South Kendall. Community Development District

Transcription

1 South Kendall Community Development District Jesus Hernandez, Chairman Sergio Valdes, Vice Chairman Alexander Sabe, Assistant Secretary Betty Fayad, Assistant Secretary Ernesto Frye, Assistant Secretary September 23, 2016

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4 MINUTES OF MEETING SOUTH KENDALL COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the South Kendall Community Development District was held on August 26, 2016 at 9:00 a.m. at Tuscany Village Clubhouse, SW 133 rd Terrace, Miami, Florida. Present and constituting a quorum were: Jesus Hernandez Sergio Valdes Ernesto Frye Betty Fayad Alex Sabe Chairman Vice Chairman Assistant Secretary Assistant Secretary (by phone) Assistant Secretary (by phone) Also present were: Luis Hernandez Juliana Duque Ginger Wald Yamilex Ortega Several Residents District Manager (by phone) GMS District Counsel Courtesy Property Management FIRST ORDER OF BUSINESS Roll Call Ms. Duque called the meeting to order and called the roll. SECOND ORDER OF BUSINESS Approval of Minutes of the July 22, 2016 Meeting Ms. Duque: The second item on the agenda is Approval of Minutes of the July 22, 2016 Meeting. This is the time to make any changes, additions, or deletions. If there are none, a motion to approve them would be in order. On MOTION by Mr. Valdes seconded by Mr. Frye with all in favor the Minutes of the July 22, 2016 Meeting were approved.

5 August 26, 2016 South Kendall CDD THIRD ORDER OF BUSINESS Public Hearing to Adopt the Fiscal Year 2017 Budget A. Motion to Open the Public Hearing Ms. Duque: Next we have the Public Hearing to Adopt the Fiscal Year 2017 Budget. The first item is the motion to open the public hearing. On MOTION by Mr. Valdes seconded by Mr. Jesus Hernandez with all in favor the public hearing was opened. B. Public Comment and Discussion Ms. Duque: The next item is Public Comment and Discussion. Mr. Luis Hernandez: At this point we are going to discuss the budget. For the homeowners who are in attendance, this is the budget the board has been discussing for the last few months. The community has been going through several items that needed repairs and all of those have been taken care of, but as time passes by, the need to do repairs and maintenance continues to increase and that is the main reason for the increase. If you look at pages 1 and 2, you will see they describe line items of all of the district expenses and determine the estimated amount for the expenses for the coming year. The total amount estimated for the increase on the club side for the operations and maintenance side is $72.47 and for the clubhouse side $61.60, meaning the total is $ as the gross amount. The gross amount represents a number that will show on the tax bill as the amount if the homeowner chooses to pay April 1 st. At the same time, the homeowners have the ability to take the 4% discount, meaning that if someone decides to pay the property taxes in November, they will see a discount compared to the numbers we are presenting right now. Page 3 shows the main reason of the increase for this year. There is an increase of $20,000 in the budget itself, and it shows the carry-forward has decreased so that the concern from the board is that if there was no increase this year, in the future the financial condition of the district is not going to be as steady as it is right now and that is the main reason for the increase. If we continue with the budget, pages 4, 5, 6, and 7 show the wording description of what the intent of all of the line items that are being presented in this budget. At the same time, page 8 contains the bond for the 2

6 August 26, 2016 South Kendall CDD Series 2008 that affect what the district owes for Phase II and Phases III and IV, which are 155 townhomes. Page 9 is the amortization for that particular bond. Then we have the Series 2010 on page 10 and the amortization table on page 11. Page 12 contains the Series 2014, which is the original Series 2004 that affects the portion of the community where the club is at. Those were refinanced in The amortization table for that is presented after that. So now I have presented the budget, which is the reason and purpose for today s meeting, the next step would be hear comments from the public, so if anyone has any comments, please present them now. Ms. Wald: If we could do it in order because we have to record everything that would be great. Ms. Duque: Does anybody in the audience have any questions or comments in reference to the budget? If you could please move to the front and state your name for the record so we can hear you. A resident: Is the budget for maintenance of all of the things we actually have? Ms. Wald: That is the budget itself, yes. A resident: Is that all that the budget reflects? Ms. Wald: It is more than just that. It is also the debt. A resident: But it covers all of the things we already have established. That is what I am trying to say. Ms. Duque: Yes. A resident: So it is not new projects or anything like that? Ms. Wald: No. A resident: So it is just for things we have been paying for in the past. Ms. Duque: For the operations and maintenance. A resident: So if we have some complaints on certain areas we consider to be deteriorating a little bit that are listed in that budget, could we now state it? Ms. Wald: Yes. A resident: I have noticed they used to have more flowers and they were changed out from time to time by the clubhouse. Also the palms are bad. They have not changed 3

