MINUTES OF MEETING TESORO COMMUNITY DEVELOPMENT DISTRICT

The regular

meeting

of

the

Board

of

Supervisors

of

the Tesoro Community Development

District

was

held Tuesday, May

29, 2018

at

10:00 a.m.

at

the Tesoro

Club,

3

rd

Floor, 2000 S.E.

Via Tesoro, Port St. Lucie, Florida.

Present and constituting

Sal Spano

Kathy Fialco

Everardo Ortiz

Hal Fenner

Also present were:

George Flint

William Capko

Brian Smith

Ed Rivera

a quorum were:

Chairman

Vice Chairman

Assistant Secretary

Treasurer by phone

District Manager

District Attorney

Field Manager

Tesoro Club/Castle Group

FIRST ORDER OF BUSINESS	Roll Call	

Mr.

Flint called the meeting to order and called the roll.

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

THIRD ORDER OF BUSINESS

Approval  of the Minutes

2017 Meeting

of

the August 22,

On MOTION by favor the minutes

Mr.	Spano  seconded		
			
of the August 22, 201 7		

by Ms. Fialco with all in meeting were approved.

FOURTH ORDER OF BUSINESS

Ratification	of  Agreement	with  Grau	&	
Associates, Inc. to Provide Auditing Services	
for Fiscal Year 2017			

May 29, 2018

TesoroCDD

Mr.

Flint stated next

is ratification

of

the agreement with Grau

&

Associates to provide

the annual  independent audit for Fiscal Year 2017.   You selected

Grau

& Associates as the

independent auditor previously and since you last

met

in August, to

be

able to get the audit

moving,

I executed the

agreement in November

and

I'm

asking the

Board

to ratify that action.

On	MOTION by Mr.	Spano	seconded by Ms.		
					
favor the agreement with Grau & Associates to		
Year 2017 audit was ratified.			

Fialco with all in perform the Fiscal

FIFTH ORDER OF BUSINESS	Consideration	of	Resolution2018-01		
					
	Approving  the  Proposed  Fiscal  Year  2019		
	Budget and Setting a Public Hearing		

date,

Mr. place

Flint stated and time of

next is Resolution 2018-01 approving a proposed budget and setting a the public hearing for its final adoption. We are recommending August

28, 2018 at	10:00 a.m. in this location for the public hearing.  Exhibit A to the resolution is the		
			
proposed											
budget and it is not binding on the Board, but you do have a statutory requirement that		
you approve a proposed	budget by June 15	th	•	The		

									final budget would be adopted in August.		
Mr.	Spano stated we used almost $112,000 in surplus funds for this year and we are		
			
maintaining  the  same	level  of	assessment	of	$40.69  for  the  developed  lots  and  tracts  and		

undeveloped property $30.52.							
	On	MOTION  by	Mr.  Spano		seconded  by Ms.  Fialco with all in		
							
	favor Resolution 2018-01 approving the proposed Fiscal Year 2019		
	budget and setting the public hearing for August 28, 2018 at 10:00		
	a.m. at the Tesoro Club was approved.		

Mr.

Flint stated as long as the assessments

aren't

increasing you can make  whatever

changes	I don't foresee that the per		
you want to make between now and at the public hearing.			

unit amounts are going to go

up

so

we should be fine with this budget.

SIXTH ORDER OF BUSINESS	Staff Reports	
A.	Attorney		
There being none, the next item followed.	

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May

29,

2018

Tesoro CDD

B.

Engineer

	Mr.	Flint stated Mr.	Spano had	asked about the	status of the easements				
													
														that the Engineer		
was preparing as	part	of the tri-party											
							easement agreement that we have been working on for quite		
some  time  that	would  deal  with  the		encroachment	issue  at  least  on  an	interim  basis  and		

previously Toby was	supposed to be preparing those easements and did not do that and his		
							
services were	terminated.		The District Engineer indicated that they would be able to prepare		
							
those	and I	have been sending emails fairly regularly since the last meeting					
							
													asking the status of		
those easements.	The Chairman sent an	email to	me last week	asking the status and I forwarded		

that on to	Culpepper  Terpening and  Stef Mathis responded  saying  they have  compiled the		
				
majority of the west side	parcels that require drainage easements.  These parcels	are part of 12		

different plats, we should have a completed list within a		go				
												week, we will then		over them with		
																	
Lee Dobbins to confirm what we will need to have easements recorded.					
	They are still				I'm still								
				working on those,									
		Spano stated if they go more than	following up periodically with them on that.		
	Mr.		two weeks from the timetable they said they would		

be done I would like to schedule a conference call with you and Culpepper's				
														people so we get		
them moving and get this													
					out of our inbox.									

C.

