MINUTES OF MEETING PALM GLADES
COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Palm Glades Community Development District was held on Tuesday, September 14, 2021 at 6:30 p.m. at the Silver Palms by Lennar Clubhouse, 23770 SW 115th Avenue, Miami, Florida.

Present and constituting a quorum were:

Mauricio Pelaez Bryant Xavier George Monserrat

Chairman Assistant Secretary Assistant Secretary

Also present were:

Juliana Duque Luis Hernandez Andressa Philippi Scott Cochran George Graupera Monica Henning Andrew Sherman James Fernandez Juan Salas Teresa Saluja Carolina Herrera Steve Sanford Julie Vaela

District Manager
Governmental Management Services Governmental Management Services District Counsel
District Engineer (by phone) Clubhouse Director
KWPM
Delta Five Security Delta Five Security
Lennar Homes (by phone) Lennar Homes (by phone) Greenberg Traurig (by phone) Resident

Segment I:
FIRST ORDER OF BUSINESS	Roll Call and Pledge of Allegiance
Ms. Duque called the meeting to order, called the roll and the Pledge of Allegiance was recited by all who attended the meeting.

SECOND ORDER OF BUSINESS	Approval	of	Minutes	of	the
August 10, 2021 Meeting
Ms. Duque: The next item is the approval of the minutes of the August 10, 2021 meeting. This is the moment to present any additions, corrections, or deletions to the minutes. It's very important to tell the Board of Supervisors that I have received two comments from Scott, one is on page 6 towards the end of the page, under Mr. Cochran, it should say, "review" instead of "purview", and I'll make sure I make those changes. Also on page 23, at the end, the last sentence, it should say "dense" instead of "intense". If there are no other comments, changes, or deletions, to the minutes, a motion to approve them will take place.

On MOTION by Mr. Xavier seconded by Mr. Pelaez with all in favor, the Minutes of the August 10, 2021 Meeting with the indicated changes were approved.

THIRD ORDER OF BUSINESS	Ratification	of	Recreation
Program Agreement
Ms. Duque: The next item is ratification of recreation program agreement. This is with New Wave Aquatics. As the Board is aware, I like to bring those back so they are part of the record of today's meeting, so a motion to ratify the agreement that was already approved will take place.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, ratifying the Recreation Program Agreement was approved.

FOURTH ORDER OF BUSINESS	Consideration	of	Agreement
with Lennar Homes, LLC
Ms. Duque: The next item is consideration of agreement with Lennar Homes, LLC, and before I let Scott move on with this item, let me pass this out.
Mr. Cochran: Alright, as you all probably remember from the last meeting, you were considering items on the agenda related to the proposed bond issuance this year, and the Board expressed a few different areas of things that they wanted resolved with

Lennar before proceeding with that. So, subsequent to that meeting I was in discussion with Juliana, with Mauricio and with Lennar, and they basically came to an agreement in principle on ideas as a way to resolve this, and so I was asked to put together this agreement that expresses that, and so it's for the Board's consideration. I just want to go through essentially what it is so you all know the deal, and I'll go into this later but, in order to ultimately issue these bonds, in addition to the approvals today, there will have to be another public hearing at least 30 days out, it has to be noticed 30 days, and that's when you would adopt a resolution imposing the Special Assessments that would fund the security for the bonds. So, nothing that you do today either way will be the final answer on the bonds, so I just wanted to make that clean from the beginning. What this agreement provides, and it's between the District and Lennar, and essentially what it means, Lennar as the developer, they will make a contribution of $27,000 to the District, which the District can ultimately spend at the District's discretion, however you all see fit, and that would be delivered to the District manager, Juliana, to hold in escrow within 5 days of the execution of this agreement, and then once the Board has taken the steps to approve what it needs to authorize the issuance of the bonds, that's when the District manger would give you those funds. The second item is the termination of the club use agreement, so my understanding is that Lennar has already removed some of their equipment, or some of Flordade's equipment, which was the entity that actually is in the clubhouse use agreement with the District. We've talked about this before and it was brought up at the last meeting, this is a document that's attached to this agreement as Exhibit B, it's a club use termination agreement, and it essentially just terminates the agreement between the District and Flordade, which was the Special Purpose Entity that Lennar set up when the clubhouse got acquired, and it basically provides that agreement will be terminated so there won't be a rental of the offices in the clubhouse anymore, so that agreement will be terminated. The other item related to that is that Lennar and/or Flordade will basically get all their stuff out of here I think within 10 calendar days of execution of the agreement, so anything that's remaining in any of the spaces that's Lennar's or Flordade's, will be removed within 10 days. Then finally, the final piece, that Lennar is any funds that are incurred by the District's engineer, or by District counsel relating to the final conveyances for the property that was annexed into

the District in 2019, there are still some remaining conveyances that need to be transferred to the District, and possibly some ancillary documents, and this just provides that any of those expenses will be borne by Lennar, they'll pay the professionals. So, those are Lennar's obligations under the agreement, the District's obligations under the agreement is basically to go forward with pproving the resolutions, the agreements, the documents, in order to issue these bonds, and the bonds will be described more of what we're talking about, that area which is presently 7 units within a portion, within the original boundaries of the District, but it's being switched to 36 units, so the bonds will pay for infrastructure just in that portion will be assessed just to the properties in that portion. Other than that, the default provisions are basically, and this is just, both sides wanted assurances, the District wanted assurances that Lennar will do these things, Lennar wanted assurances that the District would move forward with these things. The default is basically just, if either side doesn't do what they're supposed to do, the other side has to provide them notice and give them 10 days to cure the default, but ultimately, for example, if Lennar complies with everything, and the District refuses or does not do something within its control, within its power to do, to facilitate the issuance of the bonds, then the District would be responsible to reimburse Lennar for some of their expenses, their attorney's fees and things in this bond process. Likewise, if the District does what they are agreeing to do, and Lennar doesn't, then Lennar will reimburse the District for attorney's fees related to this whole process of this agreement. Beyond that, it's just basically typical contract provisions that are in pretty much all of our agreements, it says who the notices go to, so that's basically the agreement.   So, it's up to the Board but, this was my understanding and attempt to reflect what the parties were discussing between Mauricio, Juliana, and Lennar, and I know Teri from Lennar is on the phone.
Ms. Duque: Yes, for the record I would like to mention that Teresa Baluja and
Carolina Herrera from Lennar have also joined us today.
Mr. Pelaez: Can you guys hear us ok? Ms. Baluja: I hear very lightly.
Mr. Pelaez: Do you want to bring it closer?

