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03/18/2013 AgendaHeritage Greens Community Development District Board of Supervisors Ronald Parrott, Chairman George Coombs, Vice Chairman Marsha Coghlan, Assistant Secretary Jim Marshall, Assistant Secretary Henry Michaelson, Assistant Secretary Calvin Teague, District Manager Greg Urbancic, District Counsel James Carr, PE, District Engineer Regular Meeting Agenda - Revised Monday, March 18, 2013 — 6:00 p.m. 1. Roll Call 2. Approval of Agenda 3. Audience Comments 4. Approval of the Minutes of the February 18, 2013 Meeting 5. Old Business A. Gate and Security Considerations B. Consideration of Having the HGCA Maintain Certain Assets for the CDD i. Sidewalks and Wall ii. Irrigation and Landscaping 6. New Business A. Stormwater Maintenance Study B. Storm Sewer Cleaning Proposals C. Discussion on Committee Authority D. Distribution of Fiscal Year 2014 Budget for Discussion 7. Supervisor Committee Reports A. Landscaping and Beautification i. Update on Front Entrance Landscape Project 8. Manager's Report A. Follow -Up Items B. Acceptance of the Financial Audit for Fiscal Year 2012 C. Drainage and Preserves D. Approval of Financial Statements 9. Attorney's Report 10. Engineer's Report 11. Supervisors' Requests and /or Comments 12. Audience Comments 13. Adjournment Note: Next meeting is scheduled for Monday, April 15, 2013 at 6:00 p.m. District Office: 210 N. University Drive, Suite 702 Coral Springs, Florida 954 - 753 -5841 www.heritagogreenscdd.org Meeting Location: Heritage Greens Community Center 2215 Heritage Greens Drive Naples, Florida Naples Daily News Naples, FL 34110 Affidavit of Publication Naples Daily News --------------------+------------------------ HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT 210 N UNIVERSITY DR #702 CORAL SPRINGS FL 33071 REFERENCE: 027769 59698475 NOTICE OF MEETINGSHE State of Florida Counties of Collier and Lee lla Before the undersigned authority, p ersona, appeared Lynn Schneider, says that she serves the Order Entry Data Specialist, of the Nap lei; Daily News, a daily newspaper published at Na in Collier County, Florida: distributed in Co$.;, and Lee counties of Florida; that the attache; copy of advertising was published in said s °' newspaper on dates listed. Affiant further says that the said Naples News is a newspaper published at Naples, in ae ._ Collier County, Florida, and that the saidy newspaper has heretofore been continuously day and has been entered as second class mail{ matter at the post office in Naples, in said Collier County, Florida, for a period of 1 y next preceding the first publication of the a attached copy of advertisement; and affiant further says that he has neither paid nor promised any person, firm or corporation any ' discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. PUBLISHED ON: 09/17 AD SPACE: 56 LINE FILED ON: 09/17/12 --------------------- - - - -;- Signature of Affiant Sworn to and Subscribed Personally known by me '�- ------- - - - - -- ore ,m� this day Pf .�: ROSEMARY TURNER xv Com mission # EE 089303 8t= Expires June 29, 2015 [ WN 1 ' SWW TftTroy fain w U00 800 5961ote 2 0 /:; February 18, 2013 Heritage Greens C.D.D. 1 FOURTH ORDER OF BUSINESS Approval of the Minutes of the January 2 21, 2013 Meeting 3 Mr. Teague stated each Board member received a copy of the minutes of the January 21, 4 2013 meeting and requested any corrections, additions or deletions. 5 There not being any, the next item followed. 6 7 On MOTION by Mr. Parrott seconded by Mr. Marshall with all in g favor the minutes of the January 2l, 2013 meeting were approved. 9 10 FIFTH ORDER OF BUSINESS Old Business 11 A. Gate Maintenance Proposals 12 The following was discussed: 13 • The Board was provided with gate maintenance proposals from Action Security and 14 Advanced Door and Gate. 15 • Mr. Marshall presented the Board with an alternate option. He suggested removing 16 the swing gates and only using lift arms. Lift arms will need to be installed at the exit 17 gate, which will cost approximately $5,000. Using lift, arms will also require less is maintenance. 19 • The Board agreed with Mr. Marshall's suggestion. They would like to eliminate the 20 ' security guard contract and look into other options such as tele -entry, access codes or 21 clickers. 22 • An analysis will be prepared for the Board's review and presented at the March 23 meeting. Ll 24 + YV\ 25 B. Security Camera and Gate Discussion 26 Mr. Marshall provided an update on the new security camera and provided sample 27 pictures. 28 • The new experimental camera was installed. 29 • License plates cannot be identified from moving vehicles, but can be read from a 30 stopped vehicle. 31 . Two new spotlights were installed on top of the guardhouse for better lighting. 32 • Total costs were approximately $200. 33 • There was Board consensus to continue using this camera system. 34 Unapproved Minutes 2 March 14, 2013 To: Cal Teague, District Manager From: Gary Rawlings, Assistant District Manager Re: Heritage Greens — Cost Analysis of Redoing the Front Gate Entrance Objective The BOS is asking what is involved with redoing the Entrance gates to allow for residents and guests to allow themselves into the community but still maintain a secure community with Lift Arms and nightly patrols between 3 -5 AM. Cost Analysis Costs for this project are estimated as follows: • Front Crates at the • Add Long- Distance Service Entrance Barrier 500.00 $ • Entrance Lanes $2,500.00. ■ Remove Barrier Gates o Exit Lanes* ■ Equipment /Support Items $ 5,371.00 • Option I — Using 2 Lift Arms - • Option 2 — Using 1 Lift Arm and Bollards - $ 3,231.00 ■ Removing Barrier Gates (included above) * Attached Estimates include cost of Telephone Access which 1 have removed from the Bid Totals. Total Estimate for Unmanned Front Gates between $6,231.00 and $8,371.00 • Security Patrol o $15.00 /hr 365 days /yr between 3 -5AM $10,950.00 Additional costs might be incurred to comply with FL DOH regulations. The board had that issue analyzed in 2011 and the estimate was $5,850.00 Total Estimate of all above items between Annual Savings, o Cart Rental o Full Time Security o Contract o IIVAC o Utilities o Operating Supplies ■ Total Conclusion $23,031.00 and $25,171.00 $48,000.00 350.00 900.00 250.00 $ 1,500.00. 49.500.00 $ 51,000.00 Google Maps Ca_'' Page 1 of 1 ;;;;;the e details that are visible on the "Print" link next to the map. http: / /maps.google.com') 9/8/2 Estimate Up, Date Estimate # Upswung Corp. 3/14/2013 105286B P.O. Box 2713 Stateline, NV 89449 Name I Address Mr. Gary Rawlings Option 1 REVISED Project Description Qty Unit Price Total OPT 1. grawlings @severntrentms.com One Entrance Lane, One Lane Free Exit. Free Exit Device for Auto Exit Lane, Safety Device, Telephone Access Control - existing receiver and transmitters should be transferable. DK 112hp , 115V Barrier Operator - Standard Traffic 2 1,689.00 3,378.00T Continuous Duty Cycles With Boom Mounting kit/ 2 318.00 636.00T DK 12ft Aluminum Boom Rectangluar, stripped. LED Solar pin lights/ Boom Mounted OPTIONAL but 4 125.00 500.00T recommended. MIL Safety Edges/ lift 2 wire with mounting channel 2 279.00 558.00T AEG Telephone ° Ahcess"Controlle' -250 "tenants/ PC software I included/ keypad on face/ Dedicated Telephone line needed -with pedestal R &E Vehicle loop 4 x 8 Free exit . Saw cut entry. Includes 1 299.00 299.00T DK Detector 1 Channel TERMS: 20` %o Restock charge on returned items, no returns after 30 days and no refunds for shipping. All parts sales are final, no exchanges for damaged products and all Subtotal products must returned in their original packing to qualify for return. CHECK PACKAGE CONTENTS: ANY CLAIMS FOR MISSING PARTS MUST BE Sales Tax (0.01%) MADE WITHIN 3 DAYS FROM THE DAY THE, DELIVERY WAS MADE. WARNING All gate products are designed to be installed by licensed professiunals, and any installation must be inspected and approved by the local building authority. "I he 7� +�� pr.u•chaser agrees to these terns as a condition or sale and holds tlps,,�ung Corp harmless N for any injury or property damage. Phone # Fax # E -mail Web Site 775 - 588 -1475 775 -588 -1473 mikef @upswung.coan www.upswung,com Page 1 Name / Address Mr. Gary Rawlings Option I REVISED Description Phone conference Tech Support (Mon -Thurs gam to 2pm PST) for Rough -in & Connections FREE WITH PURCHASE Freight and UPS Ground -TBD WE ARE FACTORY AUTHORIZED DISTRIBUTORS FOR SALES AND SERVICE FOR ALL PRODUCTS WE SELL. DEAL ONLY WITH AN AUTHORIZED DISTRIBUTOR. Please contact Mike Furno for assistance with this estimate 1 -775 -588 -1475 ext 152 PAYMENT TERMS: Company Check (on Receipt), Wire Transfer(3 days), Visa/ MCI AMEX (immediately) THIS ESTIMATE GOOD 30 DAYS Gate opener products are intended to be installed by licensed qualified installers. Your local Building Dept may require permits/ inspections to ensure the safe operation of the products you have purchased. Upswung Corp assumes no responsible for installation and operation of products sold which we do not install. TERNIS: 20% Restock charge on retumed items, no returns after 30 days and no refunds for shipping. All parts sales are final, no exchanges for damaged products and all products must returned in their original packing to quality for return. CHECK PACKAGE CONTENTS, ANY CLAIMS POR MISSING PARTS MUST BE MADE WITI-111\1 3 DAYS FROM THE DAY TFIE. DELIVERY WAS MADE. WARNING: All gate products are designed to be installed by licensed professionals, and any installation must be inspected and approved by the local building authority. The purchaser agrees to these terms as a condition of sale and holds tJpswung Coil harmless for any injury or property damage. Phone # 775 - 588 -1475 Fax # 775 - 588 -1473 Email Estimate gag] Qty Unit Price 0.00 0.00 0.00 mikef @upswung,com Page 2 0.00 0.00 0.00 0.00 Subtotal Sales Tax (0.0 %) Total Web Site Project Total O.00T O.00T O.00T O.00T O.00T O.00T O.00T www.upswung.com $0.00 U 4 � Upswung Corp. P.O. Box 2713 Stateline, NV 89449 Name I Address Mr. Gary Rawlings Option 2 REVISED Estimate Date Estimate # 3/14/2013 105287B I Project I Description I _ Qty I Unit Price I Total 1. Opt 2. Two way, One Lane Barrier Operator With Bollard Lane extensions -Drive Overs. Free Exit Device for Auto Exit, Safety Device, Telephone Access Control - exisitng receiver and transmitters should be transferable DK 1 /2hp , 115V Barrier Operator - Standard Traffic Continuous Duty Cycles DK 12ft Aluminum Boom With Boom Mgunting-�citl Rectangluar, stripped. � � LED Solar pin lights/ Boom Mou ed OPTI,ONA ut recommended. MIL Safety Edges/ 11ft 2 wire with mounting channel AEG Telephone Access Controller/ 250 tenants/ PC software included/ keypad on face/ Dedicated Telephone line needed -with pedestal R &E Vehicle loop 4 x 8 Free exit. Saw cut entry. Includes DK Detector 1 Channel TERMS- 20% Restock charge on returned items, no returns after 30 days and no refunds for shipping. All parts sales are final, no exchanges For damaged products and all products must returned in their original packing to qualify for return. CHECK P.