VERANDAH EAST COMMUNITY DEVELOPMENT DISTRICT REGULAR MEETING AGENDA
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1 COMMUNITY DEVELOPMENT DISTRICT REGULAR MEETING AGENDA January 9, 2019
2 Verandah East Community Development District OFFICE OF THE DISTRICT MANAGER 2300 Glades Road, Suite 410W Boca Raton, Florida Phone: (561) Fax: (561) Toll-free: (877) December 17, 2018 Board of Supervisors Verandah East Community Development District ATTENDEES: Please identify yourself each time you speak to facilitate accurate transcription of meeting minutes. Dear Board Members: A Regular Meeting of the Verandah East Community Development District s Board of Supervisors will be held on Wednesday, January 9, 2019 at 1:00 p.m., at the Verandah Sales Office, Verandah Blvd., Ft. Myers, Florida The agenda is as follows: 1. Call to Order/Roll Call 2. Public Comments [3 minutes per person] 3. Administration of Oath of Office to Newly Elected Supervisors, Richard Denis Shields, Jr. [SEAT 1] and Mark Henry Santasiero [SEAT 2] (the following to be provided in a separate package) A. Guide to Sunshine Amendment and Code of Ethics for Public Officers and Employees B. Membership, Obligations and Responsibilities C. Financial Disclosure Forms i. Form 1: Statement of Financial Interests ii. Form 1X: Amendment to Form 1, Statement of Financial Interests iii. Form 1F: Final Statement of Financial Interests D. Form 8B Memorandum of Voting Conflict 4. Consideration of Resolution , Electing the Officers of the Verandah East Community Development District, Lee County, Florida; and Providing for an Effective Date 5. Acceptance of Unaudited Financial Statements as of November 30, Approval of August 8, 2018 Public Hearings and Regular Meeting Minutes
3 Board of Supervisors Verandah East Community Development District January 9, 2019, Regular Meeting Agenda Page 2 7. Staff Reports A. District Counsel: Hopping Green & Sams, P.A. B. District Engineer: Johnson Engineering, Inc. C. District Manager: Wrathell, Hunt and Associates, LLC NEXT MEETING DATE: May 8, 2019 at 1:00 P.M. 8. Supervisors Requests 9. Adjournment Should you have any questions, please do not hesitate to contact me directly at (239) Sincerely, Chesley E. Adams, Jr. District Manager FOR BOARD MEMBERS AND STAFF TO ATTEND BY TELEPHONE: Call-in number: Conference ID:
4 COMMUNITY DEVELOPMENT DISTRICT 4
5 RESOLUTION A RESOLUTION ELECTING THE OFFICERS OF THE COMMUNITY DEVELOPMENT DISTRICT, LEE COUNTY, FLORIDA; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the Board of Supervisors of the Verandah East Community Development District was notified of the results of the General Election held on November 6, 2018 for Seats 1 and 2; and WHEREAS, the Board of Supervisors of the Verandah East Community Development District desires to elect the below recited persons to the offices specified. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COMMUNITY DEVELOPMENT DISTRICT: 1. The following persons are elected to the offices shown: Chair Vice Chair Secretary Treasurer Assistant Secretary Assistant Secretary Assistant Secretary Assistant Secretary Assistant Treasurer Craig Wrathell Craig Wrathell Chuck Adams Jeff Pinder 2. This resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 9 th day of January, Secretary/Assistant Secretary Chair/Vice Chair, Board of Supervisors
6 COMMUNITY DEVELOPMENT DISTRICT 5
7 COMMUNITY DEVELOPMENT DISTRICT FINANCIAL STATEMENTS UNAUDITED NOVEMBER 30, 2018
8 COMMUNITY DEVELOPMENT DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS NOVEMBER 30, 2018 Major Funds Debt Service General Series 2016 Capital Projects Series 2016 Total Governmental Funds ASSETS Cash (SunTrust) $ 334,764 $ - $ - $ 334,764 Investments Revenue account - 155, ,245 Reserve account - 376, ,048 Construction account - - 1,745,494 1,745,494 Redemption - 4,984-4,984 Undeposited fund Due from general fund - 287, ,842 Due from other governments 5, ,686 Total assets $ 340,450 $ 824,119 $ 1,745,494 $ 2,910,063 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 21,545 $ - $ - $ 21,545 Due to debt service fund 287, ,842 Due to other governments 4, ,278 Total liabilities 313, ,665 Fund balances: Restricted for: Debt service - 824, ,119 Capital projects - - 1,745,494 1,745,494 Unassigned 26, ,785 Total fund balances 26, ,119 1,745,494 2,596,398 Total liabilities and fund balances $ 340,450 $ 824,119 $ 1,745,494 $ 2,910,063 1
