SOUTH VILLAGE COMMUNITY DEVELOPMENT DISTRlCT

The regular meeting of the Boa1·d of Supervisors of the South Village Community Development District was held Tuesday, May 7, 2019 at 6:30 p.m. at the Eagle  Landing Residents Club, 3975 Eagle Landing Parkway, Orange Park, Florida

Present and constituting a quorum were:

Chris Payton Grant Krueger Kelly Hermening Randy Smith Rick Smith

Chairman
Vice Chairman Supervisor Supervisor Supervisor

Also present were:

Jim Oliver Katie Btichanan Keith Hadden Jim Hahn
Matt Biagetti Josh Heintzman Alan Slaughter Dean Vincent

District Manager Distiict Counsel District Engineer
General Manager, Honours Golf Director of Operations, Honours Golf Golf Professional, Honours Golf
Golf Course Superintendent, Honours Golf East We t Construction

The following is a summary of the actions taken at the May 7, 2019 meeting. A copy of the proceedings can be obtained by contacting the District Manager.

FIRST  ORDER OF BUSINESS	Roll Call
Mr. Oliver called tl1e meeting to order at 6:30 p.m. and called the roll.
Mr. Oliver stated we are going to amend the agenda and the third item will be the consideration of contract renewal for the Middleburg High School Swim Team to use the Eagle Landing lap pool for practices and swim meets scheduled in consultation with Matt Biagetti.

SECOND ORDER OF BUSINESS	Audience Comments
There being none, the next item followed.

THIRD ORDER OF BUSINESS	Middleburg	High	School	Swim	Team
Agreement Renewal
Mr. Biagetti stated we have a longstanding relationship with Middleburg High School, they have been here utilizing our swimming facility for a long time and it has been a great relationship and a great asset to the community. I do get a lot of volunteer hours from the swimmers on the team and I would like to continue this relationship with Middleburg High School.
Coach Rix stated  the  relationship has  been  positive  over  the years.   We have had new
teams that we swam against since our team has grown. The summer league that you have here ends the 27111 or 28th and our season starts on July 29 th• During the busy summertime I have worked it out to where we come early in the morning from 7 - 9 so we won't affect your community swimmers who want to enjoy the facilities.  When school staits we will swim from 2
4 and hopefully be done by the time the parents come home and want to use the facility.

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor the swim team agreement with the MiddlebUl'g Swim Team was renewed.

FOURTH ORDER OF BUSINESS	Approval of the Minutes of the April 2, 2019
Meeting

On MOTION by Mr. Payton seconded by Mr. Krueger with all in
favor the minutes of the April 2, 2019 meeting were approved.

FIFTH ORDER OF BUSINESS	Update Regarding Phase 6 Construction
Matters
Ml'. Hadden stated Phase 6 is moving along quite well and you will see some model homes under const ·uction pretty soon. All the stormwater infrastructure is in, the lakes al'e built, most of the water reuse and most of the sewer is in.
Mr. Rick Smith asked when will the road that connects us to Tynes be accessible to cars?
Mr. Vincent stated we have a single lift in SA when we build the 77 lots there is a single lift there, we can't put the second lift on until a certain level of homes is met. You will have the single lift in SA going through that street that connects to Tynes Boulevai·d and that will have a single lift as well.

Mr. Hadden stated the reason the county does the one lift is because when you  are building the homes you have concrete trncks, trust tmcks and  all that stuff coming  in and  the road gets beat up so you come back in when most of the houses are done and they get the second lift so you have a nice clean finished surface. If they let us finish that it would be great.
Mr. Vincent stated I'm sure if I sent them some kind of guarantee that  if there  was damage to the surface that we would come back and do some repairs to it.
Mr. Oliver asked for budget preparation purposes, when will the 77 lots be platted.
Mr. Vincent stated the lots are to be platted in the next month or so.

Conceptual Plan for WestbankPark
Mr. Payton stated I met with Dean Vincent, Roger Arrowsmith and Keith to talk about park plans. We are aU aware there is $500,000 of bond money going towards  that large  park area, There are tln·ee smaller padcs and my understanding from today's meeting that  if the  county didn't require those parks to be put in they would not  have  been  designed.  The suggestion was that we pull $120,000 from the small parks, which would leave those pa.des with irrigation, grass and a gazebo or picnic tables and that is it. Then we could use the extra
$120,000 to add some things to the larger park.
Volleyball has been taken out everything else is there. We talked last month at length about landscaping and irrigation and things like that and I think we agreed with Alan that ht·igation is a must, irrigation is one of our highest costs. We talked today about instead of bringing in sod for this much acreage we would propose sodding the area around the playground to the parking area and seed the rest and let it grow in.
Considerations that the board needs to make, everything else that is there  is there,  we have the dog park, open play fields as we all discussed last time there is not going to be any lined fields that is just open field space, a walk.way that comes in from the top comes down to the park area and a walk.way from the park area past the dog park and out to the sidewalk in front of those homes, The circles with lines on the drawing are trees that will be put in. Those trees and  the grass that will be planted with sod is the extent of planned landscaping. Ten parking spaces are currently planned, if we want to talk about adding more they are about $1,500 each. Anything to be added or changed we will need to talk about where the money is going to come from. Right now this plan as shown is the $500,000 plus the $120,000 taken from the three pocket parks and

that uses up all of it. If there is somefuing we want to add we have to talce something away or  find other funding.
The board and staff discussed a jogging path, signage and management of the dog park, lighting for restrooms, volleyball was taken out but could be put back in the plans. pavilion or covered area with picnic tables, build into the budget re-seeding and maintenance of dog park.
Mr. Vincent will tighten up the numbers and get something to Ml'. Payton for the next
board meeting,

