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, June 26, 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 Shannon Martin Supervisor Also present were: Jim Oliver District Manager Katie Buchanan District Counsel Peter Armans District Engineer by telephone Kayla Rinker RMS Rich Gray RMS Alison Mossing RMS Natalie Clem RMS Officer Michelle Wichman Bunnell Police Department Several Residents FIRST ORDER OF BUSINESS Roll Call Mr. St. Pierre called the meeting to order a few minutes after 6:00 p.m. and called the roll. SECOND ORDER OF BUSINESS Public Comments Resident comments: A good response from Rich Gray when notified of pond issues, capital reserve study, issues with trees, why is the board going out for an RFP for management services when we have a good team, all services are going out for bid to see what is out there, appears that GMS is being targeted for different reasons, bids are for amenity services and management services, community input on proposals, wait until election before RFP goes out. Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C June 26, 2024 Deer Run CDD 2 THIRD ORDER OF BUSINESS Engineer’s Report Mr. Armans stated we met this week with D.R. Horton and discussed some of the items we are expecting to resolve prior to the transfer of Phase 4. I believe there was some cleanup that D.R. Horton was going to take care of prior to this meeting. Mr. Gray stated it has been completed and the signs have been installed. Ms. Buchanan stated to summarize they started the work this week and they have some things to complete, but it is underway. Mr. Armans stated my recommendation is if the board wants to give us direction that once that is resolved and the other item is a document we want to include with the permit transfer that we are working with D.R. Horton on, which basically shows that the maintenance responsibility is going to the CDD and the city based on the parcels they own. Once those items are resolved we can move forward with the transfer. If the board would like to give us direction to move forward with that plan or if they want to wait until the next meeting. Ms. Poulin asked wasn’t there a question of ownership or maintenance of the stormwater system? Ms. Buchanan stated that is what Peter is alluding to. Essentially, we discussed it with Horton and are working to better understand how the water management district is going to apportion responsibility based on ownership. His suggestion is to authorize it pending that workout. Mr. St. Pierre asked what do you recommend right now? Ms. Buchanan stated I am comfortable with you doing it. You were established and contemplated in your original documents actually being the maintenance entity on that pond system. If you are in fact responsible for less that is a win. Mr. St. Pierre stated we have held our ground on Phase 4 to get everything fixed. There was a big to do list. We can make that pending on the final? Ms. Buchanan stated correct. Mr. Gray stated pretty much everything that was on my checklist I verified complete. The only other issue was signage and the signage was installed today along with the one at the U.S. 1 entrance that was requested at a previous meeting for the construction trucks. Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C June 26, 2024 Deer Run CDD 3 On MOTION by Mr. Poulin seconded by Mr. Garner with all in favor the recommendation of the engineer to move forward with turnover of Phase 4 was accepted subject to completion of the acquisition package and correction of the permit responsibility. Mr. Poulin asked is there anything going on with the parcel of land where the trees were cut down at one time? Ms. Buchanan asked Peter, so you have anything on the mitigation area, adjacent to the golf course area/ Mr. Armans stated I believe the last item we had was that the items that needed to be addressed I believe GMS was getting quotes for getting that area taken care of. I don’t think anything has been done since then. Mr. St. Pierre stated we have a resident who lives in it that has some grants moving forward to help with that. I will let her get together with Rich after the meeting and Rich can follow-up with you or Elizabeth can follow-up with you on that. I think that will move the process along, which will save some money, which we are all about. A resident stated there was mention at the last meeting about the City of Bunnell and stormwater drains. Does that have anything to do with Phase 4 or has there been any movement on that? Ms. Buchanan stated that is what we were talking about. At your establishment and your construction it was intended that the district would have been responsible for the stormwater management system. To the extent that we are able to shift responsibility to Bunnell, that is a win, understanding that is what he is working on sorting out, how to do that with the water management district in the most efficient way. Because it is not like we are going to go back and change a permit. Mr. Armans left the telephone conference