HERONS GLEN RECREATION DISTRICT (HGRD) BOARD OF SUPERVISORS REGULAR BOARD MEETING FEBRUARY 28, P.M. BALLROOM

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1 HGRD Reg Bd Mtg, February 28, 2018, Page 1 of 7 HERONS GLEN RECREATION DISTRICT (HGRD) BOARD OF SUPERVISORS REGULAR BOARD MEETING FEBRUARY 28, P.M. BALLROOM MINUTES I. CALL TO ORDER Chair Thomas called the meeting to order at 5 p.m. II. PLEDGE OF ALLEGIANCE Supervisor Polvinen led the Pledge. III. ROLL CALL Board Assistant Marvin called the roll and present were Chair Thomas, Supervisors Larry Cummings, Jim Gormley, Larry Pedersen and Mary Ann Polvinen, General Manager Loraine Ellis Vienne, Controller Lynn Garcia and District Counsel Tom Hart. IV. APPROVAL OF MINUTES There were no corrections proposed at the Feb 26 Board Workshop to the minutes of the Jan 29 Board Workshop, the Jan 31 Board Meeting or Feb 15 & 16 Board Meetings. Chair entertained a motion to approve those minutes. Supervisor Polvinen made the motion, and Supervisor Gormley seconded the motion. The Board voted unanimously to approve the minutes. V. TREASURER S REPORT - Treasurer Gormley reported on the January Financials. Year to date all departments were better than budget by $68,047 with $11,631 of that from golf operations (ATTACHMENT A). VI. DISTRICT COUNSEL S REPORT Thomas Hart, Esq. reported that he received word yesterday that another candidate has dropped out. The ballots and resumes were already printed and folded and ready to mail. The ballot shows five candidates but now Rick Potash has withdrawn from the ballot. The Board s options are to send out the ballots as they are now printed and post notices at the meeting and on the bulletin boards about the withdrawal of candidate Rick Potash, or the ballot can be reprinted with four candidates and remove Mr. Potash s resume from the packets. That could be done within a week that would allow residents two and a half weeks to either mail their ballots or drop it in the ballot box at the office. The cost would be about $500. Supervisor Cummings suggested removing his resume and inserting a notice that Mr. Potash had withdrawn from running. Chair Thomas said his choice would be to reprint the ballot to avoid any confusion for the voters. Supervisor Polvinen asked if Mr. Potash s name could be crossed off the ballot, and Mr. Hart said the staff time involved in doing that would amount to about the same cost as reprinting. Supervisor Gormley said he did not believe the District s money should be spent on reprinting just because the candidate did not withdraw within a reasonable time. He said there is adequate time to notify residents via electronic means and bulletin boards about the withdrawal. Supervisor Pedersen said being one of the candidates, he was reluctant to voice an opinion, but his preference would be to have the ballot reprinted. Supervisor Polvinen said that after listening to the options, she thinks people tend not to read or see the notices, so she would prefer to have it reprinted. Chair asked that those in favor of reprinting say aye, and Supervisors Pedersen, Polvinen and Thomas voted in favor. He asked for those opposed to reprinting say nay, and Supervisors Cummings and Gormley voted against reprinting. The ballot will be reprinted. VII. GENERAL MANAGER S REPORT Loraine Ellis Vienne Board Assistant Interviews GM said Board Assistant Mary Ellen Marvin will be retiring on March 16 and we will be very sorry to see her go. The search was narrowed to two candidates. One candidate attended the February 26 Board Workshop and the second is here at this meeting. The Board will meet with this candidate after the business portion of this meeting is completed.

