Minutes of Meeting
Armstrong Community Development District

The regular meeting of the Board of Supervisors of the Armstrong Community Development District was held Wednesday, March 6, 2019 at 3:30 p.m. at the Plantation Oaks Amenity, 845 Oakleaf Plantation Parkway, Orange Park, Florida.

Present and constituting a quorum were:

Mike Taylor Grady Miars Liam O'Reilly Blake Weatherly Rose Bock
Also present were: James Perry
Katie Buchanan
Keith Hadden Dean Vincent Greg Kem

FIRST ORDER OF BUSINESS

Chairman
Vice Chairperson (by telephone) Supervisor
Supervisor Supervisor

District Manger
District Counsel (by telephone) District Engineer
Armstrong Ventures Greenpointe

Roll Call

Mr. Perry called the meeting to order at 3:30 p.m. and called the roll.

SECOND  ORDER OF BUSINESS	Public Comment
There being none, the next item followed.

THIRD ORDER OF BUSINESS

Approval of the Minutes of the February 6, 2019 Meeting

On MOTION by Mr. Taylor seconded by Mr. O'Reilly with all in favor the minutes of the February 6, 2019 meeting were approved as presented.

FOURTH ORDER OF BUSINESS	Consideration	of	Change	Orders	from
Scherer Construction for Greyhawk Amenity Center
Mr. Vincent stated the primary change order is for the entry feature at $152,417.70. At the last meeting we had a not to exceed amount of $190,000 and after some value engineering Greg working with the plans it is down to $152,417.70. The other change orders have been vetted by the construction manager as well.

On MOTION by Mr. Taylor seconded by Mr. O'Reilly with all in favor change order #005 for entry feature additional revision #001 for a net increase of $152,417.70, change order #006 for removal of tempering requirement to non code required windows for a net decrease of $1,600, change order #007 to furnish and install SDS screws to LVL's at 12" on center top and bottom work per RFI 018 for a net increase of $1,809.82, change order #008 for landscape modifications for a net decrease of $3,355.75, were approved.

FIFTH ORDER OF BUSINESS	Consideration of Proposal from FF&E
Mr. Perry stated included in your agenda package is a proposal from Micamy Design Studio and the total proposed cost of the various furniture and fixtures is $92,763.15.
Mr. Miars joined the meeting by telephone at this time.
Mr. O'Reilly stated this is just for the interior furniture and all the finishings for inside the building and outside. The construction manager has done a good job of going back and forth and getting all these costs within the original budget.
Mr. Kern stated I have done a thorough review to make sure it is comprehensive. Mr. O'Reilly stated we still have the firepit.
Mr. Kern stated that is in the G.C.s contract, in his scope of work. The firepit is still included. This scope was not included in the G.C.s contract with Scherer Construction but this is direct with Micarny Design Studio and they will be procuring all of the furniture as well as installation, it is a full turnkey package.

On MOTION by Mr. Taylor seconded by Ms. Bock with all in favor the proposal from FF&E for the Greyhawk Amenity Center furnishings for a total of $92,763.15 was approved.

SIXTH ORDER OF BUSINESS	Discussion of Proposal for Lease Terms
Mr. O'Reilly stated this is for the fitness center, the CDD has the option to purchase the equipment or go with the leasing and there are three different lease terms depending on duration the payment will change.
Mr. Kem stated there should be a standard form lease agreement provided by the leasing company. We had one other proposal done early on to try to shore up our numbers and the units look pretty good, the package we are receiving is line with the caliber we think the community needs. It is fairly robust considering the space we have. We can purchase them direct or enter into a lease. At a minimum I would like to get a not to exceed approval while we work through the terms of the agreement.
Ms. Bock asked is there a maintenance part to this if we lease this equipment?
Mr. Kem stated I will have to check. I believe there is a warranty period, but I don't believe a maintenance program is included.
Mr. O'Reilly stated I believe we have the option to add it. We could look at the cost of adding that to get a maintenance program for the duration of the lease.
Ms. Bock asked Jim, do you know what other places do?
Mr. Perry responded there is usually one to two-year warranty, some could be longer depending on the equipment. Then we do enter into a maintenance agreement.
Mr. Kem asked do other CDDs typically lease the equipment?
Mr. Perry responded some do but more of them purchase the equipment outright. Part of the reason is the terms and/or the finance charges are usually pretty onerous. The terms look like they are doable on this one, but we don't have an interest rate.
Ms. Bock asked what is the lead time on ordering this equipment?
Mr. Kem stated I would like to have at least a 60-day lead time. The amenity center is forecasted for June for a soft opening and we are coming up on that fairly quickly.
Mr. O'Reilly asked ifwe have a not to exceed amount do we have the authority to approve a lease or purchase or does that have to come back to the board for approval?
Mr. Perry stated I think you can make a motion that the chair has the discretion to purchase outright or lease it.

