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11/11/2014 Agenda 1-7 0 gTIrj HO il F--.Th iii Zei v Naples Heritage Community Development District y yt __ Board of Supervisors Peter J. Lombardi,Chairman Calvin Teague,District Manager Peter V. Ramundo,Vice Chairman Gregory L.Urbancic,District Counsel Kenneth R.Gaynor,Assistant Secretary William McAnly,District Engineer Gerald G.James,Assistant Secretary Richard J.Leonhard,Assistant Secretary Regular Meeting Agenda November 11,2014—9:00 a.m. 1. Roll Call 2. Approval of the Minutes of the May 6,2014 Meeting 3. Public Comment on Agenda Items 4. Old Business A. Lake Bank Restoration B. Road Improvement Project C. Collier Boulevard Fence D. Stormwater System Maintenance Bids 5. New Business A. Website Development 6. Manager's Report A. Approval of Financial Statements B. Assigning Fund Balance as of September 30,2014 C. Amending General Fund FY 2014 Budget—Resolution 2015-1 D. Acceptance of FY 2013 Audit E. Engagement Letter Grau&Associates FY 2014 Audit 7. Attorney's Report S. Supervisors' Requests 9. Audience Comments 10. Adjournment The next meeting is scheduled for Tuesday,January 6,2015 at 9:00 a.m. District Office: Meeting Location: 210 N.University Drive,Suite 702 Naples Heritage Golf and Country Club Clubhouse Coral Springs,FL 33071 8150 Heritage Club Way 954-753-5841 Naples,FL August 1, 2014 To:Cal Teague,District Manager From:Justin Faircloth,District Administrator Re: Naples Heritage CDD—Storm water repairs Companies Contacted • Landshore Enterprises,LLC—Andre Vandenberg-954-327-3300 • Severn Trent Services—Frank Branch-239-694-3310 • Specialized Plumbing Technologies—Tim Stover-239-597-5252 • Southwest Hydrojetting—decided not to quote,but instead referred me to Specialized Plumbing Technologies Below was the request submitted for bid: Naples Heritage had an inspection for their storm water management system and found several areas that need attention and repair.I have attached two spreadsheets and a map that identify the structures, their location,and the needed action.Would you please give us separate quotes on the yellow(corrective action items)and the red(immediate action items)? Summary • Landshore Enterprises, LLC-$2,415.00(Yellow)+12,846.00(Red)+$1,400.00(Mobilization Fee)_ $16,661.00 • Severn Trent Services-$7,371.97(Yellow)+$18,796.85(Red)=26,168.82 • Specialized Plumbing Technologies-$15,265.00(Yellow)+$28,390.00(Red)=43,655.00 Landshore has clearly provided the lowest quote.That being said,the lowest quote was still substantially higher than the$8,950.00 estimate that was given in the inspection report by BZ Consulting, LLC. I have printed seven copies of each proposal and put them in the front office for your review. Please let me know if you have any questions or need any further information. Sincerely, Justin SEVERN Justin Faircloth•District,\ttn,inistrator TRENT E.; • _ SERVICES 1_t :. s ri. •F H`},.y 41)111§11, Landshore .Entezpnses 14u,,e • ENT�G`P�\ Shoreline&Streambank Protection/Stabilization/Reclamation Design-Build(Engineering, Surveying, Permitting, Construction) d/b/a Erosion Restoration,LLC Reinforcing America's Soils for Over a Decade Proposal Prepared For: NAPLES HERITAGE CDD c/o Severn Trent Services Attn: Mr.Justin Faircloth Fort Myers, FL Submitted on: 7/7/2014 Landshore Enterprises,LLC - 5601 Powerline Road,Suite 306,Fort Lauderdale,Florida,33309 Tel:(954)327-3300 • 14 Fax:(954)533-1556 • 'I Email:info @landshore.com # � :r1 n: s- ore te":"pr ses, .i',L,s.; '+ •r�Ea° y Shoreline&Streambank Protection/Stabilization/Reclamation Design-Build(Engineering,Surveying,Permitting,Construction) d/b/a Erosion Restoration Reinforcing America's Soils for Over a Decade Naples Heritage CDD PROPOSAL #2089 c/o Severn Trent Services Attn:Mr.Justin Faircloth Fort Myers,FL Date: 7/7/2014 JOB DESCRIPTION Per Stormwater Project Report ITEMIZED PROPOSAL:TIME AND MATERIALS ASSET# ASSET DESCRIPTION PIPE SIZE CURRENT CONDITION Mal 6 MITERED END 30" HEAVY EROSION F15 FLARED END 18" HEAVY EROSION.BROKEN F35 HEAD WALL 36" 24"SEDIMENT,LIGHT VEG. F39 HEAD WALL 36" 10"SEDIMENT F49 CURB INLET 15",18" EXPOSED REBAR F51 CURB INI.ET 15" EXPOSED REBAR F52 CURD INLET 15",10" EXPOSED REBAR F59 MITERED END 36" HEAVY EROSION F62 MITERED END 18" HEAVY EROSION F63 MITERED END 36" HEAVY EROSION F82 MITERED END 24" HEAVY EROSION F87 MITERED END 18" HEAVY EROSION F97 MITERED END 24" HEAVY EROSION F112 POND PIE END 24" HEAVY EROSION F1238 HEAD WALL 30" 8"SEDIMENT/LIGHT VEG. F139 BOX INLET 30" STEEI.GRATE DOESN'T FIT CS A CONTROL STRUCTURE 24" HEAVY SEDIMENT BLOCKING SKIMMER CSC CONTROL STRUCTURE 24" HEAVY SEDIMENT BLOCKING SKIMMER CS D CONTROL STRUCTURE 24" HEAVY SEDIMENT BLOCKING SKIMMER CS E CONTROL STRUCTURE 24" HEAVY SEDIMENT BLOCKING SKIMMER }ASSET# ASSET DESCRIPTION PIPE SIZE CURRENT CONDITION( TOTAL 3 DOUBLE MI'T'ERED ENO '18",24" LIGHT VEGETATION 4 DOUBLE MITERED END 36" LIGHT VEGETATION 10 MITERED END 36" LIGHT DEBRIS(ROCKS) F10 MITERED END 18" LIGHT VEGETATION/1"SEDIMENT F34 MITERED END 18" LIGHT EROSION F43 MITERED END 18" CRACKED MITERED END F75 BOX INLET 18",24" LIGHT VEGETATION.OAK LEAVES F127 POND PIPE END 30" LIGIIT DEBRIS F131 HEAD WALL 36" NEWLY ADDED FILL LIGHT EROSION F134 MITERED END 18" LIGHT VEGETATION F142 MITERED END 18" LIGHT VEGETATION CS B CONTROL STRUCTURE 30" PVC SCREEN CS F CONTROL STRUCTURE 30" LIGHT DEBRIS SUB-TOTAL YELLOW AREAS $2,415.00 MOBILIZATION $1,400,00 I GRAND TOTAL $16,661.00 Landshore Enterprises,LLC - 5601 Powerllne Road,Suite 306,Fort Lauderdale,Florida 33309 Tel:(954)327-3300 • Fax:(954)533-1556 • Email:info @landshore.com rJJ an OTC . , terprise ';i LLE "� a E Shoreline&Streambank Protection/Stabilization/Reclamation FN' Design-Ruild(Engineering,Surveying,Permitting,Construction) d/b/a Erosion Restoration Reinforcing America's Soils for Over a Decade PAYMENT SCHEDULE Landshore Enterprises'payment policy is as follows; 50% Booking fee 50%Completion Date **Invoice is due upon receipt`• SPECIAL CONDITIONS The client is responsible for survey,engineering and permitting with all government agencies having jurisdiction over the subject site. Actual prices may vary due to pre-existing geotechnical,or hydrographic conditions which will require different equipment, labor and material. No changes to the approved contract will be made without written approval from the client. Unless the client provided comprehensive and conclusive engineering report or paid for the same services to Landshore Enterprises,LLC,the stipulated above price does not include rock removal,addition of suitable material as necessary,heavy equipment,land surveying,bathymetric survey,geotechnical exploration,engineering or permitting. Landshore Enterprises,LLC is not responsible for damage to utilities if as-built drawings or locations are not provided by the client. Landshore Enterprises,LLC reserves the right to change this estimate unless an agreement is reached within 90 days of the original estimate date. This Is an estimate only.This Is not a contract.This estimate is for completing the Job described above,based on our evaluation.It does not include unforeseen price increases or additional labor and materials which may be required should problems arise. Client Representative Signature Date Landshore Enterprises Representative Signature Date Landshore enterprises,LLC - 5601 Powerline Road,Suite 306,Fort Lauderdale,Florida 33309 Tel:(954)327-3300 • Fax:(954)533-1556 • Email:info @landshore.com Naples Heritage CDD - Stormwater Project - Immediate Corrective Action Items Asset d Assaf DePtripban/Inlet Pape Site Current Condition Recommendation of Correctly.,Action Type 3 Double Mitered End 18",24" light vegita0on Clear and grub vegitation 4 Double Mitered end 36" ught vegnatnm Clear and grub veggation 10 Mitered End 36" light debris(rocks) Remove debris F10 Mitered End 18" tight vegetation/t"sediment Flush sediment from structure&npstream pipe.Clear grub vegetal on. P34 Mitered Fed 18" Light erosion Add clean Eli P.compact P43 Mitered End 18' Cracked Mitered End Demo R reconstruct mitered end if cracking gets worse F75 Box Inlet 18",24" light vegnatlon.Oak leaves, Remove leaves F127 Pond Pipe End 30" tight debris Remove debris F l31 Head Wag 36" Newly added 811.tight erosion Stabilise fill aeration continues F114 Mitered End 18' tight vegitauon Clear and grub vegeaton , F 142 Mitered End 18" light vtgitauon Clear and grub vegitabun • CS 8 Control Structure 30" PVC screen Remove PVC •• CS P Control Structure 30' Light debris Remove debris • • • • • • • • Asset g Asset Description Pipe Size Current Condition Recommendation of Corrective Action /Inlet type 6 Mitered End 30" Heavy Erosion Add clean fill&compact F55 Flared End 18" Heavy Erosion.Broken. Demo&reconstruct end F35 Head Wall 36" 24"Sediment,light Vegetation Flush sediment from structure&upstream pipe.Clear and grub vegetation. F39 Head Wall 36" 10"Sediment Flush sedkment from structure&upstream pipe. F49 Curb Inlet 15",18' Exposed Reber Demo&reconstruct lid. F51 Curb Inlet 15" imposed Reber Demo&reconstruct lid. F52 Curb Inlet 15",18' Exposed Rebar Demo&reconstruct lid. F59 Mitered End 36" Heavy Erosion Add dean fill&compact P62 Mitered End 19" Heavy Erosion Add clean fill&compact F63 Mitered End 36" Heavy Erosion Add clean fill&compact F82 Mitered End 24" Heavy Erosion Add clean fill&compact F87 Mitered End 18" Heavy Erosion Add dean fill&compact F97 Mitered End 24" Heavy Erosion Add clean fill&compact F112 Pond Pie End 24" Heavy Erosion Add clean fill&compact F1238 Head Wall 30" 8"Sediment I light Vegetation Flush sediment from structure&upstream pipe.Clear and grub vegetation. F139 Sox Inlet 30" Steel grate doesn't fit. Remove and replace with correct size grate. CS A Control Structure 24' I leavy sediment blocking skimmer Remove PVC.Excavate around/under skimmer CS C Control Structure 24" Heavy sediment blocking skimmer Remove PVC.Excavate around/under skimmer • CS 0 Control Structure 24" Heavy sediment blocking skimmer Excavate around/under skimmer • CS E Control Structure 24" Heavy sediment blocking skimmer Excavate around I under skimmer • • • • PRODUCED BY AN AUTODESK EDUCATIONAL PRODUCT • ,- ,. t p .7,: . $0 , , n " ... . 