2 HGRD Reg Bd Mtg, February 28, 2018, Page 2 of 7 Meet the Board of Supervisors Candidates This event will take place tomorrow in the ballroom beginning at 4:30 p.m. When entering, each resident is welcome to fill out a question form at the table in the back of the room. The three Board members not running will sort those to eliminate duplicates. There will be a moderator and each candidate will be allowed to answer each of the questions asked. Ballot Auditing At the Workshop, the Board decided not to spend $2,000 for the auditors to oversee the vote counting, so a request for resident volunteers was sent out electronically. HGRD staff will work in four teams of two to open and count ballots. Nine residents volunteered to oversee the counting, so GM asked if drawing four from those nine names would be acceptable to the Board. The Board members all agreed that was acceptable. Chair said the three non-candidates would draw the names. The names drawn from the box were: Karen Jessop, Tom DeLache, Donald Knute O Connor, and MaryLou Pierozzi. Josh Hall Case Update The State s Attorney sent Lee County s Detective P to again interview HGRD staff. He said that there will most likely be a plea deal moving forward with the State s Attorney. Golf Course Renovation The Board held a Special Meeting at 3 p.m. today to select the architect to develop the Master Plan for the golf course renovation. There were three architects who submitted proposals and made presentations. The Board reviewed the scoring sheets submitted by the five Board members and two representatives of the Golf Course Renovation Ad Hoc Committee. The firm with the highest rating on the scoring sheet and the recommendation of the Ad Hoc Committee was Ron Garl Golf Design, so the Board selected that firm subject to negotiation of a satisfactory contract. Financing of Fitness Center Project District Counsel had advised the Board that it may be possible to obtain an unsecured three-year loan from a bank for this financing. We have an appointment on March 19 to discuss this option. Pickleball Court Deficiencies Stewart Tennis Courts and Fencing rep met with our Clubhouse Maintenance Superintendent and has taken the information obtained back to Stewart s attorney. District Counsel is waiting for their response regarding what actions they will take regarding the emulsion issues on the Pickleball Courts. 911 Memorial The original donor of the memorial requested that it be moved from the front of Herons Glen to an area opposite the Veterans Memorial at the front of the clubhouse. Management and the Board have no objection to this relocation of the memorial. Employee Handbook The Board agreed to postpone action on the revised handbook until the April Board Meeting. Pool & Spa Issues The finish on both the pool and spa is deteriorating, and it is on the Long Range Plan for refurbishment in The finish is coming off and causing frequent filtration problems. There is also a leak in the spa s main drain, and a company will be here tomorrow to try to pinpoint the exact location of the leak. Shuffleboard Courts These are beginning to crack and will need to be reground. This was last done in 2013, and repair costs are being obtained. Hydro Court System Costs are being obtained for a improvement to the drain system for the tennis and bocce hydro court system which uses water from the driving range lake. Currently when the lake level is low, silt from the lake bottom enters clogs the filtration system. Golf Course Maintenance The capital leases for equipment will be coming up soon for Board approval. Director Kortanek has request closure of the course for two weeks in August for maintenance work. The

3 HGRD Reg Bd Mtg, February 28, 2018, Page 3 of 7 clubhouse maintenance will be done also during those two weeks. The aeration dates are May 14, Kime 11. July 30 and September 10. Annual Request for Volunteers The annual request for volunteers for all Advisory and Ad Hoc Committees will be sent out soon. VIII. COMMITTEE RECOMMENDATIONS Three committees had recommendations: A. Finance Advisory Committee Chair Ron Glasgow reported that the committee had two recommendations. First, First, as a result of the opening and review of the architects bids for the golf course renovation Master Plan, the Board may include all three bids in their consideration in selection the architect. Second, the committee supports Treasurer Gormley s request to invest idle funds into time deposits by taking $250,000 from the Emergency Reserve Fund and investing in two $125,000 six-month CDs. Next, the committee supports General Manager s recommendation to take $200,000 from the Special Golf Course Improvement Fund and invest it in a $200,000 six-month CD. Both investments should be made at a state approved depository, and if all are made at one institution, they should be in CEDARS for