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, January 11, 2024 at 1:00 p.m. via Zoom Communication Media Technology and at the Heritage Crossing Community Center, 7715 Heritage Crossing Way, Reunion, Florida. Present and constituting a quorum: Mark Greenstein Chairman Steven Goldstein Vice Chairman Trudy Hobbs Assistant Secretary John Dryburgh by Zoom Assistant Secretary June Wispelwey Assistant Secretary Also present were: Tricia Adams District Manager Kristen Trucco District Counsel James Curley District Engineer Alan Scheerer Field Manager Victor Vargas Reunion Security Garrett Huegel Yellowstone Landscape Pete Whitman Yellowstone Landscape Residents The following is a summary of the discussions and actions taken at the January 11, 2024 meeting. A copy of the proceedings can be obtained by contacting the District Manager. FIRST ORDER OF BUSINESS Roll Call Ms. Adams called the meeting to order at 1:11 p.m. and called the roll. A quorum was present. SECOND ORDER OF BUSINESS Public Comment Period Resident Ed Lenard of 7697 Heritage Crossing Way, #301, proposed converting the kiddie pool to a hot tub, similar to the other pools, as the kiddie pool was not being used and was a waste of space. Ms. Adams thanked Mr. Lenard for his comments, which would be addressed under Staff Reports. THIRD ORDER OF BUSINESS Approval of the Minutes of the December 14, 2023 Audit Committee Meeting and Board of Supervisors Meeting Ms. Adams presented the minutes of the December 14, 2023 Audit Committee and Board of Supervisors meetings, a draft of which were included in the agenda package and reviewed by District management staff and District Counsel. On MOTION by Mr. Greenstein seconded by Ms. Harley with all in favor the Minutes of the December 14, 2023 Audit Committee and Board of Supervisors Meetings were approved as presented. FOURTH ORDER OF BUSINESS Acceptance of the Rankings of the Audit Committee and Authorizing Staff to Send a Notice of Intent to Award Ms. Adams recalled that earlier today, the Audit Committee met, and as a result of their evaluation of the audit service proposals, DiBartolomeo, McBee, Hartley & Barnes was ranked the number one firm and Grau & Associates was ranked number two. On MOTION by Ms. Hobbs seconded by Mr. Goldstein with all in favor accepting the ranking of the Audit Committee with DiBartolomeo, McBee, Hartley & Barnes as the number one firm to provide auditing services and Grau & Associates number two and authorizing staff to send a notice of intent to award was approved. FIFTH ORDER OF BUSINESS Review of Current Parking and Towing Rules Ms. Adams recalled discussion on the Parking Rules in November, which currently prohibits vehicles from being covered and parked on the public roadway. Covered vehicles were subject to being issued a warning and being towed. Last month, there was discussion regarding parking rules and as a result of that discussion, Board Members wanted to review the current rules to see if they were satisfied with the way the current rules were written or consider amending and restating which requires scheduling a rule hearing. Since a rule hearing required a 28- and 29-day notice in a newspaper of general circulation in Osceola County, the earliest that the Parking Rules could be amended would be at the March meeting. Mr. Greenstein questioned the number of situations that they had with a covered vehicle stored on a roadway versus a driveway. Mr. Vargas recalled that there were at least four instances in the past year. Mr. Greenstein assumed that the rule was in place for a reason, felt that it made sense and did not wish to change it, due to it being a safety issue. Regarding overnight parking, Mr. Goldstein questioned how long a vehicle could be left in a parking space at the mailbox kiosk. Ms. Hobbs believed it could remain there forever, which did not make sense, because people should be able to have a place to park to retrieve their mail. Mr. Goldstein felt that overnight parking was acceptable, but questioned how they could control a vehicle parked for three to four days. Ms. Adams noted the rules can be updated to include a provision defining a certain number of days that a vehicle could be parked before it was considered abandoned. Mr. Scheerer noted that the Homestead mail kiosk had parking spaces dedicated to it. Ms. Wispelwey requested that Mr. Scheerer check to see if the spots were clearly marked. Mr. Greenstein believed that the point was that the mailbox parking spaces were in place for a purpose and should be open 24 hours per day. Mr. Scheerer recalled that there