MINUTES OF MEETING LAKE ASHTON
COMMUNITY DEVELOPMENT DISTRICT
The regular meeting of the Board of Supervisors of the Lake Ashton Community Development District was held on Monday, May 20, 2019 at 10:30 a.m. at the Lake Ashton Clubhouse Ballroom, 4141 Ashton Club Drive, Lakes Wales, Florida 33859.
Present and constituting a quorum:

Mike Costello Borden Deane Bob Ference Robert Plummer Murray Zacharia
Also present:
Jillian Burns Andrew d'Adesky Christine Wells Matt Fisher
Numerous residents

FIRST ORDER OF BUSINESS

Chairman Vice Chairman
Assistant Secretary Assistant Secretary Assistant Secretary

District Manager District Counsel Community Director
Field Operations Manager

Roll	Call	and	Pledge	of Allegiance

Ms..Burns called the roll and established a quorum was present and led the pledge of allegiance.
SECOND ORDER OF BUSINESS	Approval of the Meeting Agenda
Mr. Costello: Good Morning. I would like approval of the meeting agenda.

On MOTION by Mr. Deane seconded by Mr. Ference with all in favor the approval of the meeting agenda was approved.

THIRD ORDER OF BUSINESS	Public	Comment	on	Specific
Items on the Agenda (speakers will fill out a card and submit it to the District Manager prior to the beginning of the meeting)
Mr. Costello: Public comments. I have two requests. Brenda Vansickle.

Ms. Vansickle: Good morning. After attending the COD budget workshop I have a few concerns. An effort to save and money and cut costs is admirable, but please don't

 	

May 20, 2019	Lake Ashton CDD

endanger the level of services we have come to expect here at Lake Ashton. One of my concerns was security and the discussion of combining the contracts and having the West control it. I would urge you to please don't go that route. If you want to use the same vendor please have a separate contract as Jill has pointed out. Once you give that away you lose the responsibility and majority to do anything. We use separate contracts with other vendors such as the landscaping. That has worked very well. Plus they mentioned that an interlocal agreement can be used to handle any difficulties with that. Please remember that an interlocal agreement can be very difficult to get out of. Both sides would have to agree should any differences occur down the road. As an elected official you need to be able to answer to the people that elected you and if you give that responsibility away you would not be able to. We have some wonderful dedicated security officers who perform over and above for us. Please don't take that loyalty for granted and replace it with someone who just puts in their time. Recently one of our security officers prevented what could have a very bad accident because she was paying attention. I would like to say that all our security officers are that good. We have excellent ones and then we have some that have put in their time. Please consider checking on that and maybe clearing out the dead wood. Sharing a rover would not increase our coverage, it would lessen our coverage immensely. Statistics have shown that we have very little activity between midnight and 6:00 a.m. We need to consider the scheduling of events and coverage at those events and all the cost cutting efforts. Please don't neglect needed maintenance. Our security golf carts are ready to go. If having the same security vendor is so important, why don't we use the same amenity management vendor? Getting back to the rover, if a pool officer is cut, I didn't see any money for that in the budget so that rover, that is a duty that they would have to assume. They also provide extra services to residents, traffic details, and accident reports. If something happened at both sides at the same time, where would the loyalty be? Amenity management, our staff is one of the greatest amenities. We have young people working for us with a work ethic that is not common in today's market. Please don't take them for granted. They  depend  on their job to support their families. They have proven over the years that they take care of us. Why would we put that in jeopardy and risk losing them? If there is a problem please attempt to remedy it before making a change. Too often again you get what you pay for.

 	

May 20, 2019	Lake Ashton COD

Most of us moved in here for a certain standard of living. Our residents desire more than substandard services just to cut costs. Again talk was of hiring our own employees. I don't think we can compete as a small business with what GMS or any other amenity management service could offer these young people with benefits. I would ask you to please consider that and let's not take a step back with trying to cut costs. Thank you.
Mr. Costello: Ok, we have Dana Cunningham.
Ms. Cunningham: Good morning. I have been a resident here for 16 years. I have seen many changes, mainly good ones. One issue I would like to discuss and probably piggyback on a little bit what Brenda was saying was the idea of getting rid of the flowers. This community has always focused on beauty when you come in the door and the meticulous landscaping. To see and hear that we no longer have anything blooming out here now in this beautiful springtime is a sad thing for me. It is not a place where we should try and save money. I think the annual flowers look beautiful and they need to be changed. Another thing I would like to mention is the volunteers. We have many volunteers around here that do wonderful work and there is bulletin board that is outside of the office in the hallway. My feeling is that we should honor our volunteers. We should not ask them to bring a picture in and stick it on a bulletin board that nobody can look at and see without their names on it. We have wonderful volunteers and they should not be in charge of having to do that themselves. I think that is the COD or definitely a staff duty to take their pictures and to honor them and put their names and pictures up and place it easily for people to see. I also have a couple of problems with the building maintenance. One of them is the streaks that run down the hallway for at least three weeks. I noticed that they are buffed out a little bit, but I had asked about that. Somebody dragged something up the hall. I asked if we had a buffer. We do not own a buffer so maybe that is something we need to invest in for whenever we have problems like that. Make sure that you rent a buffer and go and clean up the hallway. At the entrance there are two cigarette containers out there. There are no flowers and no bushes or anything so when you walk in the front you just look and what do you see, two cigarette receptacles. Certainly we don't need two, but. if you want to have one let's put some flowers there or some kind of foliage there that adds to the beauty of coming in the front door. Even if you are going to keep cigarette containers there they need to be cleaned and emptied at least
3

May 20, 2019	Lake Ashton CDD

daily. I also want to ask a question about the dog park. I know it is on there. I see several people here. I wanted to know why we need another dog park and who is paying for it. I also want to ask one other question of the CDD Board. Are you paid every time you hold one of these meetings?
Mr. Deane: Yes.
Ms. Cunningham: Every time? How much? Mr. Deane: $50.
Ms. Cunningham: So if you have five meetings a month you would get $50 for each meeting. Correct?
Mr. Ference: That would be great.
Ms. Cunningham: I am just curious. That was all. I especially am concerned about the maintenance and the flowers.
Mr. Costello: Thank you.
Mr. Tom Scali: This a quickie. There is a correction from the minutes that I would like to see reflected. I am just going to hand this to you so you can take care of that.
Mr. d'Adesky: Thank you.

FOURTH ORDER OF BUSINESS	Approval of the Minutes of the
April 15, 2019 Meeting
Mr. Costello: We have approval of the minutes of April 15, 2019 meeting. Mr. Deane: Motion to accept with the changes of Mr. Scali's speech.
Mr. Costello: I would like to know what the changes are.
Ms. Burns: This is just exactly what he gave to you at the last meeting.
Mr. Costello: So in other words what he is saying is, I thought it was reflected in the minutes.
Ms. Burns: We will compare it and if we need to just insert exactly what was in there. Mr. Deane: Fine no problem. I make that motion.

On MOTION by Mr. Deane seconded by Mr. Ference with all in favor the minutes of the April 15, 2019 with changes were approved.

FIFTH ORDER OF BUSINESS
Mr. Costello: Engineer's report.

Engineers Report

May 20, 2019	Lake Ashton CDD

Mr. Malave: Good morning.  I don't have a whole lot of things, just staying close to staff on whatever is needed. One option that we are looking at, we have a bid from All­ Terrain to do a stormwater review inspection twice a year through the golf course for
$7,500 and they will note where there are repairs needed, what these would be etc. etc. and that would go in hand with our two a year stormwater review that we do for S.W.F.W.M.D. We actually do one every two years because the permits are staggered for portions of the lakes. Part of that report will show an exercise some of the things that the focus is on and doing it every six months adds to making sure that they provide key elements of how to repair those or maintain those. I am just bringing that forward to you to get an approval on if you so desire.
Mr. Zacharia: Rey, question on the $7,500 that you just mentioned. Is that for just Lake Ashton East or is that for the entire golf course and an expense that would be covered in both CDD's?
Mr. Malave: lt is just ours. COD I.
Mr. Zacharia: What does it cover on the golf course? Ms. Wells: It is not the golf course.
Mr. Malave: It is the stormwater system. Around the development and through the golf course. Anything that is in our system for our permit they would walk. They are pretty familiar with it. They have worked on portions of it already.
Mr. Zacharia: And this is something that they have not done before?
Mr. Malave: They have not done before, correct. It is a way of staying ahead of the curve on knowing what needs to happen. Especially before storms, before the rainy season and after the rainy season which are probably the best times to do that.
Mr. d'Adesky: Just for the record, Rey, we have always been keeping the ponds in compliant condition, correct?
Mr. Malave: Correct and we do a letter every two years as required by S.W.F.W.M.D. We have an engineer inspection for that. We always come back with comments on maintenance issues that need to be repaired and this will go hand and hand with that.
Mr. Costello: What did you say was the cost on that? Ms. Burns: It is $15,000 a year.
Mr. Malave: It is $7,500 each visit.

 	 	

May 20, 2019	Lake Ashton COD

Mr. Costello: Ok, so that is it? Mr. Malave: That is all I have. Mr. Costello: Thank you.
Mr. Malave: Thank you and I will see you all next month.

SIXTH ORDER OF BUSINESS	Unfinished Business
A. Update on LACDD Pet Play Park
Mr. Costello: Update on the LACDD Pet Play Park.
Mr. Deane: I got with staff and we have done a lot work on the play park. We have it laid out and it is approximately 97 feet long by 70 some feet wide. We only lose one parking space in the whole creation of the play park. There will be no loss of overflow parking. The only parking space that would be lost is the last parking space up by the dumpster where we have to cut the curb to put the entrance into the play park. The total cost for the creation of the play park comes to $10,289.20. This includes 346 square feet of fencing and two 4 x 8 foot gates, the plants for around the fence, mulch, a pipeline for water, irrigation into the pet play park, a 10 X 8 section of pavers, a dog weigh station with the track attached, trash bin, an initial supply of bags, one table, ten chairs, an umbrella and base, and this would set up the play park completely to start with. It is my understanding that the HOA has donated $8,000 to this to set it up. The play park also has a bank account with a few thousand dollars in it and there will be no cost to the COD. The only problem we have is the original tees for that golf hole are located in the play park. That land is in the title of the course, not in Lake Ashton. The tees that are used for that golf hole are all on COD property. We have to get a letter from the owner giving us permission to set up the play park and titling the land in the name of the COD instead of the golf course. I am working with the lawyer to get that letter written. Once we get that I believe we should move ahead with the play park or the dog play park and get it completed. That is my report.
Mr. Costello: They are saying thank you to you.

