SOUTH VILLAGE COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the South Village Community Development District was held Tuesday, November 5, 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 Buchanan Emma Gregory Keith Hadden Matt Biagetti Jim Hahn
Josh Heintzman Alan Slaughter Joe Halifco Dean Vincent

District Manager District Counsel Hopping Green & Sams District Engineer
Director of Operations, Honours Golf General Manager, Honours Golf
Golf Professional, Honours Golf
Golf Course Superintendent, Honours Golf F&B Manager, Honours Golf
East West

The following is a summary of the actions taken at the November 5, 2019 meeting. A copy of the proceedings can be obtained by contacting the District Manager.

FIRST ORDER OF BUSINESS	Roll Call
Mr. Oliver called the meeting to order at 6:30 p.m. and called the roll.

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

THIRD ORDER OF BUSINESS	Approval of the Minutes of the September 17,
2019 Meeting

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor the minutes of the September 17, 2019 meeting were approved as presented.

FOURTH ORDER OF BUSINESS	Consideration of Property Owner's Revised
Offer for Sale of Cottages Parcel to the District
Mr. Payton stated the property owner spoke to all the board members individually  prior to the meeting. My understanding of the new offer from the developer is they would sell the parcel to the CDD for $750,000, with East West paying off the bond debt of about $320,000.
Mr. Randy Smith stated in my conversations with Mr. Arrowsmith he indicated that he
had a buyer and their intention was to take down all the trees.
Mr. Hermening stated he told me there would be a buffer of trees along the golf course.
Mr. Vincent stated we have a buyer and they wouldn't take down all the trees. They would be able to leave some trees. There would be about 15 detached units with detached garages.
Mr. Rick Smith asked didn't they say it would be 15 at a minimum, but they would fit as many as they could?
Mr. Vincent stated we have come up with a plan that is 15 units that the buyer would like to do. This buyer is accustomed to doing the type of building, which generally requires a lot of full-scale clearing and filling so it would be difficult to save as many trees as we would like to do. That is the offer Roger received.
Mr. Randy Smith stated I was told the intention was to clear cut the property and you are saying there will be a tree buffer between the golf course and the homes.
Mr. Vincent stated I didn't use the word buffer. The plan we had would save more trees and there were 15 homes. When we provided that to this builder, this builder rejected that saying he would have to have more density so he would take out more trees. I don't have a plan from that builder. The reason it is time sensitive is the development rights issues that we have to secure, expires in a year.

Mr. Hermening moved to reject the offer and Mr. Payton seconded the motion.

The board discussed possible sources of funding, the purchase of the property it has to be a benefit to the community, and annexation of West Bank property was to build capital reserves,

Mr. Randy Smith stated you are saying at no price.
Mr. Payton stated we are saying at this price, the offer is $750,000. Mr. Randy Smith asked would we expect a counter?
Mr. Hermening asked did Roger seem to believe that there was any more room? That is not the way it sounded to me. He went back to his partners and got them to agree to come down.
Mr. Randy Smith asked if he came down that far how do we know he won't go down further?
Mr. Hermening stated we reject the offer and ifhe is interested in selling it he will come back with something else.
Mr. Payton stated if he comes back with a number equal to what the HOA has and said the HOA will pay for it and we will give it to you, how do you say no to that. That is the kind of deal I can sit down with someone and say he had money in the HOA he bought it for them and gave it to us.
Mr. Randy Smith asked are we making an uneducated decision ifwe don't take the time, spend the money to get it appraised?
Mr. Rick Smith asked what if somehow we do enter into the deal and got income from that to offset?
Mr. Oliver stated you have a motion and second and you can vote on it or withdraw it.

On voice vote with two in favor and Mr. Randy Smith, Mr. Krueger and Mr. Rick Smith opposed the motion failed.

Mr. Krueger stated I think we need to table this until next month.
Mr. Randy Smith stated I would like to get a professional appraisal for the land so we know what we are talking about and the appraiser is going to have to understand what our goal is and find out what it will support.

Mr. Randy Smith moved to get a professional appraisal for the land Mr. Rick Smith seconded the motion and on voice vote with three in favor and Mr. Payton and Mr. Hermening opposed the motion passed.

Mr. Oliver stated Keith can you coordinate that? Mr. Hadden responded yes.
Mr. Payton asked do we need to find more than one? I assume the cost of doing that is low enough.
Ms. Buchanan stated I don't expect the cost to be significant.
Mr. Vincent stated we have gotten individual appraisals around $1,500. It normally takes around 30 days.
Mr. Hermening stated I don't like the idea of the developer's appraiser doing this. Mr. Oliver stated we can work with counsel to find an appraiser.
Mr. Payton asked do we need to authorize somebody on the board to move that forward so we are not delayed?
Ms. Buchanan stated yes.
Mr. Randy Smith stated I will do that.

The next two items taken out of order.

