MINUTES OF MEETING SANDMINE ROAD COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Sandmine Road Community Development District was held Thursday, August 17, 2023 at 2:00 p.m. at 1115 Aloha Blvd, Davenport, Florida. Present and constituting a quorum: Eric Baker Chairman Sean Bailey Assistant Secretary Aaron Struckmeyer Assistant Secretary Also present were: George Flint District Manager, GMS Andy Hatton Field Manager, GMS Broc Althafer by phone District Engineer Ryan Dugan by phone Kutak Rock FIRST ORDER OF BUSINESS Roll Call Mr. Flint called the meeting to order and called the roll. Three Board members were present constituting a quorum. SECOND ORDER OF BUSNESS Public Comment Period Mr. Flint stated that there were no members of the public present. THIRD ORDER OF BUSINESS Approval of Minutes of the May 18, 2023 Board of Supervisor’s Meeting Mr. Flint asked if the Board had any comments or corrections to the May 18, 2023 Board of Supervisor’s meeting minutes. The Board had no changes to the minutes. On MOTION by Mr. Bailey, seconded by Mr. Struckmeyer, with all in favor, the Minutes of the May 18, 2023 Board of Supervisor’s Meeting, were approved. FOURTH ORDER OF BUSINESS Public Hearing A. Public Comment Mr. Flint stated there would be two public hearings, the first to consider adoption of the Fiscal Year 2024 budget and the second one to consider imposition of assessments associated with the budget. He asked for a motion to open the public hearings. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, Opening the Public Hearing, was approved. B. Consideration of Resolution 2023-07 Adopting the Fiscal Year 2024 Budget and Relating to the Annual Appropriations Mr. Flint stated for the record there are no members of the public present to provide comment or testimony, so the first public hearing is to consider adoption of Resolution 2023-07 adopting the FY24 budget. He noted attached to that resolution is the proposed budget. He stated he handed that out and on page two at the bottom they are recommending a reduction in the preunit O&M amounts for the townhomes, the 40’s and the 50’s. He noted the budget was originally based on some estimates that now they are closer to build out of the infrastructure, our landscaping costs primarily are coming in lower. He noted the only caveat to this budget is in talking with Eric, they would like the Board to consider amending this proposed budget to create a wall maintenance line item with $10,000 included and then they would reduce the proposed reduction basically increasing the proposed assessments slightly to fund that $10,000. Looking at the revenue line item, it shows that they are reducing the assessments from $415,000 down to $359,000 but that would go up to $368,000. He noted he included in the landscape line item, there is $10,000 contingency in there above the contracts with exclusive and they have created a capital reserve transfer out of $25,000 that they did not have before so in this budget they are not funding reserves. He stated there is some room even with a reduction putting that $10,000 back in for wall maintenance is smart and gives more cushion. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, Increasing the Budget by $10,000 for Well Maintenance, was approved. On MOTION by Mr. Baker, seconded by Mr. Struckmeyer, with all in favor, Resolution 2023-07 Adopting the Fiscal year 2024 Budget and Relating to the Annual Appropriations, was approved. C. Consideration of Resolution 2023-08 Imposing Special Assessments and Certifying an Assessment Roll Mr. Flint stated this imposes the assessments related to the budget that was just adopted. He noted two exhibits are attached. He stated the first one is the budget that you just adopted which will be revised to reflect the $10,000 wall maintenance and the other one is the assessment roll which was all of the properties in the District and the amounts that will be included on the tax bill. This assessment roll will also have to be revised based on the $10,000 that was put back in for wall maintenance. He noted for the record there were no members of the public here to provide comment or testimony so we will bring it back to the Board. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, Resolution 202-08 Imposing Special Assessments and Certifying an Assessment Roll, was approved. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, Closing the Public Hearing, was approved. FIFTH ORDER OF BUSINESS Consideration of Resolution 2023-09 Appointing an Assistant Treasurer Mr. Flint stated this adds Darrin Mossing, Sr. as an Assistant Treasurer for the District. He is the President of GMS and he works closely with our accounting group so as a back stop they are having him named as an Assistant Treasurer in the event he has to be a signer on an account. