MINUTES OF MEETING LAKE ASHTON II
COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Lake Ashton II Community Development District was held on Friday, August 21, 2020 at 9:00 a.m. via Zoom Teleconference, pursuant to Executive Order 20-69, issued by Governor Desantis, as amended and supplemented and pursuant to Section 120.54(5)(b)2., Florida Statutes.

Present and constituting a quorum were:

Doug Robertson James Mecsics BobZelazny Stanley Williams Carla Wright
Also present were: Jill Burns
Sarah Sandy Alan Rayl Mary Bosman Brian Rhodes
Numerous Residents

Chainnan
Vice Chairman Assistant Secretary Assistant Secretary Assistant Secretary

District Manager District Counsel District Engineer Community Director Billy Casper Golf

The following is a summary of the discussions and actions taken at the August 21, 2020 meeting, and a copy of the proceedings can be obtained by contacting the District Manager.

FIRST ORDER OF BUSINESS	Roll Call and Pledge of Allegiance
Ms. Burns called the meeting to order at 9:00 a.m. and called the roll. All Supervisors were present.

SECOND  ORDER OF BUSINESS	Approval of Meeting Agenda

On MOTION by Mr. Mecsics, seconded by Mr. Robertson, with all in favor, the meeting agenda was approyed.

August 21, 2020	Lake Ashton II COD

THIRD ORDER OF BUSINESS	Public  Comments   on  Specific Items
on the Agenda (the District Manager will read any questions or comments received from members of the public in advance of the meeting; we ask those members of the public wanting to address the Board directly first state his or her name and his or her address. All comments, including those read by the District Manager, will be limited to three (3) minutes)
Ms. Burns received letters  from the following  residents in advance of the meeting:
►	Resident  (Mike Holden, Turnberry) requested  the language, "The waiver of
liability contained herein does not apply to any act of intentional, willful or wanton  misconduct  by  the indemnitees,"  be included  in  the Golf Course
Policy.
►	Resident (Steve Bachleda, Hogan Lane) was not in favor of the $400
proposed increase in the operation and maintenance (O&M) maintenance special assessments due to:
Inflation over the last eight years was an increase of $248 per property to compensate for inflation, not $400.
A $250 maximum increase was sufficient and major capital projects would be carefully reviewed as needed. If any additional funds were needed, assessments should be imposed.
A $400 increase in assessments would be a hardship for residents
on fixed incomes.
►	Resident (Carrie Giebler, Hogan Lane) requested funds in the budget for
the maintenance of Lake Hart. The Board received a petition signed by 34 people regarding the maintenance of vegetation.

FOURTH ORDER OF BUSINESS	Approval of the Minutes of the July 2,
2020 Meeting
Ms. Burns presented the minutes from the meeting held on July 2, 2020. There were no corrections or comments.

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August 21, 2020	Lake Ashton II COD

On MOTION by Mr. Robertson, seconded by Mr. Mecsics, with all in favor, the Minutes of the July 2, 2020 Meeting were approved as presented.

FIFTH ORDER OF BUSINESS	New Business/ Supervisors Requests
Update on Corona Response (requested by Supervisor Zelazny)
Mr. Mecsics recommended the current procedures remain in effect, based on the following:
Cases of COVID were still active, emphasizing the use of masks, social distancing, personal hygiene and treatment.
Temporary staff being used to maintain access control and monitoring for the H_ealth & Fitness Center (HFC) and the earlier hours at the indoor pool as well as limited hours on Saturdays.
Approximately 20 to 25 people each Saturday were using the pool, causing an increase in hours cost of $545 per week.
The community demographics make it extremely vulnerable  to the effects of the pandemic.
Mr. Robertson asked if visitors were permitted. Mr. Mecsics requested leeway to allow residents. Mr. Robertson stated if there was an influx of residents, visitors could be asked to leave. Mr. Zelazny asked if the issue was with the capacity or control, which would be monitored so residents had limited contact with visitors. Mr. Robertson favored residents having first priority and then guests could be permitted access.

Mr. Robertson MOVED to allow guests to use the HFC pool for two weeks, if capacity allowed for it, and Mr. Mecsics seconded the motion.

Mr. Zelazny stressed this was a major change and shift in their policy from not having guests to allowing guests and was not concerned about the capacity. Mr. Robertson delegated Mr. Mecsics to monitor and revise the policy at his discretion.

