MINUTES OF MEETING

GARDENS AT HAMMOCK BEACH

COMMUNITY DEVELOPMENT DISTRICT

The regular meeting

of

the Board

of

Supervisors

of

the Gardens at Hammock Beach

Community Development District was held on Tuesday, April  16,

2019

at 9:00 a.m. at City

Centre at Palm Coast Town Center,

145

City Place, Suite 300, Palm Coast, Florida.

Present and constituting a quorum were:			
Clint Smith	Chairman		
David Lusby			
	Vice Chairman		
William Livingston			
	Assistant Secretary		
Also present was:			
George Flint	District Manager		

FIRST

ORDER

OF

BUSINESS

Roll Call

Mr.

Flint called the meeting to order at 9:00 a.m.  A quorum was present.

SECOND ORDER OF BUSINESS	Public Comment Period	

Mr.

Flint:

No members

of

the public are present.

THIRD ORDER OF BUSNESS	Organizational Matters	
A.	Administration of	Oaths of Office to Newly	
		Elected Board Member	
Mr. Flint:  I administered the Oath of	
		Office to Mr. Smith prior to the meeting	
don't need to have it on the record.		

so

we

B.	Consideration	of	
		Resolution 2019-01 Canvassing and Certifying the Results	
	of the Landowner's Election	

Mr.

Flint:	You have Resolution 2019-01  in your agenda package.	The Landowners'

Election was held on November 26, 2018. The proxy holder for the Landowner attended and three seats were available. They only nominated one person, Clint Smith and cast 800 votes. So, Mr. Smith would serve a four-year term. We would ask the Board to adopt Resolution 2019-01 .

April 16, 2019

Gardens

at Hammock

Beach

CDD

On MOTION by Mr. Livingston	Lusby		
in favor Resolution 2019-01	seconded by Mr.			
	Canvassing and Certifying the		
of the Landowners'			
				
Election was adopted.			

with all

Results

Mr. Flint:	Congratulations!

C.

Election

of

Officers

D.

Consideration

of

Resolution 2019-02 Electing Officers

Mr. Flint: Every time there is an election, the Board is required to elect officers. Currently, Mr. Smith is Chairman, Mr. Lusby is Vice Chairman, Mr. Livingston is Assistant

Secretary,

I'm

Secretary and Arial Lovera, the District Accountant is Treasurer.	We can handle

each seat	individually or if a Board Member has a slate of officers, we can		
			
motion.						
	On					
	MOTION by Mr. Livingston seconded by Mr. Lusby with		
	in  favor  electing  the	current  slate	of	officers  as  evidenced		
						
	Resolution 2019-02 was adopted.				

have that in one

all
by

FOURTH ORDER OF BUSINESS

Approval  of	Minutes  of the  September 24,		
2018  Board	of	Supervisors	Meeting  and		
					
Acceptance of the Minutes of	the November		
26, 2018 Landowners' Meeting			

Mr.

Mr.

Mr.

Flint:	Does the Board have any additions, deletions, or corrections to the minutes?		
			
Baker:	I didn't have anything.						
Flint:  We can	handle the approval of both					
			minutes in one motion.			
On MOTION by Mr. Smith seconded by Mr.				
favor			Livingston with all in		
	approval of the minutes of the September 24, 2018 Board of		
Supervisors  meeting  and	acceptance	of  the  minutes	of	the		
November 26, 2018 Landowners' Meeting were approved.				

FIFTH ORDER OF BUSINESS	Consideration	of	Resolution2019-03		

	Approving  the  Proposed  Fiscal  Year  2020		
	Budget and Setting a Public Hearing		
Mr.					
Flint:  Each year, the Board is required to approve a Proposed Budget and set the		

date, place and time

of

the  public hearing for  its final  consideration.	The  approval

of

the

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April 16, 2019	Gardens at Hammock Beach CDD		

Proposed Budget has to occur at least 60 recommending to be held on June 25, 2019 at attached to the resolution as Exhibit A, which budget. It contemplates a Developer Funding questions on the resolution?

Mr. Smith:	Will it be formally adopted on

Mr. Flint:	Yes.	The public hearing will be

Mr. Lusby:	Is it a preliminary adoption?

June 25	th	?		
				
on June 25		

th	•		

	Mr.												
	Flint:  Yes.  The statutes require the Board to approve a Proposed Budget at least 60		
days	before	final  adoption.	It	doesn't  really  serve  as	a	ceiling,  but  if you  are  collecting		

											
assessments,	if											
		there's going to be an increase, you would	consider it at that time because you		
										
have mailed notice and other requirements.  In this	case,	it's a Developer	Funding Agreement.		

So, at the public hearing, this budget could	change	if needed, as	long as we aren't collecting		

assessments.  There is a process we would have to through to do that, but this budget doesn't		
bind the Board from making changes at the public hearing.  Normally, the public hearing would		
be in the August timeframe, but there is not a lot going on with this District.			