7 August 26, 2016 South Kendall CDD anything around the clubhouse. When I look at the budget, I see there is some money paid for preventing things like that. The clubhouse lately has been looking miserable. If you pass by you see. I remember they used to plant flowers, change them once in a while, but lately it looks awful. Mr. Valdes: We are working on that with the landscaper. A resident: There are plants that are sick. All of the leaves are dry and don t look beautiful anymore. The ones in the middle of the road, too. Ms. Ortega: The little hedges that go around the palm trees? A resident: Yes. They look very bad. Ms. Ortega: That has already been addressed. A resident: Okay. Also, I don t think the pest control does it often enough either because we continue to have whiteflies. That affects us because the parts we have to take care of get affected and we have to pay for pesticides, as well. I think they can do a little bit better of a job. Ms. Wald: Does anybody else have any comments or questions? A resident: The person who was just speaking on the phone is? Ms. Wald: The District Manager. He just couldn t be here in person. Ms. Duque also is from the District Manager s office. A resident: Unfortunately I didn t understand a single word he said. Ms. Wald: Okay. All he did, just so you know, is tell you what each page of the budget is. He just explained page-by-page what each is. It is self-explanatory and if you read through it you will see that, but that is all he was doing, a summary. If you have any questions specifically, it is all contained within the budget itself. And this budget is also online on the district s website. A resident: Okay. I just want to make sure the person on the phone has an understanding of what we say here. Ms. Wald: He didn t say anything that was different than what is already contained within the budget you have in your hand. So if you have any questions for that, we can address them. This is the time for the public to make comments as to the 4

8 August 26, 2016 South Kendall CDD budget. That is actually what we are discussing and we are looking to adopt it today, so this is the time to do it. A resident: I do have a lot of concerns. We are in a community where the taxes are extremely high. Now we are paying more than the values of the property. Everybody knows that these properties sold for $325,000 some years ago and today it is not even close to $250,000. Let s realize that first. That is the reality. Many houses are in foreclosure because of that. And not only because of that, but also because the taxes are extremely high. We are not living in Coral Gables. That is the truth. On the other hand, we understand we have to take care of certain areas of the property. My real concern is that I just moved about two years ago and I am usually in and out of my house because I am traveling a lot, but this place looks like a lake. I need a boat to get to my house because water here is about a foot of water sometimes. This is a serious matter because we are in hurricane season and if one comes here, we are going to need to start scuba diving here. We have to do certain things about that now while we discuss the budget to fix things around the property. I don t care about the flowers. I don t like flowers. I care about things that are more important like the streets and the drainage on the streets. There are people here who have lost their cars trying to get into their homes. It is serious. So take care of that. It is most important. Mr. Luis Hernandez: If can address one thing on what the gentleman is saying, there is one part he needs to know. The district doesn t have lakes to drain water. The way the district drains the water is through french drains. Those are inspected every year to make sure they are working properly. That is included in the budget. So what he has been seeing is that the system the district has, the roads act as part of the drainage system when it is raining. The way it is supposed to operate is that after the rain is gone, half an hour to an hour later the water is supposed to release pending upon how drastic the rain was. So it has been inspected, it is part of the concern of the board, and it is reviewed. That is how the design for this particular community was made. Once again, we don t have a lake to drain into. A resident: Then why don t we call some inspector or FEMA and decide that? 5