Mr. Cochran: So, it's up to the Board, you have people here from Lennar if you want to discuss anything about this agreement, or if you want to make any modifications or whatever, we can do that, but this, like I said, this is my attempt to try to reflect what the parties wanted to do.
Mr. Xavier: Thank you.
Mr. Pelaez: Yes, I really appreciate this time. I think it's great, and from the last meeting I have to admit I left a little bit frustrated; I think with respect, I think this should have been solved by the last meeting instead of now going on to the third meeting on this. I'm happy it's finally done, I felt that I had to ask Juliana to get this conference call with Lennar, and everybody was kind of confused on what the Board wanted, but finally after that phone call, and I think Carolina who is on the call, this is also why I bring it up, I think that call, we had finally come to an understanding of what the Board wanted, and then you guys all made this happen, and it works for both parties because literally, if it wasn't for this, it wasn't going to happen, so that call made the difference, so I appreciate it. I'm sorry it took so long, I'm sorry for all the confusion, it doesn't matter where it came from, and I appreciate Juliana the efforts backing me up on getting Lennar on the phone and getting me the information that we needed to make this happen also, so I'm good with it.
Ms. Herrera: Thank you very much, and thank you for prompting that call and Juliana for the help, and to the attorney, I think that we're able to come to a place where everybody feels happy with the outcome, so we really appreciate it, thank you.
Mr. Pelaez: Thank you. Mr. Xavier: Thank you.
Mr. Cochran: Alright, so if the Board is good with it, then I would suggest a motion to approve the agreement and authorize execution.

On MOTION by Mr. Xavier seconded by Mr. Pelaez with all in favor, accepting the Agreement with Lennar Homes, LLC and authorizing the proper District officials to execute the document was approved.

FIFTH ORDER OF BUSINESS	Discussion of Financing Matters
related to Series 2021 Bonds
Consideration of Engagement Letter with FMS Bonds, Inc.
Ms. Duque: Let's move forward then to the discussion of financing matters related to Series 2021 Bonds. Luis?
Ms. Herrera: Juliana, we're going to drop off, but I wanted to just let you know that we're just a call away for anything else that comes up, we're here to help the Board and the community, so thank you so much and have a good meeting.
Ms. Duque: Thank you so much Carolina and Teresa, I really appreciate it.
Mr. Hernandez: Alright, good evening everybody, I'm Luis Hernandez and the part that I'm going to be presenting has to do with the potential issuance of the Bond Series 2021. So, the first part that I want for the Board to have clear, as Scott was indicating, this is the first step, it does not mean that the Board has been obligated to issue the bonds, it's just to start the process. When we get to the portion that will be final, I will be making the entire Board aware of it, as of yet all you're going to be considering is number one, some agreements with some professionals that are being made contingent to the issuance of the bonds. In other words, if the bonds were not to be issued, the District doesn't have any obligation but, without those professionals the District will not be able to take the steps towards the issuance of those bonds. With that being said, the first item that you have in section 5 is a letter which is an engagement letter from FMSbonds. That's the same firm the community has been using since day 1 to issue bonds, and at this point what we're trying to do through them is being able to issue these bonds, they are the underwriters, and they will be the ones who will commercially find who is the right bondholder for this issuance. If we indicate all the parameters from the obligation that the District will be acquiring if the bonds were to be issued, it's also important for the Board and for the community to know that the cost for those professionals will be paid out of the bond proceeds. In other words, the District is not going to be paying anything from the existing parts, everything will come as part of the bonds that the District is going to be issuing. With that being said, unless anyone has any questions in regard to the underwriter's agreement, I will be asking for a motion to accept the engagement letter with FMSbonds and by accepting it, authorizing the appropriate officials to execute it.

Mr. Pelaez: Are these good, have you looked at them, is there anything that we need to know?
Mr. Cochran: They're the standard format that we are doing for the bonds, it doesn't really change a whole lot from agreement to agreement, the main fee is 2% of I think the bond issuance which is pretty standard in the industry.
Mr. Pelaez: Ok as the underwriting fee?
Mr. Cochran: Correct, yes, and we've dealt with this District and other Districts that deal with FMSbonds, they're one of the main underwriters that do these for Special Districts, one of the few actually.
Mr. Pelaez: Ok, any issues? Mr. Xavier: No.

On MOTION by Mr. Xavier seconded by Mr. Pelaez with all in favor, accepting the engagement letter with FMSbonds, Inc. and authorizing the proper District officials to execute the document was approved.