Mr.		th	is fine.				
							
Lusby:  June 25						
Mr. Livingston:  As long as it doesn't change			
				because I'm leaving the next day.			
Mr. Flint:	It shouldn't				
			change because we have to	If		
				advertise for the public hearing.			
Board is okay with the date and the Proposed Budget, a motion to adopt the resolution would		
in order.							
On MOTION by Mr. Lusby	seconded by Mr. Livingston with all			
in favor Resolution 2019-03 Approving the Proposed Budget for			
Fiscal Year 2020 and Setting a Public Hearing for June 25, 2019 at			
9:00  a.m.  at City Centre  at Palm Coast Town Center,  145  City			
Place, Suite 300, Palm Coast, Florida was approved.			

the be

SIXTH

ORDER

OF

BUSINESS

Consideration of Proposal with VGlobalTech Regarding ADA Website Compliance

Mr. Flint:  I am	going to suggest that the Board defer action on this item, but we wanted		
			
to get it on the agenda.  Even though this District is inactive at this point, there are still some		
legal			
obligations that the District has.  Because the statutes require the District to have a website,		

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April 16,2019																	Gardens at Hammock Beach CDD		
																							
we	created a website, but	there is a list of information													
															
																			that must be on that website.  However,		
within the  last year, there have been some lawsuits against local governments,  even private		
entities like	Winn Dixie.		I	think Target might have gotten sued as well, claiming compliance		
									
issues under the American with Disabilities Act (ADA).	I think there	were	18 lawsuits against		
																										
CDDs.  Last year it was the same complaint.																	
	Mr.																													
			Livingston:  It was the same attorney.																
	Mr.	Flint:	They are all insured by the same entity, Florida Insurance Alliance, which		
								
insures over 300 CDDs.	They settled the litigation.	I think they paid $2,500 per District, but		
part	of the	settlement was that the Districts would be compliant within 24 months; however, that		
					
doesn't prevent	another entity from coming forward and filing suit.	In fact,	there have been		
									
some more lawsuits.  This was not on anyone's radar.	It's	not just CDDs.  Its	cities and counties		

and even private entities.		So, we are trying to	bring the websites	into	compliance.	We can		

																													
develop	websites,  but to	be	compliance	with the	ADA,	it has  to	be			in  a		certain language,		

																											
																														
according to	Web Content																							
									Accessibility Guidelines (WCAG) standards.		So, we	met with four or		
													I														
																																
five	different companies and VGlobalTech is the most cost-effective solution to the issue.  They		
			
are significantly less	than some of the	other ones out there.	We negotiated a	volume price on		

																															
Districts.	We are bringing this	forward, but because the District is somewhat inactive, the budget		

is small and this would be a													to							
										significant portion of the budget, I wanted		bring it up today.  We		
																												
have	the	proposal  in the  agenda package and we  put it back on the June  agenda.	In the		
					
meantime, I	can talk with Ken, since they are	funding the operations, to		explain the situation to		

him, but at some	point, if the District	continues to exist, we are	to	have to do this.			
											
																					going					
	Mr.	Livingston:  At this time, you are spending		to set it up.									
																			$2,375										
	Mr.	Flint:  Yes.																									
	Mr.	Livingston:  Then there is a maintenance cost.													
																
	Mr.	Flint:  We recommend you just	do	the first portion and if	need be,	come back and do		
																													
the annual, which is $1,350.																							
	Mr.												of	not																
		Livingston:  Is the downside																		
																doing it, getting sued and settling it for $2,500 or		
you don't know?																												
	Mr. Flint:  The		downside is that Florida Insurance Alliance, which	insures the majority of		

the Districts, are not going to	cover the Districts if they are not taking steps to	address it.  I met		

with them last week and he used to serve on an Advisory Board, but	I		was the Chair	of their		

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April 16, 2019																Gardens at Hammock Beach CDD		
																					
Governing Board for six years.	So that's the	downside.	If	they	don't	provide insurance, the		

other options are going to be more expensive.  So ultimately, it is							
																			going to cost the District.		
	Mr. Livingston:	It's not a lot of money	relative to the budget.						

	Mr. Flint:  This is the smallest	budget out of all the	Districts I manage.				

	Mr.																							
			Livingston:  Keep your fingers crossed that nothing happens.						
Mr. Flint:	I	suggest we put it back on the June agenda and the Board can deal with it at		
							
that time.																									
Mr.	Livingston:	In the																		
								meantime, you will talk to Ken?								
Mr. Flint:	Yes.	I think Ken and I	need	to talk about the	plans for the District going		

forward	on	what they want to do.	If the															
											Board is okay with that, then we will table it.		
Mr. Livingston:  Is Ken here?																	
Mr. Flint:	Not	yet.																			
Mr. Livingston:	I did some work for										it's still with Gary		
													him on the bond process.  I think			
because	I	haven't received  any  feedback.   They  were  exploring whether they wanted to  do		
				
something						If																		
		with the District.																			
								they did then obviously everything would	change and we would		
																								
become a real District.																					
Mr. Flint:  Interest rates are favorable right now.									
Mr. Livingston:  What are they doing?													
Mr. Flint:	Its																					
					below 5% or 4.75%,	which is pretty good.								
																				