\CKAGE. CONTENTS: ANY CLAINTS FOR MISSING PARTS MiUS'l BE MADE. WITHIN 3 DAYS FROM THF. DAY THE DELIVERY WAS MADE. WARNING: All gate products are designed to be installed by licensed professionals, and any installation must he inspected and approved by the local building authority. The purchaser agrees to these terms as a condition ol'sale and holds Ups«t.tng Corp harmless for any injury or property damage. Phone # 775 - 588 -1475 Fax # 775 - 588-1473 E -mail mikef @upswung -corn Page 1 1 1,689.00 1,689.00T t 318.00 318.00T 2 125.00 250.00T 1 279.00 279.00T 1 299.00 299.00T I Web Site I www.upswung.com Up- Upswung Corp. P.O. Box 2713 Stateline, HIV 89449 Name / Address Estimate Date Estimate # 3/14/2013 105287B Mr. Gary Rawlings Option 2 REVISED Project Description Qty Unit Price Total Benol Drive ovef,u:Reme►va�be�,Bollard - 12ft�tun 2pm 0.00 O.00T Phone conference Tech Support (Mon -Thurs 9am to PST) for Rough -in & Connections FREE with purchase 0.00 0.00 FREIGHT and UPS Ground -TBD 0.00 O.00T WE ARE FACTORY AUTHORIZED DISTRIBUTORS FOR SALES AND SERVICE FOR ALL PRODUCTS WE SELL. DEAL ONLY WITH AN AUTHORIZED DISTRIBUTOR. 0.00 O.00T Please contact Mike Furno for assistance with this estimate 1- 775 - 588 -1475 ext 152 PAYMENT TERMS: Company Check (on Receipt), Wire 0.00 O.00T Transfer(3 days), Visa/ MCI AMEX (Immediately) 0.00 O.00T THIS ESTIMATE GOOD 30 DAYS 0.00 O.00T Gate opener products are intended to be installed by licensed qualified installers. Your local Building Dept may require permits/ inspections to ensure the safe operation of the products you have purchased. Upswung Corp assumes no responsible for installation and operation of products sold which we do not install. TERMS: 20% Restock charge on returned items, no returns after 30 days and no refunds for shipping. All parts sales are final, no exchanges for damaged products and all products must returned in their original packing to quality for return. CHECK PACKAGE CONTENTS: ANY CLAIMS FOR MISSING PARTS MUST BE MADE WITHIN 3 DAYS FROM TI-IF. DAY THE DELIVERY WAS MADE. WARNING: All gate products are designed to be installed by licensed protessionals. and any installation must be inspected and approved by the local building authority. The purchaser agrees to these tents as a condition of sale and holds Ups\iung Corp harmless for any injury or property damage. Phone # 775-588 -9475 Fax # 775 - 588 -1473 E-mail mikef @upswung.com Page 2 �, 3 iltiii V Subtotal Sales Tax (0.0 %) Total •��-, 3 � ._t`> zr �4;35n0 Web Site www.upswung.com OS/28/2011 08:48 FAX 19416378334 Dx Coustructioa ti L mw #. CVC OS9i0.i7, CBC Severn Trent Service Michelle Egan _._.... ArchitO& Notes: a.mmm� Wit Aereby A Budget Number only Proposal D.M. Construction Corp. P_0. Box 510487 puara Gorda, FL 33951 ph# (941) 639 -3666, Fax# (941) 637 -8334 Ptttxte: (z3s0 245 -7118 Job: LOC160n: Plans Date. 1) Sawn Cut, Remove, and haul Off 85 LF of 'IF" Curb z) Saw Cut, Remove, and Haul Ott 47 Sq. Yds. of Asphalt 3) RC -four 85 LF of •'F" Curb 4) Haul 32 Cubic Yards of Regular Fill 5) Grade Fill with Boa Blade Tractor 245 -7120 0001 Shwee 1948 9127/201 Paso. 1 of ! Total of Items 1- 5: $5,850.00 POLI.OWII+IO ►TUNS ARR Nt7r INA.IIflED IN TIiLS pnoposAL. AMyTMci 1,W SHOWN ON TM PROPOSAL. VALL BE EXM Cosuctbn Copds rw epmdble tbr, sad will aol 11 En9bwUiU& Ttst& Prnds & L*V" 10) DM VMWA, my anus io live after cleating sits, even if 2) Sod for Ushwdeld bwrka&& 3) k"* EMMOtm l 1) As- Bunts ne not inotaded la lba �roced pricy 4) Culvert. QVa then NOW 12) EXWJdve RC-Pm ft 5) Sdiateat saris, other item XWW 13) Any WhITOW •Cw " mA noted an ►titm wit be 6) Chaw of day. Stakoonn or Survey object to a dames order. 7) god or Seeding 14) If 3iU UxeWated tom sets Is ubsukable Fix back $Uia$, 2) Son T1600eel 9) Compaction of satanl Woaod: We wib prpof roil $� vas ti.ay. dw t win be an addboW OMP m WPOII AU for saeidill sad .wDow mtsttit * OIL Waddttieosl wok is wpirod to moat corapee6011- au& as. voter 15) Na respot j W for e>� a or >� e� work due tot, or NMI g ading. or mY odw p'Oead'°°, a will be extra. tp act ofGw. We propose hereby W Fvsniah material and labor • COMPift in saoordaaoa wo lbI • tlrr rc sum k his oasts and a teasoosble atlotrro'a fee flpRn In the event of say twIl w "in6 out efthis Qodr•et. do pravadmg parry g ttl recover no ww�n M" Late Was and casts. AU uu le" is pwaateed to be a spoekiod, Ail oak m he mnP in r wo to Omdard pastiest Any dh MdW Of AUNotinod protEa vwM ma uler anditgl dQViatioe 4rvan above specifmWons involving efattt costs will be aWOW4 Signature Jared Davn4 Trarstater only upon %IMM otdas, and vrill tie I . an extra cbwree over and above the acadaus or delays beyond -Buis p'opneW may be with drawn by a ifaot scV*W 30 dos esdnate, All aWeearmts cerdin6est span stt'UW our control. Owwr is m clay BtdldW ftk a Oar vrakw am within 30 dttys. Proposal oolyvelld for wu .., — --- -- -- OM Q,AQQpprauW10. Acceptance or Prop"al_ The shove prices, speei6est eas and ooadidons wo sat ? cad an' gietrripavc: hereby aoceptcd. You am etittwrimed la Owwwo the work us oodmd above. LO*4 will be made as oudinod above. O.A4 CdtabVdb" C A, 2010 nw�ai�••! .J Y "YS :.r""C Lva.Y .�^" imyl-i. _ .�.:.ryr "`�.. v%N � `.... r � �•�- _� 'iii,' F r � • �c x ,:z" spa,. �� " �,::i R f s,a >� .. �.� ,� � .sir` t� • �a,.�f' F."�i� � � � '�'�- � ' � ^�_ � � :. r ='_'' "` # rgry ♦,.. �1'�r�� 1 $ 8. µ,ms.. � °-�,�, QI - VA 1 Imagery Date UZW2012 26'16. Gated Cnmmurvties, Access Control, security consultant, Chris McGoe... http : / /www.crimedoctor.corWgated.htr Gated Comm-unities Access Control Issues by Chris E McGoey. CPP, CSP, CAM Perception of Security More and more people want to reside in gated residential communities. Because of this, gated residential communities and garden apartments across the country are being built at record rates. In the 1970s there were approximately 2000 gated communities nationwide. In the early 2000s, there were over 50,000 gated properties with more being built every year. That equates to about seven million households or 6% of the national total behind walls or fences. About four million of the total is in communities where access is controlled by gates, entry codes, key cards or security guards(1). Gated communities offer some benefits and some drawbacks depending whether you are a resident or in property management. I will discuss both sides of the issue in this article. All gated and fenced residential communities have several things in common. Gates and fences provide the perception of security, safety, and privacy. In affluent residential neighborhoods, privacy means exclusivity and therefore increased property values. Adding an attractive automatic entry gate system can easily add $50,000 or more to single family home values within some communities regardless of whether it has any effect on crime. Gates as an Amenity Large apartment properties often add gate systems as an amenity to attract new residents. Gated communities are desirable to most prospective residents and to most property managers because they can charge a premium for rent. The main purpose of a gate, on a low -crime property, is not to deter or prevent crime but to provide the perception of security and exclusivity. Let's face it, everyone wants to feel good about where they live and a gated community is like a private club where access privileges are required. Any real benefits of crime prevention are a plus. Still, other apartment communities add gate systems as a barrier to keep criminals off the property and away from rent paying residents. In this setting, the intention is to reduce crime and retain residents by erecting a significant barrier to unauthorized foot and vehicle traffic. Gates are often considered as a cheaper alternative to hiring and managing security guards. Gate installation companies promote this in their marketing and stress the added benefit of liability protection. That is not always sound advice. Gates can also be a barrier to emergency services like the police or I of 5 2/24/2013 6:07 Pb Gated Ccmmunities, Access Control, security consultant, Chris McGoe... http:/ /www.crtmecioctor.convgatea.ntn fire departments. It is extremely important to have a system in place that allows quick access to them. Most communities use a "Knox Box" key system but there are also universal keypad codes, and restricted radio frequency access. Check with your local police and Fire Marshall. Do Gates Reduce Crime? This is the most common question that is asked. The answer is always a qualified, yes. Fences and working gates definitely reduce unauthorized vehicle and foot traffic on a property especially late at night and early in the morning. For many properties, traffic reduction alone is enough to reduce much of the parking lot and street crime. Note my emphasis on "working" gates. Swinging gates in a volatile community will have problems being operational 24 -hours per day due to abuse and vandalism. The effectiveness of gates and fencing depends on the nature of the property and the management controls in place. Gates and fencing works best on a stable property with non - criminal, mature residents. If you manage a property that caters to college students it can be a nightmare to maintain an effective gate system. If you intend to install a gate system on a high -crime property that is full of criminal types, drug dealers, and gang members the gated system will be waste of money until you clear the bad element out. Formidable fencing and gates, by design, restrict access and therefore provide both a physical and psychological barrier for criminals. Good signage is necessary to announce that this is private property and to post your no trespassing policy. Sure, one can tailgate onto a property behind someone else but this requires effort and exposes the criminal to a potential witness. Criminals want to come onto an apartment property anonymously and blend into the community of strangers. Criminals like quick escape routes and don't want to become trapped behind fences or gates should they be discovered. Many criminals will bypass a gated community for one that is not gated simply because of the restricted access. Gated communities should not claim to be able to prevent all crimes. Gates and fences is just another tool to help a property manager fight crime. More tools are usually required to do the complete job. Support by the residents and management is required to maintain an effective gate