Mr. Zacharia: A couple of questions that I didn't get a chance to ask last month regarding the play park. I did get a chance to do a site visit a couple weeks ago and reviewed where the stakes where. I am somewhat familiar with what has been discussed. One of the questions that I have about the layout is golf cart parking. Borden reported

 	

May 20, 2019	lake Ashton CDD

that we would be losing the one standard cart park space nearest the curb that is up against where the entrance would be.
Mr. Deane: Up where the trash cans are.
Mr. Zacharia: Which suggests to me that the people that are bringing their dogs to the play park in a golf cart, which on careful review it is not objected, but just when I go by the existing play parks I see people driving back and forth with dogs in their golf carts. I am assuming we would see the same thing here. Most of the arrivals would be in a golf cart. Is it being suggested that the people would arrive with their dogs in a golf cart and park in the existing golf cart parking spaces, which are over by the HOA office and the east entrance to the clubhouse. Is it more likely that  someone is going to suggest that we need to convert some of the existing parking spaces to golf cart spaces?
Mr. Costello: I would think that people would use the overflow parking that we have now because it is that much closer to the dog park.
Mr. Deane: If they use the overflow grass section, Murray, they have maybe 20 feet to walk to get into the park.
Mr. Costello: There is no telling where people are going to park. I can understand what you are saying is we are going to be inundated with too many golf carts but by the same token there is no telling where anybody is going to park.
Mr. Zacharia: I disagree because I think we can tell people where to park. We tell people what to do all the time. Many of whom don't do it.
Mr. Costello: That is my point.
Mr. Zacharia: My concern is we will have seven or eight people drive up in their golf carts, each one taking a single space even though we have unwritten rules that say put two golf carts in each regular parking space when you can. We see how that is. It is something near and dear to my heart. I am voicing a concern. The other thing that I haven't heard is how much does it cost to keep the operation and ongoing maintenance of a dog park once the $10,000 plus is paid. Is there an ongoing cost of whatever?
Mr. Deane: Basically the only additional cost would be a little bit of water. I don't know how much that would be. The grass is already being maintained. It will continue to be maintained. That is not an additional cost to anyone, it is part of their contract. The waste bags cost $84.92 for 2,000 bags and 50 trash bags and they have the money from

 	 	 	

May 20, 2019	lake Ashton COD

the dog parks to pay for that. It is no additional cost to the COD in any way shape or form. The current dog parks are run independently. They have their own bank accounts. If they make improvements they pay for them. The COD does not pay for them and that is the way we want to keep it. It is an amenity for people who own dogs but they have to improve and maintain the amenities, not the COD in any way shape or form.

Ms. Burns: We see that a lot of times the grass in the play park areas get more wear then the other areas and I just actually got a quote at another place where if you re­ seed it usually every other year it is like $500 or $600. It helps the grass stay fresh because you have a lot of dogs running and digging things up in there. Usually most Districts do every other year. That helps the grass looking good.
Mr. Deane: On the dog park in Pebble Beach we bought the sod. We laid the sod.
We put in the filter and everything else. It was paid by the dog parks, not by the COD.
Mr. Costello: Either way it is going to be minimal. I don't think we are going to spend a $1,000 a year. I think $1,000 is extremely high as far as that goes. I understand, Murray, your concern with the parking. We can tell people they have to park over there but it doesn't work sometimes. Stop signs, here they are optional.
Mr. Deane: We can put up a sign that says park along the hedges. Pebble Beach Dog Park just put in pavers for where they can park. Eventually that could be done by this dog park if they wanted to do it but the people could drive into the overflow parking. There is no way to stop them from driving in there. There is an open space and they park right next to the hedge. It is not a 20 foot walk to get into the dog park.
Mr. Ference: Do we need a motion to accept Borden's recommendation?
Mr. d'Adesky: There really is just direction because at this point I will work with Borden and get that letter out.
Mr. Deane: We can't put in a motion until we get permission to use the land.
Ms. Wells: I did ·forget one thing on the list was a sign for the rules. I have been reaching out to sign vendors trying to figure out who did their signs. The ones I reached out to haven't done it so that is one thing that is missing from the list. I just realized that.
Mr. Deane: I realized that also and I know that is not a $100 sign. Ms. Wells: Ok.
Mr. Costello: Any other comments?

 	

May 20, 2019	Lake Ashton COD

SEVENTH ORDER OF BUSINESS	New   Business   and  Supervisor
Requests
Consideration of Quote from VGlobal Tech for ADA Compliant Website
Mr. Costello: Consideration of Quote from VGlobal Tech for ADA Compliant Website.
Ms. Burns: Some of you may be aware there has been some lawsuits brought against CDD's regarding the ADA compliance of websites. As a unit of government some lawsuits were brought saying that people who are visually impaired or hearing impaired weren't able to navigate the websites. Districts ended up settling through their insurance with the lawsuits that were brought against them. As a result and due to the number of lawsuits the insurance companies have advised us that Districts need to take steps to make their website ADA compliant or else they will not offer coverage in the upcoming fiscal year. GMS has been working with VGlobal Tech, and it is actually who most of the management companies are using, as well. They have given us a bulk rate. They will either convert an existing website or create a new website that would ADA compliant. For this District, we are suggesting that you create a new website since you don't currently have your own independent website which is required by the Statutes. This would set up LakeAshtonCDD.com or .org, or whatever they end up purchasing. It will be set up ADA compliant. What that means is all the documents will be scanned and loaded in a way that if somebody has assisted devices to read text it will allow them with the software on their computer to have the minutes read aloud. The website you would notice a difference from the way you look at it essentially. There are a couple of extra links on there, but somebody who is visually impaired would be able to navigate the site. The fee to set up the website and make sure everything is ADA compliant, they will scan all the existing documents that are on the Ashton Living site, minutes, agendas, budget, ordinances, creating the documents everything that is required by the Statute that the COD needs to have online they will load all of those. There will be link for a PDF and link that you can click for an assisted device. That fee is $3,575.  It is a onetime fee. If you look there are a couple other quotes also included which are ongoing annual fees. We would suggest that you not do those once the site is set up compliant. GMS can keep it compliant. There were a couple other quotes in there, one is human audit that they are offering. We are required to do quarterly audits of the site. That option that they have there  is that they are working with a group of visually impaired people so that people who would actually

 	 	

May 20, 2019	Lake Ashton COD

be using it navigate the site to figure out if there are any issues. It is not something that is required, however if you wanted to do it you could. Otherwise GMS would just do the quarterly compliance. You would be looking at $3,575 one time.
Mr. d'Adesky: Once again, just to reiterate, this is something that we have to do. This is one of working with other management companies, this is the cheapest option that I have seen used. Once again, we have to do it to maintain our insurance coverage and stay compliant.
Ms. Burns: Some of the initial quotes we had gotten for a conversion of website were $20,000. Districts like Ashton Living that have a lot of things on them, that is why we are suggesting you pull it off and do your own site. It would probably be upwards of
$20,000 to convert everything on there plus you should have your own.
Mr. Costello: The one thing that I looked at it said beginning October 1, 2015.
Ms. Burns: It is probably a typo. You should have had your own website since then. Mr. Costello: In other words for the last four years we have been skating.
Mr. d'Adesky: It was a provision that was relatively new and the enforcement mechanism and oversite mechanism was not really clear but this issue was brought to a head and really brought up the issue to the forefront where it is pushing everyone into compliance. Anybody that did it has to have their own website now.
Mr. Deane: I make a motion that we accept the proposal and become compliant to avoid any lawsuits or any loss of insurance.
Mr. Ference: Second.
Mr. Costello: I have one question on the motion. I hate to get technical, but I am going to, back to this and the only other thing that it says is something about receiving federal funds. This was set up for people receiving federal funds.
Mr. d'Adesky: What you are talking about is the ADA that is legally how the federal government forces states to do stuff.
Mr. Costello: Ok. We have a motion on the floor. Any other questions on the motion?

On MOTION by Mr. Deane seconded by Mr. Ference with all in favor the proposal from VGlobal Tech for an ADA Complaint Website was approved in the amount of $3,575.

May 20, 2019	Lake Ashton COD

Consideration of Fee Increase to Contract with Latham, Shuker, Eden & Beaudine, LLP
Mr. d'Adesky: The next item is our fee letter. Jan put this on the agenda for most of our Districts. A lot of them we haven't had a cost of living inflation increase in a while. Looking at this District it was 2014 so essentially it is just a cost of living increase for the cost of benefits and everything that has gone up since 5 years ago.
Ms. Burns: $10 an hour.
Mr. Deane: No increase for paralegal, $10 an hour for attorney, shareholders. make a motion that we accept the lawyers increase in fees. $10 an hour over five years doesn't even keep up with inflation.
Mr. Ference: I will second that request and motion.
On MOTION by Mr. Deane seconded by Mr. Ference with all in favor the fee increase to the contract with Latham, Shuker, Eden & Beaudine, LLP was approved.

Mr. Zacharia: I missed the opportunity for discussion so I will ask a question. would vote yes anyway, but I am going to ask this question of every dollar that we spend because I think I understand the budget and I think we have been spending money this year on many things in excess of what is budgeted for those things. The question I would ask here is, is the budget that is coming before us later on in the agenda, does it include what we just approved?
Mr. Costello: According to the letter, if you read the letter here it said that we would be within what we proposed for money. Last year, yes we did have some horrible over­ runs and that was due to the fact that a lot of work was done with the golf course that was incorporated into that. I believe we have made that a separate line item now. I understand what you are saying, but by the same token the overruns of last year were due to the fact that there was no money allocated the prior year for attorney's fees for what we are doing with the golf course.
Ms. Burns: It is within the budget.
Mr. Zacharia: The dollars allocated for attorney or counsel expenses?
Ms. Burns: Right. Like always you are talking about an hourly fee, so sometimes
things come up that are going to be outside the budget.  But yes, it is taken into account	 in this budget.

