MINUTES OF MEETING BANNON LAKES COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Bannon Lakes Community Development District was held on Wednesday, May 3, 2023 at 1:00 p.m. at the World Golf Village Renaissance Hotel, 500 S. Legacy Trail, St. Augustine, Florida. Present and constituting a quorum were: Art Lancaster Chairman John Dodson Supervisor Chris d’Aquin Vice Chairman Chris Hill Supervisor Michael Sheldon Supervisor Also present were: Jim Oliver District Manager Wes Haber by phone District Counsel Denise Powers Amenity Manager Howard McGaffney GMS Dave Jackson Landcare Group Matt Speckman Landcare Group FIRST ORDER OF BUSINESS Roll Call Mr. Oliver called the meeting to order at 1:00 p.m. Five members of the Board were present constituting a quorum. SECOND ORDER OF BUSINESS Public Comment Mr. Oliver noted this is the public’s opportunity to make comments on items that were on this agenda. There being no public comments, the next item followed. DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284 May 3, 2023 Bannon Lakes CDD 2 THIRD ORDER OF BUSINESS Affidavit of Publication Mr. Oliver noted that there would be a public hearing today to consider rule making regarding parking areas within the District and a tow policy related to unauthorized parking. He added they met requirements by publishing the meeting in the St. Augustine Record on April 4, 2023 and April 5, 2023 FOURTH ORDER OF BUSINESS Approval of Minutes of the February 15, 2023 Meeting Mr. Oliver presented the meeting minutes from the regular February 15, 2022 Board of Supervisor’s meeting. He noted he had received some revisions from Mr. d’Aquin and those corrections will be made. Mr. Lancaster asked if Mr. Haber had reviewed the minutes. Mr. d’Aquin stated he had reviewed and noted that questions and comments were included in the minutes. Mr. Haber was good with the changes. On MOTION by Mr. Lancaster, seconded by Mr. d’Aquin, with all in favor, the Minutes of the February 15, 2023 Board of Supervisor’s Meeting, were approved as amended. FIFTH ORDER OF BUSINESS Public Hearing A. Consideration of Resolution 2023-07, Adopting Rules Regarding Overnight Parking and a Traffic Enforcement Towing Policy Mr. Haber presented an overview of the resolution that had been discussed at prior meetings. He noted the Board had expressed a desire for towing on overnight parking in the amenity facility parking lot. He added there is a requirement for the process of approval of these changes. He added the Board could make changes to the draft copy and after the public hearing they could approve the final resolution. Ms. Powers commented that she would like the ability to have a towing company approved by the Board so she could tow as needed. She added she is the sole person on property and would be the one to authorize the towing. A question was asked on how to manage overnight camping. Ms. Powers noted she had that issue one time and she called the sheriff’s office. She added she wanted the community to let her know of incidents by email or by calling her number. The Board asked if Ms. Powers had any bids. She replied the company will put up signs about towing and there is no cost to the Board. The times for gym opening were DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284 May 3, 2023 Bannon Lakes CDD 3 clarified as 4:00 a.m. until 11:00 p.m. Further discussion ensued on towing, notice signs, monitoring, policy, notice to homeowners of new requirements. Mr. Oliver asked for a motion to open the public hearing. On MOTION by Mr. d’Aquin, seconded by Mr. Dodson, with all in favor, Opening the Public Hearing, was approved. Mr. Oliver asked for any comments from the audience for the Board. Comments were made about parking warnings and Ms. Powers explained the process of having 24 hours to move before towing. Hearing no other comments, Mr. Oliver asked for a motion to close the public hearing. On MOTION by Mr. d’Aquin, seconded by Mr. Dodson, with all in favor, Closing the Public Hearing, was approved. Mr. Oliver asked for a motion to adopt Resolution 2023-07 Adopting rules regarding overnight parking and a traffic enforcement towing policy. On MOTION by Mr. d’Aquin, seconded by Mr. Hill, with all in favor, Resolution 2023-07, Adopting Rules Regarding Overnight Parking and a Traffic Enforcement Towing Policy, was approved. SIXTH ORDER OF BUSINESS Consideration of Resolution 2023-08, Adoption of Record Retention Policy Mr. Haber presented the resolution to adopt a record retention policy. He referred to the memo from his office and noted the District Manager serves as the custodian of records. He reviewed the two options available. Option 1 provides for records to be kept in accordance with Florida and federal law and can be destroyed when the District chooses. Option 2 is to retain until the Board gives direction to destroy. He went over the new issues regarding this law which outlines records that can be