9 COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GENERAL FUND 001 FOR THE PERIOD ENDED NOVEMBER 30, Current Month Year to Date % of Budget Budget REVENUE Special assessment: on-roll $ 32,768 $ 32,768 $ 128,042 26% Special assessment: off-roll 7,159 7,159 42,955 17% Interest & miscellaneous % Total revenue 39,929 39, ,262 23% EXPENDITURE Professional & administrative Supervisors - - 2,206 0% Management and accounting 4,595 9,190 55,142 17% Audit - - 6,575 0% Legal - - 4,413 0% Field management 778 1,557 9,339 17% Engineering - - 2,206 0% Trustee 2,372 2,372 4,413 54% Dissemination agent ,654 17% Arbitrage - - 1,324 0% Assessment roll preparation ,591 0% Telephone % Postage % Insurance - 5,333 5,750 93% Printing & binding % Legal advertising % Office expenses and supplies % Website % Contingencies % Annual district filing fee % Total professional & admin expenses 8,466 20, ,006 18% Water management Contractual services 4,235 4,235 50,747 8% Aquascaping - - 2,206 0% Contingencies ,619 1% Total water management 4,297 4,297 59,572 7% 2
10 COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GENERAL FUND 001 FOR THE PERIOD ENDED NOVEMBER 30, Current Month Year to Date % of Budget Budget Other fees and charges Property appraiser % Tax collector ,001 21% Total other fees & charges ,684 15% Total expenditures 13,175 24, ,262 14% Excess/(deficiency) of revenues over/(under) expenditures 26,754 15,165 - Fund balances - beginning 31 11,620 34,826 Fund balances - ending $ 26,785 $ 26,785 $ 34,826 3
11 COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DEBT SERVICE FUND SERIES 2016 FOR THE PERIOD ENDED NOVEMBER 30, 2018 Current Month Year to Date % of Budget Budget REVENUES Special assessment: on-roll $ 287,368 $ 287,368 $ 1,102,653 26% Special assessment: off-roll 80,130 80, ,060 23% Interest 1,278 2,380 - N/A Total revenues 368, ,878 1,448,713 N/A EXPENDITURES Debt service Principal ,000 0% Principal Prepayments 20,000 20,000 - N/A Interest 379, , ,825 50% Total debt service 399, ,912 1,469,825 N/A Total expenditures 399, ,912 1,469,825 N/A Net change in fund balances (31,136) (30,034) (21,112) Fund balances - beginning 855, , ,257 Fund balances - ending $ 824,119 $ 824,119 $ 806,145 4
12 COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND SERIES 2016 FOR THE PERIOD ENDED NOVEMBER 30, 2018 Current Month Year to Date REVENUES Interest $ 2,606 $ 4,852 Total revenues 2,606 4,852 EXPENDITURES Total expenditures - - Excess/(deficiency) of revenues over/(under) expenditures 2,606 4,852 Fund balances - beginning 1,742,888 1,740,642 Fund balances - ending $ 1,745,494 $ 1,745,494 5
13 COMMUNITY DEVELOPMENT DISTRICT 6
14 MINUTES OF MEETING COMMUNITY DEVELOPMENT DISTRICT Multiple Public Hearings and a Regular Meeting of the Verandah East Community Development District s Board of Supervisors were held on Wednesday, August 8, 2018 at 1:00 p.m., at the Verandah Sales Office, Verandah Blvd., Ft. Myers, Florida Present and constituting a quorum were: Paul Martin David Langhout Nikolai Kerpchar David Moore David Truxton Chair Vice Chair Assistant Secretary Assistant Secretary Assistant Secretary Also present were: Chuck Adams Cleo Adams Jason Olson Alyssa Willson (via telephone) Mallory Clancy Tony Grau (via telephone) Mark Santasiero District Manager Assistant Regional Manager Assistant Regional Manager District Counsel District Engineer Grau & Associates Resident and Supervisor-Elect FIRST ORDER OF BUSINESS Call to Order/Roll Call Mrs. Adams called the meeting to order at 1:00 p.m. All Supervisors were present, in person. SECOND ORDER OF BUSINESS Public Comments [3 minutes per person] There being no public comments, the next item followed. THIRD ORDER OF BUSINESS Administration of Oath of Office to Newly Appointed Supervisor, David Truxton (the following will be provided in a separate package)
