Preston Cove Community Development District Meeting Agenda August 24, 2023 August 17, 2023 Board of Supervisors Preston Cove Community Development District Dear Board Members: The regular meeting of the Board of Supervisors of Preston Cove Community Development District will be held Thursday, August 24, 2023 at 9:00 AM at 8 Broadway, Suite 104, Kissimmee, Florida 34741. Following is the advance agenda for the meeting: 1. Roll Call 2. Public Comment Period 3. Approval of Minutes of the April 27, 2023 and August 9, 2023 Board of Supervisors Meetings 4. Public Hearing A. Consideration of Resolution 2023-05 Adopting the Fiscal Year 2024 Budget and Relating to the Annual Appropriations B. Consideration of Resolution 2023-10 Imposing Special Assessments and Certifying an Assessment Roll 5. Consideration of Fiscal Year 2024 Deficit Funding Agreement 6. Consideration of Resolution 2023-06 Appointing an Assistant Treasurer 7. Consideration of Resolution 2023-07 Re-Establishing Bank Account Signatories 8. Consideration of Resolution 2023-08 Ratifying Rescheduled Public Hearing 9. Consideration of Arbitrage Proposal AMTEC 10. Consideration of Resolution 2023-09 Authorizing the Use of Electronic Documents and Signatures 11. Staff Reports A. Attorney i. Presentation of Memo Regarding Ethics Training B. Engineer C. District Manager’s Report i. Balance Sheet and Income Statement ii. Ratification of Series 2022 Requisition #59 iii. Ratification of Funding Request #25-26 iv. Consideration of Funding Requests #27-29 v. Presentation of Number of Registered Voters: 0 vi. Approval of Fiscal Year 2024 Meeting Dates 12. Other Business 13. Supervisors Requests 14. Adjournment The balance of the agenda will be discussed at the meeting. In the meantime, if you should have any questions, please do not hesitate to contact me. Sincerely, Tricia Adams Tricia Adams District Manager CC: District Counsel District Engineer Enclosures MINUTES OF MEETING PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Preston Cove Community Development District was held Thursday, April 27, 2023 at 9:00 a.m. at 8 Broadway, Suite 104, Kissimmee, Florida. Present and constituting a quorum were: Shaman Foradi Chairperson Owais Khanani by phone Vice Chairperson Jeff Garno Assistant Secretary Maria Rust Assistant Secretary Also present were: George Flint District Manager Jay Lazarovich District Counsel Pete Glasscock District Engineer FIRST ORDER OF BUSINESS Roll Call Mr. Flint called the meeting to order. Three Board members were present in person constituting a quorum. SECOND ORDER OF BUSINESS Public Comment Period There were no members of the public present for the meeting. THIRD ORDER OF BUSINESS Approval of Minutes of the March 23, 2023 Board of Supervisors Meeting Mr. Flint presented the March 23, 2023 Board of Supervisor and Audit Committee meeting minutes and asked for any comments or corrections. The Board had no changes to the minutes. On MOTION by Mr. Foradi, seconded by Mr. Garno, with all in favor, the Minutes of the March 23, 2023 Board of Supervisors Meeting, were approved, as presented. FOURTH ORDER OF BUSINESS Consideration of Resolution 2023-04 Approving the Proposed Fiscal Year 2024 Budget and Setting a Public Hearing Mr. Flint stated that this resolution approves a proposed budget and sits a public hearing for its final adoption. The CDD is required to approve a proposed budget by June 30th of each year. The final budget would be considered at the public hearing. He stated that the budget can be changed as long as the proposed assessment levels are not going up as that would require some additional mailed notices, etc. but they can adjust the budget and reduce the per unit amount between now and the public hearing. He stated the July 27th meeting is recommended for the hearing in this location at 9:00 a.m. Mr. Flint noted that attached to the resolution is exhibit ‘A’ and this is the build out budget that they have been working with and now that the development has progressed, they will want to review this between now and the public hearing to make sure it does not need to be refined. He noted a portion of it is platted so it would be on the roll and a portion is unplatted so there is a total of 603 units either on roll or off roll. Depending on the development and timing of the second portion of the project, they may not want to assess the second part and may want to do that through a developer funding agreement. He noted the benefit of the funding agreement is they would only be paying the actual cost but if they direct assessed based on the build out budget then they would be assessed the amount based on the budget. He noted that is something that can be talked about between now and the public hearing. He stated that there is still flexibility to do all of that at this point and asked for any questions on the proposed budget. Mr. Khanani asked when the public hearing will be. Mr. Flint answered July 27th which is the regular July meeting. He noted there will be some communication between now and then on the timing of the assessments on the balance of your project. On MOTION by Mr. Garno, seconded by Ms. Rust, with all in favor, Resolution 2023-04 Approving the Proposed Fiscal Year 2024 Budget and Setting a Public Hearing for July 27, 2023 at 9:00 a.m., was approved. FIFTH ORDER OF BUSINESS Staff Reports A. Attorney Mr. Lazarovich stated that the District was served with a lawsuit from John M. Hall Company so they are currently reviewing that with their litigation department and going over their strategy. He noted aside from that, they are still working on the lift issue conveyance and will get with the engineer to get an evaluation of the land and then they should be able to wrap that up. B. Engineer Mr. Glasscock had nothing to report to the Board. C. District Manager’s Report i. Balance Sheet and Income Statement ii. Ratification of Funding Request #24 Mr. Flint presented the unaudited financials through March 31st. There is no action required by the Board. We are still operating under a funding agreement. He noted as of the end of March, there was $1,601 remaining in the capital project account so they will want to submit a requisition to draw the balance of that down but basically that construction acquisition account is depleted at this point. Mr. Flint stated that this was submitted to the developer under the Developer Funding Agreement. There is a credit on here as there was an invoice labeled as being Preston Cove but