NINTH ORDER OF BUSINESS	Ratification	of	Agreement	with	Baker
Contractors, Inc. for Phase 6
Mr. Oliver stated as you will recall the board previously ranked construction proposals and selected Baker Contractors. An agreement was prepared and executed, and we are looking for the board to ratify that agreement.

On MOTION by Mr. Payton seconded by Mr. Rick Smith with all in favor the agreement with Baker Contractors for Phase 6 was ratified.

TENTH ORDER OF BUSINESS	Update	Regarding	Phase 6 Construction
Matters
Consideration of Baker Contractors Change Orders 1 & 2
Mr.  Hadden  stated  there  are  two  change  orders  in your  package,  one is a  credit  of
$16,545 for the grassing in the amenity area. The second is for the storm drainage that the county changed after we bid the project and it shows a deduction of $286,871 and an addition of
$334,549 so it is net increase of $47,668.

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor change orders 1 & 2 were approved.

Mr. Vincent stated we asked for a credit in those change orders because Matt and I have been talking to a couple landscape firms that you have used in the past to get pricing for sod and seed. We found their pricing was much more favorable. It made sense to pull that out and get the credit so those moneys could go back into the park pricing. When we make a presentation to you next month that will be wrapped in there, the sod and seed.

Update Regarding Road Construction and Acceptance
Mr. Vincent stated as of today all of the punch list items on both the subdivision and Tynes Boulevard are complete. Tynes Boulevard from an acceptance standpoint there is no formal take it to the board of county commissioners, but you have to do that on the subdivision. Eagle Landing 6 Section 1 will be going to the board of county commissioners on the 26th • There is a final lift of asphalt that has to be done once a certain level of homes are constructed. What that also means is C.0 .s (certificates of occupancy) can be issued on homes.

Ratification of Series 2019 Requisitions 36-39

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor requisitions 36-39 from the 2019 bonds were ratified.

FIFTH ORDER OF BUSINESS	Public Hearing Adopting User Rates and
Fees for Eagle Landing Golf Club and Recreational Facilities, Resolution 2020-01
Ms. Buchanan stated the purpose of today's hearing is to consider the adoption of fees and rental charges. This is required under Section 190.035 and we are required to give landowners an opportunity to comment on the rates we are proposing.

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor the public hearing was opened.

Ms. Buchanan stated Exhibit A to Resolution 2020-01 includes the range that was previously authorized. At this time is there any indication or desire of the board to alter these ranges? We can adjust them downward, but we cannot adjust them upward.
There was no desire to adjust the proposed ranges.
Ms. Buchanan stated I request that Jim Hahn think about these questions. Do you think that the rates we are proposing are commensurate with the amount of service that we are going to furnish?
Mr. Hahn responded yes.
Ms. Buchanan asked do you believe that the rates are going to be just and equitable and uniform for users of the same class?
Mr. Hahn responded yes.
Ms. Buchanan asked do you think that these rates when combined with other revenues that the district has are going to be sufficient to pay for the operation and maintenance of the golf facilities?
Mr. Hahn responded yes.
Ms. Buchanan stated at this time I suggest the board open the floor for public comment unless you have any further discussion amongst yourselves.
There being no comment or questions from the public, the board took the following
action.

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor the public hearing was closed.

On MOTION by Mr. H seconded by Mr. Randy Smith with all in favor Resolution 2020-01 was approved.

SIXTH ORDER OF BUSINESS	Consideration of Resolution 2020-02 Setting
a Public Hearing Date to Adopt the Revised Rules of Procedure
Ms. Buchanan stated every few years our firm evaluates changes in legislation as well as things we have learned along the way and put those suggestions to your rules of procedure.  There is included in the agenda package a memo that highlights our proposed changes. I also included a redline so you could see exactly the changes that we are proposing. What we will do

tonight is set the hearing for January 7th and if you have any thoughts or comments on the proposed rules between now and then we always have the opportunity to revise them before you adopt the final version.

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor Resolution 2020-02 was approved.

SEVENTH ORDER OF BUSINESS

Ratification of Audit Engagement Letter with Berger Toombs Elam Gaines & Frank for the Fiscal Year 2019 Audit

Mr. Oliver stated this is the firm you selected through the RFP process. The stated fee is
$7,000, which is as budgeted for the audit this year.

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor the engagement letter with Berger Toombs to perform the fiscal year 2019 audit was ratified.

EIGHTH ORDER OF BUSINESS	Discussion	of	Transfer	of	Funds	to
Recreation Fund & Golf Operation Fund
Mr. Hahn stated I submitted to Jim and I believe he put them in the package some additional staffing for maintenance purposes primarily. Having more part time staff in maintenance would be a big help in the day to day maintenance and upkeep of all the amenities as well as assisting wherever we need them including on the golf course. That is a request for  two part time people.
Mr. Randy Smith asked how many hours is that?
Mr. Hahn responded about 25 to 30 hours per staff member.
Mr. Randy Smith stated looking at the information you sent us the delta was greater than anticipated. If that delta is greater I'm reluctant to spend any more money  to make that delta  even larger.
Mr. Hahn stated we budgeted that between both properties by the $25,000 for the year. Rec was under and golf was over and golf was related to bringing on a lot of people, which we did mid-season brought in from the rec and added to the golf. We added about $130,000 of additional payroll, we transferred the funds from there over to us and we absorbed that in the revenue.

