MINUTES OF MEETING REUNION WEST COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Reunion West Community Development District was held on Thursday, August 8, 2024 at 11:00 a.m. via Zoom Communication Media Technology and at the Heritage Crossing Community Center, 7715 Heritage Crossing Way, Reunion, Florida. Present and constituting a quorum: Graham Staley Chairman Sharon Harley Vice Chair Mark Greenstein Assistant Secretary William (Bill) Witcher Assistant Secretary Michael Barry Assistant Secretary Also present were: Tricia Adams District Manager Kristen Trucco District Counsel James Curley District Engineer Alan Scheerer Field Manager Aura Zelada Artemis Lifestyles Victor Vargas Reunion Security Pete Whitman Yellowstone Landscape Residents The following is a summary of the discussions and actions taken at the August 8, 2024 Reunion West Community Development District Board of Supervisors meeting. FIRST ORDER OF BUSINESS Roll Call Ms. Adams called the meeting to order at 11:00 a.m. and called the roll. All Supervisors were present. SECOND ORDER OF BUSINESS Public Comment Period There being no comments, the next item followed. THIRD ORDER OF BUSINESS Approval of the Minutes of the July 11, 2024 Board of Supervisors Meeting Ms. Adams presented the minutes of the July 11, 2024 Board of Supervisors meetings, which were included in the agenda package and reviewed by District management staff, District Counsel and the Chairman. On MOTION by Mr. Greenstein seconded by Mr. Barry with all in favor the Minutes of the July 11, 2024 Board of Supervisors Meeting were approved as presented. FOURTH ORDER OF BUSINESS Public Hearing On MOTION by Ms. Harley seconded by Mr. Staley with all in favor the public hearing on the adoption of the Fiscal Year 2025 budget was opened. There being no public comments, Ms. Adams asked for a motion to close the public hearing. On MOTION by Mr. Staley seconded by Mr. Greenstein with all in favor the public hearing on the adoption of the Fiscal Year 2025 budget was closed. A. Consideration of Resolution 2024-08 Adopting the Fiscal Year 2025 Budget and Relating to the Annual Appropriations Ms. Adams presented Resolution 2024-08, Adopting the Fiscal Year (FY) 2025 Budget, for the period starting October 1, 2024 and ending September 30, 2025. The Resolution memorializes that the proposed budget was provided to the local government, posted on the website, and that today’s public hearing had been set and noticed in accordance with Florida Statutes. The Resolution also identifies the appropriations for the General and Debt Service Funds and provides a provision in case the budget needs to be amended for FY 2025. Attached to the Resolution as Exhibit A, is the Proposed Budget for 2025. When this proposed budget was approved, the Board set the high-water mark for the Operations and Maintenance (O&M) Fee, which was proposed to be the same amount as the current fiscal year. Since the proposed budget was reviewed an event in Reunion East, caused the need for significant changes, due to Kingwood Orlando Reunion Resort (KORR), terminating the Management Services Agreement (MSA) for the Heritage Crossings Community Center (HCCC) by October 1st. With the MSA, the CDD paid an annual fee and KORR managed the day-to-day operations, including landscaping, custodial services and HVAC maintenance, etc. As a result of the Reunion East CDD taking over direct maintenance responsibilities for HCCC and The Stables on October 1st, the budget was amended to include a section for the operations of HCCC, which was separated from Field Expenses for tracking purposes, for the first year. The estimated budget amounts were based on historical information and KORR providing 12 months of current utility bills and pest control services. The other change in the proposed budget was the financials were updated through the end of June. Mr. Witcher questioned who managed use of the facilities. Ms. Adams stated that KORR expressed an interest in continuing to rent the facility, as they currently paid rental fees to the CDD, which was included under Rental Income. The public could rent the facility, but there were no budget funds for marketing the facility nor administrative management of the facility or acquiring furniture. Ms. Adams and Mr. Scheerer were working on these issues and planned to report to the Reunion East CDD Board at the next meeting. Mr. Witcher asked if the District made a profit from rental of the facility. Ms. Adams explained that the facility was operated as an amenity not as an enterprise stream. Ms. Trucco confirmed