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, January 9, 2024 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 Allan Brink Supervisor David Frechette Supervisor Jennifer Osbeck Supervisor Also present were: Marilee Giles District Manager Katie Buchanan District Counsel by telephone Alex Acree District Engineer by telephone Matt Biagetti Director of Operations, Honours Golf Jim Hahn General Manager, Honours Golf Josh Heintzman Golf Professional, Honours Golf Joe Halifco Operations, Honours Golf Eight Residents The following is a summary of the actions taken at the January 9, 2024 meeting. FIRST ORDER OF BUSINESS Roll Call Ms. Giles called the meeting to order at 6:35 p.m. and called the roll. SECOND ORDER OF BUSINESS Audience Comments Mr. Antonacci stated item five is my proposal and I would like to table that for any discussion until a future date. Mr. Dye stated if there were a way to get an executive summary of the budget I would find that very helpful. DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF January 9, 2024 South Village CDD 2 THIRD ORDER OF BUSINESS Approval of the Minutes of the November 7, 2023 Meeting On MOTION by Mr. Brink seconded by Mr. Payton with all in favor the minutes of the November 7, 2023 meeting were approved as presented. FOURTH ORDER OF BUSINESS Discussion of Capital Reserve Study Ms. Giles stated this came up at the last meeting. We have capital reserve studies for the golf course and one for the community, both are dated 2018. Tonight, the discussion is whether or not the board wants to have a more current capital reserve study done for both. The current studies are based on inflation from 2018. Mr. Payton stated I think we should move forward with the proposal for budgeting purposes. On MOTION by Mr. Payton seconded by Mr. Warren with all in favor staff was authorized to solicit proposals to update the capital reserve study. FIFTH ORDER OF BUSINESS Consideration of Proposals to Purchase South Village CDD Common Vacant Land for Personal Residential Use Ms. Giles stated on your table and also emailed to you is a request from a resident interested in purchasing the welcome center. Mr. Antonacci stated the letter I provided is self-explanatory, I’m trying to find someplace in the neighborhood where I can build or modify or whatever a larger home for my family. This is my latest proposal. Mr. Payton stated we aren’t talking about you buying from us. Mr. Antonacci stated I’m looking into this. I know there are a lot of issues that overlap between the CDD and the owners of that property. I’m presenting myself as a cooperative, collaborative person to hopefully do some business with to make that an area in the neighborhood that is beneficial to both parties. Mr. Payton stated from my standpoint it doesn’t make a lot of sense for me to have someone living there in a single-family home. There is a lot of interaction between the district and that DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF January 9, 2024 South Village CDD 3 building. It is right next to the pool, right next to the cabana bar. That place is loud and with some rough language sometimes. The District is still looking to purchase that property as well from the developer. I have concerns about the parking lot. I would also be concerned that you would be in the meeting frequently with concerns about district activities going on right next to your home. It is very expensive to move the equipment in the building, which is why it is still in that building today. Mr. Antonacci stated the CDD does not have sole rights to purchase that building. The building itself is zoned for residential and commercial. If a private investor purchases that property you could end up with almost anything. I’m coming to the board saying a as a resident I have a vested interest in this community, I understand the risks of activities that are going on in that area. I presented some ideas of what I think would work to make it a residential area, but if someone came in and makes an offer that was accepted before you go to them, it would be a very different discussion between whoever that entity was and the CDD. I thank you for your consideration. Mr. Warren asked Katie can look into that for us. I can’t imagine that property not coming with a lot of easements and stuff like that. I think where you are showing the property line it is cutting off the walkway. We need to check to see who has rights to the parking lot. SIXTH ORDER OF BUSINESS Consideration of Tennis Policy Mr. Biagetti stated staff felt this was in line with numerous other clubs throughout the area. We have multiple teams and leagues that play tennis at Eagle Landing and we have always accepted Oakleaf residents as part of our own so we can build teams and have teams for our residents to be able to play. We implemented at the beginning of the sign-ups a $30 non-resident fee to Eagle Landing for residents that live outside Eagle Landing and Oakleaf and we are asking the board for approval. Mr. Brink stated I am against this policy. My wife captains five leagues and there has been a ripple effect already. A lot of people are not signing up for future leagues because they play in various leagues. If they play on three or four other leagues that is $100 and that is why people are dropping out and with that there are not enough people to fill out the roster so we would have to move our leagues elsewhere. Mr. Payton stated the other places they go to also charge. Mr. Brink stated yes. DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF January 9, 2024 South Village CDD 4 Mr. Payton stated right now we are being taken advantage of because we don’t normally charge a fee and that resulted in entire teams of mostly non-residents. We should get some money back; we all paid to build and maintain the facilities and it is very nice and I have heard some have concerns about paying the $30. Where are they going to go? Everyone is charging $25 to $30. Ms. Giles asked would we have to have a rate hearing for that? Ms. Buchanan stated yes to incorporate a new rate into our policy. We can see whether you have a promotional rate provision, which would allow you to implement it immediately. Mr. Payton stated we already have a guest fee policy. Ms. Giles stated on the last page of the amenity facility policy there is a promotional policy listed. Ms. Buchanan stated we can use that. I believe it is intended to be temporary so we would want to go through the rate-making process, but you could rely on that for now. On MOTION by Mr. Payton seconded by Mr. Warren with four in favor and Mr. Brink opposed, the promotional policy was accepted as written and staff was authorized to notice a ratemaking hearing. SEVENTH ORDER OF BUSINESS Staff Reports A. General Manager 1. Report Mr. Hahn stated I want to recognize Josh and his tenure here at Eagle Landing. Josh has decided