MINUTES OF MEETING SOUTH VILLAGE COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the South Village Community Development District was held Tuesday, June 6, 2023 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 Chairman Glenn Warren Vice Chairman David Frechette Supervisor Jennifer Osbeck Supervisor Also present were: Marilee Giles District Manager Wes Haber District Counsel Alex Acree District Engineer Matt Biagetti Director of Operations, Honours Golf Jim Hahn General Manager, Honours Golf Josh Heintzman Golf Professional, Honours Golf Joe Halifco Operations, Honours Golf The following is a summary of the actions taken at the June 6, 2023 meeting. FIRST ORDER OF BUSINESS Roll Call Ms. Giles 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 May 2, 2023 Meeting On MOTION by Mr. Payton seconded by Mr. Warren with all in favor the minutes of the May 2, 2023 meeting were approved as presented. DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 2 FOURTH ORDER OF BUSINESS Update Regarding Open Items A. Update on Phase 5 Construction Mr. Biagetti stated at this point I have no updates for Phase 5. As I mentioned before we can get bids if we have to for the monument signs. Mr. Haber stated there is a resolution on the agenda under item ten, which is recognizing contribution of infrastructure improvements in lieu of payment of capital assessments. That resolution touches on the issue a little bit. As the board is aware when the district issued its 2016 bonds, the issuance contemplated that in addition to assessments that were levied that Dream Finders would pay $10,000 per lot to the district. That money was to be used to pay for those Phase 5 improvements. Certain amounts of those moneys that was collected remains with the district, but the improvements are complete. The bond documents contemplated that the funds that were collected would be returned to Dream Finders because the money is no longer needed to build those improvements. Dream Finders has touched base with the district and inquired about having that money returned and this board has had discussions about returning that money but also seeking to potentially retain some of that money to pay for signage in that area of the district. The resolution in front of you touches on these topics; it deems this Phase 5 of the Dram Finders project complete, which means that there would be no further construction and Katie has spoken with the engineer and the engineer is comfortable signing a certificate deeming that project complete. It would accept the contribution of the improvements that make up that project in lieu of collecting any additional $10,000 payments on the lots and it also contemplates that Dream Finders would be paid $500,000 of the amounts in that account; that the district would retain approximately $81,000, which consists of $50,000 that Dream Finders will allow the district to retain for purposes of dealing with the sign, but there was also approximately $31,000 that was interest on those moneys in that account. Under the bond documents Dream Finders would be entitled to all amounts in that account including the interest, although this resolution was drafted such that Dream Finders would get $500,000, the district would retain the $50,000 plus the approximate $31,000 interest for a total of around $81,000 to put towards the signage and the district would use those moneys for those purposes, the signage and related improvements. Katie has not received a response from Dream Finders as it relates to their willingness to allow the district to keep that interest. For purposes of your approval at this meeting, we think you can approve this resolution, delegating authority to your chair or someone you feel comfortable working with staff to finalize DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 3 those discussions with Dream Finders understanding that you may end up only getting the $50,000 they originally offered in which case Dream Finders would get everything other than the $50,000 and that is the amount you would have towards the signage or they may be agreeable to the larger amount. Ms. Osbeck stated the signage was approximately $50,000, right? Mr. Payton stated two years ago. Ms. Osbeck asked you said they will not collect $10,000 on the remaining lots? Mr. Haber stated yes, this resolution recognizes that the infrastructure that they constructed is complete, so the district no longer needs to collect the $10,000. It is in recognition that the infrastructure is complete and as a result there is no longer any reason to collect the $10,000 nor is there really any reason to retain the moneys in that account. Mr. Payton stated Matt has been working to collect proposals, contractors are slow to respond. We are hoping to keep the interest to cover any shortage. Dream Finders still hasn’t told us they are definitely not building the signs. The last time we talked to them they still planned on building the signs. He is requesting to hold the $50,000 because there was an outstanding issue of the signs. Mr. Haber stated to the extent you want to take action tonight I think you can approve the resolution in substantial form and delegate authority to your chair to work