that rental fees were intended to just cover the expenses of the CDD, to maintain the infrastructure that was being rented and the use the property of the CDD was for a governmental purpose, not for making a profit. However, if there was an incidental profit, funds could be used to fund the expenses of the CDD. Mr. Staley questioned the amount that the CDD was paying KORR. Ms. Adams recalled that the CDD was paying $7,150 annually, under the MSA and that amount was previously included in budget, under the MSA line item in the General Fund but now zeroed out. Regarding the budget, Ms. Adams explained that Revenues recognized special assessments or O&M fees on the Tax Bills, Interest Income was based on Surplus Funds that were invested and Rental Income based on historical rental revenue. Because this Board did a great job of controlling expenses and accumulated surplus funds, the budget recognized a Carry Forward balance in the General Fund, in order to balance the budget, so the total revenues and total expenses balanced. Under the Administrative Budget, the only change was a reduction in the Annual Audit, due to the most recent Audit Agreement that the Board approved for FY 2024. There was also an increase in professional fees, based on the current spending. There were no substantive changes for the shared expenses for FY 2025, other than zeroing out the MSA and fine-tuning any line items, based on the current spending. To balance the budget, due to the increase in expenses, there was a reduction in the proposed Transfer Out to the R&M Fund. There was a level assessment, as there was no variance between FY 2024 and 2025. The shared costs between the two Districts, changed slightly, because the Reunion East CDD platted additional units. For FY 2025, the Reunion West CDD was responsible for 43% of the shared costs and the Reunion East CDD was responsible for 57%. Regarding the R&M Fund, Capital Outlay was expected to be more in FY 2025, because of the road repairs, which was the most significant expense. When the R&M Plan was discussed, the Board discussed aggregating the paving work into five-year intervals, starting with the roads in the poorest condition, which were identified in the Pavement Management Plan. There would be an increased assessment in future years, as there would not be a recognition of Surplus Funds, as well as a planned increase in the contribution to the R&M Fund. Mr. Staley recalled that the Reunion Encore roads would not need to be re-paved for 10 years. Mr. Scheerer confirmed that the roads were relatively new and in good shape. Mr. Witcher asked if it included pavement markings. Ms. Adams recalled that the Board wanted to improve stop bars, crosswalks and striping. Mr. Scheerer stated there was a Striping Plan for the traffic circle off of Reunion Boulevard, over the I-4 bridge to the Sinclair Road gate and stop bars at Golden Bear Drive and Grand Traverse Parkway. Mr. Staley planned to work on the Five-Year Plan and discuss it at the next meeting. Ms. Adams reported that the remainder of the budget was the Debt Service Fund for the Series 2015, 2016, 2017, 2019 and 2022 bond issues. The Board did not have the ability to change the assessment levels and was only authorizing collection, as the assessments were imposed at the time that the bonds were issued. The payments vary each year for interest and principal, based on the Amortization Schedules and the assessment amount was stable until the debt retired. Mr. Staley noted that the Series 2015, 2016, 2017 and 2019 bond issues were for the Reunion West Encore neighborhood and the majority of Reunion West Resort, were the 2022 bond issue. Ms. Adams recalled that the 2022 bonds were refinanced with a historically low interest rate and the Board did a good job making sure that the property owners in the District benefitted by it. Mr. Staley recommended looking at the reserve numbers, funding a small amount each year, to build up reserves and having a healthy discussion about how to proceed in the future and appreciated the work that staff did on the budget. On MOTION by Mr. Witcher seconded by Mr. Greenstein with all in favor Resolution 2024-08 Adopting the Proposed Fiscal Year 2025 Budget and Relating to the Annual Appropriations was adopted. B. Consideration of Resolution 2024-09 Imposing Special Assessments and Certifying an Assessment Roll Ms. Adams presented Resolution 2024-09, authorizing the collection of the maintenance and debt service fees on the Tax Roll, which was the funding mechanism for the budget. Attached to the resolution, was the