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, December 18, 2020 at 9:04 a.m. at 6052 Pebble Beach Blvd., Winter Haven, FL.

Present and constituting a quorum were:

James Mecsics BobZelazny Duff Hill Colette McKie
Angie Littlewood Also present were:
Jill Burns Sarah Sandy Alan Rayl Mary Bosman Brian Rhodes Ron Lavoie Brett Sealy
Archie Campbell Pete Whitman Dana Bryant

FIRST ORDER OF BUSINESS

Chairman Vice Chairman
Assistant Secretary Assistant Secretary Assistant Secretary

District Manager, GMS
District Counsel; HGS via Zoom
District Engineer Community Director Indigo Golf Partners Indigo Golf Partners MB$
Applied Aquatics via Zoom
Yellowstone Yellowstone

Roll Call and Pledge of Allegiance

Ms. Burfls called the meeting to order at 9:00 am and five Supervisors were in attendance constituting a quorum. The Board recited the pledge of allegiance.

SECOND ORDER OF BUSINESS	Approval of Meeting Agenda
Mr. Mecsics: Are there any changes or additions to the meeting agenda? Sarah, I would like to add that we have some Supervisors'  comme_nt   s that should be added in there. When we_ get fo public comments, I'll have something to say about how we do our procedures for the Board meeting.

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 member$ 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: I have received 2 comments. One is a speaker card listed here and  one was through email. Neither of them are on agenda items, so we will hold them to the end.
Mr. Mecsics: Before we start as we go through the meeting procedures, to ensure
that all Supervisors have the opportunity to speak on topics each will request the floor and be recognized by the Chair. The Supervisor who then has the floor, they have it until they are done or until they yield to others. That keeps it from looking like family feud with everybody trying to hit the buttons. When Supervisors do have the floor, their comments are theirs and if there are any retorts or rebuttals the other Supervisors may request the floor. The public comments at the end will be either verbally transmitted or submitted in writing. If a Supervisor receives one directly, they will present it to the District Manager at the beginning of the meeting for reading either at the beginning or the end. The Board will respond if a question is raised at the end, and the appropriate Supervisor will be designated by the Chairman to answer the questions.

FOURTH ORDER OF BUSINESS	Presentation	from	MBS	Capital
Markets	Regarding	Potential Refinancing of Series 2005 Bonds
Mr. Mecsics: First thing that we have here is a Presentation from MBS Capital Markets regarding potential refinancing of Series 2005 bonds.
Mr. Sealy: Good morning Mr. Chairman and Board. My name is Brett Sealy. I'm a managing partner with MBS Capital Markets. The Board had previously engaged my firm earlier in the year to explore the potential of refinancing opportunities pertaining to the CDD's outstanding series of bonds. Included within your agenda package are

presentation materials and just to confirm everybody's got those in front of them so I don't need to do a shared screen?
Ms. Bums: Correct.
Mr. Sealy: Terrific, thank you. If you'll turn to page 2, I will be brief with the commercial on the firm because it had previously been provided, but for the benefit for those Board members that may riot be familiar with my firm MBS Capital Markets is a registered broker dealer that specializes in special tax District finance The key professionals and partners of the MBS firm have completed approximately $15 billion of total financing representing about a thousand separate transactions. Together with our current firm and our predecessor firm that actually had starting working on the Lake Ashton project back with the original series of bonds issued by the Lake Aston Community Development District in 2001. We've completed about 174 refinancings over the course of the last 10 years with a volume of about $1.9 billion. This isn't something that we just dabble in. It's something that we specialize in and frankly solely focus·on as the business efforts for the MBS firm. If you will turn to page 3, we've provided an outline specifically of the 2005A Bonds which are the bonds that cl,Jrrently qualify or are a candidate for a potential refinancing. The bonds were originally issued back in 2005 in the principal amount of $7,705,000, together with the 20058 bonds which have since been paid in full. The bonds funded a portion of the public infrastructure for the Ashton West project. Originally the assessments levied in connection with the 2005A bonds were levied on 416 planned units of the golf course, however, as you are aware the special assessments in conjunction with the golf course have been pre-pai and approximately 100 home owners have pre-paid their assessments leaving 316 lots within this phase that are subject to the 2005A bonds. The 2005A bonds are currently outstanding in the amount of $3,915,000. They became optionally callable some time back. As mentioned the 2005 bonds are no longer outstanding. The 2005A bonds, have an interest rate, currently interest rate at 5.38 and a final maturity of May 1, 2036. I'm turning now to page 4. As we approach refunding, there really are two different structures that are available to the District that we can employ. One of them is a public offering, which is very similar to what was done in order to issue the bonds at the outset. A public offering in this case, in order to achieve the best economic result would typically require ob ining a credit rating and potentially credit

enhancement in the fonn of bond insurance and a surety bonds. The other option is a private placement where we would put out a credit package to a number of banks and then seek term sheets from those banks as it relates to the pursuit of the refinancing. How we proceeded with COD refinancing over a course of many, many, years, has oscillated back and forth between greater economic benefit in the public offering market and at times greater economic benefit in the private placement market. More recently, we've put bank packages out on approximately a half a dozen different COD refinancings and we've had rather limited response from banks. Now, we are hopeful in light of news of a vaccine and banks reengaging in the market that perhaps we will start to get more of a response going forward. However, we still have the opportunity of the public offering market. Based upon the recent term sheets that we've received back from banks and the current interest rate environment in public offering market, these two markets in terms of economic benefit, are almost on top of each other. If you'll turn to page 5, as mentioned even with either one of the pursuit of public offering or private placement, the credit analysis that's done is essentially the same. A credit package in the case of a public offering would be prepared and sent to one or more bond insurers and rating agencies as well as banks. Those credit packages look essentially identical with some slight variation. Essentially what they are looking at are the underlying credit dynamics, including level of vertical build out, assessed values, the size of the assessment area, what's the diversification or concentration, what's the collection history, etc. Very similar across either one of those alternatives. If you will turn to page 6, what we've done here is estimated the refunding results under the assumption of the pursuit of a public offering, specifically because that is a very known market. The private placement side of the market is a little more tentative at the moment. So what we decided to do was to run numbers based upon the public offering as mentioned right now, the economic benefit of those two scenarios has been on top of each other. Given the certainty of the public offering market, we went ahead and ran numbers and made assumptions based upon our knowledge of that market based upon our daily activity and involvements therein. If you look at the top, there's $3,915,000 of bonds outstanding. The current interest rate is 5.38 and the final maturity is May 1, 2036.  We estimate _if	we  refunded  those  bonds  the  new  principal  amount  would be
$3,890,000.  The blended interest rate, based upon current market conditions,  would be

December 18, 2020	Lake Ashton II CDD

about at 2.25 and we would maintain, as required by Florida law, or match the maturity of the current maturity of the 200.SA bonds. I will stop at shortly and allow you to ask some questions. When we do pause, we are going to talk about the use of funds within the existing trust estate, specifically the debt service reserve fund. At the moment, we've made the assumption that it can be utilized as a source of funds towards the refunding. However, based upon convenance in the existing bond documents, further exploration regarding the ability to use those funds will need to be investigated and discussed. If you don't mind, put that to the side, just for the moment, and I'll finish walking through the assumptions on the refunding. If you come to the box below still on slide 6, where it says estimated refunding results in red, you will note the $3,890,000, an average interest rate about 2.25, and a final maturity of May 1, 2036. We've assumed that we could attain bond insurance, essentially credit enhancement as well as surety bond in leu of a partially cash funded reserve fund. The result being an estimated net present value savings of about 17.5%. Now, most cities and counties will use a benchmark of 3-5% net present value savings to make a determination whether or not they are sufficient economic benefit to refinance a particular series of bonds. So, in this particular case, the estimated refunding results and specifically the net present value savings percentage estimate is well in excess of that typical 3-5% benchmark. In terms of annual debt service savings what does it mean to the residents? That's really the key question here. In this particular case, the estimate is about an $81,000/$82,000 per year reduction which is just over 20%. Anytime that we are in the double digits on annual reduction and when we hit that 20%, those are pretty significant savings for the Board to consider. If you willtum to page 7, what does it mean to an individual resident? As mentioned there are 316 single family lots or homes subject to the 2005A assessments. The current per unit assessment per the tax roll is
$1,263. To the extent the District proceeded with the refinancing and we were able to secure this level of economic benefit, the assessments would reduce to approximately
$1,005 for a reduction of about $259 and that roughly 20;5% annual reduction. With that, I will pause and certainly respond to any questions that anyone has regarding the presentation and then based upon those questions we can then talk about what the next steps may or may not be.
Mr. Mecsics: Are there any questions?

Mr. Zelazny: The savings that is applied are only for those people that have not prepaid this money, correct?
Mr. Sealy: Yes sir, that is correct. Anybody who has prepaid is not subject to the assessments and therefore would be unexpected by this refinancing as they have previously pre-paid the special assessment associated with this series of bonds.
Mr. Mecsics: Question on this, as this goes down I would assume that this would reduce the revenue coming into the District itself.
Mr. Sealy: That is correct. To the extent the District proceeded with the re-financing it would, beginning with the tax year of 2021, correspondingly reduce its debt service levy as a result of the fact that the debt service on the new series of bonds had been reduced.
Mr. Mecsics: Brett, is this then separate from the assessments we do for O&M? Mr. Sealy: That would be correct.
Mr. Mecsics: So, if we refinance the bonds residents that have paid their bonds off, it doesn't affect them at all. If you still owe on your bonds, you will see a $259 a year savings. This does not affect the revenue that we have that comes in on the O&M side of the budget. This is strictly dealing with the debt service side of the bonds?
Mr. Sealy: Correct.
Ms. Burns: I will point out this too, for the residents that are under the Series 2006 assessment area, they also are not affected by this refinancing as well. Just like the residents who paid off their Series 2005.
Mr. Sealy: Perhaps that just might be a good time to add, in regards to the 2006 Bonds, we did go ahead and do some preliminary credit work as it relates to the 2006 Bonds and the 2006 Assessment area to make a determination whether or not that particular series of bonds qualified or was a candidate for refinancing. Based upon the current level of vertical build out and the number of vacant developed lots that are still held by the Developer builder, at this time it would not qualify based upon our knowledge of the underlying credit criteria that both the banks, as well as the rating agencies and insurers have. So at time, the 2006 bonds are not a candidate for refinancing, we would continue to monitor as we would typically do with all Districts that we were previously involved with serving in the capacity as the underwriter for financing to monitor for potential refinancing opportunities.