actually it ended up being for a different development so there is a credit of $3,150 on this funding request. He noted that there are Trustee fees which are annual fees for the Trustee. On MOTION by Mr. Garno, seconded by Mr. Foradi, with all in favor, Funding Request #24, was ratified. SIXTH ORDER OF BUSINESS Other Business There being no comments, the next item followed. SEVENTH ORDER OF BUSINESS Supervisors Requests There being no comments, the next item followed. EIGHTH ORDER OF BUSINESS Adjournment Mr. Flint adjourned the meeting. On MOTION by Mr. Garno, seconded by Mr. Foradi, with all in favor, the meeting was adjourned at 9:08 a.m. Secretary/Assistant Secretary Chairman/Vice Chairman MINUTES OF MEETING PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Preston Cove Community Development District was held Thursday, August 9, 2023 at 9:00 a.m. at 8 Broadway, Suite 104, Kissimmee, Florida. Present and constituting a quorum: Shaman Foradi Chairperson Jeff Garno Assistant Secretary Maria Rust Assistant Secretary Also present were: Tricia Adams District Manager, GMS Jay Lazarovich District Counsel, Latham Luna FIRST ORDER OF BUSINESS Roll Call Ms. Adams called the meeting to order. Three Board members were present in person constituting a quorum. SECOND ORDER OF BUSINESS Public Comment Period There were no members of the public present for the meeting. THIRD ORDER OF BUSINESS Presentation of Landowners’ Election Date: November 7, 2023 Ms. Adams noted that the Landowners’ election is scheduled for November 7, 2023 at 9:00 a.m. at the Hanson Walter offices. Included in the agenda packet are instructions for participation in the landowners’ election as well as a sample ballet. In order to memorialize the acceptance of presentation of the landowners’ election date she asked for a motion of approval. On MOTION by Mr. Garno, seconded by Mr. Foradi, with all in favor, the Landowners’ Election Date: November 7, 2023 at 9:00 a.m., was approved. FOURTH ORDER OF BUSINESS Other Business There being no comments, the next item followed. FIFTH ORDER OF BUSINESS Supervisors Requests There being no comments, the next item followed. SIXTH ORDER OF BUSINESS Adjournment Ms. Adams adjourned the meeting. On MOTION by Mr. Foradi, seconded by Mr. Garno, with all in favor, the meeting was adjourned at 9:08 a.m. Secretary/Assistant Secretary Chairman/Vice Chairman RESOLUTION 2023-05 THE ANNUAL APPROPRIATION RESOLUTION OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT (“DISTRICT”) RELATING TO THE ANNUAL APPROPRIATIONS AND ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2023, AND ENDING SEPTEMBER 30, 2024; AUTHORIZING BUDGET AMENDMENTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the District Manager has submitted to the Board of Supervisors (“Board”) of the Preston Cove Community Development District (“District”) proposed budget (“Proposed Budget”) for the fiscal year beginning October 1, 2023, and ending September 30, 2024 (“Fiscal Year 2024”) along with an explanatory and complete financial plan for each fund of the District, pursuant to the provisions of Section 190.008(2)(a), Florida Statutes; and WHEREAS, at least sixty (60) days prior to the adoption of the Proposed Budget, the District filed a copy of the Proposed Budget with the local governing authorities having jurisdiction over the area included in the District pursuant to the provisions of Section 190.008(2)(b), Florida Statutes; and WHEREAS, the Board set a public hearing thereon and caused notice of such public hearing to be given by publication pursuant to Section 190.008(2)(a), Florida Statutes; and WHEREAS, the District Manager posted the Proposed Budget on the District’s website at least two days before the public hearing; and WHEREAS, Section 190.008(2)(a), Florida Statutes, requires that, prior to October 1st of each year, the Board, by passage of the Annual Appropriation Resolution, shall adopt a budget for the ensuing fiscal year and appropriate such sums of money as the Board deems necessary to defray all expenditures of the District during the ensuing fiscal year; and WHEREAS, the District Manager has prepared a Proposed Budget, whereby the budget shall project the cash receipts and disbursements anticipated during a given time period, including reserves for contingencies for emergency or other unanticipated expenditures during the fiscal year. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT: SECTION 1. BUDGET a. The Board has reviewed the Proposed Budget, a copy of which is on file with the office of the District Manager and at the District’s Local Records Office, and hereby approves certain amendments thereto, as shown in Section 2 below. b. The Proposed Budget, attached hereto as Exhibit “A,” as amended by the Board, is hereby adopted in accordance with the provisions of Section 190.008(2)(a), Florida Statutes (“Adopted Budget”), and incorporated herein by reference; provided, however, that the comparative figures contained in the Adopted Budget may be subsequently revised as deemed necessary by the District Manager to reflect actual revenues and expenditures. c. The Adopted Budget, as amended, shall be maintained in the office of the District Manager and at the District’s Local Records Office and identified as “The Budget for the Preston Cove Community Development District for the Fiscal Year Ending September 30, 2024.” d. The Adopted Budget shall be posted by the District Manager on the District’s official website within thirty (30) days after adoption and shall remain on the website for at least 2 years. SECTION 2. APPROPRIATIONS There is hereby appropriated out of the revenues of the District for Fiscal Year 2024, the sum of $ to be raised by the levy of assessments and/or otherwise, which sum is deemed by the Board to be necessary to defray all expenditures of the District during said budget year, to be divided and appropriated in the following fashion: TOTAL GENERAL FUND FY24 $ _________ TOTAL ALL FUNDS FY24 $ _________ SECTION 3. BUDGET AMENDMENTS Pursuant to Section 189.016, Florida Statutes, the District at any time within Fiscal Year 2024 or within 60 days following the end of the Fiscal Year 2024 may amend its Adopted Budget for that fiscal year as follows: a. The Board may authorize an increase or decrease in line item appropriations within a fund by motion recorded in the minutes if the total appropriations of the fund do not increase. b. The District Manager or Treasurer may authorize an increase or