Draft Continuation Meeting Minutes for August 11, 2022

Clearwater Cay Community Development District

The continuation meeting of the July 28, 2022 meeting of the Board of Supervisors of the Clearwater Cay Community Development District was held on Thursday, August 11, 2022 at 5:30 p.m. at the Grand Venezia Baywatch Clubhouse at 2704 Via Murano in Clearwater, Florida 33764 and via web conference.

Present and constituting a quorum were:

Don Dwyer – Chair
Patrick O’Malley – Vice Chair
Alan Glidden – Assistant Secretary
Steve Whitehurst – Assistant Secretary

Also present (or attending via web conference) were:

Cal Teague – District Manager
Dan Molloy – Attorney, Molloy and James
Residents

FIRST ORDER OF BUSINESS Call to Order and Roll Call

The meeting was called to order and the Chair called the roll. All Board members were present, with Supervisor Whitehurst attending via web conference. Also in attendance were Cal Teague, the District Manager, Dan Molloy, the Attorney, a Court Reporter, and Some Residents. Some Residents attended via web conference.

Chair Dwyer stated that there is a court reporter at the meeting, and he asked all who speak to do so one by one and to speak clearly. He also stated that he was starting the meeting 10 minutes late to allow Invesco to arrive or join online. The meeting had been posted on the website for their information. They did not arrive and Chair Dwyer opened the meeting at 5:37 p.m.

On MOTION by Chair Dwyer, seconded by Vice Chair O’Malley, with all in favor, the Board approved Supervisor Whitehurst’s attendance via web conference.

SECOND ORDER OF BUSINESS Approval of the Agenda

Approved at the Regular meeting.

THIRD ORDER OF BUSINESS Audience Comments on Agenda Items

There were no Audience comments on the Agenda at the Regular meeting.

FOURTH ORDER OF BUSINESS Approval of Meeting Minutes

A. Draft Meeting Minutes for May 26, 2022

Approved at the Regular meeting.

FIFTH ORDER OF BUSINESS FY 2023 Budget Public Hearing

Chair Dwyer opened the Public Hearing at 5:40 p.m.

Bruce Barnes reviewed his handout outlining the history of Grand Venezia. He stated that Grand Venezia is in favor of a $0 debt assessment, because the CDD is of no benefit to them. He stated, and Chair Dwyer agreed, that they had spoken to owners who purchased their property in 2006, or thereabouts, and they had seen no improvements to infrastructure or any other promised capital improvements, and they should not be included in a debt assessment. Attorney Molloy stated that what the Board is currently deciding on is what happened after the sale to the Vue in 2015, not for those who purchased property earlier. He also reminded the Board that the debt assessment currently on the table is subject to challenge and to expert testimony, and the Board does not currently have an expert. Chair Dwyer stated that he will be back in court to defend what was proposed. He reviewed his bond debt assessment report and stated that nothing had been included from the original intent. Chair Dwyer proposed that landowners continue to be assessed for the daily operations of the District, with a 1 year adjustment period to reconcile excess funds earmarked for Gray/Robinson.

Dan Tsinokis commented that he has not heard what benefits the community will receive with this debt assessment.

Richard Cranwill commented that he doesn’t think that the current debt assessment is right or fair.

District Manager Teague stated that the proposed tentative O & M and debt service Budget has no increases or decreases in assessments. Chair Dwyer’s proposed Budget has an 18% reduction in assessment rates across the board. He felt that the District would retain $86,000, which would go into the 2024 Budget.

The Board discussed the suggested changes to the proposed O&M Budget that were presented by Chair Dwyer. The Board decided to approve suggested revisions to the Budget presented by Chair Dwyer, which include an 18% reduction in O & M assessments, with a decrease in debt assessments to zero. These changes would be applied to the proposed tentative Budgets.

On MOTION by Supervisor Glidden, seconded Vice Chair O’Malley, with all in favor, the Board adopted the Fiscal Year 2023 O & M Budget, with an 18% reduction in assessment rates.

Because the resolution included both O & M and debt, the resolution was delayed.

On MOTION by Vice Chair O’Malley, with no second, he proposed transferring $110,000 to the fund balance so it can be allocated as the need arises. District Manager Teague stated that there is currently a $130,000 fund balance that can be used as needed. Motion withdrawn.

The Board recessed at 7:06 p.m. for attorney client discussion.
Chair Dwyer resumed the meeting at 7:15 p.m.

Supervisor Glidden stated that a $0.00 debt assessment is the wrong way to go about it. He sees it as an arbitrary decision to have the debt go away, and he would like there to be a solid debt assessment and that it be lowered in the future. He also stated that he believes the result of the $0.00 debt assessment will definitely go to court, and that they would be ruled against. Chair Dwyer stated that he was told that Invesco would appeal our decision, no matter what it is, and if this is the case, he believes we should work toward a $0.00 debt assessment. Supervisor Glidden would like to see a proposed debt assessment to be something that would hold up in court. Chair Dwyer stated that if we don’t do this, we have to accept the one that was submitted in February, and he would not support it. He stated that it has to be completed by September 15th, and he doesn’t see how this can happen. Vice Chair O’Malley believes that the District should strongly oppose Invesco, because what they have done is wrong.

A. Adoption of FY 2023 Budget: Resolution 2022-05

On MOTION by Vice Chair O’Malley, seconded by Chair Dwyer, with 3 in favor, and Supervisor Glidden opposed, the Board adopted Resolution 2022-05, the Clearwater Cay Development District Fiscal Year 2023 Budget, with $0.00 debt and the O & M assessment to be levied by the District for $234,704.

B. Approval of FY 2023 Assessment Levy: Resolution 2022-06

On MOTION by Vice Chair O’Malley, seconded by Supervisor Whitehurst, with three in favor, and Supervisor Glidden opposed, the Board approved the bond debt service fund at $0.00.

On MOTION by Vice Chair O’Malley, seconded by Supervisor Whitehurst, with 3 in favor, and Supervisor Glidden opposed, the Board adopted Resolution 2022-06 authorizing the tax assessment roll.

Chair Dwyer asked for public comments:

Richard Cranwill asked how many positions will be seated after the next election, and Chair Dwyer stated that there will be five available, but there now seem to be only three that have shown interest. He also thanked the Board for dealing with this difficult situation, including the timeline that was given to them.

Dan Tsinokas stated that these matters are not easy decisions, and he appreciates the action taken today. He also thanked the Board for their efforts.

Bruce Barnes stated that he appreciates Supervisor Glidden’s viewpoint. He believes that there had been no template for this District on the assessments, and he appreciates expert testimony and the court challenges there have been. He also stated that his idea was to have representatives from Invesco come to the meeting and give the District a reason why there should be assessments, outlining the benefits of the assessments, and what the dollar amount should be. He believes that the two parties could debate their proposal, the Board could reflect on the other parties’ input, and there would be a record of the Board’s decision. Since 2016 the bondholders have not expressed their expectations on what the assessments should be based on the benefits. He is disappointed that they were not here.

SIXTH ORDER OF BUSINESS Old Business

A. Reassessment Discussion on Debt and O&M Fees

Chair Dwyer reviewed his operation and maintenance report. He stated that in order to support the daily operations of the District, they should continue to assess the landowners for O & M. The O & M assessments will be determined by the funds identified in the Budget. He proposed that there be a 1 year adjustment period in 2023 to reconcile excess funds earmarked for Gray/Robinson. In 2024 this adjustment will be past.

The following Agenda items had been acted on at the Regular meeting, and Chair Dwyer moved directly to adjournment.