insurance purposes (ATTACHMENT B). B. Facilities & Amenities Advisory Committee Feb 19 - Chair Karen Mars reported that the committee had one recommendation to bring to the Board to allow non-resident Tennis Association memberships. At the Board Workshop, the Board received a draft copy of a recommended amendment to the HGRD Policies & Procedures Manual, page 43, for their consideration (ATTACHMENT C). This is being requested due to a shortage of tennis players of a certain rating level required to comprise the Association s teams. Chair Mars said the Board could have some time to review and discuss this proposal but hopefully will make their decision at the April meeting as the new teams have to be submitted to the Lee County in May, rather than the Fall as was stated at the Workshop. C. Golf Course Renovation Ad Hoc Committee Feb 22 Chair Kisner had reported at the Board Workshop that the committee discussed the three presentations by the golf course architects and their recommendation to the Board is for the selection of Ron Garl Golf Design for development of the Master Plan. IX. OLD BUSINESS A. Request for approval of expenditure for civil engineer services for Fitness Center Project- District Counsel read Resolution No : A RESOLUTION OF THE HERONS GLEN RECREATION DISTRICT APPROVING EXPENDITURES FROM 2017/2018 CAPITAL IMPROVEMENT BUDGET FOR FITNESS CENTER SITE ENGINEERING; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. Section 3.A. Expend from 2017/2018 Capital Improvement Funds a not-to-exceed amount of $7, for Maestricht Engineering to perform Fitness Center Site Location study (ATTACHMENT D). Chair entertained a motion to approve Resolution No Supervisor Gormley made the motion, and Supervisor Pedersen seconded the motion. Discussion: Supervisor Cummings said that he opposes this motion because it implies that the fitness center is going to be built at the Mystic site. Chair responded that this study has to be done in order to obtain a cost, so it would have to be done for whatever site on which the building would be placed. Supervisor Cummings said then it should wait until it is decided which site will be used. Supervisor Gormley said that the Board already voted to have the architect develop plans at the Mystic site. Supervisor Cummings commented that the Board should not have done that. Chair asked if there was any other discussion, and there was none, so the Board voted as follows: Supervisors Gormley, Pedersen, Polvinen and Thomas voted in favor, and Supervisor Cummings voted against. The motion passed with the majority vote.

4 HGRD Reg Bd Mtg, February 28, 2018, Page 4 of 7 B. Update on selection of Golf Course Renovation Master Plan Architect Covered under GM s report. C. Any other old business to come before the Board Supervisor Cummings said that at the Board Workshop, the GM s reported that she had been asked to confirm with Architect Mike Sheeley, Lotus Architecture, the three options for the Fitness Center space and design, she did report those three options to the Board at the Workshop. He asked if the Board ever received drawings on these three options, because he has never seen those. GM replied that in Fitness Center s discussions and updates, the drawing sent out with the space and floor plan shows a 1,800 square feet room to the left of a 3,500 square feet fitness equipment center, and on the scale in the lower right corner is shown the sizes for the additional different rooms that are attached to that area. The total square feet for just the fitness equipment area and those smaller additional rooms is 5,200 square feet. It was stated in one of the summer meetings that if a 5,000 square feet building was built with a multi-purpose room, some of the equipment would have to be eliminated and an 800 square feet multi-purpose room would fit in the building. That was the information that was discussed at the Workshop. Chair commented that the architect was directed to produce the 7,175 square feet drawing because there would have been additional charges to produce three different size drawings. X. NEW BUSINESS A. Procedures for Meet the Candidates Event, March 1 Chair said that GM reviewed the procedures in her report and that information was published in the Weekly Newsletter B. Request for approval of three new members for Resident Events Ad Hoc Committee - Chair said that three members have been proposed: 1. Valerie McCarter, 2. Tom Braunscheidel, and 3. Cheryl Braunscheidel. Chair entertained a motion to approve those three members. Supervisor Pedersen made the motion, and Supervisor Polvinen seconded the motion. There being no discussion, the Board voted unanimously to approve the three new members. Chair said that there will be additional new members required to bring the total committee to 18 members, and those others will be recruited through the Annual