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, James DeFord – Spanish Grant Bay, Wanda Greer – Terramar, Steve Magee – Isla del Sol, Marti Bilek sitting in for Jeff Southard – Dunes of the West. Marty Baker was present as the Advisory Director.

In attendance was the newly elected District 6 City Council member, Dianna Puccetti; guest presenter Steve LeBlanc, City Manager of Galveston; Wendy O’Donohoe, Director of Planning; and, Brandon Wade, Director of Public Utilities. Vic Pierson, Mayor of Jamaica Beach, Juan Pena – City Council Member District 3, Navella Cole, Legislative Aid for Congressman Ron Paul, and Jimmy Delasantos, President of the Galveston Municipal Police Association, were also in attendance.

Candidates for Galveston County Sheriff, Eric Nevelow and Henry Poretto were introduced.

Corporate Sponsors Peggy Zahler with Johnson Space Center Credit Union; Bert Feinberg and Claire Reiswerg with Sand ‘N Sea; Vic Pierson with Moody National Bank; and, Perry Culp with Apollo Environmental.

MINUTES: Minutes of the April 21 meeting were sent by email 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 April 21, 2007 were approved as presented.

FINANCIAL REPORT Peggy Zahler gave the financial report. Total income $26,937, Business expenses $3,265, Grant & contract expense $500, Misc. expenses $3,095 with Total expenses of $6,860. Net Income was $20,077 and Total assets are $35,329.45. 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 was approved as presented.

Jamaica Beach Post Office: The US Postal Service plans to shut down the Jamaica Beach post office and several west enders would like to keep it open. Navella Cole, Legislative Aid for Congressman Ron Paul advised the group to let their feelings be known to the Congressman and to contact:

Navella Cole
Casework Specialist
Congressman Ron Paul
601 25^th Street, Suite 216
Galveston, TX 77550
Tel: 409-766-7013
Fax: 409-765-7036
Email: Navella.Cole@mail.house.gov

Presentation by Steve LeBlanc:

CITY OF GALVESTON – Past, Present, and Future

Steve began with a slide show to identify:

Past: "Real Bad"

Present: "Real Good"

Future: "Damn Good"

¨ Status of 2007 Budget – Mid Year

• General Fund

• Enterprise Funds (water, sewer, etc)

¨ Budget 2008

• Process begins June 1 with Department Head Retreat
• City Council retreat on June 29
• Issues
• $76 million budget with a 7% Expenditure Cap ($5.3 million) is available for:
• Police & Fire collective bargaining takes $2.5 million
• Water & Sewer Bond issuances take $1.5 million
• Miscellaneous – whatever is left goes for fuel, electricity

• Fire Department – the City finished a new 3 year collective bargaining agreement. Incentives increase for EMT training and paramedics.
• Police Department – not filling positions because demand has outstripped supply. Very competitive salary’s and difficult to attract new recruits.

¨ November Elections

• Bonds with County
• Broadway signalization intercepts – synchronize the traffic lights
• Extension of Avenue H to 61^st Street
• Rebuild the golf course bridge at 99^th Street
• Extension of 75^th Street at 7 Mile Road

• Charter Election
• Review of 7% tax cap. Charter Review Committee will make recommendations about lifting the tax cap. Steve would like 10% and the Mayor likes 12%. The City has been able to build cash reserves from a negative $2 million to $12 million with a target of $13 million. Steve would like the bonded indebtedness and the Rosenburg Library ($1.5 million) from under the tax cap

• If bonded indebtedness is removed from under the cap, the City’s rating would go from an A- to an A+. The City would be able to issue more debt for much needed projects.
• The Rosenburg Library obligation, approximately $1.5 million, is counted in the expenditures and he would like this treated as a separate item and removed from the 7% cap area.

• 4B Legislation – Sales Tax
• Extend the tax: When the sand nourishment project was undertaken in front of the Seawall from 6^th street to 61^st street, the City issued a bond and the people voted to pay 1/8 cent sales tax. The bonds expire the end of 2009. The City has proposed legislation in the current session to be allowed to extend the tax for a period of time and the funds would be used exclusively for beach related projects. It will require a public vote, possibly November, 2007.
• Amend purpose of the tax to what is outlined above.

¨ Seawall

• Improvements: The City had a $4.5 million grant to spend on the Seawall but it was cancelled when Homeland Security came into being.
• Funding Streams – looking at CMAQ funding and visiting Washington D.C. The City is on a contingency list to receive $1.5 million.
• Projects being considered are rehabilitation of White Sands elevated, possible elevated storage tank at old MUD-1, possible elevated storage somewhere between 7 Mile and 10 Mile Road, Additional pump capacity at Airport Pump Station and additional ground storage and, and

¨ City Wide Issues

• Broadway Beautification: The city has signed off on the drawings and the bid package will go out in December.
• East End Flat Development: Working with the GEDP to have a preliminary plan by June 29.
• Menard Park: The plans are to build a new recreation center and funding is being pursued.
• HOT Tax: the City is requesting the arts of Galveston to use funds specifically for preservation of old buildings. The funds have grown 57% and the City would like to take away from non historic areas and put more into beach nourishment programs.
• Port of Galveston: - Bio diesel facility. Ribbon cutting is May 29 and the City plans to buy this type of fuel from the facility.