on the only open issue which is what that amount is that will be retained. Mr. Payton stated the only issue is the interest, they have already agreed to the $50,000. Mr. Biagetti stated the signs were around $20,000 each a couple years ago, it could be right at $50,000 but ideally we would have the interest as well for additional costs. On MOTION by Mr. Payton seconded by Mr. Warren with all in favor Resolution 2023-07 was approved in substantial form and the chair was authorized to work with staff on the amounts. B. Outdoor Fitness Stations Mr. Payton stated originally Matt told me that someone has asked for an outdoor fitness station. Mr. Biagetti stated I do not have that pricing. We had one request for a six-person station, I will group a couple things together to get a better idea of here is a large piece that should cost DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 4 around $5,000, single stations $1,500. That might give us a better idea. We have the package prices of what was put together and we have to figure out what they are. I have had no further requests. Mr. Payton stated let’s try to give some direction to them. There are two options, we could put equipment out there in one location or we could put one piece of equipment in numerous locations. We can have Matt work with the vendor and bring back a couple options or we can table it. Ms. Osbeck asked is there a cost difference? Mr. Payton stated I think it is about the same. Mr. Biagetti stated the trend has changed from having equipment in different locations, it is suggested to make it a destination, all in one spot. Mr. Warren asked have we identified an area to have it in one spot? Mr. Biagetti stated we have the lake park, there is an open space by the playground area. Mr. Payton stated we will try to bring back next time proposals for one location. C. Amenity Center Policy Ms. Giles stated we added the language for the soccer field and if the board is satisfied with that language we can accept the facility policy and post it to the website unless there are any other changes. Mr. Payton stated the is the only change you made, right? Ms. Giles stated previously we had made changes to the rates and added the suspension and termination rules in December. It is just the first sentence on our guest policy on PDF page 28. On MOTION by Mr. Payton seconded by Mr. Warren with all in favor the amenity center policy was approved as presented. FIFTH ORDER OF BUSINESS Consideration of Proposals for Golf Cart Lease or Purchase Mr. Hahn stated we have had discussions with a few board members and Chris. We got the RFP out for the golf lease, EZ-GO was the only one that submitted a proposal. This morning we received one from Club Car and the quotes are much higher than we have paid in the past. I DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 5 don’t think we are comfortable with just the one bid, we talked about the possibility of putting out another RFP. Based on the fact that the prices came back so much higher it would be in our best interest to do that. Once we saw the increase in price I reached out to three other Troon properties in Florida that have just done bids for carts like we have. They didn’t necessarily want me to give the cost away but the cost of one of the fleets done in 2021 with end of 2022 delivery for the same 75 carts was about $1,000 a month less than our bid that came in. The two bids in 2022 and received them late 2022 and early 2023, the cost from EZ-GO and Club Car were consistent with the price we received from EZ-GO. I’m confident we will get bids from Club Car and EZ-GO and I can work with Katie on changes in the RFP and look at a 54-month and 60-month lease term, not 48 like we did. That will help lower the cost per month and keep in mind the lithium batters are guaranteed for five years. Mr. Payton stated unless there is any objection from the board we will rebid the cart fleet. On MOTION by Mr. Payton seconded by Mr. Warren with all in favor the bid for the cart fleet from EZ-GO was rejected for lack of competition and staff was authorized to republish the RFP as amended to extend the lease duration. SIXTH ORDER OF BUSINESS Discussion of Golf Course Equipment Lease Mr. Hahn stated I haven’t gotten any additional information from Katie. Mr. Haber stated she mentioned that the board has already authorized an RFP and her recommendation was in light of redoing the RFP on the carts that you time the RFP on the equipment, that way you can get proposals on both issues at the same time. Katie will get that to you. Mr. Hahn stated the equipment production is still slow anywhere from 8 – 10 months, but our equipment is not falling apart so I’m not worried about delivery. I have budgeted for the replacement starting in October so there could be some savings in our budget. SEVENTH ORDER OF BUSINESS Ratification of Audit Engagement Letter for Fiscal Year 2023 DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 6 On MOTION by Mr. Payton seconded by Mr. Warren with all in favor the engagement letter with Berger Toombs to perform the fiscal year 2023 audit was ratified. EIGHTH ORDER OF BUSINESS Consideration of Resolution 2023-06 Approving the Proposed Fiscal