Volunteer Request that is being sent out next week. C. Request for approval of expenditure of funds for new clubhouse walkway pavers District Counsel read Resolution No : A RESOLUTION OF THE HERONS GLEN RECREATION DISTRICT APPROVING EXPENDITURES FROM 2017/2018 CAPITAL RESERVE FOR CLUBHOUSE AREA PAVER REPLACEMENTS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. Section 3.A. Expend from 2017/2018 Capital Funds a not-to-exceed amount of $96, for replacement of pavers in clubhouse area. Chair entertained a motion to approve Resolution No Supervisor Polvinen made the motion, and Supervisor Pedersen seconded the motion. Discussion: Supervisor Gormley said he had concerns about doing this project at this time. He understands the possibility of tripping hazards but thinks the job could be deferred for a year. We know we are going to incur other expenses with the pool and spa, so he questioned whether this is the proper time to do this. Supervisor Cummings asked if this work would be done during the August two-week shut down for maintenance work, and GM replied that is what is planned, and it would be confirmed in the final contract. Chair said if it is to be done in August, the order has to be placed at least five months in advance. He added that regarding deferring for a year, there is a liability concern regarding having someone fall on loose pavers, which has happened. Finance Advisory Committee Chair Ron Glasgow said that and contract for over $25,000 has to have three bids presented to the Bid Oversight Subcommittee, who would then make a recommendation to the Finance Committee for their recommendation to the Board. GM said that three bids have been obtained and will be presented to the Subcommittee. There being no further discussion, the Board voted unanimously to approve Resolution No (ATTACHMENT E).

5 HGRD Reg Bd Mtg, February 28, 2018, Page 5 of 7 D. Request for approval of contract for General Manager Chair said that this contract was discussed at the Board Workshop, and there was either gross misinformation or gross misinterpretation presented by a resident about this contract at the Board Workshop which was that if the GM were terminated without cause, there would be multi-million-dollar payouts. How this contract really reads is: The District may terminate this contract at any time without cause by giving 60 days written notice to the GM/COO and pay the GM/COO an amount equal to the lesser of one-year s salary or the remainder of salary under this contract after termination has been fully performed, plus the salary which is due for the 60-day notice period, and plus the budgeted performance bonus. Chair said what that means that if the person is terminated without cause within the first two years of the contract, the General Manager is due one year s salary. If GM is terminated after the completion of the second year, the amount due is the remainder of the salary. I have spoken with a resident who was a Club General Manager, and he said that the standard in the industry or 65% to 75% of the clubs now is a three-year contract with a termination clause without cause is a full payout of the contract plus the severance fee of one month s pay per year. This HGRD contract does not include a full payout; it includes one year s salary and no severance pay, which is better deal than most other clubs are getting. District Counsel read Resolution No : A RESOLUTION OF THE HERONS GLEN RECREATION DISTRICT APPROVING EXPENDITURE FROM OPERATING BUDGET FOR MULTI-YEAR GENERAL MANAGER SERVICES CONTRACT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. Section 3.A. A three-year employment contract with Loraine Vienne as General Manager with salary and benefits as described therein and payable from the District s Operating Account for each applicable year of the Agreement s term. Chair entertained a motion to approve Resolution No Supervisor Gormley made the motion, and Supervisor Polvinen seconded the motion. Discussion: Supervisor Cummings said that since the Board Workshop, he has had a chance to think about some of the things that were said. I believe that it is my duty as a Supervisor to point out some incorrect assumptions made at that Workshop so that residents may understand what is before the Board. During my discussion of the contract about to be entered into with the District and an employee, it was stated that this contract was needed because one Board member does not like the employee in question. I, for one, have no personal relationship with the GM which would cause her to make that statement. I do know that in my opinion, I do not like the job she has been doing since being hired in November During that time, the GM has received a performance bonus from this Board, a staying bonus from this Board, and was given a vacation time after being here for less than a year which is against