15 CDD August 8, 2018 Mrs. Adams, a Notary of the State of Florida and duly authorized, administered the Oath of Office to Mr. David Truxton. Mrs. Adams provided and briefly explained the following items: A. Guide to Sunshine Amendment and Code of Ethics for Public Officers and Employees B. Membership, Obligations and Responsibilities C. Financial Disclosure Forms i. Form 1: Statement of Financial Interests ii. iii. Form 1X: Amendment to Form 1, Statement of Financial Interests Form 1F: Final Statement of Financial Interests D. Form 8B Memorandum of Voting Conflict FOURTH ORDER OF BUSINESS Presentation of Audited Financial Report for the Fiscal Year Ended September 30, 2017, Prepared by Grau & Associates Mr. Grau presented the Audited Financial Report for Fiscal Year Ending September 30, 2017 and described the information that could be found on each page. The audit was consistent with past audits. This was a clean, unqualified audit; there were no findings or instances of noncompliance. The bond issue costs increased the CDD s expenses compared to the prior year. Mr. Kerpchar asked for clarification of Note 11-Risk Management, on Page 20, and the types of situations that would result in the District not being covered. Mr. Adams stated the phrase was standard and it applied to nothing specific and, since the CDD has sovereign immunity protection, there was nothing specific that the General Liability coverage would not cover, for operating the storm water management system, lakes and wetlands. FIFTH ORDER OF BUSINESS Consideration of Resolution , Accepting the Audited Financial Report for the Fiscal Year Ended September 30, 2017 Mr. Adams presented Resolution On MOTION by Mr. Martin and seconded by Mr. Moore, with all in favor, Resolution , Accepting the Audited Financial Report for the Fiscal Year Ended September 30, 2017, was adopted. 2
16 CDD August 8, 2018 Mr. Grau left the meeting at 1:12 p.m. SIXTH ORDER OF BUSINESS Public Hearing to Hear Comments and Objections on Adoption of Fiscal Year 2018/2019 Budget A. Proof/Affidavit of Publication Mrs. Adams presented the affidavit of publication. B. Consideration of Resolution , Relating to the Annual Appropriations and Adopting the Budget for the Fiscal Year Beginning October 1, 2018, and Ending September 30, 2019 Mrs. Adams presented Resolution Mr. Adams recalled that, to avoid increasing assessments in Fiscal Year 2018, surplus fund balances were used to offset an increase. As a result of Hurricane Irma, approximately $12,000 in expenses were incurred, which decreased the remaining fund balance significantly such that there was no longer enough to cover the first three months of the CDD s Fiscal Year 2019 operating costs. To offset the unforecasted, unbudgeted expenses and to rebuild the fund balance, the Contingencies line item was increased to $15,000, for Fiscal Year 2019, which resulted in assessments increasing slightly, necessitating sending Mailed Notices to property owners. On-roll assessments increased from $ in Fiscal Year 2018 to $ per unit in Fiscal Year 2019 and off-roll assessments increased $ to $ per unit. Mr. Kerpchar commented that renewal of the Lake and Wetland Maintenance contract with the current contractor would result in savings of approximately $12,000, over the next two years, compared to the high bids received. Mr. Adams stated that, during the competitive bid process, the CDD exercised its option to extend the existing contract with SOLitude Lake Management (SOLitude), for an additional year, with a one year option, at the current price. Mr. Moore asked about the hurricane cleanup expenses. Mr. Adams stated that contingencies were also expended on hurricane cleanup. Mr. Moore asked if an itemized list of expenditures relating to the Hurricane Cleanup line item was available. Mr. Adams stated they were associated mostly with the lakes and wetlands, as reflected on the inventory map. Mrs. Adams confirmed, as part of the hurricane cleanup expenses, approximately $6,300, went 3
