MINUTES OF MEETING NARCOSSEE COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Narcoossee Community Development District was held Tuesday, July 25, 2023 at 3:00 p.m. at the Offices of GMS-CF, LLC, 6200 Lee Vista Boulevard, Suite 300, Orlando, Florida. Present and constituting a quorum were: Steve Giercyk Chairman Peter Wong Vice Chairman Kenneth Turner Assistant Secretary Isabel Hanze Assistant Secretary Eli Garrett Assistant Secretary Also present were: Jason Showe District Manager Meredith Hammock District Counsel Maddie Flint Kilinski Van Wyk Molly Banfield District Engineer by telephone Rey Malave District Engineer by telephone Alan Scheerer Field Manager Several Residents FIRST ORDER OF BUSINESS Roll Call Mr. Showe called the meeting to order and called the roll. SECOND ORDER OF BUSINESS Public Comment Period Ms. Hanze stated I am with Mirabella and at this time we are going to leave the plan to remodel the Ziani entrance, we are going to do that at a later time. Mr. Turner joined the meeting at this time. July 25, 2023 Narcoossee COO TmRD ORDER OF BUSINESS Public Hearing to Consider the Adoption of the Fiscal Year 2024 Budget On MOTION by Mr. Turner seconded by Mr. Giercyk with all in favor the public hearing was opened. A. Consideration of Resolution 2023-05 Adopting the Fiscal Year 2024 Budget and Relating to the Annual Appropriations Mr. Showe stated Resolution 2023-05 adopts the fiscal year 2024 budget. Exhibit A to the resolution is the proposed budget and in large part it is the same as you saw a few months ago. The increase is largely attributed to the increase in the landscaping costs. We built that into the budget last year, not knowing what the actual cost would be. Due to timing we were able to include a slightly larger contract last year, but the budget needed to be adjusted this year to capture all the costs. The increase per home ranges from $10 for Nona Preserve up to about $61 for Nona Crest. In the reserve study that was sent out the projection was about $260,000 in reserves overall and you are ending this year at $269,000. That is to maintain the infrastructure, which is the walls, entrances as well as the stormwater system. Mr. Wong stated when the reserve study was done it had three components for the three separate communities, now we have a capital reserve from G&H. Does that help moving forward? Mr. Showe stated the proposed budget has it combined. The initial reserve study didn't allocate any reserves to G&H because there was no infrastructure there to maintain. We are just looking at how much the reserve study said you should have and what you have. You are right at where you should be. Mr. Wong stated the reserve study looks at targeting by community the reserves and we are at the same level, which is good, we combine everything. If we are going to look at targeting specific reserves, are we still going to look at the breakdown by community? Are we looking at combining everything? Mr. Turner stated we already combined everything. You still have to identify the ponds and the infrastructure by community because that is the only way you can do it. Mr. Showe stated the initial reserve study was based on a time when we did have them separate and that is why they allocated it the way they did. 2 July 25, 2023 Narcoossee eDD Mr. Wong stated when we levy the assessment for reserves are we going to target by community or look at the entire sum and divide it? Mr. Showe stated you almost have to leave that for a future budget to determine. Because this budget is set. If you were going to do it that way we would have to retroactively go back, look at the reserve study and say as an example if Nona Crest is supposed to contribute $10,000 to its reserve every year, we would have to increase that individual segment to include that contribution. The floor was opened for public comment. Mr. Simmons stated we had a dramatic increase from the HOA. When I look at the budget, I see a duplication of effort. The HOA pays for landscaping. Mr. Showe stated there are two separate areas of responsibility. Mr. Scheerer stated the HOA has everything inside the gate with the exception of the ponds. You have your own landscaping, the CDD has the stormwater ponds, the easements associated with those ponds, as well as everything north and south on Narcoossee Road outside the wall. There are three ponds inside your community that we maintain and behind Mr. Gregoire on that gas line