On MOTION by Mr. O'Reilly seconded by Ms. Bock with all in favor the chair was authorized to work with district counsel and the district manager to evaluate and execute a lease and/or purchase for the fitness equipment in an amount not to exceed $95,000.

SEVENTH  ORDER OF BUSINESS	Ratification/Consideration of Requisitions
Mr. Perry summarized the requisition for board consideration.
Mr. Hadden asked what about the one we did this morning for Lucas?
Mr. Perry stated I was going to bring that up under district manager, but we can add it in here. There is another invoice from Basham & Lucas which will be requisition no. 055 for
$1,432.70.

On MOTION by Mr. Taylor seconded by Mr. O'Reilly with all in favor requisitions from the Series 2017A and 2017B Bonds were approved as follows: requisition 049 payable to Bashan & Lucas in the amount of $4,798.10, requisition 050 payable to Jr. Davis Construction in the amount of $90,449.36, 051 payable to Hadden Engineering, Inc. in the amount of $1,450.00, 052 payable to Scherer Construction Co. in the amount of $225,485.41, 053 payable to BuiltRite Inspections, LLC in the amount of $445.00, 054 payable to Gaynelle James in the amount of $1,011.75, and 055 payable to Basham & Lucas in the amount of$1,432.70 were approved.

Mr. O'Reilly stated Hadden Engineering, behind the scenes prepares a master requisition list. I propose that for the benefit of the board we add this to the front of the requisitions. That is all the historical requisitions and you can see the summary for tracking purposes.
Mr. Perry stated not a problem.

EIGHTH  ORDER OF BUSINESS	Staff Reports
District Counsel
There being none, the next item followed.

District Engineer
There being none, the next item followed.

District Manager - Funding Request No. 1 and No. 2
Mr. Perry stated in front of you is funding request no. 1, this is deficit funding from Greenpointe, and it has already been processed and that was for a total of $260,711.35. We have exhausted our construction funds and now you are having to fund the requisitions that come before you. This one has been processed, but I will ask for a motion to ratify this one.
Mr. O'Reilly stated it would actually be made out to Greyhawk Ventures.
Mr. Hadden asked was it last month that you were talking about doing a bond issue on Phase 2 and Phase 3?
Mr. O'Reilly responded yes.
Mr. Hadden asked are you still going to do that because there are things that Jim and I need to do when you pull the trigger on that?
Mr. O'Reilly stated we talked about that today and we are trying to prepare for a June bond issuance. We will have a kickoff meeting probably in the next couple of weeks to start that process. Mr. Hadden stated keep us in the loop because I have to prepare an engineer's report and
Jim will have to do the methodology.
Mr. Perry stated in regard to the funding request, there is another one and we will get that one changed at the top. This one is for $325,072.32 and reflects the requisitions that were just approved but does not reflect the deposit for the design work for all that furniture and fixtures in the amount of $69,572.42. I would like to add that and we will modify the funding request with a new total of$394,644.74.
Mr. O'Reilly stated, Katie, we have a proposal outlining a detailed scope of items to be delivered. Is it typical to have some kind of service agreement? I think we would have something more than a proposal.
Ms. Buchanan stated we have a form we usually put together for provision of goods that is a little more simple than our other agreements.

On MOTION by Mr. Taylor seconded by Mr. O'Reilly with all in favor staff was authorized to prepare an agreement with Micamy Design Studio for the FF&E purchase of furniture and fixtures.

