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, March 19, 2025, at 6:30 p.m. at the Island Club, 501 Grand Reserve Drive, Bunnell, Florida. Present and constituting a quorum were: Gary Garner Chairman Franklin Gates Vice Chairman Barbara DeSantis Supervisor Melissa Tabares Supervisor Gary Masten Supervisor Also present were: Jim Oliver District Manager Katie Buchanan District Counsel by telephone Darrin Mossing GMS Rich Gray RMS Alison Mossing RMS Natalie Clem RMS Antonio Perez Yellowstone Raul Hernandez Yellowstone FIRST ORDER OF BUSINESS Roll Call Mr. Garner called the meeting to order and called the roll. Mr. Oliver stated there was one agenda item that has brought a lot of people to the meeting, and we will consider that one separately. We are going to move item 10 to the top of the agenda and take public comments on that then we will take public comments on all the other agenda items. TENTH ORDER OF BUSINESS Discussion of Amenity Cetner Groups and Clubs Policies Ms. Mossing read into the record the proposed amendments to the amenity center policies and explained that the proposed amendments were a result of previous input by the board. Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6 March 19, 2025 Deer Run CDD 2 After a lengthy discussion by residents of the proposed change in policies, the board took the following action. On MOTION by Mr. Masten seconded by Mr. Gates with all in favor this item was tabled, and Supervisor DeSantis was authorized to work with various community groups to get more input and possibly have a workshop on the use of the amenity center. The board took a short recess after which the meeting reconvened. The next item taken out of order. Yellowstone Report Mr. Hernandez stated we installed the pine straw at both entrances. We installed mulch at no cost in appreciation of the long partnership we have with the community. We mulched the 100 entrance as well, palm pruning is scheduled for the first week of May. SECOND ORDER OF BUSINESS Public Comments There being none, the next item followed. THIRD ORDER OF BUSINESS Consideration of Agreement with Governmental Management Services for District Management Services Mr. Oliver stated this is the agreement that was approved in November and brought to the January meeting on short notice, and you have given the board until this meeting to look at it and ask any questions. Mr. Garner stated I wanted to give you time to go through the contract and get familiar with it. Mr. Oliver stated the original contract was two or three pages, was a bare-bones contract, and detailed the scope of services. These are the same fees you adopted in the 2025 budget. This contract goes through the end of the fiscal year and as you go through the budget process you will have discussions for all your line items. Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6 March 19, 2025 Deer Run CDD 3 Mr. Garner asked is there any way that GMS can let us see the invoices as they are being processed? You can email them and let us review them and if we have questions. I’m not saying not to pay it but let us review it. Mr. Oliver stated absolutely. Mr. Garner stated for budget purposes for next year, can you send it to us monthly? I want to keep a record of it. The hours that RMS is spending, Rich’s time Natalie’s time, so I have a history. When we talk about the budget, I don’t have a clue and I would like to have a clue for next year. Mr. Oliver stated I think our time system would be able to generate the reports you are talking about on the RMS side. We work for a flat fee in the GMS contract. Mr. Garner stated I understand on the management side, but the people on the clock here. For planning purposes when you get an invoice from Katie, do they state the number of hours they spend on a project? Mr. Oliver stated yes, and attorney invoices are very detailed. Mr. Masen asked do we ever pay late fees? Mr. Oliver stated if the late fee is our fault, we pay it and if the late fee is the vendor’s fault, or if some type of thing that can be negotiated away, we find the vendors we work with, and if there is a problem, they waive it. On MOTION by Mr. Gates seconded by Mr. Masten with all in favor the agreement with Governmental Management Services for district management services was approved. FOURTH ORDER OF BUSINESS Consideration of Agreement for On-Site Property Management Services Mr. Oliver stated the next agreement is with RMS for onsite property management services. Ms. Tabares asked if the property manager stays late for an event, do they get paid extra for that? Ms. Mossing stated Natalie is a salaried employee, so she does not make overtime for any extra activities she hosts. The fees you pay for Natalie’s position is flat billed every month, there is no variance. Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6 March 19, 2025 Deer Run CDD 4 Mr. Garner stated I would like to sit down with you and Rich. I want to tweak this scope of work and what he does here, the 8 hours once a week so I can use this at a budget workshop. On MOTION by Mr. Masten seconded by Mr. Gates with all in favor the amendment to the Riverside Management Services, Inc. for property management services was approved. FIFTH ORDER OF BUSINESS Update Regarding SJRWMD Required Mitigation Plan Mr. Oliver stated Peter asked about the plan that Rich had worked out informally with the water management district, and that they gave us the greenlight to be provided to Dewberry, the engineering firm, so that they could formalize the plan to get final sign-off from the water management district so that we can proceed. We are keeping the ball moving at their pace, so we are not accused of not complying. As soon as that is submitted, I am happy to share that document with the board. SIXTH ORDER OF BUSINESS Update Regarding Irrigation System Matters Mr. Oliver stated a few years ago a report was prepared by IDS on the functioning of the pumps and irrigation system. The conclusion they reached was that the system could not handle any additional phases. Recently, based on board approval additional work was done to the pump system and after that work was completed, we reengaged this same firm to get their thoughts on this upgraded system. They did their onsite work, and we received the report this week and the most important thing you can take from this report is that it will support phases 5 and 6 because that was the key question. It can handle that but that still leaves us with the problem we have of overuse. The problem is we can’t irrigate everyone’s yard at the same time. Whether there is a mechanical and costly fix to this that somehow, we can control zones or change the flow of the water, I have no technical expertise in any of this, but perhaps there is some type of equipment solution. The early information we got back from M and M is it would be cost prohibitive. The other part is it could be that it is time to refocus on education but also compliance enforcement and whether we bring St. Johns River Water Management District into this or we handle that ourselves. They have the ability to fine and in my neighborhood, everyone is cautious and makes sure they only use water on the authorized days. Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6 March 19, 2025 Deer Run CDD 5 The board discussed different methods of notifying and educating residents on irrigation lawns. SEVENTH ORDER OF BUSINESS Approval of Landscape Maintenance RFP Project Manual and Board Direction to Issue RFP On MOTION by Mr. Masten seconded by Mr. Gates with all in favor the landscape maintenance RFP project manual was approved and staff directed to issue the RFP. EIGHTH ORER OF BUSIENSS Presentation of Capital Reserve Study Report Mr. Oliver stated this is the first capital reserve study commissioned by this district, which lists all the capital assets, the useful remaining life, date it was put into use and a replacement cost for that. This is a 30-year outlook and the further out you get the less accurate it is, and you will probably update this every four or five years. The main thing to take away from this is the capital contribution for FY26 is $61,000 then it is about a 3% increase each year. The last two years you made some pretty hefty contributions to the capital reserve but according to this report you have the latitude to lower it this next year. This is a tool that you will use and is one point you will consider as you adopt your budget. NINTH ORDER OF BUSINESS Consideration of Proposals A. Future Horizons, Inc. – Fountain Nozzle Replacement On MOTION by Mr. Masten seconded by Mr. Gates with all in favor the proposal from Pinch-A-Penny in the amount of $360.50 was approved. B. M and M Service – Presentative Maintenance Agreement for Pumps On MOTION by Mr. Garner seconded by Mr. Gates with all in favor the proposal from M and M Sales -Service in the amount of $3,800 was approved. Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6 March 19, 2025 Deer Run CDD 6 TENTH ORDER OF BUSINESS Discussion of Amenity Cetner Groups and Clubs Policies This item taken earlier in the meeting. ELEVENTH ORDER OF BUSINESS Engineer’s Report There being none, the next item followed. TWELFTH ORDER OF BUSINESS Staff Reports A. Attorney Ms. Buchanan stated in the next week or so look for an email from my firms called Capital Conversations, a summary of legislative items that may impact community development districts. One thing of note of the type of things that we will highlight for you is proposed legislation, which would change liability for who is responsible for payment if a tree falls on a neighboring property. Because the district does own some common areas with trees to the extent that a tree were to fall on a resident’s home, right now that would be a district liability unless the tree was damaged but going forward that could potentially change and that would probably change the way our insurance is calculated and the way we could operate our wooded areas. B. Engineer There being none, the next item followed. C. District Manager Mr. Oliver stated at the next meeting we will bring a proposed budget, that kicks off the formal budget process. We approve the proposed budget, adopt a resolution setting the public hearing no sooner than 60 days and typically for this district we make it more like 90 days. You typically adopt it in August and that gives us time to transmit the assessment roll to the tax collector. The main thing we are focused on the next couple of months is getting this budget right. Typically, you will see a conservative budget focused on the high side and you will refine that budget over the next 60 to 90 days. The board and staff discussed the extra hours at the pool on weekends. Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6 March 19, 2025 Deer Run CDD 7 On MOTION by Mr. Masten seconded by Mr. Gates with all in favor staff will be present in the evenings Friday, Saturday and Sundays from 5-10 p.m. from Memorial Day to Labor Day. D. Operations Manager 1. Report Mr. Gray gave an overview of the operations report, copy of which was included in the agenda package. 2. Yellowstone Report This report taken earlier in the meeting. E. Amenity Manager Ms. Clem reviewed the amenity manager’s report, which was provided in the agenda package. THIRTEENTH ORDER OF BUSINESS Supervisor’s Requests Additional comments: Toys and recreation policy, lot on Sand Wedge, maintenance of roads, MSTU, speed bump, faded street signs, price shed to over the pumps, amount of assessments D.R. Horton pays, pothole by speed bump, send email about rec pond, date and location for workshop on amenity policies, feedback from town hall, put in solar streetlight by mailbox kiosk, neighborhood watch, irrigation system, bus stops, need of a playground, park with fishing pier, walking trail, benches and outdoor exercise stations, parking issue. FOURTEENTH ORDER OF BUSINESS Public Comments Additional comments: Bunnell Police Department had traffic Tuesday, streetlights for safety. FIFTEENTH ORDER OF BUSINESS Approval of Consent Agenda A. Approval of the Minutes of the January 23, 2025, Meeting Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6 March 19, 2025 Deer Run CDD 8 On MOTION by Mr. Masten seconded by Mr. Gates with all in favor the minutes of the January 23, 2025, meeting were approved as presented. B. Balance Sheet as of February 28, 2025, and Statement of Revenues and Expenses for the Period Ending February 28, 2025 C. Assessment Receipt Schedule D. Approval of Check Register On MOTION by Mr. Masten seconded by Mr. Gates with all in favor the check register was approved. SIXTEENTH ORDER OF BUSINESS Next Scheduled Meeting – May 28, 2025, at 6:30 p.m. at the Island Club Mr. Garner stated the next scheduled meeting is May 28, 2025, at 6:30 p.m. in the same location. On MOTION by Mr. Gates seconded by Mr. Masten with all in favor the meeting was adjourned at 10:25 p.m. Secretary/Assistant Secretary Chairman/Vice Chairman Docusign Envelope ID: 638A88F4-4D09-4FDE-96DB-A46B580B93D6