decrease in line item appropriations within a fund if the total appropriations of the fund do not increase and if the aggregate change in the original appropriation item does not exceed $10,000 or 10% of the original appropriation. c. By resolution, the Board may increase any appropriation item and/or fund to reflect receipt of any additional unbudgeted monies and make the corresponding change to appropriations or the unappropriated balance. d. Any other budget amendments shall be adopted by resolution and consistent with Florida law. The District Manager or Treasurer must establish administrative procedures to ensure that any budget amendments are in compliance with this Section 3 and Section 189.016, Florida Statutes, among other applicable laws. Among other procedures, the District Manager or Treasurer must ensure that any amendments to budget under subparagraphs c. and d. above are posted on the District’s website within 5 days after adoption and remain on the website for at least 2 years. SECTION 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED THIS 24th DAY OF August, 2023. ATTEST: PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT Secretary/Assistant Secretary Chairperson, Board of Supervisors Exhibit A: Proposed Budget FY2024 RESOLUTION 2023-10 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT MAKING A DETERMINATION OF BENEFIT AND IMPOSING SPECIAL ASSESSMENTS FOR FISCAL YEAR 2023/2024; PROVIDING FOR THE COLLECTION AND ENFORCEMENT OF SPECIAL ASSESSMENTS; CERTIFYING AN ASSESSMENT ROLL; PROVIDING FOR AMENDMENTS TO THE ASSESSMENT ROLL; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Preston Cove Community Development District (“District”) is a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes, for the purpose of providing, operating and maintaining infrastructure improvements, facilities and services to the lands within the District; and WHEREAS, the District is located in Osceola County, Florida (“County”); and WHEREAS, the District has constructed or acquired various infrastructure improvements and provides certain services in accordance with the District’s adopted capital improvement plan and Chapter 190, Florida Statutes; and WHEREAS, the Board of Supervisors (“Board”) of the District hereby determines to undertake various operations and maintenance and other activities described in the District’s budget (“Adopted Budget”) for the fiscal year beginning October 1, 2023 and ending September 30, 2024 (“Fiscal Year 2023/2024”), attached hereto as Exhibit “A” and incorporated by reference herein; and WHEREAS, the District must obtain sufficient funds to provide for the operation and maintenance of the services and facilities provided by the District as described in the Adopted Budget; and WHEREAS, the provision of such services, facilities, and operations is a benefit to lands within the District; and WHEREAS, Chapter 190, Florida Statutes, provides that the District may impose special assessments on benefitted lands within the District; and WHEREAS, it is in the best interests of the District to proceed with the imposition of the special assessments for operations and maintenance in the amount set forth in the Adopted Budget; and WHEREAS, the District has previously levied an assessment for debt service, which the District desires to collect for Fiscal Year 2023/2024; and WHEREAS, Chapter 197, Florida Statutes, provides a mechanism pursuant to which such special assessments may be placed on the tax roll and collected by the local tax collector (“Uniform Method”), and the District has previously authorized the use of the Uniform Method by, among other things, entering into agreements with the Property Appraiser and Tax Collector of the County for that purpose; and WHEREAS, it is in the best interests of the District to adopt the Assessment Roll of the Preston Cove Community Development District (“Assessment Roll”) attached to this Resolution as Exhibit “B” and incorporated as a material part of this Resolution by this reference, and to certify the Assessment Roll to the County Tax Collector pursuant to the Uniform Method; and WHEREAS, it is in the best interests of the District to permit the District Manager to amend the Assessment Roll, certified to the County Tax Collector by this Resolution, as the Property Appraiser updates the property roll for the County, for such time as authorized by Florida law. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT: SECTION 1. INCORPORATION OF RECITALS AND AUTHORITY. The recitals stated above are true and correct and by this reference are incorporated by reference as a material part of this Resolution. The Resolution is adopted pursuant to the provisions of Florida Law, including Chapter 170, 190 and 197, Florida Statutes. SECTION 2. BENEFIT & ALLOCATION FINDINGS. The Board hereby finds and determines that the provision of the services, facilities, and operations as described in Exhibit “A” confers a special and peculiar benefit to the lands within the District, which benefit exceeds or equals the cost of the assessments. The allocation of the assessments to the specially benefitted lands, as shown in Exhibits “A” and “B,” is hereby found to be fair and reasonable. SECTION 3. ASSESSMENT IMPOSITION. Pursuant to Chapters 190 and 197, Florida Statutes, and using the procedures authorized by Florida law for the levy and collection of special assessments, a special assessment for operation and maintenance is hereby imposed and levied on benefitted lands within the District, and in accordance with Exhibits “A” and “B.” The lien of the special assessments for operations and maintenance imposed and levied by this Resolution shall be effective upon passage of this Resolution. Moreover, pursuant to Section 197.3632(4), Florida Statutes, the lien amount shall serve as the “maximum rate” authorized by law for operation and maintenance assessments. SECTION 4. COLLECTION. The collection of the operation and maintenance special assessments and previously levied debt service assessments shall be at the same time and in the same manner as County taxes in accordance with the Uniform Method, as indicated on Exhibits “A” and “B.” The decision to collect special assessments by any particular method – e.g., on the tax roll or by direct bill – does not mean that such method will be used to collect special assessments in future years, and the District reserves the right in its sole discretion to select collection methods in any given year, regardless of