MINUTES OF MEETING CAPITAL REGION COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Capital Region Community Development District was held Thursday, July 12, 2018 at 6:30 p.m. at the Southwood Community Center, 4675 Grove Park Drive, Tallahassee, Florida. Present and constituting a quorum were: Eli Nortelus Vice Chairman DavidRamba Supervisor Glenda Herrera-Gray Supervisor (by telephone) John Ray Supervisor Also present were: James Oliver District Manager Joe Brown District Counsel Ro be rt Berlin Operations Manager -GMS Keith Dantin Engineering Consultant Teresa Colter Communications Consultant The following is a summary ofthe actions taken at the July 12, 2018 meeting. A copy of the proceedings can be obtained by contacting the District Manager. FIRST ORDER OF BUSINESS Roll Call Mr. Nortelus called the meeting to order and called the roll. SECOND ORDER OF BUSINESS Pledge of Allegiance Mr. Ramba led the Pledge of Allegiance. THIRD ORDER OF BUSINESS Audience Comments Mr. Rojas distributed a picture of Lake Verduva and stated two years ago when you raised the assessment when you wanted to build a park you cut pond maintenance by 75%. think one of the things you should consider tonight is to put more money in pond maintenance. July 12, 2018 Capital Region COD What is the total amount of the increase for park project and how much has been spent to negotiate with the city, engineers and attorney's? Mr. Oliver responded the total amount assessed in FYI 7 was $292,000 and the balance sheet shows that we currently have $231,000. Mr. Rojas stated I think that is something you need to wrestle with too because 200 people came and said don't do this until you have a contract with the city, you raised assessments and you wasted $61,000. I think you need to remember that and I think you need to fix the lakes. Ms. Herrera-Gray joined the meeting by telephone during this item. Mr. Allen stated after the last meeting I talked to a number of the supervisors about planting some trees in the park and the comment I heard was if you can show us where they need to be planted we are interested in doing that. I did a tour around the park with All Pro staff and the catfish pond and came up with a list of about 18 areas where trees could be planted in clusters of three or more. I pulled together a tentative budget and I gave it to Kim and depending on what you can put in the budget this year we can spend up to $2,000 and do 100 trees in one year or we could do it over time. I want to also thank you for the wildflowers. I think we ought to do what we did with the water quality and there are wildflower specialists in the neighborhood that don't charge a lot, just get in there and give us some advice to make sure we are getting it right. Mr. Ray stated when we put recurring money in the preserve maintenance budget that is our budget. Every year there is a little bit of money for maintenance, adding trees and stuff like that. Make sure Kim talks to Robert. Mr. Berlin stated we have $10,000. Mr. Allen stated the numbers I came up with and gave to Kim was for materials but didn't include planting the trees. Mr. Barber stated I am with All Pro and I am a resident. We did the VA clinic and I have an opportunity next week to work with Arlington National Cemetery with some of my staff and about 500 landscape companies around the country volunteering to work at Arlington National Cemetery next Monday and Tuesday we will spend a day in Capital Hill talking to Bill Nelson's staff, Rubio's staff about our struggles with labor. That is a big problem we have right now. We do use the guest worker program and you will see a lot of workers in South Wood in the next few days. I want to bring good people to the table and give you a good price and a good product. I 2 July 12, 2018 Capital Regiou COD work very hard to provide that. I retired from the City of Tallahassee, I have lived in this community 19 years and I have worked with this board since its inception. I have worked through quite a few troubles with St. Joe and the CDD and I want to let you know I appreciate the opportunity to be your contractor in Southwood. We will continue to raise the bar for professionalism and we need your support moving forward with working with the board. Mr. Nortelus stated the qualifying period has come and gone and we do have a candidateelect with us today, Jennings DePriest who ran unopposed for Seat 5, currently held by David Ramba. Mr. De Priest introduced himself to the board and stated I look forward to serving the community and wish Mr. Ramba the best ofluck. Mr. Nortelus stated we have two other seats up for election, Glenda is not running and I'm not running and candidates for those seats are also here. Mr. Burns, Mr. Rojas, Ms. Johnston, and Mr. Glantz introduced themselves to the board and audience and all expressed a willingness to work with the board and community. FOURTH ORDER OF BUSINESS Approval of Consent Agenda A. Approval of the Minutes of the June 14, 2018 Meeting B. Balance Sheet as of May 31, 2018 and Statement of Revenues & Expenditures for the Period Ending May 31, 2018 C. Treasury Report -May 31, 2018 D. Allocation of Assessments E. Check Register On MOTION by Mr. Ramba seconded by Mr. Ray with all in favor the consent agenda items were approved. FIFTH ORDER OF BUSINESS Update Regarding DRI Matters Mr. Brown updated the board on the status of St. Joe's request to vacate the DR! and stated we have a meeting scheduled on August 2nd with city staff. The city commission is on their summer break and a lot of their staff is taking vacation as a result. Based on my last conversation there hasn't been any formal reply to St. Joe and the City has not developed any internal formal response. 