MINUTES OF MEETING REUNION EAST COMMUNITY DEVELOPMENT DISTRICT

The Regular Meeting of the Board of Supervisors of the Reunion East Community Development District was held on Thursday, April 13, 2017 at 4:00 p.m. at the Heritage Crossing Community Center, 7715 Heritage Crossing Way, Reunion, Florida.

Present and constituting a

Carlton Grant

Mark Greenstein

Steven Goldstein

John Dryburgh

Don Harding

Also present were:

George Flint Andrew d' Adesky Steve Boyd Alan Scheerer Brian Smith

quorum were :

\.

Chairman

Vice Chairman

Assistant Treasurer

Assistant Secretary

Assistant Secretary

District Manager

District Counsel

District Engineer

Field Manager

GMS

FIRST

ORDER

OF

BUSINESS

Roll Call

Mr. Flint called the meeting to order, and roll call was taken.

SECOND ORDER OF BUSINESS	Public Comment Period

There not being any, the next item as followed.

THIRD ORDER OF BUSINESS

Approval  of the  Minutes

16, 2017 Meeting

of

the  March

Mr.

Mr.

Mr.

Mr.

Flint: Are there any additions, deletions, or corrections to those Greenstein: I think those were some of the clearest minutes I've Goldstein: They were easy to read. Greenstein: And accurately transcribed.

minutes? ever read.

Reunion East CDD

Regular Meeting

FOURTH ORDER OF BUSINESS

Review  and  Acceptance

Year 2016 Audit Report

April 13, 2017

Page 2 of 9

of  the  Fiscal

Mr. Flint: The Board went through a competitive	selection and picked McDirmit Davis,		
											
and as a	governmental entity, we are required to have an	independent audit performed annually.		

This audit is				of Florida. If there are any issues those will be reflected in		
		submitted to the State			
the						page 38. You can see, we still have an issue with mandatory		
management letter that starts on			
principal  and  interest  payments  on  the  2002A2  and  2005  bonds  and  the  reserve  fund		
requirement on the 2005. If the Board remembers, we went through the process of restructuring		
the  bonds  and there  were  some  bonds that were  left out.  This  is  related to that  issue.  The		
bondholders made a decision when we	refinanced to not tender these bonds. They knew they		
									
were unassigned to specific property and they hoped they could assign those bonds to property		
that isn't	currently paying assessments. That was the basis	of the discussion that was going on		
between Trustee's	Counsel and LRA primarily. Those two	attorneys have been communicating		

and we have stepped back and let them do that. I don't know ifwe have any more information.		
Mr.	d' Adesky: We	will report to the Board if we do hear something, but we have not		
heard								I assume they are either working hard on		
anything from them for over two months now.			
something	or not	working at all. Either way, we do not need to press this because we have done		
					
our due diligence.									
Mr.	Greenstein: This finding was included in the 2015 audit, wasn't it?		
Mr.	d' Adesky: Yes sir. It has been included in every audit for a while now.		
Mr.	Flint:		At  this  point,  the  discussion  is	between  the  Trustee's  Counsel  and  the		
										
landowner. It may come back in front of the Board at some point for action, but at this point		
there is no action the Board can take. This audit is provided to the Auditor General's Office and		
the Department of	Financial							
					Services. They do monitor when there are findings like this, so we		
may get a letter asking for	clarification. In the past when	we have received one of those letters,		
								
we have			more detail and it stopped there. There was no further investigation on behalf		
provided			
of the												
governor. Other than that finding, it is a clean audit. Our recommendation would be for		
the Board to accept the audit and							
					authorize us to transmit it to the State of Florida.		

On MOTION by Mr.	Greenstein, seconded by Mr. Harding,		
			
all in favor, the Fiscal Year 2016 Audit Report was accepted		
District Staff was authorized to transmit to the State of Florida.		

with and

Reunion East CDD

Regular Meeting

April 13, 2017

Page 3 of 9

On	MOTION by Mr. Greenstein, seconded by Mr. Harding, with	
all	in favor, the Fiscal Year 2016 Audit Report was accepted and	
District Staff was authorized to transmit to the State of Florida.	