Proposed Budget and Tax Roll, which were exhibits to the resolution. The Tax Roll identified parcels within the Reunion West CDD and noted the amounts for the CDD debt and maintenance fees. On MOTION by Mr. Greenstein seconded by Mr. Barry with all in favor Resolution 2024-09 Imposing Special Assessments and Certifying an Assessment Roll was adopted. FIFTH ORDER OF BUSINESS Consideration of Sign Installation Request from The Crescent at Reunion Ms. Adams recalled at the last meeting, a sign installation request was received from The Crescent at Reunion and as a result, the Board adopted a Sign Policy, whereby any signs installed on CDD property, must be approved by the Board. However, the signs were re-designed, at the Board’s request, in accordance with the specifications provided by the Board, such as having the white post with the end caps, the shape of the sign being consistent with other Reunion signs, including the Reunion palm motif, to create a sense of cohesiveness throughout the community and directional signs with arrows, aiding drivers to find the Crescent Project at Reunion. In addition to the picture with the graphic elements, there was also a map, which was the same as what had been previously proposed. The signs would be placed at Tradition Boulevard and Grand Traverse Parkway. Should the Board approve this request, Ms. Adams questioned whether the Board wanted to enter into a License Agreement. Ms. Trucco recalled that there was an existing License Agreement for signage, that she could use as a template, as it included indemnification for any damages, to reimburse the District if they damaged the property and hold the District harmless. A pre-work inspection would also be completed by field staff and a post-inspection, if the License Agreement was terminated. There would also be an insurance provision and termination provision of 30 days, but the Board could extend or reduce the time. Ms. Adams requested that the Board approve the request, subject to District Counsel preparing the License Agreement. Mr. Staley felt that what they were proposing was attractive, but it was not consistent with other signs, as the Palms did not have a circle around them and the arrows and shape were different. Mr. Greenstein recommended that someone work on the design with The Crescent. Discussion ensued. On MOTION by Mr. Staley seconded by Ms. Harley with all in favor approving the sign installation request from The Crescent at Reunion, subject to District Counsel preparing a License Agreement and Mr. Greenstein approve the final layout and design was approved. SIXTH ORDER OF BUSINESS Adoption of District Goals and Objectives Ms. Adams recalled at a prior meeting, District Counsel discussed HB 7013, which was passed in the last Legislative session, for CDDs to adopt annual goals and objectives by October 1st and subsequent reporting requirements in December, on whether or not the District met those goals in objectives. The District management team reviewed the new law and all of the requirements and provided recommended goals and objectives, in accordance with Florida Statutes, which was included in the agenda package. The specifications that the Statutes require were: 1) Community Communication and Engagement, 2) Infrastructure and Facilities Maintenance and 3) Financial Transparency and Accountability. The purpose was to identify District management work that was already taking place, as staff recognized the short deadline to be compliant with the new law and Board Members not wanting to create any additional expense. Mr. Barry questioned Goal 2.1, for field management to perform site inspections, as the District had an agreement with the Field Manager to perform inspections. Ms. Adams confirmed that the District had an agreement with GMS for field services that included inspections. The frequency noted in the Engagement Letter was exceeded, because Mr. Scheerer was at Reunion often, performing regular inspections. Mr. Staley did not want to do anything different, as the Board was available to talk to residents, they had open meetings and their minutes were published; however, there was little engagement by the public and proposed having nine Board meetings, as three meetings were not enough. Mr. Greenstein suggested six meetings. Mr. Staley agreed. Ms. Adams requested that the Board adopt the goals and objectives, subject to changing Goal 1.2, to hold at least six regular Board of Supervisor meetings per year. Mr. Staley recommended having a qualifier in Goal 3.3, Annual Financial Audit, stating that there were no