Consideration of Series 2019 Requisitions

On MOTION by Mr. Randy Smith seconded by Mr. Payton with all in favor requisitions no. 5 and 7 - 12 were approved.

Consideration of Agreement with Clay County Regarding Third Party Rights
Related to Vallencourt Consttuction Agreement	.
Ms. Buchanan stated at the last meeting the board authorized the addition of a rider to our payment and perf01mance bond that we have in connection with the Vallencourt contract making Clay County an obligee.  Subsequent to om last meeting the county  did come back and request  an official agreement with the district that aclmowledged that they will be a thirdMparty beneficiary and able to enforce the bond for which they were named on the rider.
Ms. Buchanan reviewed in detail the proposed agreement.

On MOTION by Mr. Randy Smith seconded by Mr. Payton with all in favor the agreement with Clay County regarding third  party rights related to Vallencourt Construction  Agreement  was approved.

SIXTH ORDER OF BUSINESS	Update	Regarding	Series	2016	Capital
Projects
Mr. Oliver stated I checked with the accountant today and the current balance  in the Sereis 2016 construction account is $18,823. We will soon exhaust the  balance and take actions to close out the account.
Mr. Randy Smith asked does that count paying for the dividers?

Mr. Biagetti stated the down payment of $9,000 has been paid. We have a remaining balance of $9,000 to be paid after the project is complete.
MT. Hahn stated we won't pay the remainder until we are satisfied.

SEVENTH ORDER OF BUSINESS
Jonas POS System

Ratification of Agreements:

Mr. Hahn stated Troon has a Jonas department and they will be doing the installation and that will result in real savings to the district. We still have to cover the expenses of the people coming here but that is all pait of our contract.

On MOTION by Mr. Payton seconded by Mr. Hermening with all in favor installation of the Jonas system was ratified.

MembersFirst Website Services
Mr. Oliver stated the District's suggested revisions to the agreement have been sent to MembersFirst for review. A final version of the agreement can be considered at  the  next meeting.
Ms. Buchanan stated you can delegate authority to Mr. Hermening to authorize the
MernbersF'irst agreement assuming it is in substantially similar terms to what is in front of you.

On MOTION by Mr. Randy Smith seconded by Mr. Payton with all in favor Mr. He1mening was authorized to approve the final agl'eement with MembersFirst that will be ratified at the next meeting,

EIGHTH ORDER OF BUSINESS	Consideration of Proposal for Golf Course
Bunker Renovations
Mr. Hahn presented the proposal from MacCw.rnch Golf Construction to redo 20 bunkers and stated we would like to get this approved for planning purposes but the work wouldn't be done until the fall.
Ms. Buchanan stated we can put in the agreement that the work will be performed in accordance with industry standards.

On MOTION by Mr. Hermening seconded by Mr. l)ayton with  all in favor the pl'oposal from MacCurrach Golf Construction for bunker renovations was approved in an amount not to exceed
$138,000 and Mr. Hennening was authorized to work with the golf staff and the contractor on the details of the project.

NINTH ORDER OF BUSINESS	Discussion of Proposed Rates for Recreation
and Golf
Ms. Buchanan stated you may recall that the board has to officially adopt its future fees and rates via a rnlemaking process. This will require that we publish notice of rule development and notice of mlemaking for 29 and 28 days in advance of having a hearing. Generally your meetings are not sufficiently spaced to allow us to publish this 29 and 28 days between meetings so what we are doing today is discussing the proposed rate increases by management with the understanding that we would bring back and have the hearing in July.
Mr. Hahn stated the main change in the 1·ates applies to what we consider the public xate for people outside om demographic, outside our local counties.  It doesn't  impact the  resident rate or local rate but gives us more freedom and it also allows us to work with wholesalers at a higher premium as well.

On MOTION by Mr. Payton seconded by Mr. Randy Smith with all in favor the proposed changes to the rates were approved and staff authorized to publish notice of rule development and rulemaking for a July hearing.