9 August 26, 2016 South Kendall CDD Mr. Luis Hernandez: Sir, just for you to know, when the community was built out, it was certified by an engineer and it is checked every year by an engineer to confirm that the way the community was set up was properly done and done as per the standards required for that area. A resident: I understand that, but your standards are probably not my standards or the standards of FEMA. What about their standards? Mr. Luis Hernandez: When the community was built out, it was done properly. Otherwise you would have to tear everything down. The only part I am trying to express to you is that when the community was being done, there were studies done on the way it should be done and they determined what would be appropriate. As a matter of fact, in the flooding part, there is a decrease in the insurance for the billing on the club side because we were able to prove we are not in a flooding area and the fees went down. So the statement you are making, if you go to FEMA, and you can go and check with them, and see how the community fulfilled the standards that are required and that the insurance fees went down. A resident: Well you are talking about the clubhouse. I am talking about the whole community. My concern is the last few rains and flooding in this area. My house is very close to the clubhouse and flooding in the area is extremely high. It is very easy to see. The engineers may say the area is not flooding or the drainage was properly done accordingly to the county development, but it is another story if you are here presently and seeing what is happening. I see what I see. I am an engineer, too. I know what it is and I am telling you that this area is flooding. Ms. Wald: We appreciate your comments as to that, and there is only so much the district has the ability and authority over, but those concerns will be brought to the District Engineer so we can ask him to provide us with an update on that. Any other public comments? Mr. Nicolas Hidalgo: I am a resident here. Regarding the flooding being bad, maybe we could have some pumps because the water does go down fast with those. So if it floods because it is raining real hard maybe we could have some sort of pumping 6

10 August 26, 2016 South Kendall CDD mechanism to help with that? I have seen that in other communities that they have those sorts of things. And also, in regards to the parking that was built here, I would like to see if maybe we could do some sort of passes or something where people who need the parking spaces like when you invite people over to your house, we could use the parking. Nobody uses those parking spaces they built. It was a complete waste of money and an eyesore because you can t pave over them. We have all of this nice pavement and everything has pavers, but when you look at those parking spaces it looks like crap. Ms. Wald: Thank you for your comments. Ms. Duque: And once again, as Ginger mentioned, we will have the District Engineer inspect the drainage system and give us an update. A resident: We should also call FEMA so we get two different reports. Ms. Wald: Any other public comments from anyone in the audience before we close the public comments portion? And this is just regarding the budget. C. Consideration of Resolution # Annual Appropriation Resolution Mr. Luis Hernandez: Unless anyone from the board has any questions on the proposed budget, the first item the board needs to consider is Resolution # Annual Appropriation Resolution. This resolution takes the proposed budget and makes it the district s adopted budget. So by adopting this resolution, the board will be adopting the district s budget. Based on the discussions I have seen so far, the recommendation from staff would be to adopt Resolution # Ms. Wald: Does the board have any questions on the budget? Ms. Duque: If not a motion to approve Resolution # will take place. On MOTION by Mr. Frye seconded by Mr. Valdes with all in favor Resolution # Annual Appropriation Resolution was approved. D. Consideration of Resolution # Levy of Non Ad Valorem Assessments Ms. Duque: The next item on the agenda is tab D in your agenda books, which is Resolution # , A Resolution Levying a Non Ad Valorem Maintenance Assessment for the General Fund and Adopting an Assessment Roll of the South Kendall Community 7

11 August 26, 2016 South Kendall CDD Development District for Fiscal Year I would just need a motion to approve the resolution to take place. On MOTION by Mr. Valdes seconded by Mr. Jesus Hernandez with all in favor Resolution # Levy of Non Ad Valorem Assessments was approved. E. Motion to Close the Public Hearing Ms. Duque: Last item under Section III is a motion to close the public hearing. On MOTION by Mr. Frye seconded by Mr. Jesus Hernandez with all in favor the public hearing was closed. FOURTH ORDER OF BUSINESS Staff Reports A. Attorney There not being any report, the next item followed. B. Engineer There not being any report, the next item followed. C. Club Consideration of Proposal from Roberts Aluminum Furniture (contingency) Ms. Duque: Under the Club Report, there is Consideration of Proposal from Roberts Aluminum Furniture, so I will turn that over to Yamilex. Ms. Ortega: This is for some umbrellas that we had to replace in the pool area. We presented the estimate for the board for $1, to replace the three broken umbrellas and bases. On MOTION by Mr. Valdes seconded by Mr. Jesus Hernandez with all in favor the proposal from Roberts Aluminum Furniture was approved in the amount of $1, D. Manager Consideration of Proposed Fiscal Year 2017 Meeting Schedule Ms. Duque: Next on the agenda under Manager is Consideration of Proposed Fiscal Year 2017 Meeting Schedule. This shows that the fiscal year meeting dates will be 8