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, Resolution 2023-09 Appointing Darrin Mossing, Sr. as an Assistant Treasurer, was approved. SIXTH ORDER OF BUSINESS Consideration of Resolution 2023-10 Re- Designating Bank Account Signatories Mr. Flint noted previously the resolution authorizing signers named individuals and they are recommending you adopt this resolution which would name offices. He noted rather than name individuals, this names the Treasurer, Secretary and Assistant Treasurer, that way if there are any changes in who those officers are, you don’t have to come back and revise the resolution. On MOTION by Mr. Baker, seconded by Ms. Bailey, with all in favor, Resolution 2023-10 Redesignating Bank Account Signatories, was approved. SEVENTH ORDER OF BUSINESS Review and Acceptance of Fiscal Year 2022 Audit Report Mr. Flint stated the CDD as a government entity is required to have an annual independent audit performed. He noted that Berger Toombs was selected by the Board as the District’s independent auditor. He stated they have prepared the audit for FY22 which is included in the agenda. It was transmitted to the State of Florida because it is required to be transmitted by June 30th. They are asking the Board to ratify the transmittal to the state and accept the audit. He stated on page 72 of the PDF is the management letter which states there was a finding last year in that actual expenditures exceeded the budgeted amount and that was a situation where you were under a developer funding agreement and so did not really have any adverse impact on the District. He noted other than that, there are no current year findings. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, Acceptance of the Fiscal Year 2022 Audit Report, was approved. EIGHTH ORDER OF BUSINESS Ratification of Requisitions A. Series 2021 #10-13 Mr. Flint presented requisitions #10-13 for the Series 2021 bonds. Requisition #10 $2,000 for Osceola Engineering, #11 $2,500,000 to Pulte for acquisition of Phase 2B infrastructure improvements, #12 to Pulte $944,844 for acquisition of Phase 2B water and sewer impact fees, and #13 $2,403,000.07 for the remaining reimbursement cost in the construction account. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, the Requisitions for Series 2021 #10-13 Requisitions, were ratified. B. Series 2022 #4-5 Mr. Flint stated next are requisitions #4-5 for the Series 2022 bonds. Requisition #4 is for Kutak Rock and requisition 5 is for Kutak Rock. He noted those are related to project construction. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, the Requisitions for Series 2022 #4-5, were ratified. NINTH ORDER OF BUSINESS Staff Reports A. Attorney Mr. Dugan had a quick report about requisitions and ratifications. He noted they are working with the District Engineer and developer on the acquisition of Phase 3 improvements and documents after signature. The total for this acquisition is a little over $3,500,000. It is related to Phase 3 improvements and those will be paid from the Series 2022 bonds. He noted that should be wrapped up sometime this month. He stated he would be happy to answer any questions. Mr. Flint stated no questions. B. Engineer i. Review and Acceptance of Annual Engineer’s Report Mr. Althafer stated in early June he performed the Annual Engineer Inspection and provided a report. He noted he reviewed all of the infrastructure that has been acquired by the CDD to date and everything appears to be in good working condition and working order. He does not have any recommendations for the budget or maintenance. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, Accepting the Annual Engineer’s Report, was approved. C. Field Manager’s Report Mr. Hatton stated he had nothing to report as everything looks good. D. District Manager’s Report i. Check Register Mr. Flint presented the check register from June 1st through June 30th for $11,666.40 and the detail is behind the summary. He asked for any questions on the check register. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, the Check Register totaling $11,666.40, was approved. ii. Balance Sheet and Income Statement Mr. Flint presented the unaudited financials through June 30th. He noted if the Board has any questions, they can discuss those. No action is required. iii. Approval of Fiscal Year 2024 Meeting Dates Mr. Flint stated an annual meeting schedule has been prepared based on your past practice of meeting on the third Thursday of each month at this location at 2:00 p.m. He noted, if you want to keep that time and location, you can approve this notice otherwise we can adjust it. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, the Fiscal Year 2024 Meeting Dates, was approved. TENTH ORDER OF BUSINESS Other Business There being no comments, the next item followed. ELEVENTH ORDER OF BUSINESS Supervisors Requests There being no comments, the next item followed. TWELFTH ORDER OF BUSINESS Adjournment Mr. Flint adjourned the meeting. On MOTION by Mr. Baker, seconded by Mr. Bailey, with all in favor, the meeting was adjourned. Signature - George Flint Signature - Eric Baker Secretary/Assistant Secretary Chairman/Vice Chairman