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 Monday, September 24,

2018

at 9:30 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 9:30 a.m.  Mr.	Livingston and Mr.		
				
present;  however,  Kenneth  Belshe  resigned.   The  rules  contemplate  that  when		
Members are present, a third person could be appointed for	purposes of a quorum.		

Smith were two Board

•

Mr.

Mr.

Organizational  Matters:	Discussion	of Appointment		
Fulfill Board Vacancy				
				
(Taken Out of Order)		
Flint:  For				
purposes of a quorum, I			
	would ask for a nomination		
Smith:  I appoint David Lusby.				

of an  Individual  to

to fill the vacancy?

On MOTION by Mr. Smith, seconded by Mr. Livingston, with all		
in favor, the a	ointment of David Lusb  to	roved.		
	Seat 3, was a			

Mr.

Flint being a Notary

Public

of

the

State

of

Florida

administered the

Oath

of

Office

to

Mr.

Lusby.			
Mr. Flint:	I will notarize the Oath for you.	I understand that you are on two other CDD	

Boards.

Mr.

Lusby:	Yes.

September 24, 2018

Gardens

at Hammock Beach CDD

Mr.	Flint:  So you are well		
			
Public Records Laws?		
Mr.	Lusby:  Yes.		

aware

of

the financial disclosure requirements, Sunshine and

SECOND

ORDER

OF

BUSINESS

Public

Comment

Period

Mr. Flint:

No members

of

the public are present.

THIRD ORDER OF BUSNESS	Organizational Matters	

A.

Acceptance

of

Resignation

of

Kenneth Belshe

Mr.

resignation.

Flint:

Since we now have three

Board Members, the Board

can

accept

Mr.

Belshe's

On	Smith,		
MOTION by Mr.			
in favor, the	seconded by Mr. Livingston,		
resignation of Kenneth		
	Belshe, was accepted.		

with all

B.

Discussion

of

Appointment

of

an Individual to

Fulfill

Board

Vacancy

This item was discussed.

C.

Administration

of

Oath

of

Office

to

Newly

Appointed

Board

Members

This item was discussed.

D.

Consideration

of

Resolution 2018-01 Electing Officers

Mr. Flint:	Previously, Mr. Belshe was	Chairman, Mr.	Smith was	Vice Chairman, Mr.		

Livingston was an Assistant Secretary, I was Assistant Secretary and Ariel Lovera was Assistant		
Treasurer.  The Board can elect a slate of	officers or take						
					each seat individually.			
Mr.	Livingston:	Do you want to be Chairman, Clint, or do you	want Mr. Lusby to be		

Chairman?											
Mr.	Smith:	I don't mind.								
										
Mr. Livingston:	I propose electing Clint as Chairman, David as Vice Chairman,	I will		
remain as Assistant		of the slate						
		Secretary and the rest							
					would remain the same.			

2

September 24, 2018

Gardens

at Hammock

Beach

CDD

On		
MOTION by Mr. Livingston, seconded by Mr. Lusby, with all	
in favor, Resolution 2018-03 Electing Officers, designating Clint	
Smith  as  Chairman,  David  Lusby  as  Vice	Chairman,  William	
Livingston as Assistant Secretary, George Flint as Secretary and	
Ariel Lovera as		
Treasurer, was adopted.		

FOURTH ORDER OF BUSINESS

Approval

Meeting

of

Minutes

of

the  June  5,  2018

Mr.	Flint:	The minutes were provided in the agenda package.		
				
comments, changes or corrections?		
Mr.	Smith:  They look fine to me.		

Did

the Board have any

On MOTION by Mr. in favor, the minutes as presented.

Livingston, of the June

seconded by Mr. 5, 2018 meeting,

Smith, with all

were approved

FIFTH ORDER OF BUSINESS	Public Hearing	

A.