past practices. SECTION 5. ASSESSMENT ROLL. The Assessment Roll, attached to this Resolution as Exhibit “B,” is hereby certified to the County Tax Collector and shall be collected by the County Tax Collector in the same manner and time as County taxes. The proceeds therefrom shall be paid to the District. SECTION 6. ASSESSMENT ROLL AMENDMENT. The District Manager shall keep apprised of all updates made to the County property roll by the Property Appraiser after the date of this Resolution, and shall amend the Assessment Roll in accordance with any such updates, for such time as authorized by Florida law, to the County property roll. After any amendment of the Assessment Roll, the District Manager shall file the updates in the District records. SECTION 7. SEVERABILITY. The invalidity or unenforceability of any one or more provisions of this Resolution shall not affect the validity or enforceability of the remaining portions of this Resolution, or any part thereof. SECTION 8. EFFECTIVE DATE. This Resolution shall take effect upon the passage and adoption of this Resolution by the Board. PASSED AND ADOPTED this 24th day of August, 2023. ATTEST: PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT Secretary / Assistant Secretary Chair/Vice Chair, Board of Supervisors Exhibit A: Budget Exhibit B: Assessment Roll PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2024 GENERAL FUND BUDGET DEFICIT FUNDING AGREEMENT THIS PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2024 GENERAL FUND BUDGET DEFICIT FUNDING AGREEMENT (the “Agreement”), effective as of the ___ day of _______, 2023 (the “Effective Date”), between: PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT, a local unit of special purpose government created under Chapter 190, Florida Statutes, whose mailing address is 219 E. Livingston Street, Orlando, Florida 32801 (the “District”); ELEVATION PRESTON COVE LLC, a Florida limited liability company, whose mailing address is 189 South Orange Avenue, Suite 1550, Orlando, Florida 32801 (the “Developer”); and RECITALS WHEREAS, the District is a local unit of special-purpose government established by Ordinance No. 2021-54 by the Board of County Commissioners of Osceola County, Florida; and WHEREAS, the District, pursuant to Chapter 190, Florida Statutes, is authorized to levy such taxes, special assessments, fees and other charges as may be necessary in furtherance of the District’s activities and services; and WHEREAS, the District has adopted its general fund budget for its Fiscal Year 2024 operations and maintenance expenses in the amount of $_____________, which fiscal year commences on October 1, 2023, and concludes on September 30, 2024 (“Fiscal Year 2024 Budget”); and WHEREAS, the Fiscal Year 2024 Budget, which all parties recognize may be amended from time to time in the sole discretion of the District, subject to the rights set forth in Section 1 herein, is attached hereto and incorporated herein by reference as Exhibit “A”; and WHEREAS, the District has budgeted $________________, for the Fiscal Year 2024 Budget, which is to be funded by the levy of assessments on benefited parcels; and WHEREAS, the Developer presently owns and/or is developing real property described in Exhibit “B”, attached hereto and incorporated herein, (the “Developer Property”) within the District, which property will benefit from the timely construction and acquisition of the District’s facilities, activities and services and from the continued operations of the District; and WHEREAS, the Developer has informed the District that there may be additional improvements resulting in additional operation and/or maintenance costs during Fiscal Year 2024 that are not accounted for in the Fiscal Year 2024 Budget; and WHEREAS, the assessments imposed by the District upon the benefited lands to fund the Fiscal Year 2024 Budget may result in a deficit in revenues received by the District in the event additional improvements or field activities are required during Fiscal Year 2024; and WHEREAS, the Developer has requested, and the District has agreed that the District shall not levy operation and maintenance assessments in excess of $___________ to fund the Fiscal Year 2024 Budget and instead allow Developer to fund any monies needed in excess of the $___________ levied to fund the current amounts provided in the Fiscal Year 2024 Budget. NOW THEREFORE, based upon good and valuable consideration and the mutual covenants of the parties, the receipt of which and sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: 1. RECITALS. The foregoing recitals are true and correct and are incorporated herein by this reference. 2. FUNDING. Developer agrees to pay the District’s actual Fiscal Year 2024 Budget expenses for Fiscal Year 2024, to the extent such expenses exceed the special assessments levied and collected by the District for the Fiscal Year 2024 Budget, within thirty (30) days of written request by the District. The funds shall be placed in the District’s general checking account. Developer’s payment of funds pursuant to this Agreement in no way impacts Developer’s obligation to pay assessments on land it owns within the District. In no respect shall the foregoing in any way affect the District’s ability to levy special assessments upon the property within the District, including the Developer Property, in accordance with Florida law to provide funds for any unfunded expenditures whether such expenditures are the result of an amendment to the District’s Fiscal Year 2024 Budget or otherwise. 