FIFTH ORDER OF BUSINESS

Consideration

Management
Management,

of with Inc.

Aquatic	Plant	
Applied	Aquatic	

Mr.	Flint:  Alan, do you want to present that to the Board?	
Mr.	Scheerer: Included in your agenda is a proposal for Aquatic Plant Management. We	
are  seeking to  extend the  contract for  Applied Aquatic Management for  another year.  The	
numbers are the same.	
Mr.	Flint: Applied Aquatic does a very good job. They may be programmed to be out	
here once a month but they'll come out 3 times a week if they have to. Whenever we call, they	
are very responsive. That's not always the case with lake maintenance companies.	
	On MOTION by Mr. Greenstein, seconded by Mr. Harding, with	
	all in favor, the Aquatic Plant Management with Applied Aquatic	
	Management, Inc. was approved.	

SIXTH ORDER OF BUSINESS	Presentation	of Survey  Results  for  Re-		
				
	Purposing Options of Horse Stables		

Mr. responses.

Flint: I	am going to hook up the projector. We sent out a survey and received 408	

Mr. Dryburgh: Would these facilities present any kind of benefit to the Resort?

Mr. Grant: There are many options, but they all take investment. Even this building we are in, needs investment because you can't hold a high-end business meeting in here. Mr. Flint: There's not much, but there are things like tom fabric on the wall that would have to be fixed. Mr. Greenstein: I think we need to learn from what we have done in the past and know what the current structure of the MSA is with Seven Eagles. The most efficient thing we can do for all parties would be to work diligently to see how we can get this facility back online under an MSA and include the stables. Then we can figure out what it is going to cost to bring it up to speed, how we will cover those costs, and how we will move forward under an MSA.

Reunion East CDD

Regular Meeting

April 13, 2017

Page 4 of 9

not be ideal. Ultimately, if we cannot partner with the resort then the alternative would be for	
the CDD to get some staff to do the programming and management.	
Mr. Goldstein: It could be a combined investment.	
Mr.	Flint: Yes, it definitely could.	
Mr.	d' Adeskey: To a certain extent. Obviously, the MSA with Seven Eagles they are	
still managing it in a way that does not benefit the residents. We have to be careful when we say	
it is a resort amenity, because that implies it is a community amenity. We have to make sure that	
is not crossing a line into private use. That is why MSA have their pluses and minuses. Why	
don't we make a motion to go forward with looking into that more?	
Mr.	Dryburgh: What do we have to do to make it be beneficial to the resort?	
Mr.	Harding: We will need to look through our options.	
Mr.	Greenstein: We have plenty of time, this building is leased for 6 more months. So,	
we have time to find the best option.	
Mr.	Flint: The Board may want to delegate authority to one of the Board members just	
to be the point person. The problem is, Carlton is on the Board. We have Sunshine issues if we	
have a Board member involved in	
	communicating with Carlton outside of the meeting. Either	
someone else from Salamander would have to be involved or we'll have to work around that	
issue. It's difficult	
	because you can't delegate authority to a Board member to talk with Carlton	
outside of a meeting. We could always schedule a workshop.	
Mr.	Dryburgh: I think there is enough information on the survey for Carlton to go back	
to his management and tell them what the people are most interested in.	
Mr.	Flint:  Maybe the  CDD could make some capital  investment that might make it	
appealing to the resort. If you fill a niche that both parties have, that would be ideal. Is Carlton	
going  to be the  designated person to  deal with this  issue,  or  is  someone  else going  to  be	
designated to communicate with Daniel Baker?	
Mr.	Greenstein: I think to avoid any appearance of a conflict, Carlton needs to remain on	
the side with Daniel. I will volunteer to be the point person.	
Mr.	Flint: So, you will need to meet with me and Daniel. Since there is no delegation of	
authority we do not need a motion.	