Mr. Mecsics: I'm just going to clarify it for everyone. If we do this, the O&M revenue coming in will not be affected. It will not adversely affect any of the folks who have already paid off their bond payments.
Mr. Hill: I'm not sure I understand you correctly, you said there was a limited market for these bonds. Do you have an actual buyer for these bonds?
Mr. Sealy: So, there's not a limited market, there is a limited number of banks that are participating in the private placement market. In the public offering market there are, and specifically when obtaining an investment grade rating - and insurance, the depth of that market is very, very significant. It spans from very large institutions and publicly traded bond funds down to retail investors. Now we have a very significant institutional number of institutional accounts, we typically do not retail bonds. Specifically here in light of the investment grade rating and the credit enhancement, even without that retail market or pursuit of that retail market, there is a significant market for medium investment grade, or even low investment grade rated bonds with credit enhancement from a double A insurer. The answer is there is a very strong market on the public offering side.
Mr. Mecsics: Any other comments, questions? Alright, do we have motion to go forward?
Mr. Zelazny: Just one more quick question. With the refinancing everything looks
very positive in terms of savings for our residents. Is there any downside?
Mr. Sealy: That's a very good question. Certainly we've covered the fact that residents that have pre-paid would not be affected by this, it would not affect O&M. We would not be increasing the maturity. We would not be seeking to increase the principal amount of the bonds outstanding. In addition to that which I did not mention that I should have, is that the numbers that we've shown you are all are net of all costs. So this isn't what the gross savings is, but then when you have to come back and fund the fixed cost of issuance of the bond issue and the numbers are going to be different. All of our numbers assumed are net and take into account any cost of issuance. In tenns of cost of issuance, typically all of those costs are funded by the bond proceeds themselves, so in terms of is there a negative to refinancing bonds that would provide for approximately an 20% annual reduction without increasing maturity and increasing principal and therefore

not necessitating a public hearing? I think we could both draw the conclusion that there isn't a downside to that scenario.
Mr. Hill: If we move forward with this, what would the closing day, do you have an idea of when that might come about?
Mr. Sealy: Yes, in light of where we are, coming towards the end of the year. While we are still working and working until the end of the year, the next step here is for us to finalize our credit work, prepare a credit package, and put it out to the rating agencies, insurers, and banks. Based upon where we are at the end of the year, I don't anticipate, even if we pushed that credit package out, that we are going to have much reception during the next two and a half weeks. So, what we would anticipate would be pushing a credit package out the door after the first of the year, being able to hone in by the end of January on a specific direction, are we going to go the public offering route, or the private placement route. Then from there, it's about 45 to 60 days, on the back end in terms of closing. So, we really shouldn't have any reason why we would not be able to wrap up a closing by March. I do think that it may be time to have the discussion regarding what needs to happen in the interim while we are looking at the underlying credit dynamics. Sarah, would this be an appropriate time to have the discussion on the reserve and deferred cost or do we want to hold on that?
Ms. Sandy: Yes, as Brett previously mentioned this in his presentation regarding the ability to use all of the funds in the reserve for the refinancing, which would certainly impact the numbers that you are seeing. There are important funds in there that we have to ensure under the indenture could be used toward it, so that would be something that we would need to look into while MBS is doing the credit work. If the Board wants to move forward today, part of that would be authorizing myself to look into the deferred cost issue to make sure we can use all the reserve funds towards the refinancing. Does the Board have any questions in regards to that?
Mr. Mecsics: ,One of my concerns here is the O&M. We just went through the increase in the O&M just this year. You've mentioned something about impact upon our capital reserves. Could you clarify that a little bit more Sarah, since I thought I heard the cost of issuance would be with the buyer and any cost would be rolled into the overall refinancing.

Ms. Sandy: Yes, I apologize let me clarify that Not the capital reserves in terms of what we fund with the O&M budget and that we use for the long term cost of the District. When I say reserve funds, under the trust estate there's an account called the debt service reserve fund. In there money is held in case there's a default on tt'le bonds and those monies can be used to pay debt s.ervice. They are usually held until a certain point in tjme when they can be released and used to pay off the bonqs. In the refinancing we would obviously be trying to take those funds and use them towards the refinancing. So, it's a completely separate account than the capital reserves that is funded with the O&M.
Mr. Mecsics: Okay thank you for clarifying. Any other comments? Do we have a motion to continue an analysis of this?
Ms. Burns: Just one thing before we do. We didn't defer to the audience for public comments or to the computer. So, I think before we take any votes we may want to do that. Just because we didn't get it to everybody in the audience a chance to speak, or anybody on the computer.
Mr. Mecsics: Any public comments regarding this?
Resident (1209 Sawgrass Drive): Based on the past year or two with fees and stuff like that, I think it would be really good to know how much our attorney is going to cost us to do this and what the service is to refinance this. We hear this savings and it looks great, and then when it all plays out how much is that g9ing to be impacted? Thank you.
Mr. Mecsics: Thank you Joe. Any other public comments?
Ms. Burns: I'm happy to address that question if the Board would like. As Brett stated On the cost of issuance for the bonds are paid out of the cost of issuance fund, including legal fees, our fees for the assessment reports, etc. so there would not be any O&M expenses that are paid towards this refinancing. All of the fees would be paid out of cost of issuance for the bonds.
Mr. Mecsics: That would be my concern. As we are going through this and all of a
sudden we get, with all due respect to our legal staff, a $300,000 analysis and then that would wipe.out whatever we are trying to do.

On MOTION by Mr. Zelazny, seconded by Ms. McKie, with all in favor, Moving Forward with Refinancing the Bonds, was approved.

Mr. Sealy: Thank you very much and we will report back to the Board as information becomes available. We will get started right away and since we won't see you all Merry Christmas, Happy New Year, and we look forward to seeing you after the first of the year. Thank you.
Mr. Mecsics: Thank you.

FIFTH ORDER OF BUSINESS	Approval of Minutes of the November
20,	2020	Board	of	Supervisors Meeting
Mr. Mecsics: Do we have any additions or deletions?
Ms. Littlewood: I have a comment on the meeting on page 24. I'm not sure but for a minute a Ms. Littlefield has appeared, instead of Ms. Littlewood.
Mr. Mecsics: Okay, thank you Angie. Do I have a motion to accept the minutes?

On MOTION by Mr. Zelazny, seconded by Ms. Littlewood, with all in favor, the Minutes of the November 20, 2020 Board of Supervisors Meeting, were approved as amended.

SIXTH ORDER OF BUSINESS	New Business/ Supervisors Requests
Discussion Regarding Landscaping (Requested by Supervisor Zelazny)
Consideration	of	Agreement	with	Yellowstone	Landscape	for Landscape and Irrigation Maintenance Services
Presentation from Yellowstone Landscape
Ill.	Presentation from Applied Aquatics
Mr. Zelazny: Due to a lot of resident interest I have asked for two principal contractors to join us today to talk a little bit about how they support us in maintaining the aesthetics of the community. I'd like to first introduce Pete Whitman from Yellowstone Landscaping, he's here today. They are responsible for all the District's greenspace and flowerbeds and that includes the mowing of all the grass around the retention ponds from the pond's edge to the residential property line. If you don't mind I'm going to have you

December18,2020	Lake Ashton II COD

hold because Archie is in his car and he's calling in via Zoom audio. I'm going to remotely introduce Archie Campbell from Applied Aquatics. Again he's joining us from Zoom today 1:1nd he's going to discuss the issues with maintaining over 30 ponds that are on thewest side.
Mr. Campbell: Hello, I'm Archie·  c ampbell with Applied Aquatics. We maintain all the ponds for you alL I have, two techs that are there once a week, on Mondays mostly. Our scope of work is to keep all the exotic and nuisance plants down on the shorelines. We try to maintain the algae the best we can. Algae becomes a problem because of nutrients and Florida is a nutrient  enriched  environment plus all the hot days we have is a great environment to grow algae. We can only treat the algae every 14 days, so every two weeks. On these trouble ponds that start  looking good and by  the time we get back to them again, they start looking bad again. I talk with Bob and stay in contact with him. We are kind of limited as to what we can do sometimes and I hate it. Are there any questions?
Mr. Zelazny: Archie can you talk about the four different types of treatments  you do on the lakes?
Mr. Campbell: We treat some submersed, emersed algae, floating plants too. I know on Rattlesnake we treat with all the hyacinths. If anybody has been there for a while, Rattlesnake Lake was probably about, not quite half, but it was getting pretty close with floating plants on it. We maintain that on a quarterly basis on Rattlesnake. All the other retention ponds we are there once a week so they all get treated at least once a month, if not twice a month.
Mr. Zelazny: I know it's a little unusual, but has anybody have a question for Archie?
Mr. Zelazny: Archie thank you. Now I'd like to bring up Pete Whitman from
Yellowstone up and talk a little about our contract and Dana, who's our Supervisor out here.
Mr. Whitman: Thank you very much for having us everyone. My name is Pete Whitman. I'm a Regional Manager with Yellowstone Landscape and this is Dana Bryant, and he is the Account Manager out on the property. For those of you that don't know Yellowstone Landscape, we are one of the largest providers in the entire country. This is

our bread and butter, doing communities like you own. We do full service landscape maintenance. when I say full service I mean we are doing all the mowing, and the trimming aspects of the community. We're doing the weed control; we are doing fertilization and chemical treatments. We are doing the mulching, irrigation inspections, palm pruning, etc. We are basically once stop shop for all the services for the community and we have been out here for about 6 years now. With this community our contract calls for roughly 40 to 42 mows per year on the bahia and St. Augustine areas. On the undeveloped  areas it is a little less frequent. We will be in a higher frequency of mowing in the summer months, basically weekly mowing and then in the winter months we go to biweekly mowing. We like to stick on a trimming schedule of getting through a full rotation of the community once a month for trimming the hedges and shrubs. Weed control as an ongoing thing, basically we try to keep it at bay. We are always going to be fighting it with a summer rains, but I think we are in a pretty good place right now. With you guys having mulch in the contract two times per year, that is very helpful with keeping the weed pressure down. On the fertilization side, we are fertilizer the turf 4 times per year, and then we are doing the shrubs and trees and palms 3 times per year. Irrigation inspections we like to get through monthly, we send in reports and make sure you guys know what's going on with the system. Palm pruning, like I said, is we are doing those 2 time per year on certain types of palms 3 times per year on other types of palms. The mulching is performed 2 times per year and we power wash I believe 2 time per year the walls, the monument caps and stuff on the exterior of the property. I want to introduce Dana just so he can tell you what we've done this year, what we got going on right now, any special projects, and just some task that we are looking forward to in 2021.
Mr. Bryant: Good morning. I've been overseeing this property since March. During this time we've gone back and forth with the acquisition of the golf course and who's going to take care of what. I think we've now got a definitive map on who's going to be responsible for what areas and who's going to maintain what. We've recently done some pushback in some areas that people had concerns regarding the encroachment on certain areas over on Pebble Beach and behind the driving range. We've looked at the Boulevard and we've discussed revamping the plants on the Boulevard and we've been in discussion about what to do with the medjools. That would probably be our major project,

