MINUTES OF MEETING
DUNES COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Dunes Community Development District was held Friday, December 12, 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
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	GMS
Chris Prusinowski	Roper Townsend Sutphen
Joseph Layman	Court Reporter

The following is a summary of the discussions and actions taken at the December 12, 2025 meeting.

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

SECOND ORDER OF BUSINESS	Attorney-Client Session
At this time, the Board entered an attorney-client session, which was closed to the public per Section 286.011(8), Florida Statutes. Upon reconvening, the following action was taken.

On MOTION by Mr. DeGovanni seconded by Mr. Porter with all in favor offering a settlement of $40,000 for Flagler County Circuit Case No. 2024-CA 000090 Kevin Jordan v. Dunes Community Development District was approved with the Chairman, counsel and

Preferred Governmental Trust insurance company given the authority to negotiate up to the statutory limits.

THIRD ORDER OF BUSINESS	Approval of Minutes
November 14, 2025 Meeting

On MOTION by Mr. White seconded by Mr. DeGovanni with all in favor the November 14, 2025 meeting minutes were approved as presented.

FOURTH ORDER OF BUSINESS	Audience Comments
There being none, the next item followed.
FIFTH ORDER OF BUSINESS	Reports and Discussion Items Old Business
Mr. Chiumento was to formally notice the European Village that the DCDD would be installing permanent fence on the property that the CDD owns and that the European Village will need to obtain egress/ingress routes for their parking lot.
The letter that was sent to the European Village was provided to the Board for their review. European Village was given 60 days to pay, which would be by February 4th. The Board discussed various parking lot shut-off scenarios and locations.
Mr. Peugh informed the Board that a license was given to a property owned by the Golden Lion owners years ago for access purposes. That property is adjacent to the DCDD property where the City of Palm Coast maintains the park through an Interlocal agreement between the DCDD and the COPC. This propertyhas since been sold to the county and the county plans to give the property to the city to be turned into a park. At some point another easement will likely need to be given to the city for similar access purposes.
Mr. Ponitz was to review the Hammock Beach Circle landscape plan, drainage easement considerations and alternating Crepe Myrtles in lieu of Sable Palms.
The field review determined they were compliant.

Mr. Peugh was to notify both reserve study proposers that the DCDD is not pursuing a reserve study at this time.
This was done.
Discussion of Health Insurance
Mr. Peugh stated that the total cost of health insurance is up 15% to $256,350 to maintain the current coverage and to also maintain the $750 employer match on the flexible spending account.

On MOTION by Mr. DeGovanni seconded by Mr. Porter with all in favor the health insurance coverage was approved as presented.

Consideration of Responses to Request for Proposals for General Engineering Services
Mr. Peugh presented the list of firms that responded to the request for proposals and asked the Board to approve using all of the firms to give flexibility with future projects.

On MOTION by Mr. DeGovanni seconded by Mr. White with all in favor accepting all engineering firms was approved.

Discussion of Golf Tournament at Hammock Beach
The golf tournament will take place from October 5, 2026 through October 11, 2026. This item will be kept on the agenda to provide any updates.

Discussion of Casa Bella Fountain
The fountain in the Casa Bella community has been down for weeks, and the Owner’s Association has asked the District to repair it. To Mr. Peugh’s knowledge, the District has never maintained the fountain in the past. Mr. Peugh asked the Board if they were in favor of funding the repair.
The Board’s consensus was to maintain the position that the District is not responsible for maintenance of the Casa Bella fountain and provide the contact information for the company that provides maintenance for the DCDD to the Casa Bella neighborhood association.
This was done.
Discussion of Stormwater Utility

Mr. Peugh reported that the catch basin in Island Estates was on the schedule to be raised on December 15th for a total of $5,150. Solutions are being sought to clean it if needed.

Discussion of Bridge Accident Mediation
There being no further discussion needed, the next item followed.

Discussion of European Village
There being no further discussion needed, the next item followed.

Discussion of Bridge / Intersection
The intersection project was determined to have reached Final Completion on December 5th. Inspections on the thermoplastic, raised pavement markers and other items will be completed around the 60-day mark. There is a warranty on the road work. A light pole damaged by a trash truck should be replaced after the first of the year.

SIXTH ORDER OF BUSINESS	Staff Reports Attorney
Mr. Chiumento reported that he is working on the Oasis turnover.

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

Manager
Bridge Report
Mr. Peugh reported the following data:
Vehicle trips were down 5%, and revenue was down 15% from November of 2025.
There are almost 30,000 accounts.
There are almost 18,000 web users.
There were $30,287 in credit card transactions.
There were 258 new bridge pass accounts added.

Miscellaneous Items
Mr. Peugh stated that he attended a conference recently and the two major discussion points were regulating PFAS chemicals and advanced wastewater treatment. The District tests every year for PFAS and RO removes the PFAS, although Mr. Peugh warned both projects will increase expenses and the cost of water.
Next, Mr. Peugh reported there was a barrier crash at the District’s Toll Facility which would be submitted to the individual’s insurance company.
Next, Mr. Peugh reported there was a reclaimed line on Hammock Dunes Parkway near the intersection with Hammock Beach Circle that ruptured previously and may have undermined the pavement and base in this section of roadway.. The road will be shut down at a later date to determine the scope of work necessary for pavement repairs.

Additional Budget Items Report
Included on the additional budget items report were an equalization pump in the amount of
$16,000, a spare rotating assembly and motor for the equalization basin in the amount of $20,500, repaving of toll booth lane one in the amount of $30,000 and a spare VFD for the reclaimed pump system in the amount of $10,000.

SEVENTH ORDER OF BUSINESS	Supervisors’   Requests   and   Audience
Comments
Mr. Porter stated that he would be working with a company that will assist in finding mitigation money and filling out any necessary paperwork to support applicable District capital projects. There was no objection from the other board members.

Follow Up-Items
Board requested staff to erect a sign in European Village parking area noticing public of pending District actions concerning additional fencing to impact parking lot access to include a statement for non-payment of lease fees and not providing Insurance.
Board recommended that European Village be given the option to pay the $35,000 or additional recent fence rental costs and attorney fees realized, approximately $5,000, to be added to $30,000 amount.

EIGHTH ORDER OF BUSINESS	Financial Reports
Balance Sheet & Income Statement
Approval of Check Register
Copies of the financial statements as of October 31, 2025 were included in the agenda package for the Board’s review along with a copy of the check register totaling $1,353,133.25.

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

NINTH ORDER OF BUSINESS	Next Scheduled Meeting: January 9, 2026 at
9:30 a.m. at the Dunes Administrative Office, 101 Jungle Hut Road, Palm Coast, Florida

TENTH ORDER OF BUSINESS	Adjournment

On MOTION by Mr. Crahan seconded by Mr. Porter with all in favor the meeting was adjourned.

Secretary/Assistant Secretary	Chairman/Vice Chairman