destroyed when they no longer serve a purpose, and the other matter is records are converted into an electronic copy of a document and the hard copy can be destroyed by GMS. He recommended the Board adopt Option No. 2, which is GMS’s preference. DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284 May 3, 2023 Bannon Lakes CDD 4 On MOTION by Mr. Dodson, seconded by Mr. d’Aquin, with all in favor, Resolution 2023-08, Adoption of a Record Retention Policy with Option B, was approved. SEVENTH ORDER OF BUSINESS Review of Fiscal Year 2024 Proposed Budget (Provided Under Separate Cover) Mr. Oliver stated there would be a budget hearing in August and they have about three months to refine the budget. He added the proposed budget had a statutory approval deadline of June 15th. He stated that the proposed budget includes a higher assessment but may be lowered somewhat through the reduction of line items and discussion of potential developer contributions. He discussed the any budget surpluses are carryovered to the next year, impacts of higher inflation ove the last two year, added platted lots, increased operational costs, and community facilities assets showing age, requiring more maintenance. He noted this CDD had never had an assessment increase. Mr. Oliver stated the proposed budget has 6 months’ worth of data and reviewed the tables reflecting the proposed assessment schedule. He added for the per unit assessment for the 823 platted lots would go from $830 to approximately $950, which is a 14.5% increase. Mr. Oliver suggested the Board approve the budget without the developer contributions while they continue to work on the budget. This would be approving a high-water mark. The question was asked about actuals from $19,000- $28,000 in insurance. Other anticipated increases were discussed. It was clarified the final adoption would be in August. Mr. Oliver noted they would continue to shop the market with other insurance providers who specialize in governmental entities. Further discussion ensued on facility management costs, repairs and maintenance, and the capital reserve amount. Mr. Oliver noted the capital reserve had not been increasd in this budget which is at $96,000 currently. The expense of $76,000 was discussed for this year. Mr. Oliver noted he had sought a proposal for a capital reserve study which will outline the next 30 years of projected costs for repairs and replacement of District-owned capital assets. Ground maintenance had several increases. Ms. Powers noted the ground maintenance was help for her with the facility general maintenance. Discussion ensued on the District contemplating the purchase of a golf cart for staff to assist in covering the grounds, exploring costs and insurance, and liability issues, room in the storage room, and Fire Marshall inspections. DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284 May 3, 2023 Bannon Lakes CDD 5 Mr. d’Aquin discussed the issue on assessments from 2023 fiscal year at $573,000 and the expected assessments of $734,000 which is $160,000 increase, but the capital reserve contribution being $3,084. He noted that was $160,000 worth of increase and expenses. Mr. Oliver noted the reason for the assessment level increase is higher per unit and more platted lots. It was asked if this includes Phase 2. It was noted the platted lots were confirmed. Another question was asked if discounts and collections at a steady 6% or are we showing lower. Mr. Oliver noted it was 6%. He noted the consideration of the resolution would approve the budget without the use of developer contributions so it can be set at the highest assessment rate and then they can work down. EIGHTH ORDER OF BUSINESS Consideration of Resolution 2023-09, Approving the FY 2024 Proposed Budget & Setting a Public Hearing Date for Adoption Mr. Oliver asked for a motion to approve the Fiscal Year 2024 budget and setting the public hearing for adoption on August 2, 2023 at 1:00 p.m. in the same location. On MOTION by Mr. Lancaster, seconded by Mr. Dodson, with all in favor, Resolution 2023-09, Approving the FY 2024 Proposed Budget & Setting the Public Hearing Date for August 2, 2023 at 1:00 p.m. in the Same Locations, was approved. NINTH ORDER OF BUSINESS Ratification of Approval for Main Line Repair by Landcare Group Inc. Mr. Oliver noted the Chairman had discussed this repair with the developer of the commercial area. Discussion ensued on it being moved, the easement, the ease of access for maintaining, main line irrigation, water management process, ponds and drainage, design, and surface water. On MOTION by Mr. d’Aquin, seconded by Mr. Hill, with all in favor, the Main Line Repair by Landcare Group, Inc., was ratified. TENTH ORDER OF BUSINESS Other Business There being no comments, the next item followed. DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284 May 3, 2023 Bannon Lakes CDD 6 ELEVENTH ORDER OF BUSINESS Staff Reports A. Attorney