December 1a; 2020	Lake Ashton II COD

outside of your normal maintenance schedule which is in itself pretty much a fulltirne job for onsite staff, we would look at revamping the Boulevard during the spring and the front entrance. Any questions?
Ms; Littlewood: You say that you do weed control work. Where do you do the weed control? Is it just in the beds or is it in the bahia or where qo you do the weed control?
Mr. Bryant: Bahia not so much. Bahia is unirrigated turf and generally there's very little weed control, unless specifically requested. Weed control is primarily St. Augustine and in the beds themselves.
Ms. McKie: How many people are on the staff that come regularly here? Mr. Bryant: You have a two man crew.
Ms. McKie: And their hours are basically?
Mr. Bryant: Their hours are from 6:30 to 4:30, Monday through Thursday and then a couple hours on Friday to spruce up the clubhouse or anything specific that may have been requested. You know Florida weather we get some storms every once in a while so we hate to leave a property for 3 days. We will come in first thing Friday morning just in case there was a thunderstorm on Thursday night and a palm limb came down or something or otherwise they blow off the clubhouse and blow off aroun·d the parking lots and address the parking lot.
Ms. McKie: And you said you pretty much worked out what Yellowstone does and what the pro shop does. That's all worked out?
Mr. Bryant: Yes, absolutely. Ms. McKie: Okay, thank you.
Mr. Hill: First of all I know nothing about landscape, other than how to cut my own grass but one of the residents pointed out to me that we shouldn't allow the grass clippings to be blown into the lakes it causes a problem with the lakes. I think you guys are all addressing that to make sure that the grass clippings don't get cut and blown into the lakes, is that correct?
Mr. Bryant: That's correct. We do not want to mow grass into the ponds. The mowers that we use have a closed shoot. The shoot is always facirig away from the pond itself. The ponds are string trimmed 21 times per year so that the trimmings themselves there may be some grass that ends up in the ponds as a result of the string trimming,

because there is no real way to stop that but in reality it is far less grass that what that naturally just grows into the ponds on its own.
Mr. Zelazny: One other thing, when you answered Colette's question about the staffing, you do have the detail team that you've called in about every month so you might explain that too to the Board so they understand what their function is.
Mr. Bryant: During the height of the season in order to support the two-man team and not let them get behind, I'll usually bring down a detail crew about once a month to just hit everything just extra or give them a hand.
Mr. Zelazny: Before getting into the last part of the presentation, let me just point out that you've seen some dead trees, especially over by the parking lot. We've taken some trees down and the golf course has taken some trees down. Yellowstone has put in the proposal and bid that we've approved that they are going to start stump grinding the trees that are already down, and then we are going to cut down the rest of them the next week. Again, these two contracts make up almost a fifth of your budget to maintain the community in the standards that they are. So, you need to be aware of that and if you haven't been around and looked at some of the areas they cut, go around and drive and look at some of the retention ponds that we have. We have 30 some of them in the west and they maintain the slopes on all of them on the residential side. They do a very good job as does the Applied Aquatics. For those of you that remember, when we took the golf course over back in the December time period, those ponds had not been maintained for almost 2 years. Applied Aquatics has done a tremendous job on that as has Yellowstone in reclaiming the grass around those ponds. I think you are getting good value for your dollar. We just renegotiated their contract based on what Colette talked about when we just renegotiated the areas of responsibility. We moved some of them back to the golf course and put it in the golf course budget so we could reduce the O&M budget for the residents. But I'd now like to address some specific questions about the plants for the Boulevard. We talked briefly about it at the last meeting. Let's start with the easy one first and that the dead medjool palm tree outside the gate, which was struck by lightning and subsequently died. Colette has a picture of it. We have a bid to remove it and if agreed to today, it will come down immediately within the next week. Having said that there are no plans to replace it until such time as the issue of the medjools is resolved. We have some

December 18, 2020	Lake Ashton II CDD

time for that because as Dan and Pete alluded to, we really shouldn't be doing anything landscaping side until around the March period when we are past the freeze. So for the medjool outside we are going to take it down, if the Board agrees today that that's the course of action we want to take. The second issue is in terms of complexity quite a bit, and that's the Hawthorne shrubs that line the Boulevard, the center isles an  islands  of the Boulevard, As you can t II we have a significant number of missing and dead plants. The number at last count is approximately 160 Hawthorns that need to be replaced. In addition to doing nothing, we have investigated a couple of options on how to. address that. First is to replace the missing and dead Hawthorns and again have uniformity on the islands. The Hawthorns aren't working there because of issues with the irrigation system not being high enough to adequately water those plants. So, if we do the Hawthorn solution, then we are going to be looking at an irrigation solution that corresponds with it. The other two things that Dana talked about was replacement of the Hawthorns and we have two plans on the table for consideration going forward in the spring. One is to replace the Hawthorns with Oyster plants and the other is to replace  them  with lxora. And if we do that we will take the existing remaining Hawthorns and reposition them around the community where we need them. The third issue is the illedjool palm trees that are susceptible to the lethal bronze disease. That lethal bronze disease has already killed  6 of our palms. We had 14 along the Boulevard, 6 of them have died and have been removed. In order to keep the existing plants alive we underwent an inoculation program and we've been inoculating our trees for about 18 months. Now the inoculation doesn't cure the disease it just limits the expansion. It keeps it under control.  So it's not to say that the disease can't overtake the palm tree until it eventually. We've been researching   a number of options in this area. I don't won't to get into too much detail because Colette going forward into the new year will have a series of workshops and groups to look at these solutions, but the first one is to replace the 6 trees that have already died. This is the most expensive option. As you know the East had a bid to replace one of their trees last year, and the bid was $6,500 for one tree. We have 6 trees that need to be replaced, approximately $6,500 a piece. If we do that, the trees are still susceptible to the lethal bronze disease that could kill one of them at any time. If we do that, then it would be another $6,500 to replace the tree. Plus you couldn't plant anything for a year because

you have to decontaminate the soil and get the disease out of the soil. So, it's a very expensive gamble if you want to go that direction. The 2nd option is to replace the medjool palms with a different type of palm that is not in the same palm family. We have done some research Mary and I and Colette and two options would be either a royal palm or fox tail palm, which could be procured for under $2,000 at tree. It would require us to replace all of the trees along the Boulevard and relocating the medjools to somewhere else within the community. And then a 3rd option, which is the most cost effective, is obviously remove the trees, relocate them to another area, and then replace them with  an ornamental street light that lights the Boulevard because right now we have no lights down the Boulevard. Again, there's no decision on these, Colette has agreed to take this on as 3 projects moving forward. So this is just really an information update so you know that we are working at it, we're aware of it, and hopefully we will come up with a resolution in the spring so we can do something.
Mr. Mecsics: Thank you Bob. Excellent presentations. Is there anything else on that area? Hearing none,

Discussion of Supervisor Areas of Responsibility (Requested by Supervisor Mecsics)
Mr. Mecsics: Six years ago when I first came on the Board we looked at how other Boards have worked. All Supervisors had input and it was almost a freefall. So what we came up with at that time was designating various Supervisors with responsibilities of the areas. Now each Supervisors still has a vote and they have all the discussions when we have our Board meets, but for the day-to-day operations and oversights of those, we designate different areas. We have some, in fact we've included a newer one this  year for this Board. The first one I'll talk about is grounds and landscaping. That's the oversight responsibility which includes monitoring, landscaping contract, ponds and lake maintenance as well as advocacy, and that's the most important word  there, advocacy for landscaping plants and programs. This area also includes the same requirements for the two District dog parks. I like to have Colette accept and take that position there. Next is budget and operational and strategic. Develop and advocate for the Board approval and adoption operational budget actions regarding District current year budgets. Additionally, advocate budget strategy for out years based upon the Lake Ashton II

reserve study and responsible for maintenance and updating the reserve study based upon inputs and staff. Duff, I'd like you to take that please. Public works, this is one that will keep you busy; Oversight for plans and operations involving the District's transportation system to include roads, paths and bridges. Advocate programs and requirements for those based upon consultation with the District Engineer. Responsibilities also include community residential street lights arid infrastructure. Angie, I'd like you to take that for me please.
Ms. Littlewood: I've clearly been misled here because here it says the discussion of Supervisor areas. I want to know how this was all delegated, because I have not been involved in any of these discussions about Colette, Duff, and I. I presume, Bob is going to keep golf, I presume you keep the HFC. So, who decides what?
Mr. Mecsics: In the past that has been the responsibility for the Chair. I know not everybody is not going to get what they want. I don't mean this to be derogatory, but you guys are new and I want you to develop as Supervisors because and in the future when we change out, then we will have Supervisors that are cross functional and can pick up other ones.
Ms. Littlewood: This is an elected Board of five people. There shouldn't been one person that is autocratically delegating things. There should be a discussion. The forum, we were all asked this question and I specifically said that my expertise was in property management. That's what the residents voted for. Now you are giving me roads, really? I have no experience in that.
Mr. Mecsics: I'm sure Duff is not well experienced in the budgeting or Bob or Colette. That's an area that we need someone to oversee and I'd like you to do that.
Ms. Littlewood: Well, here's where I see the Chairman's role. I see the Chairman's role as being obviously involved in this. I don't see him being autocratically elected to just decide what people do. I see him being the casting vote if there is a tie and I see him keeping the meetings in order. I don't see the Chairman as ruling the Board.
Mr. Mecsics: Well, I appreciate that input and that's the way we have worked now for some time. Thank you.
Ms. Littlewood:  This ha:s clearly  all been  done without me being here,  and I was
quite taken aback this morning when Bob spoke to me about this and gave me  some

advice and I asked why you were giving that advice. He said because you've got public works. I don't like that, I don't like being blindsided. I don't want this to happen again, and I want that to be made clear at this meeting. This is not a club; this is a Board of five individual people and things need discussing. So, that's going to change.
Mr. Mecsics: That's your opinion. Thank you. On the golf course, pro shop, and Eagle's Nest, I'd like Bob to continue on with that. I will stay with the public safety unless somebody wants to take that over. You can have that as well. Amenities and District support that will be the HFC, I will be overseeing that. Facility and Field operations, I'd like Bob to be the advocate. As we go through the budgeting process, especially the facilities and a lot of things, I need an advocate. We do that with the different projects within the facilities and that includes the gate shack, this facility, the courts, that all goes on that. = I'd like you to do that, Bob. Planning, this is something new, and I think as we go into the future, because I truly believe sooner or later you are going to see out the west get a whole lot of development. In fact there's a lot of things going on with the property owners out there. Colette, I'd like you to take the planning. Now understudies, to ensure the continuity of operations each area will have an understudy  Supervisor.  The training of the understudy will be through a training plan which includes an in depth description of the function along with points of contact within the areas. This will all be done within the context and constraints of the Sunshine Law. Angie would you like to be my understudy for the HFC and that area?
Ms. Littlewood: Sure.
Mr. Mecsics: I would like for you to do that please. Colette would you like to do the understudy for the golf course?
Ms. McKie: Yes, I will.
Mr. Mecsics: Duff, is there an area that you would like, because I know you are going to be busy with the numbers.
Mr. Hill: I'll do whatever you ask me to.
Mr. Mecsics: I would like you to do the understudy for Public Safety. So that's what I want everybody to be, because what happens now is that if as the Chairman, if I'm off station or off property, Bob is the Chairman, he's acting in my stay. I want to make sure that we have continuity this whole Board all the time.

Ms. Littlewood: So, I'm not doing planning anymore? Or am I doing planning? Am I doing the roads and whatever it is?
Mr. Mecsics: Yes and I'm going to Write you up a training plan that you'll understand every bit of it. For planning, I believe we need to act and think like a governmental entity and an association. As such we should have plans for our different areas. I'll pick on poor Angie, but there is things within the infrastructure that we need to help and you will understand who's responsible for taking care of say the lift stations so it's not new to you and you have it all for it. I don't want you to be caught off guard. There's going to be some plans, one on public safety, grounds, each one of those areas will have a little bit of a plan for themselves. We are not going to do any of this overnight. We also have a lady, I don't know if you know Mary Clark, she's the Vice President of Polk State University or College, and she does all the planning, she;s going to help us with the strategic plan. Because I think we need to have a strategic plan with all the input and that sort of stuff. So that will be things you will see coming down the line as well.
Ms. McKie: In regards to the Sunshine Law, on two levels, the turnover of information and experience for example I got about 5 inches of files from Bob that I'm going through. As far as questions on the past or questions on current issues, how do we stay within the Sunshine Law? We might need to talk to each other. In regards to the understudies, how do I learn about the golf course if we can't talk about the golf course?
Mr. Mecsics: That's where that training plan comes in, Bob will write up a training plan so you will have it there so you really don't have to talk to each other. Then you will know what he does, and for specifics, I would focus you through Jillian. That way it keeps us all legal.
Ms. Sandy: Just to be clear, if you are writing up a training plan that you would
then provide to another Supervisor, typically things that are written are subject to the Sunshine Law as well. But this is not something that is coming before the Board or an action. This is more of a historical perspective that you are putting together. If you have further questions, we can include it on the agenda in the future and then  you can have the conversation in the Sunshine whether that's regular agenda or workshop of some kind.
Mr. Mecsics: Okay. Thank you Sarah. I just used Bob as an example.

