MINUTES OF MEETING DEER RUN COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Deer Run Community Development District was held Wednesday, May 29, 2024 at 6:00 p.m. at the Island Club, 501 Grand Reserve Drive, Bunnell, Florida. Present and constituting a quorum were: David St. Pierre Chairman Andre Poulin Vice Chairman Greg Dean Supervisor Gary Garner Supervisor Also present were: Darrin Mossing District Manager Katie Buchanan District Counsel Peter Armans District Engineer by telephone Kayla Rinker RMS Rich Gray RMS Alison Mossing RMS FIRST ORDER OF BUSINESS Roll Call Mr. St. Pierre called the meeting to order and called the roll. The next item taken out of order. THIRD ORDER OF BUSINESS Engineer’s Report Mr. Armans stated on your agenda there is an email communication about the conveyance of Phase 4. Originally when the CDD was established the water management district permit said that the CDD is going to take over the stormwater system. That plan changed and the city ended up taking over the roadways in Phase 4. Even though the city accepted the roadways the stormwater pipes below it would be the responsibility of the CDD to maintain if we were to take over that permit. The city has already taken ownership of the stormwater system on DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 2 the permit itself with the water management district. That is currently not on the permit that DR Horton is transferring and we recommend that get noted in there before we take over the permit. Mr. St. Pierre asked can you get with Katie about getting that taken care of? I’m sure Katie will be contacting you about that. Mr. Armans stated Katie and I can coordinate the item; however, it is something that D.R. Horton will need to do. They are changing the permit that is in their name right now; we cannot do that on their behalf, but we can coordinate on what needs to be taken care of. SECOND ORDER OF BUSINESS Public Comments Ms. Lambert stated in reference to the proposals for district management; I can’t see how I can comment prior to the meeting since there is no information in the agenda package. The remediation planting in Areas 4 & 11, you requested proposal from Teracon and it was $10,000 but I assume that is for the purchase of the plants not installation. Item 9 the lighting agreement with FPL, is $190 extra a month in addition to our $7,000 monthly we will pay be for Phase 4 and 6, I suggest since we have several contracts with FPL that someone get together and standardize all those. The original phase is on an old lease/purchase under the original builder. There was also an outstanding debt that we are now paying from the original builder. Until that is cleared we are unable to update the old lighting to LED. While you are looking at 4 and 6, it might be a good time to consolidate all the overlapping contracts. Item 11 is a discussion about irrigation makeup and usage, the problem with irrigation is the City of Bunnell cannot provide enough reuse water for the entire development. Can we negotiate a different system for the remaining phases? Item 12 the proposals for gym equipment and fountain repair, I’m confused as to why we need replacement of the gym equipment. Fountain repair on U.S. 1, we already spent a lot of money on that. We may need to revisit the possibility of adding succulents that are drought tolerant and place them on the fountain and making it a huge rockery or something so we don’t have this issue every three years. Item 13, the actual budget, there is no change on the electric yet we are adding $2,000 a year with Phase 5 and Phase 6 lights. I don’t understand the 72% increase on pool chemicals, cable at 29%, water and sewer 122%. Why we have a budget line for facilities maintenance and amenity repairs and maintenance. To me that is the same thing. I suggest the capital reserve bank is split evenly throughout the lots, not by ERUs. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 3 Mr. Lambert stated the construction trucks going through the neighborhood with sewer pipes. Mr. Gray stated a sheriff has been on U.S. 1 redirecting traffic to use the 100. The problem they run into is these are people who come here once. When there is a traffic backup on highway 100 it is automatically reroute them to U.S. 1. When they get off they are following their GPS and don’t know to take 100 until they get to the entrance and are being turned around to go back. Mr. St. Pierre asked will you follow-up with D.R. Horton? Mr. Gray stated yes. Mr. Lambert stated the irrigation, are we not going to turn these off on a timer? People water between 10 a.m. and 6 p.m. Mr. Dean sated the short answer is no. Mr. Lambert stated item 7, how can people comment if they don’t know what that is. Mr. St. Pierre stated the agenda is on the website and that is where you can find those answers before the meeting. A resident stated the sprinklers on homes that are not sold in the Lakes are going off at 7 and 8 p.m. A resident stated the golf course is watered 48 hours after aeration. I don’t understand the D.R. Horton bill of sale. What does that mean to me? Ms. Buchanan stated this really relates to what you already discussed. Initially D.R. Horton came to us and requested that we take ownership of the Phase 4 improvements and we talked about that at multiple meetings. Subsequent to that request the engineer determined that it may not be appropriate for the district to acquire all the improvements. They are now working with the city to see if the city will accept not only the roads but the underlying pipes. It is just an update, there is no action to be taken by the board but they wanted to include it in the agenda because it is different than what we anticipated previously. Initially we were going to perhaps be stuck with the roads, most definitely stuck with the stormwater pipes and the engineer is trying to keep the board updated that these things are evolving and perhaps favorably for us. A resident stated then that is not something that is going to affect me financially. