WEST GALVESTON ISLAND PROPERTY OWNER’S ASSOCIATION

MEETING OF THE BOARD OF DIRECTORS

June 16, 2001

The meeting of the Board of Directors of the West Galveston Island Property Owners' Association was held on June 16, 2001, at Waterman’s Restaurant. The meeting was called to order by Jerry Mohn, President at 9:00 A.M. A quorum was established by the Directors in attendance: Jerry Mohn, Jim Steinbeck, Sharon Turnley, Debbie Wright, Peggy Rapp, Sidney McClendon, Bill Aimone, and Al Birdwell. Susan McKirahan with C.K.M. Property Management, Inc. and Jeff Sjostrom, President of the Galveston Economic Development Partnership were also in attendance. Jerry Mohn introduced local Government and State guests: Diana Puccetti, Councilwoman for the City of Galveston, Vic Pierson, Mayor of Jamaica Beach, and Jimmy Tyree with the GLO.

Jerry Mohn displayed the recent Galveston Daily Newspaper editorial about seaweed and how the seaweed helped protect the beaches during Tropical Storm Allison. The purpose of the editorial was to make everyone aware how Mother Nature works to restore the beaches and not to rake the seaweed.

Upon motion duly made by Sidney McClendon and seconded by Al Birdwell the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved the Minutes of April 19 and May 19.

Jerry Mohn announced that The WGIPOA web site is operating and can be located at www.WGIPOA.com. The Board of Director’s minutes are now posted on the West Galveston Island Property Owner’s Association web site.

Al Birdwell gave the financial report. The accounts receivable is $5,625 with net income of $5,379 year-to-date.

Upon motion duly made by Bill Aimone and seconded by Sharon Turnley, the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved the financial report as presented.

Jeff Sjostrom, President of the Galveston Economic Development Partnership (GEPD), was the guest speaker. The GEPD's mission is to utilize broad-based community support to expand and diversify Galveston's employment and tax bases. The GEPD is focusing on existing commercial businesses as well as bringing in new business. The GEPD will do assessments of the labor force, available property, infrastructures, incentives and permitting. Three projects were announced in 2000, which included the Convention Center, Port Unification, and Amendments to the City's tax cap. The GEPD is focusing on the offshore industry and to trying to stimulate housing, particularly for the middle income area. Five major projects for the GEDP include development of the old Galvez Mall; expanding the industrial and offshore drilling business on Pelican Island; establish the role of the partnerships in the Port Unification; develop the East End Flats; promote Seawall expansion to include main economic clusters; and, the West End expansion that takes into account ecotourism and ecoconservation projects. A question and answer session was held concerning affects of taxation, longer notification for the planning commission, more on-site housing for students.

Sidney McClendon gave an update on several bills that are on the Governor's desk for signature. John Arrington of Bermuda Beach was recognized for two bills; HB 2793 that will reduce the CEPRA match from 25% to 15%; and, HB 2794 relating to dredged materials to be used on the beach if the sand is beach quality. The Bill to revise the Property Code 204 to allow subdivisions to amend the restrictions did not pass. A pending Bill for the Governor’s signature is SB 1686, the Creation of the West Galveston Island Conservation District; SB 1773, the creation of the Port Bolivar Improvement District; and, HB 906, an act relating to continuation and financing of the Coastal Coordination Council. The Coastal Coordination Council (CCC) has held four hearings on the use and effectiveness of GEOTUBES as an erosion response project and the results will be available within the next few months.

The Galveston Beach Task Force summary stated each interested subdivision needs to have a project goal summary for funding under CEPRA II. A meeting will be held with the subdivisions, condominiums, and townhomes interested in participating in the project. Jimmy Tyree of the GLO gave an update on current Cepra I projects. Pointe San Luis sand will begin being hauled on Monday and the GLO met with the Corp of Engineers on issues at the Terramar Bay site regarding dredging activities.

Jim Steinbeck stated that the July 21st meeting of the WGIPOA will be held at the Jamaica Beach Public Service Building. The topic at this meeting will be emergency planning for storm and hurricane preparedness. The WGIPOA meeting will be from 9 to 10:15 and from 10:30 to 12:00 there will be an Emergency Planning Conference with booths represented by the National Weather Service, Department of Public Safety, the Galveston Health Department, UTMB, the Salvation Army or the American Red Cross, the City of Galveston and law enforcement from both land and marine.

Discussion was held about the flood relief program for Houston and the need for the West End to help since Houston is always there for us after major storms.

Upon motion duly made by Al Birdwell and seconded by Peggy Rapp, the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved to donate $500 for the Houston flood relief effort; $250 to the "Spirit of Texas Flood Relief Drive" in care of the Greater Houston Chapter of the American Red Cross; and, $250 to the "Tropical Storm Allison Flood Relief" in care of The Salvation Army.

Sidney McClendon discussed the Coastal Impact Assistance Program (CIAP) where Texas will receive approximately $26 million to mitigate the impacts associated with Outer Continental Shelf oil and gas production, which is part of the Conservation and Resource Act (CARA). Approximately $17 million will be apportioned to the State and $9 Million to Texas coastal counties of which $698,000 will be for Galveston County and $100,000 will go to the West End for projects to protect and restore coastal resources. There is debate by the Coastal Coordination Council whether the $17 Million should be placed in interest bearing account or allocated immediately for bay and coastal projects. Both Galveston County and the City submitted Project Goal Summaries for projects for these funds. There are $135 million worth of requests chasing the $17 million available in funds.

Discussion was held on how the Public Improvement District will help in getting sewer systems into subdivisions and discussion was held concerning HB 1686, the West Galveston Island Conservation District Bill. People expressed a concern about a new tax and the purpose. Any tax assessment proposal for the Conservation District cannot be enacted without approval of the Commissioner’s Court and a public referendum. The purpose of the Conservation District is as a source of funds for any coastal erosion response program such as match money for the Corps of Engineers Feasibility Study. Diana Puccetti recommended we have a flow chart to show how a Conservation District and a Public Improvement District works.

Council Member Dianna Puccetti stated that the City was waiting to select a consultant for the Dune Beach Access Plan. Before any Plan is finalized, there will be plenty of time for public hearings and comment. In addition, Ms Puccetti stated that the City signed a letter of support for a Hike and Bike Trail for 2.3 miles on Stewart Road from the East end of Laffites Cove to FM 3005 and over time the trail would be linked to Galveston.

With no further business to come before the Board, the meeting was adjourned at 11:30 a.m.