Reunion East CDD

Regular Meeting

SEVENTH ORDER OF BUSINESS

April 13, 2017

Page 5 of9

Discussion	of	Community	Sign

Standards  and  Enforcement  of  CDD
Signage Policy

Mr. Flint: The District has adopted a sign policy. It is in our policy that there will be a		
standard for	enforcement but we are not specific on what that policy is. So, the POA should set		
				
the Community designed standard and the CDD would voluntarily comply with that standard.		
We put together an inventory of signage. I was talking with David earlier today and one	of the		
issues we talked about was that we can't have any marketing signs in the community.	If you		
allow one entity to have marketing signs you open				
			yourself up to other entities having to be		
provided the same benefit. Andrew drafted the policy, and the thought process was that the		
signage on	CDD property would be strictly	directional signs. Right now, we just have too many		
					
signs that do not follow community guideline standards.			
Mr.	Dryburgh: There are a lot of Encore signs.				
							
Mr.	Flint: Yes, there are a slew of	them. It's really up to the Board, but if we were to		
enforce  our existing policy  we  would  be  sending  a	letter  indicating this  sign needs  to  be		
removed. We give them a certain number of days to do	that.			
Mr.	d' Adesky:  We've  been withholding enforcement,  so  we  don't need to  approve		
anything we need to direct George to enforce the guidelines.			
Mr.	Flint: We need to get on a maintenance program with the signs. Once we get all the		
extraneous signs out and get focused down to the core directional signage, we can probably get		
on a maintenance					
		schedule to get the ones we have cleaned and fixed up. We will draft a letter		
and attach pictures of the signs and give them a certain amount of days to comply. Before the		
letter goes out we will make a phone call. We may have some folks who aren't happy.			

EIGHTH ORDER OF BUSINESS

Discussion

Courts

of

Installation

of

Bocce Ball

	Mr. Boyd: There is a			
	diagram in your agenda for the bocce ball court. There have been		
many	requests for this from the residents. We refurbished the fitness center, and we installed a		
			
new billiards table, ping pong tables, and foosball tables. The bocce ball courts proposed were		
going to be on the grass area just on the left of where the bar is now. The diagram shows the		
layout	of the  courts.  It  is  low	maintenance but good  quality.  The  expense  is  going to  be		
				
burdened by the club and will cost about $18,000 per court. It is around a $35,000 investment.		

Reunion East CDD

Regular Meeting

Mr. Flint: What contractor are you looking to use? Mr. Boyd: Welch Courts.

April 13, 2017

Page 6 of 9

On MOTION by Mr. Harding, seconded by Mr. Goldstein, with all in favor, the installation ofBocce Ball Courts was approved.

NINTH ORDER OF BUSINESS

Staff Reports

A.

Attorney

Mr. d' Adesky: I did not have too much to do	this last month, which is a good thing. I		
will							
mention again, I have not heard anything from the Trustees concerning the settlement. I do		
need to report on Action Item 7, the	allocation of 532 and 545 right-of-way maintenance costs.		
				
The  last  meeting  got  the  ball  rolling,  and  Osceola  County  has  been  very  busy  but  after		
contacting them several times	I was able to get	someone on the phone and we talked through		
					
some potential ideas on how to deal with this allocation. He did agree that since these properties		
are coming online, we have to	reassess how we look at this maintenance.	He offered to facilitate		
the meeting between ourselves and the private			looking for us to give		
		landowners. He was just			
him a list of the lots and landowners that we think are	receiving a benefit from this. The County		
						
is  very  understanding that this  is  going  on.  Their thoughts  were  that we  should enter into		
cautionary agreements with the  private entities as they are  willing to  do  so.  The  interlocal		
agreement does not require us	to keep any					
		particular area in a particular condition. Meaning, we		
do not have to keep every part	of the right-of-way in the same condition. That is all I have.		

