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, August 7, 2024 at 6:00 p.m. at the World Golf Village Renaissance Hotel, 500 S. Legacy Trail, St. Augustine, Florida. Present and constituting a quorum were: Michael Sheldon Chairman Chris d’Aquin Vice Chairman Kim Crenier Supervisor Sandy Gehring Supervisor Also present were: Jim Oliver District Manager Wes Haber by phone District Counsel Jeff Johnson RMS Diana Lambert RMS FIRST ORDER OF BUSINESS Roll Call Mr. Oliver called the meeting to order at 6:00 p.m. There were two Supervisors present at roll call due to two resignations that were received before the Board meeting. SECOND ORDER OF BUSINESS Public Comment Mr. Oliver noted this was the public’s opportunity to make comments on items that were on this agenda. Hearing no comments, the next item followed. THIRD ORDER OF BUSINESS Organizational Matters B. Appointment of New Supervisor(s) to Fill Unexpired Term of Office (11/24) Mr. d’Aquin nominated Kim Crenier to fill Seat 1. Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 2 On MOTION by Mr. d’Aquin, seconded by Mr. Sheldon, with all in favor, Appointing Kim Crenier to the Board of Supervisors, was approved 2-0. Mr. Oliver administered the oath of office to Kim Crenier. Mr. Sheldon nominated Sandy Gehring to fill Seat 3. On MOTION by Mr. Sheldon, seconded by Mr. d’Aquin, with all in favor, Appointing Sandy Gehring to the Board of Supervisors, was approved 3-0. Mr. Oliver administered the oath of office to Sandy Gehring. Mr. Oliver noted that Seat 2 remained vacant. This seat was formerly held by Chris Hill of Pulte. He also noted that Seat 4 will become vacant upon sale of home and move out of the CDD by Chris d’Aquin. A. Acceptance of Resignation from Supervisor Dodson & Supervisor Lancaster Mr. Oliver presented the resignations from Supervisor Dodson and Supervisor Lancaster to the Board. The Board motioned to accept the resignations. On MOTION by Mr. Sheldon, seconded by Mr. d’Aquin, with all in favor, Accepting the Resignations from Supervisor Dodson and Supervisor Lancaster, was approved 4-0. C. Oath of Office for Newly Appointed Supervisor(s) Mr. Oliver briefly reviewed the Sunshine Law and the Public Records Law with the newly appointed Supervisors. He noted he will review the other required documents with the newly appointed Supervisors after this meeting. Mr. Haber reviewed the Code of Ethics and further explained the Sunshine Law and the Public Records Law with Ms. Crenier and Ms. Gehring. D. Election of Officers, Resolution 2024-04 Mr. Oliver presented Resolution 2024-04 to the Board. Mr. Sheldon was appointed to serve as Chairman, Mr. d’Aquin as Vice Chairman and the other two new Supervisors will be Assistant Secretaries. Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 3 On MOTION by Mr. d’Aquin, seconded by Mr. Sheldon, with all in favor, Election of Officers, Resolution 2024-04, was approved 4-0. FOURTH ORDER OF BUSINESS Approval of Minutes of the May 1, 2024 Meeting Mr. Oliver presented the meeting minutes from the regular May 1, 2024 Board of Supervisor’s meeting. On MOTION by Mr. d’Aquin, seconded by Mr. Sheldon, with all in favor, the Minutes of the May 1, 2024 Board of Supervisor’s Meeting, were approved 4-0. FIFTH ORDER OF BUSINESS Fiscal Year 2025 Budget A. Overview of Budget Mr. Oliver discussed the budget process and how it works. He explained that as a CDD, they are required to approve a budget by June 15 of each year and set a public hearing no sooner than 60 days after the budget has been approved, which they have done both. When they approved the budget at their May meeting, an increase in assessments was forecasted. But through discussion, the Board landed on a budget that would keep per unit assessments the same. He pointed out that there is budget growth that occurred, but that has been taken out by the additional platted lots that the District has now. Mr. Oliver reviewed the assessment table on the last page of the budget. They focused tonight on the O&M budget. He noted there is nothing they can do with the debt service budget tonight. In the annual maintenance assessments, the current assessment for FY 2024 showed $1,001.98 and it drops to $1,000.55 for FY 2025, which is a very slight reduction in the assessment. He pointed out that the most important thing is that there is not an increase in the budget. Mr. Oliver pointed out that this is not a use-it or lose-it budget. He explained that anything that this Board is able to save the District through good stewardship, remains with the District. He also pointed out that anytime during the budget hearing, they can amend the budget as well as move money among line items. Mr. Sheldon asked Mr. Oliver to explain how he came to this particular budget. Mr. Oliver explained that one thing they look at is the actuals. They adopted a budget this time last year for the FY 2024 budget. He stated as they look through the budget as Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 4 things are executed through the year, they can see whether or not they are meeting