3. ALTERNATIVE METHODS OF COLLECTION. In the event Developer fails to make payments due to the District pursuant to this Agreement, and the District first provides the Developer with written notice at the address identified in Section 5 of this Agreement of the delinquency and such delinquency is not cured within five (5) business days of the notice, then the District shall have the following remedies: a. The District shall have the right to file a continuing lien upon the Developer Property for all payments due and owing under the terms of this Agreement and for interest thereon, and for reasonable attorneys' fees, paralegals' fees, expenses and court costs incurred by the District incident to the collection of funds under this Agreement or for enforcement of this lien, and all sums advanced and paid by the District for taxes and payment on account of superior interests, liens and encumbrances in order to preserve and protect the District's lien. The lien shall be effective as of the date and time of the recording of a "Notice of Lien for FY 2023-2024 Budget" in the public records of Osceola County, Florida, stating among other things, the description of the real property and the amount due as of the recording of the Notice, and the existence of this Agreement. The District Manager, in its sole discretion, is hereby authorized by the District to file the Notice of Lien for FY 2023-2024 Budget on behalf of the District, without the need of further Board action authorizing or directing such filing. At the District Manager's direction, the District may also bring an action at law against the record title holder to the Developer Property to pay the amount due under this Agreement, or may foreclose the lien against the Property in any manner authorized by law. The District may partially release any filed lien for portions of the Property subject to a plat if and when Developer has demonstrated, in the District's sole discretion; such release will not materially impair the ability of the District to enforce the collection of funds hereunder. In the event the Developer sells any of the property subject to this Agreement after the execution of this Agreement, Developer's rights and obligations under this Agreement shall remain the same, provided however that the District shall only have the right to file a lien upon the remaining property owned by Developer. b. In the alternative or in addition to the collection method set forth in 3.a., above, the District may enforce the collection of funds due under this Agreement by action against the Developer in the appropriate judicial forum in and for Osceola County, Florida. The enforcement of the collection of funds in this manner shall be in the sole discretion of the District Manager on behalf of the District. In the event that any party is required to enforce this Agreement by court proceedings or otherwise, then the parties agree that the prevailing party shall be entitled to recover from the other all costs incurred, including reasonable attorneys' fees and costs for trial, alternative dispute resolution, or appellate proceedings. c. The District hereby finds that the activities, operations and services set out in Exhibit “A” would provide a special and peculiar benefit to the Developer Property, which benefit is determined in accordance with the District's adopted assessment methodology on file in the District's public records. Developer agrees that the activities, operations and services set forth in Exhibit A provide a special and peculiar benefit to the Developer Property equal to or in excess of the costs set out in Exhibit "A", as such may be amended by the District. Therefore, in the alternative or in addition to the other methods of collection set forth in this Agreement, the District, in its sole discretion, may choose to certify amounts due hereunder as a non-ad valorem assessment on the Developer's Property for collection either through the Uniform Method of Collection set forth in Chapter 197 or under any method of direct bill and collection authorized by Florida law. Such assessment, if imposed, may be certified on the next available tax roll of the Osceola County property appraiser. 4. RIGHT TO REIMBURSEMENT. The Developer agrees to fund any of the District’s Fiscal Year 2024 Budget expenses in excess of the Fiscal Year 2024 Budget assessments collected without any reimbursement by the District. 5. NOTICE. All notices, payments and other communications under this Agreement (“Notices”) shall be in writing and delivered, mailed by First Class Mail, postage prepaid, or overnight delivery service, to the parties, as follows: If to District: Preston Cove Community Development District c/o Governmental Management Services – Central Florida, LLC 219 East Livingston Street, Orlando, Florida 32801 Attention: District Manager Copy to: Latham, Luna, Eden & Beaudine, LLP 201 S. Orange Avenue, Suite 1400 Orlando, Florida 32801 Attention: Jan Albanese Carpenter, District Counsel If to Developer: Elevation Preston Cove LLC 189 S. Orange Avenue, Suite 1550, Orlando, Florida 32801 Attention: Owais Khanani Except as otherwise provided in this Agreement, any Notice shall be deemed received upon actual delivery at the address set forth above, which may be evidenced by confirmation of delivery via overnight delivery service, United States postal service certified mail or by courier service. Notices delivered after 5:00 p.m. (at the place of delivery) or on a non-business day, shall be deemed received on the next business day. If any time for giving Notice contained in this Agreement would otherwise expire on a non-business day, the Notice period shall be extended to the next succeeding business day. Saturdays, Sundays, and legal holidays recognized by the United States government shall not be regarded as business days. Counsel for each party may deliver Notice on behalf of the respective party he/she represents. Any party or other person to whom Notices are to be sent or copied may notify the other parties and addressees of any change in name or address to which Notices shall be sent by providing the same on at least five (5) days written notice to the parties and addressees set forth herein. 6. AMENDMENT. This instrument shall constitute the final and complete expression of the agreement between the parties relating to the subject matter of this Agreement. Amendments to and waivers of the provisions contained in this Agreement may be made only by an instrument in writing which is executed by both of the parties hereto. 7. AUTHORITY. The execution of this Agreement has been duly authorized by the appropriate body or official of all parties hereto, each party has complied with all the requirements of law, and each party has full power and authority to comply with the terms and provisions of this instrument. 8. ASSIGNMENT. This Agreement may not be assigned, in whole or in part, by either party except upon the written consent of the other. Any purported assignment without such consent shall be void. 9. DEFAULT. A default by any party under this Agreement shall entitle all others to all remedies available at law or in equity, which shall include, but not be limited to, the right of damages, injunctive relief and specific performance and specifically including the ability of the District to enforce any and all payment obligations under this Agreement through the imposition and enforcement of a contractual or other lien on property owned by the Developer. 