'u:. ( n I ' -,1 '-n V. s z 7 „ ill ' 1 It . . i . i m m" .5` • F— AI • o O Ce \1 1 e, uR I,Sir o i iY1 .. C I1 t Q Z i $. t-. w ( D• F- Qa `_ gym' y I C „i n Ek '31 iN Y a {�77 t IT s °S tyJ yV r .4 ,11 to,, C z fc s ,4 3 d - >- D m t Q r � • z X A� c i: :: -4; ; :t p1 ;i ,' o . f C C O ) M a re ry ri,:le: x. lonno1d 1VNOildonna 'is3ao1 nd NV AR nannfOHd :SEVERN Severn Trent TRENT Environmental SERVICES Services,Inc. 5911 Country Lakes 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 Naples Heritage CDD(the"Client"): Location of Work: Naples Heritage CDD (WA#45424 Start Date: Upon Approval Anticipated Completion Date:One Week I. DESCRIPTION OF SERVICES: a.Yellow Area clean&remove all debris form interconnects,headwalls,and mitered ends at 3,4, 10,F-10,F-75,F-127,F-134,F-142,CS-B. b. Recement crack in mitered end at F-43. c.Fill in erosin around F-34,F-131 with 57 stone and rip rap. II. CONTRACT PRICE: The Client agrees to pay the Company for the services provided under this agreement as follows: Item Description Unit Cost or Total Cost Hourly Rate Lump Sum Total N/A $7,371.97 Unless stated otherwise above,payments are due in accordance with the standard terms and conditions of this Contract. If any unforeseen problems should be discovered during the performance of the above referenced service, we will notify you immediately of their nature and any additional cost that may be incurred. Unless otherwise specified,rock removal,dewatering,cover-up,and haul off are not included. Severn Trent Services is not responsible for unmarked underground lines. Any changes requested by the owner/builder are not covered by this agreement,and must be added subsequently,at the cost agreed upon by both parties. Agreed to: (please initial) CA Users\jfaircloth\DesktopUustin's Documents2\Properties\Naples l leritage\NH CDD-Storm Water\Stonn Water Repair Bids\Severn Trani-Naples Heritage Yellow Area Work Authorization.doc Pg. I of 4 III. ITEMS TO BE PROVIDED BY THE CLIENT A. Provide access to premises. B. Any permit modification if applicable. THE STANDARD TERMS AND CONDITIONS on the pages following this Contract are agreed to be a part of this Contract. Offered by: Accepted by: Severn Trent Environmental Services,Inc. Signed Signed By: By: Printed Printed Name: Name: Title: Title: Address for Notices: Date: Date: Agreed to: (please initial) C:\Uscrs\jfaircloth\DesktopUustids Docunwnts2\PropertieslNaples Heritage\NH CDD-Storm Water\Stone Water Repair Bids\Severn Trent-Naples Heritage Yellow Area Work Authorization doc Pg.2 of 4 STANDARD TERMS AND CONDITIONS Definitions. As used herein, the following terms shall have the following known technical or trade meanings are used in this Contract in accordance with meanings: such recognized meanings. • "Change of Law"the occurrence of any of the events listed in(i)through(iv) Offer to Contract. Company's proposal and the accompanying documents below,which results or can reasonably be expected to result in a direct referred to under the definition of the term`Contract"herein(including the increase to the Company's cost of providing the Services: terms and conditions set forth herein)constitute an offer to contract which may (i) there is passed or promulgated any federal, state,or other local law, be accepted by the client within thirty(30)days from the date hereof(or within statute,ordinance,rule or regulation different from those existing on the such shorter or longer period of time, if any is specified in the Company's date of the Contract;or proposal)and only on the exact terms hereof. If additional or different terms are (ii)there is passed or promulgated any amendment to,or change in,any proposed by Client, such proposal or request shall constitute a counter offer federal,state,or other local.law,statute,ordinance,rule or regulation which Company may,at its option,accept by written notice to the Client signed (including any applicable sales tax regulation)following the date of the by the Company.This Contract shall not be binding on the Company unless it is Contract;or executed by the Client and a duly executed copy is delivered to the Company (iii)there comes into existence an order or judgment of any federal,state,or within the period of time specified above. local court,administrative agency ur other goveinnienlal body following Entire Agreement.The terms and conditions set out herein are the entire terms the date of the Contract containing interpretations of law relating to the and conditions of this Contract and any prior or contemporaneous provision of the Services by the Company that is inconsistent with understandings or agreements,oral ur written,are merged herein. There are no generally accepted interpretations in effect on the date of the Contract; representations or warranties, agreements, or covenants other than those or expressly set forth in this Contract. This Contract may be amended or modified (iv)(a)the imposition of any condition different from those existing on the and/or any right or obligation arising under this Contract may be waived from date of the Contract on the issuance or renewal of any official permit, time to time only by a written instrument executed by the Client and the license or necessary approval related to the provision of the Services by Company. The failure of the Company at any time to enforce any of the the Company, or (h) there shall be a suspension, termination, provisions of this Contract shall not constitute a waiver of such provision. interruption, revocation, denial or failure of renewal of any official Quality of Work and Materials. All Services to be provided hereunder shall permit, license or necessary approval related to the provision of the he performed by qualified personnel in accordance with pmfessional standards. Services by the Company, including without limitation such of the Company acknowledges that the Client is relying on the Company to use the foregoing as are issued or approved by the USEPA,the Occupational effort,skill,diligence and quality controVquality assurance measures expected of Safety and Health Administration or any local Environmental and/or a qualified professional firm performing services of a similar nature to the Building Department; Services to be performed by the Company pursuant to this Contract. Any • "Client"ineatts the party or parties identified as such in this Contract. In materials furnished by the Company shall be current,of merchantable quality addition,the term"Client"specifically includes the party or parties to whom and in compliance with any technical standards or specifications incorporated the Company provides Services and the party or parties responsible for into this Contract. When certain materials are specified by a reference standard, paying the Company for Services provided pursuant to this Contract; Company may select any suitable commercially acceptable material meeting the • "Contract"means these terms and conditions,any additional terms and standard. conditions attached hereto and/or expressly incorporated herein directly or by Compliance with Law. All parties shall comply with all applicable laws in reference including,without limitation,the Company's proposal to perform performing their respective obligations hereunder. the Services to the extent such proposal is referenced or attached herein; Contract Schedule.The date of completion provided in this Contract,if any,is • "Contract Price"means the compensation to be paid by the Client to the approximate and is based upon prompt receipt by Company of all necessary Company in accordance with the terms of this Contract; information and data required to be supplied by the Client,and is subject to • "Company"means Severn Trent Environmental Services,Inc.and its weather,groundwater conditions and unforeseen site conditions. Company will permissible successors and/or assigns. Any reference to actions taken or not use all reasonable efforts to meet the stipulated completion date and completion taken by the Company shall include those actions taken nr not taken on of the Services within a reasonable time shall constitute the Company's full Company's behalf; compliance with this Contract. • "Services"means the evaluation,rehabilitation and restoration services to be Additional Work.(a)All additional labor,materials,tools,bonds, insurance, provided by the Company to the Client as identified in this Contract; equipment, licenses, taxes, transportation, surveys, engineering, other • "Uncontrollable Circumstances"means any act,event or condition to the professional services and any additional item provided by or on behalf of the extent that it materially and adversely impacts the cost of performance of,or Company as a result of Uncontrollable Circumstances(including a Change of materially and adversely affects the ability of the Company to perform the Law)shall constitute additional work extending beyond the scope of the Services Services in accordance with the terms of the Contract if such act,event or to be provided by Company hereunder. Company shall be compensated for all condition,in light of any circumstances that should have been known or such additional work commensurate with the appropriate unit prices and/or reasonably believed to have existed at the time,is beyond the reasonable hourly rates indicated in this contract and if no such prices or rates are provided, control and is not a result of the willful or negligent act,error or omission or Company shall be compensated for the fair and equitable value of such failure to exercise reasonable diligence on the part of the Company.Such additional work in an amount reasonably agreeable to the parties; (b) the acts,events or conditions may include,but shall not be limited to,the parties may add,delete,modify,alter,or accelerate the Services to be performed following:(a)an act of God,landslide,earthquake,fire,explosion,flood, hereunder,including without limitation,order changes to the Services,or require sabotage,or similar occurrence,acts of a public enemy,extortion,war, the Company to perform additional services but only through a duly executed blockade or insurrection riot or civil disturbance;or(b)a Change of Law;or change or field order. All change and field orders shall be in writing and require (c)the failure of any appropriate governmental agency or private utility to the signature and acceptance by Company prior to becoming effective. Unless provide and maintain utilities required by the Company in order to perform agreed to otherwise by the Company, all such change and field orders shall the Services,etc. reflect the parties'agreement regarding price and proposed completion date. Construction of Agreement.Whenever the context requires,the gender of all Employee Safety.Company shall be responsible for the safety,efficiency and words used in this Contract includes the masculine,feminine,and neuter. All adequacy of its employees and any vehicles and/or machinery,equipment or references to Articles and Sections refer to articles and sections of this Contract, materials furnished or utilized by the Company during the performance of and all references to Exhibits are to Exhibits attached to this all purposes. Services. Company, however, shall not assume any obligation or incur any Captions, headings,cover pages, tables of contents and footnote instructions liability for personal injury or property damage caused by (i) unsafe site contained in this Contract are inserted only to facilitate reference and for conditions not created by the Company or by any of its agents,employees and convenience and in no way define,limit or describe the scope,intent or meaning subcontractors, (ii)work being performed by other parties not related to the of any provisions of this Contract. Words and abbreviations that have well Company,(iii)the negligence of the Client,and/or(iv)the negligence of any third party not related to the Company. Agreed to: (please initial) C:\Users\jfairclothlDesktopVustin's Docwnenis2\Properties1Naples Heritage I CDD-Storm Water Storm Water Repair Bids\Sevem Trent-Naples Heritage Yellow Area Work Authorization.doc Pg.3 of 4 • Uncontrollable Circumstances.Any delay,default or termination in or of the No Third Party Beneficiaries. This Contract is entered into solely between, performance of the Services by the Company hereunder caused directly or and