12 August 26, 2016 South Kendall CDD at 9:00 a.m. at the community clubhouse with the list of months and dates scheduled for those meetings. Does anyone have any questions regarding that? Mr. Luis Hernandez: I just wanted to note that in November we have an exception because of the Thanksgiving holiday, but the intent is to maintain having the meetings on the fourth Friday of each month. Mr. Valdes: In December can we find an alternate date? Mr. Luis Hernandez: Usually what we have done in the past is leave it in case we need to have it, but for the last few years we have not needed a December meeting and have been able to accomplish everything at November and January meetings. So unless the board wants to make any changes at this time, and we could if the board wants to consider having the meeting earlier. Mr. Frye: Instead of December 23 rd could we meet December 16 th the week before? Ms. Duque: Luis, Ernesto is suggesting December 16 th. It is my understanding that Jesus and Sergio are okay with that date, as well. Mr. Luis Hernandez: The 16 th? Okay. That will be fine. Juliana, can you please cross off December 23 rd and write December 16 th and at the time the board makes the motion, you can indicate that change in the motion? Ms. Duque: So as Luis just stated a motion to approve the meeting schedule for South Kendall CDD with the change of the December 23 rd meeting date to December 16 th would need to take place. On MOTION by Mr. Frye seconded by Mr. Jesus Hernandez with all in favor the proposed fiscal year 2017 meeting schedule was approved as-amended, changing the December 23, 2016 date to December 16, FIFTH ORDER OF BUSINESS Supervisors Requests and Audience Comments Ms. Duque: Are there any supervisors requests or audience comments? Ms. Wald: And this is the public comment portion for any items. Not necessarily just about the budget. 9

13 August 26, 2016 South Kendall CDD Mr. Luis Hernandez: There is one item I want to let the board know about. As the board knows, one of the items the board has been working on is trying to refinance the bonds based on the low interest rate the market shows right now. Based on the letter the district recently received from Standard & Poors, the community has been rated to give as BBB-, which gives us the position that the community seems to be in really good standards to be able to refinance the Series 2008, 2010, and the This would mean that potentially there will be savings of approximately 13% on the bonds the community is currently paying for. Considering the community is seeing an increase now of $134.07, the savings this refinancing would provide would be approximately $235. So if we are successful in doing that, the increase that has just been approved may be offset next year with the savings the community will have. The district is currently working on all of that and we will continue to keep the board posted as we are trying to refinance these bonds as soon as we can. SIXTH ORDER OF BUSINESS Financial Reports A. Approval of Check Run Summary B. Balance Sheet and Income Statement Ms. Duque: Next on the agenda we have the Financial Reports. Tab A is Approval of the Check Run Summary, and tab B is the Balance Sheet and Income Statement, and a motion to approve the financials would be in order. On MOTION by Mr. Valdes seconded by Mr. Jesus Hernandez with all in favor the check run summary and the balance sheet and income statement were approved. SEVENTH ORDER OF BUSINESS Adjournment Ms. Duque: And last we just need a motion to adjourn the meeting to take place. On MOTION by Mr. Frye seconded by Mr. Valdes with all in favor the meeting was adjourned. Secretary / Assistant Secretary Chairman / Vice Chairman 10

14 MINUTES OF MEETING SOUTH KENDALL COMMUNITY DEVELOPMENT DISTRICT A special meeting of the Board of Supervisors of the South Kendall Community Development District was held on September 2, 2016 at 9:00 a.m. at Tuscany Village Clubhouse, SW 133 rd Terrace, Miami, Florida. Present and constituting a quorum were: Sergio Valdes Ernesto Frye Betty Fayad Vice Chairman Assistant Secretary Assistant Secretary Also present were: Luis Hernandez Ginger Wald Yamilex Ortega Jon Kessler Steve Sanford District Manager District Counsel Courtesy Property Management FMSbonds Greenberg Traurig (by phone) FIRST ORDER OF BUSINESS Roll Call Mr. Luis Hernandez called the meeting to order and called the roll. SECOND ORDER OF BUSINESS Consideration of Assessment Methodology Report Mr. Luis Hernandez: The second item on the agenda is Consideration of assessment methodology report. As the board probably remembers from last week, when we were discussing the district s budget, one of the items I brought for the board s consideration is the fact that the district received a response from Standard & Poors and the district also qualifies to be BBB-. Based on that information and based on the recommendation from the district s underwriter, it seems to be an appropriate time for the district to move forward. The easiest way for me to explain what is being presented as to the combination of all of the bonds and make just one big bond gets to be presented in the tables. Table 1 is trying to address and present the total number of units the

