MINUTES OF MEETING HOLLY HILL ROAD EAST COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Holly Hill Road East Community Development District was held on Tuesday, March 12, 2024, at 11:05 a.m. at the Lake Alfred Public Library, 245 N. Seminole Ave, Lake Alfred, Florida and via Zoom. Present and constituting a quorum were: Brent Kewley Vice Chairman Rob Bonin Assistant Secretary Barry Bichard Assistant Secretary Kayla Word Assistant Secretary Also, present were: Tricia Adams District Manager, GMS Grace Kobitter District Counsel, Kilinski Van Wyk Chace Arrington District Engineer, Dewberry via conference call Rey Malave District Engineer, Dewberry via conference call Marshall Tindall Field Services Manager, GMS The following is a summary of the discussions and actions taken at the March 12, 2024 Holly Hill Road East Community Development District’s Regular Board of Supervisor’s Meeting. FIRST ORDER OF BUSINESS Roll Call Ms. Adams called the meeting to order. There were four Board members present constituting a quorum. SECOND ORDER OF BUSINESS Public Comment Period Ms. Adams stated that there were no members of the public attending the meeting in person nor any members attending via Zoom. THIRD ORDER OF BUSINESS Approval of Minutes of the February 13, 2024 Board of Supervisors Meeting Ms. Adams presented the minutes of the February 13, 2024, Board of Supervisors meeting. She asked for any comments or corrections from the Board members. The Board had no changes to the minutes. On MOTION by Mr. Bichard, seconded by Mr. Kewley, with all in favor, the Minutes of the February 13, 2024, Board of Supervisors Meeting, were approved. FOURTH ORDER OF BUSINESS Review of Encroachment at 318 Citrus Isle Loop Ms. Adams referred the Board to page 12, the Field Manager’s Report regarding an encroachment onto District property. She added the District owns Tract E and is responsible for maintaining Tract E for landscape maintenance purposes. She noted the property owner had installed a fence on the District’s land and a letter demanding removal had been sent. The owners have asked for an extension but then failed to remove the encroachment. She added the next step would be a letter from District Counsel. She asked for Board consent to send the letter. A Board member asked if there was more weight when sent by an attorney. Ms. Adams indicated yes and that Counsel would demand removal since the District needed to maintain the property. Discussion ensued on the options for the Board including tolerating the fence or entering into a license agreement with the owner. Other discussion topics included if the current fence had a gate, the option for the resident to install a gate, the resident’s financial issues, and the next steps for the District to take. Ms. Adams noted the staff recommended removal of the fence. After discussion the Board came to consensus to have District Counsel send a demand letter asking for removal in 60 days. FIFTH ORDER OF BUSINESS Consideration of Resolution 2024-05 Approving Proposed Fiscal Year 2025 Budget and Setting a Public Hearing Ms. Adams noted this resolution is the proposed budget for 2025 beginning October 1, 2024, and ending September 30, 2025. This resolution will approve the proposed budget and will set a cap on operations and maintenance assessment. It also will set the public hearing for June 11, 2024, at 11:00 a.m., which is the regular meeting. She reiterated the importance of having a quorum at the public hearing to adopt the budget. Approval of Resolution 2024-05 will also allow for transmittal of the budget to the local government and posting on the website. She reviewed the budget which proposes the same assessment level. It was noted the current gross assessment per unit is $968.48. She added the District had everything platted and on roll. She noted the District receives revenue from a district that has amenity reciprocity with the District. The proposed budget amount for Fiscal Year 2025 the administration is proposed to increase from $136,874 to $142,706. Increases include management fees from $40,127 to $45,000. She noted the District will transition from landowner election process to the general election process and it is anticipated that two seats will be elected in the general election process. She continued with general overviews to include field expenses proposed at $287,716, amenity expenditures with an increase at $241,854, and a transfer out to capital reserve at $58,400. She added the debt service budget was based on an amortization schedule. On MOTION by Mr. Bichard, seconded by Mr. Kewley, with all in favor, Resolution 2024-05 Approval of the Fiscal Year 2025 Budget, and Setting a Public Hearing for June 11, 2024, at 11:00 a.m., was approved. SIXTH ORDER OF BUSINESS Consideration of Resolution 2024-06 Resetting Public Hearing for Adoption of Rules Ms. Adams stated this resolution is for resetting the public hearing for the adoption of rules including an application for $75 for an easement variance. She added this also ties to the next resolution. She noted at last month’s meeting the Board approved setting a public hearing, but another hearing is required to amend the suspension and termination rules of the District. This will combine the notice for both public hearings. Resolution 2024-06 resets the public hearing for the easement variance for May 14, 2024, at 11:00. On MOTION by Mr. Bichard, seconded by Mr. Kewley, with