RECREATION DISTRICT REGULAR BOARD MEETING
June 24, 2022, at 9:00 a.m. in Card Room C 
Zoom Details: https://us02web.zoom.us/j/9687107160
Meeting ID: 968 710 7160 – Passcode: HgrdMeet1
MINUTES
BOARD MEMBERS	PRESENT	OTHERS	PRESENT	
Chair Howard Young		GM J.B. Belknap		
Vice-Chair Peter Overs		Controller Lynn Brew		
Treasurer Jayne Schwarz		District Counsel Tom Hart		
Secretary Mary Ann Polvinen		Executive Assistant Karon Bennett		
Assistant Sec/Treas William Kulkoski		Residents		

I.	CALL TO ORDER – -Chair Young

II.	PLEDGE OF ALLEGIANCE – Supervisor Polvinen

III.	ROLL CALL – Executive Assistant Karon Bennett took roll call (attendees are listed above).

IV.	APPROVAL OF MINUTES 
•	Supervisor Kulkoski made a motion to approve the minutes from the Regular Board Meeting on Regular Board Meeting on June 6, 2022. Supervisor Polvinen seconded the motion. The motion was approved unanimously.

V.	REVIEW OF THE BUDGET – GM J.B. Belknap and Controller Lynn Brew reviewed the preliminary budget. 
•	– First Option – 10% increase, approximately $203,539 subsidized from the long-term capital reserves. 
•	– Second Option with the 8.5% increase in which $248,467 would be subsidized by the Long-Term Capital Reserves.
•	- Capital Master List under CLIS, replacement of the multi-strand wiring in the back of the community (shown in 2024 & 2025). Proposed to re-wire and replace super decoders on 14 controllers in the front and back of the CLIS irrigation bond project, based on current preliminary project plans. This would reduce requirements over the next 20 years.
The CLIS re-wiring amounts were removed from the capital plan, to be covered by the Bond, to realize the savings. Discussion continued on the subject. Management has not had the opportunity to review the resulting changes Supervisor Schwarz did not support adopting the report presented until certain adjustments were made. However, this does not impact the assessment amount of $634 per quarter, but rather the amount to be subsidized by the long-term reserves.
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Chair Young mentioned a philosophy change to discuss regarding capital reserves and the use of bonds before going forward. This budget does not include the replacement of items that could be considered in the next bond in the regular working capital requirements of the 20-year capital plan. Supervisor Kulkoski noted that the bonds were reviewed in previous discussions during the Budget Workshops. The bonds are in 2 sets, the old debt which was called in and reissued at a much lower rate, and new money borrowed at that same time.  The first set of bonds will be paid off in 14 years. At that point, the annual assessment for bond payments goes down dramatically, as identified in the” Fishkind” financial advisory report. The Board considered whether they assess current residents sufficiently enough money that the Board in 14 years does not have to consider issuing new bonds, as the money is already in reserves. To do so results in numbers substantially greater than what residents are currently paying through their assessments The philosophy that the Board would like to adopt is that a Board, in approximately 14 years from now, will go back to the bond market and the residents living in Herons Glen will pay in the same way, sort of a pay-as-you-go rate. The Recreation District has the advantage that it can issue tax-free municipal bonds, that’s how they got the 2.6% interest in the first place. 

A large part is that this changes the amount needed for the budget and assessment on annual basis. Supervisor Overs pointed out that the District currently has at a $2M capital reserve. This amount does not include the $1.3M in working capital funds, as this funds capital needs. There is also $350K in an “uninsured” reserve fund, which is set by policy as the greater of $350,000 or the District’s insurance deductible. 

Further discussion took place on the significant 20% increase in health insurance. The available plans and costs offering takes place annually in August in order to become effective in October. This will be presented to the Finance Committee, who will recommend what’s in the best interest of the community. The hourly employees pay 15% and salaried employees pay 20% of their health insurance premiums. Employees l share in the increased costs.