15 September 2, 2016 South Kendall CDD community has and also what the participation of the different series of bonds outstanding is, which are the Series 2014, the Series 2008A, and the Series 2010A. As you can see, it shows the totals. Page 2 shows what will be the effect on the district to refinance today. To start, the district is going to present the yield that is being presented in the current market, which is somewhere around 3.3%. That is going to be fixed through the entire process of maturing the final date bonds on November 1, Based on the par amount, if we move to Table 3, we can see and compare the top part of the table, which shows the current situation. The main point to address is that a homeowner who is paying $1, right now, being from Sub-Phase I, it will go down to $ What I am comparing is the table from the top to the table on the bottom, meaning that those units will have a savings of $115.52, taking in consideration that they already have savings, at the time the district did the refinancing So it is in addition to the savings they already have received. The ones who will receive the highest amount in district financing is in the Phase II, Sub-Phase 3 & 4. As you can see, currently they are paying $1, and that will go down to $1,379.75, meaning the savings based on these estimates will be approximately $ Mr. Kessler: There is a Phase I bond issue, there is a Phase II bond issue, and then there is the one for the club that goes across everything. This shows the debt service that the district is paying in aggregate and obviously you can see in 2036 it goes down because that is when the earliest series of bonds burns off. That is when the Phase I bond issue burns off, in Then it goes down again for the Phase II which burns off in 2038 and you are left with the last two years for the club in 2039 and Mr. Valdes: So basically what you are saying is that each phase will be paid on time as if it had not been refinanced. Each individual phase will be paid off according to the original maturity dates. Mr. Kessler: Yes. We can t change that. We are going to go through all of that in the resolution in a second, but legally speaking, we can t levy assessments for any phase more than originally 30 years of assessments. So absolutely that is staying the same. Then it also shows the new proposed debt service in aggregate. Luis gave me the allocation 2

16 September 2, 2016 South Kendall CDD per unit. I think we can get it done at 12% or 13% annually. It may move up or down slightly but it should be in that range. We are waiting on the final rating from S&P, which we should have early next week, and then we can go ahead and price the bonds. Mr. Luis Hernandez: So at the end of the day, the only purpose and reason for the methodology is to be able to allocate and show what would be the obligation of any property owner, and I think that has been presented. Does anyone from the board have any questions as to what has been presented? Mr. Frye: I know we are saving on this, but how much is it costing us to refinance the bonds? Mr. Luis Hernandez: The cost of issuance. Mr. Kessler: I think it is in there, it is just an estimate, but usually it runs for something like around $160,000. One of the things I thought we would have to do last time is issue more bonds to refinance and we were going to have to notice everyone and tell them that the par amount of debt on their lot is going up, but they are saving money every year because we had to pay for the cost. Now because of how the market is, what we are doing is selling a premium bond, so think of it as issuing $10 million in bonds, but we are selling them at a premium to the investor so that essentially they are effectively paying the cost of issuance through the premium and we don t have to increase people s par. So it works out quite well. Mr. Luis Hernandez: Are there any other questions? Hearing none, the next item would be for the board to accept the allocation report dated September 2, On MOTION by Ms. Fayad seconded by Mr. Frye with all in favor the assessment allocation report was approved. THIRD ORDER OF BUSINESS Consideration of Resolution # Delegation Resolution Mr. Luis Hernandez: Moving forward, next we have Consideration of Resolution # There have been some slight changes to the one that was originally included in the packages, so I am passing out copies of the revised one, and Steve Sanford is also 3

