VENETIAN COMMUNITY DEVELOPMENT DISTRICT

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SARASOTA COUNTY

R

EGULAR

B

OARD

M

EETING

S

EPTEMBER

10, 2012

1:30 P.M.

VENETIAN

COMMUNITY DEVELOPMENT DISTRICT

Special District Services, Inc. The Oaks Center 2501A Burns Road Palm Beach Gardens, FL 33410

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AGENDA

VENETIAN COMMUNITY DEVELOPMENT DISTRICT Venetian River Club

502 Veneto Boulevard North Venice, Florida 34275

REGULAR BOARD MEETING

September 10, 2012 1:30 a.m. A. Call to Order B. Proof of Publication………..Page 1 C. Establish Quorum

D. Additions or Deletions to Agenda

E. Comments from the Public for Items Not on the Agenda F. Approval of Minutes

1. August 6, 2012 Reconvened Regular Board Meeting Minutes………Page 3 2. August 20, 2012 Regular Board Meeting Minutes………...Page 6 3. August 27, 2012 Reconvened Regular Board Meeting Minutes………..Page 12 G. Old Business

1. Update Regarding River Club Post Closing Activities

2. Continued Discussion Regarding River Club Manager Compensation Plan H. River Club

1. Status Report Regarding Financials

2. Status Report Regarding Roofing and Maintenance Projects 3. Discussion Regarding Hurricane Preparedness Plan

4. Club Rules and Regulations Workshop

5. Discussion Regarding the Formation of Committee(s)

I. New Business

1. Discussion Regarding Well Sites for Conveyance to the City of Venice – Rick Barber J. Engineering

1. Update Regarding Restoration for the East Bank of Lake 34 K. Administrative Matters

L. Board Members Comments M. Adjourn

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RECONVENED REGULAR BOARD MEETING (RECONVENED FROM JULY 16, 2012)

AUGUST 6, 2012

A. CALL TO ORDER

District Manager Michael Rosen Reconvened the Regular Board Meeting of July 16, 2012, on August 6, 2012, of the Venetian Community Development District to order at 1:30 p.m. in the Venetian River Club located at 502 Veneto Boulevard, North Venice, Florida 34275.

B. PROOF OF PUBLICATION

Mr. Rosen presented proof of publication that notice of the Regular Board Meeting was published in the Sarasota Herald Tribune on February 24, 2012, as legally required.

C. ESTABLISH QUORUM

Mr. Rosen determined that the attendance of Vice Chairman Jerry Jasper and Supervisors Marshall Turner, Mike Craychee and Barry Snyder constituted a quorum and it was in order to proceed with the meeting.

Also in attendance were: District Manager Michael Rosen of Special District Services, Inc.; David Liston of Castle Management; and Josh Grant and Rick Barber of WCI.

D. ADDITIONS OR DELETIONS TO THE AGENDA

There were no additions or deletions to the agenda.

E. COMMENTS FROM THE PUBLIC FOR ITEMS NOT ON THE AGENDA

There were no comments from the public for items not on the agenda.

F. APPROVAL OF MINUTES

There were no minutes to come before the Board for approval.

G. OLD BUSINESS

There were no Old Business items to come before the Board.

H. NEW BUSINESS

1. Fiscal Year 2012/2013 Regular Meeting Schedule

A general discussion regarding the upcoming fiscal year meeting schedule took place; it appears that some Board Members will be out of town in September, which will give all Board Members until the next meeting on August 20, 2012, to adopt a final schedule

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VENETIAN COMMUNITY DEVELOPMENT DISTRICT RECONVENED REGULAR BOARD MEETING

(RECONVENED FROM JULY 16, 2012) AUGUST 6, 2012

2. Club Budget

A general discussion of the Club Budget took place:

Comments were made regarding the format and the necessity for additional items still not shown on the current print outs. Josh Grant will continue to work with his accounting department, as well as SDS’s;

Mr. Jasper reported that the $8,333.33 for Deficit Funding is still not shown; Revenue sources need to be included and shown on the print out;

Bad Debt to be added to the revenue side; Sales Tax Rebate to be added to the revenue; Dues revenue to be added to the revenue column;

Paying for the Painting in the “transition budget” might be an issue; should be ok if paid in September; Moving expenses for the General Manager are shown under expenses; Andy Cohen to be notified for review;

Michael McElligott to “roll up” budget by the August 20, 2012, Public Hearing;

A general conversation took place regarding the benefits of either leasing equipment or purchasing it outright, i.e., fitness equipment, food service, etc. Josh Grant to do an analysis;

A general discussion took place regarding Bad Debt expenses for future events as well as dues; Josh Grant reviewed in detail what personnel were included in certain budgets, including Dan Calendar;

Josh to review the 18% vs. 20% under salaries which is a 2% increase in benefits; Josh stated that there are no merit increases included in the budgets;

Club Marketing budget was reviewed; questions arose regarding the Club website expenses with regard to a WCI/CDD split;

Food and beverage budgets were reviewed along with personnel included;

The “Loyalty Points Program” was discussed with regard to sending WCI a notice to discontinue; no action was taken on this matter;

Membership numbers need to be updated by Josh;

The Tennis Budget was reviewed along with the tennis personnel, as well as tennis revenue and is there a split of income between the tennis pros and the CDD?

