WEST GALVESTON ISLAND PROPERTY OWNER'S ASSOCIATION

MINUTES OF THE BOARD OF DIRECTORS MEETING

October 15, 2005

Jerry Mohn, President, called the Board of Directors meeting of the West Galveston Island POA to order at 9:05 a.m. The meeting was held at the Galveston Country Club on October 15, 2005. A quorum was established by attendance of Directors, Peggy Zahler – Spanish Grant, Rick Heiberg – Pointe San Luis, Bill Moll – Spanish Grant Bay, Sidney McClendon – Pirates Beach, and Tom Booth - Condominiums. Marty Baker, Advisory Director, was present. Susan Gonzales with CKM Property Management - Recording Secretary was also present.

Jerry Mohn recognized Eddie Janek – Galveston County Commissioner Pct 2; Chairwoman Dianna Puccetti, Executive Director Lou Muller, and Trustee Bill Hyneck from the Galveston Parks Board of Trustees; and, Al Choate, Navigation District Commissioner. Corporate sponsors included Claire Reiswerg & Bert Fineman – Sand N See and Peggy Zahler – JCS Federal Credit Union.

Also recognized were candidates running for County Commissioner Pct 2 were: Eddie Janek Jr., Brian Lamb, Al Choate and Robert Cheek. Mary Jo Urbani was running for Galveston County District 6F GISD School Board of Trustees; and, Greg Roof running for District 14 United States Congressman.

Jerry Mohn expressed appreciation for all of the City of Galveston and Galveston County officials for their support during the evacuation due to hurricane Rita.

The minutes were reviewed. Upon motion duly made by Peggy Zahler and seconded by Sidney McClendon, the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved the September 17, 2005 minutes as presented.

Jerry Mohn gave the financial report. Cash on hand is $27,249 and total assets $28,749. Upon motion duly made by Tom Booth and seconded by Rick Heiberg, the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved the Treasurer Report.

Program: Parks Board of Trustees "Taking Care of West End Beaches". Presentation by Dianna Puccetti – Chairperson and Lou Muller – Executive Director. Dianna Puccetti stated that the Texas Legislature in the 1990’s created the Parks Board, whose primary mission was to promote tourism and to protect the beaches of Galveston Island. She said the beaches are Galveston’s number one asset. The Parks Board funds come primarily from the Hotel/Motel tax. Dianna stated that the Parks Board was created by the State of Texas Statute to protect and maintain beaches and to promote tourism for the beaches placed under their management. The annual budget for the Parks Board on all activities is $12 million for fiscal year 2005/06. The financial condition of the Parks Board was in very poor condition and they are working on rebuilding the Parks Board financial budget in order to operate in the black.

The Parks Board is working closely with the WGIPOA and property owners on the west end to come up with a beach-cleaning schedule and will be meeting in the near future. As far as the County Parks, the Parks Board only manages Delanera Park, Pocket Parks 1, 2 & 3. They have a contract with the County and City to pick up trash on the beaches and Dianna emphasized the Parks Board does not have control of the beaches.

Not all of the Hotel Motel tax goes to beach cleaning, only a small portion.

Lou Muller stated that he along with the Parks Board met with Jerry Mohn, President of the West Galveston Island POA to discuss seaweed and beach cleaning. The Parks Board budget for fiscal year 2005/06 is $1.9 million for beach cleaning, which half comes from the Hotel Motel tax. Only $99,000 goes to beach cleaning for the west end. Included in the budget is $300,000 Grant from the General Land Office (GLO). Last year’s budget was $1.8 million and the $100,000 increase in the budget is due to a projected increase in revenue from hotel/motel taxes.

Hotel Occupancy taxes has strings attached and the Parks Board is told by the State Statute exactly how the money can be spent, same for the park user fees. The City receives approximately $6.7 million from hotel/motel taxes or 9% of the total 15% taxes collected. The west end contribution from hotel/motel taxes is approximately 11% or $734,000. Of the 9%, 2.125% goes to pay off the Convention Center bonds debt service; 1.2666% is beach cleaning; 1.1667% is for beach patrol; 0.875% is for Arts Funding; 3.0% is for Tourism development; and 0.5667% is to nourish the beaches. In addition, the City receives a special payment of 2% through the Brimer Bill to pay off a portion of the Convention Center bonds.

Dianna Puccetti stated that the revenue from the Hotel Motel tax is paid on rentals and only if the renters stay is less than 30 days.

Lou Muller stated there are two types of trash pick up – one to pick up the trash in the trash barrels and one that actually hand picks trash on the beach. Trash pick up starts at 7 Mile Road and goes to the Pointe San Luis Pass. It takes approximately a week for the Parks Board crew on foot to pick up the trash on the 20 mile strip on the west end and when they reach Pointe San Luis, they start over.

The Parks Board is requesting that the City of Galveston provide an extra truck, driver and two helpers during the holiday weekends. The City Manager agrees to have a dump transfer stations open for use during these holiday pick-ups. The City also will pick up trash from residents properties South of FM 3005 during the major holiday weekends, Memorial Day, July 4, and Labor Day.