10. ATTORNEYS’ FEES. In the event that either party is required to enforce this Agreement by court proceedings or otherwise, then the parties agree that the prevailing party shall be entitled to recover from the other all costs incurred, including reasonable attorneys' fees and costs for trial, alternative dispute resolution, or appellate proceedings. 11. THIRD PARTY BENEFICIARIES. This Agreement is solely for the benefit of the parties hereto and no right or cause of action shall accrue upon or by reason of, to or for the benefit of any third party not a formal party to this Agreement other than to successor and assigns of the parties as provided herein. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person or corporation other than the Parties any right, remedy, or claim under or by reason of this Agreement or any of the provisions or conditions of this Agreement; all of the provisions, representations, covenants, and conditions contained in this Agreement shall inure to the sole benefit of and shall be binding upon the parties and their respective representatives, successors, and assigns. In the event the Developer sells or otherwise disposes of its business or of all or substantially all of its assets relating to improvements, work product, or lands within the District, the Developer shall continue to be bound by the terms of this Agreement and additionally shall expressly require that the purchaser agree to be bound by the terms of this Agreement. 12. APPLICABLE LAW AND VENUE. This Agreement and the provisions contained herein shall be construed, interpreted and controlled according to the laws of the State of Florida. Each party consents that the venue for any litigation arising out of or related to this Agreement shall be in Osceola County, Florida. 13. EFFECTIVE DATE. This Agreement shall be effective after execution by all of the parties hereto. 14. PUBLIC RECORDS. The parties understand and agree that all documents of any kind provided to the District may be public records and treated as such in accordance with Florida law. 15. SEVERABILITY. The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of the remaining portions of this Agreement, or any part of this Agreement not held to be invalid or unenforceable. 16. LIMITATIONS ON GOVERNMENTAL LIABILITY. Nothing in this Agreement shall be deemed as a waiver of immunity or limit of liability of the District beyond any statutory limited waiver of immunity or limits of liability which may have been adopted by the Florida Legislature in Section 768.28, Florida Statutes, or other statute, and nothing in this Agreement shall inure to the benefit of any third party for the purpose of allowing any claim which would otherwise be barred under the Doctrine of Sovereign Immunity or by operation of law. 17. HEADINGS FOR CONVENIENCE ONLY. The descriptive headings in this Agreement are for convenience only and shall not control nor affect the meaning or construction of any of the provisions of this Agreement. 18. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original; however, all such counterparts together shall constitute but one and the same instrument. Signature pages and acknowledgment pages, if any, may be detached from the counterparts and attached to a single copy of this document physically to form one document. [SIGNATUTES FOLLOW ON NEXT PAGE] IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed affective as of the day and year first above written. ATTEST: DISTRICT: ______ PRESTON COVE COMMUNITY _______ DEVELOPMENT DISTRICT, Secretary/Asst. Secretary a Florida community development district By: Shaman Foradi Chairman, Board of Supervisors WITNESSES: DEVELOPER: Signed, sealed and delivered in the presence of: ELEVATION PRESTON COVE LLC, a Florida limited liability company ______ ______ By: ______ Print: Owais Khanani ______ Title: Manager Exhibit “A” Fiscal Year 2024-2024 General Fund Budget Exhibit “B” Developer Property Description RESOLUTION 2023-06 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT DESIGNATING A AN ASSISTANT TREASURER OF THE DISTRICT AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, Preston Cove Community Development District (hereinafter the “District”) is a local unit of special-purpose government created and existing pursuant to Chapter 190, Florida Statutes, being situated within Osceola County, Florida; and WHEREAS, the Board of Supervisors of the District desires to appoint an Assistant Treasurer. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT: SECTION 1. Darrin Mossing, Sr. is appointed Assistant Treasurer. SECTION 2. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 24th day of August 2023. ATTEST: PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT Secretary / Assistant Secretary Chairperson, Board of Supervisors RESOLUTION 2023-07 A RESOLUTION OF THE BOARD OF SUPERVISORS OF PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT APPOINTING THE DISTRICT’S APPOINTED TREASURER, ASSISTANT TREASURER, AND SECRETARY OF THE DISTRICT AS SIGNORS ON THE DISTRICT’S LOCAL BANK ACCOUNT AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Preston Cove Community Development District (the “District”) is a local unit of special-purpose government created and existing pursuant to Chapter 190, Florida Statutes, and situated entirely within Osceola County, Florida; and WHEREAS, the District’s Board of Supervisors desires to appoint the District’s appointed Treasurer, Assistant Treasurer, and Secretary as signors on the District’s local bank account. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT THAT: SECTION 1. The District’s appointed Treasurer, Assistant Treasurer, and Secretary shall be appointed as signors on the District’s local bank account. SECTION 2. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 24th day of August 2023. ATTEST: PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT Secretary / Assistant Secretary Chairperson, Board of Supervisors RESOLUTION 2023-08 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT RATIFYING THE ACTIONS OF THE DISTRICT MANAGER AND CHAIRMAN IN RESETTING AND NOTICING THE PUBLIC HEARING ON THE ADOPTION OF THE FISCAL YEAR 2024 BUDGET AND RELATING TO THE ANNUAL APPROPRIATIONS; AMENDING RESOLUTION 2023-04 TO SET THE PUBLIC HEARING THEREON; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Preston Cove Community Development District (the “District) is a local unit of special-purpose government duly organized and existing under the provisions of the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the “Act”); and WHEREAS, the Board of Supervisors of the District (“Board”) previously adopted Resolution 2023-04, approving a proposed budget for fiscal year 2024, setting the public hearing to adopt the fiscal year 2024 budget and relating to the annual appropriations, and setting the hearing thereon for July 27, 2023, at 9:00 a.m. at 8 Broadway, Suite 104, Kissimmee, Florida 34741; and WHEREAS, the Board was unable to achieve a quorum at the date and time of the public hearing, as scheduled, and the District Manager, in consultation with the Chairman, reset the public hearing to be held on August 24, 2023, at 9:00 a.m. at 8 Broadway, Suite 104, Kissimmee, Florida 34741, and has caused published notice to be provided in the manner prescribed in Florida law; and WHEREAS, the Board desires to ratify the District Manager and Chairman’s actions in resetting the public hearing and noticing the amended public hearing. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT AS FOLLOWS: 1. INCORPORATION OF RECITALS. The recitals stated above are true and correct and by this reference are incorporated by reference as a material part of this Resolution. 2. RATIFICATION OF RESETTING OF PUBLIC HEARING. The actions of the District Manager and Chairman in resetting the public hearing, the District Secretary in publishing and mailing the notice of the public hearing pursuant to Chapter 190, Florida Statutes, are hereby ratified. Resolution 2023-04 is hereby amended to reflect that the public hearing was reset to August 24, 2023, at 9:00 a.m. at 8 Broadway, Suite 104, Kissimmee, Florida 34741. 3. RESOLUTION 2023-04 OTHERWISE REMAINS IN FULL FORCE AND EFFECT. The Except as otherwise provided herein, all of the provisions of Resolution 2023-04 continue in full force and effect. 4. SEVERABILITY. If any section, paragraph, clause or provision of this Resolution shall be held to be invalid or ineffective for any reason, the remainder of this Resolution shall continue in full force and effect, it being expressly hereby found and declared that the remainder of this Resolution would have been adopted despite the invalidity or ineffectiveness of such section, paragraph, clause or provision. 5. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 24th day of August, 2023. PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT Chairperson /Vice Chairperson Board of Supervisors Attest: Secretary/Assistant Secretary RESOLUTION 2023-09 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT PROVIDING FOR AND AUTHORIZING THE USE OF ELECTRONIC DOCUMENTS AND SIGNATURES; ADOPTING AND IMPLEMENTING ELECTRONIC DOCUMENT CONTROL PROCESSES AND PROCEDURES; PROVIDING FOR SEVERABILTY AND AN EFFECTIVE DATE. WHEREAS, the Preston Cove Community Development District (the “District”) is a local unit of special purpose government created and existing pursuant to Chapter 190, Florida Statutes, and situated within Osceola County, Florida; and WHEREAS, Chapter 190, Florida Statutes, authorizes the District to construct, install, operate, and/or maintain systems and facilities for certain basic infrastructure; and WHEREAS, Chapter 190, Florida Statutes authorizes the District Board of Supervisors, to enter into various contracts for the purposes set forth therein; and WHEREAS, the District Board of Supervisors finds that it is the interest of the District and its residents to reduce waste, costs, and to enhance services; and WHEREAS, the District Board of Supervisors recognizes that the Florida Legislature, through the passage of The Electronic Signature Act of 1996, intended to, among other goals, facilitate economic development and efficient delivery of government services by means of reliable electronic messages and foster the development of electronic commerce though the use of electronic signatures to lend authenticity and integrity to writings in any electronic medium; and WHEREAS, the District Board of Supervisors wishes to further these goals through the use of electronic documents and signatures. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT: SECTION 1. INCORPORATION OF RECITALS. The recitals so stated are true and correct and by this reference are incorporated into and form a material part of this Resolution. SECTION 2. FORCE AND EFFECT OF ELECTRONIC DOCUMENTS AND SIGNATURES. Unless otherwise provided by law, electronic documents and signatures submitted to and on behalf of the District may be used for all purposes and shall have the same force and effect as printed documents and manual signatures. SECTION 3. AUTHORIZING UTILIZATION OF ELECTRONIC SIGNATURES AND DOCUMENTS. All contractors and personnel associated with the District are hereby authorized and encouraged to utilize electronic documents and signatures when reasonably practicable and as permitted by law. The District Manager is authorized and directed to obtain the provision of electronic document services or platforms offered by nationally recognized third party vendors that increase the efficiency of the District’s operations. SECTION 4. CONTROLS PROCESSES AND PROCEDURES. The District Board of Supervisors hereby authorizes and directs the District Manager to create control processes and procedures consistent with Florida Law to ensure adequate integrity, security, confidentiality, and auditability of all transactions conducted using electronic commerce. SECTION 5. SEVERABILITY. If any provision of this Resolution is held to be illegal or invalid, the other provisions shall remain in full force and effect. SECTION 6. EFFECTIVE DATE. This Resolution shall take effect upon its passage and shall remain in effect unless rescinded or repealed. PASSED AND ADOPTED this 24th day of August, 2023. ATTEST: PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT _____________________________ ____________________________________ Secretary/Assistant Secretary Chair/Vice Chair A picture containing text, sign Description automatically generated ATTORNEYS AT LAW ________________________________ MICHAEL J. BEAUDINE JAN ALBANESE CARPENTER DANIEL H. COULTOFF JENNIFER S. EDEN DOROTHY F. GREEN BRUCE D. KNAPP PETER G. LATHAM 201 SOUTH ORANGE AVENUE, SUITE 1400 ORLANDO, FLORIDA 32801 POST OFFICE BOX 3353 ORLANDO, FLORIDA 32802 TELEPHONE: (407) 481-5800 FACSIMILE: (407) 481-5801 WWW.LATHAMLUNA.COM JAY E. LAZAROVICH MARC L. LEVINE JUSTIN M. LUNA LORI T. MILVAIN BENJAMIN