B.	Engineer

Mr.	Boyd:  I  have  two  things.  One  is  the  current  status  of the	signal  plans.  The		
engineering consultant is			
	designing the signal. Those are 60% plans, and we should have plans		
submitted to the County before the next meeting, that are close to 100%. I	did talk with them		
about cost. They believe the installation cost including			
	purchasing 2 additional arms is going to		
be $100,000.			
Mr.	Harding: So, the cost to the CDD would be about $100,000?			
				
Mr. Boyd: That is the number they gave me.			
Mr.	Flint: That's a low number. We need to make sure the development across the street		
is not going to be tying into that			
	intersection. That would totally change the design. Even if we		

Reunion East CDD

Regular Meeting

April 13, 2017

Page 7 of9

Mr. Harding: So, the cost to the CDD would be about $100,000?

Mr. Boyd: That is the number they gave me.

Mr. Flint: That's a low number. We need to make sure the development across the street is not going to be tying into that intersection. That would totally change the design. Even if we were to cost share with the property across the street, it is going to cost about the same or more than this option. Mr. Greenstein: I think so too.

Mr. Goldstein: That is what I was wondering.

Mr. Flint: We will process all that information. Did you mention when we think it will be done?

Mr. them to the Mr. Mr. house?

Boyd: I'm pushing to get the final plans done in the next 3 weeks. Then submit County before we come back for the next meeting.

Grant: That would be great. Flint: You also had a proposal for the engineering services related to the guard

Mr. Boyd: I need to go out and pick up the architectural and the survey and services. We will need a survey, that will be between $3,000 to $5,000. Then we need the architectural design. Once we have it surveyed, we could go ahead and prepare the site plans. The site improvements have to be approved before the architect can submit a building permit. Mr. Dryburgh: We have residents coming back to us thinking that if we put a large sign there it will be enough, they don't want a manned gate. I am getting that from a number of people. Mr. Greenstein: Where is the overflow of cars going to go? We have an issue at the front

now. There is no place to put cars at that location.

Mr. Harding: Security wants that manned gate there now. They're spending as much money now parking a car there as we would with a manned gate. Garold is totally in favor because it is a security issue and a traffic issue.

Mr. Greenstein: I think we agree Steve Boyd can come up with a draft plan for that guardhouse site. He can share that with the County and as long as they say it can work, we will consider it.

C.

District Manager's Report

Reunion East CDD

Regular Meeting

April 13, 2017

Page 8 of 9

ii.

Approval

of

the Check Register

Mr. Flint: We can discuss any				
questions about the check register for the month		
totaling $709,137.76.				
On MOTION by Mr. Greenstein, seconded by Mr. Dryburgh, with		
all  in  favor,  the  Check	Register  for  the  month	of March  was		
				
approved.				

of

March

Mr.

required.

iii.	Balance Sheet and Income Statement

Flint:	If	there  are  any  questions	we	can  discuss  them  now,  there	1s	no  action	

iv.

Status

of

Direct Bill Assessments

Mr. Flint: If there are any questions we	can discuss them now. I wanted to introduce	
Brian Smith, he joined GMS on Monday. Brian is an	
	operation manager similar to Alan. Brian	
was the operations manager for the		
Celebration's CDD for 23 years, as well as 10 other CDD's.	
We		
welcome Brian, he is going to be a great asset to our	
	organization and will give Alan some	
relief. Right now, he is getting familiar with the various Districts we manage.	
TENTH ORDER OF BUSINESS	Other Business	

Mr.

Flint:

Any

other business?

ELEVENTH ORDER OF BUSINESS	Supervisor's Request	
There not being any, the next item as followed.	
TWELTH ORDER OF BUSINESS	Next Meeting Date	
May 11, 2017 at 2:30 p.m.		
THIRTEENTH ORDER OF BUSINESS	Adjournment	
There being no further business,		

Reunion East CDD

Regular Meeting

April 13,2017

Page 9 of9

On

MOTION

by Mr.

Greenstein,

seconded

by

Mr. Goldstein, with

all

in

favor, the meeting was adjourned at 5:30 p.m.

Secretary/Assistant Secretary	~~		
	Chairman/Vice Chairman