policy. The contract before us should be about employment, not feelings. You, the residents, will pay the necessary assessments in order to fulfill the proposed contract. The Board is about to agree to a three-year contract without allowing enough time to vet it and understand all the terms. Also, Loraine Vienne is our General Manager, not a Chief Operating Officer, and this title is incorrectly referenced in this contract. I think we must look at the terms of the past contracts which were awarded the Board should write the contract, not the employee. Then the employee may either accept or reject the terms. I am asking our Attorney to explain fully what the termination and compensation clauses mean. I am also asking that the Finance Advisory Committee be asked to look at the impact of such a long-term agreement on our budget and on our long-term planning. Only then is a vote on this matter appropriate. The community will owe approximately $370,800 in salary alone if this contract is approved and if circumstances come about, we could be paying two GMs the same salary instead of one. I ask the Board to table this vote until proper facts have been gathered. Chair Thomas responded, first, the vacation time was agreed upon between Loraine and me, as Chair. Second, where does your $370,800 come from. If you read and understand the clause that I just read, the exposure is somewhere in the neighborhood of $130,00 to $140,000. He asked District Counsel to explain the clause. Mr. Hart said that Chair had stated the clause correctly, it says the lesser of one year or the remaining balance of the contract, so the most the District could be obligated for on salary is $123,000 plus a bonus that might be budgeted. This is almost identical to the contract the District had

6 HGRD Reg Bd Mtg, February 28, 2018, Page 6 of 7 with the previous GM with the exception of the termination for no cause provision. The previous contract said something like three months of severance pay GM commented that she did not address Mr. Cummings personally as not caring for me or not liking me. I said an individual Board member and I did not address or name a member. I get along fine with Mr. Cummings. Next, I would to address the fact that it was not just the previous GM who had the contract, but also the previous Golf Course Superintendent and the previous GM before Mr. Hall. This is not something new to the District. Supervisor Gormley agreed that both Mr. Hall and Mr. Bainbridge had identical contracts with the exception of the termination for no cause and both had the three months salary severance clause. This contract has been changed to a larger amount, which is basically a protection in case of a situation where termination was done without cause. GM has relocated, purchase a home and made a commitment to us, and I think it is only fair to give her some protection. Supervisor Polvinen commented that in her opinion Loraine s performance has been outstanding. If anyone would like to read her resume, they would see that through her credentials she is more than credentialed for this position within the community. Supervisor Gormley said that there have been comments on Google that about Loraine not being professional and not qualified. If these people would look into what the requirements are for a club certification, which she has, might realize they are spreading misinformation. Resident Dorothy Klewicki said that she is a former Supervisor and served nine years on the HGRD Board. I respect the position and those that serve. She wanted to comment on the proposed contract for the GM. I will give some history. The first GM was appointed by the developer when management was turned over to the homeowners. He had a contract with the developer. We learned quickly that he did not have the background for the job, and that was another time when a contract tied the hands of the Board. I worked with five GMs during my tenure and never heard such a request. One worked without a contract, the others had yearly contracts with renewals. This GM has been here about one year and three months and I assume she had a yearly contract. Chair replied that she had no contract. Mrs. Klewicki said but she did receive a bonus in December. To ask now for a new three-year contract with a golden parachute clause of a year s salary is unbelievable to me. I know that the earlier GM contracts with the three-months severance for about $40,000 is a lot difference than the $120,000 one-year severance. An election will be in March which could change the make-up of the Board, so how can you tie the hands of this Board or a new Board. In the past, there have been times when the Board had to manage until a new GM was on board. This would be very difficult when you must pay a year s salary to the former GM and also try to hire a new GM. During my time on the