system. Management needs to educate the residents how the properly use the gate system and how to report abuse and damage. Management needs to screen residents and enforce community rules to prevent criminal types from residing on the inside. Residents need to report or challenge unauthorized persons using the gates and not give out gate codes unnecessarily. Management needs to periodically change the master gate code to screen out former repair vendors, a zillion pizza delivery companies, and former residents. Video System Support Video surveillance systems work well in support of access control gates. A well - placed video camera can keep an eye on the gated entry areas 24 -hours a day 2/2412013 6:07 P1 2 of 5 Gated Co ntnunities, Access Control, security consultant, Chris McGoe... http:// www.crimectoctor.coni(gate(l.htr. and never blink once. Video cameras should be placed in such a manner to be able to identify the vehicle makes and license plates of anyone who approaches. This is a great deterrent to vandalism and is positive proof should a gate be damaged by a careless driver. Because they operate 24 -hours a day, a video camera must be protected from the weather and vandalism by a weatherproof housing. The video lens must adjust automatically to the changing lighting conditions for best picture quality. A well - placed sign should announce to all that they are under video surveillance. Of course to capture these images, a commercial grade time -lapse video recorder is required in a environmentally protective enclosure. Video systems can be integrated with the gate intercom system and allow homeowners to view who is at the gate seeking permission to enter. Technically, video signals from a gate on a west coast property can be monitored by a security firm on the east coast due to the advent of digital and broadband technologies. They can even carry on a conversation with the person desiring access and open the gate remotely for them. How Should Gates be Explained? There is a trend in the multi- housing industry not to use the word SECURITY when referring to pedestrian and vehicle gates. Gate systems have been called security gates, limited access gates, controlled access portals, and many others. The multi - housing industry erroneously believes that if it doesn't say that fences and access gates are for "security purposes" then it will be protected from civil liability. Nothing could be farther from the truth. I say, "If it looks like a duck, walks like a duck, and quacks like a duck, then it's probably a duck." Call them what you will but the function of fencing and gates will define their real purpose. The design is to keep unauthorized people out. There is nothing wrong with believing that having a formidable barrier around your property will help prevent crime...You just can't guarantee it. Which Gate Type is Best ? The best gate type depends on the purpose and property types. Swinging gates look the best and are selected more often for private single family residential communities. The downside is the cost and maintenance expense. Two gate operators are required to open each wing of each gate set, which doubles the expense and requires twice the maintenance. Swinging gates also get damaged more often as anxious drivers hit them as they enter the property with their cars. Swinging gates are a nightmare to maintain on a high- traffic apartment property filled with young people. Gates that slide horizontally are less attractive, but are cheaper to purchase and maintain. Only one gate operator is required and it has fewer vulnerable parts to break. When a car clips a sliding gate, the usual result is getting knocked off the track as opposed to bending or breaking a control arm or weld point. With any type of gate system, in- ground loop- detectors are required to 2/24/2013 6:07 Pl 3 of 5 Gated C ommunities, Access Control, security consultant, Chris McGoe... http: / /www.crimedoctor.com/gated.htc maintenance budget. The net financial effect may be a wash but the difference may be made up in resident retention, the reduction of crime, police calls for service, and property damage. I like gates... but I don't like the problems associated with them. You decide. (1) 2001 Census Bureau - American Housing Survey Gated Communities Access Control View Crime School Video Library Crime Free Association Training Conference Riverside, California July 1ri -17, 201a Books on Security Management and Liability • Premises Liability Litigation Book - -- NEW • Apartment Security Book • Nightclub Bar Security Book Los Angeles, California Feedback or Questions? (213) 537 -3505 Send E -Mail to Chris WHAT OUR LAWYERS MAKE US SAY: Disclaimer; These pages are written as a community service for those interested in the subjects of security, crime prevention, loss prevention, risk analysis, and liability issues. The reader understands that the author is not a lawyer, nor engaged in the practice of law, and is not rendering legal advice. Aegis Books, Inc. and its employees shall have no liability to any persons or entities with respect to any loss, liability or damage alleged to be caused by the application or reliance on information or opinions published on this website. Crime Doctor ® - Your Prescription for Security & Safety Copyright © 1996 -2013 - Aegis Books, Inc. - All Rights Reserved - 2/24/2013 6:07 P 5 of 5 Gated Communities, Access Control, security consultant, Chris McGoe... http :uwww.crimeaoctor.com,gatea.lur automatically signal when a car is present so the automatic gate operator and function accordingly. Loop detectors are required to prevent the gates from crashing into a car and to allowing free egress from inside the property. Loop detectors are not designed to prevent tailgating and should not be circumvented to prevent this. How to Prevent Tailgating Tailgating is the practice of following an authorized resident vehicle through the open gates before it closes. Tailgating is common practice at all gated communities and the cause of some of the damage to the gate systems. Tailgating is most common during rush hours. Tailgating is only considered bad when unauthorized persons infiltrate the property. On a large property it is impossible to know who is authorized to tailgate and who is not. Some properties educate their residents to stop and wait for the gate to close behind their car before proceeding. This can be effective on small, low- volume properties where resident cars are recognizable. On a large property, vehicle identity is not so easy. The only way to be sure, other than posting a guard, is to force each vehicle to enter their access code, card, or remote to gain entry. Adding a high -speed swing -arm between the gate keypad and the gate typically does the trick. However, there must be enough front -end real estate for this modification. The swing -arm has to be synchronized to open and close behind each car before the main gate opens. Sometimes a speed bump is necessary, just before the swing arm, to slow down the traffic through this portal and to prevent crashing into the arms. This system works, but will radically slow down the throughput into the property and is suitable only on low- volume access points. On exit -only gates, in- ground collapsible traffic -teeth have proved very effective in preventing wrong -way vehicles access. Highly visible signs are necessary to prevent tire damage. These to can be circumvented by clever thieves but work well enough to deter most drivers. Disclosure to Residents It is a good practice to always notify the community residents in writing about the function of the gates. Since access gates are an amenity, any change is service needs to be explained so residents can decide what to do next. If the management of a gated community decides to leave the gates open during daylight hours, this policy change should be stated in writing and published to the residents. Residents who disagree with this perceived reduction in services should be allowed to move out or be compensated in some manner. If a gate becomes damaged and requires weeks to repair, you should so notify your residents. If management decides not to repair the gates it is better to remove them altogether than to leave them there in disrepair. Don't forget to notify the residents of the decision to permanently remove this amenity. The decision to install gates on a property creates a love -hate relationship. Residents love those gates but can be a pain for management to maintain. Gates can help increase occupancy but also can wreak havoc to a community 2/24/2013 6:07 PI 4of5 SECOND AMENDED AND RESTATED COMMUNITY DEVELOPMENT DISTRICT SYSTEMS AND FACILITIES OPERATION AND MAINTENANCE AGREEMENT THIS SECOND AMENDED AND RESTATED COMMUNITY DEVELOPMENT DISTRICT SYSTEMS AND FACILITIES OPERATION AND MAINTENANCE AGREEMENT (this "Agreement ") is entered into this day of , 2013, by and between HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT, an independent special district established pursuant to Chapter 190, Florida Statutes (the "District "), and HERITAGE GREENS COMMUNITY ASSOCIATION, INC., a Florida not - for - profit corporation (the "Association "). WHEREAS, the District is an independent special district established pursuant to Chapter 190, Florida Statutes, and owns certain real property within the Heritage Greens community, for which it has responsibility to maintain (hereinafter "Property"); and WHEREAS, the District and the Association were previously parties to an Amended and Restated Community Development District Systems and Facilities Operation and Maintenance Agreement ( "Systems and Facilities Maintenance Agreement "), which is now terminated; and WHEREAS, the District and the Association desire to amend and reinstate the terms of the prior agreement and intend this Agreement to amend, restate, replace and supersede the prior agreement; and WHEREAS, the District has the authority to exercise powers to finance, fund, plan, establish, acquire, construct or reconstruct, enlarge, equip, operate and maintain systems and facilities for roads, water management, water supply, sewer, street lights, security and recreational facilities, among other powers, including all powers necessary, convenient, incidental or proper in connection with any of the powers, duties, or purposes authorized by Chapter 190, Florida Statutes; and WHEREAS, the Association is incorporated under Chapters 617 and 720, Fla. Stat., as a community association which owns and operates certain community infrastructure and amenity facilities located within the Heritage Greens community which community is within the boundaries of the District. The membership of the Association is comprised solely of property owners within the District. As the Association is responsible for operating and maintaining certain common areas, systems, and facilities located contiguous to or in close proximity of the District systems and facilities and the members of the Association are the direct beneficiaries of the District systems and facilities, the Association is uniquely positioned and qualified to operate and maintain the District's systems and facilities; and WHEREAS, the District desires to contract with the Association so that the Association may operate and maintain certain portions of the District's systems and facilities and the Association desires to operate and maintain these systems and facilities; and WHEREAS, the District and Association agree that having the Association operate and maintain said systems and facilities is in the best interests of the District and the property owners intended to benefit from the District's systems and facilities and that having the Association operating and maintaining the facilities as provided herein will provide for and facilitate ease of administration, potential cost savings, and the efficiencies of operation and maintenance. Page 1 of 4 NOW, THEREFORE, for and in consideration of the sum of TEN AND NO /100 DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the District and the Association agree as follows: 1. The above recitals are true and correct and incorporated herein by this reference. 