Fitness programming, in general, was reviewed, including lesson revenue splits with the CDD; Discussion of the annual September Club closing was discussed along with the renovation items, i.e., tile/grout and carpet work in the locker rooms; cost about $22,000 +/-

I. ENGINEERING

There was no Engineering update.

J. ADMINISTRATIVE MATTERS

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RECONVENED REGULAR BOARD MEETING (RECONVENED FROM JULY 16, 2012)

AUGUST 6, 2012

K. BOARD MEMBER COMMENTS

There were no comments from Members of the Board.

L. ADJOURN

A motion was made by Mr. Craychee, seconded by Mr. Snyder and unanimously passed to adjourn the Regular Board Meeting at 4:15 p.m.

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VENETIAN COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING & REGULAR BOARD MEETING

AUGUST 20, 2012

District Manager Michael Rosen reconvened the Regular Board Meeting of August 20, 2012, of the Venetian Community Development District to order at 1:30 p.m. in the Venetian River Club located at 502 Veneto Boulevard, North Venice, Florida 34275.

Mr. Rosen presented proof of publication that notice of the Regular Board Meeting was published in the Sarasota Herald Tribune on April 14, 2012, as legally required.

Mr. Rosen determined that the attendance of Chairman Tom Jones, Vice Chairman Jerry Jasper and Supervisors Mike Craychee and Barry Snyder constituted a quorum and it was in order to proceed with the meeting.

Also in attendance were: District Manager Michael Rosen of Special District Services, Inc.; Jason Pierman also of Special District Services, Inc.; Michael McElligott of Special District Services, Inc.; General Counsel Andy Cohen of Hankin, Persson, McClenathen, Cohen & Darnell; District Engineer Rick Schappacher of Schappacher Engineering & Surveying; David Liston of Castle Group; Rick Barber of WCI Communities; and Josh Grant of WCI Communities.

1. July 16, 2012, Regular Board Meeting

Mr. Rosen presented the minutes of the July 16, 2012, Regular Board Meeting for approval. Minor revisions were made to the minutes. A motion was then made by Mr. Craychee, seconded by Mr. Jones and unanimously passed to approve the minutes of the July 16, 2012, Regular Board Meeting, as amended.

G. PUBLIC HEARING 1. Proof of Publication

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PUBLIC HEARING & REGULAR BOARD MEETING AUGUST 20, 2012

Mr. Rosen presented proof of publication that notice of the Public Hearing was published in the

Sarasota Herald Tribune on July 31, 2012, and August 7, 2012, as legally required.

2. Receive Public Comment on Fiscal Year 2012/2013 Final Budget

A. What is the River Club infrastructure; what type of lots are there and what were last year’s assessments? Jason Pierman presented a detailed explanation of what the term “infrastructure” refers to, the assessments for different products/lots and how much was last year’s assessments as compared to this current fiscal year coming up. B. Will our tax notice show the River Club separate from the regular CDD? Jerry

Jasper explained in detail how the County Tax invoice will look and the differences between the long term debt for infrastructure vs. the new River Club assessment. Tom Jones requested that the web site have a total clarification, in detail, as to how the annual tax invoice will look and how to understand it.

C. Are there going to be increases next year? Jason Pierman and Michael McElligott explained the difference between the long term debt for infrastructure and the annual Operations & Maintenance Assessment (O&M) and that the O&M can go up, depending on the level of services provided, but the long term debt stays the same.

D. A motion to close the public comment portion of the Public Hearing was made by Mr. Snyder, seconded by Mr. Jones and passed unanimously.

E. General Discussion by the Board regarding:

1. Loyalty points- after discussing the need for a possible “true-up” of the loyalty points with WCI, it was agreed that the program should end. A motion was made by Mr. Jasper, seconded by Mr. Jones to end the Loyalty Point Program effective August 31, 2012, and honor points up to May 31st, 2013. Upon being put to a vote, the motion carried unanimously.