17 September 2, 2016 South Kendall CDD with us by phone, who will be helping us with the bond resolution. Steve, if you can please help us with discussing that, I would appreciate it. Mr. Sanford: No problem. This is a resolution that authorizes the issuance of the refunding bonds, and it also sets forth certain parameters that once the underwriter is in the market and determines certain pricing information, if any of that pricing information is within the parameters the board will set today by adopting the resolution, the Chair or Vice Chair will be authorized to sign the bond purchase contract without the necessity of having another meeting. Thirdly, what this resolution does is it approves certain documents which are necessary to complete the financing. I will just quickly go through what those documents are. The first document is the bond purchase contract. That is the contract that will be executed between the underwriter and the district and it spells out the terms and conditions of the closing, what has to be delivered, and also sets forth the final terms of the bonds. The parameters are approved by the board and if we fall within those parameters, the Chair or Vice Chair can execute the bond purchase contract. The first parameter is the par amount of bonds that we issue will not exceed or may be less than the par amount of the outstanding bonds so that we are not increasing the par. The second item is savings, and Jon mentioned that may be around 13%, but we have a parameter in here of at least an annual debt service savings of 8% per year. So if the savings if for whatever reason came in less than that, we could not execute the bond purchase contract without coming back to the board. Mr. Kessler: When we price the bonds, we usually put in a little wiggle room. If you feel more comfortable, we can put 10% in. Steve asked me probably a week ago for the parameters. It fluctuates based on the rates, but usually you need to give me a little bit of wiggle room. I am just telling you where rates are today, and we will probably price the bonds next week so we will be pretty much on top of what I am showing you, but if you feel more comfortable we can change that to 10%. Mr. Luis Hernandez: But for the board to understand, what you are giving them is the parameters that if they are met, the district will be able to move forward. The part they are afraid of is to make it too tight and they will not be able to move forward. Since 4

18 September 2, 2016 South Kendall CDD the market is getting better, Jon is rushing to try to get this done as soon as possible for the community. If we want to limit it further we can. Mr. Valdes: I understand, but it is 13% that is listed and now we are talking about 8% and you are giving me authority to sign, but I don t want to sign off on 8%. Mr. Kessler: That is fine, Sergio. What we are going to do before we price the bonds, I will be on the phone with you and we will walk through where we can get it done. We are not going to do anything without talking to you first and I will show you those numbers. We will talk next week. Steve, we are going to change the 8% to 10% so they feel more comfortable. Go ahead. Sorry for interrupting. Mr. Sanford: Okay. The next parameter is if the bonds can be subject to optional redemption. That means that prior to the maturity date the bonds, if interest rates drop, the district can actually issue refunding bonds and create more savings. It is not likely in this market now, but anyway, you have to give the bondholders some protection. That protection is going to be for the bondholders. Mr. Kessler: It is actually in there twice. We have the 8% and the 10%, as well. We should just cross out the 8% in Section 3. I just want to highlight two things to make sure everyone understands. We talked about the principal and terms. Don t we have a parameter that the term of these bonds won t be longer than the term of the old ones? Mr. Sanford: Yes. It is under section (i). Mr. Kessler: So obviously the par is not going to exceed the old par. The assessments aren t going any longer so you are not extending the maturity to get savings because that would be false savings. And then I just want to reiterate what he said, one of the negatives about doing a bond, with a bank loan you cannot refinance. We will probably make that November 1, we will try, but that means you wouldn t be able to refinance for 10 years. I think that is fine, though because you are locking in at such a low rate. But with a bank loan, like we did a couple years ago, the great thing about that for you was it allowed you to refinance within two years with no penalty. And that is what we are doing. 5

19 September 2, 2016 South Kendall CDD Mr. Sanford: So those are the parameters and I wanted to quickly go through the documents that are being approved by virtue of adopting this resolution. The first one is the bond purchase contract, which is between the district and the underwriter. The next document is the preliminary official statement, which is the marketing tool or prospectus that the underwriter uses to find prospective investors. That document describes and provides information about the development and the district. Once the final bond terms are determined, this preliminary official statement will turn into a final official statement with all of the final numbers and that is the document that we get delivered to the actual investors. The next document is the continuing disclosure agreement. This is a SEC rule that the underwriter is not permitted to purchase bonds unless the district has provided an undertaking to provide certain annual information and notices of material events. The whole purpose behind this SEC rule is they can t regulate the government, but they can regulate the underwriters and it shifts the obligation back to the government and provides us with information to the investors today who are going to get current information if they want to provide these bonds in a secondary market. That information becomes stale so the SEC thought in their wisdom that the playing field has to be leveled so it continually requires this updated information that is deposited into a national depository to anybody who is interested in buying the bonds or selling the bonds and they can go to this website to get up-to-date information about the district and the bonds. The next document is the trust indenture. The trust indenture is the document that exists for the length of the bonds and is between the district and the trustee, which in this case is Zions Bank, which is a national banking association and it gives rights and remedies of the bondholders and redemption provisions and the security for the bondholders. And lastly, there is the escrow deposit agreement, which says we are going to deposit a certain amount of bond proceeds, and if certain monies are left over from the prior bonds, then that will be irrevocably in escrow to pay off the old bondholders. So even though the 2008A and the 2014 bonds are going to be technically outstanding on the day we close the bonds, they will no longer be secured, as well as the 2010, by the special assessments that are currently securing the bonds. They will be secured solely by irrevocable escrow 6