Mr. Oliver stated I will bring back a budget amendment to show the transfer of those
funds.

ELEVENTH ORDER OF BUSINESS	Consideration of Updates to Amenity Policies
Mr. Payton stated I asked Jim Hahn and staff to revisit those policies and we will move this item to next month's agenda.

TWELFTH ORDER OF BUSINESS	Update Regarding Point of Sales System and
Website
Mr. Hahn stated we did delay the website until the end of October. The entire POS system is in place and staff is getting comfortable with it. Once we start using that system it will help us do a lot of different things; better tracking and better tools for the staff to use. We expect that by the end of this month we will be up and running.
Mr. Payton stated between now and 30 days if one of the major components is not going to be online would you let us know?
Mr. Hahn stated yes.
Mr. Heintzman stated I just had a call about statements so that should be active now.  You won't see anything you billed today until noon tomorrow. It is a six-hour cycle. When I come in the morning everything will be live from the prior day and you will be able to see it at noon.

THIRTEENTH ORDER OF BUSINESS	Staff Reports
General Manager - Report
Mr. Hahn reviewed the operations report that was included in the agenda package then presented a report that recapped last year broken into three areas, capital projects, resident events and summary of revenues.

District Counsel
There being none, the next item followed.

District Manager
There being none, the next item followed.

FOURTEENTH ORDER OF BUSINESS	Supervisor's Requests
The following items were discussed by board members and staff: beverage cart repairs, mulch, possibility of no parking signs by #10, coverage by the sheriffs office, green #11 deficiencies to be addressed in the spring, tennis lesson breakdown by residents and non­ residents, signage for Laurel Valley (Dream Finders Phase 5), cameras for entry roads, speaker system for music not a PA system, Wi-Fi, palm tree pruning, greens not cleaned after cutting, and reduce meeting frequency in FY20.

FIFTEENTH ORDER OF BUSINESS	Audience Comments
Mr. Smith stated my wife and I are coordinators for the Soaring Eagles 50+ group and at our last members breakfast we had Commissioner Wayne Bolla present and brought us up to speed on what is going on in the county, etc. The conversation  moved in the direction of seeing a traffic signal at the entrance to Eagle Landing Parkway. The commissioner indicated that if the CDD were to send a letter requesting the county look into that and that would start the process. Would the CDD send a letter to the county?
Mr. Payton stated if the board is fine with it, I will work with Jim on that.
A resident stated several meetings ago a resident asked about pickleball. I have not seen anything happening around the tennis courts. Is there a plan to create a pickleball outdoor court and provide training or leagues or something to get pickleball as an active event in the community?
Mr. Payton responded we do not have a plan to set aside dedicated pickleball courts. We have pickleball lines in the gym now. A year ago we had the local pickleball ambassador came out and gave introductory lessons and we had 12 people show up. We have a request from one person so far to paint pickleball lines on our outdoor courts. We looked into that and it is under review. There is an expense and a concern about painting the courts because they have a rubberized surface. We haven't moved forward with that.
Mr. Brown asked I have a comment on the property under discussion. The map online is interactive and if you click on any lot it will tell you which builder had it and what they plan to put on there. The area he is talking about selling shows preserve. It seems like false advertising

to see the beautiful map and it didn't come out until the last six months that he could develop that.
Mr. Payton stated the rest of the preserve lands have been deeded to the CDD.
Ms. Buchanan stated that is correct and while I do think there has been some surprise from the community that this area will be developed, understand that when the district issued bonds in 2006 units were allocated to that area. The cottage lots were always marked for anticipated development.
Mr. Krueger stated it was never a secret. I have been on the board for eight years and I have been talking about this for eight years.

SIXTEENTH ORDER OF BUSINESS	Financial Reports
Balance Sheet as of September 30, 2019 and Statement of Revenues and Expenses for the Period Ending September 30, 2019
The balance sheet and income statement were included as part of the agenda package. Mr. Krueger stated we need to look at what we are going to charge at the cafe next year. Mr. Payton asked do we need to change it because it is residents.
Mr. Hahn stated I think we can do a little better and still be fair to the residents and be selective where we increase prices.

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

Approval of Check Register

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

SEVENTEENTH ORDER OF BUSINESS	Next	Meeting	Scheduled
December 3, 2019 at 6:30 Landing Residents Club
Mr. Oliver stated our next meeting is December 3r d    at 6:30 p.m.

for	Tuesday,
p.m.   at  Eagle

A resident stated with the new POS system are you able to identify a resident versus a non-resident and may be able to offer discounts to residents.

Mr. Hahn stated we have not looked at two different rate structures, public versus residents .

On MOTION by Mr. Payton seconded by Mr. Krueger with all in favor the meeting adjourned at 8:35 p.m.