VI.	DISTRICT COUNSEL’S REPORT - Counsel Thomas Hart presented the following resolutions to the Board:
•	Vice-Chair Overs moved to approve the Preliminary 2022-23 Budget and Annual Assessment, Supervisor Schwarz seconded the motion, and the Resolution was approved as follows: RESOLUTION 2022-12: A RESOLUTION OF THE HERONS GLEN RECREATION DISTRICT APPROVING A SPECIAL ASSESSMENT BUDGET REPORT RELATING TO SPECIAL ASSESSMENTS TO BE LEVIED IN THE DISTRICT TO OPERATE AND MAINTAIN THE RECREATIONAL FACILITIES; STATING THE INTENTION TO USE CHAPTER 170 OR CHAPTER 197, FLORIDA STATUTES AS METHODS OF COLLECTING SUCH ASSESSMENTS; CALLING FOR A PUBLIC HEARING TO BE HELD AT WHICH THE DISTRICT SHALL CONSIDER THE ADOPTION OF A NON AD VALOREM ASSESSMENT ROLL IN CONNECTION WITH SUCH ASSESSMENTS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
This includes a public hearing to be held on September 1, 2022, at 5 pm. Counsel Hart will publish. Notices will be sent to owners in the Recreation District. This now includes Mystic properties. 
VII.	COMMITTEE REPORTS & RECOMMENDATIONS 
•	Facilities & Amenities Committee- Supervisor Kulkoski mentioned that they have not had a meeting. He asked what tasks the Board wanted to work on specific to the Strategic Plan. Chair Young stated that this will be reviewed later with Fred Gignac and Jeff Buxton. 
•	Finance Committee - No meeting, No report.
•	Green Committee – Board Vice-Chair Overs - No meeting, No report. 
•	Long-Range Planning Committee - Fred Gignac mentioned that the Long Range Planning Committee recently submitted a report to the Board. He reiterated that the biggest deficiency the committee has is the lack of the ability to make site visits. It’s important to work with each department to develop a long-term program and will emphasize that in the Fall. Further, Mr. Gignac stated that we need to build an organization to support the efforts started by Jeff Buxton.
Strategic Planning Review and Community Survey Update – Jeff Buxton mentioned that the 6 key initiatives of the Strategic plan have been started. One is how to address the facilities master plan and the restaurant services development plan, those are long-term in nature and will require much effort. Another initiative is the plan to further rely on bond finance. Chair Young and the Long-range Planning Committee are developing a plan to address the wants and needs of the community. A draft survey has been developed for the annual survey of the residents to be issued in September with a report to the Board at the beginning of the year. This will get us long-term trending, demographic elements, utilization, preference, importance, and satisfaction of the services and amenities. This will also give us some feedback on the use of focus groups that includes residents. 
Chair Young shared his appreciation of subject matter experts such as Mr. Buxton who has helped us with the Strategic Plan and upcoming surveys. Volunteerism is so important to Herons Glen! 

•	Policies & Procedures Committee – Supervisor Schwarz updated the group and stated that the plan is to have the document for the Board’s review by the end of the calendar year.  
•	Problem-Solving Taskforce – Chair Young mentioned that the PSTF has been very beneficial to the Board. They’ve decided to add Craig Woolley to the committee in an advisory position. His skill set and experience will be a great help. Supervisor Kulkoski suggested that Craig Wooley be removed from the Facilities & Amenities Committee leaving one vacancy.