Consideration of Engagement Letter with Greenberg Traurig
Mr. Hernandez: As for the engineer, George, are you on the conference call? Mr. Graupera: Yes, I'm here.
Mr. Hernandez: Ok, give me just one second, I'm missing Steve, hold on one second, we're on item B. The next one that we need to present is another engagement letter. Greenberg Traurig who is the bond counsel, and what they will be doing is basically preparing the bond documents. The main point that the District needs to be doing at the time we're going to be issuing the bonds is creating a trust indenture. What that trust indenture is going to be doing is letting not only the bondholders and bond owners know what they're getting the funds into, but also gives an indication of how the use of those funds are going to be made. So, from the time the bonds are issued, it will be fully controlled by the trustee, and the trustee can only use the funds and move the funds as per what the trust indenture does, and that's the main function of the bond counsel. With that being said, the recommendation or request from staff is to authorize the agreement

with Greenberg Traurig and by doing so, authorizing the execution of the engagement letter, unless anyone has any other questions.
Mr. Cochran: And Steve might be on the call too, I don't know if he is. Mr. Hernandez: He will be presenting a report at the end.
Mr. Cochran:  Ok, got it.
Mr. Sanford: Yes, and Luis this is Steve Sanford, the only thing I'd like to add, I think you said this, is that my fee is contingent, the District doesn't pay my fee, it really comes out of the bond proceeds.
Mr. Hernandez: Thank you for that clarification. Mr. Pelaez: Thank you.
Mr. Xavier: Thank you.

On MOTION by Mr. Xavier seconded by Mr. Pelaez with all in favor, accepting the engagement letter with Greenberg Traurig and authorizing the proper District officials to execute the document was approved.

Consideration of Supplemental Engineers Report
Mr. Hernandez: So, the next document that you have is the District engineer has prepared a supplement engineers report, and George, if you would just please provide us with a quick explanation of the supplemental engineer's report, I would appreciate it.
Mr. Graupera: Sure. Good evening, everyone. So, in your agenda package you have the supplemental engineers report dated July 23, 2021 for the Palm Glades COD. The purpose of the report is to present the nature, and costs and benefits of the proposed improvements needed to serve the residents and development which is located within the boundaries of the COD. These improvements are located on 6.90 acres of land within the current District boundary and will be integrated into the overall system of improvements of the District. The land for the Project is comprised of seven undeveloped single-family lots which are currently being re-platted under the Silver Palms West Tentative Plat which is attached as an exhibit of the report. These improvements will serve a residential development comprising 36 single family homes. These improvements are currently under construction, will be completed by Lennar Homes, LLC, the developer of the Project and

will be acquired by the COD with proceeds of debt issued by the COD. The public infrastructure improvements to be partially financed by the District can include earthwork, stormwater management systems, water main, roadway construction and sanitary sewer. The public infrastructure required for complete project development but not funded by the District, will be constructed and funded by the developer. The estimated total cost of project improvements to be included in the Palm Glades COD is $1,203,940. A summary breakdown of those costs by category is in the report. The costs of the proposed project will be allocated to residential units within the area in the form of special assessments in accordance with the approved assessment methodology, notwithstanding the cost estimates set forth in the report is understood that the District will pay the less of the actual costs of the public infrastructure comprising the project for fair market value. So, if you have any questions about the report, please let me know, otherwise, I believe a motion to accept the report would be in order.
Mr. Hernandez: Hearing no questions, the suggestion would be then to have a motion accepting the supplemental engineers report dated July 23, 2021.

On MOTION by Mr. Xavier seconded by Mr. Pelaez with all in favor, accepting the Supplemental Engineers Report dated July 23, 2021 was approved.

Consideration of Master Assessment Methodology
Mr. Hernandez: Now the next one is for me to present. The methodology report is an easy report, all we're doing is once again, the project in total, the area that we're describing is 36 units, out of those 36 units, 7 of them already have debt. They already have improvements being made, those have been set aside, nothing is happening with those. There are 29 that are getting public improvements, and what the engineers report has made is quantify what would be the cost to provide the public improvements necessary for those 29 units to exist, the entire replat, everything that needs to be moved so that it can be built up. What the methodology report does is, based on the number of units, allocate the debt and number one, based on the costs that the engineer is giving us, what would be the allocation of the actual cost, and what would be the cost of the estimated bond the District needs to issue if the District were to pay in full everything that

is necessary. Any portions that are not financed through the issuance of the bonds, the developer will be paying for. So, what the engineers report is describing and presenting to the community is, what are all those necessary public improvements and what the bondproceeds will be defining at the end is what portion will be publicly financed, and any difference will be paid by the developer. With that being said, the easiest way for me to quickly describe the report is by going through the tables. If you go to table 1, what that is basically doing is letting people know that out of the 36 residential units, there are different 29 and 7, that's the only part that's describing. The next part that you have is table 2, and what that does is summarize what the engineer has said, which is basically the $1.2 million dollars roughly is what is being needed to improve in order to put all the public improvements that are necessary for this project. What table 3 does is based on that cost, based on what is needed, what would be the amount of bonds the District needs to issue, so that now we have a number to go out to the market. It's estimated that if everything were to be financed, approximately $1,320,000 will have to be issued, based on some assumptions. The first assumption that we're making is that the interest rate is going to be at 5%, the second assumption that is being taken is that the amortization is going down over 30 years, so the bonds will be paid off in 30 years, and it's also assuming that the District will need to have capitalized interest for 1 year. Typically, what we do when we're making this report is to face what will be the worse case scenario. The reason we do it that way is because by Statute, the next step if the Board moves forward with everything that we're doing, we need to send a letter to the current property owner, or homeowner if that has changed, the ownership, letting them know of the intent of what the District is doing, and letting them know what it means money-wise, how much debt is being allocated, how much needs to be paid annually, and how long it will take them to pay that, so that is based on table 3. We move to table 4, and what that table is simply doing is taking the costs of the public improvements so we can tell anyone who is within that parcel how much the public improvements are costing per unit. Then table 5, what it does is allocate exclusively to the 29 units, now the 7 units are being left out of the question because all the improvements have already been financed. If there is anything pending to be done within those 7 units, the developer is the one who is fully responsible for those costs. The interesting part of table 5 is that it gives the allocation per unit, and more importantly

describes how much will have to be paid annually if the full amount of the bonds were to be issued. Table 6, what it does, just presents how the parcel currently is, as of yet Miami­ Dade County showed it as only being 7 folios, each one of them a little bit shorter than an acre, but in total, it's approximately 6.9 acres is what you have. What the table indicates is how the debt will be allocated prior to the parcel being fully replatted. With that being said, does anyone from the Board have any questions?
Mr. Pelaez: What's the name of this area that we're talking about, can you remind me, I can't remember?
Mr. Hernandez:  Certainly, it's where you have the 7 acres and for me to show it. Mr. Pelaez: Ok, so Alena is this one, and we're going to call this one North, right? Mr. Hernandez: Yes, it will be in the north corner of the District, all the way to the

west.

lot.