2. Gift Cards – they are a non-budgeted item; end of discussion.

3. Guest Fees – two basic types of guest fees were discussed by Josh Grant: first, “household guests” who are defined as those that are staying with a resident and second, “outside guests”, as defined as those that do not live in the community, but are guests of a resident. New Club rules must be authored to address this; for now, the $5 Outside Guest Fee must stop, as of today, since there is a policy and fee approved for outside members. No charge is needed for Household Guests, but they must sign the proper waivers. All forms to reflect these policies are to be changed by Josh Grant and submitted for review and approval.

4. A general discussion took place regarding renters paying a $175 transfer fee; transferring the club rights to the renter.

5. A workshop will be scheduled regarding tennis programs; teenage programs; fitness classes and programs and all the fees and income associated with these programs.

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AUGUST 20, 2012

6. Salaries and wages – a discussion took place regarding how salaries, wages and wage burden is assigned to the budget. Mr. Jasper reviewed a detailed memo and documentation regarding this and the cost associated with Dan Calander and others charged to the club budget. A thorough review of the Management Agreement will need to take place to insure WCI is charging the District according to the Agreement.

7. Mr. Jasper is having ongoing communications with Samantha Sheffield of WCI and she has agreed with Mr. Jasper that the transition budget is June 1st to Sept. 30th. 8. The moving expenses of the General Manager (Josh Grant) appear to be legitimately charged to the Club per a consensus of the Board.

9. Dan Calander to be removed from the budget; Josh Grant to send the communications to WCI

10. Rich Schappacher reviewed his Road Work Maintenance Budget. More discussion on the overall life expectancy of the infrastructure will be needed; however there are no immediate concerns.

11. A discussion regarding reducing the contingency by $15,000 ensued and a

motion was made by Mr. Craychee, seconded by Mr. Jones to do so in keeping with

the report to the residents that the assessment could see a reduction. Upon being put to a vote, the motion passed unanimously.

3. Consider Resolution No. 2012-10 – Adopting a Fiscal Year 2012/2013 Final Budget

Mr. Rosen presented Resolution No. 2012-10, entitled:

RESOLUTION NO. 2012-10

A RESOLUTION OF THE VENETIAN COMMUNITY DEVELOPMENT DISTRICT ADOPTING A FISCAL YEAR 2012/2013 BUDGET.

A motion was made by Mr. Snyder, seconded by Mr. Jones and passed unanimously to approve Resolution No. 2012-10, as presented.

H. OLD BUSINESS

1. Update Regarding River Club Post Closing Activities

Reviewed by Mr. Jasper as to the status and the on-going progress: a. Sales Tax Refunds

b. WCI True Ups

c. Residents on payment plans d. liquor license transfer

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2. Discussion Regarding Additional Water Pump from City

Mr. Snyder spoke to the City Engineer who said “she knows of no agreement regarding this issue.” This item is now complete.

Flood Insurance – it appears that the District might have to apply to FEMA for a map change, but first we will wait for the new maps to be issued officially, per Rick Schappacher.

3. Update on Fencing and Signage Next to Lake #2

Per Rick Schappacher it is too wet to start the work.

4. Discussion Regarding River Club Manager Compensation Plan

Josh Grant is to get a copy of the most recent customer satisfaction survey that WCI has completed. A general discussion of a potential increase criteria took place as follows:

45% CDD Board; 45% Survey Results; 10% WCI. Normally processed in January and paid in February. Josh Grant is to author criteria and submit to the CDD Board for review.

I. NEW BUSINESS 1. River Club Report

Painting – Mr. Craychee updated the Board on the status of the painting contractor’s proposals, timing, club operations and ACC approval. It was determined that there is no time limit on the funds since they are not the new Bond funds. An additional meeting will be needed to complete the contractor selection.

2. Discussion Regarding Tree Removal

A request from resident Fannelli to remove a tree behind his backyard was reviewed; it was determined that no action be taken by the Board since it is not known if the tree is in a common area, protected wetland or upland or any designation that the CDD cannot opine on.

3. Consider Resolution No. 2012-11 – Adopting a Fiscal Year 2012/2013 Meeting Schedule

Mr. Rosen presented Resolution No. 2012-11, entitled:

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AUGUST 20, 2012

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE VENETIAN COMMUNITY DEVELOPMENT DISTRICT, ESTABLISHING A REGULAR MEETING SCHEDULE FOR FISCAL YEAR 2012/2013 AND SETTING THE TIME AND LOCATION OF SAID DISTRICT MEETINGS; AND PROVIDING AN EFFECTIVE DATE.

The new meeting schedule for the fiscal year 2012/2013 was reviewed. It was determined that two (2) meetings per month would be needed. The meetings will be held on the 2nd and 4th Mondays of each month, with the 2nd Monday meeting starting at 9:30 a.m. and the 4th Monday meeting starting at 1:30 p.m. A motion was made by Mr. Snyder, seconded by Mr. Craychee to approve Resolution 2012-11 as amended. Upon being put to a vote, the motion passed unanimously. Mr. Jones requested that all Board Members be sent a copy of the new schedule.