May 20, 2019	Lake Ashton CDD

Mr. Costello: Unfortunately there are times where we end up with litigation that we have to have an attorney do the work. Unfortunately we can't see into the future which way things are going to go as far what our total needs are going to be. As far as past practice and everything else, I believe it is within what was budgeted.
Mr. d'Adesky: Usually it is pretty predictable. If there are routine issues that are coming up, it is usually flat, but like Supervisor Costello said, especially with the golf course, we brought this up with the golf course exactly how much legal work was going to be involved in that. That definitely threw things for a loop in terms of budgetary practices.
Mr. Ference: Are we within the budget notwithstanding the golf course for the last two years, Andrew? Is that what you are saying?
Mr. d'Adesky: Yes, prior to the golf course. GMS is pretty good about being conservative with their budgeting and bringing it in line so typically they will look at what our average is and if the average let's say for any line item, if the average is $25,000 and the actual $16,000 a year, you would bring it down to match that or come closer to that because that is your baseline. Jill of course can speak more about budgeting practices.
Con sideration of Resolution #2019-04 Approving the Proposed Fiscal Year 2020 Budget and Setting the Public Hearing
Ms. Burns: You had $20,000 in last year and if it was consistently running at
$20,000 or $21,000, then it is something that we would look at an increase. Sometimes you have a line item at $20,000 and it was consistently running at $18,000 and one year it went a little over at $22,000. We would probably still keep it the same but we do look at all of that to see if something were to happen that we don't anticipate.
Mr. Ference: So, is this increase proposed in the 2020 budget? I see it has gone up about $10,000. Does that reflect what motion we just made or is that increasing now because of the work with the golf course?

Ms. Burns: For the golf course we actually coded out a separate line item. We have the attorney at $25,000 that stayed the same and then we added a separate line item for attorney work for the golf course at an additional $25,000. Instead of having one line item for the attorney attending meetings and doing their regular work, we added another line item that would take into account.

12

May 20, 2019	Lake Ashton CDD

Mr. Ference: Where is that line item on here? Ms. Burns: Directly below it.
Mr. d'Adesky: It is on page one of the general fund budget. Ms. Burn: Attorney and then the next line attorney golf course. Mr. Costello: That was all discussed at the budget hearing.
Ms. Burns: That was one of the changes we increased. We increased the revenue for the newsletter. All of the items that we discussed at that budget workshop have been incorporated in the budget you see here. A couple things I want to point out is this budget, and Mike and I discussed this on the phone last week, and we are going to bring up today, this budget to keep assessments level contemplates spending no money on capital improvements next year at which point if you still spend no money on capital improvements you still would be over $100,000 underfunded on your reserve study. This District has not increased assessments in eight or nine years I believe. Even if you contemplated spending no money on capital projects this year this would be a very tight budget. If the Board wants to discuss increasing this budget and raising assessments that probably would be advised.
Mr. d'Adesky: You kind of have to do it based on the mailed notice that is a requirement. You have to do it by the next meeting at the latest if you were going to send out a mailed notice.
Ms. Burns: Just so everybody understands today we wouldn't necessarily be approving the increase, it would be more staff direction to publish the public hearing and send the mailed notice to every resident in the community. We need to provide them with mailed notice at which time we set the public hearing for the August meeting date and everyone will have a chance to come to speak to that at that time. If you are considering raising it what we would be looking for today is kind of a cap. We can always bring it down later if you wanted to, just not increase that amount. Once we send it out with what
the most it could be we can't go over that amount.  Keep that in mind when discussing
the number.  Perhaps you want to inflate that a little bit to give you some flexibility you	                    can have that in the mailed notice, and then bring it down but we can't go up.

Mr. d'Adesky: But to be very clear, in front you is Resolution #2019-04 is approving the proposed budget. This is actually a statutory requirement before June 15th. We have

13

 	

May 20, 2019	Lake Ashton CDD

to send a copy of the proposed budget to the County. We can change the proposed budget. It is not a final budget, but we do have to meet that statutory requirement so unless we call a special meeting this is the last meeting that we have to approve a proposed budget to send it to the County and meet that deadline.
Mr. Zacharia: Is it appropriate to offer a motion on the budget? Are we at that item, Mr. Chairman?
Mr. Costello: Yes, we are that item. Before we go into a motion, I would like to know if anybody is questioning anything within the line items before.
Mr. Deane: I am not questioning the line item, the only item I am questioning is the assessment. I think the biggest mistake that this Board has made has not raised assessments in eight years. I have never heard of it in any other development I have ever been involved. I believe we have to raise the assessments. The minimum assessment raise that I believe we should make is raise the assessment to at least $1, 800. That is an $85.59 increase. Over eight years it is a little bit over $10 a year, which is ridiculous. We may want to go higher but that would give us an $83,500 increase in our assessment funds just by raising it to $1,800. I don't know if that is enough.
Mr. d'Adesky: Just as note so that everyone knows, with mailed notice and how it works, you have to send out the ceiling so whatever you send out in the mailed notice, let's say you are going to increase it $100. That is your ceiling. You can't go and raise it
$105 or $110. So when this Board does make that decision be very cognizant of that. Whatever you send out you cannot exceed that number.
Mr. Zacharia: For clarification, is it my understanding on page 9 of the budget material that was included in the package that we are currently compared to our reserve study, and forgive me I don't that much about the reserve study, but that compared to the reserve study we are approximately $108,000 underfunded.
Ms. Burns: Correct. If we spend no money next year, Christine had the list of capital projects that totaled about $500, 000, but if we do none of them we are still underfunded by over $100,000.
Mr. Costello: I believe we have been underfunded for quite a while have we not? Ms. Burns: I would have to go back and check as I haven't been here that long so
I would have to look, but that is probably correct.

14

 	 	

May 20, 2019	Lake Ashton CDD

Mr. Zacharia: A couple months ago you made me the financial guru. Again if I am looking at these numbers, it only goes back to actually 2018 our reserve balance was
$234,000 going in and our reserves were $20,000 more than that at $254, 000. As recently as 2018 we were ok. We have had some expenditures in recent years that have eaten into some of those reserves.
Ms. Burns: I think the big issue was the two stormwater projects you did this year. Mr. d'Adesky: Those are exactly the types of things you are funding with your  capital reserve. You are looking at the useful life of this infrastructure and this side of Lake Ashton is the older side so as it is aging out you need to replace stuff at the end of
its useful life.
Mr. Costello: I would think to raise it $100 for the year, we are talking about $8 a month. We haven't raised it in eight years like Borden said.
Mr. Deane: There has been no increase since 2008. That is ten years.
Ms. Burns: Just a suggestion, if we wanted to reflect it in this budget that perhaps what we would want to do is let's say you wanted to add maybe $100,000, the transfer into the capital reserves, we would essentially show it as an additional $100,000 going to the reserves. That would kind of take care of the amount, $100 would be doing math off the top of my head there are around 976 homes, so it would be about $105 a household.
Mr. Deane: $110.
Ms. Burns: Did you just do the math? That was pretty close for off the top of my head though.
Mr. Deane: That is still not doing any capital projects. I think we should put $150 figure in there. That is my opinion. We know another stormwater repair that we are going to have to face that we talked about already. If the golf course is purchased we can do it a lot cheaper rate than the quote we had. If the golf course is not purchased you are looking at another $200, 000 stormwater repair. I think we have to definitely raise the condition of the assessment and if we go up $150 or $1,850 we would not cover that debt if it happened. It wouldn't be enough to cover that debt.
Mr. Plummer: Do I understand that what number we say today is the ceiling that we set it is not the final?
Mr. d'Adesky: That is correct.

15

 	 	

May 20, 2019	Lake Ashton CDD

Ms. Burns: So let's say that you thought you wanted to do $150. It may not be a bad idea to put $200 in the notice. You want to find the balance of everyone freaking out at the notice level and what you actually want to do. I would not advise putting $500 in there because you cause some panic when that is not your intention of doing to that level. I would suggest doing it a little bit over what you think you are going to do to give yourself some flexibility but not so high that it is really artificially inflated.
Mr. Ference: Jill, why wouldn't we do $100 now then next year if we needed more we do another $100 without scaring people?
Mr. d'Adesky: I will say typically, Bob, and this is just more of a political suggestion than a legal suggestion, typically doing it once is received better than doing it every year.
Mr. Ference: Would we scare people and say we are going to do a $200 maximum and they say oh my, I am selling my house. You'd think the lesser number would be more satisfying to the population.
Mr. d'Adesky: Typically people don't even want a $20 increase.
Mr. Ference: I am just wondering because we do have a choice every year.
Mr. Costello: You do realize that what we are doing right now is we are setting a ceiling. We can say $200 and then come back and look at the numbers and say alright we can get by at $130.
Mr. Ference: I am just saying that $200 will scare people more than $100.

Mr. Deane: The thing about it, Bob, if you say $200 or $250 now and say we only raise it $150 we are really going to look good. It will be $100 less then we said we were going to do. I think we should put enough money in there to cover. People have to understand that in ten years they haven't had an increase and that is what was done wrong by this Board. We should make that known to the residents. That way when you take that ten years into consideration raising it $200 over ten years is $50 a year.
Ms. Burns: So let's say we ended up doing the notice at $200 and you ended up doing $150, you would put $150,000 of additional money in reserves this year. Next year you would also have the $150, 000. If you are conservative it is going to continue to grow if you are taking into account that you are putting on an additional $150,000 and spending
$250,000. We need to look at some of the capital projects and probably be conservative with those. It is going to increase the amount being put into reserves.