TENTH ORDER OF BUSINESS	Board Guidance Regarding Preparation of
Fiscal Year 2020 Proposed Budget
Mr. Oliver stated we will bring a proposed budget to the June meeting for board approval and to ,set the public hearing. From my discussions with Jim and looking at the budget I don't think we are in a position to lower assessments this year.
After June 1, we will receive the tax roll from the tax collector based on property ownership as of Janmuy 1, 2019. We will compare that roll to last year's roll and also work with amenity  staff  on  the ground  to determine  which new propertuy  owners have  not yet  paid  the
$500 initiation fee due upon closing. Once these receivables are documented, The District will send notices to them requesting payment or provide documentation the fee has been paid at or after  closing. In the absence of payment, , the $500 will be collected via  the assessment roll.  On

an ammal basis that is going to be our true-up to make sure everyone is paying that  $500 initiation fee that rolls into the golf capital reserve fund.
At the last meeting we talked about levying an assessment on the sales center. Right now there are no CDD bond debt levied on the sales center property. Also, there is no O&M assessment on the sales center. The levy of a debt asses$ment in the property under its cw1·ent ownership is unlikely because although the Series 2005 issue provided approximately  25.5 million in cons1rnction funds, the total capital projects funded through the District was in the neighborhood of $41 million. The developer funded any costs in excess of the construction fund. The O&M fee is different, but there is a process to levy O&M and the board would have to determine whether or not that process would be cost efficient to levy O&M. An assessment methodology would be commissioned to determine the specific benefit that property receives to determine  a valid O&M  assessment amount. The assessment  report will cost between  $5.000 to
$10,000. Thern is a legal process involved, to include published notice and  a public heating.  Yyou will be spending a significant amount of money up front to receive what could be a modest assessment. . That property does not necessarily benefit from the recreation components of the budget. If the assessment consultant detennined it did not find recreational benefit for the sale center property, you would only be levying an assessment for the general fund budget as well as community appearance. That would be very similar to what we are looking at  for  the undeveloped lands that we have for the cottage lots, which translates to about $1,000 to $2,000 worth of  general  fund  assessments.  If  that  property  were sold  to some  type of  govermnental
organization or HOA, the p1'operty would become exempt from assessments. It would be a three to fom· month assessment process if you decide to move forward, but it is important to consider the process costs.
The budget process was discussed, the proposed budget will be presented at the June 4th meeting, with per unit assessments to remain the same. New revenues will be generated by the additional 77 phase 6 lots to be platted this summer..

ELEVENTH ORDER OF BUSINESS	Other Business
There being none, the next item followed,

TWELFTH ORDER OF BUSINESS	Staff Reports

General Manager - Report
Mr. Hahn gave an overview of the golf operations report and financials, upcoming social events, repairs to the planks on the golf bridges, tem1is clinics, and fountain maintenance.

District Counsel
Thel'e being none, the next item followed.

District Manage_r - Report on the Number of Registered Voters - 2,487
A copy of the letter from the supervisor of elections indicating there are 2,487 registered voters residing within the district was included in the agenda package.

THIRTEENTH ORDER OF BUSINESS	Supervisor's	Requests	and	Audience
Comments
Mr. Hermening stated we entered into the fee agreement with Hopping Green & Sams a couple years ago and given the workload and since it is lower than for any other agency, we may want to consider an increase and still maintain the budget. The proposed increase is  from $215 per hour to $275,
Mr. Payton asked do we need a motion?
Ms. Buchanan stated you don't, our contract allows me to increase rates. Mr. Hennening stated the other part is the assistant, Michelle.
Ms. Buchanan stated I think her rate is $175 to $225.
Mr. Payton stated ifwe don't have to take action, then take this as so noticed.
Mr. Randy Smith asked are we going to consider acquiring the sales office and cottage lots? I think we need a separate meeting with Roger present and get whatever the offer is, clarified.
Mr. Krueger stated Roger sent me a proposal and I put together a little packet. Right now it is scheduled for 18 cottage homes, a little bit closer to the water.
The consensus of the board was to continue the June 4th meeting to June 5th in order to discuss the possibility of purchasing the cottage lots.
Mr. Randy Smith requested that a list of the houses that paid the $500 be included in all future agenda package and stated we talked about preparing a document explaining what the  HOA does, the CDD and the County.

patio,

Ms. Buchanan stated we will put that together.
A resident asked  what has been done to create  a  separate  smoking area  at the clubhouse

Mr.  Hahn stated  we separated  the left  hand  side the  patio  to the right  hand  side of the

patio and moved the tables further apart and have signs on both ends of the patio.
A resident stated the discus sion on the dog park needs to be thorough, the expense is going to be constant and it is going to be a mess. If 50% of the people pick up after their dogs  that is doing ve1y well, it will require daily maintenance and I don't think we need it.

FOURTEENTH  ORDER OF BUSINESS	Financial Reports
Balance Sheet as of March 31, 2019 and Statement of Revenues and Expenses for
the Period Ending March 31, 2019
The balance sheet and income statement were included as part of the agenda package.

Assessment Receipt Schedule
The assessment receipt Schedule was included as pali of the agenda package.

Approval of Check Register

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor the check register was approved.

FIFTEENTH  ORDER OF BUSINESS	Next Scheduled Meetings:
05/08/19 Workshop at 6:30 p.m. at Eagle Landing Residents Club
06/04/19 Regular Meeting at 6:30 p.m. at Eagle Landing Residents Club

On MOTION by Mr. Payton seconded by Mr. Randy Smith with all
in favor the meeting adjourned at 8:52 p.m.

Secrcl		y	Chair

9