Year 2024 Budget and Setting a Public Hearing Date to Adopt Mr. Haber gave an overview of the Resolution 2023-06 and the budget process and stated if the budget is going to result in an increase to assessments then between today and at least 20 days prior to the date of the public hearing, the district will need to both publish and mail to the entire community notices that there is going to be two hearings, the budget hearing and assessment hearing and the amount those assessments may increase, then 60+ days from today you will hold the budget and assessment hearing at which time you will make the final decision on your adopted budget and assessments. Ms. Giles reviewed the changes in the general fund budget and stated the overall assessment increase is $60 to the overall budget, general fund, rec fund, golf fund, capital reserve fund and the total assessments for the residents. Mr. Payton stated consistent with board discussion the last fiscal year we decided to increase assessments by $60 that year and the next three years and this budget includes that $60, which is $5 per month per lot. Mr. Hahn reviewed the golf budget and projected increase in line items including salaries impacted by the minimum wage increase. On MOTION by Mr. Warren seconded by Mr. Payton with all in favor Resolution 2023-06 approving the proposed fiscal year 2024 budget was approved in substantial form. NINTH ORDER OF BUSINESS Consideration of Conveyance of Common Area Tracts This item tabled to give staff an opportunity to visit each parcel to check the condition of each tract and to contact the developer and request a warranty deed in place of the quit claim deed. TENTH ORDER OF BUSINESS Consideration of Resolution 2023-07 Recognizing the Contribution of DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 7 Infrastructure Improvements in Lieu of the Payment of Capital Assessments This item taken earlier in the meeting. ELEVENTH ORDER OF BUSINESS Staff Reports A. General Manager - Report A copy of the operations report was included as part of the agenda package and included the operations of the amenity center, athletic center, tennis facility, golf and clubhouse operations, common areas and retention ponds and landscaping. B. District Counsel Mr. Haber stated a bill passed that was recently signed by the governor that is going to obligate each of you starting in 2024 to take four hours of ethics training. Our office is looking into how you can fulfill that obligation and Katie will keep you in the loop. Mr. Hahn stated we have the new law going into effect about kids driving golf carts and we are going to change our policies to fit that new guideline. Mr. Heintzman stated it is a 15 year old with a learner’s permit accompanied by an 18 year old or older person in the cart or a 16 year old with a drivers license. C. District Manager There being none, the next item followed. D. District Engineer There being none, the next item followed. TWELFTH ORDER OF BUSINESS Supervisor’s Requests Additional items: Old golf course equipment not being used to be auctioned or donated and listed on a resolution deeming it surplus, waiting on results of soil samples taken on the island, goals for marketing plan and goals for golf course, goal of increased assessments, budget presentation on high level basis rather than line item, set goals in matrix for number of rounds in prime time, bids for pickleball court, more special events at restaurant on holidays, better marketing for events, have rangers out later on Monday and Tuesday, get pricing for cameras on DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 8 golf course to deter vandalism, safety issues with kids walking on golf course, suspend amenity privileges of people/children cutting across golf course, work with management to establish membership committee, kickoff meeting for golf membership, policy for sports teams, solar powered speed warning signs placed in problem areas, goals for golf course document. THIRTEENTH ORDER OF BUSINESS Audience Comments Additional items: HOA board and CDD board need comprehensive plans for traffic calming, speeding and engage homeowners in the conversation, establish goals and responsibilities for sports pros, FOURTEENTH ORDER OF BUSINESS Financial Reports A. Balance Sheet as of April 30, 2023 and Statement of Revenues and Expenses for the Period Ending April 30, 2023 The balance sheet and income statement were included as part of the agenda package. B. Assessment Receipt Schedule The assessment receipt Schedule was included as part of the agenda package. C. Approval of Check Register On MOTION by Mr. Payton seconded by Mr. Warren with all in favor the check register was approved. FIFTEENTH ORDER OF BUSINESS Next Meeting Scheduled for Tuesday, July 11, 2023 at 6:30 p.m. at Eagle Landing Residents Club Ms. Giles stated the next meeting will be held July 11, 2023 at 6:30 p.m. in the same location. On MOTION by Mr. Payton seconded by Mr. Warren with all in favor the meeting adjourned at 8:06 p.m. DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4 June 6, 2023 South Village CDD 9 Secretary/Assistant Secretary Chairman/Vice Chairman DocuSign Envelope ID: 38972332-E9BE-41F9-9D8E-B28A7E48A1E4