Mr. Pelaez: Ok.
Mr. Hernandez:	Here you have a big park, and then this used to be some empty

Mr. Pelaez: Correct.
Mr. Hernandez: Now, if you go today, the 36 units are already up, so it's not that it's

going to happen, it has happened, they are just finalizing the portions of the replat and so on.
Mr. Pelaez: Ok.
Mr. Hernandez: Are there any other questions? Mr. Pelaez: No.
Mr. Hernandez: With that being said then, the next step that I need for the Board to consider would be a motion accepting the August 10th master assessment methodology report.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with  all  in  favor,	accepting	the Master Assessment

Methodology approved.

Report

dated	August	10,	2021	was

Consideration of Resolution #2021-10 Declaring Special Assessments
Mr. Hernandez:   The next step that we need to do is, and there are going to be three resolutions to consider, the first one is resolution #2021-10 and it is being described as declaring Special Assessments. As I was indicating before, one of the steps the District is going to be doing is, with this resolution, what the Board has accepted that being the engineers report and the methodology report, constitutes and makes part officially by the adoption of resolution #2021-10. It's called declaring Special Assessments, that's the common name we present it as, and you do have some blanks within the copies that you have been presented, but it's going to be filled in with the dates and numbers that were included in the engineers report and the master methodology report, and the numbers that are described once again will be comprised out of the engineers report is $1.2 million dollars, roughly, and the specific number will be included, and the estimated amount of the bonds will be specifically included as the Board has approved. Unless Scott has anything else to add to this document?
Mr. Cochran: Not really, the bonds we're talking about are Special Assessment bonds, so when the bonds get issued, the special assessments on those properties are what are used to repay the debt, it's just like you have that for the purchase of the clubhouse and other District infrastructure, it would be that way for that. So, this is the initial step that you're declaring the intent to do that, but as I mentioned earlier, the next resolution, we'll have to set a public hearing where you'll consider imposition of the assessments, so this is just kind of the preliminary step that is necessary for that next step.
Mr. Pelaez: Thank you.
Mr. Hernandez: Unless anyone has any questions, I will ask for a motion to adopt resolution #2021-10.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, Resolution #2021-10 declaring Special Assessments was approved.

Consideration of Resolution #2021-11 Calling for a Public Hearing to Impose Special Assessments
Mr. Hernandez: The next one that you have is resolution #2021-11 and that's the one that is calling for a public hearing. What the District is being requested to do, now that you have an adopted engineer's report and adopted methodology report, to send a letter to the property owners of each one of those units that are going to be affected with this issuance.   By Statute, we need to give at least 30 days for the process to take place, so the first part that is my understanding has already been discussed with the Supervisors is that the meeting that you have in October will not allow us to meet the 30-day requirement, so the request is that instead of having the meeting on October 12th, that would be the regular time for your meeting to take place, that you move it to October 19th. So, with that being said, this resolution is going to read that the public hearing will take place on October 19, 2021 and it will be the same time as you typically have your meetings at 6:30
p.m. and it will be at the same location that being the Silver Palms Clubhouse located at 23770 SW 115th Avenue, Miami, Florida. With that being said, unless anyone has any other questions, I will ask for a motion to adopt resolution #2021-11 that is setting the public hearing for October 19, 2021.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, Resolution #2021-11 calling for a Public Hearing to Impose Special Assessments on October 19, 2021 at 6:30 p.m. at 23770 SW 115th Avenue, Miami, Florida was approved.

Consideration of Resolution #2021-12 Authorizing Resolution
Mr. He.rnandez: The next resolution that you will see is resolution #2021-12, it's the authorizing resolution. It has been prepared by District bond counsel. Steve, if you would please allow us to understand your document, I would greatly appreciate it.
Mr. Sanford: Sure, no problem. This is Steve Sanford from Greenberg Traurig, serving as the District's bond counsel. This resolution, even though on the agenda it's called an authorizing resolution, it actually does two things, it's authorizing a principal amount of bonds in the amount of not to exceed $625,000, but it's also what we call a delegation resolution, and in this resolution we set forth certain parameters, and at the

time the bonds are being marketed, if we fall within the parameters set by the whole Board, then the chairman or the vice chairman is authorized to sign a bond purchase contract that we would need to call a special meeting. So, let me quickly go through what those parameters are, we can't issue more than $625,000 in Special Assessment bonds, and you may wonder, as George described the cost of the project of being over a million dollars, and the difference between what we're going to finance with bonds, and the actual cost of the project will be an obligation of Lennar, pursuant to a complete agreement which they will have to execute prior to the issuance of the bonds. We also set forth what the maximum bond arbitrage yield would be at 4.5%, and we also set forth the compensation to the underwriter which is paid by the bonds at a discount, and then turned around and sell it for par, and the difference between the discount and the par is the compensation to the underwriter.   So, no monies out of the general fund of the District would ever be used to pay any of these costs. In addition to those parameters, there's a couple of documents that we're asking the Board to approve in substantially final form, and I'll quickly go through what they are. The first is, as I mentioned earlier, a bond purchase contract and that's a contract between the District, which would be signed by the chairman or vice chairman, and FMSbonds as your underwriter, and that sets forth all of the conditions to have a successful closing. Certain opinions are required, certain certifications need to be made that would get executed after the bonds are actually sold, and then a date would be set for the closing which is approximately 10 to 15 days after that bond purchase contract is signed. The next exhibit B is the preliminary offering memorandum, some people might call it the prospectus, it's call preliminary because at this point in time we don't know what the interest rate will be on the bonds, and it's used to solicit purchases of the bonds. Once there are investors, this preliminary offering memorandum is finalized and would have all the final terms of the bonds, the interest rate, and the redemption provisions. The next exhibit is what we call the continuing disclosure agreement, and that's between the District, GMS as your dissemination agent and Lennar and this agreement is required under SEC rules and requires that there be annual updates and information about the project and the bonds and the purpose of that is to create a level playing field, so if somebody wanted to buy these bonds on the secondary market, that limited offering memorandum that I just mentioned might have stale information about the development or