Mr. Haber stated there was nothing further to report. The Board asked for any updates on the current legislature. Mr. Haber responded there was nothing notable yet, but there were a number of bills that may potentially impact CDDs and Board members. He explained one debate was CDD members being required to undergo additional ethics training. He added at this point it has not passed. He stated there are laws addressing amenity facility and WIFI and ensuring websites are not accessible to foreign countries, called the Tik Toc Bill. B. Engineer – Ratification of Series 2021 Requisitions No. 42-44 Mr. Oliver presented requestions No. 42-44 which have been processed. They were verified by the Engineer and executed by the Chairman. On MOTION by Mr. Lancaster, seconded by Mr. d’Aquin, with all in favor, the Series 2021 Requisitions No. 42-44, were ratified. C. District Manager Mr. Oliver stated the number of registered voters in the District was at 1,078. It was asked about the fall general election and Mr. Oliver noted the general election will not be until 2024. He explained the process when a District reaches 6 years of age from establishment, plus 250 registered voters, the process of transitioning to general election. Bannon Lakes has started this process. D. General Manager – Report Ms. Powers presented the report on landscape projects, traffic control/ patrols for 3-3/12- hour shifts and fees, number of traffic stops reported, average speed, umbrella damage and repair. The Board asked for a traffic report to have published to the community and communications with neighborhood regarding speeding and a notice of taking care of assets. She also noted the landscape updates, mulching completed, pool lights replaced, bike rack proposal, adding bus stop locations up to 5 locations from 3. The Board questioned the number and noted it was felt that more racks are needed. Bike rack locations and safety issues were discussed. Bus stops for the community and the growth for more needed. Ms. Powers discussed the community events. DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284 May 3, 2023 Bannon Lakes CDD 7 The Duran Drive grass and irrigation projects were discussed. Vegetation removal and replacement were discussed by Mr. Speckman and Mr. Jackson. They discussed options and costs for replacement for shrubbery or trees. Locations for adding irrigation were outlined. Expectations for the area was discussed for landscaping, bike rack, bus stops, and benches. A potential park for the area was mentioned. The Board asked for a timeline and completion date. It was noted it would depend on sod, but other parts could be finished quickly. It was noted to start while school is out the first of June. Mr. Oliver noted there were funds in capitol reserve for this project. The proposal specifics were reviewed, and the Board was asked for approval of $13,902. On MOTION by Mr. d’Aquin, seconded by Mr. Dodson, with all in favor, the Landscape Proposal for the Community Area at Duran Drive for $13,902, was approved. Ms. Powers mentioned the benches and it was noted residents had asked about bench installment. Further discussion ensued on destruction of benches, removal reasons, usage of benches, and possible locations for new benches. The Board asked Ms. Powers to determine a bench location for a test location and complete the purchase of one bench. TWELFTH ORDER OF BUSINESS Audience Comments There were no audience comments at this time. THIRTEENTH ORDER OF BUSINESS Supervisor’s Requests There were no Supervisor requests. FOURTEENTH ORDER OF BUSINESS Financial Reports A. Balance Sheet and Statement of Revenues & Expenditures for the Period Ending March 31, 2023 Mr. Oliver presented the unaudited financial through March 31, 2023. The Board had no questions. B. Assessment Receipt Schedule Mr. Oliver stated that the CDD is 95.85% collected. DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284 May 3, 2023 Bannon Lakes CDD 8 C. Approval of Check Register Mr. Oliver noted that the check register required Board approval. On MOTION by Mr. Lancaster, seconded by Mr. d’Aquin, with all in favor, the Check Register, was approved. FIFTEENTH ORDER OF BUSINESS Next Scheduled Meeting – August 2, 2023 @ 1:00 p.m. at the World Golf Renaissance Hotel, 500 S. Legacy Trail, St. Augustine, FL 32092 Mr. Oliver stated the next scheduled regular meeting date would be August 2, 2023 at 1:00 p.m. at the World Golf Renaissance Hotel, 500 S. Legacy Trail, St. Augustine, FL 32092. He noted this meeting would be the public hearing for the approval of the FY 2024 Budget. SIXTEENTH ORDER OF BUSINESS Adjournment The meeting was adjourned. On MOTION by Mr. d’Aquin, seconded by Mr. Lancaster, with all in favor, the Meeting was adjourned. _______________________________ _________________________________ Secretary / Assistant Secretary Chairperson / Vice Chairperson DocuSign Envelope ID: 49B25A43-07BD-4112-9A4A-B4EF9645B284