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August 21, 2020	Lake Ashton II COD

On VOICE VOTE with all in favor, allowing guests to use the HFC pool for two weeks, if capacity allows, and authorizing Mr. Mecsics to revise the policy at his discretion, was approved.

Public Hearing
Public Hearing on the Adoption of the Fiscal Year 2021 Budget
Open Public Hearing
Ms. Burns noted the public hearing was advertised and requested a motion to open the public hearing.

On MOTION by Mr. Zelazny, seconded by Mr. Williams, with all in favor, the public hearing was opened.

Public Comment
Ms. Burns asked for public comments.
Resident (Doug Hill, Pinehurst Loop) commented that Mr. Mecsics and the attorneys did a phenomenal job with the land sale; however, the District assuming the
$400,000 bond and financing through Mr. Maxwell was not reason for the proposed increase in assessments. The issue was with spending $120,000 for air handlers, repairing the roof, purchasing gym equipment, lighting equipment for HFC and kitchen equipment. Mr. Hill felt that a $400 assessment increase was too much for this coming year, based on having carry over funds of $250,000 and a proposed increase in assessments of $300 to allow for unexpected expenses.

Close Public Hearing
Ms. Burns requested a motion to close the public hearing.

On MOTION by Mr. Williams, seconded by Mr. Robertson, with all in favor, the public hearing was closed.

Board Discussion
Mr. Robertson felt increase in assessments of $300 was reasonable, plus an additional amount for extra projects based on inflation and cost-of-living increases, additional staff, maintaining extra land and future projects.

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August 21, 2020	Lake Ashton II COD

Mr. Zelazny indicated an increase of $400 was necessary. Contributing factors include no cost of living increase in the last seven years, despite major expenses that include purchase of land for parking lot and pickleball courts, installation and landscaping of the parking lot, Hurricane Irma damages, and over $SOOK in cost associated with the purchase of the green space and golf club. Future costs include the note on the purchase of the green space and golf club (to be paid over a five-year period), as well as projects and costs identified iil the reserve study.
Discussion ensued regarding the bond, which was paid by Mr. Maxwell and the CDD was paying back. Mr. Robertson felt that the golf course should standalone to protect the District from a cashflow issue. If there were excess funds, golfers would want a reduction in fees. Mr. Mecsics explained the purpose of purchasing the property. A lengthy debate ensued between Mr. Zelazny and Mr. Robertson. Mr. Robertson requested Mr. Zelazny use logic rather than false numbers. Mr. Zelazny explained his numbers were presented to the Board when the golf course was discussed. Mr. Mecsics felt a $400 increase was justified to maintain the aging infrastructure and unexpected events. Mr. Williams favored a $400 increase in assessments. Ms. Wright favored a maximum of $300 increase in assessments based on numbers from GMS.

On MOTION by Mr. Zelazny, seconded by Mr. Williams, with Mr. Mecsics, Mr. Zelazny and Mr. Williams in favor and Mr. Robertson and Ms. Wright  dissenting, increasing assessments by $400 per lot for Fiscal Year 2021 was approved. (Motion Passed 3-2)

Discussion ensued regarding the budget and the following was discussed:
►	Mr. Williams  proposed  paying off the bond over the next five years.
►	Mr. Zelazny questioned why Trustee Fees was double.
Ms. Burns explained there was a prior default. The fee did not change. It was paid out of one of the bond funds as required by the Trust Indenture when there was a prior default. In the past, it was paid out of the reserve, but switched over to O&M.

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August 21, 2020	Lake Ashton II COD