Manager		
i.	Approval of	
		Check Register	

On the the

MOTION by Mr.	Spano seconded by	Mr. Ortiz with		
check register				
		16,				
						
from August		2017 through May		
total					
amount of $245,827.16	were approved.		

all 18,

in favor 3018 in

ii.	Balance Sheet and Income Statement

A copy

of

the balance sheet and income statements were included in the agenda package.

iii.

Presentation

of Number

of

Registered

Voters

-226

Mr. number hits election. If

Flint stated I	was  surprised to see that we had 226 registered voters.   Once that		
			
250 then			
this Board would begin to transition from Landowner elections to general		
you hit the 250 in 2019 then in November 2020 the first two seats will transition and		

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May 29, 2018	Tesoro CDD		
				
November	2022 two more seats and in 2024 the last seat will transition.   There is no action		
			
required on that it is just something we have to announce.			

iv.

Designation of November 27, 2018 as Landowners' Meeting Date

	Mr.	Flint				
			stated we are recommending November 27, 2018 as the landowners' meeting		
date.	Mr.	Spano, Ms. Fialco and Ms. Lordi's seats will be coming up for	election.  Two of the		

seats will be				
			four-year terms and one seat will be a 2-year term.  It is not a Board meeting we just		
need the landowner or someone he designates as the	proxyholder to be at that meeting.		

On MOTION by Mr. November 27, 2018 date.

Spano seconded by was designated as

Mr.
the

Ortiz with all in favor landowners' meeting

vi.	Field Manager's Report

Mr.	Smith stated the contractors are performing		
			
conservation area looks good.  We have gone through all		
clean and clear.  I understand there may be some localized		
that.			

well the site looks good overall, the the storm drains to make sure they are small backups and I will take a look at

Mr.		Spano	stated  before the  rain we  had  issues that we had water shortages  on the		
						
property and Port St. Lucie	started to cut us	off from	intake.  This is not a water system that is		

replenished.	If	they get short of water they	just put the weir up and we were done.  Did they		
												
discuss that with our people at all when they did that?										
Mr.	Flint stated																
				they didn't contact us.											
Mr.		Spano stated	I	want our people to have a relationship and when we have a contact		
								
provide  the	name	so  we  can  follow-up  with  them.   We		have	a	land  use  surface  water		
									
management permit that allows us	millions of gallons of	water, but it is for	naught if they turn		

																				
the																				
pumps off and put the	weir up and we are left with no	water	and	J.J. had to turn off pumps on		

the golf course because they were burnt and we				of it.					
										weren't aware						
Mr.	Flint	stated we have had relationships with them in the past, they have our contact		
					
information so I'm	surprised they	didn't contact us.										
																		
Mr.	Spano asked who is getting the monthly										
										field reports?  We	used to get a digital field		
																			
report and I don't get that anymore.												

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May 29, 2018

TesoroCDD

Mr.	Smith	
Mr.	Spano	
Mr.	Smith	
Mr.	Spano	
with Alan we lost	
Hal and Kathy get	

stated I get them from the contractors.					
stated your report when you come onsite and inspect				
	the landscaper.		
stated I have those and I can certainly	send those to you.			
				
stated we		think with the transition		
had a form that was a property report and I			
that.  I would like to see that reinstated and I		to see		
	would like			
			that Ed, myself,		
a copy.					

SEVENTH ORDER OF BUSINESS	Audience Comments	
There being none, the next item followed.	

EIGHTH

ORDER

OF

BUSINESS

Supervisor's Requests

	Mr.	Spano									
			stated we have rolled over the major contracts for two years.  I think it is time		
to bid them again.										
	Mr.	Flint sated if the thought is	you just don't want to extend them another year you		
										
would like to bid them we can do that.						
		On	MOTION by	Mr.  Spano	seconded by Ms. Fialco with all in		
							
		favor  staff  was  authorized  to  bid  the  upland  buffer  and  lake		
		maintenance contracts.						
	Mr.	Flint stated								
				the way we set the bids up in the past we will follow the same practice		
where you have criteria to						of		
				evaluate the responses			
										which price is one component.  You look at		
experience,	financial	viability	of the	company,	their  familiarity  with  the  project  and  other		

criteria.												
Mr.	Spano stated you							
					may know other contractors in the area		
										providing the same type of		
service.	That is one	of the	things that we look to you as the management company to give us		

some input.											
Mr.	Flint stated we								
				will reach out to our environmental consultant also and ask them for		
any recommendations.  Lake maintenance is			
									going to be the		
										big issue because Native Lands was		
the contractor then we switched and ended up switching back.		
Mr. Spano	stated it doesn't mean we are going to change anybody.		

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May 29, 2018	Tesoro CDD		

On MOTION by favor the meeting

Mr. Spano adjourned at

seconded by 10: 19 a.m.

Ms. Fialco

with

all  in

Secretary/Assistant Secretary

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