the project or the bonds, so this mechanism is to keep everybody on the same playing field as far as relevant information to make an informed investment decision. Then lastly, is a form of the fourth supplemental trust indenture, the District has already issued bonds and had 1 to 3 supplemental indentures but every series of bonds is a separate supplemental indenture. This document is between the District and the trustee and it stays in place for the life of the bonds, and it has all of the provisions regarding interest rates, indenture provisions, and rights and remedies of the bondholder. Again, the bonds are only secured by the 29 units that are going to be assessed, no other property within the District is being assessed for these bonds. So, unless anybody has any questions, it would be recommendation to move to adopt resolution #2021-12.
Mr. Xavier: Questions? Mr. Pelaez: No.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, Resolution #2021-12 the Authorizing Resolution was approved.

Consideration of Preliminary Supplemental Assessment Methodology
Mr. Hernandez:   So lastly, and not to make things a little bit harder, what we're trying to, as you can see, move as fast as we can, one of the items that is changing a lot is the interest rate, and it's moving in the right direction so everybody is trying to go ahead and close as soon as they can. The last document that I need to present today is called the preliminary supplemental assessment methodology report. A master tells you the overall of how the picture was given, this one tells you the specifics as to what is the intent to move forward with the issuance. Once again, the easiest way for me to explain is through the tables, table 1 we have already discussed it, table 2 has no changes whatsoever, the obligation continues to be the same. In table 3 we see a different case, instead of now speaking of $1.2 millions dollars, the amount of bonds the District is considering as per this supplemental is $566,000 of issuance. The interest rate is being calculated which is going to be an average of 3.5%, the amortization is going to be for 30 years, and the time that we're making the calculation, it's being estimated the capitalized interest that is going to be needed is only 6 months. This supplemental report indicates

that as we move forward and the market is looked at, it will be revised based on those conditions, and those are the parameters that are being used for the estimates. Now, the affect that it will see, table 4 is the same based on the prices.   In table 5 now presents what will be the annual obligation the homeowner will have, meaning, that it's roughly
$19,500 in total debt that is going to be allocated to each one of those 29 units, and the annual obligation per unit is going to be $1,061 approximately. Once again, this is not set in stone, it still needs to be as the market is tested.   With that being said, does anyone from the Board have any questions?
Mr. Pelaez: No.
Mr. Hernandez: Hearing none, a motion accepting the August 10, 2021 preliminary supplemental assessment methodology will be in order.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, accepting the Preliminary Supplemental Assessment Methodology report dated August 10, 2021 was approved.

Mr. Hernandez: So, unless anyone has any other questions, thank you very much. Mr. Xavier: Thank you very much.
Mr. Hernandez: Don't forget I'm just a phone call away. Mr. Pelaez: Thank you so much.
Ms. Duque: Thank you so much to all our professionals who joined us today over the teleconference as well.
Mr. Hernandez: And I will see you guys on the 19th. Mr. Xavier: Great job, thank you.
Ms. Duque: So, let's mover forward to our next item which is, actually we have it in our workshop section, but we're actually going to move it before the workshop section because we have Juan Salas and James Fernandez from Delta Five with us today. So, I will let Delta Five present this item to the Board of Supervisors so that they know what the concern is, or let's say the issues that we're having right now.
Mr. Fernandez: Good evening, everybody, I'm James Fernandez with Delta Five Security. So, as discussed in the past, the industry is experiencing a manpower shortage,

it's something that we've been kind of attacking in different ways. At the end of the day, it comes down to dollars and cents, the guards want to make more money, there's other jobs that are offering more money out there so a lot of them are just leaving, outside of the industry, it's not just like they're jumping to another security company, they're going to Amazon, they're going to Walmart, they're going to Target, so that's created a log of instability industry-wide, and of course it's affected us as well. So, we've done a lot of things internally, one is trying to renegotiate rates to our clients, and Silver Palms is one of those clients, so we're trying to get an increase to keep the guards. What we've done in the interim is, we've raised the rates so all the guards here are making now a minimum of
$14 per hour, there's a couple that are making a little bit more as site supervisors or shift supervisors, so we're incurring that loss right now, I believe it's about $5,000 a month, and Juan is the number guy, so we're incurring that loss of about $5,000 a month. We had some operational issues in the past, we've had some guards that have abandoned their posts, we've had every supervisor who had not reported the shortages, so we're kind of revamping how we're doing our checks and balances to avoid that. One of the things Juan and I are looking at, we started today and we'll probably wrap that up tomorrow is we're going back about 2 to 3 months and vetting all the invoices with timesheets and stuff like that, so if there are any discrepancies, which we're pretty certain there's going to be some, we will be extending a credit or discuss with the District how they want to handle that and move forward. Are there any questions you guys have of us?
Mr. Xavier: Yes, I have one question that comes to mind, when you experience that shortage, or when a guard abandons post, how are we being notified of that? Are we being notified of it today?
Mr. Fernandez: Yes, right now you're being notified, there's been situations in the past where you have not been notified, and you weren't notified because we weren't aware of it as well. So, there are some other checks and balances that we put into place now to avoid that from happening again but, yes, it's very embarrassing that it happened because it was something that never happened to us before but, it did happen here.
Mr. Xavier: So, what's the procedure in case something like that happens?
Mr. Fernandez: So, the way it's supposed go, the guards are relieving another guard, so if the guard that was supposed to be relieved sees that their relief hasn't showed