those targets and if they’re likely to go over for the next year. Mr. Oliver stated the four main budgets that are part of this document are the general fund (operations and maintenance budget), some line item narratives, which is followed by the debt service budget for the Series 2016, 2021 and 2022 bonds. He explained that the bonds were issued in individual series as the phases of the development were built. He noted that these debt service funds, when they have the assessment hearings for each of those when the bonds were issued, they set what the assessments were. Those assessments are now at a fixed rate. He pointed out that it could be that once they hit the ten year call period, they are in a position to refund or refinance those bonds at a lower rate. They will be approaching that in a couple of years for the 2016 funds. Right now, the debt service consist of collecting assessments, paying down debt, and making the annual principal payment and the two semi-annual interest payments that are made on November 1st and May 1st. He explained that as those collections are made through the county tax collectors, they come to their office, they are deposited into the general fund as well as those three debt service fund. He added that the Trustee, Bank of New York, are the ones that make the payment to the bond holders. He reviewed the capital reserve fund stating they are starting to build the capital reserves, so they have money for repairs and replacements of their capital assets of the District. The assessment schedule was already discussed. The budget was reviewed and discussed. B. Public Hearing on Adopting the Budget for Fiscal Year 2025 Mr. Oliver asked to open the public hearing for public comment. On MOTION by Mr. Sheldon, seconded by Ms. Crenier, with all in favor, Opening the Public Hearing, was approved 4-0. Mr. Oliver asked for public comments to the Board regarding the budget. A member of the public asked for an explanation of the new cameras and what is going on with that. Mr. Oliver asked this member of the public to hold this question because they are going to discuss this agreement later in this meeting. He did explain that the District contractor with the company that has a camera system that monitors the amenity center in other areas remotely. The member of the public asked about cars sitting in the parking lot after hours and some doing donuts. Mr. Oliver wasn’t sure that this system will help with that situation, but he explained that a lot of Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 5 the Districts in the area contract with St. Johns Sheriff’s Office on an off-duty basis and they can really make an impact. He stated that may be their best solution to a situation like that. A member of the public asked about the parking in the clubhouse area. He explained that through their HOA meetings on their side of the neighborhood, they are encouraging residents that have guests to park in the parking lot overnight because they can’t park in the roads or the streets. Ms. Lambert responded that if people want to park in the parking lot, they have to call her and ask for permission. They have a tow away policy there that if they are there overnight without permission, she can put a sticker on any car that has been sitting there and it can be towed away. Hearing no other public comments, Mr. Oliver asked to close the public hearing. On MOTION by Mr. Sheldon, seconded by Ms. Crenier, with all in favor, Closing the Public Hearing, was approved 4-0. 1. Consideration of Resolution 2024-05, Relating to the Annual Appropriations and Adopting the Budget for Fiscal Year 2025 Mr. Haber presented Resolution 2024-05 to the Board. He stated this is a two-step process. At the prior meeting, they took the first step by approving the proposed budget. That budget was provided to the county 60 days in advance of today’s hearing. This resolution is their formal adoption of the budget. Upon the Board’s passing of this resolution, the budget will be adopted in final form, and it appropriates the funds as set forth in the various line items in the budget. He explained that doesn’t mean that the Board can’t move one line item to another if it becomes necessary later in the year. But this is the budget that when they post on the District’s webpage, people will look to see what the District’s final budget it. He further explained that this Board’s adoption of this budget will be their final action in their formal appropriation and adoption of the dollar amounts in the budget. On MOTION by Ms. Crenier, seconded by Mr. d’Aquin, with all in favor, Resolution 2024-05, Relating to the Annual Appropriations and Adopting the Budget for Fiscal Year 2025, was approved 4-0. Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 6 2. Consideration of Resolution 2024-06, Imposing Special Assessments and Certifying an Assessment Roll for Fiscal Year 2025 Mr. Haber presented Resolution 2024-06 to the Board. He stated this resolution levies the O&M assessments based on the amount of the budget that they just adopted and allocates those assessments across all the platted lots within the community. The debt assessments are already levied, but this resolution certifies for collection both the O&M assessments and debt assessments to the St. Johns County tax collector. This means Mr. Oliver’s office will provide an assessment roll, which is a document that lists all the private property owned within the boundaries of the District, who the property owner is, and the amount that the CDD is assessing for both the debt and the O&M. Those amounts will then appear on the ad valorem tax bill that each of those properties receive in November of 2024. On MOTION by Mr. Sheldon, seconded by Ms. Crenier, with all in favor, Resolution 2024-06, Imposing Special Assessment and Certifying an Assessment Roll for Fiscal Year 2025, was approved 4-0. SIXTH ORDER OF BUSINESS Ratification of Agreement with Envera Systems Mr. Oliver stated two meetings ago, the Board considered a security camera system and monitoring services from two vendors. After both presentations by the vendors, Envera Systems had the lower price and better product. This was executed by the former Chairman. The installation date is mid-September. He stated the highlights of this particular agreement is the discounted price to install the cameras at $16,500, which came down from about $24,000. He noted they will also have a monitoring monthly cost of $582.85 and around $7,000 a year. It monitors just when the facility is closed. On MOTION by Mr. d’ Aquin, seconded by Mr. Sheldon, with all in favor, the Agreement with Envera Systems, was ratified 4-0. Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 7 SEVENTH ORDER OF BUSINESS Ratification of Proposal from Landcare Group for Landscape Maintenance Services Mr. Oliver presented the proposal from Landcare Group for the landscape maintenance services. Counsel will prepare an agreement. On MOTION by Mr. d’Aquin, seconded by Mr. Sheldon, with all in favor, the Proposal from Landcare Group for Landscape Maintenance Services and Directing Counsel to Prepare an Agreement, was ratified 4-0. EIGHTH ORDER OF BUSINESS Discussion of CDD Goals & Objectives Mr. Oliver stated during the last legislative session, the Senate in house approved legislation requiring that special Districts throughout Florida set goals and objectives, review them on a quarterly basis, and provide a report to the legislature at the end of the year what was accomplished. He presented a document showing a number of objectives and goals that are exactly what are required of the District anyway. He explained that they just want to show that they are setting those goals and objectives. On MOTION by Ms. Crenier, seconded by Mr. d’Aquin, with all in favor, the CDD Goals & Objectives, was approved 4-0. NINTH ORDER OF BUSINESS Ratification of Requisitions: A. Series 2021 Requisition (50) B. Series 2022 Requisition (10) Mr. Oliver presented Series 2021 Requisition (50) and Series 2022 Requisition (10) to the Board and offered to answer any questions. After discussion, there was a motion to ratify the requisitions. On MOTION by Mr. d’Aquin, seconded by Mr. Sheldon, with all in favor, the Series 2021 Requisition (50) and Series 2022 Requisition (10), were ratified 4-0. Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 8 TENTH ORDER OF BUSINESS Other Business Mr. Oliver stated there seems to be some information coming out from the HOA that is counter to what the CDD may be saying including overnight parking and perhaps some other security measures. Discussion ensued on alleged HOA guidance to direct neighborhood overflow parking to CDD Amenity Center parking lot, which conflicts with CDD policies. The CDD will seek input from each of the five HOAs and their proposed solutions. ELEVENTH ORDER OF BUSINESS Staff Reports A. Attorney Mr. Haber stated that the two new Board members may hear discussion on the ethics training requirement, but because they weren’t appointed until after March 31, it’s not an obligation they will have for calendar year 2024. But in calendar year 2025, the two new Board members will have the obligation to fulfill the four hours of ethics training. B. Engineer Mr. Oliver noted that there was nothing shared from the engineer today. C. District Manager – Discussion of Fiscal Year 2025 Meeting Schedule Mr. Oliver stated they have the proposed schedule for FY 2025, which follows the old schedule. He noted that they are likely to meet more frequently than this. He added that they don’t need to set the schedule tonight, but if they were to adopt this, they can change it at the next meeting. He suggested having a meeting sometime in September, which can be like a CDD workshop. The public will be welcome to the workshop. The Board agreed for the recording Secretary to contact each of the Supervisors to come up with some date options for the workshop. On MOTION by Mr. d’ Aquin, seconded by Mr. Sheldon, with all in favor, the Fiscal Year 2025 Meeting Schedule, was approved 4-0. D. General Manager – Report Ms. Lambert stated she submitted her report to the