Mr. Hill: In regards to the Sunshine Law, when we have an issue that you feel like you need to talk back and forth, I asked for you to call Jill first. The only reason being if you call the attorney, that clock starts running and it's expensive clock. So any questions that you might think need to go to the attorney, first please run it by Jill so she can keep our expenses down.
Mr. Mecsics: Well said. Moving on.

Update Regarding Settlement Agreement and Flowage Easement with Neighboring Landowner, Vernick
Mr. Mecsics: I'm going to turn this over to Sarah. Let me start this off, a joint coordinated letter from the lawyers was sent to the property owner for him to sign allowing an easement to his property specifically in the case of his reclosing in the futur:e of the waterway that impacts Lake Ashton. So far he has not signed the release, he has taken down the obstruction. He has also requested we consider helping financially with that bridge. While we do not want to spend any more than residents money from both sides our Legal and Engineer suggest we do establish an impact that the previous blockage caused in case of future litigation. I've asked Sarah to give the Board a rough estimate of expenses and update. Sarah over to you.
Mr. Sandy: Just to provide the Board a little back ground on what has occurred since the last meeting. As Jim mentioned, we did. send the letter over with a draft settlement agreement that the Board approved last time. I think that was probably late November that we sent that. We heard back from Mr. Vernick on December 11th • His request was via email, and really didn't focus on the settlement agreement or the flowage easement that we had sent over. Just to be clear, he had originally asked for a mutual release of claims which is where the settlement agreement originated from. He did state that he had removed the pipe, but then did not really acknowledge or discuss the settlement agreement or whether he would be agreeable to sign them or if he had any issues with them. We have received another email yesterday, I believe, from Mr. Vernick. Again, not on point to either of those items. I believe he also reached out to Supervisor Mecsics at some point during this time. So, I give you that background just to say, unfortunately there hasn't been a lot of progress made on the settlement agreement or flowage easement at the point. As Jim indicated in some of the correspondence that he

December 18, 2020	Lake Ashton II CDD

sent he discussed potentially putting in a more permanent structure. We do have the worry that, even if the pipe has been removed, and even if things have been going back  to normal at this point in time, if we don't have the settlement agreement or flowage easement in place that does not prevent something from happening in the future or for  Mr. Vemick from installing something else. So while we do we have this momentum we would ask the Board to authorize the District Engineer and District Counsel to continue trying to make at least one more push to at least get Mr. Vernick to come to the table and negotiate and execute that settlement agreement and flowage easement. We think  it's our best opportunity to prevent this from happening again in the future and from  ending up right where we were about a month ago. Happy to discuss that more with the Board if you have questions. The not to exceed, these are some very rough estimated costs for Jim. I believe that number is for both District Engineer and District Counsel costs. Sorry Jim, I didn't have it written down.
Mr. Mecsics: Yes, it's about $5,500.
Ms. Sandy: That's correct, $5,000-$5,500, which again would be split between the Districts.
Mr. Mecsics: Obviously, because we would be sharing the costs with our friends
on the East side and I'm sure it will come up because I did discuss part of this with Mr. Plummer at their meeting on Monday. Do we have a motion to continue forward, or more discussion on it?
Mr. Zelazny: Have we looked, have we been able to get out and look at the barrier now that it's down? I know the water level down is now to like 17.2. Which is significantly lower than it was. I think you previously you had said you wanted it about 16.4 something. So do we know the condition of when he took the pipe out, do we know how far he lowered the berm?
Mr. Rayl: No. We have seen from air boat on our side of the fence that the pipe and the crossing have been removed, we don't know if all the material was removed from the ditch bottom. We don't know if it's been restored to pre altered conditions. We did observe full flow in the ditch section but there could have been an obstruction immediately below the surface that we couldn't see from there. So, part of this remaining effort that was discussed was making an onsite visit. I was going to bring some GPS survey

equipment with me to take some shots to memorialize the conditions that we found. I've been in that ditch a couple of times already; I'll know if the bottom is where we expected  it to be. But no, we don't have full knowledge that the alteration has been completely removed. To your point about water levels, I read it this morning before the meeting and
17.23 on the staff gage, it's dropped 10 inches since the beginning of September. So, it was heading it that direction, of course it was just being throttled down and restricted and recovering much more slowly than what is appropriate.
Mr. Mecsics: Any other discussion?
Ms. McKie: Alan, the measurements that you took, we have also had less rain, so can you tell how much is from the changes that were made versus the amount of rain fall that we haven't had?
Mr. Rayl: No, we haven't done any sort of studies and it would be a pretty in-depth thing to do. We have had a couple of large storm events that have come through in that three month period. Even as the obstruction was taken out it was in advance of this most recent storm that we had and the water level did go up again. Just because that's just what happens in the storms, and the ponds haven't had a chance to recover yet either. SWFWMD has been keeping water level data on our lake, all of our lakes and others throughout the District, and you can access it going all the way back to the beginning, back in '99. You can see when we've had hurricane events come through and how it has fluctuated. But over time, the lake rises and falls and fluctuates normally. The low point in those fluctuations has gradually got higher over the years. Sometimes that is due to cumulative impacts in the water shed. But no, we haven't really hadn't separated rainfall from the physical alterations. We will just have to keep watching it.
Mr. Zelazny: Do we have a commitment that the East is still on board to contribute 50% no matter what the cost to resolution is? We would need a vote from our Board because we capped our involvement  at $5,000. So, if we are going to proceed, because I think the amount of money we've spend to date, if you divide by half we are pretty close at not exceeding the $5,000.
Mr. Mecsics: You are correct Bob. I for one, don't care too much to expend any more money, but also realize we have to posture ourselves if we had to do go into litigation. I did talk to Bob Plummer and he said he would it would be talked about in his

December18;2020	Lake Ashton II COD

meeting, but I also said to him that we are not going to front all the money. It would have to be a joint effort.
Mr. Zelazny: I would think that any motion then should, if we are making a motion to continue to proceed, it should be caveated with we ne d to have a confirmed commitment from the East to fund 50% of whatever the cost is. I think that we·need to come up with a cap on our side because we can't continue to hemorrhage to fix this problem.
Ms. Sandy: From what I'm hearing ,I think the motion would be to authorize District Counsel and the District Engineer to continue negotiations regarding the settlement agreement and flowage easement at a not to exceed $5,500 subject to Lake Ashton contributing 50% of the costs.
Mr. Hill: My comments have to do with the invoices we received from Alan and from the attorneys. They are supposed to be split 50/50, and I don't understand whether the atto ey are splitting them and sending each side a bill or are they sending  one bill  into us and we are going to give it to Jill and Jill's going to tell Sharon to split it? Then how do we control and keep track of the money that is due from the East? We need some sort of method set up for this.
Ms. Burns: The invoices that are being submitted for Alan and Counsel for both Districts  have  a  code to  them so they  are   separated  from  the . regular  general  fund
expenses. When they come in, Sharon kriows the account codes, and they are split equally between the Districts. If there's a $5,000 legal bill, it's billed $2,500 to Lake Ashton
and $2,500 to Lake Ashton II. One District is not fronting the money and then billing back and forth. Those invoices are being split and paid from the general fund.
ML Hill: I understand that's the way, you are handling it but how can I see that this is getting handled properly and we are being paid back by the East about these funds?
Ms. Bums: You are not being paid back because if you get a $5,000 invoice, you are not paying $5,000 and then they are paying you $2,500. If you get a $5,000 invoice from Sarah, $2,500 is being paid from Lake Ashton IL We are not paying anybody back.
Mr. Hill: We are not pc1ying the full bill; we are paying half of it. Okay, that's what I needed clarification on. Thank you.

December18,2020	Lake Ashton II COD

Mr. Mecsics: Jill there needs to be a method by which to identify, which portions of those invoices that have come in are shared invoices.
Ms. Burns: There are account codes on them. It's the same as when we have construction related or golf course related invoices, they are a separate code that comes in and it says "water settlement issue" on it. It comes in a completely separate bill from the general fund issues. Alan's all have a code on them that Sharon knows. It's pretty common for us to have specific issues that are billed to different accounts. The attorney's invoices and the Engineer's invoices are all set up this way.
Mr. Mecsics: And to Duff's point, he gets an invoice for $7,000 for legal fees for the resolution of the lake level. When that invoice comes to us it doesn't show $3,500/$3,500. His invoice shows $7,000. He's saying how can I track how much money is coming out of my budget when I get an invoice that says $7,000.
Ms. Burns: When they go to Sharon it's then split and coded and there's a note put on it before it's paid, that says $3,500. I mean that's the only way to do it. I mean you don't want Sarah billing Lake Ashton and generating separate invoices. When you see anything with those codes, just know it's 50%.
Ms. Sandy: We can't bill Lake Ashton I; they are not our client. So we can only bill directly to Lake Ashton II. However the Boards have agreed to split the cost 50/50, then that's handled on the accounting side. Same thing with Jan's bills.
Ms. Littlewood: So everybody knows I'm not good with numbers, but I do know that if you are trying to balance your books at the end of the day and you've got an invoice for
$7,000 but you've only paid $3,500 of that, then it's not going to balance.
Ms. Burns: Before they expenses put in on the accounting side, the expenses put in at $3,500 and there's a note on the account. So, when the invoice is input into the accounting system, we have a $5,000 invoice the expense is put in at $2,500, and then the payment is shown at $2,500.
Ms. Littlewood: So, how does that work if you get audited. If the COD II has got an invoice for $7,000, how's that going to match up in an audit if we've only paid $3500?
Ms. Burns: The auditor would ask the accountant, there are usually notes on the invoice. When they look at all the invoices, there's a note that this was billed to account number 1, this was billed to account number 2, they would have say there was an official

24

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interlocal agreement, or there was an agreement between the two Boards to share the cost. We can go into this all day, this is super commoh, we do this all the time for Districts. We can get into the woe's on the accounting on the back end but I can assure that Alan's bills, Sarah's bills, Jan's bills are all being split equally betw·een the Districts, they are coded appropriately, their all put into the invoice. It's something the auditors are used to seeing. I mean I can go through this you all day, if you want, but this is really common with Districts. It's also common if there's a different accounts if you are billing something to a portion to capital reserves vs. general fund. They are used to seeing this, Sharon's use to doing this.
Ms. McKie: So, we get the financials and they are also public. Is there a way, since this is so common from your side, it may not be common to us and our fellow residents. Is there a way to have some kind of notation showing especially something in regards to this farm? So, that when people look at that and we are only actually paying half of this, that there can be something in writing.
Ms. Burns: When you look at the financials, you are not going to see the other portions. So in that scenario, you are not going to see the $5,000, all you are going to see is the $2,500 paid. You are not going to see the other half. It's not going to show up on the financials, because it's not an expense and you are not paying it.
Mr. Zelazny: I guess that the confusing part, Jillian, because when we ask for the copies for the invoices for this month, because we are significantly over in engineering and legal fees this month. Without peeling the onion back too far, you take the invoices that you provided me, and you add them up, then that's what I've spent on legal fees or engineering. The majority of those items that are in those invoices are dealing with the level of the lake. So I'm just saying when I take the invoices and I add them up, and I look at what our expenses that are outlaid, they are pretty close, I wouldn't say they are exact, but they are very, very, close. Certainly not 50% off. If it shows up in the invoice down below as an expense, then does the money from the East then show up in the miscellaneous income froni during the revenue line?
Ms. Burns: You are not receiving revenue from Lake Ashton.