up, they're supposed to pick up the phone and call their supervisor. They have 3 supervisors they can reach out to, the site supervisor, the field supervisor who's on from 4:00 p.m. to 4:00 a.m. and the account manager who's always available. If none of those 3, then they go up the chain, they can call myself or Juan, and we'll deal with it. So, that's the first step. The second step is the F5 system, they're supposed to clock in and out as of now, this particular area has some deficiencies with the signal, there's certain areas that are dead spots. Juan's been working on that with both SLS and Verizon, it's been an ongoing work in progress, it's gotten a little bit better from what I understand, but there's
still some areas. So, I think what's happened is, some of the supervisors got complacent knowing that there were signal issues, and weren't really paying attention to an alert, a guard didn't sign off. So, you'll see on some of the reports it looks like a guard worked 2
days straight, it's not that he worked 2 days straight, he just never clocked out, and then never clocked in the day before, so it just kept on running the clock. So, another thing we've done to curtail that, is we've hired now a person strictly to monitor the SLS system, so they're doing weekly audits of the reports, the clock ins, the clock outs, and the activity that shows on there, so another one of our checks and balances that we had to implement.
Mr. Xavier: Thank you.
Mr. Salas: And to add on to what James is saying, one of the reasons why this happened a few months ago is because of the industry issues that we have right now with manpower issues, we moved a lot of our resources that we were using for SLS check in and all that stuff to recruiting and interviewing, and hiring and all of that, so we were a little short handed on that, and then things fell through the cracks, but like he said, we hired someone else now that is doing it part time coming to the office, and going through all the reports, and we're grateful to start on Silver Palms.
Mr. Pelaez: Got it, and for the level of service that we're paying for, we're getting those man hours and those security guards, and that's what you're saying will be part of the audit?
Mr. Fernandez: Correct. So, right now we've instructed the account manager to send a progress report, if there's a last-minute resignation like we had one last week, as a matter of fact it was yesterday, we had a resignation, she was able to get it covered with

another guard through overtime, but stuff like that she's been instructed, she has to notify you guys immediately. So, Monica, Juliana, Mauricio, and whoever is on the email as well.
Mr. Pelaez: Ok, do we have 4 guards out there right now working? Mr. Fernandez: Yes.
Mr. Salas: Yes.
Ms. Duque: So, just to add some other measures when we found this out, just for the Board to know, we've been working on this for the past month, Mauricio, Monica and myself together with Delta Five, one of the other items that we requested Delta Five, the guards were parked before in the guest areas at SW 113th, we requested them to be parked at the clubhouse all the time, and Monica made sure she provided the parking spaces that are not used on a daily use by residents or the staff, and we also created check in and out logged system at the clubhouse, so they're trying to do that here at the clubhouse as well.
Mr. Fernandez: So, you have another layer for the checks and balances that we discussed.
Mr. Pelaez: Understood, thank you.
Mr. Salas: And just to add on to that, we've apologized to Juliana, Mauricio and Monica, but I want to take this chance to apologize to you guys too, but once again, I want you guys to know that this wasn't done on purpose, it wasn't done maliciously, when we found out from Juliana was the first time we heard about it, and we jumped on it right away, so our apologies, but we're trying to take care of it now.
Mr. Xavier: Thank you, I appreciate it.
Mr. Pelaez: Thank you guys for coming I appreciate it.
Ms. Duque: Thank you Juan and James.   So, the only item that is pending right now with Delta Five is they are going back as James mentioned in terms of the invoices so that we can do a check and balance to see the amount of money that is being paid compared to perhaps what's the credit the District will have to receive, so we're waiting for them to come back to us and we'll keep you posted. So, nothing else to discuss, unless there are any other questions from the Board or any other direction.
Mr. Pelaez: I think we're good. Mr. Xavier: We're all set with it.

Ms. Duque: Perfect. Let's move forward then to our workshop section.
Segment II: Workshop Section:
(The Board had a workshop meeting at this time to discuss the following items. No actions were taken)

Discussion of Approval to Remove Old Rug and Install Tile
Discussion of Clubhouse Janitorial Agreement
Discussion of Pressure Cleaning Project
Delta Five Security Company Discussion

Segment Ill:
SIXTH ORDER OF BUSINESS

Authorization or Approvals Requiring Board Action for Items Discussed During Workshop

Ms. Duque:	So, let's move forward to segment Ill, which is authorization or
approvals requiring Board actions for the items discussed during the workshop section. So, the first item I will need a motion from the Board to approve a proposal from Chick Chandler to pressure wash the entire District including Silver Palms HOA in the amount of $27,500. The District will be responsible for 70% of that amount and the HOA will be responsible for 30% of that amount and authorize District staff to work on the agreement.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, accepting the proposal from Chick Chandler in the amount of $27,500 to pressure wash the entire District and, also authorizing staff to work on the agreement as discussed during the workshop section was approved.

Ms. Duque: The next item is, we also received a proposal from Chandler Construction to install new floor tile on one of our offices in the amount of $2,750. We also have landscape light installation in an amount not to exceed $6,000, and we also have different miscellaneous proposals presented by Chandler for railing on pool deck, also repairing the lobby lights, also convert all lighted area from the old ballast to LED lights, the outside electrical outlet for the pumps, the installation of new faucets,

batteries and backup for emergency lights and also the party kitchen repairs, so that will be a total amount of $19,750 plus $2,750, and give me one second and I will give you the total, so that is $22,500. So, it will be a not to exceed amount once again, remember that we're using the higher numbers provided in those proposals. If the Board feels that this is something that we need to move forward with, then I'll need a motion to approve those items in the amount of $22,500 and authorize District staff to work on the small project agreement.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, accepting all proposals from Chandler Contractors for improvements as stated not to exceed
$22,500 and discussed in the workshop section and, also authorizing staff to work on the Small Project Agreement as stated on the record was approved.