all in favor, Resolution 2024-06 Resetting the Public Hearing for Adoption of Rules, and the Application Fee for $75, was approved. SEVENTH ORDER OF BUSINESS Authorization to Set Public Hearing to Amend Suspension and Termination of Access Policy Rule Ms. Adams stated this authorizes the public hearing to amend suspension and termination of access policy rules. This is the progressive discipline polices in accordance with the policies the Board has adopted for use of the amenities. She added this allows for verbal warning, written warnings, and suspension. This sets the public hearing for May 14, 2024. On MOTION by Mr. Bichard, seconded by Mr. Kewley, with all in favor, Setting the Public Hearing to Amend the Suspension and Termination of Access Policy Rules for May 14, 2024, was approved. EIGHTH ORDER OF BUSINESS Staff Reports A. Attorney Ms. Kobitter noted she had nothing to report. B. Engineer Mr. Malave had nothing further for the Board and offered to answer any questions. There being no questions, the next item followed. C. Field Manager’s Report Mr. Tindall presented the field manager’s report to the Board which can be found in the agenda package. He discussed amenity preparation for the spring, ponds, common areas, planting, general maintenance topics, graffiti investigation, and pressure washing. i. Consideration of Proposal for New Pool Furniture Mr. Tindall presented the proposal for new pool furniture for additional chase lounges. Ms. Adams noted the Board had allocated $7,500 for amenity expenditure contingency, an expense which is shared with North Boulevard. She added this is a large pool with increased usage and they recommend additional furniture for an estimate of $2,826.23. On MOTION by Mr. Kewley, seconded by Mr. Bichard, with all in favor, the Proposal for New Pool Furniture, was approved. ii. Consideration of Proposal for Playground Upgrades Mr. Tindall presented the proposal for playground upgrades to include bench and a garbage can. Ms. Adams added this proposal is from GMS for $2,081.50 for installation of the inground bench and commercial garbage can. She noted this expense is also part of the interlocal agreement and that North Boulevard contributes to the expense. On MOTION by Mr. Kewley, seconded by Mr. Bichard, with all in favor, the Proposal from GMS for Playground Upgrades, was approved. iii. Consideration of Addendum to Landscaping Agreement with Prince & Sons Mr. Tindall presented the addendum to landscaping agreement with Prince & Sons to include additional landscaping services of increased slope weed eating to six times per year. Ms. Adams noted resident complaints on this issue. She noted funding was adjusted to allow for this. The District will be over budget the landscape agreement line item for this year, but $22,000 for landscape replacement and enhancements is available to cover this expense. On MOTION by Mr. Bichard, seconded by Mr. Kewley, with all in favor, the Proposal with Prince and Sons for an Addendum to Landscaping Agreement, was approved. D. District Manager’s Report i. Discussion of E-mail Notifications of CDD Board Meetings Ms. Adams asked for Board feedback on an email request for notifications of CDD Board meetings. She noted under Florida statutes the CDD is currently meeting all requirements for notices. The Board preferred to continue with the statutory requirement and not with additional e- mail notifications. ii. Presentation of Series 2018 Arbitrage Rebate Calculation Report Ms. Adams presented the Series 2018 Arbitrage Rebate Calculation Report. She noted the IRS regulates tax-exempt bonds and requires the District is not earning more interest that is being paid. These reports are run each year, and the requirement is to report every 5 years. She added there is no rebate liability. On MOTION by Mr. Kewley, seconded by Mr. Bichard, with all in favor, the Series 2018 Arbitrage Rebate Calculation Report, was approved. iii. Approval of Check Register Ms. Adams presented the check register for review from January 23, 2024, through February 29, 2024, totaling $817,653.68. She noted a transmittal of $767,000 moving funds from the general fund over to the Trustee for debt service payments. Ms. Adams offered to answer any questions from the Board. Hearing none, she asked for a motion of approval. On MOTION by Mr. Bichard, seconded by Mr. Kewley, with all in favor, the Check Register, was approved. iv. Balance Sheet & Income Statement Ms. Adams reviewed the balance sheet and income statement through December. She asked for any questions and noted that there is no action necessary from the Board. She added the Board has done a great job controlling expenses and they are $11,000 under budget with administration, $16,000 under in Field, and $16,000 under in amenity expenses. Transfers out to capital reserve have not been made. Collections from the revenue side from North Boulevard of $87,366 will be coming. NINTH ORDER OF BUSINESS Other Business There being no comments, the next item followed. TENTH ORDER OF BUSINESS Supervisors Requests and Audience Comments Ms. Adams noted that no members of the public were present. There being no comments, the next item followed. ELEVENTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Bichard, seconded by Mr. Kewley, with all in favor, the meeting was adjourned. Signature - Tricia Adams Signature - Adam Morgan Secretary/Assistant Secretary Chairman/Vice Chairman