easement there is a pond that the HOA maintains. We are not mowing yours and you are not mowing ours. Mr. Simmons stated but we are still paying two fees. Mr. Showe stated you are, but it is for two separate areas. Mr. Simmons asked what is the justification for the 20% increase over the prior year? Mr. Showe stated two years ago this board was very unhappy with the prior landscaper although he had not increased his fees for six years and we bid landscape maintenance and received six bids and selected Yellowstone. At the time they selected Yellowstone we had increased the budget to include most of the increase of that cost because they didn 't start until January and now we have to pay the full cost of the contract. There was an increase in CDD fees last year and this is for the full year. Each community is assessed based on the landscape maintenance for your particular section. Mr. Simmons asked is there any collaboration between the HOA and the CDD, because you are adding more volume and we might get a lower cost. 3 July 25, 2023 Narcoossee COO Mr. Showe stated no, because our contract is bid for district-wide property and we would have to coordinate with every HOA in the entire community. La Vina has four separate HaAs, there is an apartment complex, Nona Preserve and Nona Crest. Ms. Hammock stated the CDD is a governmental entity, the HaAs are private companies. The COD is obligated to follow different rules, laws, statutes for bidding than the HaAs. Mr.Scheererstatedthepresident ofyourBOA satonthisboardanumber ofyears. Ms. Rodriguez stated we areconcemed with the increase. From what I'm hearing the increase for the COD will cover lawn maintenance around our community? Mr. Showe stated at the front entrance as well as Dowden Road. A resident asked what is the CDD's responsibility other than the landscaping? Mr. Scheerer stated with respect to your neighborhood the wall that runs north and south, the landscaping, stormwater ponds, Dowden Road is owned by the City of Orlando so they are responsible for roadway and sidewalk repairs. The CDD just has common area landscaping and stormwater pond maintenance throughout all of the communities, with the exception of Capri has a much longer wall, they have a planter wall and we own all the walls as well within the district. La Vina, which is the four communities on Dowden, Nona Crest and Nona Preserve. Those are all insured and there is some maintenance starting soon on all those walls . Mr. Showe stated the assessment also pays for the streetlights. Ms. Rodriguez asked when will that take effect? Mr. Showe stated that will be included with your tax bill that you receive in November and yours will be an increase over last years of $48.99 in Solvina. Last year you were assessed $608.73 and next year you will be assessed $657.00 so your increase is $48 for the whole year. There is also a debt service component that stays the same and the operations and maintenance portion that is going up $48. The debt service goes away in ten years or you can choose to pay that offat any time. On MOTION by Mr. Wong seconded by Mr. Turner with all in favor Resolution 2023-05 Adopting the Fiscal Year 2024 Budget and Relating to the Annual Appropriations was approved. 4 July 25,2023 Narcoossee CDD B. Consideration of Resolution 2023-06 Imposing Special Assessments and Certifying an Assessment Roll Mr. Showe stated the second part of the budget hearing is Resolution 2023-06 that imposes the special assessments based on the budget you just adopted. Attached to this resolution will be the adopted budget and the assessment roll. Mr. Turner stated there is no change in the schedule, correct. Mr. Showe stated the change in the schedule from the prior year is the assessments, so whatever assessment level you just approved will be on the tax bill. The prior year schedule would have the old operations and maintenance and this has the one you just adopted with the increases. The debt service remains the same. On MOTION by Mr. Giercyk seconded by Mr. Garrett with all in favor Resolution 2023-06 Imposing Special Assessments and Certifying an Assessment Roll was approved. On MOTION by Mr. Giercyk seconded by Mr. Turner with all in favor the public hearing was closed. FOURTH ORDER OF BUSINESS Approval of the Minutes of May 16, 2023 Board of Supervisors Meeting On MOTION by Mr. Wong seconded by Mr. Garrett with all in favor the minutes of the May 16, 2023 meeting were approved as amended. FIFTH ORDER OF BUSINESS Consideration of Proposal for Ziani Enhancement from Yellowstone This item was tabled . SIXTH ORDER OF BUSINESS Presentation of2014 Reserve Study Mr. Showe stated we provided you with a copy of the 2014 reserve study. You have in reserves the full amount that is suggested in the reserve study. Going forward they are looking at contributions of about $40,000 or $50,000 a year. There are options if you want to get that updated with current day costs and inflation factors. 