¨ West End Topics

• MUD 1 Annexation
• Police & Fire Protection
• Refuse service – mandatory 1/1/2009.
• Water and Wastewater facilities
• Out of compliance and the City is bringing it to TCEQ requirements.
• Wastewater Master Plan: study to see how to expand the plant to have more capacity.
• Pirates WWTP discharge permit. Pending for a new discharge permit. Plan to use the water on the golf course but need to plan for high loads during peak summer season.
• Roads and Road Maintenance

• Enact a pavement management system program
• Develop a street lighting program

• Code Enforcement, Building Codes, and Planning/Zoning.

• Summer of 07 the City plans zoning changes
• Master Drainage Plan is being developed

¨ Development

• Comprehensive Plan Review starting August 1, 2007
• Heights Master Plan – contract to be awarded in June to a consultant to investigate and make recommendations for the entire island.
• Judge Kent’s Ruling – cumulative wetland impacts will be a standard review process. The City will continue to look at development on a case by case basis. The City is not changing its review process as a result of the ruling.

¨ Marquette Property

• 1,100 acre master planned community between 8 mile and 11 mile road from the beach to the bay.
• 3,961 single house equivalent units
• 514 acres dedicated to open space
• Density: 4 units per acre
• 2 – 16 story towers (hotel). View corridor and shadow studies have been done in how the towers would affect the view.
• Traffic impact: Could be a problem and need left hand and right hand turn lanes and will require it from the developer.
• Golf Course approximately 154 acres and part of the area dedicated to open space. The City likes the golf course because if the water treatment plant is expanded, they can use it for discharge of the gray water.

¨ Geohazard Study

• City’s "hold your ground" approach
• Protective Ridge issue – City will use the study as an informational tool. It is very difficult to find this ridge.
• Projects undertaken to counter the effects of erosion.
• Study focused on linear projection of trends.
• It did not account for future efforts to maintain dune lines and bay wetland areas
• The study is a great tool
• City ordinances prohibit excavations.
• Beach dune protection rules in place.
• $100Ks spent through the County’s Erosion Task Force on erosion projects
• Respect private property owner rights
• Council sets policy case by case

¨ Erosion

• Feasibility Study – Sabine Pass to San Luis Pass

• Delayed
• US Army Corps of Engineers

• Federal Funding Source

• Delayed

¨ Beach Access

• Beach Access Plan

• Diverse offerings
• Signage
• Amendment to include Pirates Beach area

• Texas General Land Office
• National Park Service

• ADA Access

¨ Public Works & Infrastructure

• FY 08 – Discussions start in summer ‘07
• West End (plan is to complete most of West End "in house")
• Water – Approximately $6 million
• Sewer – Approximately $29 million
• Drainage – Approximately $7 million
• City-wide available without rate increase

• City
• Water – Approximately $8 million
• Sewer – Approximately $8 million
• Drainage – Approximately $6 million

¨ Funding the Improvements

• Currently, the budget growth is capped by Charter

• Budget cap is set at 7% per year and includes debt payments
• FY 07 Budget is $76 million
• Growth limited to $5.3 million

• $2.5 million goes to Police and Fire Contracts
• $2.0 million goes to pay bonds for utilities. Bonds include Water at $8million; Sewer at $8million; and, Drainage at $6million
• Rate increase would not help

¨ Transportation

• FM 3005 – Texdot grade raising
• 61^st Street

• Texdot currently studying
• Results available Fall 07

• Stewart Road – requesting improvements possibly with a County bond issue.
• West Bay Crossing – need a bridge from the Mainland to somewhere on the West End

¨ Hurricane Preparedness & Emergency Management

• Season starts June 1
• City meeting May 30
• West End meeting at Jamaica Beach June 2
• Evacuation basis – regional zip code
• Pending Legislation

• Authorize City to issue notes and obligations to protect public health and safety in the event of a major storm.

END OF STEVE LEBLANC PRESENTATION

After the presentations, discussions centered on:

• Sales tax for beach nourishment – 1/8 cents
• Seawall Parking – need for fees for beach and shoreline restoration projects
• Marquette Development
• High rise is 9 stories or 150 feet high. The 16 story hotel will require a special use permit as will the golf course
• Local neighbors are concerned about the high rise hotel and impact on the community
• A recommendation was made to require an Environmental Impact Statement – complete assessment of all issues – traffic, environment, wetlands, etc

Air Boats on Lake Como: At the April 21 meeting, the Board wanted to investigate the airboats from a noise and nuisance level standpoint. There is an ordinance to help this situation and the City is investigating.

CEPRA: GLO set a target in securing $30 million for CEPRA projects and another $6-8 million to fund the Coastal Division (38-40 employees). The latest looks like $25 million but we are not certain if this is the total or just the CEPRA portion. Regardless, the amount is welcomed since the last legislative session had only $7.3 million for CEPRA projects.

Seaweed: Claire Reiswerg reported about the Parks Board Beach Advisory Committee program to harvest seaweed with very little impact to the beach. The Parks Board has developed a tractor with a special rake that takes most of the seaweed and very little sand. The Parks Board is making a test run of all west end subdivisions that have a beach raking permit.

Property Tax Appraisals: Jerry Mohn advised of appraisal services that are available in the event a homeowner disagrees with CAD’s recent appraisal.

Hurricane Preparedness and Recovery Meeting June 2: There was the reminder of the annual joint meeting of the WGIPOA and Jamaica Beach for this type of meeting at the beginning of hurricane season. The past two years had 150-200 people attend. It will be from 10:00 AM to noon at the Jamaica Beach Fire House, food and refreshments as well.

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