may be enforced only by the Company and Client;and this Contract shall indirectly by Uncontrollable Circumstances shall not be deemed a breach of this not be deemed to create any rights in third parties,including clients,suppliers,or Contract. The occurrence of such event shall suspend the obligations of the customers of a party,or to create any obligations of a party to any such third Company as long as performance is delayed or threatened thereby,and the fees parties. due hereunder shall be equitably adjusted. Restriction on Use of Reports.Any reports rendered under this Contract by the Ownership of Documents and Inventions. (a) All tracing, specifications, Company are prepared for their intended purposes only.Use of the reports and computations, notes and other original documents as instruments of service data contained therein for other purposes is at the Client's sole risk and shall,following the full payment of the Contract Price,become the property of responsibility. the Client,provided however that the Company shall be entitled to keep copies Notices.Wherever under this Contract one party is required or permitted to give of same;(b)All inventions,discoveries and copyright in work of authorship, notice to the other party,such notice shall be in writing and shall be delivered including those in formative stages, made by the Company(either alone or personally,sent by facsimile transmission,sent by nationally recognized express • jointly with the Client)shall from the time of conception or,in the case of works courier or sent by certified,registered,first class mail,postage prepaid,but not • of authorship,from the time of creation be the property of Company. by electronic mail. Any such notice shall be deemed given when actually Approval of Work Services performed by Company shall be deemed approved received when delivered either personally, by facsimile transmission or by • and accepted by Client within a reasonable period of time(but in no event longer express courier,or if mailed,on the fifth day after its mailing,postage prepaid to than thirty(30)days)after the Client has had the opportunity to review and/or the recipient party. inspect such services unless Client objects within such period of time by written Governing Law.This Contract and performance under it shall be governed by notice specifically stating the details in which Client believes such services are and construed in accordance with the laws of the state in which the client's incomplete or defective. Under all circumstances,final payment of the Contract principal office is located. Venue for any action under this Contract shall be in Price shall be deemed as conclusive evidence that the Client has accepted all the state court in the county in which the client's principal office is located. Services provided. Severahility. Each and every provision of law and government regulation Payment Terms.Unless specifically stated otherwise,all payments arc due Net required by law to be inserted in this Contract shall be deemed to he inserted and 30 days from the date of invoice. Any payment delayed beyond thirty(30)days this Contract shall read and shall be enforced as though so included herein,and front the specified due date,unless occasioned by fault of the Company,shall be if through mistake or otherwise any such provision is not inserted or is not subject to one and one-half percent(1.5%)per month interest on the unpaid correctly inserted,then upon the application of either party,this Contract shall balance. be deemed to be amended to make such insertion or correction. If this Contract Taxes. Prices do not include sales,use,excise,ad valorem,property or other contains any unlawful provision,the same shall be deemed of no effect and taxes now or hereafter imposed directly or indirectly, by any governmental shall,upon the application of either party,be deemed stricken from this Contract authority or agency with respect to this Contract. Client shall pay directly or without affecting the binding force of the remainder. • reimburse Company for any such taxes that the Company may be required to Company's Liability.In the event that claim(s)raised against the Company on pay. If the Client is a tax-exempt entity,the Client shall provide the Company account of this Contract,or on account of the Services performed hereunder, with proof of such exemption. is/arc covered under the Company's insurance policies,the Company shall not Default and Termination. This Contract may be terminated by either party be responsible for any loss,damage or liability beyond the amounts,limits and upon a seven(7)days written notice in the event of substantial failure by the conditions of such insurance policies. With respect to any other cause of action other party to perform in accordance with the terms hereof through no fault of and/or claim arising under this Contract,or otherwise arising as a result of,or on the terminating party. In the event of any termination,Company shall be paid account of,the Services provided hereunder,Company's total liability shall not for all services rendered and materials supplied(including materials specifically exceed the Contract Price. manufactured/made for the Client that have yet to be supplied)through the date Insurance. Company shall procure and maintain through the period of this of termination. For purposes of this section,the failure of the Client to pay Contract,at Company's own cost and expense(a)general liability insurance in Company in accordance with the payment terms of this Contract shall be the amount of not less than one million dollars($1,000,000)combined single considered such a substantial failure. In the event of a substantial failure on the limit for personal injury and property damage; (h) errors and omissions part of the Client,Company,in addition to the right to terminate set forth in this insurance in an amount of not less than one million dollars($1,000,000);and(c) paragraph,may also elect to suspend work until the default in question has been worker's compensation insurance in accordance with all statutory requirements. cured. No delay or omission on the part of Company in exercising any right or Successors and Assigns. Neither Client or Company shall assign,sublet, or • remedy hereunder shall constitute a waiver of any such right or remedy on any transfer any rights under or interest in(including,but without limitation,moneys future occasion. that may become due or moneys that are due)this Contract without the written • Indemnification.(a)Company agrees to indemnify and save harmless the Client consent of the other,except to the extent that any assignment, subletting or from and against any claim, demands, suits, liabilities, losses and expenses transfer is mandated by law or the effect of this limitation may be restricted by incurred by the Client as a result of Company's negligence, misconduct, or law. breach of this Contract;provided,however,that in the event that both Client and Company are determined by a finding of tact to be negligent and the negligence of both is a proximate cause of such claim for damage,then in such event,Client and Company shall each be responsible for the portion of the liability equal to its comparative share of the total negligence; (b)Client agrees to indemnify and save harmless the Company from and against any damages suffered by the Company as a result of(i)the Client's negligence,misconduct,or breach of this Contract;or(ii)changes in plans or specifications made by the Client or others; or(iii)work performed by the Client or other contractors hired by the Client. Disclosure of Information and Cooperation of the Parties. (a)The Client represents and warrants that it will furnish the Company with all items,if any, described in this Contract in a diligent and timely manner;(h)The Client further represents and warrants that it has disclosed,and it will continue to disclose,any and all information it now has,or may have in the future,to the extent that such information is relevant to the Company in performing its duties and obligations hereunder;(c)Each party hereto agrees that it will cooperate in good faith with the other and its agents,employees, representatives,officers,contractors and subcontractors to facilitate the performance of the mutual obligations set forth in this Contract. Agreed to: (please initial) C:\Users\jfaircloth\DesktopUustin's Documents2\Properties\Naples I leritage\NI I CDD-Storm Water\Storm Water Repair Bids\Severn Trent-Naples Heritage Yellow Area Work Authorizarion.doc Pg.4 of 4 SEVERN Severn Trent TRENT Environmental CERVICES Services,Inc. 5911 Country Lakes 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 Naples Heritage CDD(the"Client"): Location of Work:Naples Heritage CDD (WA#45423) Start Date: Upon Approval Anticipated Completion Date: 8 Days I. DESCRIPTION OF SERVICES: a.Fill in areas with erosin around mitered end pipes&headwalls with 57 stone and rip rap at F-59, F-62,F-63,F-82,F-87,F-97,F-112,and 6. b.Replace storm grate at box inlet F-139 c.Cement expose rebar at curb inlet F-49,F-51,F-52 d.Clean&remove debris from curb inlet F35,F39,F-123B,CS-A,CS-C,CS-D,and CS-E.. II. CONTRACT PRICE: The Client agrees to pay the Company for the services provided under this agreement as follows: Item Description Unit Cost or Total Cost Hourly Rate Lump Sum Total N/A S18,796.85 Unless stated otherwise above,payments are due in accordance with the standard terms and conditions of this Contract. If any unforeseen problems should be discovered during the performance of the above referenced service, we will notify you immediately of their nature and any additional cost that may be incurred. Unless otherwise specified,rock removal,dewatering,cover-up,and haul off are not included. Severn Trent Services is not responsible for unmarked underground lines. Any changes requested by the owner/builder are not covered by this agreement,and must be added subsequently,at the cost agreed upon by both parties. Agreed to: (please initial) C.