2. The Association shall operate and maintain the following systems and facilities of the District (hereinafter "Systems ") at a minimum in compliance with all applicable statutes, ordinances, administrative rules and regulations, and permit requirements and the specific rules, policies, practices and procedures of the District: A. Irrigation water facilities not owned by Collier County. B. Security including the guardhouse, gates and arms. C. Water management and drainage including, without limitation, Tract E1, according to the plat thereof recorded in Plat Book 28, Page 78 of the Public Records of Collier County, Florida. D. Preserves, common areas and recreational areas including conservation areas. E. Sidewalks 3. All other operation and maintenance responsibilities for the Systems not otherwise addressed herein will remain the sole responsibility of the District, including the funding of major capital replacements of the Systems. For purposes of this Agreement, "major capital replacements" shall be those replacements or repairs which exceed $ (as adjusted) in the aggregate (the "Major Capital Replacement Threshold "). For purposes of this Section, the Major Capital Replacement Threshold shall increase annually by three percent (3.0 %) on each October 1 during the term. The Association shall be required to budget for and fund routine and normal operations, maintenance, repair and replacement costs of the Systems. The Association shall not budget or fund the costs of major capital replacements, provided, however, that the Association shall budget annually for minor capital repairs and replacements of the Systems which do not exceed the Major Capital Replacement Threshold. Annually, the Association shall submit in writing to the District, on or before May 1, the Association's recommendation(s), if any, for major capital replacements to the Systems. In the event of an emergency or circumstance which requires an immediate major capital replacement, the Association shall inform the District as soon as practical, and the parties agree to cooperate on a suitable and appropriate replacement for the Systems. 4. Annually the Association shall submit in writing to the District on or before November 15, the Association's proposed operating budget (the "Budget ") in sufficient detail for the next fiscal year operation and maintenance of the Systems for which the Association is responsible. Current contracts for the District will continue in effect and will be funded by the District through September 30, 2013. The Association will review all contracts during its 2014 budget preparation, and will include all active maintenance agreements in its 2014 budget. To the extent there is shortfall for the payment of these contracts during the last two months of 2013, Page 2 of 4 due to the commencement date of the Association's fiscal year, the Association will fund such short fall through its general reserves and, if necessary, re- capture those funds in its final 2014 budget. 5. The term of this Agreement shall be for a period of time commencing on the Effective Date of this Agreement and ending on September 30, 2014 ( "Initial Term "). After the Initial Term this Agreement will be automatically renewed for successive two -year periods thereafter unless either party provides the other party with notice on or before March I of the then current term. The District may terminate this Agreement at any time, for any reason, upon providing at least ninety (90) days written notice to the Association. Such termination will require a majority vote of the Board of Supervisors at a duly noticed meeting of the District. In the event of termination, any contract entered into by the Association for the performance of its duties set forth herein will be honored by the District. If such termination occurs other than at the end of the Association's fiscal year, funds budgeted and collected by the Association expressly for maintenance services to be performed under this Agreement will continue to be used for this purpose. The parties hereto may agree to the direct payment by the Association to the vendor or service provider or to a transfer of the collected and allocated funds to the District. 6. The Association shall be solely responsible for the staffing, budgeting, financing, billing and collection of fees, assessments service charges, etc., necessary to perform the operation and maintenance responsibilities set fort in this agreement. The Association shall directly assess and collect from the membership of the Association for the operation and maintenance costs it is providing. The Association shall maintain separately the operation and maintenance records for the Systems form its other Association Records and have them available for inspection by the District upon request. Upon the termination of this Agreement, the Association shall within thirty (30) days following the termination date, deliver to the District all records and documents relating to and associated with the performance of the Association under this Agreement. 7. The Association shall procure at its expense and at all times maintain comprehensive liability insurance policies to cover operation and maintenance responsibilities set forth herein. Proof of such insurance will be provided to the District upon request. The parties hereto acknowledge and agree that the Association will be responsible for any claims, suits or actions arising out of or related to its maintenance and operational responsibilities provided for in this Agreement, provided that the Association is not responsible for any maintenance and operational responsibilities undertaken by the District, and any capital improvements made to the Systems that would qualify as major capital replacements as defined in Section 3, or the failure to make such major capital replacements. Moreover, the District remains responsible for any claims, suits or actions, arising out of or related to the original placement, construction or existence of such Systems or their ownership by the District. 8. This Agreement may only be amended by a written amendment executed by both parties, after authorization from their respective boards. Page 3 of 4 9. This Agreement may not be assigned by the Association without the prior written specific consent of the District, which consent may be withheld in the District's sole and absolute discretion. 10. This Agreement is made and shall be governed by the laws of the State of Florida. Any litigation arising out of this Agreement shall be in the State court of appropriate jurisdiction in Collier County, Florida. 11. The Association recognizes, acknowledges, and agrees that the records and materials associated with the provisions of the service sunder this Agreement constitute public records under the laws of Florida and will be maintained in accordance with Chapter 119, Fla. Stat. 12. This Agreement shall become effective upon execution by both the District and the Association. The effective date will be the date on which the last signing party has signed. IN WITNESS WHEREOF, the parties hereto. have executed this document the day and year first above written. Heritage Greens Community Development District Attest: Ron Parrott, Chairman Date: Date: Calvin Teague, District Secretary Heritage Greens Community Association, Inc. M. John Shelton, President Attested by: , Secretary Date: Date: Page 4 of 4 Severn Trent Environmental Services, Inc. 4837 Swift Road, Suite 100 Sarasota, FL 34231 CONTRACT IN CONSIDERATION of the mutual covenants and promises contained herein, Severn Trent Environmental Services, Inc. (the '`Company ") agrees to perform the following services for Heritage Green CDD (the "Client "): Location of Work: Naples, Florida Start Date: Upon Approval Anticipated Completion Date: I. DESCRIPTION OF SERVICES: a. Clean and remove sand and debris from entire storm drain system and catch basins with the vactor truck and portable pumps. b. Dispose of sand and debris at a DEP approved dump site. c. Note: Prices are for budget purposes only and may increase due to the condition of the system, including dump fees. II. CONTRACT PRICE: Tt— CLiPn+ AarPPC to nnv the Ccimnanv for the services provided under this agreement as follows: v Unit Cost or Total Cost Item Description Hourly Rate Lump Sum Total $46,250.00 Unless stated otherwise above, payments are due in accordance with the standard terms and conditions of this Contract. III. ITEMS TO BE PROVIDED BY THE CLIENT c' users', ctea6n tel .appdatallocal'microsoR!wmdows\temporary internet files\ content.outlook',6k54ttjmh.stonn drain cleaning (3- I5- 13).doc Pg. i of 4 SCOPE OF SERVICES HERITAGE GREENS CDD STORMWATER MANAGEMENT SYSTEM INSPECTION & MAINTENANCE RECOMMENDATIONS MARCH 2013 I. OBJECTIVE The Heritage Greens Community Development District (HGCDD) has a complex stormwater management system (system) made up of swales, gutters, catch basins, conveyance pipes, detention / retention ponds, control structures, and wetlands. If the system is not properly maintained, costly failures and damage could be caused by flooding or erosion, which could lead to potential regulatory fines or life safety concerns. The purpose of this project will be to obtain record drawings of the permitted system, inspect and evaluate the existing condition of the system, and provide a detailed report, with photos of any deficiencies, that outlines any