was signage in place, but if there were no signs, he would install them. Ms. Wispelwey noted that this did not require a change in the rules. Ms. Hobbs pointed out that the other spots, allowed parking for two hours from 8:00 a.m. to 8:00 p.m., but no overnight parking. Mr. Dryburgh questioned how this could be enforced by Mr. Vargas and his staff. Mr. Vargas indicated that they had three different shifts. Ms. Wispelwey noted it was obvious when someone was parking there for days. Mr. Dryburgh pointed out if a car was parked and not moved for the entire week and security was called, they should be able to do something about it. Ms. Adams stated that the current rules allowed for an investigation and communication with vehicle owners, but it could not be enforced with towing. Mr. Dryburgh felt that if someone parked there and went on vacation for a month, the car should be towed after a week. Ms. Adams indicated that this required a change in the rules to allow for towing, as the current rules did not allow for towing abandoned vehicles. The Board could schedule a rule hearing to amend the Parking Rules to tow vehicles that had not been moved for a seven-, 14- or 21-day period for example. Ms. Hobbs questioned how often security dealt with these matters. Mr. Vargas recalled that it occurred three times last year. Mr. Greenstein pointed out the issue was limited parking at the Valhalla playground on the west side and there being only a handful of places where there were extra parking spaces. He felt that the rules were sufficient for the time being, but they needed to have good feedback from security as to whether there was a need for further review. However, there needed to be sufficient signage at the mail kiosks. Ms. Adams noted that Section 5.3.2 of the existing rules, referred to parking within a certain vicinity of the mailbox kiosks and was intended for in and out parking and not for parked vehicles. There was discretion about the signage and putting a time limit on the parking. Ms. Trucco recommended having specificity in the rules that that the parking spaces should only be used for people utilizing the mailbox kiosks. Ms. Adams recommended that the Board authorize the Field Operations Manager to take an inventory on the signage for the mailbox kiosks to ensure that the limitation was for 15-minute parking, revisiting the Parking Rules when another rule hearing was scheduled for overnight parking and establishing limits for daytime parking. Ms. Wispelwey questioned whether parking within 20 feet of a stop sign was enforced and if a provision could be added to the rule for parking within 10 feet of a fire hydrant. Ms. Adams recalled that the rule included provisions for no parking within 30 feet of a stop sign; however, the District was generally prohibited from enforcing traffic laws. The District does have the ability to regulate parking on a public roadway. She suggested that security monitor the situation and issue warnings if someone was parked too close to a fire hydrant. Ms. Trucco indicated that Section 5.5.1 allowed for any vehicle parked in violation to be towed at the vehicle owners expense by a towing contractor approved by the Board but it did not hurt to add a provision regarding fire hydrants. Ms. Adams pointed out that the first step would be a warning and trying to communicate with the vehicle owner. Ms. Trucco stated they could also have the Sheriff’s Office come out to ticket them if in violation of Florida law and agreed with Ms. Wispelwey’s suggestion to include a provision regarding fire hydrants. Mr. Goldstein was in favor of scheduling a public hearing for March, in order for security to have amended rules. There was Board consensus. Mr. Goldstein MOVED to schedule a rule hearing for March 14, 2024 at 1:00 p.m. at this location to amend and restate the Parking Rules as stated above and Mr. Greenstein seconded the motion Mr. Greenstein suggested coming up with a comprehensive list of rules, in order to enforce the rules as issues come up and have minimal impact on the community. On VOICE VOTE with all in favor schedule a rule hearing for March 14, 2024 at 1:00 p.m. at this location to amend and restate the Parking Rules as stated above was approved. Ms. Adams pointed out that amended parking rules would be provided to the Board at the February meeting for further review and input, to include language for parking at the playground and mailbox kiosk, in the vicinity of fire hydrants, in accordance with State Law and for abandoned vehicles. SIXTH ORDER OF BUSINESS Consideration of Proposals