Mr. Zelazny: I didn't take my calculator out, but I kind of did the rounded numbers of the invoice on legal and engineering for the last two months and they show up as an expense on our budget. But 50% of them are associated with the leveling of the lake.
Ms. Burns: I can have Sharon pull all the invoices from Jan, Alan, and Sarah for the amounts and split them and show you the exact amount for this issue that's been sent. But you are not going to see revenue for Lake Ashton coming into your account, because they are not paying you. So, you are not going to see any revenue transferring from one to the other, on either side.
Mr. Hill: Just to be exact we are about $7,000 over in engineering, $7,000 over
budget in legal fees. So, I'm going to go directly to Alan. Alan is $9,800 half of what you think you have billed us for the work on this water issue.
Mr. Rayl: I don't have my numbers fresh in my mind. I can certainly easily put all that together. Everything that I've done that's been related to the Lake Ashton outfall, I've put under a separate job number and I send as completely separate invoice from all general services work and things like that so, I put that time in a different pot. I can come up with all those invoices and then whatever as Jill said, whatever invoice total was, it get funds half from COD I and halffrom COD II.
Mr. Hill: The total amount is about $23000 between legal and engineering, and I just want to make sure if you could go back to your records and see if you can clarify that up so I can feel comfortable with the numbers. I just want to make sure we are not paying all of it, and the East is not paying their fair share.
Ms. Burns: I will have Sharon look at that, and we will absolutely verify it. If one of them was coded incorrectly, and just coded to general counsel as opposed to the water issue, we can just back it out. It's easy.
Mr. Zelazny: I just noticed the annotation at the bottom obviously from Sharon, which indicates that that particular one has been split. So, if she does that on all the invoices, then we just need to go ahead and do our on calculations and make sure it is. So, if she's doing that on all the invoices I think that meets our requirement. I appreciate that.
Ms. Burns:  If they are coming  in, at the point  you are seeing them, they may  not
have gone to her yet. Depending on where you are getting the invoices. If they are being

December 18, 2.020	Lake Ashton II CDD

sent directly to the HFC and you are getting them from Mary, they haven't been coded and sent to Sharon yet. So, if you didn't see those notations, they may not have gone through her yet. If that makes sense.
Ms, McKie: So as a summary then, the question of we need to be sure that the East is paying their 50%, we don't have to worry about that. Because it's automatically being dorie, we don't have to get a guarantee from them or talk them about it all.
Mr. Zelazny: We need their guarantee that they are going to fund before Sharon reassigns the bill.
Mr. Mecsics: Before I call for the motion, I encourage all of you anytime you have
questions, pick up the phone and talk to Jillian. She has all the time in the world for us, especially late at night when I call her. Please I encourage you; especially when you have questions with the money. Contact her because we can't talk with anybody. Contact her it is very important.
Mr. Hill: Jillian, I noticed there is no annotation on the legal bills on the invoices.
Ms. Burns: I will double check those with Sharon. We sent her all the account codes that Sarah set up. There's a specific code, if for some reason it was missed and billed to the whole thing, she will just correct it. But she has the account codes for Jan and Sarah and Alan that refer to this issue.
Ms. Sandy: If you look at the top of our invoices there's a code, I believe LACDD 00107. That's our code for this issue.
Mr. Mecsics: I know we were starting a motion, Bob do you have a motion? Ms. Sandy: Do you want me to repeat the motion?
Ms. Burns: I have it here, it was to authorize District Counsel and the District Engineer to continue with a not to exceed amount of $5,500 subject to confirmation from Lake Ashton that they would like to also .continue to fund 50% of that cost.
Mr. Zelazny: Do we need to increase what our maximum contribution was which was $5,000 or $5,500, to another level, or are we going to hold firm with that $5,500, which we might have already reached?
Ms'. Sandy: This would be an additional $5,500.
Mr. Mecsics: We have probably gone over our allotted amount based upon somethings that where done previously. What I'd like, Jillian, is a full accounting of what

we have paid for so far, for legal, engineering, etc. on this water thing. Then we'll have to re-adjust that because the original motion we did way back when was to a certain amount of money. So we would have to reallocate or re-justify that number based on actions that have happened previously. We will have to go forward with this as per not to exceed
$5,500 together. That's what I understand.
Ms. Littlewood: I just have one more question because I've just been newly promoted to Public Works. Is this mine now, is this my baby now?
Mr. Mecsics: I wouldn't do that to you. This was originally Doug's and it was passed on to me. My action on this will finish it up and you don't have to worry about that. I wouldn't do that to you. Should we have a motion from us to agree with what Sarah said. Do we have a motion on that?
Mr. Hill: No more than $5,500?
Mr. Mecsics: No more than $5,500 contingent upon the affirmation at their meeting that they will pay for half of it.
Mr. Mecsics: Any other questions?
Mr. Hill: I have one more issue, and it's really not being unneighborly, but this issue was really an issue for the East, and we have gotten involved to solve this issue and spent quite a bit of money. I'm to the point where I don't think we should exceed $5,500, that should be it. Anything else needs to fall on their shoulders.
Mr. Mecsics: My recommendation to the Board on this would be, once we are done, and this is essentially evidence in case we have to go to litigation, then we put it on hold, and we go from there and see what happens. Any further discussion? Alright, I call for a vote.
Mr. Zelazny: Before we leave the subject, could I ask for a full accounting of all costs associated with this effort at the next Board meeting.
Ms. Burns: I've already sent the invoice request to Sharon. I can forward it to you. Mr. Zelazny: Thank you.

December 18, 2020	Lake Ashton II CDD

On MOTION by Mr; Hill, seconded by Ms. Littlewood, with all in favor, Authorizing District Counsel and Engineering to Continue to Pursue Settlement with an additional Not to Exceed Amount of $5,500, subject to Confirmation that Lake Ashton CDD will Continue to Pay 50%,of the costs, was approved.

Discussion Regarding Guard House Utilities
Mr. Mecsics: Sarah, this is over to you, and I think this is related to the defecation spill we had a couple of months ago.
Ms. Sandy: That's correct. I just wanted to give the Board a brief update on that and I will actually hand it over to Alan on this.
Mr. Rayl: I've been coordinating with James who was involved in getting service restored again and getting repairs made. We've also been in contact with Winter Haven about the original design and construction. We haven't gotten all the information we needed from Winter Haven to know exactly how things were originally constructed. What we found is that the guard house was constructed at the same time as the other infrastructure There appears to be some information on what original plans we've been able to find that showed a sewer line running to where the small lift station is. There's no connection information shown on Winter Haven's utility atlases which we got and are in our records now that show every water line, every sewer line, every lateral, every water service in the entire community that is owned and maintained by Winter Haven. It does not show elements like plumbing coming to HFC, plumbing going to the Guard House, and that is the missing piece we are trying to investigate. Based on what James and I have spoken about and the repairs that he had to make, it does not appear at face value that that system was designed and permitted correctly. The work that James did should have been in an original approved design consisting of valves that don't allow back flow to occur, which was evidenced as being necessary. So, as I said, we are still looking into that but I'm satisfied from our discussions that he and I are going to go out, so I can see for myself what repairs were made. I'm satisfied that the work that has been recently done will keep any ocqurrehce like that from happening again.
Ms. Sandy: There's no Board action requested at this time. Alan, as he said is still
following up on it to try and confirm ownership of the utilities. There is  some potential

December18,2020	Lake Ashton II CDD

additional work that would need to be done if it is determined that they are owned by the District, which we will bring back to the Board.
Mr. Mecsics: Since that will eventually fall under Public Works, I will finish that up so you don't get stuck with that Angie. How's that sound? Trust me, you wouldn't have wanted to been looking public works when we were out there afternoon. That was the most God awful thing.
Mr. Littlewood: Actually, I walked through the gate when you all were out there and I could smell it.
Mr. Mecsics: I saw you were laughing as you went through.
Mr. Hill: By the way you didn't give Angie an Assistant for her area, I'd be glad to be an assistant to her.
Mr. Mecsics: Thank you.

Ratification of 2021 Data Sharing and Usage Agreement with Polk County Property Appraiser
Ms. Burns: This is an agreement required annually from the Property Appraiser. It's more administrative in nature for my office. It has to do with not disclosing exempt parcels that are sent to us. Certain occupations like police officers, judges, and elected officials are exempt from having their names listed on the tax bills that you see online. So, we just have to sign an agreement saying we will not disclose them when they are turned over to us. This is just administrative in nature, we are just looking for a motion to ratify.

On MOTION by Mr. Zelazny, seconded by Ms. McKie, with all in favor, 2021 Data Sharing and Usage Agreement with Polk County Property Appraiser, was ratified.

Ratification of Non-Ad Valorem Contract Agreement with Polk County Property Appraiser
Ms. Burns: Polk County is the District that requires us to enter into an agreement every year so are using the tax bill now to collect our assessments. The Property Appraiser provides us with that listing of assessments that allows us the put all the assessments on roll. We have an existing agreement, this is for the November 2021 tax

Dec::ember 18, 2020	Lake Ashton II CDD

bill that will come out next year. If you want to use the tax bill to collect the assessments, you need to approve this agreement.

On MOTION by Mr. Zelazny, seconded by Ms. McKie, with all in favor, the Non-Ad Valoi"em Contract Agreernent with Polk County Property Appraiser, was ratified

Discussion Regarding Annual Performance Measures for Indigo Golf -
ADDED
Existing Criteria .from Golf Course Food & Beverage Management Agreement dated April 24, 2020
Ms. Sandy: This was added to the agenda as a result of Supervisors Zelazny at the last meeting or the meeting before mentioning he was discussing with Indigo Golf revising the criteria that is attached to their contract. They are evaluated each year. Originally, there was going to be a committee to review these criteria that would then bring those to the Board. Now instead, Supervisor Zelazny as a Board representative is going to be working with Brian and coming up with his recommend tion on the proposed criteria and bringing it back to the Board. However, he had some suggested changes on what those criteria would be and what you have in the revised agenda package is the existing criteria as well as the proposed changes. I did not participate in putting together the proposed criteria, so I would have to turn that over to Bob and Brian for them to discuss.