16

 	

May 20, 2019	Lake Ashton CDD

Mr. d'Adesky: What you don't want to get is a situation where you are in the middle of the year and have a massive failure of something and you are doing an assessment in the middle of year or you are having to go out and get a note at an unfavorable rate. That is a position you don't want to put the District in.
A resident: Community comments before you vote on the number? Mr. d'Adesky: No, it is not the policy of this District.
Mr. Deane: We are not voting on a number, we are just proposing a number to go in the notice.
Mr. d'Adesky: Right now we are just approving the resolution for the proposed budget is the only item that is before the Board right now.
Mr. Costello: What would be an acceptable level that we could look at right now?
Borden had suggested $150 a year. What do you feel looking at the numbers?
Ms. Burns: If you did the $150 that would be an increase of $153.53 per household. If that is a number you were comfortable with for this year, I would suggest that we do the mailed notice at probably $200. If that is what you wanted to do, I think what we should do is amend this proposed budget that you are looking at to have an additional transfer into the capital reserves of $200,000. We will send the mailed notice showing the increase of what that $200,000 will do so maybe it is $203 a lot, and then you have the flexibility to back that down. Let's say we are not going to do the $200,000 transfer we are only going to do $150,000.
Mr. Zacharia: Jill, on 986 assessable units. Mr. Deane: 976 is all we have.
Ms. Burns: Is that homes or assessable units?
Ms. Well: 986 is assessable with including the golf course.
Ms. Burns: There are golf course parcels that are currently, if you were to purchase the golf course before the next fiscal year, that number would adjust so if you want to use it for the sake of argument of what you think that is going to be if you purchase the golf course, then that is the number you would want to use.
Mr. Zacharia: I am looking at page 2 at the bottom of the budget document. It says with a gross per unit assessment of $1,714.41 which is what I believe comes out on our non ad valorem tax bill.

May 20, 2019	lake Ashton CDD

Ms. Burns: Correct.
Mr. Zacharia: If you multiply that by the 986 number of units that is in that little table you get $1,690,408. So we are off by $3.26 somewhere.
Ms. Burns: It is just rounding.
Mr. Zacharia: So is that 986 wrong? Ms. Burns: No.
Mr. Deane: It is not wrong today but if we purchase the golf course that 986 goes down to 976.
Mr. Zacharia: We are approving a budget today for what we expect is going to happen October 1st?
Ms. Burns: We are going to adopt a budget based on the current fact that these Districts do not own the golf course and that the golf course is going to receive an assessment until any point that the District would own it.
Mr. Zacharia: Is 986 the number of assessable units that we should be using? Ms. Burns: Today yes. Correct.
Mr. Zacharia: Is that number discounted in some way? I see a 7% collection fee.
Ms. Burns: The 7% collection fee is the 4% discount we have to gross up 4% to allow for early payment discounts on the property tax bill. If you pay in November you get 4% off. We have to gross up for that amount and then you also have 2% for the tax collector and 1% for the property appraiser so 7%. So 3% is just the cost for the tax collector and property appraiser and the 4% is a gross up amount. If every single person paid early, then we need to account for that.

Mr. Zacharia: Ok, without netting the assessment by an estimated 7% if we take 986 units and increase the assessment by $150 we will generate approximately an additional $148,000. If we increase it to $180 we will generate an additional $177,000 and if we go up $200 we are close to $200,000. Bob, clarification because you said something that confused me, if we went up $180 per year this year we are not talking about bumping it another $180 next year.
Mr. Plummer: I agree with that, however at one point in the discussion Bob made the comment of going up $100 this year, and then increasing that by another $100 next year. That was my comment.

May 20, 2019	Lake Ashton CDD

Mr. Costello: Do we want to set the ceiling at $200 and then make any adjustments we can to bring it into compliance to what we need?
Mr. Deane: I think we should set it at $250. Mr. Costello: Ok, $250.  Do I have a motion?
Ms. Burns: One second. I think what we will do is $250 times 986 so essentially what we are going to show on this is an additional transfer into the capital reserve of
$246, 500 and then we will send the mailed notice off of this budget.
Mr. Deane: I make that motion. Mr. Ference: Second.
Ms. Wells: I was just going to give two numbers for the budget that have zero dollar amount to it right now just for your review. It is for the stormwater preventative maintenance line item. It would be the $15,000 as discussed and the golf cart preventative maintenance is $1, 140 for the year at $95 per month.
Ms. Burns: Do you want us to allow for those two numbers and then take the difference out of the $240, 000 as the capital reserve transfer?
Mr. Ference: What was the first number, Christine?
Ms. Wells: It was for stormwater preventative maintenance, which is $15, 000. Now in the proposal also it includes a review of the roads and concrete curbing and things like that which currently our engineer does. I don't know if it is cheaper to go through them to do that and not use the engineering dollars for that or if we have to do both I am not sure.
Mr. d'Adesky: You don't have to do both.
Ms. Wells: The engineer just wouldn't do that and that would be included ih the preventative maintenance.
Mr. Costello: Ok, we have a motion for $250 per year for the ceiling.
Ms. Burns: And just to add to that the other portion of this resolution we need approved is setting the public hearing date. Our regular August meeting is the 19th.
Mr. Costello: I am away that week.
Ms. Burns: Do you want to do July? We would have to push it though. We can't do our regular July meeting because we need to send this to the County at least 60 days prior.  We are at the 20th.  That meeting date is July 15th.  That is not 60 days.  We have to push it if you want to do July. What about August 5th? Or does July 22nd work?

May 20, 2019	Lake Ashton CDD

Mr. Deane: You have to get it in there before tomorrow.
Ms. Burns: It is not an ad, we just have to send a letter to the County with the budget attached to it. We could make those changes and get that out today or tomorrow and still have enough time.
Mr. Costello: What day of the week is it? We can change the July meeting to the 22nd and approve it at that time. Does that work?
Ms. Burns: Ok, so July 22nd at 10:30 a.m. Christine, what was the amount for the golf cart maintenance?
Ms. Wells: It was $1, 140.
Ms. Burns: We will fill those two numbers in, and take the difference of that to capital reserves so that it comes out to $250 per lot and base if off that.
Mr. Zacharia: Borden, was it your motion? Mr. Deane: Yes.
Mr. Zacharia: Would you accept an amendment reducing that to $240. The reason I say that is if you market the change and talk about $20 a month it is a lot different than saying $250 a year.
Mr. Costello: It is $250 right now, we can't go any higher. We can go lower. We can go the $240 if you want. I agree with you.
Mr. Deane: Doesn't make any difference to me.
On MOTION by Mr. Deane seconded by Mr. Ference with all in favor Resolution #2019-04 Approving the Proposed Fiscal Year 2020 Budget and Setting the Public Hearing was approved; and the public hearing was scheduled to be held on July 22, 2019 at 10:30 a.m. at 4141 Ashton Club Drive, Lake Wales, Florida 33859.

Ms. Burns: Just to be clear is was $250? Mr. Deane: Yes.
Year Re view of Restaurant Operation s (requested by Supervisor Deane)
Mr. Deane: I have a proposal for the Board with the debacle that happened last week, I am of the opinion that our leasee is not capable of catering to the satisfaction of this development or to me to be honest with you. I believe we should change the lease that rentals can get their own caterer, not just Nini's. Nini's will still have to serve the

20

 	

May 20, 2019	Lake Ashton CDD

alcohol if alcohol is going to be provided so they are not cut out completely. The only thing that I am proposing is to cutting them out of supplying food. The last two or three affairs that they have handled in my opinion have not been handled professionally and not been done properly. In my opinion if you upset the crowd that was in here on Friday they are eventually going to put themselves out of business because people will stop going. They have told me I don't know how many times they are changing the menu. I have yet to see it. I have talked to Nini's about her being closed and she agrees to conform to the lease with regard to the closing. The only two dates that they will be closed would be Christmas and New Years unless it falls on a Monday, which is what the lease says, not like what they have been doing. I need Board permission to try to negotiate with Nini's for the changing of the lease. I know for a fact that we lost two big customers that I know of who rented and catered here. I believe it is time to go to letting the people choose their own caterer. That is my basic summary with the current condition. I do know that the Bingo people are very happy with Nini's. They supply them with the sandwiches that they want.
Mr. Costello: It is odd that you mentioned that because I have a letter in front of
me and the person who wrote the letter noted some of the closed dates they were closed, which included November 22nd and 23rd , and I am taking it that was Thanksgiving and the day after. Then also December 23rd , 24th, and 25th and December 31st. I know that there was a major problem with that with the fact that there was no service available that evening. At a New Year's Eve party that is almost unheard of. April 21st and 22nd , which was Easter. The letter says that they were here, that they were going to be closed, but they did serve breakfast. Quite honestly, I like the people at Nini's, they have been very nice, but somebody has to talk to them with their closures. Not acceptable.
Mr. Deane: I have talked to her about the closures and she has agreed to conform to what is written in the lease. I haven't talked to them about taking away the catering. I think that is something that has to be done. We need the income from the ballroom. We want to try to increase our income. Currently the lease states, and I am not going to quote it exactly, but it states that they are the only caterer that can be used in the ballroom.
Mr. Costello: With the exception of should the community director decide that for whatever event, is there not a clause in there?

 	

May 20, 2019	Lake Ashton CDD

Mr. d'Adesky: Yes, I put in a clause that gave an exception to the community manager. Technically you could give direction to the community manager to exempt everyone but the proper way would be to change the lease itself.
Mr. Costello: I agree with you that we cannot afford to lose rentals on this hall. We simply can't do it. It is income and we need it. I don't know, do you want to talk to her?
Mr. Deane: It doesn't bother me because what I saw on Friday is horrendous. Mr. Costello: I didn't see it but when my wife came home I heard about it.
Mr. Deane: I literally got attacked at the dog park by residents. My wife can testify
to that.
Mr. Zacharia: Borden and Mike, I happened to be at Lake Wales Medical Center
last week with a member of my family. We were talking to one of the senor administrators there who said she was here and Christine was there at a Lake Wales Chamber Event here in the last few weeks.
Ms. Wells: There was also a Lake Wales Charter School event.
Mr. Zacharia: The Chamber event that she attended, she was glowing in her report about the room and the staff she dealt with in renting the room. She said the catering, the food quality and service was abysmal. If you want to add that, it was Andrea Kline, who is the director of nursing, who I was speaking to there. I am just reporting it because it made me feel badly.
Mr. Deane: What I saw on Friday you wouldn't believe. It is unbelievable that you serve mini quiches to our breakfast and to make one egg and mini quiches, one egg makes three mini quiches. The only thing she prepared was 160 quiches. That is a crime as far as I concerned with regards to catering. They had no one helping to serve the food. I know part of the problem is we have some residents when they go to buffet the take whatever they want instead of considering anybody else. She underprepared food for this event. It was ridiculous I am sorry. I can't say anything good about it.

Mr. Costello: One of the other things is by allowing people to bring in their own caterers, the room we know is going to be good and it should be up to their expectations but this way here you bring in your own caterer, hey if the food is bad don't talk to me about it because you were the one that chose the person.
Mr. Deane: This completely takes us off the hook in regards to food in the ballroom.

