The Bermuda Beach Improvement Committee Annual Home Owners Association Meeting was held at 10:00am on Saturday October 15, 2011 at the Moody Gardens Hotel, Viewfinders Terrace Room, Seven Hope Boulevard Galveston, Texas 77554. Directors present were: Ron Coker, Kathy Love Cowen, Mary Jan Lantz, John Lightfoot and Tammy Kidd.

I. Meeting Call to Order - The Meeting was called to order at 10:10am.
 
II. It was established that a quorum of the home owners were in attendance. 

III. Introduction of the Board of Directors- Each of the Board members were 
introduced to the HOA and their duties were described. John Lightfoot, 
President Mary Jan Lantz, Secretary Ron Coker, Treasurer 
Tammy Kidd, Director Kathy Love Cowen, Director 

IV. Minutes- The Minutes from the October 23, 2010 Annual HOA Meeting were reviewed. 
MOTION- A motion was made by Tom Semple and Seconded by Susan Stepp to approve the 
Minutes from the October 23, 2010 Annual HOA Meeting. The motion passed. 

V. Introduction of Guest Speakers:

Officer Chad Meyers- from the City of Galveston Police Department explained the West End area had 17 burglaries over the past 12 month period. The police had arrested the perpetrator and the criminal activity had been reduced to sporadic incidents of opportunity. He encouraged all homeowners to question anything that seemed suspicious. He said, "When in doubt, call us out." He gave the HOA, the non-emergency dispatch phone number (409) 765-3702. One of the residents encouraged everyone to record the serial numbers of every item in their home. Another explained she had a $400 water bill and she encouraged the homeowners to secure access to their water systems.
Lt. Joel Caldwell- from the City of Galveston Police Department announced he would be taking over the westend command (61st Street to the San Luis Pass). He offered his cell number (409) 771-5520 and his email addresses to the HOA jcaldwell@cityofgalveston.org
& Caldwell3415@yahoo.com

Robert Webster- TAMUG Graduate Student, gave a power point presentation on beach erosion and the impact of the raking of the seaweed. He explained raking the wet beach sand loosens the top layer and has a negative effect on the profile of the beach speeding erosion. He explained that raking on the dry sand does not have the same effect however the majority of BB was wet sand. He said that during high cycles of the seaweed it would comes in wave after wave. If the HOA raked after one high tide it would just come back BBIC HOA Meeting 10/15/11 Page 2
with the next high tide. Also moving the seaweed to the dry dune area would not eliminate the smell. A long discussion followed among the HOA about the pros and cons of raking the beach. He offered his email address for any further questions or for a copy of his presentation captrwebster@aol.com

Kari Howard- Habitat and Stewardship Coordinator, Artist Boat, explained a grant opportunity covering 14 acres of beach to plant vegetation was available. A portion of this grant could be used in Bermuda Beach to restore the dunes and rebuild the habitat for endangered species of birds and turtles. The planting project is carried out as an educational program for students (4th - 12th grade). She asked the members of the HOA to contribute in any way they could.
When asked what was required from the HOA to be considered for the project she said since BB had already been approved. Since BB had the permit for the sand fences and a map of the beach the planting project could begin in the next few weeks. Her organization would welcome homes that could be utilized for restrooms or lunch area for the children, money to sponsor the rental of the buses, lunches for the children, and basically anything anyone would like to offer was welcome. Her contact information is (409) 770-0722 or khoward@artistboat.org
VI. Treasurer's Report- Ron Coker, Board Treasurer, reviewed the annual financial reports. When questioned about the attorney's fees Tammy explained the Board had hired a law firm to assist the Board in enforcing the deed restriction violations that still remained from the Hurricane Ike damages.

MOTION- A motion was made by Leonard Tatar and Seconded by Bill McFarland to approve the annual Financial Report. The motion passed.

VII. Grant Program Update- Mary Jan gave an update of the Coastal Erosion Protection Response Act (CEPRA) grant program. She explained that the Board had been in contact with the GLO about the status of their grant application and the Board had been told that due to the uncertainty about the amount of available funds for new erosion-related projects in the upcoming biennium as well as the outcome of the Supreme Court decision in the Severance case, the GLO has set aside all current grant applications and was not soliciting any more CEPRA Project Goal Summaries (as they have done in previous years).

Instead of the Project Goal Summaries those who were interested in CEPRA funds were required to communicate their local erosion-related issues, and potential project needs, by submitting a Letters of Intent. Mary Jan said she had submitted BBIC's Letter of Intent on June 23, 2011. She then reviewed the correspondence the Board had received from the GLO on October 12, 2011 (see Attachment 1- GLO Memo re: Cycle 7 CEPRA Funding Status 10/2011).