for Seven Eagles Fountain Refurbishment or Replacement A. UCC B. Yellowstone Ms. Adams recalled at the last meeting, the Board delegated authority to Chairman Greenstein to interface with Kingwood Orlando Reunion Resort (KORR), to determine their willingness to participate in funding the Seven Eagles fountain improvements. Mr. Greenstein reported that Ms. Wispelwey’s suggestion to see if Reunion Resort would contribute to the fountain project, was a good one, as the General Manager, Mr. Anthony Carll, recognized the aesthetic benefits to Linear Park as well as the entrance to Seven Eagles and agreed to contribute 50/50. In addition, they had a contractor who worked on Crystal River and KORR’s new acquisition, the former Nickelodeon Hotel that could provide proposals. Mr. Goldstein clarified that it was not Nickelodeon Hotel, but World Quest. Mr. Carll requested an additional two weeks to provide renderings and proposals and hoped was to have something specific by the next meeting. Ms. Wispelwey asked if the 50/50 was for the least expensive fountain. Mr. Greenstein confirmed it was for the least expensive fountain and the proposal package from UCC Group was for both locations. At the Reunion West CDD, there was a parcel at the intersection of Whitemarsh Way and Muirfield Loop that must be leveled. Mr. Scheerer obtained a proposal from All Terrain for $41,945 to remove the dirt and hydro seed it, but Mr. Carll offered to take the dirt and restore the property at no cost. The hope was to have the fountain project underway in the Spring. SEVENTH ORDER OF BUSINESS Staff Reports A. Attorney Ms. Trucco finalized the Irrigation Agreement with KORR and this item would be removed from their task list. She was continuing to follow up with the attorney for the Osceola County Sheriff’s Office (OCSO) on the Traffic Enforcement Agreement, as there may have been some personnel changes that could be causing the delay. As soon as she received an update, she would bring it back to the Board. Regarding the Vertical Bridge Easement Funding Agreement between the District and Rowstar LLC., which was approved at the last meeting, Ms. Trucco checked to see if the tract was conveyed by deed. It turned out that it was not yet deeded to the CDD and she reached out to EHOF Acquisition II, LLC’s counsel to find out if the tract was completed and ready to be conveyed to the CDD. They would work with them to ensure that everything was satisfied such as liens or encumbrances on the property and make sure the title work was ordered. Ms. Trucco believed that this is the parcel Vertical bridge wanted an easement over for cell phone tower access and would confirm this. The idea was for it to be owned by the CDD, but it had not yet been conveyed. Mr. Greenstein recalled that Vertical Bridge requested a Licensing Agreement from the CDD, to allow them to go onto CDD property to install a cell phone tower. The tower would not be on CDD property, but in order to install it, Vertical Bridge would need go onto CDD property to access it. The parcel was in Reunion Village along I-4. Ms. Adams stated that before there were any legal or engineering work, because of the billable hours, they asked if Vertical Bridge would enter into an Easement Funding Agreement and fund any costs up to $5,000. Subsequent to the publication of the agenda package, the agreement was fully executed and all plans including billboard schematics, were requested, in order to be reviewed by legal and engineering staff. Mr. Greenstein asked if they were willing to pay the fee. Ms. Adams stated that their initial offer for access and maintenance of the property, was included in the requested documents. Ms. Trucco pointed out that this item would be included on their task list to keep track of it and ensure that once the work was completed, the tract would be conveyed to the CDD. Mr. Greenstein pointed out in the past, the Board did not approve a billboard or anything commercial on CDD property. Ms. Adams understood that the Florida Department of Transportation (FDOT) denied access through the I-4 corridor due to public safety reasons and the CDD Board had the ability to not approve the access request. Ms. Trucco would continue to update the Board. Regarding the KORR swap of conservation land that was discussed a couple of months ago, counsel is reviewing. Counsel requested a conference call with Trustee’s counsel on issue, but it had to be rescheduled. They were trying to coordinate a time. B. Engineer Regarding the southbound right turn lane onto Spine Road from Old Lake Wilson Road, Mr. Curley