Proposed  Criteria Provided by Supervisor Zelazny and Indigo Golf
Mr. Zelazny: When the original contract was laid out it was done early on, the annual performance measurements were included. If you look at some of the criteria, they were primarily focused on a public golf course venue where you have outside play coming in versus a membership role. It also was heavily on comment cards that would be provided by outside play coming in. What we've attempted to do by refocusing it focusing in on the same five areas. We've done the survey and the survey is completed. There are questions in the survey that are applied to each one of these categories numerically. If you talk about greens; there would be ratings 1 to 10, fairways, 1 to 10, etc. You can actually then get a firm numerically rating on any one of these categories. One of the caveats that has changed is the F&B operations, which is really focused on the dollar

December18,2020	Lake Ashton II CDD

amount because that's our bottom line. I would offer that as a good annual performance measure. If it doesn't work this year we can amend it going forward. Billy Casper has worked with me on this. We agree on all the terminology, all the rating schemes, and I would ask that we accept this as a replacement for the annual performance measures so that we can go ahead and get on with this year's evaluation. Do we need a vote on this? Ms. Sandy: We do, because we will have to amend the contract. I do have one question Bob, that I just noticed when I was reviewing it. It looks like 3 of the categories, which total to about 60 of the points, are based on a customer service satisfaction survey. That doesn't leave a lot of room for the Board itself to have input if the categories are solely based on a survey going out to customers. I just wanted to make sure that was the
intention. The 3 categories are customer service, maintenance, and F&B operations.
Mr. Zelazny: That would be correct. The evaluation would be basically  numerical in regards to responses to the survey. I provided you the list of questions that were applied to each one of these categories. The Board still makes the decision on if they are going to pay any performance. We want to bring these results back to the Board. The Board ultimately makes the decision, but these are the criteria by which a performance pay would be received.
Ms. Sandy: Maybe I would just say that we might need to add a little bit of language in those areas because there is almost a formula for how the points get applied based on the survey. So, we might need to just add some language in to indicate that. It's that the Board has some discretion on how those points are applied. I don't have the language off the top of my head, but we can work on that.
Mr. Zelazny: Brian might have some. The questions that are identified in the survey all have numerical numbers associated with them. So it's not subjective, there are firm numbers on how the golfers feel about the golf course.
Mr. Rhodes: Exhibit Bis updated, but the contract remains the same as far as that goes. We did do an addendum  to the contract  that would allow, instead of a committee, it would allow Bob to bring it to the Board. So it's kind of eliminated the committee. As far as I remember, in the agreement that we had it's still the Board's decision. So even if we failed miserable on this customer satisfaction survey, the Board could still award a financial performance if they chose to do that. Now, I would never think that would

December 18, 2020	Lake Ashton II CDD

happen, but the way that the original agreement was written in the RFP, I believe it states that. It's up the Board's decision. We could ace this; and the Board would still have their decision to be made on how they are going to award the performance.
Ms. Sandy: 1.understand that, in order to award a bonus we need to have system in place. So I wouldn't recommend that the Board adopt this and then not comply with it. I just want to make sure that the system we are putting in place is going to reflect what the Board actually wants to do. I just want to confirm that's how it will be handled.
Mr. Mecsics: Do we have a motion?

On MOTION by Mr. Zelazny, seconded by Ms. fv1cKie, with all iri favor, the New Exhibit B as Amended for the Proposed Criteria for Annual Performance Measures for Indigo Golf, were approved;

Mr. Zelazny: Sarah, I will send you a copy of the survey and the questions that are associated with each one of the categories so you can see what the evaluation criteria is. I'll provide that to the Board as well.
Mr. Hill: I hate to talk after we have already voted on, but it just came to me, are any of the pro shop personnel pay plans based on what kind of results they get from the survey?
Mr. Zelazny: No.
Mr. Mecsics: Okay, thank you everybody.

SEVENTH ORDER OF BUSINESS	COVID Procedure Update
Mr. Mecsics: Unfortunately the pandemic numbers and  hospitalizations continue to rise and we've been monitoring federal and state guidance. As a result, we have limited time that guest from out of town may visit the HFC and pools. We have done this around the holiday season as it is common for friends and visitors to come in. This was done to accommodate those residents that do have visitors coming in as well as protecting our residents who do have conditions and are more vulnerable to the virus. As an update, we've had a report that one of our vendors, two family members had tested negative and he tested positive. As a result to that, obviously he will not be coming here but also we

are going to have all of our staff tested this afternoon to make sure they are negative. They are doing some cleaning in the areas there as we speak right now. Any more discussion on COVID-19?
Mr. Hill: I just think we should continue to show and abundance of caution, this is still pretty serious and we can't be too careful.

EIGHTH ORDER OF BUSINESS	Supervisor Comments
Mr. Mecsics: Next is Supervisor comments, because we don't have that on the agenda.
Ms. McKie: I have 3 pretty simple questions that have been asked to me, and since I'm was not one of the decision makers in these issues I thought it would be fair to share with all the residents. The East is going through a process to modify their covenants, conditions, rules, their CCNR's. A portion of it has to do with removing words and verbiage about the Developer being involved because they are no longer involved. There are other rules that are being discussed. I think that the one that is the most concern to our residents are the signs. The "For Sale" signs, the signs for political candidates or issues, both on the houses and then signs and displays on carts. The question has been asked of me what's the difference between what they are going through and where we are in our process? Let me give you all of them, then you can answer. If the East residents and Board would decide to allow signs. Does that put pressure on us to do the same thing?
Mr. Mecsics: That's an HOA matter, and the COD and the HOA are strictly different. In fact the COD, they can choose to look at the covenants and all that, but they are not required to adhere to those. They are exempt from that. I can tell you that in that case, those questions have been referred over to our HOA which still refers to the Developer. As far as COD, there is no verbiage about signage, etc. in the amenity policy that Bob had worked on. At this point in time, if they have questions have them go to the HOA and they would be glad to address them.
Ms. McKie: Okay, and we won't be going through a process like that until the houses are all sold, is that correct?

Mr. Mecsics: Yes, there are approximately 80 more home lots to be sold, and then at that time it will be turned over to the residents to establish their own HOA and then at that time they can address all those things.
Ms. McKie: The next one hais to do with folks on Sawgrass, they would like an update about the lift station there. Bob summarized it last month, is it the Winter Haven's responsibility, is the Developer going to do it, or are we going to end up doing it? I took some pictures, it's a pretty big area. There's a lot of frontage area, a lot of that lift station is visible by a lot of the people on Sawgrass. They would like to know what the status is.
Mr. Mecsics: I discussed that with the Developer and I haven't' gotten an answer back. He's out of town right now, and I will hit -him up on Monday when he comes back. It's either between the Developer or the CDD that owns the property. That may fall under us, but once I get an answer I will send out an email or send it through Sarah for an update to everybody so you can let everybody know.
Ms. McKie: My 3rd question, again it has to do with confusion of people not understanding the processes. I've had several people ask me about getting a job as a marshal for the golf course. The reason they are figuring that is a paid position is because when the employees at the driving range were leased, people understood that the Indigo now would notbe having residents be volunteer because there was compensation. So, would you explain so that it is really clear and we have it in the minutes of where that is?
Mr. Zelazny: Indigo does not have volunteer employees, and they do have people on their staff that marshal. Matt marshals, Ron marshals and then when they are going off shift, or on shift they do the drive around. There are currently 3 COD volunteer that do not work for Indigo but they represent the COD. That would be you, myself and Joe Elwood. They are not associated with Indigo, they are associated with the COD enforcing COD policies and while they are out there doing that, they are checking to make sure that people have paid to play because it's our facility. We are tracking it from the COD perspective, Indigo has their own marshals that worry about pace of play and if people have paid and things like that. So, there's two groups, COD volunteers which are sanctioned by the COD Board to represent them in enforcing policy.
Ms. McKie: And the COD Marshals we are not getting any compensation in finances or any kind.

Mr. Zelazny: No, they are volunteers working for the CDD. Mr. Mecsics: Are there any other Supervisors?
Ms. Littlewood: I'm just going back now to the COVID thing. I'd forgotten  about this, but some friends that come to water aerobics, I was out with them last week and they were saying that the gate to the Rose garden is locked. Is that correct?
Mr. Mecsics: During the hours we have someone there to check people in, so they don't come in and by pass, they come through the front gate.
Ms. Littlewood: The gates are not locked anymore?
Mr. Mecsics: The gates when no one is there checking it, that gate is locked. Yes.
Ms. Littlewood: My other thing is at the last meeting a lady brought up about the stop sign on Sawgrass and I know you spoke to her afterwards. What was the outcome? Mr. Mecsics: I talked with Mary and we did look at the engineering, and yes we fulfilled that and the stop sign is valid. We are going to add a sub sign where it says 4 way stop which is what she asked for, and it's allowed under the code. Her and I chatted at length with that and she was satisfied with that as well as the other work with the strategic planning. Any others comments? I have one last one. We have volunteers that help out front here, we don't have a lock. I've asked Mary to look to into sitting up, what I call, a CDD II Volunteer Core, separate from the Marshals. I'd like to have small cadre of volunteers that assist the CDD staff and they do a great job. With the increased staff time demand required by the pandemic and looking for the future, I've asked Mary to assist me in developing a plan for an established group of volunteers, like the CAP program. They would go through a short training and orientation program to assist in all facets of the CDD, specifically the HFC. Then we would provide the volunteers shirt and we will look for charitable donations companies to get them shirts that identify them as auxiliary to the staff. We are going to be coming up with a concept to be presented to all our folks
on the Board. If there are no other Supervisor comments, we will move to the next item.

NINTH ORDER OF BUSINESS	Staff Reports
Attorney
Ms. Sandy: I have nothing unless the Board has any questions for me. Mr. Mecsics: Any questions? Hearing none,

Engineer
Mr. Rayl: I've got a few things for the Board today. One, I wanted to let you know, and you may hear more about this in the golf course update from Indigo, but the contractor has been hired to make the repair on Hole number 9. I spoke to him on the way over here, and their expectation is to begin work probably mid-January. They are only working a couple more days this year. So, with the work they already have on the books, we'll look for them about then. They will coordinate with me, we'll coordinate with the golf course, and make sure everybody's up to speed on when they will be here. I think the work start to finish is only supposed to take three days, so it should be a large inconvenience to play. Also, we quote for that inlet top at Pebble Beacli, Ashton Boulevard outbound. I wanted to make·sure the Board understood that the work that was done at Pebble Beach and Sawgrass was a complete rebuild and a heavy duty top that was done there,  that was $4,300. This is the same contractor. This quote is just to repair the damaged portion, it's not a complete redo of that lid. We got 2 bids, but they were again the low bidder and their quote was $2,000. I just wanted to make sure everybody understood it wasn't going
to be a complete heavy duty re-o, it was just goi.ng to fix the damage that was done. If that's how you want them to proceed, we can let them know.
Mr. Mecsics: Is the contractor who did the damage going to fund it? Mr. Rayl: That's what I was told.
Mr. Burns:-We reached out to them initially about the damage and reported it, and
I'm waiting for some additional information from Mary but we are in contact with the vendor.
Mr. Rayl: So how do we want to proceed with that? Do we want to authorize the work to get done?
Mr. Mecsics: My concern with that area right now, we still have construction trucks coming in and out. I want to get it fixed and I want to have these guys on the line to fix it and pay for it, but I don't want to have it and all of a sudden two weeks later, we are right back out there again. That's my opinion.
Ms. Littlewood: Is the corner too wide for the trucks to get around? Is that why there's a recurring problem? It has been done before, so is there a problem with the actual corner?

December18,2020	Lake Ashton II CDD

Mr. Rayl: It's not anything related to the design. When I'm doing a design, I try not to put inlets in the return of the radius because people will short the corner and run over them. It happens not just here, it happens everywhere. I've even done it. There's nothing substandard in the design of it, it's just the problem when you have inlets in the radius of the tum. It's a common occurrence.
Mr. Hill: I was there the day the guy ran over the curb and broke the curb and they didn't swing the truck out far enough. One truck came by swung out quite a ways and he was okay and the next truck came by and did not do the same, and that's when he did it. So, if they were just nice enough to swing out further it wouldn't happen.
Mr. Zelazny: Alan, there's another one of the drains over on Pebble Beach and the outbound road which is cracked. We had elected not to do anything with that for a while. How extensive is the one going into Sawgrass? Do you feel that it needs to be repaired now or can we just clean up the concrete that's laying around the sidewalk and everything and wait until the last couple of homes are built?
Mr. Rayl: I don't think there's a safety issue associated with it right now. I do think it's at risk for continued damage just as every other one is when there is construction that's going on. It's kind of the same as we've done with the inbound pavement, we wanted to try to wait as long as possible until heavy duty construction traffic loads were off of it to the greatest degree possible before we spent money on repairs. I don't think it's a safety issue, I think if we have a cone or 2 there that the residents don't object to having be there for a little period of time, it could be something we could afford to wait on. Mr. Mecsics: I know you and I have argued back and forth about safety and esthetics, but what I would like to suggest is that if it's not  critical today, I would ask that it be deferred so that Angie has a chance to investigate and we can get some options. Give her a chance to look at what the other road priorities are. We have a number of them. I know that Duff has spent a number of hours driving around identifying parts of the roads that he thinks that are in need of repair this year. I know you've done your report. I would recommend that we just roll it into the report and then allow Angie to have the time to review it and make a recommendation to the Board in January. If it's not time sensitive
to be done today.

