MINUTES OF MEETING
DUNES COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Dunes Community Development District was held Friday, October 10, 2025, at 9:30 a.m. at the Dunes Administrative Office, 101 Jungle Hut Road, Palm Coast, Florida.

Present and constituting a quorum were:

Gary Crahan	Chairman
George DeGovanni	Vice Chairman
Rich DeMatteis	Treasurer
Kevin Porter	Assistant Secretary
Bill White	Assistant Secretary

Also present were:

Greg Peugh	District Manager
Darrin Mossing	District Representative
Michael Chiumento	District Counsel
Dave Ponitz	District Utilities Manager
Daniel Harvey	Assessment Roll Administrator
Richard Hamilton	Resident

The following is a summary of the discussions and actions taken at the October 10, 2025 meeting.

FIRST ORDER OF BUSINESS	Roll Call
Mr. Mossing called the meeting to order at 9:30 a.m.

SECOND ORDER OF BUSINESS	Approval of Minutes
September 12, 2025 Meeting

On MOTION by Mr. DeGovanni seconded by Mr. DeMatteis with all in favor the September 12, 2025 meeting minutes were approved as presented.

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

FOURTH ORDER OF BUSINESS	Reports and Discussion Items Discussion of Investments
Mr. Peugh stated that the interest rates for the enhanced savings program have been lowered to 3.75%, so the Board will need to decide if they want to move any money to CDs or other accounts during the next month’s meeting.

Old Business
The Board had inquired about the method of notice required to be given to pedestrians for the new traffic pattern once the intersection project is complete.
PCMS boards will be used to warn of the new traffic pattern. Construction will be done overnight with one lane closure.
Mr. DeMatteis inquired about the paving sequence on the lanes and shoulder approaching the bridge.
Asphalt will be placed all the way up to the curb once the asphalt base and structural lifts are in place. The shoulder will be paved during the final lift. A structural asphalt lift all the way though the shoulder would be inefficient and costly.
Mr. Porter inquired about the criteria as to when the traffic signal will be installed.
The traffic will be monitored through the spring and if it is backing up, traffic engineers will be asked to review the traffic levels, and the Board can decide if they would like to install a signal.
Mr. Crahan asked if money has been set aside for traffic signals. Mr. Peugh responded it has not. The earliest the signals would be installed is 2027 and the project is estimated to cost a little over $2 million.
The memorandum regarding Mala Compra was shared with the Ocean Hammock Property Owner’s Association and Flagler County as directed by the Board.
Mr. DeMatteis inquired whether staff had prepared a revenue forecasting for the new 33 lot subdivision.
A copy of the forecast was provided to the Board.

The District goals and objectives will be posted to the website as requested following the discussion on today’s agenda.

Discussion of Stormwater Utility
Mr. Peugh stated that a while back, District Counsel was trying to get documentation stating that the pond located off Kingfisher was owned by the District as the property appraiser’s website incorrectly listed another property owner. There is an area around the pond that is eroding and a nearby homeowner is not happy with how it looks. The homeowner has been sent the position memorandum that states the District will not repair any lake banks. She was also informed she could install a sea wall and was provided an example of the license agreement process the District employs for addressing these types of requests.
The Board’s consensus was to maintain the position that the District is not responsible for the lake banks as stated in the Ocean Hammock covenants.

Discussion of Bridge Accident Mediation
Mr. Peugh informed the board that depositions have been postponed. Mediation is still scheduled for November 4th.

Discussion of the Fiscal Year 2025 Goals & Objectives
Mr. Peugh presented the goals and objectives previously approved for fiscal year 2025. Mr. Mossing added that after the form is marked complete, the goals and objectives will be posted to the District’s website.
Mr. Peugh will send the Board members more detail on how each goal and objective was achieved as requested by Mr. Crahan.

On MOTION by Mr. DeGovanni seconded by Mr. DeMatteis with all in favor declaring the fiscal year 2025 goals and objectives complete was approved.