reported that they reached out to the county, to obtain their schedule and were still trying to find out. Ms. Adams asked if they were able to access the improvement or design plans. Mr. Curley indicated that they were unable to access any. Mr. Goldstein did not believe that the county would allow a left-hand turn. Yesterday, there was a highway patrol car directing traffic, allowing cars to go both ways. Mr. Greenstein assumed that the intersection did not meet a certain requirement, explaining that the engineer was tasked by the Board to contact the county, to see if they would work with the CDD to improve the intersection prior to the Old Lake Wilson Road widening. Mr. Curley reported that the Surface Transportation Program (STP) for fire truck access, was submitted for the gates on Spine Road, approved by the county and the work could now proceed. The next step was preparing the Roadway Improvement Plan and adding approximately 10 to 15 speed tables, golf cart crossings, etc. The concept would be the same as Reunion West. Ms. Adams pointed out that finalizing the bid documents was a priority for District management and engineering. Since the estimated cost for the road work, milling and resurfacing and any other work exceeded the minimum threshold, a public bid process was required. Ms. Adams would work with the District Engineer to finalize the form of the notice, publication and sealed bid opening and issue it by the end of the month. The goal to include proposals in the March agenda package. As stated by Mr. Curley, any speed tables would be priced as an optional item. C. District Manager’s Report i. Action Items List Ms. Adams presented the Action Items List for Reunion East, which were included in the agenda package. The delay with the Reunion Village gate, was that they needed to demonstrate ownership of the parcel and were waiting for a deed from Encore Development Group, which District Counsel was working on. Mr. Boyd completed the evaluation of bond funds used for The Stables parcel and the amount was in excess of $1 million. Once the final amount was determined, District Counsel would work with Bond Counsel, but at the next meeting, Ms. Adams suggested that the Board could direct staff to solicit proposals for appraisal services to keep the process moving. Ms. Hobbs questioned the amount of land that was included in the parcel. Ms. Adams did not recall, but an estimated size of the parcel was on the property appraisers website. Mr. Greenstein recommended putting the evaluation of bond funds on hold and proceeding with a commercial appraisal to evaluate the project, as the Bond Trustee was requiring a fairly substantial fee, anywhere from $10,000 to $20,000. However, if they decide to dispose of the property, the Bond Trustee must get involved. Ms. Trucco pointed out that the first step was to determine the amount of bond funds used by having the District Engineer certify the amount by looking through requisitions, because if 10% of the entire bond issuance was already deemed used for private purpose Bond Counsel must perform a tax analysis. As long as a private company was coming in and making private profit off of it, they did need a tax analysis, but it may be inevitable depending on what the ultimate desire from the Board was on use. The first step was to obtain the number and then speaking with Bond Counsel about what made the most sense. Mr. Greenstein noted that the property was under a Management Services Agreement (MSA), just like the Seven Eagles MSA. Ms. Trucco confirmed that Bond Counsel already approved an MSA for this parcel so an additional arrangement like that was possible, but if the District wanted a private company to build a restaurant or sell the property for example, they would need a tax lawyer to look into it. Ms. Adams reported that they were updating the flooring and adding mats at the Seven Eagle Fitness Center. The signs that were converted in Spanish were received and would be installed before the end of the month and the Field Operations Manager was obtaining proposals for the flooring and janitorial bids. Regarding the review of property ownership in accordance with the Development Plan, instead of having parcels conveyed to the District in piecemealed order, there would be a thorough investigation by District Counsel. The other remaining items on the Action Items List, were for the Reunion West CDD. ii. Approval of Check Register Ms. Adams presented the Check Register from December 1, 2023 through December 31, 2023 in the amount of $3,412,667.64. There were some large transfers