17 CDD August 8, 2018 towards repairing the golf cart bridge, which were shared with the HOA and other costs were shared with Verandah West CDD. Mr. Moore asked why the District s total revenues were being reduced. Mr. Adams explained it was because the CDD prior year s $33,559 loss was being projected through to Fiscal Year 2019; because prepayment and interest was due, it caused the proposed fund balance to be negative. Mr. Adams opened the Public Hearing. No members of the public spoke. On MOTION by Mr. Langhout and seconded by Mr. Martin, with all in favor, the Public Hearing was closed. On MOTION by Mr. Moore and seconded by Mr. Kerpchar, with all in favor, Resolution , Relating to the Annual Appropriations and Adopting the Budget for the Fiscal Year Beginning October 1, 2018, and Ending September 30, 2019, were adopted. SEVENTH ORDER OF BUSINESS Public Hearing to Hear Comments and Objections on the Imposition of Maintenance and Operation Assessments to Fund the Budget for Fiscal Year 2018/2019, Pursuant to Florida Law A. Proof/Affidavit of Publication Mrs. Adams presented the affidavit of publication. B. Mailed Notice(s) to Property Owner(s) A copy of the Mailed Notice was included for informational purposes. C. Consideration of Resolution , Making a Determination of Benefit: Imposing Special Assessments; Providing for the Collection and Enforcement of Special Assessments, Including But Not Limited to Penalties and Interest Thereon; Certifying an Assessment Roll; Providing for Amendments to the Assessment Roll Mrs. Adams presented Resolution
18 CDD August 8, 2018 On MOTION by Mr. Langhout and seconded by Mr. Martin, with all in favor, the Public Hearing was opened. No members of the public spoke. On MOTION by Mr. Langhout and seconded by Mr. Martin, with all in favor, the Public Hearing was closed. On MOTION by Mr. Langhout and seconded by Mr. Kerpchar, with all in favor, Resolution , Making a Determination of Benefit: Imposing Special Assessments; Providing for the Collection and Enforcement of Special Assessments, Including But Not Limited to Penalties and Interest Thereon; Certifying an Assessment Roll; Providing for Amendments to the Assessment Roll, was adopted. EIGHTH ORDER OF BUSINESS Consideration of Resolution ; Adopting the Annual Meeting Schedule for Fiscal Year 2018/2019 Mrs. Adams presented Resolution Mrs. Adams stated any changes to this schedule will be advertised, accordingly. On MOTION by Mr. Moore and seconded by Mr. Kerpchar, with all in favor, Resolution ; Adopting the Annual Meeting Schedule for Fiscal Year 2018/2019, was adopted. NINTH ORDER OF BUSINESS Acceptance of Unaudited Financial Statements as of June 30, 2018 Mrs. Adams presented the Unaudited Financial Statements as of June 30, Adams explained that Special on-roll assessment revenues were at 142%, which was mostly because of timing, as a number of off-roll units transferred to on-roll between the time the budget was adopted and the lien roll was transferred. Expenditures were at 76%, on target from the 75% prorated projections. Mr. 5
19 CDD August 8, 2018 TENTH ORDER OF BUSINESS Approval of May 9, 2018 Regular Meeting Minutes Mr. Adams presented the May 9, 2018 Regular Meeting Minutes and asked for any additions, deletions or corrections. On MOTION by Mr. Martin and seconded by Mr. Kerpchar, with all in favor, the May 9, 2018 Regular Meeting Minutes, as presented, were approved. ELEVENTH ORDER OF BUSINESS Staff Reports A. District Counsel: Hopping Green & Sams, P.A. There being no report, the next item followed. B. District Engineer: Johnson Engineering, Inc. There being no report, the next item followed. C. District Manager: Wrathell, Hunt & Associates, LLC i. Consideration of ADA Site Compliance Proposal for Website Compliance Shield, Accessibility Policy and One (1) Annual Technological Audit Mr. Adams stated that numerous CDDs and governmental entities were recently sued because their websites were not compliant with the Americans with Disabilities Act (ADA) website requirements. Egis, the