\Users\j Caircloth\DesktupUustins D,,cwnents2\N,pertics'Naples Heritage\NH CDD-Storm Water\Storm Water Repair Bids\Severn Trent-Naples Heritage Red Area Work Authorization.doe Pg. I of 4 III. ITEMS TO BE PROVIDED BY THE CLIENT A. Provide access to premises. B. Any permit modification if applicable. THE STANDARD TERMS AND CONDITIONS on the pages following this Contract arc agreed to be a part of this Contract. Offered by: Accepted by: Severn Trent Environmental Services,Inc. Signed Signed By: By: Printed Printed Name: Name: Title: Title: Address for Notices: Date: Date: Agreed to: (please initial) Misers\jfaircloth\DesktopUustin's Documents2\Properties\Naples Heritage\NH COD-Storm Water\Stonn Water Repair Bids\Severn Trent-Naples Heritage Red Area Work Authorization.doc Pg.2 of 4 STANDARD TERMS AND CONDITIONS Definitions. As used herein, the following terms shall have the following known technical or trade meanings are used in this Contract in accordance with meanings: such recognized meanings. • 'Change of Law"the occurrence of any of the events listed in(i)through(iv) Offer to Contract. Company's proposal and the accompanying documents below,which results or can reasonably be expected to result in a direct referred to under the definition of the term"Contract" herein(including the increase to the Company's cost of providing the Services: terms and conditions set forth herein)constitute an offer to contract which may (i) there is passed or promulgated any federal,state,or other local law, be accepted by the client within thirty(30)days from the date hereof(or within statute,ordinance,rule or regulation different from those existing on the such shorter or longer period of time, if any is specified in the Company's date of the Contract;or proposal)and only on the exact terms hereof. If additional or different terms are • (ii)there is passed or promulgated any amendment to,or change in,any proposed by Client, such proposal or request shall constitute a counter other federal,state,or other local law,statute,ordinance,rule or regulation which Company may,at its option,accept by written notice to the Client signed (including any applicable sales tax regulation)following the date of the by the Company.This Contract shall not be binding on the Company unless it is Contract;or executed by the Client and a duly executed copy is delivered to the Company (iii)there comes into existence an order or judgment of any Federal,state,or within the period of time specified above. local court,administrative agency or other governmental body following Entire Agreement.The terms and conditions set out herein arc the entire terms the date of the Contract containing interpretations of law relating to the and conditions of this Contract and any prior or contemporaneous provision of the Services by the Company that is inconsistent with understandings or agreements,oral or written,are merged herein. There are no generally accepted interpretations in effect on the date of the Contract; representations or warranties, agreements, or covenants other than those or expressly set forth in this Contract. This Contract may be amended or modified (iv)(a)the imposition of any condition different from those existing on the and/or any right or obligation arising under this Contract may be waived from date of the Contract on the issuance or renewal of any official permit, time to time only by a written instrument executed by the Client and the license or necessary approval related to the provision of the Services by Company. The failure of the Company at any time to enforce any of the the Company, or (b) there shall be a suspension, termination, provisions of this Contract shall not constitute a waiver of such provision. interruption, revocation, denial or failure of renewal of any official Quality of Work and Materials. All Services to be provided hereunder shall permit, license or necessary approval related to the provision of the be performed by qualified personnel in accordance with professional standards. Services by the Company, including without limitation such of the Company acknowledges that the Client is relying on the Company to use the foregoing as are issued or approved by the USEPA,the Occupational effort,skill,diligence and quality control/quality assurance measures expected of Safety and Health Administration or any local Environmental and/or a qualified professional firm performing services of a similar nature to the Building Department; Services to be performed by the Company pursuant to this Contract. Any • "Client"means the party or parties identified as such in this Contract. In materials furnished by the Company shall be current,of merchantable quality addition,the term"Client"specifically includes the party or parties to whom and in compliance with any technical standards or specifications incorporated the Company provides Services and the party or parties responsible for into this Contract. When certain materials are specified by a reference standard, paying the Company for Services provided pursuant to this Contract; Company may select any suitable commercially acceptable material meeting the • "Contract"means these terms and conditions,any additional terms and standard. conditions attached hereto and/or expressly incorporated herein directly or by Compliance wills Law. All parties shall comply with all applicable laws in reference including,without limitation,the Company's proposal to perform performing their respective obligations hereunder. the Services to the extent such proposal is referenced or attached herein; Contract Schedule,The date of completion provided in this Contract,if any,is • "Contract Price"means the compensation to be paid by the Client to the approximate and is based upon prompt receipt by Company of all necessary Company in accordance with the terms of this Contract; information and data required to he supplied by the Client,and is subject to • "Company"means Severn Trent Environmental Services,Inc.and its weather,groundwater conditions and unforeseen site conditions. Company will permissible successors and/or assigns. Any reference to actions taken or not use all reasonable efforts to meet the stipulated completion date and completion taken by the Company shall include those actions taken or not taken on of the Services within a reasonable time shall constitute the Company's full Company's behalf; compliance with this Contract. • "Services"means the evaluation,rehabilitation and restoration services to be Additional Work.(a)All additional labor,materials,tools,bonds, insurance, provided by the Company to the Client as identified in this Contract; equipment, licenses, taxes, transportation, surveys, engineering, other • "Uncontmllahie Circumstances"means any act,event or condition to the professional services and any additional item provided by or on behalf of the extent that it materially and adversely impacts the cost of performance of,or Company as a result of Uncontrollable Circumstances(including a Change of materially and adversely affects the ability of the Company to perform the t.aw)shall constitute additional work extending beyond the scope of the Services Services in accordance with the terms of the Contract if such act,event or to be provided by Company hereunder. Company shall be compensated for all condition,in light of any circumstances that should have been known or such additional work commensurate with the appropriate unit prices and/or reasonably believed to have existed at the time,is beyond the reasonable hourly rates indicated in this contract and if no such prices or rates are provided, control and is not a result of the willful or negligent act,error or omission or Company shall be compensated for the fair and equitable value of such failure to exercise reasonable diligence on the part of the Company.Such additional work in an amount reasonably agreeable to the parties; (b)The acts,events or conditions may include,but shall not be limited to,the parties may add,delete,modify,alter,or accelerate the Services to be performed following:(a)an act of God,landslide,earthquake,fire,explosion,flood, hereunder,including without limitation,order changes to the Services,or require sabotage,or similar occurrence,acts of a public enemy,extortion,war, the Company to perform additional services but only through a duly executed blockade or insurrection riot or civil disturbance;or(h)a Change of Law;or change or field order. All change and field orders shall be in writing and require (c)the failure of any appropriate governmental agency or private utility to the signature and acceptance by Company prior to becoming effective. Unless provide and maintain utilities required by the Company in order to perform agreed to otherwise by the Company, all such change and field orders shall the Services,etc. reflect the parties'agreement regarding price and proposed completion date. Construction of Agreement. Whenever the context requires,the gender of all Employee Safety.Company shall be responsible for the safety,efficiency and words used in this Contract includes the masculine,feminine,and neuter. All adequacy of its employees and any vehicles and/or machinery,equipment or references to Articles and Sections refer to articles and sections of this Contract, materials furnished or utilized by the Company during the performance of and all references to Exhibits are to Exhibits attached to this all purposes Services. Company, however, shall not assume any obligation or incur any Captions, headings, cover pages, tables of contents and footnote instructions liability for personal injury or property damage caused by (i) unsafe site contained in this Contract are inserted only to facilitate reference and for conditions not created by the Company or by any of its agents,employees and convenience and in no way define,limit or describe the scope,intent or meaning subcontractors, (ii)work being performed by other parties not related to the of any provisions of this Contract. Words and abbreviations that have well Company,(iii)the negligence of the Client,and/or(iv)the negligence of any third party not related to the Company. Agreed to: (please initial) C:\Users\jfaircloth\DesktopUustin's Docurnents2\Properties\Naples Heritage\NH COD-Stonn Water\Stonn Water Repair Bids\Severn Trent-Naples Heritage Red Area Work Authorization.docPg.3 of 4 Uncontrollable Circumstances.Any delay,default or termination in or of the No Third Party Beneficiaries. This Contract is entered into solely between, performance of the Services by the Company hereunder caused directly or and may be enforced only by the Company and Client;and this Contract shall indirectly by Uncontrollable Circumstances shall not be deemed a breach of this not be deemed to create any rights in third parties,including clients,suppliers,or Contract. The occurrence of such event shall suspend the obligations of the customers of a party,or to create any obligations of a party to any such third Company as long as performance is delayed or threatened thereby,and the fees parties. due hereunder shall be equitably adjusted. Restriction on Use of Reports.Any reports rendered under this Contract by the Ownership of Documents and Inventions. (a) All tracing, specifications, Company are prepared for their intended purposes only.Use of the reports and computations, notes and other original documents as instruments of service data contained therein for other purposes is at the Client's sole risk and shall,following the full payment of the Contract Price,become the property of responsibility. the Client,provided however that the Company shall be entitled to keep copies Notices.Wherever under this Contract one party is required or permitted to give of same;(b)All inventions,discoveries and copyright in work of authorship, notice to the other party,such notice shall be in writing and shall be delivered including those in formative stages, made by the Company(either alone or personally,sent by facsimile transmission,sent by nationally recognized express jointly with the Client)shall From the time of conception or,in the case of works courier or sent by certified,registered,first class mail,postage prepaid,but not of authorship,from the time of creation be the property of Company. by electronic mail. Any such notice shall be deemed given when actually Approval of Work.Services performed by Company shall be deemed approved received when delivered either personally, by facsimile transmission or by and accepted by Client within a