 	 	 	

May 20, 2019	Lake Ashton COD

Mr. Zacharia: Borden, you mentioned in your opening statement that you wanted to change the lease to allow renters of the room to bring in their own caterer. Are we also talking about residents and internal events? I am talking about n ot just people who rent.
Mr. Deane: I am talking about basically the residents don't pay rent, but the event is scheduled just like it is a rental. I am talking about people renting this ballroom, whether they be residents or outside people.
Mr. Costello: The only other thing that has to be understood is they own a liquor license? You cannot bring in any alcohol from the outside. You cannot change that. As far as food goes, I think we are much better off saying you are on your own for food. If they want to use Nini's we won't have a problem with it, but like I say if you choose the caterer don't come back to us and tell us what you wanted or expected.
Mr. d'Adesky: Yes.
Mr. Deane: This way it takes us off the hook about supplying food for the ballroom. I think Nini's does a good job in the restaurant for restaurant food. It is good. It is reasonably priced. I am very disappointed in the menu, but that is supposedly being changed for the last three months and every time I ask her she says it is at the printer. I don't believe it, I am sorry. It is just the way I am. You can tell me something once, but you can't tell me something six times, the same thing. As far as their catering goes, in my opinion they are just not qualified.
Mr. d'Adesky: So with the Board's blessing, it appears I will make revisions to the lease agreement, send it to Supervisor Deane, and Supervisor Deane can bring that before the restaurant to execute.
Mr. Deane: Thank you. ASAP. Mr. d'Adesky: Will do.
Mr. Zacharia: Borden, on the subject of restaurant operations, again sorry I wasn't here last month to address this, but last month the Board received a sales report for a three month period for Nini's Cafe from Square Sales. I am going to suggest that we do away with the POS system and buy a Magic 8 ball of Ouija board in order to put this report together. This is anyone who operates a business with this output should not be in business. You have to look at these numbers to understand what I am saying but there is no way that there is any truth to this report.

 	

May 20, 2019	Lake Ashton CDD

Ms. Burns: That is probably not the POS system, that is probably what they are reporting. It is not the system.
Mr. Deane: It is what they are reporting on the POS. I can tell you exactly what it is.
Mr. Zacharia: Do we have access to the POS?
Mr. Deane: All it is, is a report that is generated by a program in the POS.
Mr. Zacharia: If you look at the category of sales they sold in three months breakfast special. I am sorry I overstated that by 1/3, they sold two. They sold two dinners, nine drinks, two lunches and 4, 367 uncategorized meals.
Mr. Costello: The problem there is the fact that quite honestly.
Mr. Zacharia: I am not trying to micromanage. I know what that gets us into but don't give this to me thinking that I am just going to accept it. I don't.
Mr. Costello: When you read it you think of the thought that figures lie and liars figure but I mean they are going to put in there whatever they want to put in there.
Mr. d'Adesky: We should be a little cognizant about it. They do give us the reporting, that is part of the lease agreement. We should be a little bit cognizant and respectful of their sales numbers in a public meeting. That is all I am saying.
Mr. Plummer: Their numbers are their numbers, but we derived nothing from those numbers to start with so it is really irrelevant what the numbers say.
Mr. d'Adesky: We don't have to put this as part of the lease. We could remove it.
Mr. Costello: What I am saying is as long as they conform to that part of the agreement, I am not ready to argue with what they are reporting as far as income goes.
Mr. Plummer: I don't see that what they are reporting has any bearing anyway. We received nothing from that. They are not reporting anything that we take anything from. Why do we care if they give us a report or not. It is their business.
Mr. d'Adesky: I can take it out of the lease and with this other change in mind it is a little bit of give and a little bit of take.

Mr. Deane: That is it. That takes care of it, then they won't report anymore and everything is fine. They say they are making money and are very satisfied. I am basically satisfied with the type of service they give and the food that they serve. I am basically satisfied, but I am tired of hearing we are changing the menu and never seeing a new menu or anything like that. In order for them to increase the business they are going to

24

May 20, 2019	Lake Ashton COD

have to do something because the crowd that was in here on Friday is the wives that are here year round. That is really going to affect their sales in my opinion.
EIGHTH ORDER OF BUSINESS	Staff Reports
Attorney
Mr. Costello: How about the attorney's report?
Mr. d'Adesky: You guys have heard about all the issues that are going on right now. I think we have worked through most of them. The one thing that I did do that I haven't discussed is I did send a follow-up letter on the Thompson Nursery Road sidewalk request. I had a sent a letter at the Board's direction in October and this is pressing. It is going to be a problem for the city by several figures. I just renewed our request for information as it relates to the $19,000 paid by the developer for the sidewalk in the past.
Mr. Deane: Thank you for the letter. I am presenting the letter tomorrow night at the monthly meeting of Lakes Wales. At the time I am asking them to either cough up the
$19,000 plus interest since 2002 or come in here and put the sidewalk in. That is as simple as it is going to get.
Mr. d'Adesky: Aside from that obviously as part of the joint agenda I am just mentioning it, we put out the form of the purchase and sale agreement. I know that some Supervisors may have missed that. I will send it out separately just so it is broken out and easier to find to all the Supervisors. If anybody has any questions just contact me and I can walk you through it.
Community Director
Monthly Report
Ms. Wells: I included the community report in the agenda packet if there are any questions on that. I did want to note that the Fitness Center windows have been replaced so we are waiting drywall repair, as well as the sills have been measured so we are just waiting on fabrication and install. If you guys have any questions on anything else that was on the report?
Consideration of Quotes to Repair Bowling Alley
Ms. Wells: Consideration of Quotes to Repair the Bowling Alley. At the last meeting, or at the budget workshop, it was brought up as a proposed capital project for 2020. Staff was directed by the Board to start on it immediately. We had Heritage Service
25

 	 	

May 20, 2019	Lake Ashton COD

Solutions do a leak detection. It actually worked out kind of perfect because it started pouring down rain as soon as they got done digging everything out so it was very easy to find the point of entry of water. They provided a quote. It is actually significantly less than what we had proposed. It is to complete the following repairs. They said that the water coming in is coming from the condensation pipes. In addition to water condensation, pipes are there all the time so there is constant water in there. They are going to remove a section of the sidewalk by the HVAC units near the east entrance to the clubhouse. They are going to remove the landscaping plants. A french drainage system will be installed with large reservoir to collect water from condensation lines. The condensation lines will be relocated to the front of the HVAC units and drain into the reservoirs installed. Then the new landscaping plants and mulch will be installed along the parking lot asphalt. It includes the drywall repair.  It includes the repair at the ramp. It includes the replacement of the carpet from the ramp down to the back of the bowling alley. It also includes the replacement of the wall carpet and walls will be sealed with elastomeric and silicone based product to help eliminate water intrusion into the bowling alley. Both sides of the concrete block walls will be sealed with the product. Openings and gaps will be filled with the same caulking. They will attempt to remove ledger board which is the approach to the bowling alley. They are going to seal that area as well because historically when there has been a leak in another part of the clubhouse it gets in that way as well. They think with all the sealing that it should prevent the intrusion of water. When they apply two coats to the sealing it gives us a five year warranty on it. That is verified by the manufacturer of the part that they use. We have a warranty with the repair as well. The total is $19,400. It includes touchup painting in the area. The exterior walls will be pressure washed and painted to match the current type and color. It includes everything.
Mr. Ference: Christine, did we get any other quotes besides Heritage Services?
Ms. Wells: I have reached out to a couple different people that haven't even come and looked at it. I never got any call backs.
Mr. Ference: Is that because it is such a unique problem we are having?
Ms. Wells: That is correct. He was nervous when I first told him about it until he was able to find the problem.

May 20, 2019	Lake Ashton COD

Mr. Ference: So these folks are sort of specialists in this kind of a problem then?
Ms. Wells: Yes. Matt and I met with him in a period of a couple of days before they even started leak detection. They were very knowledgeable.
Mr. Ference: Do we know other work they have done and how they have done it? Ms. Wells: They have done other work and actually have a full time staff at Reunion.
Mr. Ference: Do we know of any other companies or corporations that have used them successfully?
Mr. d'Adesky: I represent Reunion COD, as well, and they are used at that COD. Ms. Wells: He told me that they have full time staff that is there all the time.
Mr. Costello: Your original quote on this was going to be three times what we are actually looking at. It is substantially lower than we thought we were looking at. We have had problems there before. Quite honestly, I don't know why we didn't just, I mean this is going back several years ago $19, 000 compared to the $60, 000 we were looking at, something has to be done because of the fact that we are growing mold in there. We really, it is not going to get any better, it is only going to get worse.
Mr. Deane: How soon can they start to work?
Ms. Wells: I told them I could give them a call when the quote was approved and they will start right away.
Mr. Deane: I make a motion we accept the quote for $19,400 to get the water intrusion stopped.
Mr. Costello: I second that motion.
ON MOTION by Mr. Deane seconded by Mr. Costello with all in favor proposal from Heritage Service Solutions in the amount of $19,400 to repair bowling alley was approved.

Mr. Ference: Christine, you also have an invoice from them to do roofing gutters.
Are we going there next?