Board, there were annual performance reviews with goals and accomplishments discussed prior to discussion of any raise in salary. Remember, we have many seniors living here with limited funds who may receive less than a 3% Social Security raise while their other expenses are raised more, and some are one-person homes struggling to hold on. My main objection is the total amount of money, which I do not think is fair and would be a financial problem for the future of this District. Resident Howard Young said he has had a lot of experience with Loraine and think she has some great qualifications. I do have some concerns that I have voiced before. We have lost two managers here under her watchful eyes; one was who I think was the best Golf Course Superintendent we ever had. GM commented that he was offered $30,000 more at his new job. Mr. Young said we also lost the Food & Beverage Manager who was a long-term employee who worked the restaurant and bar areas and did a very good job; and he is gone. My next concern was the noise problem complaints about the Pickleball Courts. Instead of GM getting directly involved in negotiating with the Tisbury residents, a resident was given the authority to negotiate. They used information provided to them from someone from courts in Sun City Grand in Arizona, which resulted in the decision to change the paddles at a cost to everyone who played the sport about $100 a paddle. Mr. Young said he had occasion to visit those Sun City

7 HGRD Reg Bd Mtg, February 28, 2018, Page 7 of 7 Grand courts and saw that the facility we were being compared to had 22 courts, were lit, and were located immediately adjacent to the homes. I don t think a resident should have to negotiate on behalf of the Board without the GM s direct intervention and just accept what they decided to do. I have no issues with Loraine, but I believe there is problem. There is a handbook that says a person has to be employed for a year to be entitled to vacation, and I understand Loraine was not held to that rule. If a Board member can deviate from the standards, I don t know why we have a Board. Resident Bruce Critchlow said he had no problem given the GM a three-year contract as long as it would be attached to performance goals in writing and they are met. Not meeting the performance goals would be something on which to base a termination. At this time with the Board election coming up, it is unfair to settle into a contract if the same members might not be on the Board. Chair responded that there are performance measures set every year to be met before raises are granted. There being no further discussion, the Board voted on the motion as follows: Supervisors Gormley, Pedersen, Polvinen and Thomas voted in favor, and Supervisor Cummings voted against. The Resolution No was approved by the majority vote (ATTACHMENT F). E. Request for approval of payment of bonuses to: 1. Debbie Brust, Dining Room Manager $1,000; and Mary Ellen Marvin, HGRD Board Assistant $500. Chair entertained a motion to approve these bonuses. Supervisor Pedersen said it had been suggested earlier that a larger bonus might be appropriate for Debbie considering the work that she has done. Supervisor Polvinen recommended that the Board approve a $2,000 bonus for Debbie Brust. Supervisor Gormley made a motion that a bonus be approved for Debbie Brust in the amount of $2,000 and for Mary Ellen Marvin in the amount of $500, and Supervisor Pedersen seconded the motion. There being no further discussion, the Board voted as follows: Supervisors Gormley, Pedersen, Polvinen and Thomas voted in favor, and Supervisor Cummings voted against. The motion was approved by the majority vote. F. Selection of three volunteers to oversee the counting of HGRD Board election ballots This was handled earlier in the meeting with the selection of four residents rather than three. G. Any other new business to come before the Board There was none. XI. RESIDENT COMMENTS There were none. XII. NEXT WORKSHOP/ MEETINGS A. Long Range Planning Ad Hoc Committee, Mon, Mar 12 & Mar 26, 10 a.m., Card Rm C B. Facilities & Amenities Advisory Committee, Mon, Mar 12, 2 p.m., Card Rm C C. Finance Advisory Committee No meeting in March D. Regular Board Workshop, Mon, Mar 26, 2 p.m., Card Room C F. Regular Board Meeting, Wed., Mar 28, 5 p.m., Card Room C XI. INTERVIEW OF CANDIDATE FOR BOARD ASSISTANT POSITION Most of the audience departed the ballroom when the Board jointly interviewed Sara White for the position of Board Assistant. After her departure, they decided on a selection. XIII. ADJOURNMENT The meeting was adjourned at 7:15 p.m. Attachments /mem March 28, 2018 Date March 28, 2018 Date SUBMITTED BY: duly signed on this day Sara White, HGRD Bd Asst APPROVED BY BOARD: duly signed on this day Dick Thomas, HGRD Chair

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