reasonable period of time(but in no event longer express courier,or if mailed,on the fifth day after its mailing,postage prepaid to than thirty(30)days)after the Client has had the opportunity to review and/or the recipient party. inspect such services unless Client objects within such period of time by written Governing Law.This Contract and performance under it shall be governed by notice specifically stating the details in which Client believes such services are and construed in accordance with the laws of the state in which the client's incomplete or defective. Under all circumstances,final payment of the Contract principal office is located. Venue for any action under this Contract shall be in Price shall be deemed as conclusive evidence that the Client has accepted all the state court in the county in which the client's principal office is located. Services provided. Severability. Each and every provision of law and government regulation Payment Terms.Unless specifically stated otherwise,all payments are due Net required by law to be inserted in this Contract shall be deemed to be inserted and 30 days from the date of invoice. Any payment delayed beyond thirty(30)days this Contract shall read and shall be enforced as though so included herein,and from the specified due date,unless occasioned by fault of the Company,shall be if through mistake or otherwise any such provision is not inserted or is not subject to one and one-half percent(1.5%)per month interest on the unpaid correctly inserted,then upon the application of either party,this Contract shall balance. be deemed to be amended to make such insertion or correction. If this Contract Taxes. Prices do not include sales,use,excise,ad valorem,property or other contains any unlawful provision, the same shall be deemed of no effect and taxes now or hereafter imposed directly or indirectly, by any governmental shall,upon the application of either party,be deemed stricken from this Contract authority or agency with respect to this Contract. Client shall pay directly or without affecting the binding force of the remainder. reimburse Company for any such taxes that the Company may be required to Company's Liability.In the event that claim(s)raised against the Company on pay. If the Client is a tax-exempt entity,the Client shall provide the Company account of this Contract,or on account of the Services performed hereunder, with proof of such exemption. is/arc covered under the Company's insurance policies,the Company shall not Default and Termination. This Contract may be terminated by either party be responsible for any loss,damage or liability beyond the amounts,limits and upon a seven(7)days written notice in the event of substantial failure by the conditions of such insurance policies. With respect to any other cause of action other party to perform in accordance with the terms hereof through no fault of and/or claim arising under this Contract,or otherwise arising as a result of,or on the terminating party. In the event of any termination,Company shall be paid account of,the Services provided hereunder,Company's total liability shall not for all services rendered and materials supplied(including materials specifically exceed the Contract Price. manufactured/made for the Client that have yet to be supplied)through the date Insurance. Company shall procure and maintain through the period of this of termination. For purposes of this section,the failure of the Client to pay Contract,at Company's own cost and expense(a)general liability insurance in Company in accordance with the payment terms of this Contract shall be the amount of not less than one million dollars($1,000,000)combined single considered such a substantial failure. In the event of a substantial failure on the limit for personal injury and property damage; (b) errors and omissions part of the Client,Company,in addition to the right to terminate set forth in this insurance in an amount of not less than one million dollars($1,000,000);and(c) paragraph,may also elect to suspend work until the default in question has been worker's compensation insurance in accordance with all statutory requirements. cured. No delay or omission on the part of Company in exercising any right or Successors and Assigns. Neither Client or Company shall assign, sublet, or remedy hereunder shall constitute a waiver of any such right or remedy on any transfer any rights under or interest in(including,but without limitation,moneys future occasion. that may become due or moneys that are due)this Contract without the written Indemnification.(a)Company agrees to indemnify and save harmless the Client consent of the other,except to the extent that any assignment, subletting or from and against any claim, demands, suits, liabilities, losses and expenses transfer is mandated by law or the effect of this limitation may he restricted by incurred by the Client as a result of Company's negligence, misconduct, or law. hreach of this Contract;provided,however,that in the event that both Client and Company are determined by a finding of tact to be negligent and the negligence of both is a proximate cause of such claim for damage,then in such event,Client and Company shall each be responsible for the portion of the liability equal to its comparative share of the total negligence; (b)Client agrees to indemnify and save harmless the Company from and against any damages suffered by the Company as a result of(i)the Client's negligence,misconduct,or breach of this Contract;or(ii)changes in plans or specifications made by the Client or others; or(iii)work performed by the Client or other contractors hired by the Client. Disclosure of Information and Cooperation of the Parties. (a)The Client represents and warrants that it will furnish the Company with all items,if any, described in this Contract in a diligent and timely manner;(b)The Client further represents and warrants that it has disclosed,and it will continue to disclose,any and all information it now has,or may have in the future,to the extent that such information is relevant to the Company in performing its duties and obligations hereunder;(c)Each party hereto agrees that it will cooperate in good faith with the other and its agents, employees, representatives,officers,contractors and subcontractors to facilitate the performance of the mutual obligations set forth in this Contract. Agreed to: (please initial) C\Users\jfaircloth\Desktop'Justin's Doeutnents2\Properties\Naples Heritage\NI(CDD-Storm WatetiStonn Water Repair Bids\Severn Trent-Naples Heritage Red Area Work Authoriaalion.docPg.4 of 4 (*) s'r SPECIALIZED Proposal PLUMBINI3 TECHNOLOGIES 5701 Houchin Street,Unit 8 Date Bid# Naples,FL 34109 7/25/20(4 14-804 www.SPTplumbing.com/CFC58001/65-047368 Name/Address Job Name Severn Trent Management Serices Naples Heritage Golf and Country Club Attn:Mr.Justin Faircloth 8150 Heritage Club Way 5911 County Lakes Drive NAples,Florida 14112 Fort Myers,Florida 33905 Justin.Faircloth@SISServiccs.com Description Total Reference:Naples Heritage CDD-Stormwater Project 0.00 Dear Mr.Faircloth, Specialized Plumbing Technologies proposes to perform the following work per the attached information sent to us.SPT performed a walk thru at the site to get familiar with the project. our scope of work is as follows: YELLOW-Total Price$15,265.00 Asset tt 3- Double Mitered end to be cleared of grub vegetation and debris. Most of the debris is pine needles.We will spray a weed killer first,then clear the vegetation 4- Double Mitered end to be cleared of grub vegetation and debris. Most of the debris is pine needles.We will spray a weed killer first,then clear the vegetation 10-Mitered end to have the debris removed. *The rock around the top will be removed and new fill and sod will be installed.The rock in the water will be rearranged. F10-Mitered end to have the sediment flushed from the structure and upstream pipe.We will also clear the grub vegetation. *We will spray a weed killer first,then clear the vegetation.We will remove the debris from the pipe with Vac-Con truck. F34-Mitered end to have new clean compacted fill. *We will rearranged the rock in the water.New fill will be compacted and sod will be installed. F43-Mitered end has a crack almost half way up. *The rock in the water will be rearranged.If a new mitered end is required the cost is$5,000.00 This can be deducted from the Yellow price above if not done now. F75-Box Inlet will have the leaves removed. F 127-Pond pipe end will have the debris removed. *Most of the debris is pine needles.We will spray a weed killer first,then clear the vegetation. F131-Head Wall to have stone stabilized. *We will remove the stone and install new fill and sod. F134-Mitered end to be cleared of grub vegetation and debris. *Most of the debris is pine needles.We will spray a weed killer first,then clear the vegetation. F142-Mitered end to he cleared of grub vegetation and debris. *We will spray a weed killer first,then clear the vegetation. CSB-Control structure will have the PVC removed. CFS-Control structure will have the debris removed. Phone# 239.597.5252 Fax# 239.598.9043 wwwsptplumbing.com ( ) sr SPECIALIZED Proposal PLUMBING TECHNOLOGIES 5701 Houchln Street,Unit 8 Date Bid# Naples,FL 34109 7/25/2014 14-804 www.SPTpi u mb i ng.com/CFC58001/65-047368 Name/Address Job Name Severn Trent Management Serices Naples Heritage Golf and Country Club Attn:Mr.Justin Faircloth 8150 Heritage Club Way 5911 County Lakes Drive NAples,Florida 34112 Fort Myers,Florida 33905 Justin.Faircloth@STSServices.com Description Total RED-Total price S 28,390.00 Asset# 6- Mitered end has heavy erosion.Add clean till dirt&compact *We will rearranged the rock in the water.New fill will be compacted and sod will be installed. F15-Flared End Heavy erosion and Broken.Demo and Reconstruct the end *We will remove the grub,grass and repair the end. F35-Head wall has sediment and vegetation to be removed. *We will clear the grub vegetation and flush the sediment from the structure and pipe with a Vac-con truck.This work will take place in the winter when the pond is lower. F39-Head wall has sediment and vegetation to be removed. *We will clear the grub vegetation and flush the sediment from the structure and pipe with a Vac-con truck.This work will take place in the winter when the pond is lower. F49-Curb inlet has exposed rebar. *We will remove the entire structure and replace with a new structure. F5I-Curb inlet has exposed rebar. *We will remove the entire Structure and replace with new. F52-Curb inlet has exposed rebar. *We will remove the entire Structure and replace with new. F59- Mitered end has heavy erosion. *Add till sod and rep-rap. F62-Mitered end has heavy erosion. *Add fill sod and rep-rap. F63-Mitered end has heavy erosion. *Add till sod and rep-rap. F82-Mitered end has heavy erosion. *Add fill sod and rep-rap. F87- Mitered end has heavy erosion. *Add till sod and rep-rap. F97-Mitered end has heavy erosion. *Add fill sod and rep-rap. F 112- Pond Pipe end has enomiaus rocks and dbris to be removed and add fill. *Add fill sod and rep-rap. Phone# 239.597.5252 Fax# 239.598.9043 www.sptplumbing.com � J SPIT SPECIALIZED Proposal PLUMBING TECHNOLOGIES 5701 Houchin Street,Unit 8 Date Bid# Naples,FL 