Consideration of Quotes to Repair Sidewalk
Ms. Wells: I believe the next thing was to repair the sidewalk, which you also have a quote from Heritage for that, as well. It is repairing of the sidewalk that is just outside of the west entry to the dressing room. The roof system from the Japanese blueberry that is on the corner out here we believe is popping up the sidewalk, that section of the

May 20, 2019	Lake Ashton CDD

sidewalk right outside the door. It is hard to open the door and it poses a tripping hazard just because the first section is now uneven from the second section. It is a quote to remove that section closest to the door, cut the root off, tar the root so that it would prevent it from going into it again and then relaying the concrete again.
Mr. Deane: Is that going to kill the tree?
Ms. Wells: He said it would not. I asked him that. He said it would take years and years to grow again that is why they tar the roots. He said the tree should not die. I asked him if he recommended removing the tree. He said he did not.
Mr. Deane: Is he going to replace the tree if it dies? Ms. Wells: I can ask him that. It is a good question. Mr. Ference: What is the price on that?
Ms. Wells: It was $528.
Mr. Ference: And there is one more from Heritage regarding the roof gutters?
Ms. Wells: Yes, that would be the next item. We actually received two quotes for that. That again was another proposed capital project for 2020 and under Board direction they wanted us to take care of some of things in this current budget year if possible.
Consideration of Quotes for Gutter Repairs
Ms. Wells: Robinson Aluminum quotes $2,458 and Heritage charged $3,620. They charged a little bit more because they are going to seal the seams, as well with marine adhesive, and the Robinson Aluminum quote I believe was just replacing the hangers. They just went a step further. If you break it out they are pretty much the same. Robinson's is $2,458 and Heritage was $2,485. They just included another $1, 135 for the sealing of the seams.
Mr. Ference: Do we agree that we need that sealant?
Ms. Wells: We haven't needed it. I don't want to say yes or no. We could always do it later on if we feel a need. We could just start with the repair of the gutters.
Mr. Ference: Matt, what do you think about that? Is it something that has been lacking in the past?
Mr. Fisher: We have had reports from various areas around the clubhouse where rain is escaping over the gutters. This was due to the fasteners giving out and actually they did very good through Hurricane Irma. We never did any repairs. We have gotten

May 20, 2019	lake Ashton CDD

reports from residents that the fasteners need to be replaced. The rain is going over those gutters. Sealing the sealing is fine inside the gutters. I would just focus on reattaching them properly. Inside the gutters there is connections that have caulking or silicone. I don't think that is urgent right now. I think it is urgent before we get into big time rainy season just to get those propped up along the roof line so it catches water and it not pouring over.
Mr. Ference: If we do this, do you think the problem we are having with leakage is all through the system?

Mr. Fisher: There wasn't too much concern with leaking, it was the water going over the gutter system. They need to be reattached properly with new fasteners, then I can assess areas that are leaking. I can get up there and do that. We just need them refastened properly with modern fasteners. That is the main concern right now. I can apply gutter sealant with a caulking gun and run water over it. That is something staff can handle. Right now we need to focus on getting them refastened properly so they catch water.
Mr. Ference: For $1, 100 I think we have them do that. That would save you guys having to go through that.
Mr. Fisher: It is up to the Board. Robinson didn't include that in their quote so I would have to get that revised.
Mr. Ference: Let's do it complete.
Mr. Fisher: Ok. Christine, what are your thoughts? We don't have a full quote from Robinson.
Ms. Wells: It is up to the Board. We can come back with a revised quote that Robinson's includes a sealant so you can compare. Right now the repair of the gutters is only about a $30 different so I would anticipate it would be very similar, but it is completely up to the Board. You can approve that Heritage includes it or you can approve a not-to-exceed amount and we can get with Robinson's.
Mr. Ference: Why don't we just stick with Heritage? They have three contracts. You will be working with them. You know those people. Let's stick with Heritage and have them onsite to take care of all of these things.
Mr. d'Adesky: Yes. That saves me some time because I will then only need to draft one contract.

29

May 20, 2019	Lake Ashton COD

Mr. Ference: Do we need a motion to that effect? I make that motion that Heritage will do these three contracts as submitted.
Mr. Deane: Second.
On MOTION by Mr. Ference seconded by Mr. Deane with all in favor the proposals from Heritage Service Solutions were approved in the amount of $528 for sidewalk repairs and
$3, 620 for gutter reppirs.

Consideration of Quotes for Foyer Furniture Refurbishment 
Mr. Costello: Consideration of Quotes for the Foyer Furniture Refurbishment.
Ms. Wells: I sent an email out to Board members inviting them to come in and talk one on one as far as what is going on. It is kind of hard to explain in email format to our plan for the foyer refurbishment. We did get quotes on replacing and reupholstering the furniture in the foyer area, which has been something that residents have requested to give it a more updated look. We received from Tom's Upholstery to reupholster the current couches that are there. It is going to be around $1,700 each. To reupholster the chairs that are currently there would be about $600 each. So then we decided to go the route of just new furniture and get some quotes on that. We received a quote and this would to just to replace the couches with new couches and replace the chairs with new chairs with updated fabric. The price we got from Claussen's was $1,099 per couch and for the chairs they were $849 each. She did give us a discount, which at one point we were looking at doing a sectional and a chair, which I think we kind of segwayed from that. So we were looking just to replace it so I would have to get the exact amount again. It is going to be less than $4,999. That is the quote they gave us. They included the sectional which was $2, 199. Then the quote we received Lee's Furniture for the same furniture, same fabric type for the two couches and four chairs was $4,750 and that included tax as well so we brought it down to $4,417.50. Currently we have approximately
$4,052 left in the indoor furniture replacement for the current capital projects.   I brought
the fabrics with me in case anyone wanted to see them. This is fabric that they are looking to do the chair in and pillows. This is the fabric for the couch. This is another fabric for the pillows, as well. It would be chair and then pillows and couch. They are all durable fabrics. The couch can be washed with just soap and water or a diluted bleach water without damaging the fabric.
30

 	

May 20, 2019	Lake Ashton COD

Mr. Deane: Do your estimates for repairs include any of the springs in the furniture? Ms. Wells: They do not. It is just upholstery.
Mr. Deane: I know some of the springs are busted and in my opinion I don't think we should waste money and reupholster. I think we should buy new. There is not that much difference.
Ms. Wells: I agree. I did have a question on the furniture that is currently there.
Since it is COD property we would have to surplus it. Is there a way of selling that?
Mr. d'Adesky: Yes, you do an auction. You advertise it. You put out some sort of notice and you have an auction. Highest bidder gets it. Just to be clear when you surplus an item you typically auction it unless you find it has no usable value. If you are going to surplus something that has no usable value then we can dispose of it, but if it does have value and somebody would buy it, you need to auction it, you are required to auction it.
Ms. Wells: The reason I bring that up is because Lee's Furniture when they came they said they do see some value in it, as well. They didn't want it particularly for themselves because they sell new furniture, but they did say that there is other vendors in the area that probably would be interested in buying it.
Mr. d'Adesky: If you concur with that conclusion, then we have to auction it.
Mr. Costello: What you are saying in essence is we could bring it to where we are within range of what we have budgeted.
Ms. Wells: Yes or less. What is the cost to advertise for auction?
Mr. d'Adesky: It can be in the legal advertising or any other form of advertising as convenient.
Ms. Wells: So as long as we feel that we are going to make more than what it costs to advertise it, it is well worth it.
Mr. d'Adesky: Yes. You can also do like you do with a normal bidding process if you have anybody you think that might be interested in it you can contact them directly just like with vendors. If you have a specific vendor you think might be really interested in it you can send the ad.
Ms. Burns: It is usually like $100 or $150. It is not very much.
Mr. Deane: Christine, why don't you contact the vendors that they told would deal in that. Just bring them in and see what they will give you for it.

May 20, 2019	Lake Ashton CDD

Ms. Wells: Ok.
Mr. Deane: That way we can save money. The more we save the better off we are.
Mr. Costello: Can we do that? It would be like more or less trading your old car in for a new car.
Mr. d'Adesky: If we are going to purchase from the same vendor we are using yes. If it was that sort of set up, but if it is not that we do have to advertise it. Yes, you can still bring them in and have them look at it and tell you what they would pay for it, but you still have to put out the ad.
Mr. Costello: Alright, any questions or comments? Do we have a motion to accept? Mr. Ference: Do we know how much we are going to pay for the furniture?
Ms. Wells: Yes, for two couches and four chairs the lowest bid that we received was $4,417.50.
Mr. Ference: How many bids have we gotten?
Ms. Wells: We received two. The other was from Claussen's Furniture is $1,199 per couch so it is $2,198 for the couches and basically they were almost giving us a chair for free so the total would be around $4, 745. It is just slightly higher, about $300 higher.
Mr. Ference: Do you have any preference in dealing with either one?
Ms. Wells: No. It is the same furniture. Lee's is a little closer so it would probably be a little easier but it's both the same furniture. They can do the same fabric everything.
Mr. Ference: Well let's go with the lowest bid if it is the same furniture. Mr. Costello: Is that a motion?
Mr. Ference: Yes absolutely. Mr. Plummer: Second.
On MOTION by Mr. Ference seconded by Mr. Plummer with all in favor proposal from Lee's Furniture to purchase foyer furniture was approved in the amount of $4,417.50.

Consideration of Quotes for Dan ce Floor Repairs and Refinishing
Ms. Wells: At the budget workshop meeting I presented a quote for the replacement of the dance floor and I don't believe it was wanting to be done in fiscal year 2020 so I was asked to come up with a quote to just refurbish what we can. I received a quote from Williford Flooring to deep clean and buff the dance floor, apply two coats of

May 20, 2019	Lake Ashton CDD

semi-gloss polyurethane finish, touch up any scratches with stain and drill hole and apply epoxy in a couple of areas that the flooring is popping up. The quote was $3,700. They said this should get us through of years which we can push down the replacement of dance floor a few years. It would fix some of the issues we are having. There is some scratches on the dance floor and the finish is pretty much gone.
Mr. Ference: Any other bids for the dance floor?
Ms. Wells: I did not get another bid for the actual refurbishment of the dance floor.
I can. We can do a not-to-exceed amount and I can reach out to another vendor too.
Mr. Ference: Why don't we just do that as a matter of policy get more than one bid on everything we go out for?
Ms. Wells: I try but it's just getting it in the time to try and get it to the Board. Mr. Ference: Before we decide can we get another bid too.
Ms. Wells: Sure I will bring it to the next meeting. Mr. Costello: Yes.
Ms. Wells: I did reach out to Blackburns and got with them. They don't do it so I would just have to reach out to someone else.
Mr. Zacharia: Christine could you also at the same time come back with just one or two informal quotes to actually replace rather than refurbish. If we are going to spend
$3, 000 and it may cost $5,000 to do the whole thing.
Ms. Wells: When I talked to Blackburns and they told me that they do not do the buffing and deep clean, they did give me an approximate quote on replacement which would have been around $19, 000. The quote that I had at the budget workshop for replacement from Williford was around $26,000. I can reach out to a third person.
Mr. Costello: We spoke about that at the last meeting and I realize you weren't here but we did discuss that we had a quote of $26, 000. It is a considerable amount of money and we did agree that if we could put a Band-Aid on it let's put a Band-Aid on it.
Field O perations Manager
Monthly report
Consideration of Quotes to Replace Bottle Brush Trees

Mr. Fisher: Included in the packet is the operations manager's report. If there are any questions I will be happy to answer them.