necessary remedial action. The following is a Scope of Services to successfully complete the project. II. SCOPE. OF SERVICES Task 1 - Data Collection RZ Consulting LLC will contact the Southwest Florida Water Management District (SWFWMD) and HGCDD's engineering firm to acquire all Environmental Resources Permits and record drawings of the HGDD's system. The HGDD will supply all relevant available documentation. Task 2 - Site Visit & Storm Water System Assessment BZ Consulting LLC will perform systematic field site inspections to verify the existing condition of the system infrastructure is in accordance with the plans and permits, acquired in Task 1. The inspections will also verify the system is functioning properly. Specifically, the visual inspections will include examination of swales and gutters for structural integrity, erosion, and sediment and vegetation buildup; catch basins for structural integrity, the presence of grates, and debris and sediment buildup; catch basin and pond conveyance pipe ends for debris and sediment buildup; wet / dry detention / retention pond banks for erosion, sediment buildup, and vegetation growth; pond and outfall control structures for structural integrity, the presence of skimmers and adjustable weirs, unblocked orifices, and sediment and vegetation buildup; and wetlands for maintained buffers, exotic vegetation growth, and overall health. BZ Consulting LLC ! Bryan, ZollerLciGmail.cor I (941) 812 -2585 02/26/2013 20:26 2395963970 JAMJAM #0926 P.001 /002 7� Job �t INFORMATION FOR HERITAGE GREENS RESIDENTS %a /I l- � �s ;,-W � Community members should follow documented rules that benefit the entire Community. Here are some remindm: - Recycle and garbage pick-up is on Tuesday, garbage only on Friday. Containers should only be placed out the night before, or the morning of a pick -up, and taken from the street a soon as possible. - ere is no overtu par on the or �n a poo ots. ere rs zt parking on grass or landscaped areas. Vehicles are subject to towing without _ Do not a vehicle oc a 81 - Garage doors should be�cept closed per Association Rules. -Golf carts on the street must be driven by licensed drivers, or by those at least 15 years of age with a valid Learner's Driver License. Drivers at least 12 years or older may drive when accompanied by an adult of 21 years of 'O age, seated by their side. l� -Owners are responsible to submit an application for their renters to the Association. Owners are responsible for their renters and guests, who must comply with all Association Rules. Owners must accompany their guests l when using common areas. Removal of pet waste is the responsibility of the pet owner. Owners must comply with all Collier County pet ordinances. Pets should be leashed when outside the home and should not be left unattended in garages, lanais or other areas. -The Community is patrolled by the Collier County Sheer and speeders, drivers failing to stop and those otherwise breaking common driving laws will be ticketed. -Do not blow or rake lawn waste into the street. No signs, banners, billboards or advertisements of any kind, including those of realtors, politicians, contractors, shall be erected or displayed anywhere, including in homeowners's windows and on vehicles. Display of the American flag is appropriate =There is a Community Garage Sale in the Spring, and one in the Fall. No other individual garage sales are allowed. Owners should obWn Documents pertaining to their.Assodation(s) and become familiar witk. the Rules. Fine& are assessed for failure to observe the Rules. dated February 2413- HeAtage Greens Cozxuaxunity Association Heritage Greens CDD Budget Schedule FY 2013 -2014 Key dates to work around 1. No later than June 15, 2013 the budget has to be presented by the District Manager. 2. The budget has to be tentatively approved by that date and a public hearing set at least 60 days in advance. 3. The budget legally has to be adopted prior to October 1 but assessments have to be set and sent to the County by September 15th so they can be included on the roll. Suggested schedule; We are proposing May 20th and August 19th as key dates for the budget but these can be changed based upon the BOS direction. The only restrictions are identified above. April — At the April 15th meeting the first draft of budget from the Manager will be presented to the Board of Supervisors including financials as of 03/31/2013, projected expenses and revenue for remainder of the fiscal year and suggested budget for FY2013- 2014. If needed, the BOS can have working meetings to work on the budget. May- Continuation of budget workshops by the BOS, if needed. This is for presentation of a proposed budget at the May 20th meeting. After approval of the proposed budget the maximum assessment rate can be lowered but NOT increased and the final rate is adopted during presentation to the Community at an August 19th Public Hearing. If the assessments are being increased even as a precaution a mailed notice must go out to all home owners. June- If needed, continue fine tuning the budget expenditure numbers as the maximum assessment amount will be set at the May 20th meeting. If an extra June meeting is needed then it will need to be moved up from the currently scheduled June 17th meeting. July- If needed continue fine tuning the budget but the maximum assessment will have been set. August - An August 19th Public Hearing is being proposed for adoption of the budget. if th needed, the adoption can be delayed, but no later than September 15 HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA TABLE OF CONTENTS _.EN-e INDEPENDENT AUDITOR'S REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS 2 -5 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements: Statement of Net Assets 6 Statement of Activities 7 Fund Financial Statements: BalanceSheet — Governmental Fund 8 Statement of Revenues, Expenditures and Changes in Fund Balance — Governmental Fund 9 Notes to the Financial Statements 10 -15 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Fund 16 Notes to Requlred Supplementary Information 17 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 16 MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 19 -21 2700 North Militaiy Trail 9 Suite 350 G(� r� j� y�* r� phi Boca Finion, Florida 334,31 ran l ISso'1.�.i[A,tes Fax (561) 954.5623 ► ?q6 - 77.8 OC) C P ttTl F l Et? I't.18 Ll t.: AC L C) t l 4'l'Alti`F' S ww�y.grauc pa,ccm INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Heritage Greens Community Development District Collier County, Florida We have audited the accompanying financial statements of the governmental activities and the maiorfund of Heritage Greens Community Development District, Collier County; Florida (the "District ") as of and for the fiscal year ended September 30, 2012, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Districts management. Our responsibility is to express opinions on these financial statements based on our audit, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovornmeritAudiling Standards, issued by the Comptroller General of the United States. Those standards require that we.plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An alldit includes examining, on a test basis, evidence supporting the amounts and disclosures In the financial statements.. An audit also includes assessing the accounting principles used and the significant estimates made: by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions, In our'opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of`the governmental activities and the major fund of the District as of September 30; 201,2, and the respective changes in financial position thereof for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Gover'nmontAuditing Standards, we have also issued our report dated. March 4, 2013, on our consideration of the District's Internal control over financial reporting and on our tests of its compliance with certain provisions of taws, regulations, contracts, agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control overfinancialteporting and comptiance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting .principles generally .accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information be presented to supplement the basic tinaricial statements. Such information, although not a part of the basic financial statements, Is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards,generally accepted in the .United States of America, which consisted of inquiries of management abotit the methods of preparing the information and comparing the information for consistency with. management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provideany assuranceon the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. r_,,�.� -f, I arch 4, 2013 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of Heritage Greens Community Development District, Collier County, Florida ( "District ") provides a narrative overview of the District's financial activities for the fiscal year ended September 30, 2012. Please read it in conjunction with the District's Independent Auditor's Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL_ HIGHLIGHTS The assets of the District exceeded its liabilities at the close of the most recentfiscal year resulting in a net asset balance of $2,822,239. The change in the District's total net assets in comparison with the prior fiscal year was $(84,840), a decrease. The key components of the District's net assets and change in net assets are reflected in the table in the government -wide financial analysis section. • At September 30, 2012, the District's governmental fund reported a total ending fund balance of $132,058, an increase of $43,248 in comparison with the prior fiscal year. A portion of the fund balance is assigned to subsequent year's expenditures and future repairs and maintenance and the remainder is unassigned fund balance which is available for spending at the District's discretion. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as the introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) government - wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private- sector business. The statementof net assets presents information on all the District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating_ The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business -type activities. The governmental activities of the District include the general government (management) and maintenance functions. 2 OVE=RVIEW OF FINANCIAL STATEMENTS (Continued) Fund Financial.-Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, usesfund accounting to ensure and demonstrate compliance with finance - related legal requirements. The Districthas one fund category: governmental funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District's near -term financing requirements. Because the focus of governmental funds is narrowerthan that of the government -wide financial statements, it is useful to compare the information presented for governmental fundswith similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the District's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains one individual governmental fund for external reporting. Information is presented separately in the governmental fund balance sheet and the govemmental fund statement of revenues, expenditures, and changes in fund balance for the general fund, which is a major fund. The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of an entity's financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year. Key components of the District's net assets are reflected in the following table' NET ASSETS SEPTEMBER 30, Assets, excluding capital assets Capital assets, net of depreciation Total assets Liabilities, excluding long -term liabilities Total liabilities Net Assets Invested in capital assets Unrestricted Total net assets 2012 2011 $ 139,882 $ 95,677 2,690,181 2,818,269 2,830,063 2,913,946 7,824 6,867 7,824 6,867 2,690,181 2,818, 269 132,058 88,810 $ 2,822,239 $ 2,907,079 GOVERNMENT -WIDE FINANCIAL ANALYSIS (Continued) A portion of the District's net assets reflects its investment in capital assets (e.g. land, land improvements and infrastructure). These assets are used to provide services to residents; consequently, these assets are not available for future spending. The remaining balance of unrestricted net assets may be used to meet the District's other obligations. The change In the District's net assets during the most recent fiscal yearwas a decrease. The majority of the decrease represents the extent to which the cost of.operations and depreciation expense exceeded ongoing program revenues. Key elements of the change in net assets are reflected in the following table: CHANGES IN NET ASSETS FOR THE FISCAL. YEAR END SEPTEMBER 30 2012 2011 Revenues: Program revenues $ 210,818 $ 177,243 General revenues 461 912 Total revenues 211,279 178,155 Expenses: General govornment 64,057 63,917 Physical environment 232,062 233,878 Total expenses 296,119 297,795 Change In net assets (84,840) (119,640) Net assets beginning 2.907,079 3,026,719 Net assets ending $ 2,822,239 $ 2,907,079 As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2012 was $296,119, of which $128,088 represents depreciation expense. The costs of the District's activities were primarily funded by program revenues. Prograrn revenues, comprised primarily of assessments, increased during the fiscal year as a result of an increase in per unit assessments. GENERAL BUDGETING HIGHLIGHTS An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2012. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. CAPITAL ASSETS At September 30, 2012, the District had $4,656,757 invested in land, land improvements and infrastructure. In the government -wide statements depreciation of $1,966,576 has been taken, which resulted in a net book value of $2,690,181. More detailed information about the District's capital assets is presented in the notes of the financial statements. 4 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND _OTHER EVENTS The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide ourcitizens, land owners, customers, investors and creditorswith a general overview of the District's finances and to demonstrate the District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Heritage Greens Community Development District's Finance Department at 210 N. University Drive, Suite 702, Coral Springs, Florida, 33071. HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF NET ASSETS . SEPTEMBER 30, 2012 ASSETS Cash and cash equivalents Investments Accounts receivable Due from other governments Prepaids Capital assets: Nondepreciable Depreciable, net Total assets LIABILITIES Accounts payable Total liabilities NET ASSETS Invested in capital assets Unrestricted Total net assets See notes to the financial statements Governmental Activities 1 37,468 626 7 1,599 182 918,434 1,771 ,747 2,830,063 7,824 7,824 2,690,181 132,058 S 2,822,239 11 HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 Functions/Programs Primary government: Governmental activities: General government Physical environment 1-otal governmental activities Net (Expense) Revenue and Program Revenues Changes in Net Assets Charges for Governmental Expenses Services Activities $ 64,057 $ 64,057 $ - 232,062 146,761 (85,301) 296,119 210,818 (85,301) General revenues: Unrestricted investment earnings Total general revenues Change in net assets Net assets - beginning Net assets - ending See notes to the financial statements 461 461 (84,840) 2:907,079 $ _2.822 239 HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUND SEPTEMBER 30, 2012 Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net assets includes those capital assets, net of any accumulated depreciation, in the net assets of the government as a whole. Cost of capital assets 4,656,757 Accumulated depreciation (1,966,576) 2,690,181 Net assets of governmental activities $ 2,822,239 See notes to the financial statements Major Governmental Fund General Fund ASSETS Cash and cash equivalents $ 137,468 Investments 626 Accounts receivable 7 Due from other governments 1,599 Prepaids 182 Total assets $ 139,882 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable S 7,824 Total liabilities 7,824 Fund balance: Assigned to: Subsequent year's expenditure 30,000 Future repairs and maintenance 54,987 Unassigned 47,071 Total fund balance 132,058 Total liabilities and fund balance $ 139,882 Amounts reported for governmental activities in the statement of net assets are different because: Fund balance - governmental fund $ 132,058 Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net assets includes those capital assets, net of any accumulated depreciation, in the net assets of the government as a whole. Cost of capital assets 4,656,757 Accumulated depreciation (1,966,576) 2,690,181 Net assets of governmental activities $ 2,822,239 See notes to the financial statements HERITAGE GREENS COMMU14ITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTALFUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 REVENUES Assessments Other revenues Interest Total revenues EXPENDITURES Current: General government Physical environment Total expenditures Excess of revenues over expenditures Fund balance - beginning Fund balance - ending Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - governmental fund Depreciation on capital assets is not recognized in the governmental fund statement but is reported as an expense in the statement of activities. Change in net assets of governmental activities See notes to the financial statements Major Governmental Fund General Fund $ 210,018 800 461 211,279 64,057 103,974 166,031 43,248 88,810 $ 132, 058 $ 43,248 (128,088) $ (84,840) 0 HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO FINANCIAL, STATEMENTS NOTE 1 — NATURE OF ORGANIZATION AND REPORTING ENTITY Heritage Greens Community Development District ( "District ") was created on July 20,1993 by Ordinance 93- 39 of the Board of County Commissioners of Collier County, Florida, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non -ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development with in the District. The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by the owners of the property within the Districts. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. The Board has the responsibility for: 1. Assessing and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District_ 5. Approving the hiring and firing of key personnel. 6. Financing improvements. The financial statements were prepared in accordance with Governmental Accounting Standards Board ( "GASB ") Statement 14, and Statement 39, an amendment of GASB Statement 14. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations forwhich the District Board of Supervisors is considered to be financially accountable, and other organizations forwhich the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Government -Wide and Fund Financial Statements The basic financial statements include both government -wide and fund financial statements. The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non - fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment. Operating -type special assessments for maintenance and debt service are treated as charges for services. and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 50 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Assessments Assessments are non -ad valorem assessments on benefited lands within the District. Assessments are levied to pay for the operations and maintenance of the District. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. The District's annual assessments for operations are billed and collected by the County Tax Assess orJCol lector. The arnounts remitted to the District are net of applicable discounts or fees and include interest on monies held from the day of collection to the day of distribution. Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government, The District reports the following major governmental fund: General Fund The general fund Is the general operating fund ofthe District. It is used to accountfor all financial resources except those required to be accounted for in another fund. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. Assets. Liabilities and Net Assets or lEguit Deposits and Investments The District's cash and cash equivalents are considered to be cash on hand and demand deposits (interest and norm- interest bearing). The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following: a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; b) Securities and Exchange Commission registered money marketfunds with the highest creditquality rating from a nationally recognized rating agency; c) Interest bearing time deposits or savings accounts in qualified public depositories; d) Direct obligations of the U.S. Treasury. 