Mr. Zelazny asked why there was a $15,000 increase in management fees. Ms. Burns explained it was the  increase approved by the Board at the February meeting, due to an increase in the number of meetings. Mr. Zelazny recalled the Board approved
the payroll associated with running the golf course.
►	Ms. Wright provided changes under Field Expenses.
Under Admin, move Insurance under Field Expenses
Decrease Building Contract Services from $54,500 to $43,920, due to a reduction in cleaning costs.
Increase Landscape Contract Services from $179,604 to $217,164
o	Increase Personal Expenses
Decrease Utilities from $220,000 to $210,000
Mr. Zelazny asked if Contingency funds go away. Ms. Wright recalled discussion at a prior Board Meeting, about transferring Contingency from the General Fund to Other Capital Project Expenses. Mr. Mecsics noted for Security Contract Services - #34530, for carts, paper copies, because of the reduced requirements on carts, $3,000 should suffice.
Add Public Works - Bridges/Pathways
Decrease Athletic Equipment from $18,000 to $12,000
Mr. Mecsics recalled eliminating First Quarter Operating Reserves under the General Fund for the last three or four years, which increased from $200,000 to $275,000 and transferring to the Reserve Fund. Ms. Wright confirmed part of it was spent this year and $170,344 remained. Ms. Burns explained it was three months operating for October, November and December until funds were received from the Tax Collector. Mr. Mecsics recommended transferring tax funds from Operations and Maintenance to Capital Reserves as soon as they were received. Mr. Robertson stated the COD did not need to reserve $275,000 because the COD had cash on hand, over $1.3 million, at the beginning of October because the COD owned the golf course. If the COD needed additional funds at the end of the year for operations, it could borrow the funds from Mr. Maxwell. Mr. Mecsics asked if First Quarter Operating Reserves were ever needed. Ms. Burns replied affirmatively; the entire amount could be transferred and funds could be pulled from the reserves as needed. Ms. Wright suggested setting up an automatic transfer to transfer

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August 21, 2020	Lake Ashton II CDD

Fir$t Quarter Operating Reserves into Capital Reserves on January 1, 2021. After further discussion, the Board agreed.
Mr. Mecsics estimated $1.7 million worth of capital projects over a five-year period in the Capital Reserve Study and requested it be included in the budget. If the funds were not spent, the money would be carried over to the following year. The $400 increase in assessments equates to $1.5 million and with the $350,000 carryover and $115,000 from the golf course, there would be sufficient funds for everything. He requested anything in the Capital Reserve, be put into the budget and funded as appropriations. Mr. Williams agreed. The following capital items were discussed:
Fitness floor - 15,000
Racquetball floor - $14,500
o	Sports floor - $14,500
Mr. Mecsics felt there was no need for new kitchen equipment in the next six to nine months and proposed carrying over anything other than the HVAC and the pool that
was required if the funds were not spent.
►	Changing Athletic Equipment to $12,000 from $18,000
►	Leaving Air Handlers at $120,000
►	Reduce Kitchen Equipment from $43,5.00 to $21,750
►	Move Public Works - Bridges/Pathways to 2022
►	Card Room Repairs - Completed
►	Move Lightning System to 2022
Ms. Burns explained $5,000 was budgeted for General Liability Insurance and Director and Operators Insurance under admin, and $25,000 was budgeted for property coverage under field. Ms. Wright preferred splitting Insurance. There was Board
consensus.
►	Setting limits under Other Capital Project Expenses.
Mr. Mecsics preferred a contingency versus Other Capital Project Expenses. Ms. Wright explained $30,000 was budgeted under Other Capital Project Expenses for items like a pool heater. Mr. Zelazny agreed with leaving this item as stated, but wanted to identify the items paid out of this item. Ms. Wright asked if a line item was over $2,000, whether it would be a capital project. Ms. Bums explained the standard for general

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August 21, 2020	Lake Ashton II COD

accounting was anything over $5,000 was a capital project. Ms. Wright requested financial statements each month, whether or not there was a meeting. Mr. Robertson proposed keeping track of what goes into Other Capital Project Expenses and zero it out at the end of each fiscal year. Ms. Wright would amend the budget and change the narrative.
Mr. Mecsics stated $100,000 was budgeted for the repaving of Ashton Boulevard, but construction would not be completed until 2022. He wondered if the spot repairing the road was being considered to replace cracks and do another seal coat, until all houses were built or wait until 2022. Mr. Rayl recommended not doing spot repairs and to continue monitoring the condition until the majority of the heavy construction traffic ceased. There was no place on the inbound side that was in immediate danger of a total failure of the pavement. Mr. Mecsics questioned whether the budget should include an item for repairs, as the $32,000 budgeted for road repairs was not adequate. Mr. Rayl felt it was prudent. Ms. Wright suggested increasing Public Works - Bridges/Pathways or taking the funds out of the Capital Reserve. There was Board consensus to use funds from the Capital Reserve if necessary.
Mr. Mecsics requested budgeting additional funds for Capital Project Future
Projections. Ms. Burns recalled the Board discussed annual items at prior meetings and as projects were approved, as part of the budget; it would be added in. Mr. Mecsics recalled there would be a category for Annual Projects and then five categories; Public Works, HFC, Pool/Spas, Sports Facilities/Equipment and Kitchen. Costs should be identified in the Reserve Study and in the long term, determine the amount of money necessary at the end of 2026 or 2028. Mr. Mecsics would provide costs to the District Manager.
Consideration of Resolution 2020-10 Adoption of the District's Fiscal Year 2021 Budget and Appropriating Funds

On MOTION by Mr. Robertson, seconded by Mr. Mecsics, with all in favor, Resolution #2020-10 Adopting the District's Fiscal Year 2021 Budget and Appropriating Funds was adopted, as amended.