Ms. Littlewood: My concern would be that if we get the vendor or contractors to pay for it, if they agree to pay for it which they should if it's their responsibility, would there be a timeline on that to get it repaired? Because they are not going to hold on forever with the money.
Mr. Rayl: I would say that would be a time sensitive component of this, they may lose interest in being cooperative if they are being cooperative now.
Mr. Mecsics: Angie you prioritize, we can pull the plug as long as it's not  costing us any money. As soon as that resolves itself, then we can move forward right away, I would think. But otherwise I would put it on the list and have Angie prioritize what she wants to do. Over to you Angie dear.
Mr. Rayl: I will coordinate with you and Mary and see if we have the means to get
that paid for by then. Then we can look to move forward on it, if not we'll add it to the report. In that same vein, we talked about not doing any of the next round of repairs that
had been identified in this year. We did have a bid that we used for budgeting purposes. We'd planned on sending those out to get new numbers to be able to start planning for 2021's repairs. I'll coordinate with you on that as well. Next, we have some certifications due to SWFWMD that we were not able to do. Some repairs were needed some areas
and other areas we just couldn't really identify what the lakes were doing because of the impounded water levels. Now that water levels have dropped, as low as they've been since I've started monitoring them, I think we can revisit some of those things and also some of the grading repairs that we looked at. Some of the banks have eroded. Pond 11 is the pond that's right behind the driving range, and we've looked at that about where some of the banks have sluffed off. There wasn't anything that could be done when the water levels were high, we may·see if a contractor can give us a quote to now work in those areas where we couldn't before. Finally, the extension of utilities to the bathroom building of Hole number 6, I hope to have that plan submitted to the city of Winter Haven next week. We are having a hard time getting information back from TECO, they are just not responding to anything. I think that's all I have for the Board unless you have questions.

December18,2020	Lake Ashton II COD

Ms. McKie: It sounds like the damage that was done by the vendor with the truck, we were lucky that we had people who saw it happen. Do we have any cameras, since it sounds like damage like that is done frequently?
Mr. Mecsics: I'm looking into what it would cost to put a camera out here and probably on Sawgrass.
Mr. Zelazny: Just a follow up to Alan's last issue with the water utilities to the restroom on Hole number 6. I ask that we approach the builder based on Mr. Robertson's presentations early on during the entire purchase effort. He indicated that the builder was going to extend the easement from Pebble Beach to the golf cart between 5 and 6 and also, insure that we have the water at the restroom. I would ask that we make sure that we get with the builder to find out what his level of commitment is to do that.
Mr. Mecsics: I mentioned that to the builder and that's another one of the topics I have for him for next week. But whatever agreement or whatever we do with that, it's going to be in writing. Because I don't care for just handshakes, it will have to be in writing. Mr. Zelazny: Another question Alan, involved with the survey with the golf course,
when we made the purchase. There's a new home that's on Pebble Beach, it's the 2nd home on the left as you drive towards the cul de sac. The house is literally 2 feet from the sidewalk. So the survey has to be wrong on where we put the sidewalk or the builder has made some kind of error, or there was some kind of an agreement between the builder and the previous leadership that said we were going to accept that. I don't know that that homeowner will be happy when he sits on his veranda and he's literally 2 feet from the cart path. Somebody's wrong, and we just need to figure out what we are going to do to resolve that.
Mr. Mecsics: I'll take that on again with the Developer.
Mr. Zelazny: As we've talked about, no more handshakes. I would like to have something in writing on how we are going to resolve the cart path issue behind the homes on the cul de sac between 5 and 6.
Mr. Hill: I wonder if those homeowners know there's going to be a cart path between their houses? The question I have is have we made a decision on the charges we are going to have for the repairs to number 9, whether that's going to be charged to the golf course or to the CDD?

Mr. Mecsics: The responsibility for the cart paths and additional mowing has been transferred to the golf course;
Ms. Littlewood: I need clarification of what I'm supposed to do, and what I'm not supposed to do. So all this you are talking about now is all golf course bridges ahd nothing to do with me anymore, that's not part of my group right?
Mr. Mecsics: No, bridges are still within your area. The ones that are associated with the golf course, you would look to Indigo to refund the repairs of those bridges. When we get to the next project on the bridges which is putting the strips down the middle to try and prolong the life of the bridges, that would be your decision on the solution set and how much money it would cost when we do it. Because we would repair all of our bridges, like to one between Hogan and the golf course is not golf course related that is the COD. You'll figure out the money and who funds what. You actually oversee all the bridge work in the community.
Mr. Mecsics·: Angie any of the discussions here with the Developer stuff that will rest with me. You want have to get involved with that as far as the cart path.

Golf Course Update from Indigo Golf
Golf Course Financial Statements
Mr. Rhodes: Sorry we provided you the financials so late, we try to get it done by the 20th•   We thought it was important that you had it for the meeting, so I know they came in late yesterday afternoon and you probably haven't had a chance to evaluate them, but I'll go over some quick highlights on them. Overall, November was a very wet month compared to historical figures. We received a lot of rain, almost double what we normally get, inclu ing the hurricane, It did impact some of our revenues, but the golf course is being utilized. Rounds are up, 897 for the month. We are still slightly down with the associate rounds and the public guest rounds. Obviously when it's not prime weather, people don't pay to play. So we are kind of monitoring that, it's still a little slower  than what we thought last month, we're still seeing what our projections are coming in as. Total revenues, we missed the revenues by $21,000 last month, and we are $25,000  behind for the year. We've been able to make up all those with the cost saving factors. Course revenues, which include green fees, cart fees, pro shop sales, range, and other golf and memberships accounted for $126,000 last month, that was roughly $9,300 below our

budget. We are $8,500 below for this current fiscal year. Our cost of goods is running slightly higher, than what we've anticipated. There's two factors for that, is the first one is we are selling more hard goods, which are clubs, shoes, balls. The profit margin on those items is less than what we would normally sell in shirts and soft goods. So it's just a merchandizing mix more than anything else. Our cost of beer is run higher than projected. Ron is working with the vendor right now because we are having some draft issues and they were incurring a lot of waste. Labor, direct labor is about $1,800 below what we had budgeted and our complete payroll burden is about $4,400 below. So, same story as last month and it probably won't change. Our employees just aren't using our benefit package or they selected cheaper. So, we anticipated that begin all year that we will be able to save some dollars there. Expenses, golf was up by about $1,100. All of that was in golf cart repairs. We spent about $1,850 dollars on golf cart repairs. Major expenses are the batteries are failing, and the carts are being utilized more than they ever have in past. Good news is we have a small fleet. Maintenance expense, we were under for the month, but I will highlight a few line items. We did find a leak, we have filled with Lake Wales a claim so we are hoping to get a credit later this year. We spent another $2,700 more than what we had budgeted green waste, between the storm and us removing trees. So, pretty good month, we missed budget by about $5,500. We are still up, we were positive. So we were $18,000 in the positive for the month, and we are still about budget by $20,000 for the year. I'll let Ron come in and tell you about what's going on in the golf course, unless you guys have some financial questions or anything for me.

Presentation by Ron Lavoie
Mr. Lavoie: I want to give you an update on the membership because it's the single driving engine for the entire golf operations. You might get a kick out of this, but I did the dues as of  yesterday  compared  to prior year. Believe  it  or not  we are a  difference  of
$135.40. What that based on is all the dues we are taking in for the year, so far, plus 2 months' worth of associate greens fees. The other difference is we are also down $85,000 in seasonal memberships. From the records that I have there were 18 Canadians last year and there are only 3 this year. So that's one of the big ones. Another one is a lot of people opted for the 6 month membership  instead of the seasonal,  and that's affected a

December18,2020	Lake Ashton II CDD

few things. We have 60 new members, 215 existing, and 68 people downgraded. Good news is on the associate, 47 people downgraded, but 44 people are new. So, it kind of offsets. When Brian was talking earlier about the green fees being down, one of the big things is when Bob and I sat down and did the budget, we figure you know you have to come up with a guess like you do on budgets, and especially a brand new membership like the associates. We thought how many time are they going to play? Is it once a week, one and a half, two? So we settled on like 1 and 1/2 but right now with all the tracking that I've done, it's really about at about .7. So we are roughly at half. Some of it is caused by weather, it's not been a very good golfing season. Hopefully, that will uptick and maybe get to 1, 1.2 especially after the first of January. The stats, we have 343 memberships, which is 56 over last year, but that translates into 539 members, husbcmds and wife's, and couples, which is 84 more than last year. Our cart rounds are up 100% over last year because everybody is taking their own. We need to do that to stay safe I understand. But I just want everybody else to know, you are going to playing on a bowling alley pretty shortly. I mean come January, when we start growing, you got four carts in every group it's going to affect it. Brian and I are trying to come up with a couple of plans, we might be doing cart paths on certain holes trying to get them to come back a little bit, especially the real narrow ones just get a reprieve. Other than that course conditions, it's nice to be a club where people are coming through your door on a constant basis and saying thank you and how great the greens are and how good the condition is out there. Again, I'm going to give hats off to Dave, the same person that's been here before, but I think with the guidance of Indigo and support from us and being able to spend the money that he needed to spend, he proved that he could do the job and they are in good condition. I try and ride the golf course almost every night. My wife and I are out there, I see everybody else. So far the volunteers are working out pretty well. The reality is, I'm out there, they are out there, most people think there's a lot of free rounds going oh, there just isn't. Have we caught some, yes. I haven't run into any major problems out there, but I think the big thing is they know someone is riding around all the time. I just want to mention to also that we have the Pink Ribbon Tournament that coming up on the 12th of January, that's one of the biggest that we have out here. Any questions or comments?

Mr. Hill: I think it's Bob's idea to take the winnings from the ladies league, the men's league, and the mixer, and require that we spend it in the golf shop. Do you think that's a reason why there was a 18% increase in what you did this year/last year on the sale you just had?
Mr. Lavoie: I'm sure that it definitely helps. Inventory in a pro shop versus inventory in food and beverage, you are buying inventory weekly in food and beverage and you are getting rid of every week, but in the pro-shop we need to move product. We have a couple of people asking why we can't spend the money upstairs, that's the main reason. We are not worried about inventory upstairs, downstairs we've got to turn that inventory  over. I try and tell this to people when they come in, Indigo manages the golf course for the CDD, you are paying yourselves. That's the good thing, and we are trying to run it the most efficient and effective way that we possibly can. Even though the sales or down upstairs, obviously they are down in food and beverage everywhere. I mean you know there's not a lot you can do to enhance that. Even when we do Trivia, it's down 50% from the prior year. Vickie knows everybody and she can tell you who isn't coming every night, the people she hasn't seen. So we are just going to have to ride that one out for the year and hopefully the vaccine works and everybody gets back to normal.
Mr. Hill: The other question I have is about the tee box there on number 12, for all the pampas grass is, it used to be about once a year they would go in a clear all the weeds and stuff out of that and make it look nice. It was overgrown pretty badly and I think it would increase the appearance of the golf course if there's was enough labor to allow someone to go in there with a heavy duty wacker and get that think cleaned up a little bit. It would improve the appearance on number 12 tee box.
Ms. Littlewood: Another question, is the any Developer still giving free memberships when people buy a house?
Mr. Zelazny: That was part of the agreement that we got $230,000 in the settlement for the golf course that for the new houses that remain they would get one free golf course. Yes ma'am.
Mr. Mecsics: Angie what has changed, is that on the resale side they don't get free golf anymore. So if you are on the East or in the West and you are buying a resale, you don't get free golf. The new homes get 1 year from the closing.