20 September 2, 2016 South Kendall CDD funds that will be held by the escrow agent who is also Zions Bank. So unless the board has any questions about any of those documents or about anything else in this resolution, as bond counsel I would recommend moving to adopt Resolution # Mr. Luis Hernandez: And just for the record, I want to indicate that copies of the documents he is referring to are here for anyone to review them. I didn t want to kill more trees than necessary so I just made one copy. With that being said, a motion to approve Resolution # with the discussed changes that the savings needs to be at least 10% would be in order. On MOTION by Ms. Fayad seconded by Mr. Valdes with all in favor Resolution # Delegation Resolution was approved as-amended subject to applying changes discussed at the meeting. FOURTH ORDER OF BUSINESS Consideration of Fee Schedule from Zions Bank to serve as Trustee, Paying Agent, and Registrar Mr. Luis Hernandez: Moving forward, the next item is the fee schedule. At this point, it is being recommended to change the trustee from the current one the board was using. We are trying to present an entity that will be a little more friendly and easier to work with. Wells Fargo caused some headaches so for that reason management has gone out and checked what other trustees we can work with and at this point, I am recommending Zions Bank. They do the same trustee services that any other bank does and currently they are coming out of Colorado. Once again, they are actively getting involved in this market and for that reason they are offering some good rates. The person who is our main contact is someone I have worked with in the past and I have confidence that the services they are going to provide are really good. Right now part of the problems we are facing with moving forward is the response rate from Wells Fargo. They diminished and eliminated completely the division that they used to have for dealing with community development districts. So with that being said, their fee schedule has been presented. It is comparable and similar to the one we currently have with Wells 7

21 September 2, 2016 South Kendall CDD Fargo. So the first action I would need from the board is to approve the fee schedule that is being presented by Zions Bank and by doing so this will authorize them to serve as the district s trustee, paying agent, and registrar. On MOTION by Mr. Valdes seconded by favor Ms. Fayad with all in the fee schedule from Zions Bank to serve as Trustee, Paying Agent, and Registrar was approved. FIFTH ORDER OF BUSINESS Discussion of Letter to Wells Fargo Bank regarding Series 2008A Bonds and Series 2014 Bonds Mr. Luis Hernandez: The next item on the agenda is a Discussion of Letter to Wells Fargo regarding Series 2008A Bonds and Series 2014 Bonds. This is a letter that the district is going to be sending them. The one I included in the agenda books didn t have the totals yet, so I am passing out copies that now do, and just for the record, what I need to read is the numbers that were missing were for the Series 2014 is $3,360,000 and for the Series 2008A, it is $2,150,000. So what this letter is going to be asking them is where they need to be moving those funds to and it will just be direction as part of everything we followed up with. With that being said, a motion to approve the letter to Wells Fargo and authorizing appropriate officials to execute would be in order. Mr. Sanford: Before the board votes on this I just want to point out that the 2010 bonds are not actually going to be paid off from that escrow that I described until November 1, That is just for terms of the bonds and we can t redeem those bonds any earlier. But the 2008A and the 2014 bonds are callable at any time so the underwriter structured this so that we can actually close the bonds on October 10 th and the very next day those two series of bonds will be redeemed. By doing it that way, we will have eliminated any negative arbitrage and it makes the savings better than if we had to do a 30 day notice after we close and I think it is very important for the board to know that. 8

22 September 2, 2016 South Kendall CDD On MOTION by Mr. Valdes seconded by Mr. Frye with all in favor the board approved and authorized the appropriate district officials to execute the letter to Wells Fargo regarding the Series 2008A Bonds and the Series 2014 Bonds. SIXTH ORDER OF BUSINESS Supervisors Requests and Audience Comments There not being any, the next item followed. SEVENTH ORDER OF BUSINESS Adjournment Mr. Luis Hernandez: Unless anyone has any other district business to discuss, a motion to adjourn would be in order. On MOTION by Mr. Valdes seconded by Ms. Fayad with all in favor the meeting was adjourned. Secretary / Assistant Secretary Chairman / Vice Chairman 9

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