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August 21, 2020	Lake Ashton II COD

Public	Hearing	on	the	Imposition	of	Operations	and Maintenance Special Assessments
Open Public Hearing
Ms. Bums requested a motion to open the public hearing.

On MOTION by Mr. Mecsics, seconded by Mr. Robertson, with all in favor ,the public hearing was opened.

Public Comment
Ms. Bums asked for public comments. Hearing none,

Close Public Hearing

On MOTION by Mr. Mecsics, seconded by Mr. Williams, with all in favor, the public hearing was closed.

Board Discussion
There was a brief discussion on shifting some of the budget line items related to roads repairs, capital projects, reserves, and possible alternate options on the format of the budget.

Consideration of Resolution 2020-11 Imposing Special Assessments and Certifying an Assessment Roll
Ms. Bums explained the per lot assessment amount based on the budget that was just approved is $2,285 for operations and maintenance (O&M) per lot and debt assessments for collection of 2005 and 2006 are on the tax roll. They were available by request, but the final version would be attached to the resolution.

On MOTION by Mr. Mecsics, seconded by Mr. Zelazny, with all in favor, Resolution #2020-'11 Imposing Special Assessments and Certifying an Assessment Roll was adopted.

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August 21, 2020	Lake Ashton II COD

Consideration of Resolution 2020-12 Designation of Regular Monthly Meeting Date, Time and Location for Fiscal Year 2021
Ms. Burns presented the following options:
►	Option A: Meeting monthly at 9:00 a.m. on the third Friday
►	Option B: Meeting every other month at 9:00 a.m. on the third Friday
Mr. Burns stated if meetings were not needed, they would be cancelled. Mr. Mecsics preferred monthly meetings, using some as Town Hall meetings and meeting in person at HFC using social distancing requirements versus Zoom. Ms. Burns explained the Governor's Executive Order was extended through the end of September for virtual meetings, but did not know if it was extended longer. Mr. Robertson clarified three Board Members would be present at a physical meeting and others could meet by Zoom. With the Executive Order, everyone could be remote, but without the Executive Order, three people would be present and two by Zoom. Ms. Bosman would look into the logistics.

On MOTION by Mr. Mecsics ,seconded by Mr. Zelazny, with all in favor, Resolution #2020-12 Designating the Regular Monthly Meeting Dates, Times and Location for Fiscal Year 2021 under Option A, to meet monthly at 9:00 a.m. on the third Friday, was adopted.

Consideration of Resolution 2020-13 Designation a Date, Time and Place for a Public Hearing on the Adoption of Golf Course Rates
This item would be discussed at the joint meeting.

Revisitation of Golf Course Policies (requested by Supervisor Zelazny)
This item would be discussed at the joint meeting.
Discussion Regarding Candidate Forum (requested by Supervisor Zelazny)
Mr. Zelazny requested a Candidate Forum in conjunction with the October meeting, as there was one contested seat this year and two other candidates were unopposed. Ms. Burns noted the COD Board had no involvement in the Candidate Forum and was coordinated by a separate group. Mr. Zelazny explained the COD offered to conduct the meeting via Zoom.

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August 21, 2020	Lake Ashton II COD

Discu sion Regarding Additional Memorial Opportunities (requested by Supervisor Zelazny)
Mr. Zelazny stated this issue was started by Mr. Robertson to have holes sponsored by individuals, but there was interest in the community to sponsor trees on the golf course and pool chairs. Mr. Zelazny will work with Ms. Bosman on a comprehensive memorial program and bring back to the Board in October. Mr. Robertson agreed.

On MOTION by Mr. Williams, seconded by Mr. Mecsics, with all in favor, the meeting was continued to after the Lake Ashton I and L ke Ashton II joint meeting on August 21, 2020 at 1:00 PM, to be held on the same current Zoom Teleconference line.

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