As Valentine's Day draws near, it is fitting to put a spotlight on
two of WIA's sweethearts, Jacinto Investments and Palmer Management.

WIA directors got their perennial earful of complaints at January's
Board meeting about Waterwood's mail service provided by Palmer
Management. Despite Agee's insistence the mail delivery system
cannot be changed, some residents still complain. Every January,
when Waterwood mailbox recipients get a $30 bill for their annual
rental of one of Palmer's mailboxes, complaints are re-newed.

Unlike the vast majority of other planned communities which purchase
and then erect free mail receptacles for its residents, Waterwood's
mail receptacles have been purchased by a series of businessmen and
private businesses which then "rent" the boxes to residents. The
latest owner of the mailboxes is Palmer Management, which receives
approximately $6,000 each year in rental fees from residents. In
postal jargon, these mailboxes are a "premium" service similar
to "Mailboxes, Etc." and U.S. post offices simply because people can
access their box indoors, 24 hours daily, seven days per week.

The complaints aren't due to anyone disliking Phil Palmer or the
quality of the premium mail service. The complaints are that WIA
denies residents their right to get mail conveniently and at no
charge -- either free rural delivery to individually installed
mailboxes in front of their home, or free mail receptacles (cluster
boxes) at convenient locations provided by the homeowner ssociation.
Waterwood's mail service is neither free nor conveniently
located.

Regardless what it is -- a "sweetheart deal" or "Southern extortion" -
- directors are reluctant to change a tradition and they don't want
to hurt Phil Palmer's feelings by taking the mail delivery system out
of his hands. Although half the residents have no complaints, the
other half aren't amused by this sweetheart arrangement. They feel a
certain anguish when forking over $30 each year for the privilege of
driving two or three miles out of their way to get their "premium"
delivered mail -- mail which is delivered free of charge by a rural
carrier from the Huntsville Post Office.

Short-sighted directors believe $30 per year is cheap. But money
isn't the issue. The real issue is the denial of a service most
other planned community residents receive free of charge and at a
convenient place near their home. This, coupled with the fact that
Palmer Management has complete autonomy and can increase the rental
fee without justification doesn't sit too well either. John Agee may
have a good excuse for his incomprehensibility of the issues, but
certainly the businessmen and attorneys who serve on the Board should
be able to understand the potential abuse of the dominant market
position enjoyed by Palmer Management.

WIA's other sweetheart is Jacinto Investments/CEM Partnership
(JICEMP). This for-profit limited partnership intends to profit
someday by slowly logging 3,000 acres of commercial-grade timberland
in Waterwood's undeveloped subdivisions. The only problem they face
right now is 528 owners of undeveloped lots who refuse to sell their
lots to them for $300 each. Increasing their offer to $600 might
convince some of these stubborn lot owners to sell, but JICEMP like
Palmer Management enjoys a dominant marketing position. JICEMP
doesn't need to increase their offer.

To entice lot owners of large lots to give up their undeveloped lot,
JICEMP has upped the ante by buying more developed lots at Waterwood
to offer as trades. That's why JICEMP has been buying Country Club
Estates developed lots at county tax sales. But unlike other buyers
of Country Club Estates lots purchased at tax sales, JICEMP doesn't
get an annual WIA bill for $142 on each developed lot it buys.
Although the membership has been repeatedly told since 1995 that
JICEMP is not a developer, Joe Moore (our WIA administrative
employee) now claims that JICEMP is a developer, when asked why
JICEMP isn't being charged $142 assessments on each of those newly
purchased developed lots.

Clearly, Moore is stretching a technicality to exclude JICEMP from
assessments on those developed lots. Agreements and deed transfers
in 1995 with Horizon Corporation specifically state that annual
assessments are excluded in JICEMP's purchase of 67 specific
developed lots in Whispering Pines Unit Two (lots to be used at
trades with undeveloped lots). But WIA's Board of directors, under
Joe Moore's and John Agee's guidance, has graciously extended that
exclusion to Country Club Estates lots purchased by JICEMP at tax
sales after 1995.

Why are John Agee and Joe Moore graciously exempting JICEMP from
paying approximately $750 per year in assessments on its half-dozen
or so developed lots purchased since 1995? With a $142 assessment on
each lot, it doesn't take a CPA to figure out that a trade with a
$300 undeveloped lot should happen within two years, preferably as
quickly as possible, in order to avoid a capital loss. JICEMP,
however, could easily avoid a capital loss by trading quickly -
within six months. But, because Moore and Agee have graciously
exempted JICEMP's assessments (without Board approval), JICEMP has
exploited this generosity by stalling trades. Three or more
years can go by until a developed lot is eventually traded. In fact,
stalling trades for several years benefits JICEMP. By stonewalling,
frustrating and wearing down the patience of a lot owner, he or she
may finally agree to sell the undeveloped lot to JICEMP for $300.

If you believe WIA directors should look more closely at these
sweetheart deals, email the chairperson of the Real Estate Committee,
Director Mike Burney, at mburney@... or John Shideler, Maintenance
Committee Chairperson at johnshideler@...

Effective January 1 this year, Waterwood has no EMS crew conveniently
located at The Lodges near the Tree House. San Jacinto County refused
to re-new their contract with last year's private EMS provider, and
instead signed a new contract with Goldstar, the same private EMS
provider in Polk County, just over the lake. As a result, WIA's
contract with the county's former EMS provider also wasn't re-newed
and WIA Board directors began looking for a new EMS provider for
Waterwood. Supposedly, WIA will sign a contract with Texas Air
Corps, a brand-new EMS provider that is still working on its
certification from the State Health Department. More information
about this EMS crew will be passed along as it becomes available to
the community. Meanwhile, residents who dial 911 will receive EMS
from Goldstar, compliments of the county EMS fund (paid by a special
county tax which Waterwood property owners don't pay).

Two events are coming up in April. Put April 26 on your calendar for
the annual WIA Spring Picnic at Pools Creek Park. Also, for those of
you who have horses, put April 19 (11:00 AM) on your calendar if
you'd like to join the Houston Walking Horse Association. They'll be
trail riding in the undeveloped subdivisions. For information about
the trail ride, email terrier77340@...
-END-