11 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets. Liabilities and Net Assets or Eg*t y ( Continued) Deposits and Investments (Continued) Securities listed in paragraphs c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured. The District records all interest revenue related to investment activities in the respective funds and reports investments at fair value. Inventories and-Prepaid Items Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Capital Assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government -wide financial statements. For financial statement reporting purposes, capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the District are depreciated using the straight -line method overthe following estimated useful lives: Assets Years improvements other than buildings 10-20 Infrastructure 20-30 In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements. Fund Eauitv(Net Assets In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use fora specific purpose. Assignments of fund balance represent tentative management plans that are subject to change. The District can establish limitations on the use of fund balance as follows: Committed fund balance — Amounts that can he used only forthe specific purposes determined bya formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category. Assigned fund balance — Includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. Assignments are established by the Board of Supervisors and are generally temporary. 12 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets Liabilities and Net Assets or Equity (Continued) Fund Equity /Net Assets Continued The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Net assets in the government -wide financial statements are categorized as invested in capital assets, net of related debt, restricted or unrestricted. Invested in capital assets, net of related debt represents net assets related to infrastructure and property, plant and equipment, net of any related debt. Other Disclosures Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 3 -BUDGETARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year end. The District follows these procedures in establishing the budgetary data reflected in the financial statements. a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing file following October 1. b) Public hearings are conducted to obtain public comments. c) Prior to October 1, the budget is legally adopted by the District Board. d) All budget changes must be approved by the District Board. e) The budgets are adopted on a basis consistent with generally accepted accounting principles. fl Unused appropriation for annually budgeted funds lapse at the end of the year. 13 NOTE 4 — DEPOSITS AND INVESTMENTS Deposits The District's cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act', requires all qualified depositories to depositwith the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or focal government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Investments The District's investments were held as follows at September 30, 2012: Investment Fair Value Credit Risk Maturity Weighted average of the Florida PRIME $ 250 S &P AAAnn fund portfolio: 39 days Investment in Fund B Weighted average life of Surplus Funds Trust Fund 376 NIA fund: 4.08 years Total Investments $ 626 Custodial credit risk— For an investment, custodial credit risk is the risk that, In the event of the failure of the counterparfy, the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District has no formal policy for custodial risk. The District's investments are held by a third party custodian and held in the District's name. Credit risk— For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investmenttype are included in the preceding summary of investments. Concentratlen risk— The District places no limit on the amount the District may invest in any one issuer. Interest rate risk —The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. 14 NOTE 5 — CAPITAL_ ASSETS Capital asset activity for the fiscal year ended September 30, 2012 was as follows; Governmental activities Capital assets, not being depreciated Land and land improvements Total capital assets, not being depreciated Capital assets, being depreciated Improvements other than buildings Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Improvements other than buildings Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Balance Additions Reductions Ending Balance $ 918,434 $ $ $ 918,434 918,434 - 918,434 355,505 355,506 3,382, 817 3,382, 817 3,738,323 3.738, 323 289,396 9,688 299,084 1,549,092 118,400 - 1,667,492 1,838,488 128,088 1,966, 576 1,899,835 (128,088) 1,771,747 $ 2,816,269 $ (128,088) $ $ 2,690,181 Depreciation expense was charged to the physical environment function. NOTE 6 — MANAGEMENT COMPANY The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs. NOTE 7 -- RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years. 15 HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL — GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 REVENUES Assessments Other revenue Interest Total revenues EXPENDITURES Current: General government Physical environment Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning Fund balance - ending Variance with Final Budget - Budgeted Actual Positive Amounts Amounts (Negative) $ 2D9,188 $ 210,018 $ 830 - 800 800 683 461 (222) 209,871 211,279 1,408 65,485 64,057 1,428 144,386 103,974 4D,412 209,871 158,D31 41,840 $ - 43,248 $ 43,248 88,810 $ 132,058 See notes to required supplementary information W HERITAGE GREENS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget forthe general fund. The District's budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles). The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2012. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. 17 MO North MfAtaiy Trail • Sufte 350 rt]Ca Raton, Florida $34:31 Grail & Associates Fax (61) 9999.180D) 299-4728 Fax js�1) 994 -5623 www,graucpa.com c, wl,iFIED'PUBLIC ACCOUNTANTS REPORT ON INTERNAL. CONTROL OVER FINANCIAL. REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WiTH GOVERNNENTAUVITINIG STANDARDS To the Board of Supervisors Heritage Greens Community Development .District Collier County, Florida We have audited the financial statements of the governmental activities and the major fund Heritage Greens Community Development District, Collier County, Florida ( "District') as of and for the fiscal year ended September 30, 2012, which collectively comprise the District': basic financial statements and have issued our report thereon dated March 4, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States,. internal Control Over Financial Reporting Management of the District is responsible for establishing and maintaining effective internal control over financial reporting. In planning and Performing our audit, we considered tt,e Districts internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Districts internal control over financial reporting. A,deficiency in internal control exists when the design or operation of a control does not allovd management or employees, in ilia normal course of performing their assigned functlons, to prevent, or detect and correct misstatements on a timely basis.. A material weakness is a deficiency, or `a combination of deficiencies, in internal control such thatthere is a reasonable possibility that a material misstaterilent ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in tite first paragraph of this section and was not designed to identify all deficiencies in Internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we considento be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the. Districts financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws; regulations, and contracts; and agreements, noncompliance with which could have a direct, and material effect on the determination of financial statement amounts. However; providing an opinion oil compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or matters that are required to be reported under Govemment Auditing Standards. This report is intended for the information and use of the management, Board of Supervisors of Heritage Greens _Community Development District, Collier County, Florida and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties, March 4, 2013 18 a Grau & Associates CERTIFIED PUBLIC ACCOUNTANTS 2700 North Military Trail * Suite 350 Rora Raton, Florida 33401 (561) 994 -9299 • (800) 299 -4728 rax (561) 994 -5823 www.graucpa.corn MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Hevitage Greens Community Development District Collier County, Florida We have audited the accompanying basic financial statements of Heritage Greens Community Development District ( "District") as of and for the fiscal year ended September 30, 2012, and have issued our report thereon dated March 4, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, Issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General.. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In addition, we have issued our Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed In accordance with Government Auditing Standards dated March 4, 2013. Disclosures in that report. should be considered in conjunction with this management letter. The purpose of tills letter is to comment on those matters required by Chapter 10.550 of the Rubs of the Auditor General for the State of Florida, Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following: 1. Current year findings and recommendations. It. Status of prior year findings and recommendations. Ill. Compliance with tho Provisions of, the Auditor General of the State of Florida. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. This letter is intended for the information and use of management, Board of Supervisors of Heritage Greens Community Development District, Collier County, Florida and the Auditor General of the State of Florida and is riot intended to be and should not be used by anyone other than these specified parties. We wish to thank Heritage Greens Community Development District, Collier County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. March 4, 2013 19 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS None III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Unless otherwise required to be reported in the auditor's report on compliance and internal controls, the management letter shall include, but not be limited to the following: 1. A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Therewere no significant findings and recommendations made in the preceding annual financial audit report forthe fiscal year ended September 30, 2011, 2. A statement as to whether or not the local governmental entity complied with Section 218.415, Florida Statutes, regarding the investment of public funds. The District complied with Section 218.415, Florida Statutes, regarding the investment of public funds. 3. Any recommendations to improve the local governmental entity's financial management. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2012. 4. Violations of provisions of contracts or grant agreements, or abuse, that have occurred; or are likely to have occurred, that have an effect on the financial statements that is less than material but more than inconsequential. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2012. 5. For matters that have an inconsequential effect on the financial statements, considering both quantitative and qualitative factors, the following may be reported based on professional judgment: a. Violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse. b. Deficiencies in internal control that are not significant deficiencies. There were no such matters discovered by, or that came to the attention of, the auditor, that, in our judgment, are required to be reported, for the fiscal year ended September 30, 2012. 20 REPORT TO MANAGEMENT (Continued) 6. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 7. The financial report filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes agrees with the September 30, 2012 financial audit report. 8. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 9. We applied financial condition assessment procedures pursuant to Rule 10.556(7) and no deteriorating financial conditions were noted. It is management's responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. 21 Heritage Greens Community Development District Financial Report February 28, 2019 Prepared by HERITAGE GREENS Community Development District Table of Contents FINANCIAL STATEMENTS BalanceSheet ........................... ............................... Page 1 Statement of Revenues, Expenditures and Changes in Fund Balances General Fund ........................... ............................... Page 2 - 3 SUPPORTING SCHEDULES Non -Ad Valorem Special Assessments Cash & Investment Report SunTrust Bank Reconciliation Check Register ............................... ... I..................... Page 4 ........ .............. ... I............... Page 5 .......................I ........................ Page 6 - 7 . ... ... ...................... I.................. Page 8 HERITAGE GREENS community Development District Financial Statements (Unaudited) February 28, 2013 HERITAGE GREENS Governmental Fund Community Development District Balance Sheet February 28, 2013 GENERAL ACCOUNT DESCRIPTION FUND ASSETS Cash - Checking Account $ 84,134 Investments: 6,000 Money Market Account 175,658 SBA Account 278 SBA Account - Restricted 348 TOTAL ASSETS $ 260,418 LIABILITIES Accounts Payable $ 12,611 Accrued Expenses 943 TOTAL LIABILITIES 13,554 FUND BALANCES Operating Reserves 30,000 Reserves - Drainage 6,000 Reserves - Fountains 5,500 Reserves- Irrigation System 7,500 Reserves - Roads and Sidewalks 16,201 Reserves - Signage 1,000 Reserves - Wall Painting 6,000 Reserves - Wall Replacement 12,786 Unreserved /Undesignated 161,877 TOTAL FUND BALANCES $ 246,864 TOTAL LIABILITIES & FUND BALANCES $ 260,418 Report Date: 3/5/21713 Prepared by: Severn Trent Management Services Page 1 HERITAGE GREENS General Fund Community Development District Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28, 2013 EXPENDITURES P1R -Board of Supervisors FICA Taxes ProfServ- Engineering ANNUAL ProfSery -Legal Services 3,500 ProfSery -Mgmt Consulting Sery 35,895 ProfServ- Property Appraiser ADOPTED YTD YTD VARIANCE (5) FEB -13 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL Insurance - General Liability 7,000 Printing and Binding 1,500 REVENUES 1,200 Misc -Bank Charges 500 Misc - Assessmnt Collection Cost 4,358 Interest - Investments $ 400 $ 166 $ 140 $ (26) $ 31 Special Assmnts- Tax Collector 217,904 205,504 205,189 (315) - Special Assmnts- Discounts (8,716) (8,220) (7,991) 229 - Gate Bar Code /Remotes - - 320 320 100 TOTAL REVENUES 209,588 197,450 197,658 208 131 EXPENDITURES P1R -Board of Supervisors FICA Taxes ProfServ- Engineering 750 ProfSery -Legal Services 3,500 ProfSery -Mgmt Consulting Sery 35,895 ProfServ- Property Appraiser 3,269 ProfServ- Special Assessment 5,463 ProfServ-Web Site Development 650 Auditing Services 3,200 Communication - Telephone 50 Postage and Freight 500 Insurance - General Liability 7,000 Printing and Binding 1,500 Legal Advertising 1,200 Misc -Bank Charges 500 Misc - Assessmnt Collection Cost 4,358 Office Supplies 300 Annual District Filing Fee 175 _ Total Administrative 68,310 Public Safety - 600 (600) 200 - 46 (46) 15 313 714 (401) - 1,460 523 937 330 14,956 14,956 - 2,991 3,269 3,269 - - 5,463 5,463 - - 650 119 531 - 2,500 3,200 (700) - 20 - 20 - 210 339 (129) 66 7,000 7,615 (615) - 625 395 230 40 500 182 318 - 210 238 (28) 61 4,110 3,944 166 - 125 6 119 - 175 175 - - 41,586 41,784 (198) 3,703 Contracts - Security Services 48,000 20,000 19,193 807 2,676 Contracts -HVAC 350 145 - 145 - Contracts- Sheriff 3,000 1,250 1,063 187 128 Communication - Telephone 1,500 625 513 112 102 Electricity - Entrance 2,200 916 830 86 121 Report Date: 3/5/2013 Prepared by: Severn Trent Management Services Page 2 HERITAGE GREENS Community Development District Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28, 2013 ACCOUNT DESCRIPTION Utility - Water & Sewer Lease - Carts R &M -Gate .R&M-Gatehouse Op Supplies - Transmitters Op Supplies - Gatehouse Cap Outlay - Equipment Total Public Safety Landscape Contracts - Landscape Contracts - Preserve Management Electricity - Irrigation R &M- Renewal and Replacement R &M- Canals R &M- Fountain R &M- Grounds R &M- Irrigation R &M- Preserves Misc- Special Projects Total Landscape Road and Street Facilities Electricity - Streetlighting R &M- Drainage R &M -Roads & Alleyways R &M- Sidewalks Traffic Signage Rehabilitation Reserve - Roadways Total Road & Street Facilities ANNUAL ADOPTED BUDGET General Fund YTD YTD VARIANCE ($) FES -13 BUDGET ACTUAL FAV(UNFAV) ACTUAL 900 375 1,500 750 4,352 1,814 1,500 625 250 105 6,726 2,802 70,278 29,407 285 90 51 750 - 750 158 1,656 - 203 422 - 589 (589) 391 398 (293) 150 - 2,802 - 23,982 5,425 4,369 18,000 7,500 7,230 270 1,255 2,000 1,000 880 120 - 2,000 835 897 (62) 162 1,500 625 - 625 - 2,600 - - - - 900 375 1,155 (780) 75 8,500 3,541 45 3,496 45 2,500 1,041 - 1,041 - 500 209 209 - 4,000 1,667 2,796 (1,129) 2,578 42,500 16,793 13,003 3,790 4,115 11,000 4,584 3,723 861 797 2,500 1,041 - 1,041 - 2,000 835 360 475 - 1,750 730 - 730 - 1,250 521 - 521 - 10,000 10,000 10,000 - 28,500 17,711 4,083 13,628 797 TOTAL EXPENDITURES 209,588 105,497 82,852 22,645 12,964 Net change in fund balance $ - $ 91,953 $ 114,806 $ 22,853 $ (12,853) FUND BAL, BEGINNING (OCT 1, 2012) 132,058 132,058 132,058 FUND BALANCE, ENDING $ 132,058 $ 224,011 $ 246,864 Report Date: 3/5/2013 Prepared by: Severn Trent Management Services Page 3 HERITAGE GREENS Community Development District Supporting Schedules February 28, 2013 HERITAGE GREENS Community Development District Non -Ad Valorem Special Assessments Collier County Tax Collector - Monthly Collection Report For the Fiscal Year ending September 2013 Date Received Net Amount Received Discount / (Penalties) Amount Collection Costs Gross Amount Received Assessments Levied FY 2013 $ 217,904 Allocation % 100% 11/07/12 $ 1,247.06 $ 71.30 $ 25.45 $ 1,343.81 11/14/12 $ 23,340.07 $ 992.40 $ 476.33 $ 24,808.80 11/29/12 $ 44,346.14 $ 1,885.56 $ 905.02 $ 47,136.72 12/13/12 $ 109,729.78 $ 4,632.20 $ 2,239.38 $ 116,601.36 01/04/13 $ 4,520.17 $ 142.60 $ 92.25 $ 4,755.02 01/31/13 $ 10,071.56 $ 266.64 $ 205.54 $ 10,543.74 TOTAL $ 193,255 $ 7,991 $ 3,944 $ 205,189 % Collected 94.17% TOTAL OUTSTANDING $ 12,715 Report Date: 3/5/2013 Page 4 HERITAGE GREENS Community Development District Cash and Investment Report February 28, 2013 All Funds General Fund Account Name Bank Name Investment Tvoe Maturily Yield aB lance Checking Account - Operating SunTrust Bank n/a n/a 0.10% $83,134 Checking Account - Operating Bank United n/a n/a 0.00% $1,000 Operating Acct SBA n/a n/a 0.22% $278 Operating Acct (Restricted) SBA n/a n/a 0.00% $348 Money Market Account Bank United Business MMA n/a 0.45% $175,658 Total $260,418 Report Date: 3/5/2013 Prepared By: Severn Trent Management Services Page 5 Heritage Greens CDD Bank Reconciliation Bank Account No. 9920 Statement No. 32 -13 Statement Date 02/28/13 GIL Balance ($) 63,133.66 Statement Balance 83,168.36 G/L Balance 83,133.66 Outstanding Deposits 100.00 Positive Adjustments 0.00 _ -- Subtotal 83,268.36 Subtotal 83,133.66 Outstanding Checks 134.70 Negative Adjustments 0.00 Total Differences 0.00 Ending G/L Balance 83,133.66 Ending Balance 83,133.66 Difference 0.00 Posting Cleared Date Document Type Document No. Description Amount Amount Difference Checks 01/2113 Payment 2581 RONALD C. PARROTT 134.70 134.70 0.00 01/28/13 Payment 2582 RONALD C. PARROTT 134.70 134.70 0.00 01/30/13 Payment 2583 CENTURY LINK 102.18 102.18 0.00 01/30/13 Payment 2564 FEDEX 8.31 8.31 0.00 01/30/13 Payment 2585 HERITAGE GREENS COD 125,000.00 125,000.00 0.00 01/30113 Payment 2586 JAMES MARSHALL 167.29 167.29 0.00 01/30/13 Payment 2568 RON PARROTT 52.69 52.69 0.00 01/30/13 Payment 2589 SEVERN TRENT ENVIRONMENTAL SERVICES 3,323.10 3,323.10 0.00 02/04/13 Payment 2590 FPL 1,168.11 1,168.11 0.00 02/04/13 Payment 2591 PJM LAWN SERVICE 1,560.00 1,560.00 0.00 02/04/13 Payment 2592 RAYMENT POOLS LLC 75.00 75.00 0.00 02/13/13 Payment 2593 AGNOLI BARBER & BRUNDAGE, INC. 714.00 714.00 0.00 02/13/13 Payment 2594 COLLIER COUNTY PROPERTY APPRAI 3,268.56 3,268.56 0.00 02/13113 Payment 2595 COLLIER COUNTY SHERIFFS OFFICE 127.50 127.50 0.00 02/13113 Payment 2596 FEDEX 6.31 8.31 0.00 02/13/13 Payment 2597 KENT OF NAPLES 892.00 892.00 0.00 02/19/13 Payment 2598 COLLIER COUNTY UTILITY BILLING 50.78 50.78 0100 02/20113 Payment 2599 ADVANCE LIGHTING OF NAPLES, INC 45.00 45.00 0.00 Total Checks ................. .......................... .... . ...... 136,832.23 136,832.23 0.00 Deposits 02/18113 DEP00049 COLLIER CTY TAX COLL:INTOTR END 12/2012 3.68 3.68 0.00 02/21/13 ACH DEBIT SUNTRUST MONTHLY ANALYSIS FEE -JAN 2013 -61.12 -61.12 0.00 02126113 ACH DEBIT IRS USATAXPYMT -RON PARROTT -80.60 -80.60 0.00 02128113 ACH CREDIT SUNTRUST INTEREST INCOME -FEB 2013 8.10 8.10 0.00 Total Deposits ............. .. . ......... ... ...... ........... ... - 129.94 - 129.94 0.00 Page 6 Heritage Greens CDD Bank Reconciliation Cleared Postina Date Document Type Docuent No. Description Amount Outstanding Checks 02/25/13 Payment 2600 RONALD C. PARROTT 134.70 0.00 Total Outstanding Checks .... ..... . .... .................. ........ 134.70 Outstanding Deposits 02/27/13 DEP00050 CLICKER SALES 100.00 0.00 100.00 Total Outstanding Deposits ..... ......... ............... ........ Page 7 134.70 100.00 U c EC C y 0 ,Lw ? V Q CD . M a •� E E = U v7 N rD CO O O O c0 0 M 0 o co r O o O r� r to rnkc) N 00 O 01 P tT qj (O 0 O r0 0 I t 0 LO m (O u IA N W EA N O to a C � N U3 � N Q CIA m to N v C �j (A r m t LL W tf G r0 �j eA V 'V 60 N N N CD O 4 :1 .T. p 2 p .'a F U O e 4 cn O '� m m � M O M O o T a yap Q� T 9 w a � O 2 L9 rn rN N rn o Q }{ aJ t7 o c; w w w O} N A � O cO n v r L• a tsms� c c> rp) w w w U a rf� o N K in Y N Y? 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