Board. She was happy to answer any questions. Mr. d’Aquin asked if the chairs were currently out for repairs now. Ms. Lambert responded that they are currently out for repairs. Mr. d’Aquin asked for an estimate on when they will be returned. Ms. Lambert responded September or October. There was a question about the Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 9 possible addition of a small rental fee for the clubhouse and if this was something they should discuss in the September meeting. Mr. Oliver responded that would be a good time to do it because if they do decide they are going to set fees, that will springboard them to set a public hearing to consider rates. Mr. Johnson presented his report to the Board. He was happy to answer any questions. Mr. Sheldon commented that the awareness to the community that portions of the mitigation land are now under CDD title. He stated they need to take into consideration some of their responsibilities in how the safety and management of the areas exist. The wildlife management was discussed. The question was asked if there is an animal issue in the now owned CDD property, is the remediation now a CDD responsibility as opposed to the individual neighborhoods. Mr. d’Aquin responded that if something is happening on CDD property, it’s the CDD’s responsibility. And if it’s happening within the neighborhoods controlled by the HOA or by the individual resident, then it’s their responsibility. The response was that the wildlife in question doesn’t care what neighborhood it’s in, so who should pay for that. Mr. d’Aquin responded that would be a really good discussion to have. Mr. Oliver responded that a lot of times signage helps. The question was asked if they can address this at the next meeting. Mr. Oliver responded yes. He pointed out that since the District owns the land, they have the authority to take action. A resident asked how often the geese droppings get cleaned. The response was that they are doing their best to keep up with it. It was also noted that around the community there is coyotes and windmills to deter the geese from wondering into the areas. There comment about the irrigation system on Bannon Lakes Boulevard running when it shouldn’t be during or after a lot a rain and it’s costing a lot of money. The response was that the irrigation system runs on a control panel, and it runs on its own. Mr. Johnson offered to do research to find out if they have more ways to control the irrigation system if it does rain. TWELFTH ORDER OF BUSINESS Audience Comments A resident asked why they didn’t stripe the rest of the road. Mr. Oliver responded that he would investigate and get a firm answer. A resident asked for a visual showing what areas are the CDDs, HOAs, counties, etc. The response was to go to the tax assessors webpage and type in Bannon Lakes. Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 10 A resident asked if the CDD was taking over all of the waterways. Mr. Oliver responded that is going to be something that is going to be investigated to see if it will be more cost efficient for the District and all the residents. THIRTEENTH ORDER OF BUSINESS Supervisor’s Requests Mr. d’Aquin stated if this is his last meeting, he hopes that everybody that he has talked with and people who have come to the meeting have felt like he has tried to ask questions and find out what people are thinking, how they feel about different things and that he has been a good representative. He added that has been his goal. He was the first resident on the Board with four developer Board members. He stated it has been an honor to serve and he hopes everyone feels like he has done an honorable job. He thanked everyone. Mr. Oliver responded that he hopes Mr. d'Aquin comes back to a meeting so they can properly recognize him. FOURTEENTH ORDER OF BUSINESS Financial Reports A. Balance Sheet and Statement of Revenues & Expenditures for the Period Ending June 30, 2024 Mr. Oliver presented the unaudited financials as of June 30, 2024. There were no unusual variances on the income statement. They have a balance of $68,821 and they will be adding $45,000 in this next fiscal year. B. Assessment Receipt Schedules Mr. Oliver stated the District is fully collected for FY 2024. C. Approval of Check Register Mr. Oliver presented the check register for the General Fund to the Board. On MOTION by Mr. Sheldon, seconded by Mr. d’Aquin, with all in favor, the Check Register, was approved 4-0. FIFTEENTH ORDER OF BUSINESS Next Scheduled Meeting – To Be Determined @ 1:00 p.m. at the World Golf Renaissance Hotel Mr. Oliver stated the next meeting date will be sometime in September. Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3 August 7, 2024 Bannon Lakes CDD 11 SIXTEENTH ORDER OF BUSINESS Adjournment On MOTION by Mr. d’ Aquin, seconded by Ms. Crenier, with all in favor, the meeting was adjourned 4-0. _______________________________ _________________________________ Secretary / Assistant Secretary Chairperson / Vice Chairperson Docusign Envelope ID: 81C9254D-BBA7-4A83-BE19-116E877F7CC3