VIII. Sand Fence Project- John gave a report on the sand fence project the HOA had financed as an effort to began the dune restoration process. He explained even with the high tides most of the fencing still remained in place.
BBIC HOA Meeting 10/15/11 Page 3
Tammy told the HOA that John had taken off work from his job to oversee the sand fence project. This announcement received a round of applause from the HOA. John also gave a recap of the meeting the Board had with the City Officials in an effort to address the ongoing unresolved Hurricane Ike issues including roads and sewers.

IX. Tammy Kidd went over all the notices the Board had sent to homeowners that were in violation of deed restrictions. She explained the Board was working to bring the neighborhood back to pre-Ike conditions and to restore the value of the homes by improving the neighborhood. She went on to explain the Board had hired a law firm and would be proceeding with legal actions against homeowners that were refusing to comply with deed restrictions.

She let the HOA know these actions were all in response to the requests she continues to receive from the neighborhood. She then went over basic deed compliance requests: enclosing downstairs storage areas, mowing grass, no junk cars, keeping home in good repair- replacing loose shingles, etc.

X. Discussion Topics:

New Laws Impacting HOAs and Need for New Restrictions- John reviewed a handout he had brought for the HOA member regarding a few of the many new requirements of HOAs that were passed in the last State legislative session (see Attachment 2- POA Checklist). He said the membership would be required to make changes to their current HOA documents to be in compliance with the new laws. He then asked how many of those present would be willing to attend a special call meeting to get this done. A majority of those in attendance indicted they would be willing to attend a special call meeting to approve the new rules.

Roads and Traffic- Having been previously discussed during John's review of the Board's meeting with the City this topic was not revisited.

Gravity Sewers and Grinder Pumps- John reviewed the statement made by the City that no new homes south of 3005 would be allowed to be on City gravity sewer and therefore would be required to have grinder pumps. Many of the members discussed the issues they were having with their grinder pumps and the fact that they only had a three year life span.

Kathy offered the suggestion that before leaving home for an extended period to flush each toilet three times with clear water to clean out the pumps. The Board asked the HOA to please send letters, to document their specific problems with grinder pumps, so that these complaints could be relayed to the City. These letters should be emailed to Kathy at BBICBoard@aol.com

Light Pollution- Kathy asked each homeowner to be sensitive to the light pollution problem and to work with their neighbors to find solutions to limit the amount light omitted from their homes. BBIC HOA Meeting 10/15/11 Page 4

Seaweed- Having been previously discussed this topic during Robert Webster's presentation this topic was not revisited.

Marquette Property Update- John explained the GLO had purchased the Marquette property as an investment for the State School Land Board for $10 million (Marquette had paid $36 million). The articles in the local newspapers indicated the GLO was able to retain the zoning approved by the City for the master plan community and that Marquette would still be overseeing the project -by working with the GLO to sell the property to developers.

XI. Election of Directors: John asked if there were any nominations from the floor. No one responded. Having only the current Board members running for office John then asked for a vote by acclamation to re-elect the current members. The vote was unanimous.

Kathy asked that anyone wanting to serve as an advisory Board member should please do so to allow the current members to eventually rotate off. Marti Maulik offered to serve as an advisory member.

XII. Adjournment- Being no further business the meeting was adjourned at 12:15pm

Mary Jan Lantz, Recording SecretaryBBIC HOA Meeting 10/15/11 Page 5
Attachment 1

GLO Memo re: Cycle 7 CEPRA Funding Status 10/2011
o Coastal Funding - During the recent legislative session, the GLO received a $22.4 million Legislative appropriation for the entire coastal management program, including:
o All staff salaries and administrative expenses
o Beach monitoring and maintenance expenses for engineered beaches, as required by FEMA to be eligible for post-hurricane funding
o Current financial obligations for projects and studies
o Match for FEMA Funding (Project Worksheets)
o New erosion-related projects and studies.
o Timing and Availability of Funds - The most recent legislative statute changed the timing of the availability of the GLO Coastal funding, which impacts CEPRA

Cycle 7 funding. The GLO will now receive coastal funding only twice a year in December and June, so we cannot award all the funding to projects at the beginning of the biennium as we have in the past.
o Uncertainty - The GLO is facing significant uncertainty about how to allocate CEPRA funds to projects this biennium for several reasons:
o Severance Lawsuit - The Severance lawsuit, which addresses private property issues, creates uncertainty about whether the GLO can use state funds in certain areas of the coast that may be deemed private based on the lawsuit.
o FEMA Ike Funding - Obligated FEMA funds from Hurricane Ike need to be used for projects or they may lapse, although they also have Severance-related issues concerning where we can do projects and whether we should do alternate projects at other locations.
o Availability of FEMA Funds - The availability of some FEMA funds may now be uncertain due to a recent determination that FEMA funds will be redirected to areas recently impacted by Hurricane Irene.
o Beach Monitoring and Maintenance Expenses - The GLO cannot yet determine how much the beach monitoring and maintenance of engineered beaches required by FEMA will cost, in part because of Severance-related issues that currently prevent us from knowing where we can use state funds for maintenance and where we can't. Therefore, we don't know the amount of funding that will remain available for CEPRA projects after we perform beach monitoring and maintenance.
o Change in CEPRA Application Process - In light of the uncertainty caused by all of these issues, we decided to reduce the upfront work applicants needed to perform to apply for possible CEPRA funding.