R. TAYLOR CHRISTINA Y. TAYLOR KRISTEN E. TRUCCO DANIEL A. VELASQUEZ To: CDD Board of Supervisors From: District Counsel (Jan Albanese Carpenter, Jay Lazarovich and Kristen Trucco) Re: New Law Requiring Ethics Training for Elected Officials and Other Legislative Updates Date: July 6, 2023 We are providing you with information about a new law which affects all CDD Board of Supervisors, as elected local officers of independent special districts. Beginning on January 1, 2024, Section 112.3142, Florida Statutes, requires each elected local officer of an independent special district and each person who is appointed to fill a vacancy for an unexpired term to complete four (4) hours of ethics training each calendar year. This ethics training must address, at a minimum: Section 8, Article II of the Florida Constitution; the Code of Ethics for Public Officers and Employees; and Florida’s public records and public meetings laws. A copy of Section 112.3142, Florida Statutes is attached to this document. The required ethics training may be satisfied by completion of a continuing legal education class or other continuing professional education class, seminar or presentation, so long as the required subject matter is covered. We strongly recommend that you keep track of all of the ethics training you complete since you will be required to self-certify on your annual Form 1 that you have completed the required ethics training for that year. There are ethics training resources available online at no cost to you. Specifically, FLC University is offering a virtual training on July 12, 2023, that will fulfill the four (4) hour requirement (https://register.gotowebinar.com/register/1108128928632648288), and Florida’s Commission on Ethics (the “Commission”) has provided several video links and other resources on their website to assist you in meeting this new requirement (https://ethics.state.fl.us/Training/Training.aspx). According to the Commission, training “hours” may be measured in 50-minute increments and a combination two hours of ethics training, one hour of open meetings training and one hour of public records training is sufficient to satisfy the four-hour requirement (See CEO 13-15 and CEO 13-24). We recommended that you complete this training requirement by July 1st each year in order to verify your compliance with the law on your Form 1 (Statement of Financial Interests). For new Supervisors, the Legislature intends for this ethics training to be completed as close as possible to the date of assuming office. For Supervisors elected or appointed on or before March 31st of any given year, the annual training is required to be completed on or before December 31st. For Supervisors assuming a new office after March 31st, ethics training is not required for the calendar year in which his/her term of office began. Other Legislative Updates: Concealed Carry: There was a change in the law regarding concealed carry of firearms; however, we would like to remind you that under Section 790.06 (12)(a)(7), Florida Statutes, open carry of a handgun, concealed weapons and firearms are still prohibited in meetings of the governing body of a special district. Technology Transparency: Beginning July 1, 2023, Section 112.23, Florida Statutes, prohibits any officer of a district from communicating with a social media platform to request removal of content or accounts from a social media platform, as well as initiating or maintaining any agreements or working relationships with a social media platform for the purpose of content moderation. We recommend any CDDs that maintain a Facebook page or any other social media account refrain from the prohibited conduct, unless it meets one of the exceptions as listed under Section 112.23(4), Florida Statutes, such as routine account management, including, but not limited to, the removal or revision of the governmental entity’s content or account or identification of accounts falsely posing as a governmental entity or officer; an attempt to remove content or an account that pertains to the commission of a crime or violation of Florida’s public records law; or an investigation or inquiry related to an effort to prevent imminent bodily harm, loss of life or property damage. Government and Corporate Activism: Beginning on July 1, 2023, Section 287.05701, Florida Statutes, prohibits requesting documentation or consideration of a vendor’s social, political or ideological interests and giving preference to a vendor based on the same, when considering government contracts. This section further requires any solicitation for the procurement of contractual services by the governing body of a special district to include a provision notifying vendors of the provisions of this section. Please feel free to contact the District Manager or our office should you have any questions on these new laws or their requirements. Thank you. BOARD OF SUPERVISORS MEETING DATES PRESTON COVE COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2024 The Board of Supervisors of the Preston Cove Community Development District will hold their regular meetings for Fiscal Year 2024 at the Offices of Hanson, Walter and Associates, Inc., 8 Broadway, Suite 104, Kissimmee, Florida 34741 at 9:00 a.m. on the Fourth Thursday of the month, indicated as follows: October 26, 2023 November 23, 2023 - HOLIDAY December 28, 2023 January 25, 2024 February 22, 2024 March 28, 2024 April 25, 2024 May 23, 2024 June 27, 2024 July 25, 2024 August 22, 2024 September 26, 2024 The meetings are open to the public and will be conducted in accordance with the provisions of Florida Law for Community Development Districts. A copy of the agenda for a particular meeting may be obtained from the District Manager at 219 E. Livingston Street, Orlando, FL 32801. A meeting may be continued to a date, time, and place to be specified on the record at that meeting. There may be occasions when one or more Supervisors may participate by telephone. Any person requiring special accommodations at these meetings because of a disability or physical impairment should contact the District Office at least forty-eight (48) hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1 or 1-800-955-8770, for aid in contacting the District Office. Each person who decides to appeal any action taken at these meetings is advised that person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based. George S. Flint Governmental Management Services – Central Florida, LLC District Manager