Ms. Duque: The next item that we have is also a proposal from Chandler Construction to repair the columns along SW 112th Avenue in the amount of $4,155 and once again authorize District staff to draft the agreement.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, accepting the proposal from Chandler Contractors for repairs to the columns on SW 112th Avenue not to exceed $4,155 and, also authorizing staff to work on the agreement as discussed during the workshop section was approved.

Ms. Duque: The next item that we have is, we have received a proposal from our janitorial vendor to increase our existing contract. The pricing provided by them is
$56,600, we're currently paying $46,800 per year. The direction from the Board is to go up to $52,000 which is what we currently have in our budget and authorize District staff to work on the agreement. I will need a motion from the Board to approve as stated.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, accepting the janitorial contract increase with All Professional Cleaning up to a maximum of
$52,000 and authorizing staff to work on the agreement as stated on the record and discussed in the workshop section was approved.

Ms. Duque: I would like to make the Board aware that if the vendor does not accept this counteroffer, I will bring this item for discussion for our next meeting and no increases or changes will take place. The next item is, we also talked about our discussion of clubhouse rules and tasks, so we presented to the Board a couple of items that we have worked with Andrew from KW Property Management and we're trying to differentiate the different activities from the activity clubhouse director and clubhouse manager, and more information will be provided to the Board at our next meeting. Also, Monica provided some updates to the Board of Supervisors, and one of them is she had a walk through with the fire code vendor as discussed in our prior meeting. She's also working on updates with the Zumba agreement. I also need to have two motions from the Board, one is to approve Pumpkin Carving for October 15th in the amount of $575.25.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, accepting the proposal from Pumpkin Carving in the amount of $575.25 for the October 15th event as discussed in the workshop section was approved.

Ms. Duque:	And we also have Halloween Bash in the amount of $4,000 including the entertainment.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, accepting the proposal for the Halloween Bash in the amount of $4,000.00 for the October 29th event as discussed in the workshop section was approved.

Ms. Duque: During the workshop section we also discussed again that suspension that was presented and discussed during our last meeting. This specific member received once again proper notice of suspension, that suspension was sent not only to this member but also to his mother, which is the owner of the property. He has been given the opportunity to be heard by the Board of Supervisors on two different occasions, this item once again was discussed by the Board of Supervisors and I will need a motion from the Board as discussed to suspend this particular member indefinitely for the exclusive use of the facilities in general.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, authorizing staff to suspend a particular member of their use of the facility indefinitely as discussed in the workshop section was approved.

Ms. Duque: And I don't have anything else to discuss under workshop section.

SEVENTH ORDER OF BUSINESS	Staff Reports
Ms. Duque: So, let's move forward to staff reports, attorney?

Attorney
Mr. Cochran: I think we've covered just about everything I've had over the last month, it's been busy, but I don't think I have anything else to report beyond what we already discussed, unless you guys have any questions.
Ms. Duque: No Scott, just as was mentioned during the workshop section, thank you so much for your hard work through this bond 2021 issuance process.   Nothing else, I don't know if the Board has any questions or anything to discuss?
Mr. Pelaez: No.

Engineer
Ms. Duque: Nothing else to report under the engineer.

Club - Monthly Report

Ms. Duque: Let's go to clubhouse monthly report, Monica.
Ms. Henning: Ok. So, for our August report, as you can see, we're continuing to hammer away at our work orders. We're knocking out projects pretty quickly and Jose has really been magically turning this place around, so we're again still very happy to have him. As far as for club updates and project status, we are still working towards the storage shed out in the outdoor storage space. I am tackling that project with Chandler Contractors, and then also we are still moving forward as far as getting the replacement and addition of some of the equipment items that were already approved. We're waiting for those items to be shipped in from the vendors.
Mr. Pelaez: Is the floor almost here do we know?
Ms. Henning: We are still waiting on that as well, we had a lead time of over 3 months because of issues due to shortages with COVID.
Mr. Pelaez: Ok.
Ms. Henning: So, we're experiencing delays that were a little longer than anticipated, but they are keeping in contact with me. As far as value optimization, our recommendation is to replace lights in the main pool. For hospitality and social events, during August we had scheduled for the back to school bash, and due to a strong spike in the COVID cases because of the Delta variant, we did feel that it was best for the safety of all of the residents to go ahead and postpone that event. So, all of the items that had been purchased for that event, we do have them, and so we are storing them here at the clubhouse so that we can go ahead and rework those supplies into an upcoming event.   One that we were able to go ahead and have, was the food truck night, and that took place on Friday, August 27th. It was a big hit, residents were so excited that we had another food truck event, that is actually one of their favorites, so they were very happy. Some of the food trucks actually sold out before the event had ended, so if it that tells you anything about how the turn out went but, laser tag was also a very big hit as well. The parents and kids were surprised that they were able to do something like that, so they definitely had a lot of fun. Upcoming social events that we have for the month of September which was actually last week, we just had the arts and crafts night, that was a big hit, you'll see some of the photos and the feedback from that next month, and then also coming up next week, we have bingo night and then moving

forward into October we'll do pumpkin carving and the Halloween bash. Proposals that I brought before the Board during workshop, we just have the event proposals for the social events for October, and that's it.
Ms. Duque: Thank you so much Monica, are there any questions for Monica?
Not hearing any, let's move forward.
Ms. Henning: I'm so sorry, one update that I just wanted to let you know, with the transition for the fire alarm vendor, we have fully transitioned over to WSC and it was a very smooth transition working with Rick and his team, we have had a lot of communication back and forth, so I'm very pleased and I know that we did discuss in prior meetings as far as the potential of maybe switching out that communicator, as of right now we just wanted to get Rick settled in and the whole WSC team and then from there we'll monitor it, and if it is something that we still might need to be looked at, I would bring that before the Board in a future meeting.
Ms. Duque: Thank you so much for that Monica.