material weaknesses or what was in the Letter to Management, as part of the objective. Ms. Adams would include that there were no material weaknesses. Mr. Staley felt that GMS did a good job on these goals and objectives. Ms. Adams pointed out that not only could this form be used to adopt the District’s goals, but it could be used to report their goals and whether they met them, in December of 2025. On MOTION by Mr. Barry seconded by Mr. Witcher with all in favor the District’s goals and objectives were approved as amended, to decrease the number of meetings to six per year and include no deficiencies in internal control consider to be material weaknesses to audit services. SEVENTH ORDER OF BUSINESS Staff Reports A. Attorney i. Discussion of Statement of Litigation for Constituents - ADDED Ms. Trucco reported that the lawsuit with KORR was filed, since the last Board meeting and the Board previously directed the release of a public statement to be sent out to the community. Mr. Staley recommended Board consensus to not send the statement out, because it would not be complete enough to satisfy inquiries and did not want to alarm people, while the matter was still going through the fact-finding stage. B. Engineer i. Review and Discussion of Proposed Speed Table Locations Ms. Adams recalled at a prior meeting; Mr. Greenstein proposed having field identification of the proposed speed table locations. The map was updated by the District Engineer, based on recent Board member comment and then Mr. Curley and Mr. Scheerer went out to stake the areas that were proposed speed table locations. The Board members received an email, notifying them that the stakes were in the ground and how to identify them, with the updated map. Mr. Barry indicated that their biggest goal, was to place a speed table in the general location of the map; however, a couple of them may have shifted in the field, due to drainage inlets and property lines. Since there were no questions regarding the speed tables, Mr. Staley presumed that the Board Members were satisfied. Ms. Adams recalled that the Board previously approved entering into an agreement, which District Counsel would finalize, with a scope for stop bars, crosswalks, speed tables, milling and resurfacing. Mr. Barry questioned the total cost. Mr. Curley did not know, as he needed to speak to the asphalt contractor. There was Board consensus to proceed and District Counsel would prepare an agreement with a scope for stop bars, crosswalks, speed tables, milling and resurfacing and bring it back to the Board. C. Field Manager Updates Mr. Scheerer reported that the Spine Road gate was closed at Old Lake Wilson Road, due to damage that occurred on the County bridge. Currently that area was being worked on and it looked like they were making progress, as a few excavation trucks were onsite earlier today. Hopefully the matter would resolve soon and the road would be back open and thanked Mr. Vargas for his hard work. The lake fountain on Golden Bear Drive and Tradition Boulevard, had some lights out and the lake vendor was contacted to repair them. The Seven Eagles fountain replacement in Reunion East had started. Mr. Scheerer reported that bids would be provided at a future meeting for the Reunion West playground. He met with Dehlinger Construction, who performed prior work for the CDD. They provided a rough estimate on the sidewalk work of $21 square foot for grading and would provide more information to the Board. With the additional sod and all of the grading work, the combined cost was approximately $396,000, as opposed to $354,000 for the sidewalk repairs only. He was trying to get the costs separated, but the difference was $40,000. Ms. Adams recalled that the amount was provided subsequent to the Repair and Maintenance (R&M) List being published for this meeting. Mr. Staley opined that this was the best project that they could do for the community, as it was a subject that was constantly being discussed by residents. The community weathered the threat of a hurricane recently and thanks to Yellowstone and Mr. Vargas, things were under control. They would continue this way for the remainder of the hurricane season. D. District Manager’s Report i. Action Items List Ms. Adams presented the Action Items List, which was included in the agenda package and circulated to Board members in advance. Mr. Staley asked if the Sheriff’s Office replied to Ms. Trucco regarding the Traffic Enforcement Agreement. Ms. Trucco confirmed that she had not heard from them. Mr. Staley requested that staff leave this item