On MOTION by Mr. Taylor seconded by Mr. O'Reilly with all in favor deficit funding request no. 1 in the amount of $260,711.35 made out to Greyhawk Ventures LLC. and funding request no. 2 in the amount of $394,644.74 made out to Greyhawk Ventures LLC were approved.

Tynes Boulevard Project Administrator
Mr. Vincent stated a little clarification on the funding request for this month. You may notice there are no Vallencourt invoices because they chose to transition their date when they submit invoices. They are going to submit their pay applications the day of the meeting. I have their pay request.
We are 100% on lA with a very minor punch list. All utilities are accepted now so we are within 3% to 5%. We anticipate in the next 30 days the water line will be tied into the south end of the project. Curbs are in, lime rock is in, in the Area of IB so we are at a stage where we are waiting on when they are moving into tie in. We don't know if they are going to extend from the roundabout south or go from south to north. We are going to suspend the contract time just as we did on 1A for them to give us a schedule so we will have that next month.

NINTH ORDER OF BUSINESS	Supervisor's	Requests	and	Audience
Comments
There being none, the next item followed.

TENTH ORDER OF BUSINESS	Financial Statements as of January 31, 2019
A copy of the financials was included in the agenda package.

ELEVENTH ORDER OF BUSINESS	Consideration of Funding Request No. 31
(General Fund)

On MOTION by Mr. Taylor seconded by Mr. O'Reilly with all in favor general fund funding request no. 31 in the amount of
$10,709.05 was approved.

TWELFTH ORDER OF BUSINESS	Consideration of Funding Request No. 29
(Construction Fund)

On MOTION by Mr. Taylor seconded by Ms. Bock with all in favor construction fund funding request no. 29 in the amount of $12,537.50 was approved.

THIRTEENTH ORDER OF BUSINESS	Next Scheduled Meeting - 04/03/19 at 3:30
p.m. at the Plantation Oaks Amenity Center
Mr. Perry stated the next scheduled meeting will be April 3, 2019 at 3:30 p.m. at this location.
Mr. O'Reilly asked Keith can you update everybody on when the start of construction for
5B?
Mr. Hadden stated all the plans were approved, the shop drawings were approved,
Vallencourt is ready to go and scheduled a pre-construction meeting and the day before Nick called and cancelled the pre-construction meeting. I don't know if they are trying to bundle funding with other projects.
Mr. O'Reilly asked will you provide an update at the next meeting? Mr. Hadden responded yes.
Mr. O'Reilly stated I would want to take a look at the ponds that connect from that project. Phase 2 and 3 of Greyhawk is 90% designed and would not fall that far behind in construction timing. There may be some synergy between that CDD and this CDD and doing just the earthwork.
Mr. Taylor stated I would like the board and staff to consider moving the CDD meetings by one day.

On MOTION by Ms. Bock seconded by Mr. Taylor with all in favor the next meeting will be held April 4, 2019 at 3:30 p.m. at the same location.

Mr. Hadden stated we will keep it on Thursday, not just next month. Mr. Perry stated correct.
Mr. Kern stated I would like to start advertising for bid the landscape maintenance contract for Tynes Boulevard. The landscaping is in and it is growing and we want to authorize counsel to gather the paperwork and GMS to notice it.
Ms. Buchanan asked do you not want the same provider to maintain it for the first year? Mr. O'Reilly stated I think that is an option.

Mr. Kern stated we haven't approached them. I' m not sure they have maintenance abilities. We are going to need some provision for that and we will work with the project administrator on Tynes to evaluate the warranty.
Mr. Pen-y stated next month you want those documents to be available to the board.
Mr. Kern stated I would like to get that in substantial for so we can approve a public notice.
Mr. Hadden asked do you want whoever is going to maintain the parkway to maintain the rec center or do you want those separate? You may want those separate.
Mr. O'Reilly stated I think ultimately what is going to happen is district counsel is going to have to look at some type of cost participation between the CDD and Armstrong Ventures.
Mr. Taylor stated it was pointed out to me that in July a Thursday meeting is a holiday.
We will have to adjust for that.
Mr. Perry stated on the next agenda we will have a proposed meeting schedule for the rest of the year.

On MOTION by Ms. Bock seconded by Mr. O'Reilly with all in favor the meeting adjourned at 4:07 p.m.