Field Manager - Monthly Report
Ms. Duque: Let's move forward to field manager report, Andi.
Ms. Philippi: Good evening to you guys again. You can see the pictures, everything looks good and well, BrightView is doing a good job maintaining the property. We had a drive through with Mauricio and them to see some locations of things that were not quite well for us. Then there is an easement, you can see the pictures there, there is some concrete, and we got a proposal already to fix that on our end because there is a part of the easement that is Lennar's and we cannot touch that, but we're going to fix the part that is on our side and try to make that better for the residents and we got the proposal today, and it was approved by Juliana to fix it. Also, you will see some pictures here for the entrances, there are some green island ficus, there is a second row behind the plant material we have. If you go to third page after the concrete pictures, you will see there is like a row of plant material that is not good, it's the green island ficus there, so we're going to remove that because it's basically pushing against each other there competing for the same space, so we're just going to take that out. We saw some materials to install today at some of our medians that's going to change

the entrance and then we selected for the annuals to change out with purple magenta and they're going to go with the orchid and blush pink, so it's going to look good. So, I just put some pictures from our last meeting, I said that we worked with irrigation repairs, the are parts here, pictures, and also for the lake, we have pictures here for the service, and the cleanup. Did they do anything that you guys have questions on? Well, as you guys know, quality assessment and all the reports are here, if you guys have any questions, please let me know, I'm sure you will. Thank you.
Ms. Duque: I think the only item that we do need to inform the Board is in terms of the irrigation repairs, those are items that we need to move forward as soon as we receive them. What we generally do and suspect, they provide us with pictures also before and after the work is completed too. One of the other items that we had, our landscape guy was here this morning, and during our landscape drive we did talk about the tree trimming and palm pruning that is coming, so they are a little bit behind schedule and we'd like to do those services during the September month, but they have already provided me October 4th as the date to start. What they're going to do is, they will be starting on SW 112th Avenue all the way inside.
Ms. Philippi: Just one more thing, after I finished the report and I sent it, then we had a broken main line on the irrigation side and they had to fix it, they fixed it very quickly, so what I did when they sent Julian proof, I put it here so you guys could see it.
Ms. Duque: But that was already completed. Ms. Philippi: Yes. That's it guys.
Ms. Duque: Unless there are any questions, let's move forward to the CDD manager's report.

CDD Manager
Ms. Duque: I do not have any additional items to report, the only thing is as part of the agreement between the District and Lennar for the items that the Board requested to be included or to be expensed by Lennar and not the District, I did receive the invoice from Ford Engineers. As requested by Mauricio, they visited the Alena annexed area which is the area next to us, and there are some other charges related to the Silver Palm side which was the WASD transfer, the amount is $142 50. Once

again, this is part of the cost to be covered by Lennar, this was already sent to Carolina from Lennar as well, I just wanted to bring it to your attention and also to be part of today's record of the meeting. Nothing else to report unless there are any questions.
Mr. Pelaez: No.

EIGHTH ORDER OF BUSINESS	Financial Reports
Approval of Check Register
Balance and Income Statement
Ms. Duque: Let's move forward to financial reports, so tab A is approval of the Check Register, and tab B is the Balance Sheet and Income Statement. Unless there are any questions about those, a motion to approve them will take place.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, the Check Register, Balance Sheet and Income Statement were approved.

NINTH ORDER OF BUSINESS	Supervisors	Requests
Audience Comments
Ms. Duque: Are there any Supervisors requests?
Mr. Pelaez: I know we're moving the next meeting in October. Ms. Duque: Yes, from the 12th to the 19th.

and

Mr. Pelaez: I think we're continuing to move these club rules every meeting because that is a whole project in itself. I don't know, I'm just throwing it out there, if we need to have two meetings in one month, which I think we need to tackle these rules because we continue to kick the can down the road, so I'm ok with two meetings next month if we need to, unless we all want to commit to doing it at the next meeting, but at some point, you see the meetings are long, but we need to do it.
Ms. Duque: I think we have, it was planned to be discussed during this meeting, but due to the length of the meeting and the items that we needed to discuss today, we kind of postponed it. I think it's ready, all of the items that we wanted to have in terms of the rules and regulations are already included. The only additional item that we have spoken today is about the suspension, but in reality, I think we have everything set. I'll

work with Scott and with Monica and we'll have them for the next meeting, it shouldn't take that long.
Mr. Pelaez: So, we'll be able to do it at that meeting. Ms. Duque: Yes, at the October 19th meeting.
Mr. Pelaez: Ok, very good.
Ms. Duque: Are there any other Supervisors requests?
Mr. Cochran: You're talking discussing them and then we would do the public hearing.
Ms. Duque: Correct, and then we'll do the public hearing. Mr. Pelaez: So, the discussion is going to take some time.
Ms. Duque: Yes, it has to be on the 19th so we don't continue moving it.
Mr. Pelaez:	Right, so as long as we're ok with spending that time on it at the next meeting.
Ms. Duque: Yes, we have to do it. Mr. Pelaez: Ok.
Ms. Duque:	Any other Supervisors requests?	Not hearing any, is there any audience comments?

TENTH ORDER OF BUSINESS	Adjournment
Ms. Duque: Not hearing any, a motion to adjourn will take place.

On MOTION by Mr. Xavier seconded by Mr. Monserrat with all in favor, the meeting was adjourned.

airman