 10^th street on Broadway. However, for the traffic signals along the Seawall at 61^st, Central City Blvd, and 81^st street, the inter connects are coming.
• Signs - There are 800 Regulation signs missing but the City intends to replace them all. The stop sign & street signs are to be replaced first. If there is a safety issue with a sign missing, please call in Public Works at 797-3600 or Email: publicworks@cityofgalveston.org to report missing signs.
• Bollards – are being installed based on the 2008 Aerial photos and pre Ike positions. See above report on GARM.
• Debris – April 26 is cut off for FEMA debris pick up. $50 million worth of debris has been picked up. 1.4 million cubic yards of debris has been picked up by the City of Galveston and ˝ million cubic yards picked up so far by Texdot. The City is using TexDot to help pick up debris on large lots of public property. If there is debris is in a large open space undeveloped or close to or in a wetland area FEMA will not pick it up. TexDot through right of entry can pick it up if placed on FM3005.
• Debris: Builder contracts are responsible for disposing of their debris. Roof shingles will not be picked up by FEMA.
• Terramar: City of Galveston is working towards getting Terramar’s streets re-paved. The city delayed the project due to problems with the contractor but the problem appears to be resolved. Additional work will be done on the drainage as well. Gulf Drive should get a limestone street soon.
• Acapulco Village has private roads – the City of Galveston has no authority unless it is a City street. There are 20 private streets on the island. If the council approves to accept the road way and possibly the City can have the community block development grants (CBDG) to pay for it.
• Bermuda Beach:
• Bermuda Beach Drive is gone, and the GLO states it can build it back but other agencies also have to agree. FEMA writes up the work sheet but the environmental department (TCEQ), subject to restrictions, must approve it. The use of limestone may be used, but no decision by FEMA has been made, but they are considering it. Access to the streets is also a problem.
• John Reynolds Road and Circle, the City will be able to use limestone for a better path. The City is considering rebuilding the roadway in the future or driving out onto the beach to get to the Circle. 3^rd option is to work out an arrangement with Marquette to use connection to the road.
• Temporary water lines – will only be provided to permanent residents, city had to negotiate to put in temporary water lines until FEMA approved the permanent line. Do not see a permanent line in until the fall.
• Grinder Sewer Pumps: this an unpopular solution. City will not pay for it. In the future, City requirement for any home construction south of FM 3005 will be required to install grinder pumps. Pumps cost around $6000.
• Gravity sewer system: This will be handled on a case by case basis.
• Pabst Road: Pressure sewers east of Pabst Road – temporary solution, suggested a separate meeting be held. On case-by-case bases the city can put in gravity pumps.
• Sunny Beach – beach access issues are being addressed.
• Sportsman Road – potholes – patchwork will occur.
• 9 Mile Road – potholes – patchwork will occur.
• 9 Mile Road & Ostermayer Rd – may qualify for CBDG funds.
• Trespass Signs: For beach front homes, do not post no trespass signs but call police.
• Fire hydrants – Brandon Wade will follow up on lost fire hydrants.
• Trash pick – what can be picked up? The City will pick up bagged garbage, but not in non-city cans. Brandon will address this issue with his staff.
• Health and welfare issues must be addressed and be kind and understanding.
• Re-cycling center – not taking plastic and cardboard (has to be baled). Looking for alternative. Goal is to have three trucks for normal trash, large items and brush pick up.
• The Long-term Recovery Committee will be coming up with recommendations and is looking at results. Is continuing to look for local match money and doing best for information on a website to provide updates on on-going office.
• The Subdivision Ordinances will be reviewed to better fit our island.
• Code Enforcement: Dilapidated storm damaged homes are being addressed but we need to be kind and understanding of the homeowners problem. If there is a home that has a health or safety issue to please Email: planning counter@cityofgalveston.org
• Illegal signage will be removed down by the City of Galveston. Send emails to Brandon to report illegal signs.

Upon motion duly made by Sidney McClendon and seconded by Bill McFarland, the following resolution was adopted by unanimous vote. RESOLVED THAT, the Board stated that WGIPOA supports the City of Galveston removal of illegal signs from the island.

Adjournment at noon.

Susan Gonzales

Secretary