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, August 28, 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 Rich Gray Operations Manager Alison Mossing Riverside Management Services Natalie Clem Amenity Manager Antonio Perez Yellowstone Landscape Michelle Wichman Bunnell Police Department Several Residents FIRST ORDER OF BUSINESS Roll Call Mr. St. Pierre called the meeting to order at 6:00 p.m. and called the roll. SECOND ORDER OF BUSINESS Public Comments There being none, the next item followed. THIRD ORDER OF BUSINESS Engineer’s Report Mr. Armans stated we are working with staff and the board members to coordinate the development and address any questions that come up. Docusign Envelope ID: A8BF5E1D-97F2-41E3-B7BE-F0CC5B82ECCB August 28, 2024 Deer Run CDD 2 Mr. Dean asked did we get the acquisition package for Phase 4 that was an open item from the last meeting? Mr. Buchanan stated I don’t think it has been finalized. I think the outstanding checklist items have been met. I think D.R. Horton has signed their paperwork including the affidavit of costs, but I think we may be waiting on a couple of certificates from the contractors. Mr. Armans left the telephone conference at this time. FOURTH ORDER OF BUSINESS Fiscal Year 2024/2025 Budget A. Overview of Budget Mr. Oliver stated you started this process earlier in FY 24 and approved a budget at the May 29th meeting. The board is required to approve a budget by June 15th of each year. Chapter 190 also requires that you hold a public hearing to adopt that budget no sooner than 60 days after you approve the budget. The board held a budget workshop at your meeting in June. The bottom line upfront is that there is no increase in assessments. This is not a use it or lose it budget. Any funds that you save through good stewardship remain with the district. You don’t send it to Tallahassee or Washington. You can also move funds within the line items so you have flexibility. Tonight’s focus is the general fund budget. You also have the debt service fund budget for the series 2018 bonds that were used to build much of the district’s infrastructure. The board held an assessment hearing at that time in 2018, setting the fixed assessments for the 30-year bond. Once we reach the bond’s 10-year call period in 2028, you will likely be in a position to refund those bonds at a better interest rate. Mr. Oliver reviewed the general fund budget revenues, administrative costs, maintenance, amenity center, the assessment table, line-item descriptions and capital reserve fund budget and the debt service fund for the 2018 bonds. B. Board Discussion C. Public Hearing Adopting the Budget for Fiscal Year 2024/2025 Docusign Envelope ID: A8BF5E1D-97F2-41E3-B7BE-F0CC5B82ECCB August 28, 2024 Deer Run CDD 3 On MOTION by Mr. Garner seconded by Mr. Dean with all in favor the public hearing was opened. Resident comments/questions: capital reserve funding/irrigation repairs, landscaping, and reserve study, where is surplus moneys invested, safety of investments. On MOTION by Mr. Dean seconded by Mr. Garner with all in favor the public hearing was closed. 1. Consideration of Resolution 2024-08 Relating to the Annual Appropriations and Adopting the budget for Fiscal Year 2025 On MOTION by Mr. Garner seconded by Mr. Dean with all in favor Resolution 2024-08 was approved. 2. Consideration of Resolution 2024-09 Imposing Special Assessments and Certifying an Assessments Roll for fiscal Year 2025 On MOTION by Mr. Poulin seconded by Mr. Garner with all in favor Resolution 2024-09 was approved. FIFTH ORDER OF BUSINESS Consideration of Proposal from Riverside Management Services for Facility Night Attendant This item tabled. SIXTH ORDER OF BUSINESS Update Regarding RFP Process for District Management and Property Management Services Ms. Buchanan stated those items have been updated and will be circulated to potential vendors shortly anticipating that you will have the proposals back in time to review them at your October board meeting. SEVENTH ORDER OF BUSINESS Discussion Regarding CDD Goals and Objectives Mr. Oliver stated during the recent legislative session in Tallahassee, the House and Senate passed a bill requiring all special districts in Florida to prepare goals and objectives for Docusign Envelope ID: A8BF5E1D-97F2-41E3-B7BE-F0CC5B82ECCB August 28, 2024 Deer Run CDD 4 each fiscal year. At year end, a comparative analysis report will be prepared, comparing the stated goals and objectives with result. The legislation is very broad and does not provide any type of template or inform Districts specifically what information is required. Our goal is to meet the board intent and deadline of the legislation. You have proposed goals and objectives for this first year knowing that we can build upon that in coming years. We focused on compliance, communications, infrastructure and accountability and finances. This same template is being used in many CDDs throughout the state and was developed with input frtom attorneys and district management companies. Mr. Dean stated I would like to add the goal under communications, have the draft meeting minutes posted within two weeks. On infrastructure, the field manager rather than quarterly inspections I would like to see weekly inspections. That’s what we do and that’s what we pay for. Mr. Oliver stated I don’t want someone to spend their entire authorized eight hours just doing inspections. When Rich is on site, he is addressing action items. I think you want to set yourself up for success in terms of reporting requirements. Mr. Dean stated I would like to see our goals be the minimum standard of what we expect. Mr. Oliver stated so that we all