Mr. Livingston:  Prime is 5.5%.																
Mr. Flint:  There is a municipal benchmark									
																	that they go off of,						
																				which has actually gone		
down 400 basis points over the last five months.												
Mr. Livingston:  So they are still tax free then.									
Mr. Flint:  Yes.																					
Mr. Livingston:	All of that litigation worked itself out.								
														
Mr.																								
		Flint:  Yes, but you still have to be careful with Districts that are solely commercial		
that may	never transition to	resident control.		That	was part of the issue.  So, a lot of times with		

																			
Districts that are commercial, that may never trigger the 250 registered	voters.	You might do		
																								
private taxable on	that,	but the interest	rates are still pretty good on the taxable	because you have		

																									
to get a tax opinion from bond counsel and	sometimes they	are a	little	leery	of commercial		
																									
Districts.																										

5

April 16, 2019

Gardens

at

Hammock Beach CDD

SEVENTH A.

ORDER OF BUSINESS	Staff Reports	
District Manager's Report		
i.	Balance Sheet and Income Statement	

Mr. Flint:  We have the unaudited Financial Statements through March		
action is required by the Board.	We have a whopping				
				$1,046 in our bank account,		
Mr.	Livingston:  Why		we invest it?				
		don't					
Mr.  Flint:	I  don't  think  its  earning  interest.	On  the  Statement	of		
								
Expenditures, so far, we spent $995 this fiscal year through the first six months.			

31, 2019. No unrestricted.

Revenue	and

ii.

Ratification

of

Fiscal Year 2019 Funding Requests

#1

-	#3

Mr. Flint:  Funding	Requests #1	- #3 were						
					submitted to the developer under the Funding		
Agreement.	Funding Requests #1	and	#3 are for Fiscal	Year 2018, which totals $539.87.	It		

includes											
advertising and management costs.  We bill by the meeting.  Funding Request #2 is for		
Fiscal  Year 2019,  totaling	$175.	It is	for  the	annual  $175	that	goes  to the Department	of		

											
Economic  Opportunity.   Are  there  any  questions  on  the  Financial  Statements  or  Funding		
Requests?  If not, we need a									
		motion to ratify Funding		#1 - #3.			
					Requests				
	On MOTION by Mr. Livingston seconded by Mr. Smith with all in			
	favor										
	ratification of Funding Requests #1 - #3 were approved.			

EIGHTH

ORDER

OF

BUSINESS

Other Business

Mr. Flint:	That is all the business I have.  Was there any other business that the Board		
				
wanted to discuss that was not on the agenda?			
Mr.	Lusby:	At the	last meeting, we discussed the name and whether there was any		
							
objection				I	don't know, but I think it was you or someone else who touched		
from the seller.				
based with them.							
Mr.	Flint:	I	reached out to Daniel Baker and he didn't express any concern, so at some		
					
point if the	District becomes active, the District might want to consider filing a petition with		
			
Flagler County to change the name.			
Mr. Lusby:		I think it was supposed to become an active	CDD.  If we were just doing		
								
bonds that's one thing, but for long-term maintenance, it would be misleading.		

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April 16, 2019					Gardens at Hammock Beach CDD		
							
Mr.									
Flint:  Right.  At that point, you would have District Counsel engaged.  You would		
have an attorney representing the District and they	could advise you	to	prepare the petition to		

change the	Short of that, I						
name.							
			didn't perceive any	major concerns	on		
							their part, but I don't		
have anything in writing either.							
Mr.									
Lusby:  Either way.	Ifwe had a written objection it would be	one thing.		
						
Mr.  Flint:	Yes,  I	assure they would send the letter first and  give an opportunity to		
				
comply if									
there was a concern.							
Mr. Lusby:	If they	cover it in the mortgage because there is seller financing on it, then		
				
there is									
really nothing they can really do about it.  They can obviously get an injunction, but they		
are not									
going to do that.  As long as						
			you are active, you would probably spend $10,000 changing		
the name, which doesn't make any sense.						
Mr. Flint:  Right, because there's a process.						
Mr. Lusby:	It								
	depends on who you hire.						

NINTH ORDER OF BUSINESS

Supervisor's Request

Mr. Flint: Not hearing any, motion to adjourn the meeting.

if

there isn't anything else that we need to discuss, we need a

TENTH ORDER OF BUSINESS

Adjournment

On MOTION by Mr. Smith seconded by Mr. Lusby with all in favor the meeting was adjourned.

Secretary

1/

Assistant Secretary

C!Y=-~ .~

Chairman / Vice Chairman

7