Consideration of Resolution 2018-04 Adopting the Fiscal Year 2019 Budget and Relating to the Annual Appropriations

Mr.	Flint:	At this time, we will open the public hearing,	noting for the record that	no		

members of the															
			public are present to provide comment or	testimony, so we will bring it back to		
												
the Board.	Resolution 2018-04,	adopting the budget for Fiscal Year 2019,	starts on October	1		
									!8 •		
																
You previously approved the Proposed Budget and set the date, place and	time	for the public		
																	
hearing.	We	met the requirements that are stated in the	Resolution, as far as posting on the		

website	and transmitting it to	Flagler County.	Exhibit A	to the Resolution is	the  Proposed		
													
Budget,	which  contemplates	a	Developer  Funding  Agreement  as  the  funding	source.	No		
							
assessments would	be	imposed.	It is a minimal budget.		Under the Funding Agreement, the		
										
developer would only be responsible for actual costs, not necessarily the entire budget.  For		
example, right now, because we haven't	triggered the requirement, we don't	do an annual audit,		
											
but we have it budgeted, in													
					case we need to do										
								that.  Are there any questions on the Resolution or		
the budget?																	

Mr.

Smith:	I don't have any.	

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September 24, 2018

Gardens

at Hammock Beach CDD

On MOTION by Mr. in favor, Resolution budget and relating to

Smith, seconded by Mr. Livingston, with all	
2018-04,  adopting  the	Fiscal  Year	2018	
the annual appropriations, was adopted.		

Mr. Flint:

We

will close the public hearing.

SIXTH ORDER	Consideration of Fiscal Year 2019 Funding		
OF BUSINESS			
	Agreement		

Mr.

past.	The

Flint: This budget that

is the was

same							
form of Funding						
	Agreement that the District considered		
just approved,  is	attached as	an	exhibit	to	this agreement,		

in the which

obligates

Palm

Coast Intercostal,

LLC

to

fund

the

expenses reflected

in

the

adopted budget.

On	Mr.			
MOTION by		Smith, seconded by		
favor, the Funding Agreement between the		
Intercostal LLC, for Fiscal Year 2019, was		

Mr. Lusby, District and approved.

with Palm

all in

Coast

SEVENTH ORDER OF BUSINESS	Staff Reports	
A.	District Manager's Report		

i.

Balance Sheet and Income Statement

Mr.	Flint:  We have the unaudited Financial Statements through August 31, 2018.		

No

action is required by the Board.  You	can see that our actual expenses are $1,506, and we have		
			
$1,070 in cash in the bank.  You will see the month-to-month				
	summary of the	expenses.  Two		
					
Funding Requests were submitted and	Page 4.			
	both were funded, according to		Are there any		
					
questions on the					
Financial Statements?  Hearing none,				

ii.

Ratification

of

Fiscal Year 2018 Funding Request #2

Mr.	Flint:   Funding	Request  #2  was  submitted	to	the  developer under the  Funding		
						
Agreement for Fiscal Year 2018, which totals $1,699.14.	It includes a Management Fee, FedEx		
charges and					
	advertising costs.					
Mr.	Smith:  So that's a new				
		Funding Request?				
Mr. Flint:  Yes,					
	because its dated September and the financials are through August.  Since		
it has already been	are asking for the				
	funded, so					
		Board to ratify it.		

4

September 24, 2018

Gardens

at

Hammock

Beach

CDD

On MOTION by

in favor, Funding

Mr. Smith, Request #2

seconded by Mr. Livingston, with all for Fiscal Year 2018, was ratified.

iii.	Approval of Fiscal Year 2019 Meeting Schedule

	Mr. Flint:  Each year, the Board is required to approve an		
				annual meeting	
					notice.  In the	
past, the Board approved a notice to				
		meet on an as			
			needed basis.	When you meet,	
					we will meet	
the noticing requirements.  We prepared a sample notice reflecting		
				that the Board	
					will meet on	
an as	needed basis.	If you are				
		comfortable with that, a motion to approve that	
					notice would be in	
order.						