to the Bond Trustee. When property owners pay their tax bills, Osceola County separated the amount that goes to the CDD and does an electronic transfer to the General Fund. The General Fund retains the portion that was for the Operation and Maintenance (O&M) Budget and the portion for the debt service fees, was transferred to the Bond Trustee. There was also a large transfer of $500,000 from the General Fund to the Repair and Maintenance (R&M) fund, in accordance with the Adopted Budget for Fiscal Year 2024. They preferred to transfer monies into an interest-bearing account earning 5.48%, sooner rather than later, due to interest rate earnings. On MOTION by Mr. Greenstein seconded by Ms. Hobbs with all in favor the November Check Register was approved. iii. Balance Sheet and Income Statement Ms. Adams presented the Unaudited Financial Statements through November 30, 2023, which were for informational purposes. No Board action was required. They typically paid attention to the amount of funds in the General Fund, R&M Fund and tax revenue received by the end of November. More funds were received in December than November. They also look at the spending relative to the prorated budget. Debt service payments scheduled in November, were now populated. iv. Replacement and Maintenance Plan Ms. Adams presented the Replacement and Maintenance Plan for Fiscal Year 2024, which was a list of the projects approved, in process or completed. It was for informational purposes. D. Security Report Mr. Vargas provided the December Security Report under separate cover. It details the activities with the Reunion security team on behalf of the Master Association. EIGHTH ORDER OF BUSINESS Other Business Regarding the request from Resident Ed Lenard, to convert the kiddie pool to a hot tub, Mr. Greenstein questioned if there were similar requests in the past. Mr. Scheerer recalled a similar request being made eight to ten years ago to convert the kiddie pool. It was not as simple as removing the kiddie pool and installing a hot tub, as it must be completely redesigned as a spa and permitted. The estimated cost at the time that the request was made, was in the $50,000 range. If the Board wanted to proceed, they must try to find a company to do the design and submit to the State of Florida and Osceola County for approval, go out for permitting and send out for bids. Ms. Adams pointed out that a redesign cost more than an initial installation because of all the demolition involved. Because this was a government project, it was a public project and the requirements may be above and beyond a residential pool. Ms. Wispelwey noted that it sounded good, but wanted to know if there was interest from residents that lived in that area. Mr. Scheerer recalled that there was interest from Ms. Sarah McGowan and her friend and offered to start the research. They must come up with a site plan and then determine the cost. Mr. Greenstein agreed that there must be a demand for it and they would have to plan accordingly with their capital expenditures; however, they could contact the Heritage Crossing Condo Association for their input, as it would benefit Heritage Crossing more than other areas in Reunion East. Ms. Adams suggested contacting Ms. Pappas who was on the Condo Association, to poll all Heritage Crossing owners to see if there was interest for converting the kiddie pool into a spa. Mr. Goldstein felt that it was a tough decision to make because the money would come from the entire resort for one area that would benefit from it. In addition, there were hot tubs in other locations that the Heritage Crossing could use. Ms. Hobbs asked if they could issue a special assessment. Ms. Adams indicated that the Board had the ability to issue a special assessment; however, there was a precedent of the Board making amenity improvements and the possibility of all residents of the District using the spa. Mr. Goldstein requested that this matter be tabled and that Mr. Scheerer provide cost estimates for the design. Ms. Adams would request a position statement from the Heritage Crossing Condo Association. NINTH ORDER OF BUSINESS Supervisor’s Requests There being no comments, the next item followed. TENTH ORDER OF BUSINESS Next Meeting Date – February 8th, 2024 The next meeting was scheduled for February 6, 2024 at 11:00 a.m. ELEVENTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Goldstein seconded by Mr. Greenstein with all in favor the meeting was adjourned. Signature - Tricia Adams Signature - Mark Greenstein Secretary/Assistant Secretary Chairman/Vice Chairman