CDD s insurance carrier, referred ADA Site Compliance (ADASC), which Management engaged, on behalf of the Districts it manages, at an annual cost of $199 per District, to update the websites with an ADA Compliance Seal and links to the Accessibility Compliance Policy. Going forward, all legally required documents will be posted using the proper formatting and all outdated information will be removed. Any outdated items that the Board wants to remain on the website can be converted for an additional cost, which would be high. Management is negotiating the cost to perform a human audit on one website and carry over the findings to the other CDD websites. Egis engaged, Roper & Roper, P.A, (R&R) to defend these lawsuits. R&R filed a Motion to Dismiss and a settlement was reached on behalf of the sued CDDs. Mr. Truxton asked if the entire agenda is posted to the CDD website. Mr. Adams replied affirmatively. He would distribute the Special District Website Compliance List listing the 6
20 CDD August 8, 2018 documents statutorily required to be posted to CDD websites. The website will link to the Auditor General s website, for those that want to view the annual audits. TWELFTH ORDER OF BUSINESS Supervisors Requests Mr. Moore asked if RCS owns the two ponds that irrigation water is pumped from, as an owner asked him if a right of first refusal exists or if CDDs have some other form of protection, should RCS go bankrupt. Mr. Langhout could not specifically recall the RCS Agreement details but thought it unlikely that a right of refusal option was available and that, if RCS filed bankruptcy, RCS would reorganize or have to sell assets and the CDD or HOA would likely be first in line to bid on the asset. Mr. Adams stated the CDD, as a governmental entity, should acquire and operate the asset. Discussion ensured regarding Kolter s current process of installing infrastructure assets and then dedicating them to RCS. A Board Member introduced Mr. Mark Santasiero, as Supervisor-Elect, who ran unopposed and will be sworn in during the January 2019 meeting. THIRTEENTH ORDER OF BUSINESS Adjournment There being no further business to discuss, the meeting adjourned. On MOTION by Mr. Kerpchar and seconded by Mr. Martin, with all in favor, the meeting adjourned at 1:36 p.m. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 7
21 CDD August 8, 2018 Secretary/Assistant Secretary Chair/Vice Chair 8
22 COMMUNITY DEVELOPMENT DISTRICT 7C
23 COMMUNITY DEVELOPMENT DISTRICT NOTICE OF FISCAL YEAR 2019 MEETINGS The Board of Supervisors ( Board ) of the Verandah East Community Development District ( District ) will hold Regular Meetings for Fiscal Year 2019, at 1:00 p.m., at the Verandah Sales Office, Verandah Blvd., Fort Myers, Florida 33905, on the following dates: October 10, 2018 January 9, 2019 May 8, 2019 August 14, 2019 The purpose of the meetings is for the Board to consider any business which may properly come before it. The meetings are open to the public and will be conducted in accordance with the provision of Florida law. The meetings may be continued to a date, time, and place to be specified on the record at the meeting. A copy of the agenda for these meetings may be obtained from Wrathell, Hunt & Associates, LLC, 2300 Glades Road, Suite 410W, Boca Raton, Florida or by calling (561) There may be occasions when one or more Supervisors or staff will participate by telephone. Pursuant to provisions of the Americans with Disabilities Act, any person requiring special accommodations at this meeting because of a disability or physical impairment should contact the District Office at (561) at least 48 hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1, or (TTY) / (Voice), for aid in contacting the District Office. A person who decides to appeal any decision made at the meeting with respect to any matter considered at the meeting is advised that person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based. District Manager Verandah East Community Development District
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