A question was asked as to whether the Parks Board has considered using other organization participation as a source for funds. Dianna Puccetti stated that it was a good idea and would bring it back to the Board.

A question was asked concerning a resent layoff of workers and its effect on the beach trash pick up and cleaning. Lou Muller stated that at the height of the season, the Parks Board had to purchase additional equipment and due to the expenditure the Parks Board had to layoff some seasonal workers. The Parks Board will be making some adjustments for the future. A normal crew is five (5) men and a supervisor during the off-season.

Due to Hurricane Rita the Parks Board will be reimbursed 100% for their preparation before the storm and all the clean up after the storm. The Parks Boards was responsible for cleaning up large trees and amounts of debris. Also the loss of Hotel Motel tax during the storm will be requested for reimbursement from FEMA. The crews were working 10-12 hour days.

A question was asked concerning the missing blue trash barrels; Dianna Puccetti stated that new trash barrels were being purchased at a higher cost. Lou Muller stated that the barrels would be reinstalled.

Discussion was held concerning beach raking. Lou Muller stated that a permit was requested for beach raking. Cost of beach cleaning would include the cost of $70,000 - $75,000 for hiring an additional crew. The Parks Board does not clean beaches but does pick up the trash.

The Parks Board will be increasing the beach user fees from $7 to $8 and the $1 will be put into a separate account to use for beach nourishment.

RITA DAMAGE/FEMA UPDATE

FEMA is reimbursing 75% for damage. Walkovers are covered if City of Galveston sponsored the initial project. We are not certain yet if the sand lost from the CEPRA II project will be covered. Sand for walkovers and undermined homes is difficult to find since the excavation ordinance prohibits sand for beach nourishment without a special use permit. Sidney McClendon stated that we need to go back to the City Council and have them amend the City Ordinance until the Federal Government can provide help. WGIPOA will make the request.

SANDS OF KAHALA

The Sands of Kahala Association are objecting to a development on the east side. They object to the plat for the development. Front row lots are a lot smaller than normal lots, the side to side setbacks are 5’. There is no green space allowed between the two subdivisions. Motion by Sidney McClendon, seconded by Tom Booth, the Board adopted the following resolution by unanimous vote.

RESOLVED THAT, the WGIPOA will speak against the plan at the October 18 Planning Commission meeting for the new development abutting Sands of Kahala.

GARM

Claire Reiswerg stated that flyers would be given to all rentals concerning keeping motorcycle noise down. Claire introduced Officer Gordon Morris head of Security for GARM. Officer Morris has a responsibility to rental agencies that are members of GARM. If a neighbor witnesses a large number of vehicles, loud or late party or any issue of nuisance on a rental property, the neighbor should call 409-682-3603. It the issue is a nature of an emergency or breaking the law call 911.

CITY OF GALVESTON

Marty Baker attended the City of Galveston City Council meeting to express appreciate in how the City responded to Hurricane Rita. Marty stated that the Fire Department, Police Department, Emergency Management team reacted to the Hurricane Rita in a superb manner. WGIPOA and its members applaud their response to this emergency.

The WGIPOA would like to express their appreciation in the City and County efforts. The President will send a thank you to be printed in the Daily News.

RESOLVED THAT, the Board of WGIPOA gives appreciation to the City and County officials for their efforts before, during and after.

AMERICAN SHORE & BEACH PRESERVATION ASSOCIATION (ASBPA)

The WGIPOA was given recognition at the conference. It was observed that those beaches, which had been nourished with additional sand, faired better then those who had not nourished the beach. Jerry Mohn will be on the committee to explore the promotion of nourishment of beaches.

Sidney McClendon stated appreciation to Jerry Mohn for his many hours towards the preservation of the Island and especially the West End.

ENERGY BILL

Beginning 10/1/06 and the following four fiscal years, Texas will receive $60 million per year from off shore oil and gas revenues. 35% of the funds will go to the coastal counties and 65% will go to the State. The WGIPOA would like to request the Governor to appoint the GLO as the agency to administer and monitor the 65% portion of funds. Motion by Sidney McClendon, seconded by Peggy Zahler, the Board adopted the following resolution by unanimous vote.

RESOLVED THAT, the Board of WGIPOA will compose a letter to the Governor of Texas to have the GLO as the agent for the 65% funds from offshore oil and gas revenues.

SEAWEED STUDY UPDATE

Tom Linton stated that the GLO issued a contract for $35,000, the money to be used to study the seaweed as a vegetation component. Money coming from the GLO, local sources to do the study. The protocol will tell you what will be found in Core samples from different areas. GPS system will determine elevation history. Investigate from east end to the west end to see what changes occur from having seaweed on the island. The study will beginning in November and last approximately 12 – 18 months.

Motion by Tom Booth, second by Rick Heiberg, the Board adopted the following resolution by unanimous vote.

There being no further business to come before the Board and Members the meeting was adjourned at 11:00 a.m.