34109 7/25/2014 14-804 www.SPTplumbing.com/CFC58001/65-047368 Name/Address Job Name Severn Trent Management Scrices Naples Heritage Golf and Country Club Attn:Mr.Justin Faircloth 8150 Heritage Club Way 5911 County Lakes Drive NAples,Florida 34112 Fort Myers,Florida 33905 J ustin.Fairc loth @STSServices.com Description Total F123B-Head wall has sediment and light vegitation. *We will clear the grub vegetation and flush the sediment from the structure and pipe with a Vac-con truck. F139-Rox inlets steel grate doesn't fit. *Remove the grate and install a new grate. CSA-Contol structure has heavy sediment blocking skimmer. *We will remove the PVC and excavate below the skimmer. CSC-Contol structure has heavy sediment blocking skimmer. *We will remove the PVC and excavate below the skimmer. CSD-Contol structure has heavy sediment blocking skimmer. *We will excavate below the skimmer. CSE- Contol structure has heavy sediment blocking skimmer. *We will excavate below the skimmer. Terms:20%upon signing,remainder due within 10 days after receiving the invoice. Please feel free to visit our web site for information regarding CIPP lining at www.sptplumbing.com.Please contact our office if you have any further questions or wish to schedule the work to be performed. This quote is valid for 90 days. Respectfully submitted, 0.00 tim Stover South Sales Manager ACCEPTANCE OF PROPOSAL AND AUTHORIZATION TO PROCEED The above proposal is accepted and Specialized Plumbing Technologies is authorized to proceed with the work as described and payment is hereby guaranteed as noted above. Please return fax signed authorization to 239-598-9043 or c-mail to TimS@SPTplumbing.com. Date P.O. Authorized Signature Printed Name Title 0.00 Phone# 239.597.5252 Fax# 239.598.9043 www.sptplumbing.com 0 ,4, "" :; Landshore Enterprises, LLC: ' £r,s"'F� Shoreline&Stream bank Protection/Stabilization/Reclamation Design-Build(Engineering, Surveying,Permitting, Construction) d/b/a Erosion Restoration,LLC Reinforcing America's Soils for Over a Decade Proposal Prepared For: NAPLES HERITAGE CDD c/o Severn Trent Services Attn: Mr. Justin Faircloth Fort Myers, FL Submitted on: 7/7/2014 Landshore Enterprises,LLC - 5601 Powerline Road,Suite 306,Fort Lauderdale,Florida,33309 St Tel:(954)327-3300 • ,i Fax:(954)533-1556 • RI Email:info@landshore.com f`! v i''^^^ L andshore Enterprises, 1L�.F Shoreline&Streambank Protection/Stabilization/Reclamation Design-Auild(Engineering,Surveying,Permitting,Construction.) el/b/a Erosion Restoration Reinforcing America's Soils for Over a Decade Naples Heritage CDD PROPOSAL #2089 c/o Severn Trent Services Attn;Mr.Justin Faircloth Fort Myers,FL Date: 7/7/2014 JOB DESCRIPTION Per Storm water Project Report IT EMIZEDBROPOSAL:TIME AND MATERIALS ASSET# ASSET DESCRIPTION PIPE SiZE CURRENT CONDITION TOTAL, 6 MITERED END 30' HEAVY EROSION P15 FLARED END 18" HEAVY EROSION,BROKEN F35 HEAD WAI.L 36' 24"SEDIMENT,LIGHT VEG. F39 HEAD WALL 36" 10"SEDIMENT F49 CURB INLET 15",18" EXPOSED REBAR '.. F51 CURB INLET 15" EXPOSED REBAR P52 CURB INLET 15",18' EXPOSED REBAR P59 MITERED END 36" HEAVY EROSION F62 MITERED END 18" HEAVY EROSION F63 MITERED END 36" HEAVY EROSION FB2 MITERED END 24" HEAVY EROSION F87 MITERED END 18" HEAVY EROSION F97 MITERED END 24" HEAVY EROSION F112 POND PIE END 24" HEAVY EROSION F123B HEAD WALL 30" B"SEDIMENT/LIGHT VEG. P139 BOX INLET 30" STEEL GRATE DOESN'T FIT CS A CONTROL STRUCTURE 24' HEAVY SEDIMENT BLOCKING SKIMMER CS C CONTROL STRUCTURE 24" HEAVY SEDIMENT BLOCKING SKIMMER CS D CONTROL STRUCTURE 24" HEAVY SEDIMENT BLOCKING SKIMMER CS CONTROL STRUCTURE 24" HEAVY SEDIMENT BLOCKING SKIMMER ASSET# ASSET DESCRIPTION PIPE SIZF, CURRENT CONDITION TOTAL 3 DOUBLE MITERED END 18",24" LIGIIT VEGETATION 4 DOUBLE MITERED END 36" LIGHT VEGETATION 10 MITERED END 36" LIGHT DEBRIS(ROCKS) F10 MITERED END 18" LIGHT VEGETATION/i"SEDIMENT P34 MITERED END 18" LIGHT EROSION F43 MITERED END 18" CRACKED MITERED END 175 BOX INLET 19",24" LIGHT VEGETATION.OAK LEAVES F127 POND PIPE END 30" LIGHT DEBRIS P131 HEAD WALL 36" NEWLY ADDED FILL.LIGHT EROSION F134 MITERED END 1.8" LIGHT VEGETATION P142 MITERED END 18" LIGHT VEGETATION CSH CONTROL STRUCTURE 30" PVC SCREEN CS IT CONTROL STRUCTURE 30" LIGHT DEBRIS SUB-TOTALYELLOW REAS 52,415.00 M0811.17.ATI ON $1,400.00 GRAND TOTAL 516.661.00 Landshore Enterprises,LLC • 5601 Powerline Road,Suite 306,Fort Lauderdale,Florida 33309 Tel:(954)327-3300 • Fax:(954)533-1556 • Email:info @landshore.cam bH 'f andsihore Enterprisesy rzc Shoreline&.Streambank Protection/Stabilization/Reclamation Design-Build(Engineering,Surveying,Permitting,Construction) d/b/a Erosion Restoration Reinforcing America's Soils for Over a Decade PAYMENT SCHEDULE. Landshore Enterprises'payment policy Is as follows; 50%Booking fee 5046 Completion Date "Invoice is due upon receipt• SPECIAL CONDITIONS . ,.. E <<- The client is responsible for survey,engineering and permitting with all government agencies having Jurisdiction over the subject site.Actual prices may vary due to pre-existing geotechnical,or hydrographic conditions which will require different equipment, labor and material. No changes to the approved contract will be made without written approval from the client Unless the client provided comprehensive and conclusive engineering report or paid for the same services to Landshore Enterprises,LLC,the stipulated above price does not include rock removal,addition of suitable material as necessary,heavy equipment,land surveying,bathymetric survey,geotechnical exploration,engineering or permitting. Landshore Enterprises,LLC is not responsible for damage to utilities if as-built drawings or locations are not provided by the client Landshore Enterprises,I.LC reserves the right to change this estimate unless an agreement Is reached within 90 days of the original estimate date. This Is an estimate only.This Is not a contract.This estimate is for completing the job described above,based on our evaluation.It does not Include unforeseen price Increases or additional labor and materials which may be required should problems arise, 6ii • ' p sentative Signature Date Landshore Enterprises Representative Signature Date Landshore Enterprises,LLC - 5601 Powerllne Road,Suite 306,Fort Lauderdale,Florida 33309 Tel;(954)327-3300 • Fax:(954)533-1556 • Email:info @landshore.corn Naples Heritage CDD - Stormwater Project - Immediate Corrective Action Items Asset R n..rt De u npl°,/ TYPe Ftpe Size Current Gandhian ve.omrnmtuion ut Corecrb.c numa 3 Double MRe.d Ind Itl'24' tight eertatlen Clete and dub verbatim 4 Double Waved Ind 36" taint vedtatten dear and pub vpkatlee 10 Mternd Ind M" wets debris(redo) Rarmm*Ws FIE Mkand End U" light vegetation/r mermen Hush fadbnanl from uructues&upstream pipe pear dub regeta0on, F34 Mildred Ind 1E' light melon Add Man$1&compact F43 Mitered IM tg" Clacked Mitred IM Dame!1 r.CantruCt mitered end It creek/nears atone • P74 Ion rneut lr.24` not vedtatton.Ode teem. ferndee leave. 0117 perrd Ftpe Led 10' Irvin debts Remove dells f131 Head Wag I6" HawN added Rt t.Uht erakn Sobel*"f11 it.melon eontfnuss F131 Wand Ind ti' light rertenon peat all rib visitation Pt/2 MItwod IN 1Q' U M weilAtico Cleat oMarubeertatun CS Control Structure SO' PVC unpin Remove PVC CS F canto!ltrutttre Id" fight delete Emcee daub • • • • • • • • • MSc'.A Asset Description /In411ype In Site Current Condition Re commendation Of Camective Action 6 Mitered End 30" Heavy Erosion Add clean fill&Compact F15 Flared End IA" Heavy Erosion.&raker. Demo&reconstruct end F35 Head Wall 36" 1T'Sediment,light VetHarlon Flush sediment from structure&upstream pipe.Close and grub vegetation. F39 Mead Wall 16" Id'Sediment Flush sediment from structure&upstream pipe. F49 Curb Inlet 15',18" Exposed Reber Demo&reconstruct lid. Fit Curb IMet 15' Exposed Aehar Demo&reconstruct lid. F51 Curb Inlet 15",18" Exposed Aebar Demo&reconstruct lid. F59 Mitered End 36" Heavy Erosion Add Clean All&compact F61 Mitered End 1g" Heavy Erosion Add dean All&compact F63 Mitered End 36" Heavy Erosion Add clean fill&compact FEZ Mitered End 24" Heavy Erosion Add clean All&compact FBI Mitered End 18" Heavy Erosion Add dean nil&compact F97 Mitered End 24" Ileovy Erosion Add clean All&compact F112 Pared Ply End 34" Heavy Erosion Add clean All&compact F1130 head Wall 20" 8"Sediment/Ught Vegetation Flush sediment Imo,structure&upstream pipe.Cleer end grub vegetation. F 139 8m Inlet 10" Steel grate doesn't At. Remove and replace with correct slat grate. CS A Control Structure 74' Heavy sediment blacking skimmer Remove PVC Ctea vet e around/under skimmer CSC Control Structure 24' Heavy sediment blacking Skimmer Remove lNC.Excavate around I under Skimmer CS 0 Control Structure 24' Wavy sediment blocking skimmer Excavate around/under skimmer CS Control Structure 24' Heavy sediment blocking skimmer Excavate nrnood/under skimmer • • • • • Form W•19 Request for Taxpayer Give Form to the (Rev.August 2013) Identification Number and Certification requester.Do not Department of the Treasury send to the IRS. Internal Revenue Service Name(as shown on your income tax return) LANDSHORE ENTERPRISES,LLC N Business name/disregarded entity name,if different from above • d to is • • °a Check appropriate box for federal tax classification: Exemptions(see inslruetlons): S. ❑individual/sole proprietor ❑ C Corporation ❑S Corporation ❑ Partnership ❑Trust estate o Ss Exempt payee code(if any) o ❑ United liability company.Enter the tax classification(C=C corporation,S=S corporation,P=partnership)s P Exemption from FATCA reporting c 2 code(if any) d 0 Other(sea instructions)• • • im Address(number,street.and apt.or suite no.) Requester's name and address(option° 5601 POWERLINE ROAD,SUITE 306 N City,state,and ZIP code N FORT LAUDERDALE,FL 33309 Ust account number(s)here(optionary Part I Taxpayer Identification Number(TIN) Enter your TIN in the appropriate box.The TIN provided must match the name given on the"Name"line F Social security number to avoid backup withholding.For individuals,this is your social security number(SSN).However,for a • -I resident alien,sole proprietor,or disregarded entity,see the Part I instructions on page 3.For other entities,it is your employer identification number(EIN).If you do not have a number,see How to get a TIN on page 3, Note.If the account is in more than one name,see the chart on page 4 for guidelines on whose Employer identification number • number to enter. • 0 3 - 0 4 7 9 2 6 8 Part II Certification • Under penalties of perjury,I certify that: I. The number shown on this form is my correct taxpayer identification number(or I am waiting for a number to be issued to me),and • 2. I am not subject to backup withholding because:(a)I am exempt from backup withholding,or(b)1 have not been notified by the Internal Revenue Service(IRS)that I am subject to backup withholding as a result of a failure to report all interest or dividends,or(c)the IRS has notified me that I am no longer subject to backup withholding,and 3. 