VIII.	FINANCIAL REPORT – Controller Lynn Brew reported on the month’s financial variances as follows:

•	Administration $2,279 favorable, YTD $ 36,184 favorable
•	Restaurant $2,856 unfavorable YTD $ 74, 030 unfavorable
•	Clubhouse $507 unfavorable, YTD $9,973 favorable
•	CLIS $638 unfavorable, YTD $5,017 favorable
•	Fitness $794 favorable, YTD $1,616 favorable
•	Golf Maintenance $16,676 unfavorable, YTD $14,831 unfavorable
•	Pro Shop $19,032 unfavorable, YTD $249,291 unfavorable
•	All Departments $ 36,638 unfavorable, YTD $285,362 unfavorable

IX.	GENERAL MANAGER’S REPORT– GM J.B. Belknap
•	The Board had a significant discussion and reviewed a presentation by GM Belknap and Jeff Buxton concerning golf course fees. The fees were presented, excluding sales tax, as follows:
o	Resident Single $3,300
o	Resident Household $5,280
o	Non-Resident Single $4,900
o	Non-Resident Couple $6,700
o	New Non-Resident memberships will be assessed a one-time Capital Contribution fee of $1,000
It was noted that to keep the dues low and cover expenditures, the District must bring in outside play. Counsel Hart will amend Resolution 2022-12 to adopt components agreed upon. 
Vice-Chair Overs made a motion to approve golf fees to adopt golf membership rates for 2022-2023 as presented. Supervisor Schwarz seconded the motion. The motion was approved unanimously.	
 
•	GM Belknap updated the Board on the bond projects. According to Stultz, demolition and site work will begin on the bocce/shuffleboard courts (Sports Court) on July 18th however the courts will close on Thursday, July 14th to allow the Facilities Maintenance staff to remove benches, scoreboards, etc. before demolition. Stultz would like to have all the site work completed by August 12th so Mor Sports, the court construction company can begin construction either August 15th or 22nd depending on their schedule. November 15th is the targeted completion date. GM Belknap will begin a series of emails with pictures and videos to keep residents up to date on the projects. 
•	Pool Deck: Awaiting a quote from Rubber Rock. It was noted that there are not many clubs in our area where the product has been installed that we could view. Tables, chairs, and loungers for the deck are being priced out, over $25k will go to Finance and Bid-Oversight for review.
•	The group discussed the LDO on multi-cart path improvements.
•	Clubhouse: Action Glass will be out to quote the replacement of storefront windows and doors. 

X.	OLD BUSINESS

•	CLIS System - The CLIS, our 30-year-old home watering system, in the “Historic District” will require more updating than originally anticipated. Underground wiring needs replacing as well as some control components. Getting the CLIS system functioning properly is not an option. The cost of getting CLIS functioning properly will far exceed the allocation in the Bond Project Plan.
MOTION: Vice-Chair Overs made a motion to allocate $1m to the CLIS portion of the Bond Project. Supervisor Polvinen seconded the motion. The motion was approved unanimously. 

•	Restaurant Renovation –Supervisor Kulkoski stated that the original $600,000 in the bond did not include furnishings or artwork, it included the cost of structural changes only. It also did not include taking walls out or adding acoustical ceilings. Supervisor Polvinen stated that the budget, with the inflationary factor, has brought us over budget like all the projects. She would like the Board to agree on the number to spend on the restaurant so that she, GM Belknap, and John Cowgill can meet with Stultz to reach a more acceptable number.

A decision also needs to be made on the separation of the bar. The acoustic ceiling is an expensive component as well as the furniture. After considerable discussion and comments from residents, the Board agreed that the all-in budget for the restaurant, including contingency, will be $1.4m. 

Resident Comments on the Restaurant:

Patty Cummings stated that it’s important to know what residents what. She mentioned that the bar is an easy way for many who are single and like to eat at the bar so that they can socialize. She pointed out that on special occasions everything is closed. Jim Burnett agreed with the closures. The Board stated that the hours of operation have been extended on Sunday. Beth Burnett stated that none of the servers want to go outside and if they do it is with a poor attitude. GM Belknap mentioned that this is an issue that a new Food & Beverage Director must work on. Neither the current nor proposed budgets include a server who directly works for the pool. The suggestion was made to include a question about a Kiosk in the survey. 