on the Action Items List. ii. Approval of Check Register Ms. Adams presented the Check Register from July 1, 2024 through July 31, 2024, in the amount of $342,608.48, which was included in the agenda package, along with a detailed register. It included expenses from the General Fund, R&M Fund and Supervisor payroll. On MOTION by Mr. Staley seconded by Mr. Barry with all in favor the July Check Register was approved. iii. Balance Sheet and Income Statement Ms. Adams presented the Unaudited Financial Statements through June 30, 2024, which was included in the agenda package. No Board action was required. Staff monitored the balance in the General Fund and the prorated budget to date, as well as actual spending. This month, the District was 100% collected on the Tax Roll and there were no items to bring to the Board's attention, as they were aware of the issues with the administrative expense overrun. Other items that were running over, such as some of the gate repairs, were being adjusted in future budgets. What was impacting the overage, was the number of gate strikes at the eight entrances at the Reunion West POA neighborhood and there being more gates to maintain than in past years. iv. Replacement and Maintenance Plan Ms. Adams presented the R&M Plan, which was included in the agenda package. It included the proposed Project List for FY2025, which was discussed by Board Members from the Reunion East and Reunion West CDDs. It also included infrastructure in the Reserve Study, that would need to be replaced next fiscal year, such as pool furniture and lighting improvements. Mr. Staley noted that the items listed under the R&M Fund, did not compare to the projects. Ms. Adams agreed, which was why it was removed out of the budget for FY2025. Ms. Adams reported that, because it was the end of FY2024 and looking ahead to FY2025, staff made adjustments to the FY2025 Preliminary Project List, based on Board Member feedback and review of the current R&M List, to ensure that items were carried over. The current FY2024 Project List was included in the agenda package. There were no items to report, but projects that were either in process or deferred, were carried forward to the FY2025 Project List. Traffic calming (signage, radar display signage, speed humps), was categorized more tightly on the FY2025 List. The preliminary Project List included deferred projects. For the FY2025 Preliminary Project List, a contingency was added and items were removed, per Board direction. Mr. Staley asked if the benches and concrete pads, were the extra seats for the playground areas. Mr. Scheerer confirmed that this was a request from a Supervisor on the Reunion East CDD Board, to include benches on Reunion Boulevard, between the main gate and around the traffic circle, but ultimately did not occur. Mr. Staley recalled that there was supposed to be an additional seat on the Valhalla playground. Mr. Scheerer indicated it was not part of the plan, but he could include one. Ms. Adams pointed out that no Board action was required and this item was for Board Member review. v. Approval of Fiscal Year 2025 Meeting Dates Ms. Adams presented the Fiscal Year 2025 meeting schedule, which was consistent with the prior year’s meeting schedule, on the second Thursday of each month at 11:00 a.m. at the HCCC. On MOTION by Mr. Staley seconded by Ms. Harley with all in favor the Fiscal Year 2025 meeting schedule as presented was approved. E. Security Report Ms. Adams provided under separate cover, the July Security Reports from Reunion Security and the Reunion West POA. No Board action was required and it was for informational purposes. She reiterated Mr. Scheerer’s appreciation to Mr. Vargas and his staff for their prompt response and mobilization regarding the Spine Road gate closure. Mr. Vargas was present for questions or comments. Mr. Staley asked if the software upgrade for the gates was complete. Mr. Vargas confirmed that it was complete and there were no issues. EIGHTH ORDER OF BUSINESS Other Business There being no comments, the next item followed. NINTH ORDER OF BUSINESS Supervisor’s Requests Mr. Staley requested the long-range plan for the next agenda. TENTH ORDER OF BUSINESS Next Meeting Date – September 12, 2024 Ms. Adams reported that the meeting was scheduled for September 12, 2024 at 11:00 a.m. at this location. ELEVENTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Barry seconded by Mr. Witcher with all in favor the meeting was adjourned. Signature - Tricia Adams Signature - Graham Staley Secretary/Assistant Secretary Chairman/Vice Chairman