3 July 12,2018 Capital Region CDD SIXTH ORDER OF BUSINESS Update Regarding Park and Recreational Facilities Mr. Brown stated at the last meeting we talked about the city's request for a letter from the district agreeing to allow the city to move tortoises on to district owned property. That letter was transmitted and my understanding is that the city is still working to try to get a permit in place to move those tortoises from the city's park parcel to Shepherds Branch. A resident stated I think the board should ask the city to set aside space for a pool to be constructed at some point by the city. SEVENTH ORDER OF BUSINESS Report on Due Diligence Regarding the Golf Course Sale & Purchase and Consideration of Draft Purchase and Sale Terms Mr. Ramba stated at the last meeting the board approved me doing some due diligence regarding the golf course. St. Joe currently has a purchaser with an expected closing July 20, 2018. The purchaser said he intends to close but St. Joe said they will also take backup offers. Counsel sent to the board yesterday an outline of a potential offer, it was $1.1 million, St. Joe is responsible for the outstanding principal bond debt of $194,000, 120-day district due diligence period, and securing financing acceptable to the district.. On MOTION by Mr. Ramba seconded by Mr. Ray with all in favor Mr. Ramba was authorized to work with staff to put a term sheet together to present to St. Joe and the chair or vice chair were authorized to execute the term sheet with the following deal points: purchase price of golf course of $1.1 million, seller responsible for the payoff of the bond debt of approximately $194,000 prior to closing, inspection and due diligence period of 120 days from execution of the purchase and sale agreement, seller would have to provide reasonable access for inspection of the physical golf course and club and financial business records to evaluate the course's performance, closing to be either 30 days from the expiration of the inspection and due diligence period or 30 days after a certificate of no appeal ifthe district determines it is required or desires to pursue validation, title opinion, and contingent upon the CDD coordinating acceptable financing terms. EIGHTH ORDER OF BUSINESS Presentation of Capital Reserve Study Conducted by Reserve Advisors 4 July 12, 2018 Capital Region COD Mr. Oliver stated you have a draft report in your agenda package. This board has commissioned a capital reserve study after it shows that we are underfunded in our capital reserves. You have ample funds in the undesignated reserve to transfer $150,000 into capital reserves and that would impact what the first few years of assessments would be as you begin to ramp up. NINTH ORDER OF BUSINESS Discussion of Fiscal Year 2019 Approved Budget Mr. Ray stated I have a budget amendment to propose and that is to put $8,500 in the budget for a traffic study to be conducted for additional street parking on Blairstone and Four Oaks Boulevard near the traffic circle. The estimate to do the design, permitting and construction would be about $25,000. We could get the data from the study by December and that would go to the city for them to analyze or approve and probably get something back from them in the spring and if they okayed it and the board wanted to move forward the cost of implementation would be in the next budget. Mr. Ramba stated I struggle with doing this because people are breaking the law and it only benefits a very limited number of people but nobody else is going to park here it is for the direct benefit of the houses that front it. A number ofresidents spoke in favor of the expenditure for safety and other concerns. On MOTION by Mr. Ramba seconded by Mr. Ray with all in favor, $8,500 was included in the budget for a traffic study to be conducted for additional street parking on Blair Stone Road and Four Oaks Boulevard near the traffic circle. TENTH ORDER OF BUSINESS Staff Reports A. Attorney -Report Mr. Brown stated there is a series of lawsuits pending against local governments dealing with ADA compliance with websites. We are going to have a link on our website that says it is under construction for ADA compliance. Some changes will be made to ensure we are in compliance with the requirements with ADA. We have been evaluating the assessment methodology for the Southwood House and the intent is to have it for collection this coming fiscal year. Ifit does not make it on the roll, then 5 July 12, 2018 Capital Region COD we will direct bill it as we do St. Joe's bulk land. We will have to issue public notice and we will have a hearing just on that parcel. B. Engineer There not being any, the next item followed. C. Dantin Consulting There being none, the next item followed. D. Communications Consulting Mr. Oliver stated Sandi has been very helpful in getting proposals so that we can ensure our website can be accessed by the visually impaired. E. Property Management Report 1. All Pro Reports A copy of the All Pro reports was included in the agenda package. 2. Operations Memorandum A copy of the operations memorandum was included in the agenda package. 3. Variance Report A copy of the variance report was included in the agenda package. F. Manager There being none, the next item followed. ELEVENTH ORDER OF BUSINESS Supervisor's Requests Mr. Ramba stated we have to tighten up next 4th of July. People were coming through my backyard to park in the empty lot next to me. We put up flags and signs and people drove through my front yard and across the first fairway to park in that empty lot. There were probably 30 -40 cars parked on the golf course behind my house. 6 July 12, 2018 Capital Region CDD TWELFTH ORDER OF BUSINESS Audience Comments There being none, the next item followed. THIRTEENTH ORDER OF BUSINESS Next Scheduled Meeting -August 16, 2018 at 6:30 p.m. at the Southwood Community Center Mr. Nortelus stated the next scheduled meeting is Thursday, August 16, 2018 at 6:30 p.m. The meeting adjourned at 8:38 p.m. 7