Tom Stephens agreed that the restaurant needs a lot of work done, including structural changes. He agreed that the Board has one chance to make things right. He suggested an open meeting in the ballroom. Chair Young responded by telling the group about the concern of the cost structure taking off much higher than before and the inflation concerns. However, doing it incorrectly creates more operational issues. 

Greg Trammell suggested that the Board pick the number that they are comfortable with and pick something that will look good for the next 14 years. 

Mary Koenig told the group that service and redesign will not take away all service issues. Training is very important. The flow will help with service. 

Susan Darcy noted the different opinions, and the need for a survey to get a consensus on what residents feel they need. She feels that the idea that construction will resolve the quality of the food and service issues is theoretical. The design does not mean that the staff will do better. She suggested hiring the F&B Director to allow them to work through the issues to get an idea of what the community wants. Mrs. Darcy cautioned everyone against thinking that a design or construction will solve all problems, it will not. An ongoing supervisor in management is needed to make sure the restaurant functions well. Kim Roerke agreed and suggested a meeting in the ballroom for residents, so everyone understands what is being spent and what it is going towards. Julie Krug reiterated what several residents have mentioned concerning service and the quality of food. 

Jeff Buxton commented on resident input, he suggests that the best way to do this is with a series of smaller focus groups rather than large meetings in the ballroom. Vice-Chair Overs explained that the Board needs to decide on the restaurant renovation by September 1st to have it start on time in April. If we miss that deadline, we will be lucky to complete it by Nov 1st, going over that will lead us to many issues. This is why the consideration was being made to put off the renovation for another year.

XI.	NEW BUSINESS – None was presented.

XII.	RESIDENT COMMENTS

•	Joyce Gillespie HOA Manager, in assisting the HOA’s Board and Finance Committee with budgeting, asked about the 20% CLIS irrigation increase for the HOA common areas that will be a direct passthrough to the residents. She asked, is the 20% increase for the CLIS irrigation, maintenance, and supplies for the common areas based on anticipated inflation only, or does it include enhancements to the CLIS services provided such as additional employees. Chair Young responded that yes, it is inclusive. It does include an additional employee; it impacts the location where there are valve locations and wiring systems.
•	A discussion took place on how the District advertises for events and uses marketing to bring in more revenue. Management noted the suggestions such as coupon books, radio ads, and social media. Beth Burnett suggested a flyer or signs directing golfers to the restaurant in the golf pro shop and on the golf carts. Mr. Stephens also mentioned enhancing food and beverage with more BBQs and a beverage cart.
•	Jim Burnett and Julie Krug asked about the cost of the steel storage. GM Belknap explained that the Stultz management firm is to provide us with an estimate for the bond validation process. Nothing is set in stone on the storage building, they need to come back with prices as a whole. Alternatively, we can directly purchase materials and not pay taxes.
•	Nik Rossi mentioned that we need to do a better job recruiting local employees, and GM Belknap agreed. He explained why more and more clubs are turning to the H2B program in this area. Julie Krug asked where are we at with assisting Delroy East with his Green Card and employment at Herons Glen? Chair Young said this is a work in progress. GM Belknap stated that Pabian Law, an H2B law firm, estimates the cost of S7k-8k and generally takes 2 years to obtain a green card. The question was how to keep Delroy working for the District Counsel Hart’s advice was that Pabian Law develops a contract; however, they have not responded. We could also engage with a local labor attorney to write up a contract. GM Belknap is working on this. Further discussion took place on hiring locally.
•	Mary Koenig, a Finance Committee member, said that she had spent most of her week in the budget meetings, and she thanked the Board for their hard work. 
XIII.	UPCOMING MEETINGS
•	Thursday, June 30, 2022 - Green Committee - 9:00 a.m. - CR-C/Zoom
•	Monday, July 11, 2022 - Board of Supervisors - 9:00 a.m. - CR-C/Zoom
•	Monday, July 25, 2022 - Board of Supervisors - 1:00 p.m. - CR-C/Zoom

XIV.	ADJOURNMENT took place at 12:15 p.m.