5 July 25, 2023 Narcoossee CDD SEVENTH ORDER OF BUSINESS Ratification of Non-Ad Valorem Assessment Administration Agreement with Orange County Property Appraiser On MOTION by Mr. Turner seconded by Mr. Wong with all in favor the non-ad valorem assessment administration agreement with the Orange County property appraiser was ratified . EIGHTH ORDER OF BUSINESS Staff Reports A. Attorney -Presentation of Memo Regarding Ethics Trainings for Special District Supervisors Ms. Hammock stated you will see in the agenda package a memo from my firm discussing-the new ethics training requirement for special district supervisors. This is a new law that the legislature passed in this most recent session and goes into effect January 1, 2024. Each calendar year that you are sitting on the board you are going to be required to complete fourhours of ethics training. Previously this was not a requirement and when you fill out the form 1 disclosure form, check the box that you have completed the training that you have not had to check before. My firm is working on training for you that would satisfy this requirement and we can do a workshop that would be virtual. We did link in the memo the Florida Commission on Ethics website where they have free training online available to you. Anything you do before January 1, does not count towards next year's four-hour requirement. B. Engineer -Review and Acceptance of Annual Engineer's report Mr. Malave stated we provided a summary of the letter submitted to the trust indenture. We did an inspection of all our properties owned by the CDD, especially the stormwater pond system, created some summaries of some minor things that need to be taken care of, but everything else was in working order, the budget has sufficient dollars for operation and maintenance. Our letter was signed by me and submitted. Mr. Wong asked do you have an update on the Econ Trail? Mr. Malave responded I do not have that. 6 July 25,2023 Narcoossee COO C. Manager i, Approval of Check Register On MOTION by Mr. Giercyk seconded by Mr. Wong with all in favor the check register was approved. ii, Balance Sheet and Income Statement A copy of the balance sheet and income statement were included in the agenda package. III. Review of Fiscal Year 2024 Meeting Schedule Mr. Showe stated the district is required to advertise an annual meeting schedule and we kept the same meeting schedule as in the past. We have November 28, January23, March 26, May 28, July 23 and September 24th . We still have September 26th of this year, but this is for the 2024 calendar. You can have more meetings; you can change the schedule around later but we are required to advertise an annual schedule. On MOTION by Mr. Turner seconded by Mr. Giercyk with all in favor the fiscal year 2024 meeting schedule was approved. NINTH ORDER OF BUSINESS Other Business There being no comments, the next item followed. TENTH ORDER OF BUSINESS Supervisors Requests Mr. Wong asked are we expecting around $30,000 to move to capital reserve at the end of this year? Mr. Showe responded yes. Mr. Giercyk stated based on the fact that people have asked me about the repairs and cleaning on the walls, I have noticed some mildew. Mr. Scheerer stated yes, we started that process and he should be at Nona Crest if he hasn't already finished . I spoke to Viking two weeks ago he should be sending me proposals for all the cracks and wear and tear. I'm expecting that any day. Each community is going to have their own significant repairs. In a lot of them they are going to have to remove portions of the wall, they can't just fill the crack. 7 July 25, 2023 Narcoossee COO ELEVENTH ORDER OF BUSINESS Next Meeting Date -September 26,2023 Mr. Showe stated the next meeting is scheduled for September 26,2023. TWELFTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Giercyk seconded by Mr. Turner with all in favor the meeting adjourned at 4:08 p.m. ry/Assistant Secretary 8