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 4 Ms. Buchanan stated not today. But if the district owns the stormwater pipe that is one more piece of infrastructure that we would have to maintain on a long term basis. There is a potential for a financial consequence down the road. A resident asked with all the building why are not roads being built? There are only two ways in and out. Mr. St. Pierre stated the planning for this whole development was planned with two exits. There is not a lot we can do except complain to the city. A resident stated this year everyone was forced to pay an extra $200, one-time only fee to repair the irrigation system. If’ I read this correctly, you have only spent $51,000 and you have $135,000 going into the general fund. What is the status of the irrigation? Why are we redirecting money away from what we agreed to pay? Mr. St. Pierre stated we are not done with the irrigation system. A lot more needs to be done from the $190,000 we got last year. A resident asked what is the scope of work for district management services? Mr. St. Pierre stated we put out some RFPs and the scope of work was questioned by a few of the companies. Someone on the board wanted to know about the scope of work, exactly pinpointing what we are looking for, for specific things and we will discuss that next. A resident asked are you saying there is no increase? Mr. St. Pierre stated the budget is pretty flat right now. A resident asked the budget we had for one year did that include the special assessment? Are we keeping it in there for the next budget? If that is the case there is an increase because the one-time is recurring. Mr. St. Pierre stated before we were a resident board, before our time, there was never money put away for reserves. We are trying to establish some reserves for capital improvements in case we need to do something. Mr. Dean stated this is preparing for future issues. A resident asked what are we doing with our reserve right now? Mr. St. Pierre stated when we have excess funds it goes into a money market account. Mr. Mossing stated the board authorized us to open an investment account with excess funds; it is in process. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 5 FOURTH ORDER OF BUSINESS Discussion of Scope of Work for District Management and Amenity Management Services Ms. Buchanan stated two meetings ago staff was directed to solicit proposals for district management and amenity management services. Those were distributed to five or six companies that provide these services in the Jacksonville/Orlando area. I did get a couple calls that said they didn’t have the capacity to take this on right now. What we are talking about is actually questions that I received that wanted a better understanding of the scope of work, specifically on your amenity and operations side. We looked at your existing contract you have a fulltime amenity manager who is onsite, and a parttime assistant amenity manager that by contract doesn’t have set hours but is basically as needed, determined by management and the board. Then you have a field ops budget that said $33,000 with no additional janitorial service under your amenity management agreement. What I think we need to do is confirm the hours you are looking for, for each of those categories. Generally, fulltime is 2,080 hours, I believe the facility attendant is 16 hours a week off season and that probably goes to 36 during season and field management I’m not sure how many hours you have committed but I think it is under 10. Mr. Gray stated contractually it is 8. Ms. Buchanan stated I want to make sure you have those numbers. I want to make sure that if you are not happy with the number of hours dedicated to the facility now, that you just don’t do a rinse and repeat and end up in the same position going forward. I also want to make sure that any interested bidder has the right information to craft a proposal. I will reiterate, this is an informal process. You could have someone say, tell me what you think works for us and they can provide that to you, but I find it is helpful to be consistent in the information you give out because it will help you get more consistent responses. Mr. Poulin asked the one that went out, who wrote that? Ms. Buchanan stated I prepared the form and Mr. Garner reviewed it. Mr. Poulin asked did anybody else on the board see it? Because I was taken off and in early May I got an email from one of the prospective vendors and sent me a copy of this 14 page document that I had no idea about. I had to read through and find the answers. For something this important to go out I was surprised the board wasn’t given copies of it or shared so we know what we are looking at. I couldn’t make heads or tails of the hours, the way this document was put together. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 6 Ms. Buchanan stated we did get proposals back but we didn’t include them in the agenda package because we didn’t want to advertise someone’s pricing without everybody having a good sense of what they are actually bidding on. Mr. Poulin stated the agenda that came out last week had pricing for one of the vendors. Ms. Buchanan stated it did, it was just a mishap on the holiday weekend scheduling. A resident stated in other words you are comparing apples to oranges. Mr. Poulin stated no, it is giving everybody your apples and everybody knows what oranges to bid on. Ms. Buchanan stated to be fair that happens every time in every informal solicitation. It is very common because it is a public record as soon as it comes to us. Whether we consider it now or next month, there will be other public records requests where they do the same thing and they will come prepared to discuss and compare their proposals to their competitors. Mr. Poulin stated I think you hit it on the head, it was informal. We didn’t do a good job putting it together and this is a big part of our budget. It involves some very good people from different companies and we let the barndoor open on this one and didn’t do a good job putting it together. Mr. Dean stated I’m going back to what I have been saying for a year and a half. Every agreement we have is non-specific in a lot of areas. I would like to see hours, rates, as well as responsibilities included and none of our agreements have specifics on roles and responsibilities. There are many generalities but not specifics. We need more specifics of what to expect from the people when they are here., what we are paying for and what are we getting for it. Mr. Poulin stated I agree we should look at all these things and bring the board together and with five people here we can come up with great ideas and come up with consensus. When we first talked about these proposals I think the engineering firm sent a letter they were going to stop working for us and we had to explain to them that wasn’t the case, we didn’t want them to just leave, we were working on proposals. This has gotten us to a slippery road that I think we need to bring in the group and look at all these proposals. There is a lot of data in 14 pages, I think it is very well put together, it is just a lot to digest. Ms. Buchanan asked how do you want to do your next step? The questions that I asked, the same as you asked essentially, how many hours do you want to dedicate to each position, what goal or task you want to assign to these positions. You want to hash that out tonight? Do DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 7 you want to have a special workshop to talk about it where that is the only thing that you talk about? It wouldn’t be a meeting; it would just be a working session. I don’t want to take up your time unnecessarily, what is your goal? Mr. Poulin asked how many of these proposals or RFPs are we looking at? Ms. Buchanan stated I suspect you are going to get three maybe four. Mr. Poulin stated not vendors, total RFPs for all the different things we do in the community. Ms. Buchanan stated district management, amenity management, landscaping, district counsel services, engineering services, those are your main contracts. I don’t know who does your pool maintenance. Mr. St. Pierre stated the first step is management services. I don’t think we stop at management services, I think we go through the whole thing because there are some contracts that haven’t been touched in years and it is time for us to step up to the plate and get this under control a little better and what we expect is part of the process we are going through. If we have a workshop is it open to the public? Ms. Buchanan stated it has to be open to the public, but you don’t have to take public comment because you are not making as single decision. Mr. St. Pierre asked do we have to advertise it? Ms. Buchanan stated yes. You can decide the level of formality you want to approach it with. You have to have a notice, you have to take minutes. Mr. St. Pierre asked can we incorporate it into next month’s CDD meeting? Ms. Buchanan stated you can do it earlier, but I would probably try to separate it a little bit because you get involved in the business of running the CDD. Mr. St. Pierre asked how about 3:00 p.m. the date of our next CDD meeting? Mr. Poulin stated I work. Can we pick an evening between now and then? When is our next CDD meeting, July? Mr. St. Pierre responded June 26th. Ms. Buchanan stated the other thing to think about is when you want this to start, it is going to be a challenge to change anything in the budget in mid-summer. That goes for your amenity management and district management contracts. I will also say that you are using old DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 8 numbers for your budget. It is not entirely common to get lower bids when you go out to bid. I wouldn’t count on it. A resident asked would you consider a Zoom meeting? Mr. St. Pierre stated I have in my notes for tonight is to recommend we use Flagler Municipal building. A resident stated I didn’t know that but if people can’t make it or don’t want to leave their house they can use Zoom. Mr. St. Pierre stated we used to have conference calls. Our next meeting is June 26th. Is 4:00 p.m. okay with everybody? Ms. Buchanan stated I think you can do it in two hours but you have to do some homework before. You are looking to