1 am a U.S.citizen or other U.S.person(defined below),and • 4.The FATCA code(s)entered on this form(if any)indicating that I am exempt from FATCA reporting is correct, Certification instructions.You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return.For real estate transactions,item 2 does not apply.For mortgage interest paid,acquisition or abandonment of secured property,cancellation of debt,contributions to an individual retirement arrangement(IRA),and generally,payments other than interest and dividends,you are not required to sign the certification,but you must provide your correct TIN.See the instructions on page 3. Sign signature of Here U.S.person► ( A J - ")___. Date► 12 1 C‘ ' 1 Lk General Instructions withholding tax un foreign partners'share of effectively connected income,and Section references are to the Internal Revenue Code unless otherwise noted. 4.Certify that FATCA cadets)entered on this form(if any)indicating that you are exempt from the FATCA reporting,is correct. Future developments.The IRS has created a page on IRS.gov for information Note.If you are a U.S.person and a requester gives you a form other than Form about Form W-9,at www.irs,gov/w9.Information about any future developments W-9 to r uest our TIN, affecting Form W-9(such as legislation enacted after we release it)will be posted your you must use the requester's form d it is substantially on that page. similar to this Form W-9. Definition of a U.S.person.For federal tax purposes,you are considered a U.S. Purpose of Form person if you are: A person who is required to file an information retum with the IRS must obtain your •An individual who is a U.S.citizen or U.S.resident alien, correct taxpayer identification number(TIN)to report,for example,income paid to •A partnership,corporation,company,or association created or organized in the you,payments made to you in settlement of payment card and third party network United States or under the laws of the United States, transactions,real estate transactions,mortgage interest you paid,acquisition or •An estate(other than a foreign estate),or abandonment of secured property,cancellation of debt,or contributions you made to an IRA. •A domestic trust(as defined in Regulations section 301.7701-71. Use Form W-8 only if you are a U.S.person(Including a res,dent alien),to Special rules for partnerships.Partnerships that conduct a trade or business in provide your correct TIN to the person requesting it(the requester)and,when the United States are generally required to pay a withholding tax under section applicable,to: 1446 on any foreign partners'share of effectively connected taxable income from 1,Certify Ihet the TIN you ere giving is correct(or you are wailing tun a number such business.Further,It certain cases where a Form W-9 has not been received, to be issued),to rules under section 1446 require a partnership to presume that a partner Is a foreign person,and pay the section 1448 withholding tax.Therefore,if you are a 2,Certify that you are not subject to oackup withholding,or U.S.person that is a partner In a partnership conducting a trade or business in the 3.Claim exemption from backup withholding it you are a U.S,exempt payee.If United States,provide Form W-9 to the partnership to establish your U.S.status applicable,you are also certifying that as a U.S,person,your allocable share of and avoid section 1446 withholding on your share of partnership income. any partnership income from a U.S.trade or business is not subject to the Cat.No.10231X Form W-9(Rev.8-2013) • Naples Heritage Community Development District Financial Report September 30 2094 Prepared by SEVERN TRENT GP RV IC FS Naples Heritage Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet-General Fund Page 1 Statement of Revenues,Expenditures and Changes in Fund Balances General Fund Page 2-3 SUPPORTING SCHEDULES Cash and investment Report Page 4 Non-Ad Valorem Special Assessments Page 5 Check Register Page 6 Naples Heritage Community Development District Financial Statements (Unaudited) September 30,2014 O O G d O) N e- a) N er r- 0 0 h ) C V CO O (N CO O 0 C) M) co Q Q) q r) W V co 'C O W N co Oco er er er I- to fR to to N cr O a) N W N cvl Z Z w a . a To d 0 .Y CO U ft) O CO a N C _1 2 (n D U o 2 m V a 2 U Q 2 etl a) co Op) W_ y O J W U C m N i m ■- U IL m CO H U cy5 •• W m d =� 2 6 c a) ii a J rCI c (a Q N , E O Q F J G a a) n LL J p m ° O .J J 1- L r 2 J J .- J ' Q < y v 0 a a Lt 0 j< D 0 0 Q 1- J I- LL 1- 1- U U) a c ,a- III E o Q O r) �- o ce (3.) 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It g O W 0 O d 2 yyW O p� m W a _ c 4�i V m c = id U > p� E E K tV D 7y }rj 2 y Z a 8 1° ° c r� c x p N 'C a W a ¢ a W ~ yp m Q i A fA i C i I 3 A m a s 1 9 W m A m t c p C NY 0 o Q o Q 0 g c d v di m c ` r J z 2 z p w` uzl E a LL a_ a s a. a ¢ U a J 5 s ¢ 0. Q O c c 0 y O ~ W < o CC O W H Z U Page 2 Z _ � , 0 , Ea , , N Cr? 0 w a to 4 w U w m CD r. N. r. Q j OD 00 c76 OS r 0 m a) K 5 Q co co--' M Co ‘1. co co CO co M Q W O a 7 O O co N CO CO N OS co W CO Q W , , 1 , , y t^O , Co co N Co O W 1- m W W_ Co M M w a N m 'Co d J 0 2 0 2�2 a e e 0 0 0 0 0 0 m N O O r co O O umi C 0 t0 U oP W Of OWO co V O O O O co O O cf t0 QQZ CO O�Q , O Q C 3 NLL N O p W CO N 0 O O O C C V w Q O1 tD 'D °f O 0 v O o_ w Oi CO O) 7 N O O Vl Z Z " w c? N N Q 0 01 O < Q Ac,) > LL to V � O WN wt0 E ~Q J D r Of D W O N n O i CO 0 1.0 N 0 o 0 0 Oi W O C O oi ONl M M tD Co N N O- ~ CO CO co 0 Q Q z c in U co a W a F- 0 8 {ND 10 iO WO-CI O o 0 o Lr, w w N 4) m d LL 3 w > w w C L Y O O O O O p V 6.- p D CO O O O O O O O CO 0 O O O 0 O O O tD CO LL- o w O x 0 0 0 0 0 � O 0 0 o Co ri co M Z CD tt- O 2 ,.,t Q m C 4 w E O O N J G I- O O V CO CO tu CO =r 0 O O tD to tp a Z O D Q Q 01 M en n 0 U Co c > w CO w N CD m v to O p z E w m m 1.., x O7 c N N -0 y <f Ur N a m n 0 w ? O ti O O a E V E a '6 .c z 0 0 g Z_ _i N a W cn N O C O p N w w o. N m O to U' O M (X j i m e cc L, 7 c axi C7 n m w W p 0 o m m D V c V U V v N U C i Z W D c Z o Z c Z Z CO a o o d a v K �. - =_` - _ g ° J E 9 E o o « m Z m J X O x c0 J m m 01 a Q. d O d O Q W U Q O O co rt Q E 1- ac ,- o I- o m > > Z U I- O Z a LL Page 3 Naples Heritage Community Development District Supporting Schedules September 30,2014 Naples Heritage Community Development District Cash and Investment Report September 30,2014 ACCOUNT NAME BANK NAME YIELD MATURITY BALANCE GENERAL FUND Checking Account-Operating SunTrust 0.07% $ 392,449 Checking Account-Operating BankUnited 0.00% 1,250 Money Market Account BankUnited 0.35% 41,482 Total $ 435,181 Report Date:10/29/2014 Prepared By: Page 4 Severn Trent Management Services Naples Heritage Community Development District Non-Ad Valorem Special Assessments (Collier County Tax Collector-Monthly Collection Distributions) For the Fiscal Year Ending September 30,2014 Total Discount/ Collection Gross Net Date Net Amount (Penalties) Costs Amount Received Received Amount Received Assessments Assessments Levied $ 59,925 $59,925.00 Allocation % 100% 11/08/13 $ 522 $ 30 $ 11 $ 563 $ 522 11/15/13 9,455 402 193 10,050 9,455 11/27/13 18,840 801 384 20,025 18,840 12/13/13 16,905 712 345 17,962 16,905 01/03/14 1,583 53 32 1,668 1,583 02/07/14 4,976 135 102 5,213 4,976 03/03/14 1,233 17 25 1,275 1,233 03/28/14 1,595.68 3.00 32.57 1,631.25 1,595.68 04/30/14 1,200.44 (6.19) 24.50 1,218.75 1,200.44 05/30/14 75.70 (2.25) 1.55 75.00 75.70 06/20/14 246 (7) 5 244 246 TOTAL $ 56,632 $ 2,138 $ 1,156 $ 59,925 $ 47,305 %COLLECTED 100% Report Date: 10/29/2014 Prepared by: Severn Trent Management Services Page 5 c ° I8888 :284' 88PO83RASP St w 8 6 t7 to O (0 N O t0 N 00 N t0 i0 N N n to in N H fo n ! 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Z Z i `0 J J J w VOL/ 0 - O CO 6 L. 4 - - -, a (a - -- -7i -Ui 4 4 4 O LL G 2 ro CO 0 0 0 0 °a 0 d 4' 4' t? 3 0 0 0 0 CC n to n n n n I7 n n n n n n n to 01 0 0 0 0 O O O O n 0 0 0 0 M cif N N N N /V N N N N - c., N N N .- cc a' 7. U ¢ K Ir LL W a' M LU W W W W W W W W W W W W CO CO to CO to N CO W CO N 0 CO Q Q < 4 4 Q Q Q 4 1- z z z 1- F- /- I- z I- I- I- Z Z Z Z Z Z Z Z Z Z Z Z W W W W W W W W W W W W i z 2222 2222 Z ZZ Z Z Z Z Z ZZ Z>_ z>_ Z Z 00p 00p CKK 0U 0R 0 r d p Z Z Z Z Z Z Z Z Z Z Z Z U I U J W W W W W W W W U J W > 1- Z 1- I- 1- 1- 1- I- z 1- 1- !- 94zzzz Z z Z z WZZ 4 W N f 1xK K ceX z X cerc E re W W W W w IT' W W W W w W W W Z O N m & , N N N 0 � 0 io io N N n N io 0 Y T A D O O O O O O N N N N c i O O O O N N U O ; 0 0 0 0 0 0 r•-• 0 0 1.... 0 m N M t7 1h 47 1 N § W W R. cc 2 z° 0 0 0 0 0 08888 00 00 0 00 00 00 00 0 0 ta Page 6 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT Motion: Assigning Fund Balance as of 9/30/14 The Board hereby assigns the FY 2014 Reserves as follows: Operating Reserve $14,407 Reserves-Roads and Lakes $10,000 • NAPLES HERITAGE CDD GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE PERIOD ENDING SEPTEMBER 30,2014 BUDGET AMENDMENT Variance with Final Budget Amended Proposed Final YID Positive Budget#1 Amendrnent#2 Budget#1 Actual (Negative) $ $ $ 5 $ REVENUE Interest-Investments 100 275 275 Interlocal Agreement 810,000 - 810,000 810,000 - Special Assmnts-Tax Collector 59,925 - 59,925 59,925 - Special Assmnts-Discounts (2,397) (2,397) (2,137) 280 TOTAL REVENUE 861,528 - 867,528 867,788 260 • EXPENDITURES ADMINISTRATIVE P/R-Board of Supervisors 5,000 5,000 4,800 200 FICA Taxes 383 383 367 16 ProfServ-Engineering 1,000 1,000 950 60 • ProfServ-Field Management 500 500 - 500 ProfServ-Legal Services 3,000 3,000 2,736 284 ProfServ-Mgmt Consulting Sery 19,500 19,500 19,500 - ProfServ-Property Appraiser 899 899 899 - Auditing Services 3,000 3,000 3,000 - Communication-Telephone 150 150 - 150 Postage and Freight 750 750 1,142 (392) Insurance-General Liability 7,167 7,167 7,129 38 l Printing and Binding 750 750 455 295 Legal Advertising 2,000 2.000 3,136 (1,136) Misc-Bank Charges 620 620 536 84 Misc-Assessmnt Collection Cost 1,198 1,198 1,156 42 Misc-Contingency 1,126 10,000 11,126 9,993 1,133 Office Expense 410 410 193 217 Annual District Filing Fee 175 175 175 - TOTAL ADMINISTRATIVE 47,628 10,000 57,628 58,167 1,461 OPERATIONS AND MAINTENANCE FIELD Misc-Stormwater System Review 10,000 10,000 9,750 250 Impr-Irrigation 10,000 10,000 8,900 1,100 Cap Outlay-Road Improvements 810,000 810,000 809,686 314 Cap Outlay-Fence 10,000 10,000 14,620 (4,620) TOTAL FIELD 840,000 - 840,000 842,956 (2,958) RESERVES Reserve-Roads and Lakes 10,000 10,000 - 10,000 TOTAL RESERVES 10,000 - 10,000 - 10,000 TOTAL EXPENDITURES 897,628 10,000 907,628 899,123 8,505 EXCESS OF REVENUES (10,000) (40,100) (31,335) 8,765 OVER(UNDER)EXPENDITURES NET CHANGE IN FUND BALANCES - (10,000) (40,100) (31,335) 8,765 FUND BALANCE,OCTOBER 1 - 63,616 63,616 63,616 - FUND BALANCE,ENDING $ $ 33,616 $ 23,516 $ 32,281 $ 8,765 NOTE MINOR DIFFERENCES IN STATEMENT TOTALS ARE REPORT DATE:10/3112014 A DIRECT RESULT OF ROUNDING TO WHOLE DOLLARS. (UNAUDITED) RESOLUTION 2015-1 A RESOLUTION AMENDING THE NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT GENERAL FUND BUDGET FOR FISCAL YEAR 2014 WHEREAS, the Board of Supervisors, hereinafter referred to as the "Board", of Naples Heritage Community Development District, hereinafter referred to as "District", adopted a General Fund Budget for Fiscal Year 2014, and WHEREAS, the Board desires to reallocate funds budgeted to reappropriate Revenues and Expenses approved during the Fiscal Year. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF NAPLES HERITAGE COMMMUNITY DEVELOPMENT DISTRICT THE FOLLOWING: 1. The General Fund Budget is hereby amended in accordance with Exhibit "A" attached. 