May 20, 2019	Lake Ashton COD

Mr. Deane: Matt, thank you for all your work on the dog park.
Mr. Fisher: No problem, Borden. Just to catch up on a few things. In front of you, you should have a quote for some bottle brush replacement or install rather in some voided areas. This area is located behind Aberdeen. It is butted up against Thompson Nursery Road. Several residents enjoy those hedges there. It blocks some of the traffic noise. We had two quotes provided. One from Yellowstone and the other from MJ Landscaping. He does quite a bit for residents inside Lake Ashton and for the condos. Yellowstone was $1,850 and MJ was higher $2,850. It may be a difference in labor, but that is for Board consideration on that project.
Mr. Ference: Why do we need this again?
Mr. Fisher: If you venture over in that area there are bottle brush trees and we have estimated about 30 have reached their life and have been removed. There are voids.
Mr. Ference: So we are replacing. Mr. Fisher: Exactly.
Mr. Ference: So let's go forward with that then. I make a motion that we accept Yellowstone at $1, 850.
Mr. Zacharia: Matt, is that going to close that big gap between the fence that runs along Thompson Nursery and the back of those homes in those retention ponds? That gap seems to be growing.
Mr. Fisher: If we are thinking of the same area there are gaps that are growing. It will close up those gaps and there is already irrigation lines there so it is perfect. We just need to approve the 30 plants installed.
Mr. Deane: Second the motion.
On MOTION by Mr. Ference seconded by Mr. Deane with all in favor proposal from Yellowstone to replace bottle brush trees was approved in the amount of $1,850.

Mr. Fisher: Alright good deal. Another thing is I am working with several asphalt companies. It is very tough to get them to be assertive to give me a quote for potholes. I did reach out to Tucker Paving for an initial estimate and it was higher than I thought so I am g oing to have to get two for you guys. I will have that for the next Board meeting for potholes on COD east side.

May 20, 2019	Lake Ashton COD

Mr. Costello: Thank you.
Mr. Fisher: One more thing. This one sprung up on us rather quickly and I had to do some research, but the bowling alley lane 3 deck has cracked. It was thought that we could weld it but it is cast aluminum so that doesn't weld well. It is going to cost an estimated verbal cost of about $250 to weld it from Giles Manufacturing. He said he can't guarantee how long it is going to last. I said ok let me see how much a deck would cost through a vendor we used for the maintenance of the lanes. He sent over a price of $925 to replace that broken deck.
Mr. Costello: Without the guarantee I wouldn't want to spend the money now. Mr. Fisher: That is why I wanted to approach the Board.
Mr. Ference: How do we know it cracked?
Mr. Fisher: I was back there with the technician and removed it.
Mr. Ference: What caused the crack? There are four lanes. Why did one crack and the others didn't?
Mr. Fisher: Just the wear and tear. It is unpredictable.
Mr. Ference: Are we anticipating other cracks as we go forward?
Mr. Fisher: No. He is not anticipating any cracks. It was tension in that one area that caused it to split. He couldn't identify any other issue other than is was just ten years of wear and tear.
Mr. Deane: Matt, does the $900 one have a warranty or anything?
Mr. Fisher: I can find that out. He is ordering it used. It was just a quick quote to get it to you guys. That price includes shipping and install.
Mr. Deane: There won't be a warranty on used. Ms. Wells: I don't know if it included install, Matt?
Mr. Costello: Can we go until next meeting without doing anything with it? Mr. Fisher: Many residents seemed upset that it was down.
Mr. Plummer: I make a motion to fix the problem now. Mr. Costello: Second.

On MOTION by Mr. Plummer seconded by Mr. Costello with all in favor proposal to replace the bowling alley deck in the amount of $925 was approved.

 	

May 20, 2019	Lake Ashton COD

Mr. Fisher: I apologize, it sprung up Thursday. Thank you guys.

COD Manager - Number of registered voters in the District - 1, 421
Ms. Burns: We have to determine the number of registered voters within the District as of April 15th of each year. That number is 1, 421. Also we have the joint meeting scheduled on Friday so we will see everyone. It is 10:15 and it is here. That is all that I have unless anyone has any questions.

NINTH ORDER OF BUSINESS
A. Approval of Check Run Summary
8. Combined Balance Sheet

Financial Reports

Mr. Deane: Motion to accept the check run summary.
Mr. Costello: I have a motion on the floor do I have a second? Mr. Plummer: Second.

On MOTION by Mr. Deane seconded by Mr. Plummer with all in favor the check run summary was approved.

Mr. Costello: Combined balance sheet any questions? None, okay.

TENTH ORDER OF BUSINESS
Mr. Costello: Public comments.

Public Comments

A resident: Dana Cunningham requested that you do something about some color in our flower beds instead of just mulch. We appreciate having at least the perennials planted that you planned on. Thank you.
Mr. Scali: As far the purchase of the golf course, it is not in our budget. What are the contingencies to enable that to go forward? We placed a ceiling and if we purchase the golf course and we go above the ceiling, what happens then?
Ms. Burns: We will let you have your three minutes and then I will address it.
Mr. d'Adesky: Mr. Scali, go through your three minutes and then we will address all your questions together.
Mr. Scali: Maybe I heard this incorrectly. The 2020 budget I think I heard no enhancements, no capital improvements, if that is true, are we just stabbing ourselves in the foot and we are going to catch it in 2021 and 2022. Is that the right approach? I am concerned about that. I would rather pay upfront and if we have to go to $300, go to

 	 	

May 20, 2019	Lake Ashton COD

$300. I know there are a lot of people here that disagree with me, but I still think from a professional point-of-view it is better to bite the bullet now when we know what the projected costs are going to be and then to delay it and pay X plus 10% or 20% or 30% depending upon what happens to the market. That is my opinion. I do hope that there is a way to enable the golf course purchase. Thank you.
Mr. Bob Sosinski:	A question regarding the $3,500 for the VGlobal migration.
Does that include any costs to Association Voice for the data migration?
Ms. Burns: This is a separate website that will not have anything to do with ashtonliving.net.
Mr. Sosinski: The data right now is on Association Voice.

Ms. Burns: The information that is required to be posted by the COD will all be pulled off of that website and setup on a separate ADA compliant website. Anything on Ashton Living is a HOA website.
Mr. Sosinski: But will Association Voice charge to allow you to take that data?
Mr. d'Adesky: It is a public record. It has always been a public record as all COD records are. It is a PDF. We are talking about minutes, agendas, our Statutes, those are all PDF's. They are all public records that are records of GMS. They are property of the District. The District can upload them just like I have a PDF on my email I can upload that to a website.
Ms. Burns: We have all the records in my office.
Mr. Sosinski: Right now the two main areas that the members use on Association Voice are the directory and basically the calendar, the notice of upcoming events. Will any of these items be included on the new VGlobal site?
Mr. d'Adesky: No, it is just going to be the bare minimum that is statutorily required that we are required to have by Statute for a website to maintain in compliance.
Mr. Sosinski: Thank you.
Mr. Scali: You never answered my questions.
Mr. d'Adesky: We are going to get to it. We haven't forgotten.
Mr. Al Goldstein: Good morning. Today I am asking for some advice from you folks. I have a copy of Andrew's letter to the city. Borden started on this project about  six months ago. He is going to speak tomorrow night. There is $19,800 involved in this

May 20, 2019	Lake Ashton COD

probably plus interest. We still don't have a copy of the check, which I will go over to Scott and see if he can get the check from the office going back to 2000, but I am sure they have it some place. I need to know from you all what are we going to now ask for because a couple of things, one I don't know the pricing of concrete. I think it is going to be prohibitive right now. It might be cheaper for paving a cart path or bike path. I know we need something or our money back.
Mr. Deane: At the meeting I am going to ask for the sidewalk to be put in ASAP or the refund of our $19,800 plus interest since 2002. That is what I am asking for.
Mr. Goldstein: I have a meeting today at 3:00 p.m. with the city manager. I know he has received the letter. I am sure he will bring it up. Do you want me to say something in regards to that beforehand? I would be happy too.
Mr. Deane: It is in the letter but I don't believe the letter was mailed to him was it? Mr. Goldstein: Yes.
Mr. d'Adesky: Yes. The clerk and the manager. We sent two letters. Both those addresses got letters.
Mr. Deane: Ok.
Mr. Goldstein: The next thing they are going to say at tomorrow's meeting, we probably won't have a copy of the check. They are probably going to say we never received it so that is why I have to go back and get a copy of the check somehow.
Mr. Deane: We know they received the check because they issued the permits.
They wouldn't issue the permits without the check.
Mr. Goldstein: Don't say that because I am finding out a lot of things in this city have been done without proper procedure and this is going back to 2000. Nobody was there at the time. The other question I have I have no objection to whatever figure you put on until the proper tax you are trying to raise. I just want to caution you please what you're spending. Don't just add $2,000 to this and $3,000 for that because as soon as we add the $2,000 we forgot we put in $3,000 earlier and it adds to $5,000. Well when you look at it you are only thinking of the $2,000. Before the day is over it is $20,000. Please look at these things. I am finding these things the city was also operating the same way. One other thing is why you went to Lee's, which is a retail operation to find out about reupholstering or even purchasing furniture.