We asked interested parties to submit Letters of Intent instead of the detailed Project Goal Summaries used in the past, which require a significant amount more detailed information and effort.

The Letters of Intent were asked to specify the proposed project(s), erosion issue, approximate project cost, and the local match available. We've indicated that we will request Project Goal Summaries for potential projects that may be considered if/when funding becomes available for erosion-related projects.
BBIC HOA Meeting 10/15/11 Page 6

Status of Letters of Intent - CEPRA Cycle 7 funds have not yet been allocated to projects.
Coastal Resources management and staff have performed a preliminary evaluation of the CEPRA projects and funding requested in the Letters of Intent based on the information we requested as well as on how they impact the performance measures we're required to track and report to the Legislative Budget Board.
The measures include the percent of shorelines maintained, protected, and restored, and the percent of federal dollars leveraged. Coastal Resources will meet with executive management soon to discuss when and how to proceed with CEPRA project and funding allocations in light of the current uncertainty.
POA CHECKLIST SUMMARIZED FROM 2011 TEXAS POA REFORM LAWS Roy D. Hailey BUTLER| HAILEY 8901 Gaylord Drive, Suite 100 Houston, Texas 77024 (713) 780-4135 E: rhailey@ButlerHailey.com " POA = Property Owners Association " C = Condos " SF = Single Family (all POAs that are not condos) Page 1 of 2 This list is completely arbitrary on behalf of the author and does not include complete references to all new laws. Careful review of the new laws is mandatory. All rights reserved. © 2011. Roy D. Hailey, Butler|Hailey, Houston, Texas (713) 780-4135, e- rhailey@butlerhailey.com. BEWARE!!! This handout is intended to highlight the major new POA specific laws (from the 82nd Texas Legislative Session) and their effective dates for attorneys representing and creating POAs, managers of POAs and directors of POAs. It is not comprehensive. Not ALL new laws that may impact POAs are included and for brevity, bracketed laws, most exceptions and details are omitted. Subject matter and descriptions are intentionally brief to provide a quick checklist of "to dos", "need to knows" and deadlines. It is not intended to replace the advice of competent legal counsel or to address a particular situation. Legal knowledge may be required for the proper use of this material. ? SUBJECT
TEX. PROP. CODE
(BILL NO.) PROP. TYPE
~ PROPERTY USE ~
Rain Barrel Rules - Review existing POA dedicatory instruments and POA's geographics (e.g. location of condo units, size of lots, setbacks, etc.) to determine need for rules. Absent any existing restrictions/rules, owners may have absolute right to install any number, anywhere.
§202.007(d) (HB 3391) SF & C
Solar Panel Rules - Review existing POA dedicatory instruments and POA's geographics (e.g. location of condo units, size of lots, setbacks, etc.) to determine need for rules.
§202.010 (HB 362) SF & C
Storm Shingles - Owners absolute right to install, so long as they "resemble" other authorized shingles in the subdivision and "match the aesthetics" of the surrounding property.
§202.011 (HB 362) SF & C
Flag Rules - Review existing POA dedicatory instruments and POA's geographics (e.g. location of condo units, size of lots, setbacks, etc.) to determine need for rules. Unless POA has rules that comply with the new law, POA may not be able to dictate any aspect of newly permitted flags.
§202.011 (HB 2779) SF & C
Religious Display Rules - Review existing POA dedicatory instruments and POA's geographics (e.g. location of condo units, size of lots, setbacks, etc.) to determine need for rules.
§202.018 (HB 1278) SF & C
~ ELECTIONS, MEETINGS & DIRECTORS ~
Open Board Meetings - REQUIRED, including notice to owners (except certain matters allowed for executive sessions and other forums).
§209.0051 (HB 2761) SF
Meeting Notice - 10 to 60 day notice of owner meetings REQUIRED.
§209.0056 (HB 2761) SF
Recount Procedures - Owners may demand election recount by statutorily allowed tabulators.
§209.0057 (HB 2761)
SF 1/1/12
No Secret Ballots - Ballots MUST be in writing and signed (electronic votes allowed).
§209.0058
(SB 472 and HB 2761) SF
Owner Voting Rights - CANNOT be suspended.
§209.0059(a) (SB 472 & HB 2761) SF
Director Qualifications - Most owner director qualifications VOID (except no felons or crimes of moral turpitude).
§209.00591 &
§209.00592 (SB 472 & HB 2761) SF
Developer Director Transition - Existing developer board composition (developer to owner) reviewed to ensure compliance. Review control turnover provisions in form project documents to ensure compliance for new projects.
§209.00591 (c) (HB 2761) SF