me, but I will let Darrin weigh in too in case he has something he wants to say Mr. St. Pierre asked are you okay for 4:00 p.m. on the 26th for a workshop? Mr. Mossing stated yes. A resident asked would it make sense to let the current company know what we expect or what we would like to see in their management? Mr. Poulin stated that is the whole idea. A resident stated I don’t know if we have anything we expect them to do that we want done or have told them this is what we want done in our management. Mr. St. Pierre stated I think it is pretty well understood the scope of work, there were just some questions when the RFPs went out. That is what we are addressing. We are going to get better information together if there is anything left on turn, but I don’t think it is time to change everything we are doing. A resident asked is there something wrong with the current management company that we are working with? Are they too much money or are they not doing a good job? Mr. St. Pierre stated no, members of our board wanted to go out and look what’s out there. A resident stated sometimes the devil you know is better than the devil you don’t. Mr. St. Pierre stated we have already sent out the RFPs, we are doing due diligence on it and we appreciate your opinion. A resident stated I think they are doing a good job. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 9 FIFTH ORDER OF BUSINESS Discussion Regarding Towing This item removed from agenda. SIXTH ORDER OF BUSINESS Consideration of Conveyance of Phase 4 Improvements This item discussed earlier in the meeting. SEVENTH ORDER OF BUSINESS Update Regarding DR Horton Bill of Sale to City of Bunnell for Phase 4 Improvements This item discussed earlier in the meeting. EIGHTH ORDER OF BUSINESS Consideration of Remediation Planting in Areas 4 & 11 Mr. Gray stated these are the proposals I brought before. I have been working with the water management district and they are very adamant about completing this. They have given me a secondary option of splitting it up but she wants the first section done first. That is the biggest section located in Phase 2 next to that lift station. She would like to see everything done if possible by the end of the year, but is willing to work with us in doing stages but not for too long. Mr. St. Pierre asked have you approached Joe Walters of D.R. Horton and asked them to bear some of the cost before we get stuck with the $40,000? Mr. Gray stated I have written to him but haven’t’ gotten a reply on the planting. Mr. St. Pierre stated after you do that will you let Katie know the response because I would like to proceed with litigation against them. Ms. Lambert stated I was on the board when this transpired and I approached D.R. Horton about helping us with it since they cleared the land and they said we didn’t clear the land and it was like that when they arrived. Mr. St. Pierre stated Rich, follow-up with Joe Walters and if you don’t get a response get it to Katie and maybe she can kick a few feathers and we can move along. Mr. Lambert stated google maps shows that area was cleared in 2008 and that was before Horton, so we can’t go after Horton. Mr. St. Pierre stated we can try; right now it is just an email and letter from Katie. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 10 Mr. Lambert stated why waste the time and money if this was done before Horton? Ms. Buchanan stated I think we will probably try to confirm our timeline before we send a letter. NINTH ORDER OF BUSINESS Consideration of LED Lighting Agreement with FPL Mr. Gray stated this is 5 and 6 that was brought into the previous meeting. There was a discussion of $189.88, we couldn’t get clarity on that. It is what I stated before, I concur, the $189.88 is the standard account charge. They couldn’t give an estimate on base charges as it is dependent on active use of the poles. The $189.88 then the cost of the usage. On MOTION by Mr. Poulin seconded by Mr. Dean with all in favor the lighting agreement with FPL was approved. TENTH ORDER OF BUSINESS Update Regarding Construction Truck Route for Phase 5 Mr. Gray stated as discussed earlier I will follow-up with D.R. Horton for a more clear understanding to use 100 and see if they will put up a new sign on U.S. 1. ELEVENTH ORDER OF BUSINESS Discussion of Long-Range Plan to Remedy Irrigation Makeup and Usage Issues Mr. Dean stated for the last two years we have had problems with the motors failing, they have been replaced, we upgraded the pumps, we are updating the control system and that is what the assessment was for last year. That being said, that end of it will be state of the art, the rest of it, basically the pumps take suction from the ponds on the driving range, which the City of Bunnell makes up with their effluent from the water treatment plant and rain and whatever runoff there is. Twice since Labor Day last year our pumps have not operated because the pond level was too low. The reason is between the golf course and us, we use more than the City of Bunnell can supply. When there is not a lot of rain, we didn’t have enough water to run the system. A lot of people do not follow the guidance on their use of the irrigation system. We don’t have a lot of recourse to people who do not follow our guidance. We can’t shut down the system. There is a well that we have a permit to draw from, and that would last about five days and is not a good option. We can go back to St. Johns River Water