to move on with his career at another Troon property by his hometown. We thank him for the many years he was here and wish him the very best. We found one of the pumps for the waterfall had a bad starter and we should be in good shape once that starter is installed. The bonus scorecard you created we want to take time to look at the redundancy on the restaurant side with whoever you choose to do so. Mr. Payton stated I will be happy to work with you. Mr. Hahn stated the last quarter of 2023 we recognized two staffers one from food and beverage and one from the golf side, Tabitha Hay and Denver Torruella. I gave the board members a spreadsheet for funding. As you know all the assessments from golf from the community went into the capital reserve fund and we talked about a request for DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF January 9, 2024 South Village CDD 5 funding each quarter if there is needed funding. There are also expenses that are paid upfront such as insurance, prepaid chemicals and taxes. We are requesting funding of $155,328 to go into the golf fund. Once we get into March, April, June there should be a positive cash flow and no need for a funding request. On MOTION by Mr. Payton seconded by Mr. Warren with all in favor a transfer from the general fund into the golf fund of $155,328 was approved. 2. Consideration of Top Tracer Mr. Hahn stated we are looking in detail to come up with some firm numbers for the first tee or top tracer project we are looking at. Mr. Warren stated I think this is a positive for the neighborhood, we need to find another revenue stream. We have a lot more groundwork to do because it would be a major investment. 3. Consideration of 2nd Quarter Assessments for Golf and Rec Mr. Hahn stated I asked staff to put together prices of other golf courses and we are by far the lowest priced golf course by over $1,000. The courses we are talking about are Bank Creek, Eagle Harbor, St. Johns, South Hampton, Queens Harbor, Fleming Island and Magnolia. Bank Creek on average is $3,600 to be a member where our single members pay $2,500 and a cart fee. St. Johns is $3,500 for a single with $1,400 trail fees. South Hampton is about $6,000 with the membership fee and trail fee. We average $3,600 a year between membership and trail fee. I hate to see rates go up but fair is fair. Every player I have talked to who is a regular player does not want to lose Saturday mornings once a month which may be where we have to eventually head as revenue continues to go up. We were $60,000 short and it is clear we can fix it if we became competitive. Other clubs have $3,000 to $4,000 initiation fees; ours is $1,000. I think it is reasonable to increase membership, value of that membership, but to do that we need to be at a price point to generate revenue. For every nine who says they are on board to make sure they have access to their course and want to make sure we continue to improve it that they are okay with the increase. I do come across a few who say they don’t want to see rates go up. DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF January 9, 2024 South Village CDD 6 After further discussion the board agreed to increase the rate of a resident single to $250 per round and resident family $250 per round and 25% for non-residents to be effective the next billing period. B. District Counsel – Memorandum Regarding Ethics Training A copy of the memorandum regarding ethics training was included in the agenda package. C. District Manager Ms. Giles stated this ethics training you will be doing you will report it on the 2025 form 1 and you may have received an auto-generated email from the State of Florida Commission on Ethics. It looked generic and auto generated, if you didn’t get this or it doesn’t sound familiar, check your spam or junk folder. I did as it requested and created a registration and account and as I did that all my previous form 1s were there. It wasn’t complicated and I was able to log out and back in and once you are done you just hit submit and sign button and it is due by July 1st. When you are doing your form 1 this year you don’t have to check the box that you did the ethics training. The ethics training you do in calendar year 2024 will be reported on your form 1 next year. D. District Engineer There being none, the next item followed. EIGHTH ORDER OF BUSINESS Supervisor’s Requests Additional comments: Notification of evaluation, ongoing evaluation has value and will be reported to the board members, three pieces left from auction that will be disposed of, advertising of fence, New Year’s event charge, based on turnout maybe a different idea for next year, make the New Year’s event a winter social, insurance for fireworks, evaluate hosting tennis tournament, sheriff’s representatives will attend February meeting, pickleball revenue share, sales center priced at $750,000, developer willing to work with the district on terms and conditions that will be presented at a future meeting, possible uses of sales center, items to be addressed on golf course: tees, tee markers, sand dispenser on par 3, issues with not filling holes, starter still changing the numbers, single cart usage with no receipt, keys in golf carts, maintenance on no. 5, DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF January 9, 2024 South Village CDD 7 neighborhood signs, annuals, weight room issues, log for users to report issues, better communication on events, cancellations and closings. NINTH ORDER OF BUSINESS Audience Comments Additional comments: Eagle Landing has a golf team, events happen at 14 golf clubs and next Monday there will be 13 other clubs plus Eagle Landing representing 114 golfers, sent capital requirements before the CDD bought it, capital reserve fund, staff at restaurant do an excellent job of serving, more robust enforcement of no smoking policy needed, range of prices for top tracer, do market research before investing in top tracer, break even on being open additional hours, 22 parking spots come with the sales center, request for executive summary of the budget, better communication about the budget. TENTH ORDER OF BUSINESS Financial Reports A. Balance Sheet as of November 30, 2023 and Statement of Revenues and Expenses for the Period Ending November 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. ELEVENTH ORDER OF BUSINESS Next Meeting Scheduled for Tuesday, February 6, 2024 at 6:30 p.m. at Eagle Landing Residents Club Ms. Giles stated the next meeting is scheduled for February 6, 2024 at 6:30 p.m. back at the Eagle Landing Resident’s Club. On MOTION by Mr. Warren seconded by Mr. Payton with all in favor the meeting adjourned at 8:33 p.m. DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF January 9, 2024 South Village CDD 8 Secretary/Assistant Secretary Chairman/Vice Chairman DocuSign Envelope ID: DC5F1B2C-15ED-45F4-AB7F-D1EFE2980FBF