FIFTH ORDER OF BUSINESS	Staff Reports Attorney

Mr. Chiumento reported that his firm is working with staff on the easement dedications and property rights on the Oasis plan for the drainage easements along with acceptance of water and sewer improvements and transfer of ownership.
Mr. Peugh stated that a bill of sale would be helpful.
Mr. Chiumento responded that his firm has a package that a developer would go through that has to be certified by their engineer to the District and it contains a bill of sale, so he will put that together.
Next, Mr. Peugh informed the Board that European Village sent a letter to the District along with a check for partial payment for the license agreement. The District responded that the check was not accepted and European Village is now in default. He suggested putting barrier walls or towing signs up in the parking areas owned by the District. Mr. Chiumento also suggested filing for a termination of access easements. The Board agreed to put up temporary fencing at this point.

Engineer’s Report
A copy of the engineer’s report was included in the agenda package for the Board’s review.

Public Facilities Report
Mr. Peugh stated that the public facilities report would be submitted to the county. Mr. Ponitz noted that most all the five-year FDEP plant operating permits were renewed this past year. Additionally, the Consumptive Use Permit issued by the St. Johns River Water Management District was successfully renewed with a 30-year duration through 2055.

On MOTION by Mr. DeGovanni seconded by Mr. DeMatteis with all in favor the public facilities report was accepted.

Manager
Bridge Report
Mr. Peugh reported the following data:
Vehicle trips were up 1%, and revenue was up 25% from September of 2025.
Approximately $2.6 million was collected during the fiscal year, which is $96,000 less than projected.

There are a little over 30,000 accounts.
There are 17,750 web users.
There were $29,430 in credit card transactions.
There were 280 new bridge pass accounts added.

Miscellaneous Items
Mr. Peugh met with the HDOA to discuss easement needs for the future traffic signals, and they seem to be open to it.
The paving just south of the Ocean Hammock golf course was completed.
One tree will need to be removed, with one possibly needing to be replaced. Mr. Peugh will provide pictures of the area to see if the Board prefers to replace the tree, or let the other trees fill in.
The landscaping company that bought out the previous vendor is not doing a satisfactory job. Mr. Ponitz will be preparing an updated scope of work for landscape maintenance services. Upon completion, a request for proposals for landscape maintenance services will be advertised. Mr. Peugh cautioned the fees will likely go up with a new vendor.
Mr. Peugh reported there are a few projects the county has scheduled including paving Jungle Hut Road in 2027 and installing a box culvert for the Mala Compra ditch project in addition to widening and lowering the ditch.
Mr. Peugh has been researching the origin of the golf course rates versus residential rates. In speaking with Daniel Baker, he believes the golf course rate change occurred because of the nature of it being a bulk service delivery and the fact that the District is not tasked with maintaining any portion of the golf course irrigation systems. A study may need to be done to determine what is equitable across both golf courses. He will provide more information for further discussion at a future meeting.
Lastly, Mr. Peugh stated that he would bring two proposals for preparation of a capital reserve study to the next meeting for the Board’s consideration.

Additional Budget Items Report
The pavement repairs approved earlier in the meeting was added to the additional budget items report in the amount of $28,885.

SIXTH ORDER OF BUSINESS	Supervisors’	Requests	and	Audience
Comments
There being none, the next item followed.

Follow Up-Items
Mr. Ponitz to prepare response to 12-16 Kingfisher request for Board consideration of lake bank stabilization. Completed.
Mr. Peugh to install temporary fence to protect DCDD property under the Bridge. Ongoing
Mr. Peugh to provide an analysis of the Golf Courses Usage. Completed.
Mr. Peugh to provide to the Board the description of how the Goals and Objectives were accomplished. Completed.
Mr. Chiumento to provide transfer of ownership examples for Oasis Development Utilities.
Mr. Peugh to investigate a temporary Traffic signal for the 4 way stop.

SEVENTH ORDER OF BUSINESS	Financial Reports
Balance Sheet & Income Statement
Assessment Receipts Schedule
Approval of Check Register
Copies of the financial statements as of August 31, 2025 were included in the agenda package for the Board’s review along with a copy of the check register totaling $500,154.85.

On MOTION by Mr. DeGovanni seconded by Mr. White with all in favor the check register was approved.

EIGHTH ORDER OF BUSINESS	Next Scheduled Meeting: November 14, 2025
at 9:30 a.m. at the Dunes Administrative Office, 101 Jungle Hut Road, Palm Coast, Florida

NINTH ORDER OF BUSINESS	Adjournment

On MOTION by Mr. DeMatteis seconded by Mr. DeGovanni with all in favor the meeting was adjourned.

Secretary/Assistant Secretary	Chairman/Vice Chairman