J. ENGINEERING

1. Update Regarding Restoration for the East Bank of Lake 34

Common area conveyances- Rick Schappacher presented the documents to transfer Lakes # 30 and Lake # 54. Andy Cohen reviewed the documents and approved them. A motion was made by Mr. Jasper, seconded by Mr. Craychee and passed unanimously.

K. ADMINISTRATIVE MATTERS

1. Set Date for Club Rules and Regulations Workshop

All Board Members agreed on to set the workshop for September 10, 2012.

Club renovations and equipment list – Josh Grant presented his request for the following: $1,200 - $1,400 for locker room carpet;

$1,200 for aerobic room floor polish; A new lap top for Josh; and

Key fobs for the club

A motion was made by Mr. Craychee, seconded by Mr. Jones to approve the work, as outlined, and the purchases, as listed. Upon being put to a vote, the motion passed unanimously.

L. BOARD MEMBER COMMENTS

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A motion was made by Mr. Jones, seconded by Mr. Snyder and unanimously passed to recess the Regular Board Meeting at 6:45 p.m. to be reconvened August 27, 2012. Upon being put to a vote, the

motion carried unanimously.

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(RECONVENED FROM August 20, 2012) AUGUST 27, 2012

District Manager Michael Rosen reconvened the Regular Board Meeting from August 20, 2012, of the Venetian Community Development District to order at 3:00 p.m. on August 27, 2012, in the Venetian River Club located at 502 Veneto Boulevard, North Venice, Florida 34275.

Mr. Rosen presented proof of publication that notice of the Regular Board Meeting was published in the Sarasota Herald Tribune on April 14, 2012, as legally required.

Mr. Rosen determined that the attendance of Chairman Tom Jones, Vice Chairman Jerry Jasper and Supervisors Marshall Turner, Mike Craychee and Barry Snyder constituted a quorum and it was in order to proceed with the meeting.

Present via telephone conference call was District Manager Michael Rosen of Special District Services, Inc.

There were no minutes to come before the Board.

G. GENERAL DISCUSSION AWARDING THE PAINTING CONTRACT

Mr. Craychee opened the discussion by reviewing the Proposals submitted by the various painting contractors. Mr. Craychee has met with all the contractors and reviewed their proposals based on their references, ability to start and complete the work, per the District’s time schedule, warranty, type of product to be used, years in business and price. Mr. Craychee also stated that since the proposed paint color to be used is the same as existing, David Liston with the Architectural Control Committee was able to approve without delay. There was further discussion that it was important to award this contract in order to get the existing stucco cracks sealed to prevent any further, if any, water damage to the underlying structure. A discussion as to the order of painting was briefly discussed to minimize the

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RECONVENED REGULAR BOARD MEETING (RECONVENED FROM August 20, 2012)

AUGUST 27, 2012

effects on the club operations. Mr. Craychee reviewed the various types of warranties available and it was agreed that the seven (7) year warranty was the best for this application. There was also general discussion on fascia and gutter work that would take place in the future.

A motion was made by Mr. Craychee, seconded by Mr. Snyder to award the contract to Sureway Enterprises in the amount of $29,700, which includes a seven (7) year paint protection element. Upon being put to a vote, the motion passed unanimously.

H. OLD BUSINESS

1. Mr. Jasper re-stated how important it is for the letter of assessment explanation be reviewed by Special District Services’ Finance Department and to remove the pre-pay references from the website and replace with Mr. Jasper’s explanation sheet as soon as possible. It should be posted on the website entitled: Explanation of 2012/2013 Venetian Community Development District Assessments. The Board also requested that the Fiscal Year 2012/2013 Meeting Schedule be posted on the website as well.

2. Reminder that the September 10th meeting will be the Rules Workshop Meeting and Committee

Structuring. A question was asked regarding the regulations of advertising for these workshops/meetings/Public Hearings.

3. Mike Rosen was asked to get an update on the status of the liquor license transfer that WCI is managing.

I. NEW BUSINESS

There were no New Business items to come before the Board.

J. ENGINEERING

There was no engineering update at this time.

K. ADMINISTRATIVE MATTERS

There were no Administrative Matters to come before the Board.

L. BOARD MEMBER COMMENTS

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(RECONVENED FROM August 20, 2012) AUGUST 27, 2012

A motion was made by Mr. Craychee, seconded by Mr. Turner and unanimously passed to adjourn the Regular Board Meeting at 3:50 p.m. Upon being put to a vote, the motion carried unanimously.

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