December18,2020	Lake Ashton II COD

"'1r. Littlewood: I didn't know that. Anyway, but my question is these new members that have all come, how many of them are free and how many are paying?
Mr. Lavoie: I'm sorry, the new houses you are saying how many of them are paying for golf?
Ms. Littlewood: You've got 16 new members, have they come from new homes that the builder is providing them with the free year?
Mr. Lavoie: No, the free members are not included in any of those numbers. That's totally separate. I just checked about 30 minutes ago. There are 15 pending real estate sales going on right now and I'm hoping that 20% number sticks in and there's another 3 to 5 members. I'm always looking at those numbers for the pending. Thank you.
Mr. Mecsics: Angie we have always kept free membership separate from paying members, and I think when we did the analysis a couple of months ago we were about, just at 49-50% that get free membership renew the next year. I can't remember what the number was we talked about a couple of weeks ago of how many in the next couple of months their year is going to lapse. So we are anticipating 50% of those people that are dropping off to join and then pay.
Mr. Lavoie: Just one more stats so you will know, between now and the end of April last year, we took in $47,000. More likely that was a lot of house sales that were coming to an end.

District Manager's Report
Ms. Burns: I have an answer for you already on the information you requested regarding the amounts currently billed through today for the Vernick issue. The breakdown of the fees have been emailed to all five of you so you have them already. The amount per District paid on this issue to date is $12,032;59. The breakdown of the fees for which portion were Alan's and Jan's and Sarah's have already been emailed to you, so you can see that already.
Mr. Mecsics: Thank you Jillian.

Lake Ashton II Community Director
Ms. Mecsics: Mary is home taking care of Roger who got a knee replacement, but she's working and I think she's on Zoom. She had given a Community Director's Report, and I would like everyone to take a look at that. Since she's not here to answer the questions, if you have any specific questions please feel free to give her a call.
Ms. Littlewood: I have a question that really is for the Board. Mary's asking for a new computer at $1,300, because hers keeps going on and off. Did the Board not authorize $500 for Mary to have a laptop a few months ago that she could use at home?
Mr. Mecsics: That's correct. We purchased a new laptop, the one she's talking about is the main one that she uses here. It's not dead yet, but she wanted to give everybody a heads up that it's not looking good.
Ms. Littlewood: Well, my question is she had a laptop, why can she not use a laptop at work and at home?
Ms. Burns: You should just be able to get a monitor and a USB and the actual computer so you can just see on the big screen rather than buying a whole new computer, That's how I use mine at work, I basically just plug it in and it projects on the monitor. You don't need two separate computers, everything is on the one you just connect to a monitor and it all sinks up.
Ms. Littlewood: If she wants a keyboard, you can have a wireless keyboard. I just when we put an assessment on residents' I just don't see how you can authorize $1,300 for a computer, when we've already just dumped $500 for a laptop.
Mr. Mecsics: We'll go back and take a look at it.

NINTH ORDER OF BUSINESS	Financial Report
Approval of Check Run Summary
Ms. Burns: The check run summary is included in your package. This is October 12th through November 12th• The total amount is $62,304.72. I'll be glad to answer any questions anybody might have on any of the invoices, otherwise we just need a motion  to approve.

December 18, 2020	Lake Asht n II CDD

On MOTION by Mr. Hill, seconded by Ms. Littlewood, With all
in favor the Check Run Summary for October 12th through November 12tti for $62,304.72, was approved.

Combined Balance Sheet
Ms. Burns: The financial statement is in your package are through November 30, 2020. Through the end of November we received $298,810 from the tax bill. So it's going to be starting to get some funds in at the end of November. We've gotten a significant amount more than that in the 2 to 3 weeks of this month as well. We've got our general fund replenished for the rest of the fiscal year. Those funds an continuing to come in as we go throughout the yeaL I'll be happy to answer any questions that anybody might have on the financials, but there is no action necessary.
Ms. Littlewood: I've got a question. What's computer time?
Ms. Burns: Just so you know, if you have questions on any of the line items the budget has a breakdown of every single line item. The computer time is actually the accounting software.
Mr. Zelazny: I would just like to highlight that the expenses associated with
Yellowstone that are $6,000 over what is budgeted for October/November has been addressed and resolved. One of the invoices should have gone to the golf course for mulching, one $5,000 bill for mulching was erroneously billed to us, it should have been included in the annual contract. Then when you see addendum 6 today that we discussed in the past, that reduced our annual bill by about $14,000 so that would be adjusted then taking about $1,200 off of each of October and November's bills. So, that has been corrected, or at least addressed and will be corrected going forward.

TENTH ORDER OF BUSINESS	Public Comments
Mr. Mecsics: Public comments, I think you have one that is in person and one that has called in.
Ms. Burns: We can start with tne one that's in person. Sandy, I can't make out the
last name.

Oecember18,2020	Lake Ashton II COD

Resident (1415 Colonial Court): I have to say it's been an interesting meeting today. Mine might seem like small potatoes compared to what you guys have been going over, but I have created a promotion for our water aerobics class at 4:00 on Tuesdays and Thursdays. It's been very well received and all I'm asking is a way to get it on the community calendar.
Mr. Mecsics: We will put it on the community calendar for you. That's an easy one.
Resident (1415 Colonial Court): Okay, thank you.
Mr. Mecsics: You should check with Crystal and make sure you get on the electronic board out front.
Resident (Iris Realmuto, Lot 1031): Thank you both Bob and Jim for volunteering to do hours on Sunday so the pools can be open. My question is if you can clarify, are guests allowed? Because the way all of the media has come out, it says guest are only allowed Monday to Friday 3:00 p.m. to 5:00 p.m.
Mr. Mecsics: We will allow the guest for that time, yes. Sunday hours will be longer than the Saturday hours, so yes from 3:00 p.m. to 5:00 p.m. guests can come on Sunday. Saturday it will remain the same.
Mr. Zelazny: Do you have a copy of the community blast that went out on hours? I think it would behoove us to read it into the record so that everyone who follows the minutes can pick it up. It was a good question about the one on additional hours, because between the holidays and especially when the hours are where guest can be allowed into the HFC.
Mr. Mecsics: I don't have the blast for that, for the hours of the HFC, but I'll read this. Starting December 14th through January 4th we will be restricting use of the Health and Fitness Center and pool to out-of-town visitors to the hours of 3:00 p.m. to 5:00 p.m. on Mondays and Fridays.
Ms. Littlewood: Sunday coming up just reminded me that the fans have to be kept on because of the moisture. I had a couple of friends that come to the aerobics class and they said that they can't hear because of the fans. I think I heard Sandy yesterday, asking about the microphone or the sound system put into the internet system. Is that something that can be done so that could come through the speakers? That would really help the aerobics class.

December18,2020	Lake Ashton II CDD

Mr. Mecsics: We will take a look at that.
Ms. Bums: I want to make sure we get the people on the Zoom line as well, So, anybody or any public comments from anybody on zoom. If you are using zoom's phone feature you can find that by hitting *9 and that will raise the hand. I'm going to read the last commentthat was sent through Angie but was requested to be read today. It is from Dr. Allen Gaslerand Susan Gasler, and I will go ahead and read it now.
Resident (Dr. Allen G.asler and Susan Gasler): Fm emailing you regarding two somewhat chronic conditions in regards to common area property and architectural review. I will include photos again of the condition of the pond side common area adjacent to our lot. 1his area has been problematic since we moved in in December 2017. I was given the flip flop response when you presented it to COD II, that is was issue with the Developer and conversely that it was an issue With COD II from the Developer. As you will no doubt see in the photos, the common area adjacent to our lot was never properly graded nor was it seeded or sodded. As a result muddy trenches have formed and deepened each time the mowers from COD II go over this area. I presented this both a safety issue for the operator of the mower, he tilts terribly when going over these trenches and I fear he may fall off or be injured, or the mower may topple. The safety of those enjoying the common area, it's extremely dangerous to us walk on and is unstable. It's also very unsightly, I'm sure to our neighbors on the other side of the pond. No UK pun intended. The property is sandy, full of weeds, fire ants and mud. We've tried several times to fill the area with left over sod that we have rescued from nearby dumpsters (such a waste). Upon a recent insurance surveywe were advised that.if this erosion continues and may eventually undermine our lot and home. We face southwest get full force storms here. It would have initially taken a  bob cat shovel full of dirt again,  that is hauled away by the dump trucks load by the Developer to fill the area Now I'm afraid thi situation is much  worse and will require more dirt  than  that and will require grading and sodding as
we've done on the pond front at 1515 Revere Court by the Developer upon competition
of our home. A picture says a thousand words, I'm sure this will be obvious to all. A trench
issue along our expensive water front property needs to be addressed sooner rather than later. This has been bounced around for 24 months. Thank you for your consideration in these matters. The photos were sent to the Board yesterday when it was receiyed.

December 18, 2020	Lake Ashton II COD

Mr. Zelazny: I received the email, I appreciate that. I went out and looked at it on two occasions since the email has arrived. I was the individual who met with them 2 years ago when they first moved in. We did some work out there, but we identified what we thought was the potential problem, which could be from the irrigation system on her yard. The run off is limited to one little area in the middle of her yard. It really doesn't affect her property line, whatsoever. The trench that she's talking about, the erosion area has sunk a couple of inches maybe 6 inches deep. It is covered with sod. In my opinion it's not a safety risk because people don't play on the bank. The picture that she shows where there is the mud, we only grow grass to the highwater line. We don't plant grass down the low water line so that if you look at the pictures, there's this same three feet of grey dirt, which is where the water has receded in the last two months. We can get some soil from the builder and fill it in and level it again. We will attempt to do that within the next couple of weeks but that area is turf grass. We don't plant grass there, we don't cultivate grass there, we don't sprinkle the grass there, we don't water the grass there. It grows naturally. All the other areas, I think there's been one house where we had thrown some starter seed. If we have some we can certainly do that, but that's an area that naturally populates itself with grass seed. Some other comments I just can't take seriously, I take it seriously that she's a resident and she'd like to have her area behind her house pristine. We'll go ahead and get fill soil and we'll go ahead a level it again. The bank is all basically the very same all the way around except for she has a runoff problem right in front of her house.
Ms. Littlewood: You know I spoke to her on that, I ask her to send me the email because things get lost in translation, so I wanted everything. The safety issue isn't for her or the residents. The safety issue she feels is for the mowers because of the trench, particularly since it's been so wet. It's very uneven for the mowers in there, and I know the mowers are kind of flat but at the same they've still got that motion, so that's the safety issue that she was concerned about. The other thing is that the erosion. As she said, the insurance company have said if it continues, then it could you know be detrimental to that property.
Mr. Zelazny: I'd be willing to after if you want to go out and walk it and I can show you where we were in the past.

December 18, 2020	Lake Ashton II COD

Mr. Mecsics: Alright everyone. I think we have come to the end of the public comments. The holidays are upon us, Christmas is near, I'm not going to talk about a fat goose or anything like that, but on behalf of the Board we'd like to wish everyone Merry Christmas and Happy Hannukah and a very prosperous and healthy ·New Year.

ELEVENTH ORDER OF BUSINESS	Adjournment

On MOTION by Ms. Littlewood, seconded by Mr. Zelazny, with all in favor, the meeting was adjourned.

There not being any further business to discuss,