at this time. FOURTH ORDER OF BUSINESS Consideration of Proposals for Capital Reserve Study Mr. Oliver stated you have a copy of the proposal from Community Advisors in your agenda packets. , You don’t need to make a decision tonight. The capital reserve study is it gives you a 30-year outlook of all of your capital items and provides recommended capital contribution amount to ensure sufficient cash flow to meet the future costs for repair and Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C June 26, 2024 Deer Run CDD 4 resplacemetn of the CDD’s capital assets for the next 30 years. I can bring back more proposals to the next meeting. FIFTH ORDER OF BUSINESS Consideration of Yellowstone Proposal for Phase 4 Mr. Gray stated this is the same as was presented at the last meeting. This proposal is to take care of the Phase 4 area that includes the mailbox area, around the ponds, conservation area, etc. On MOTION by Mr. Garner seconded by Ms. Martin with all in favor the proposal from Yellowstone for Phase 4 in the amount of $12,000 was approved. SIXTH ORDER OF BUSINESS Discussion of Fiscal Year 2025 Budget Mr. Oliver stated you approved the budget at your May meeting, we are required as a CDD to approve a budget by June 15th each year, you met that requirement. You are also required to set a public hearing to adopt the budget no sooner than 60 days after you approve the budget. You set that budget hearing to coincide with your August meeting. Rather than 60 days you have almost 90 days to refine that budget. The big headline for this budget is there is not an assessment increase. It is not a use it or lose it budget. If through good management of your resources you achieve a surplus at the end of the year, it carries forward into your next year. The board has the authority to move funds between line items. As you go through the RFP process, we don’t know what the proposed staffing fees will be, but you use any available carry forward surplus if there are contractual increases. Mr. St. Pierre stated I also believe if we need to adjust the amenity center staff there is money left to do that for the rest of the season. SEVENTH ORDER OF BUSINESS Consideration of Scope of Work for District Management and Amenity Management Services Ms. Buchanan stated in our workshop that started at 4 p.m. we did go through a very detailed scope of work in connection with what we desired for both amenity management that is inclusive of the amenity center and operations management as well as district management work, which is more in line with what Jim Oliver does. We will take that scope of work that was Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C June 26, 2024 Deer Run CDD 5 discussed and revised at that meeting and include it in a request for proposal package with the understanding that we would expect responses in advance of your August meeting. Mr. Poulin stated I thought we put it for the meeting after August so people can see the proposals and comment at the next board meeting. Mr. Oliver stated you have not set your FY25 schedule. I assume that would be in October unless you had a September meeting. Mr. Poulin stated we are just pushing a meeting. We can go through a lot of work on the proposal, accept the proposal. Ms. Buchanan stated you can authorize the RFP package as amended with the understanding that you are changing the due date from August 7th to the October meeting. On MOTION by Mr. Poulin seconded by Ms. Martin with four in favor and Mr. St. Pierre opposed the scope of work for district management and amenity management services was approved as amended changing the August 7th deadline to the October meeting. Ms. Buchanan stated you want the revised scope of work in the August agenda package, proposals back for October. EIGHTH ORDER OF BUSINESS Staff Reports A. Attorney Mc. Buchanan stated in connection with the pond in 3B as you will recall in 2023 we authorized Horton to revise their water management permit and perform construction to expand the pond. One of the conditions of that approval was the execution of a construction easement that would at least provide the district protections from liability from D.R. Horton should there be a problem onsite. I understand they have commenced work but I can’t find that the easement was actually executed. I will reach out to Bob Porter this week to get it executed. B. District Manger Mr. Oliver stated I want to remind all the board members to file your form 1 if you haven’t done so already. The deadline is July 1. Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C June 26, 2024 Deer Run CDD 6 C. Operations Manager 1. Report Mr. Gray stated D.R. Horton has completed the sign installation requested by the board for no trucks at the U.S. 1 entrance as well as the no parking signs from Phase 4 ponds as well as the cul-de-sac on Pinnacle. Tim from M&M Pumps could not give me an exact timeframe, he keeps saying it will be a couple weeks he is waiting on two more parts for assembly. Future Horizons will be completing the fountain repair tomorrow. Yellowstone will be removing the dead Magnolia on Highway 100. Would you like me to bring back proposals to replace it or just leave two Magnolias there? Mr. Dean stated I don’t see the need for a third one, it is behind the other two. Mr. St. Pierre asked what is the charge to remove it? Mr. Gray stated they aren’t going to charge us. I was asked about the timing of 5 and 6 for the electrical; FP&L couldn’t give me a timeframe because the account is still pending and not active. They advised that I can follow-up in 30 days to see if the status changed and typically the building wouldn’t start until after 60 days of the installation of all poles and in five and six there is no building at all. Mr. St. Pierre asked do we have any idea what is still owed on the old $65,000 bill? FP&L two years ago came at us with something not paid by the original contractor and we ended up eating a $65,000 bill over time. I would like to know how much is left. Mr. Gray stated the issues we were having at the golf course on hole 15 where the conservation got cut back and the employees used the area for dumping. I spoke with Ryan, and he will look into it and if it was happening it would not continue. Mr. Gray gave an overview of the balance of the items on the operations report and staff was directed to get additional proposals for the gym equipment. On MOTION by Mr. Dean seconded by Mr. Garner with all in favor staff was directed to purchase a gate for the pickleball courts in the mid-range. 2. Yellowstone Report A copy of the report from Yellowstone was included in the agenda package. Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C June 26, 2024 Deer Run CDD 7 D. Amenity Manager Ms. Rinker gave an overview of the amenity manager’s report, copy of which was included in the agenda package. NINTH ORDER OF BUSINESS Supervisor’s Requests Additional comments: Excited about 4th of July party, thanks to staff for working with me on contracts, possibly purchase the two vacant lots for community purposes, perhaps put basketball hoops in cul-de-sacs, no plans for children under 12, the three acre lot has an easement the two acre lot is owned by the Bunnell Mason Lodge and they have requested an easement to their property, cost of purchase would be approximately $150,000 plus whatever is developed, incident reports and trespassing, community needs to know about incidents and what was done about it, types of incidents, put incidents on website, have incident form on a QR code, it takes hours to look for an incident on the cameras, incident reports are done when someone is injured or a suspension is issued, in instances of someone feeling threatened call the sheriff, trespass happens daily, put a 6-foot fence around the pool to prevent trespass, $7,000 to $8.000 for staff in the evenings to finish the season. On MOTION by Mr. Dean seconded by Mr. Garner with all in favor additional staffing will be hired for the hours between 5 p.m. and 10 p.m. until Labor Day. Meeting minutes were distributed for the committee that meets on the third Wednesday, then listed new groups that will meet at the amenity center, calendar is filling up, streamline verbiage on calendar, collect data on people participating in activities, groups that have a certain amount of people should not meet at the amenity center but maybe in their homes, new residents felt they were unable to participate in activities, everybody wants to use the amenity center at prime time, change verbiage on pickleball, it is first come first served, TENTH ORDER OF BUSINESS Public Comments Additional comments: Residents leave gates open, people trespass when staff is not present, colored wrist bands, do not confront strangers who are trespassing call the police, if an activity is going on some people are rude when someone walks in and wants to join, the calendar Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C June 26, 2024 Deer Run CDD 8 is not full, move things to a different space, residents should form their own groups, people need to know when they can play pickleball keep it on the calendar, sign-up forms, movie night by pool, use of grill for everyone, upcoming election, appointment of vacant seat, status of construction on Phase 4 and 5, improvements to recreational lake, send to board members number of houses sold. ELEVENTH ORDER OF BUSINESS Approval of Consent Agenda A. Approval of the Minutes of the May 29, 2024 Meeting B. Balance Sheet as of May 31, 2024 and Statement of Revenues and Expenses for the Period Ending May 31, 2024 C. Assessment Receipt Schedule D. Approval of Check Register On MOTION by Mr. Dean seconded by Mr. Garner with all in favor the consent agenda items were approved. TWELFTH ORDER OF BUSINESS Next Scheduled Meeting – August 28, 2024 at 6:00 p.m. at the Island Club On MOTION by Mr. Garner seconded by Ms. Martin with all in favor the meeting adjourned at 7:50 p.m. Secretary/Assistant Secretary Chairman/Vice Chairman Docusign Envelope ID: CB9A1E9A-2F8F-49FA-9F8F-311E06F8E57C