 	

May 20, 2019	Lake Ashton CDD

Ms. Wells: We didn't go there for reupholstering, it was for new furniture.
Mr. Goldstein: It is still a retail store. There is many wholesale distributors selling the exact same thing. Please investigate the wholesale store. It is a 40% to 50% savings.
Mr. Ed Weiss: My name is Ed Weiss. I live on Sable Loop Drive. I am talking about an internal thing here. I call it a sanitary situation. With all the talking about the dog parks have you ever thought about where the dogs now are taken and relieved.
Mr. Costello: No matter what you do the dog is always going to have that situation. Everybody here knows that by city ordinance I believe you are supposed to clean up after your animals. I have had dogs all my life and I cleaned up after them all my life. Not a pleasant chore, but that is big part of being a dog owner.
Mr. Weiss: Are you finished?
Mr. Costello: Yes. You put it in the form of question so continue and we will extend your time.
Mr. Weiss: We have an out building right behind here where families bring their families, friends for a single few hour party. I was at the VA Memorial by myself one day and I have interest in a party there so I was just sitting and watching. A good number of golf carts came with people bringing their dogs around that facility. Someone here must know more about health. How would you like to be there with your family and friends for a birthday party with kids running around and findin_g that the dogs didn't get cleaned up? No one has any restrictions or signs telling our residents don't bring the dogs here because we bring food here. Aren't there such things as regulations to keep dogs and excrements away from food? Who is the dog park man?
Mr. Deane: Do you want me to answer? I was waiting.
Mr. Weiss: I was going to ask you, could we go to the new dog park now? Mr. Deane: It is not built. How are you going to go to it now?
Mr. Weiss: The same way they go to the facility here where we are having parties. Mr. Deane: I do know that the pet co-op had a party at the facility you are talking  about. You were supposed to bring your animals there. That took place. I don't know if
that is what you are speaking of or not. I don't know what you are speaking of.
Mr. Weiss: People are going to follow that. Parties coming on every week.
Christine knows the schedule. Who can stop dogs from being brought there?

 	 	 	

May 20, 2019	Lake Ashton CDD

Mr. Deane: When the pet park sets up a function that was what was set up. I don't know if you are talking about the function that was set up or not.
Mr. Weiss: I'm talking about the birthday parties.
Mr. Deane: I have no idea. I have two dogs and they go to the dog park. You cannot stop people from walking the cart paths. They are sidewalks. If they want to walk their dogs on the cart path that is their business. They can do that. You cannot stop that. The only requirement by the city is that an animal be kept on a lease and you are required to clean up afterwards. That is it.
Mr. Weiss: I am asking if you guys can put up signs to keep dogs off the grass.
Mr. Costello: It has been stated in the LA Times several times that you are supposed to clean up after your animals. Like I said it is a city ordinance. We can't follow people 24/7.
Mr. Weiss: Put a fence up or put signs up but do something. Doing nothing doesn't help the situation.
Mr. Costello: The only way we can do anything is if we catch somebody violating the ordinance, allowing their dog to relieve themselves and walk away, we can do something.
Mr. Weiss: Who would be in charge?
Mr. d'Adesky: That is the city, we don't have that authority.
Mr. Costello: We could turn it into the city. That is as far as we could do with it.
We are totally unable to follow people with animals 24/7. We can't do it.
Mr. Weiss: We are not asking you to do that. We are asking you to create a barrier so they can't go on the grass.
Mr. Deane: We can't fence the cart paths. The cart paths are our sidewalks. The property belongs to the golf course. It doesn't belong to us.
Mr. Weiss: The building belongs to the golf course?
Mr. Deane: I am talking about the cart paths. I am not talking about that building. Mr. Weiss: Why are you talking about a cart path? I was talking about the grass.
Mr. d'Adesky: Supervisors, this is getting away from our format of question and answer. Sir, if you have any comments.
Ms. Burns: That was the end of his three minutes. Mr. Costello: It will be noted and we'll look into it.

 	

May 20, 2019	Lake Ashton CDD

Mr. Weiss: You are going to tell me there is no help in advance? No signs? Not even a stick with a sign on it saying no dogs here?
Ms. Burns: Any other public comments?
Mr. Costello: It is your comment we will take it under advisement. We will look into it, but at this time no, I don't see any signs.
A resident: He is talking about the grass next to that building, not the whole area.
Mr. Costello: I realize what he is talking about. Like I said you can put all the signs up in the world unless people do what the sign says it is not going to matter. I would venture to say people are going to walk their dogs over there anyway. They are either going to be morally responsible and pick up after their dog or they are going to walk away from it. I don't know what to tell you.
Mr. Weiss: I am saying it is a sanitary condition. They should not bring a dog and have the dog do whatever they want to do there and drop the things on the ground.
Mr. Costello: Ok, we will take it under advisement and look into it. Thank you.
Ms. Burns: Are there any other public comments or do you want me to address the golf course and Mr. Scali's question. So you are correct, there are no figures included in the budget today or the Lake Ashton II proposed budget as related to the golf course. At this point, we do not have any due diligence information that we would be able to look at to include that to the extent that the District's go forward and purchase it. That is something that the Board would consider at that time. We can look into that at that point. Mr. d'Adesky: I will say the purchase and sale agreement, if you read through that,
it was included in the joint meeting agenda, does contemplate some mechanisms for operating funds for the golf course.
Mr. Scali: My only concern you talked about a ceiling. You put a figure in there today and we buy the golf course and we blow that figure very easily.
Ms. Burns: At this point and I think this is probably a better conversation for the joint meeting, but the PSA contemplates the $300,000 from the seller.
Mr. d'Adesky: There is a deficit funding agreement.
Ms. Burns: There is a deficit funding agreement to take care of any of those issues. The first year due at closing is $77, 000 so when you are looking at the purchase price the first payment isn't even due until next fall. So there is several issues that we would have

41

May 20, 2019	Lake Ashton COD

significant time to own and operate those golf courses for an entire year to see what those cash flow issues are before we have to consider that.
Mr. Costello: Quite honestly I understand what you are getting at, but one of the reasons why we tried to structure it the way we did was so that we would pick up the beginning of what is considered their fiscal year. This way we will be walking in with all of the money from people paying their yearly dues, plus the fact like Jill had said we have I thought it was a three year agreement where there will be a deficit. So we will be able to. You are right, I agree with you, it could end up costing us a heck of a lot more than we thought it was, but by the same token we do have things in mind where we should not have a problem covering this whatsoever.
Mr. Ference: Before we leave Brenda Vansickle is not here, but she raised issues about our joint relationship with the west with regards to security and with regards to having the roving patrol. I know we addressed all of those issues at the last meeting and I think we resolved them to our satisfaction. Brenda would have suggested that she thinks we did not look clearly enough about our relationship because if we do a joint relationship for security we lose the ability to manage our own security. I think that was what she implied. I just want her to know in her absence that we have thought about that and we are consistent with the decision we made. We appreciate her observations, but we are going to go forward with what was decided a month ago.
Ms. Burns: I think what was proposed was that the contract was in Lake Ashton ll's name and there would be an interlocal agreement in order to deal with that. I think Brenda's suggestion was that there be two separate contracts like with the landscaping that the scope included in that contract could just be separated out into two contracts.
Mr. d'Adesky: Which is how it typically is with almost every other contract.
Mr. Plummer: And what I understand with an interlocal agreement there is a short period of opting out with any interlocal agreement that we do to anyway.

Mr. d'Adesky: You could extend that if you wanted to if you wanted to have a longer opt out period. Once again, yes, that does give away a level of control if you so choose to go with a different vendor. It would be highly abnormal to not just enter into two separate contracts.

Ms. Burns: Which is what I was trying to say last meeting.

42

 	 	

May 20, 2019	Lake Ashton CDD

Mr. d'Adesky: It is a lot more in my fees drafting and having two lawyers draft an interlocal agreement on both sides versus just a routine contract.
Mr. Ference: So you are suggesting that we have just one contract for both sides? Ms. Burns: Two.
Mr. Ference: Which we don't have.
Mr. d'Adesky: Thatis why we typically do. That is what we have been doing. You can use the same company and both have separate contracts with the same company.
Mr. Ference: That is what we have now?
Mr. d'Adesky: That is typically what we do with all of our vendors. We have two different companies.
Mr. Ference: Ok, so the same company, but two separate contracts. Mr. d'Adesky: You got it.
Mr. Deane: Eventually maybe. That hasn't been decided.
Mr. d'Adesky: We are just talking about form here. This is a discussion of form.
Mr. Ference: I just wanted her thoughts to be exposed because she would be asking for an explanation and I just didn't want that to go without being addressed.
Mr. Plummer: I think the substantial savings that we were getting was because it was under one contract and not two separate contracts. If we go back and look at the two contracts I am not sure that savings would be the same.
Ms. Burns: The scope of work wouldn't change any different if it was one contract or two. Essentially let's say they had the roving patrol for the whole community for 24 hours, there is a cost associated with that. You could put 50% of it in one contract, and 50% in the other.
Mr. d'Adesky: That company does work in other Districts that way so I don't know why they would have presented it with that.
Mr. Costello: Both contracts would mirror one and other.
Ms. Burns: You could take the quote they gave you and split it into two contracts. Mr. Plummer: We will go back and look at that.
Mr. Ference: Again I just wanted to in her absence speak for her concerns. Mr. Costello: Thank you.
Mr. Deane: We are still looking at security.

43

May 20, 2019	Lake Ashton COD

Mr. Zacharia: Jill, do you think it would be worthwhile for all of us to sit through a five or ten minute presentation by you and maybe Andrew on how or what the process is should we as a Board responsible for the operation of COD I find itself in need of additional cash. I am trying to understand. Well we need to assess everybody another $200. It is, not that simple where you just send out a bill. I am not sure that if you ask five people sitting on the Board that you wouldn't get at least four different answers on that process. There seems to be some concern. I mean I heard people say well COD I is bankrupt.
Ms. Burns: That is not the case.
Mr. Zacharia: It is not true obviously but it seems to be the common feeling among people that we have a cash flow problem. What we have done today is to try and do something to sure that up. If the day ever comes that we need to replace three air handlers in this building we may have a cash flow problem. I just think it would be helpful if you could go through that process and explain that you can't just go to the bank and write an overdraft.
Mr. d'Adesky: That is an easy PowerPoint for Jill to put together.
Mr. Costello: I agree. Maybe you could put something together? Something short? Ms. Burns: You just want to know the process of placing assessments on the tax bill? Mr. d'Adesky: Financing options.
Ms. Burns: Ok, got it. If you were to have to do a special assessment, you want to know how that process works.
Mr. d'Adesky: I think at the root of the question would be if it was in a regular situation because obviously there is financing on our normal cycle as part of our budget cycle we increase it, but if we were in the middle of year you would have to do it a little bit differently. We can go through that. It would be like five or ten minutes.
ELEVENTH ORDER OF BUSINESS	Adjournment
Mr. Costello: Ok, Bob.
On MOTION by Mr. Ference seconded by Mr. Deane with all in favor the meeting was adjourned.

"            -	

�
Assis!�nt Secretary/Secretary
44