Management District to request more but I don’t know if that is feasible. A question to Katie is do we have a legal recourse to not tie DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 11 in the new homes until we have a system that can handle it. We have a report from the engineer that says our system is inadequate to supply the full community. That is our situation and we need to find a solution. Ms. Buchanan asked does it have to be reuse? Could we go to the city and ask them to use potable water because they can’t supply sufficient amounts of reuse water? Mr. Dean stated other communities have individual wells for irrigation. If we dig a community well we would have to go to St. Johns for a permit. This is to get the ball rolling to have the discussion because it has been an issue twice and most likely will happen again. Mr. Poulin stated a few things we have been talking about is we need enforcement power. If we have people running the irrigation during the day we need enforcement. We also talked about individual meters or have the city put in potable water. TWLEFTH ORDER OF BUSINESS Consideration of Proposals A. Gym Equipment Replacement Mr. Gray outlined proposals for leasing the gym equipment to replace the old gym equipment. B. Fountain Repair (UC-1) Mr. Gray outlined the proposals and after discussion the board took the following action. On MOTION by Mr. Poulin seconded by Mr. Dean with all in favor the proposal from Future Horizons in the amount of $5,817.75 was approved. Items 14, 15, 16 and 17 taken out of order. FOURTEENTH ORDER OF BUSINESS Staff Reports A. Attorney There being none, the next item followed. B. Engineer DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 12 This item taken earlier in the meeting. C. District Manager – Report on the Number of Registered Voters, 884 Mr. Mossing stated a copy of the letter from the supervisor of elections indicating that there are 884 registered voters residing within the district was included in the agenda package. This lady is very supportive of our services and I appreciate that. The district went through the RFP process and GMS was the only one to respond within the due date and time. Needless to say, I am very upset of the lengths that are being taken to try to remove my company. D. Operations Manager 1. Report Mr. Gray stated I sent over the open action items list for your review. I have a proposal for the timers on the grills it is two one-hour timers for a total cost of $802.43. I believe it would be very beneficial and will prevent someone leaving the grills on after their use. On MOTION by Mr. Dean seconded by Mr. St. Pierre with all in favor staff was authorized to have the timers installed on the grills in the amount of $802.43. 2. Yellowstone Report Mr. Gray stated they were going to start the palm pruning going into June and July. I told them to hold off, the seed pods are pushing out and I want to wait so we don’t have a secondary pruning. E. Amenity Manager Ms. Rinker stated we had an incident where a rental was canceled the day before and since we are having these rentals staffed the social committee asked that we add a 72-hour advance notice for cancelations of rentals and if a cancelation happens after that time, we would keep the $200 deposit. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 13 On MOTION by Mr. Poulin seconded by Mr. Garner with all in favor staff was authorized to put in place a 72-hour cancelation provision and if rentals are canceled after that time, they forfeit the deposit. FIFTEENTH ORDER OF BUSINESS Supervisor’s Requests Additional comments: Mr. Garner thanked Katie for working on the proposals, will work on proposals for landscaping, delay in opening state board account, get synopsis of meeting minutes posted in a week opposed to a month so people have an idea of what happened, both ice machines have been replaced, timing of getting repairs done, email reports to the board of weekly inspections. SIXTEENTH ORDER OF BUSINESS Public Comments Additional comments: will there be another special assessment of $225 this year, only as needed, cleanliness of amenity center, sidewalks, entryway, pool, maintenance was taken out of the contract, room is not cleaned after rentals, mold on chairs, look into maintenance hours, solar panels for pool equipment, skill set for golfers. SEVENTEENTH ORDER OF BUSINESS Approval of Consent Agenda A. Approval of the Minutes of the March 27, 2024 Meeting On MOTION by Mr. Garner seconded by Mr. Dean with all in favor the minutes were approved. B. Balance Sheet as of April 30, 2024 and Statement of Revenues and Expenses for the Period Ending April 30, 2024 C. Assessment Receipt Schedule D. Approval of Check Register On MOTION by Mr. Poulin seconded by Mr. Garner with all in favor the balance of the consent agenda items was approved. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 14 THIRTEENTH ORDER OF BUSINESS Consideration of Resolution 2024-07 Approving the Proposed Budget for Fiscal Year 2025 and Setting a Public Hearing Date to Adopt of August 28, 2024 Mr. St. Pierre asked what can we do to charge the golf course more for their assessment? Ms. Buchanan stated if we want to charge the golf course more we need to identify why they deserve a higher assessment, have the justification for it, give them notice of our intent to increase it and a hearing that they can come and challenge that and then make your decision. I will say you need a professional to give you that justification because you have a status quo, to change it you need to have a real solid reason why. You have an engineer look into it, identify flow rates, try to identify why the golf course should pay more. What you may find is that there is an argument that because the golf course is grass as compared to concrete it serves as a benefit to the entire system because it is not funneling water, it is absorbing water. Mr. St. Pierre asked what do we have to do to make the commercial property assessment go up? Ms. Buchanan stated the same process. Why do they require more service from the district? If we have a reason they require more and what that could be is that if they are commercial and have higher traffic, if they have customers that use more water/sewer, they require more stormwater drainage, those are all tangible things that a more intense use might necessitate a higher assessment, but I don’t think you have any actual use now. Mr. St. Pierre stated they are in the same position as the vacant lots but D.R. Horton pays for those. Why are they not being charged? Mr. Mossing stated they are being charged in accordance with the debt service methodology. It is based upon square footage. A total of 15,000 square feet if 2,000 square feet equals a home so there is 7.5 units. Mr. Garner asked would we be wasting our time going after these increases? Ms. Buchanan stated it is going to cost money to do it, so it will take a little time to recoup it and you may not be successful. I struggle with the golf course and I know we say that because just did this in Amelia Island, which is in Nassau County and they have language in their report which you do not have that their engineer made a really strong finding that the golf course was helpful. We don’t have that language but you have to have an engineer saying they use it more and they need to pay for it more and I think you are going to have a hard time finding an DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 15 engineer to do that. One, because everybody is busy and nobody is going to want to do a small project like that and two, I don’t know whether they can say that in conscience. Mr. Garner stated we already have a cost share agreement in place with the golf course for the stormwater. Ms. Buchanan stated yes to pay a proportionate share. Mr. St. Pierre went line item by line item of the proposed budget. Ms. Buchanan stated if you are intent to go out to bid for services, you haven’t put any cushion in your budget for those potential changes. Mr. Garner asked at the budget workshop do we have any intentions to start planning and working on this lot here to develop it to help relieve some of this building over there or go after those two blocks down the street, for parking or picnic area that relieves some of the traffic here. We have property right next to us. Mr. Dean stated we had a discussion that there are two lots that are landlocked that are owned by different people. They have requested an easement on the lot on Sand Wedge to get to one lot, the other lot has asked for an easement, which will take away any potential use of that vacant lot. In the long range we need to start thinking of that to prevent overloading this facility. Mr. Poulin asked are you thinking of adding more money to the budget? Mr. Garner stated yes, for future development of amenities. Mr. Poulin stated we need to put a plan together and take it to the community as to what all this would be. I think we should accept what we have here tonight. We need to start with a capital improvement plan and that will help filter into what you are mentioning. Mr. Mossing stated I have that proposal and will add it to the next agenda. It will look at the assets you own and the useful life of them and the funding. Mr. Dean stated we need to add a line to do a study of what it would take to purchase the two landlocked lots that we can develop if the need arises. Ms. Buchanan stated let’s talk about what happens if you go over your last year’s budgetary cap. We will send notices, letters, a mailing to everybody within the community and they will be apprised that the budget is going to increase and they can come to your budget hearing and provide comment. There is an expense associated with the mailing associated with it. If you are going to add money, you may as well add all of your moneys. I would be reluctant to do it for $4,000. Add your budget list on some level. DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70 May 29, 2024 Deer Run CDD 16 Mr. Poulin asked what is the cap so we don’t have to send the letters? Ms. Buchanan stated last year’s budget. Mr. Poulin stated it is a great idea but at this point we should just carry the budget we have, do research for next year and we have 12 months to get that done. On MOTION by Mr. Poulin seconded by Mr. Dean with all in favor Resolution 2024-07 approving the fiscal year 2025 budget and setting the public hearing for August 28, 2024 for final adoption was approved. EIGHTEENTH ORDER OF BUSINESS Next Scheduled Meeting – June 26, 2024 at 6:00 p.m. at the Island Club Mr. St. Pierre stated our next meeting is June 26th at 6:00 p.m. We are meeting at 4:00 p.m. that day to work on RFPs. On MOTION by Mr. Dean seconded by Mr. Poulin with all in favor the meeting adjourned at 8:39 p.m. Secretary/Assistant Secretary Chairman/Vice Chairman DocuSign Envelope ID: 39BA489D-19FF-465E-9A0F-54092D609E70