Mr.

Smith:	Do we have an anticipated next meeting date?

	Mr. Flint:	If nothing is										
				happening, the	time that							
						next		the Board will		to meet, would		
										need			
be in the May	timeframe to	approve a Proposed Budget, and then in August/September for the		

final	budget.   We only anticipate two meetings a	year,  mostly	timed	on the	budget adoption		

													
process.  Obviously, that will	if the									
				change		District is activated.						
												
		On	MOTION by Mr.	Smith, seconded by Mr.	Livingston, with all			
								
		in  favor,  the  Fiscal  Year  2019  meeting  schedule  designating			
		meeting on an as										
				needed basis,								
						was approved.							

EIGHTH ORDER OF BUSINESS

Other Business

Mr. Flint:	That's all			
			we have on the			
			agenda.  Is there any other business?		
Mr.	Smith:	We had discussion at the last meeting about	If I		
					
			the name.			
the minutes, someone was going to			
			check on this.			
Mr. Livingston:	I read the minutes			
			and it sounds like Daniel Baker was		
staff.						

remember from

going to talk to

Mr. Smith:  Someone was going to					
			check to see if there was an objection.			
Mr. Flint:	Their concern was the		'				
							
		use of the name,			
					with the sale restriction, and whether		
that was a problem.  Daniel has not		with				
		followed up		I can call him			
				me.		meeting.		
					after the			
Mr. Smith:	You probably	My	feeling was if			
		should.					
					they go forward with the project,		
and the								
CDD played a role, it would be						
		better to conform the name to whatever	the name of the		
								
project is.  What is the						
		name?  Have you seen the plan?				
Mr. Lusby:	I haven't seen the latest one.					
Mr.	Smith:	It's a pretty ambitious plan.	It has				
				almost 4,000 units.			

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September 24, 2018	Gardens at Hammock Beach CDD		

Mr.	Flint:	I will follow up.  There's a cost associated with changing the name, which		
				
would have to be borne by the						
		developer. I guess if they press the issue and			
					insist, you may want		
to hold off on							
	changing it.  There's no	determination as to whether it is	going to be utilized or		

not.								
Mr. Smith:	It						
		would be good to get something from				
				him, saying that he	had no objection,		
								
because the agreement did prohibit using certain names.	I				
				don't remember the	exact language in		
								
the agreement, but it would probably be a good idea to get a				
				"no objection" or			
					however he wants		

to

word it.

Mr.  Flint:	I	can ask him to provide	a letter,	because	I still	deal with him on some		

Reunion business.										
Mr. Smith:  Did you see where Restoration was purchased by Miami Corp?		
Mr. Livingston:  Yes.						
Mr. Smith:  Restoration was an enormous project, that is	south	of 44 and east of I-95.  It		
										
is partially in Edgewater and New Smyrna.						
Mr.  Flint:	It's	surprising that Miami  Corp would buy more land when they already		
					
acquired 50,000 acres.								
Mr. Smith:	They got a good deal.  The original developer paid $120 million, paid Frank		
			
$20 million										
and Miami Corp. bought it for $16 million.  From a strategic standpoint, it makes		
sense for them.										
Mr. Flint:  They	hold a lot of land.						
									
Mr. Smith:	I was	surprised that they purchased it, but then when I think about it, for that		
						
price, they couldn't go wrong.						

NINTH ORDER OF BUSINESS	Supervisor's Request		
			
Mr. Flint:  Is			
there anything else that we need to discuss from the Board's perspective?		
not, we can adjourn the meeting.			

If

TENTH

ORDER

OF

BUSINESS

Adjournment

On MOTION by Mr. Lusby, seconded favor, the meeting was adjourned.

by

Mr.

Smith, with all in

6

September 24, 2018

Secretary/ Assistant Secretary

Gardens at Hammock Beach CDD

CJY ~ M__

Chairman / Vice Chairman

7