understand, you are not paying just for weekly inspections; you are also having staff coordinate the necessary corrective action resulting from those inspections.. I don’t know that is a good idea to put that in a document and provide it to the legislature. On MOTION by Mr. Poulin seconded by Mr. Garner with four in favor and Mr. Dean opposed the goals and objectives were approved. EIGHTH ORDE ROF BUSINESS Pond B-1 Expansion Mr. Dean stated at the last meeting we discussed if it was an easement we gave Horton to take the dirt out of the pond, which started in February 2023. In March 2023 we were co-authors of the permit to St. Johns River Water Management District to do that work. Last month we started the discussion on getting an easement filed, which we did then it hit while I’m watching them pull the dirt out, I have personal experience with this with family in New York. A Docusign Envelope ID: A8BF5E1D-97F2-41E3-B7BE-F0CC5B82ECCB August 28, 2024 Deer Run CDD 5 company was building part of Interstate 88 and they wanted to take gravel from that and we negotiated and that family member made a lot of money selling gravel. I’m watching them take all this dirt out and driving it across the road, this is CDD property and if we weren’t giving it to them they would have to buy it. They are using public property for Horton so why aren’t we getting compensated? I spoke with the engineer and attorney and sent Horton a letter asking about it. Basically they sent a letter back that said they do enough for the community. We talked about responding and Katie talked with people at her firm and since they do business with Horton in other aspects that she is not the one to reply to that letter. To give everybody an idea the going rate for fill is $9 to $10 a yard, not delivered, $17 to $20 delivered. Horton’s estimate of what they took out is 10,000 cubic yards, that is $100,000 in material alone. I bring it to the board if we want to continue and if so we would have to hire another lawyer. Mr. Oliver stated I have never encountered this particular issues. I think it wise to to consult an attorney and see if we have a case and the probability of prevailing. If you are talking about a potential value of $100,000 in the district’s facor, it is worth looking at it. After further discussion the board took the following action. On MOTION by Mr. Garner seconded by Ms. Martin with all in favor Mr. Dean was authorized to work with staff to consult with a construction attorney regarding compensation for fill that was excavated from Pond B-1. NINTH ORDER OF BUSINESS Staff Reports A. Attorney There being none, the next item followed. B. District Manger – Discussion of Meeting Schedule for Fiscal Year 2025 On MOTION by Mr. Garner seconded by Ms. Martin with all in favor this item was tabled and staff was directed to bring back an analysis of the cost impact for additional meetings. C. Operations Manager Docusign Envelope ID: A8BF5E1D-97F2-41E3-B7BE-F0CC5B82ECCB August 28, 2024 Deer Run CDD 6 1. Report Mr. Gray stated I need approval if you want me to purchase the pickleball windscreens that are $661.95. On MOTION by Mr. Poulin seconded by Mr. Dean with all in favor staff was authorized to purchase the pickleball windscreens and have the pickleball group install them. Mr. Gray gave an overview of the operations manager’s report. 2. Yellowstone Report Mr. Gray stated I brought up the concerns that have been brought to me on mowing and edging and I wanted Antonio to explain to you their way of doing things. They mow the whole property and come back the following day to trim. Mr. Perez explained the reasoning behind the mow, trim schedule. D. Amenity Manager - Report Ms. Clem reviewed the amenity center report, copy of which is included in the agenda package. TENTH ORDER OF BUSINESS Supervisor’s Requests Additional comments: Send email blast with rules and guest policies, food truck night, use QR codes that have been installed, issues with fishing, On MOTION by Mr. Poulin seconded by Mr. Garner with all in favor no fishing sign will be posted on the dock. On MOTION by Mr. Poulin seconded by Ms. Martin with four in favor and Mr. St. Pierre opposed staff was authorized to purchase two pickleball racks in an amount not to exceed $150. Still looking for a place to put basketball court, wrapping up scope of work for landscape contract, school pickup sites, encourage parents to get involved with school pickup sites to have Docusign Envelope ID: A8BF5E1D-97F2-41E3-B7BE-F0CC5B82ECCB August 28, 2024 Deer Run CDD 7 sidewalks, additional quote for reserve study, annual stormwater inspections, proposed easement location, include some charge in easement agreement. ELEVENTH ORDER OF BUSINESS Public Comments Additional comments: Request for a traffic light at the 100 entrance, place for basketball courts at the city park, National Night Out October 1, 2024. TWELFTH ORDER OF BUSINESS Approval of Consent Agenda A. Approval of the Minutes of the June 26, 2024 Meeting On MOTION by Mr. Garner seconded by Mr. Dean with all in favor the minutes of the June 26, 2024 meeting were approved as presented. B. Balance Sheet as of July 31, 2024 and Statement of Revenues and Expenses for the Period Ending July 31, 2024 C. Assessment Receipt Schedule D. Approval of Check Register On MOTION by Mr. Garner seconded by Mr. Dean with all in favor the consent agenda items were approved. THIRTEENTH ORDER OF BUSINESS Next Scheduled Meeting – To Be Determined Mr. Oliver stated the next meeting is scheduled for October 23, 2024 at 6:00 p.m. The meeting adjourned at 8:12 p.m. Secretary/Assistant Secretary Chairman/Vice Chairman Docusign Envelope ID: A8BF5E1D-97F2-41E3-B7BE-F0CC5B82ECCB