2. This resolution shall become effective this 11th day of November 2014 and be reflected in the monthly and Fiscal Year End 9/30/2014 Financial Statements and Audit Report of the District. Naples Heritage Community Development District (L.L___ By: Chairman Attest: By. Secrets NAPLES HERITAGE CDD GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE PERIOD ENDING SEPTEMBER 30,2014 BUDGET AMENDMENT Variance with Final Budget Amended Proposed Final YTD Positive Budget#1 Amendment#2 Budget#1 Actual (Negative) $ $ s a $ • REVENUE Interest-Investments 100 275 275 Interlocal Agreement 810,000 - 810,000 810,000 - Special Assmnts-Tax Collector 59,925 - 59,925 59,925 - Special Assmnts-Discounts (2,397) (2,397) (2,137) 260 TOTAL REVENUE 867,528 - 887,528 867,788 260 EXPENDITURES ADMINISTRATIVE PIR-Board of Supervisors 5,000 5,000 4,800 200 FICA Taxes 383 383 367 16 ProfSery-Engineering 1,000 1,000 950 50 ProfServ-Field Management 500 500 - 500 ProfSery-Legal Services 3,000 3,000 2,736 264 ProfServ-Mgmt Consulting Sery 19,500 19,500 19,500 - ProfServ-Property Appraiser 899 899 899 - Auditing Services 3,000 3,000 3,000 - Communication-Telephone 150 150 - 150 Postage and Freight 750 750 1,142 (392) • Insurance-General Liability 7,167 7,167 7,129 38 • • Printing and Binding 750 750 456 295 • Legal Advertising 2,000 2,000 3,136 (1,136) Misc-Bank Charges 620 820 536 84 Misc-Assessmnt Collection Cost 1.198 1,198 1,156 42 Misc-Contingency 1,126 10,000 11,126 9,993 1,133 • Office Expense 410 410 193 217 Annual District Filing Fee 175 175 175 - TOTAL ADMINISTRATIVE 47,828 10,000 57,828 56,187 1,481 • OPERATIONS AND MAINTENANCE • FIELD • Misc-Stormwater System Review 10,000 10,000 9,750 250 Impr-Irrigation 10,000 10,000 8,900 1,100 Cap Outlay-Road improvements 810,000 810,000 809,688 314 Cap Outlay-Fence 10,000 10,000 14,620 (4,620) TOTAL FIELD 840,000 - 840,000 842,956 (2,956) RESERVES Reserve-Roads and Lakes 10,000 10,000 - 10,000 TOTAL RESERVES 10,000 - 10,000 - 10,000 TOTAL EXPENDITURES 897,628 10,000 907,628 899,123 8,505 EXCESS OF REVENUES (10,000) (40.100) (31,335) 8,765 OVER(UNDER)EXPENDITURES NET CHANGE IN FUND BALANCES - (10,000) (40,100) (31,335) 8,765 FUND BALANCE,OCTOBER 1 - 63,616 63,616 63,616 - FUND BALANCE,ENDING .$ - $ 33,616 $ 32,281 $ 8,765 NOTE:MINOR DIFFERENCES IN STATEMENT TOTALS ARE REPORT DATE'1013112014 A DIRECT RESULT OF ROUNDING TO WHOLE DOLLARS. (UNAUDITED) NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2013 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-6 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position 7 Statement of Activities 8 Fund Financial Statements: Balance Sheet—Governmental Fund 9 Reconciliation of the Balance Sheet—Governmental Fund to the Statement of Net Position 10 Statement of Revenues, Expenditures and Changes in Fund Balance— Governmental Fund 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Fund to the Statement of Activities 12 Notes to the Financial Statements 13-18 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual—General Fund 19 Notes to Required Supplementary Information 20 INDEPENDENT AUDITOR'S 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 21-22 MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 23-24 2700 North Military Trail-Suite 350 Boca Rjo4728 Grau 8& Associates (561)9 1)994-5823 CE( TIFIL I) PUBLIC ACCOUNTANTS www.graucpa.com INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the major fund of Naples Heritage Community Development District,Collier County, Florida("District")as of and for the fiscal year ended September 30,2013,and the related notes to the financial statements,which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control_Accordingly, we express no such opinion.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 30,2013, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information 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 financial 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 about 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 provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated June 16,2014,on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations,contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. L L June 16,2014 2 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of the Naples Heritage Community Development District,Collier County,Florida ("District")provides an overview of the District's financial activities for the fiscal year ended September 30, 2013. 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 recent fiscal year resulting in a net position balance of$8,057,354. • The change in the District's total net position in comparison with the prior fiscal year was($143,718), a decrease. The key components of the District's net position and change in net position are reflected in the table in the government-wide financial analysis section. • At September 30,2013,the District's governmental funds reported combined ending fund balances of $63,616, an increase of$18,594 in comparison with the prior fiscal year. A portion of the fund balance is assigned for operating capital and other reserves and the remainder is unassigned which is available for spending at the District's discretion. • During fiscal year 2013, the District implemented Governmental Accounting Standards Board ("GASB")Statement No.62,Codification of Accounting and Financial Reporting Guidance Contained in Pm-November 30, 1989 Financial Accounting Standards Board("FASB')and American Institute of Certified Public Accountants ("AICPA') Pronouncements, GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources,Deferred Inflows of Resources,and Net Position,and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Please see New Accounting Standards Adopted in Note 2 of the financial statements for additional information. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is 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 statement of net position presents information on all the District's assets and liabilities,with the residual amount being reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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 and operations functions. 3 OVERVIEW 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,uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has 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 narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with 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 balance 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 in the governmental fund balance sheet and the governmental fund statement of revenues,expenditures, and changes in fund balances for the general fund. The general fund is considered to be 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 included in the government-wide and fund financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier,net position 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. 4 GOVERNMENT-WIDE FINANCIAL ANALYSIS(Continued) Key components of the District's net position are reflected in the following table: NET POSITION SEPTEMBER 30, 2013 2012 Current and other assets $ 63,616 $ 45,022 Capital assets,net of depreciation 7,993,738 8,156,050 Total assets 8,057,354 8,201,072 Current liabilities -Total liabilities - - Net position Net investment in capital assets 7,993,738 8,156,050 Unrestricted 63,616 45,022 Total net position $ 8,057,354 $ 8,201,072 A portion of the District's net position 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 position may be used to meet the District's other obligations. The District's net position decreased during the most recent fiscal year. 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 position are reflected in the following table: CHANGES IN NET POSITION FOR THE FISCAL YEAR END SEPTEMBER 30, 2013 2012 Revenues: Program revenues $ 57,789 $ 48,532 General revenues 194 186 Total revenues 57,983 48,718 Expenses: General government 39,389 40,637 Maintenance and operations 162,312 162,312 Total expenses 201,701 202,949 Change in net position (143,718) (154,231) Net position-beginning 8,201,072 8,355,303 Net position-ending $ 8,057,354 $ 8,201,072 As noted above and in the statement of activities,the cost of all govemmental activities during the fiscal year ended September 30,2013 was$201,701,of which$162,312 represents depreciation expense.The costs of the District's activities were primarily funded by program revenues. Program revenues were comprised primarily of assessments for both the 2013 and 2012 fiscal years. 5 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, 2013. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures for the current fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. CAPITAL ASSETS At September 30,2013,the District had$10,414,991 invested in land improvements,roadways,security,and other related improvements. In the government-wide statements depreciation of$2,421,253 has been taken, which resulted in a net book value of$7,993,738. More detailed information about the District's capital assets is presented in the notes of the financial statements. ECONOMIC FACTORS AND NEXT YEARS 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 our citizens,land owners,customers,investors and creditors with 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 Naples Heritage Community Development District's Finance Department at 210 N. University Drive, Suite 702, Coral Springs, Florida, 33071. 6 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30,2013 Governmental Activities ASSETS Cash $ 63,175 Due from other governments 441 Capital assets: Nondepreciable 6,122,404 Depreciable, net 1,871,334 Total assets 8,057,354 LIABILITIES Accounts payable - Total liabilities - NET POSITION Net investment in capital assets 7,993,738 Unrestricted 63,616 Total net position $ 8,057,354 See notes to the financial statements 7 CO E ' G 7f p 7 F. & 7 N 2 n ? _ \ # \ \ •�\ 8 \ % _ N o \ § } § \ CO- 6 y \ .- § Q § z � / o • n o _ cn c e F- R U) kk0) 3 m 2 \ c 0_ « m , } \ " k j 0 13 al , ° j ° k E E § ° co a) § m ) Lu-1 c7 w � � b / 2K _Q _ U) ° .0 0 ® ' > 2 ' f : 2 « 2 - _ ! E 2 = C p...1- it _ N � 0 ) % Z CO o C 2 m e ' E - 0� oc \ pmy fy � ] � } k ± § � � § \ � \ § g \ / & \ k \ � q < � \ D ozz ) � 0 « < - Doe « © ® CO o U w ,, 2 A 2 I / j � ■ •§ Q < 0 ƒ $ Aa z .! [ = E ( § \ % [ k / \ E § ƒ k E C c k _ a % [ 2E1 f 2 2- § § @ e \ \ / LL _ NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUND SEPTEMBER 30,2013 Major Fund Total Governmental General Fund ASSETS Cash $ 63,175 $ 63,175 Due from other governments 441 441 Total assets $ 63,616 $ 63,616 Fund balance: Assigned to: First quarter operating capital 14,407 14,407 Road and lake reserves 10,000 10,000 Unassigned 39,209 39,209 Total fund balance 63,616 63,616 Total liabilities and fund balance $ 63,616 $ 63,616 See notes to the financial statements 9 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUND TO THE STATEMENT OF NET POSITION SEPTEMBER 30,2013 Amounts reported for governmental activities in the statement of net position are different because: Fund balance-governmental funds $ 63,616 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 position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole. Cost of capital assets 10,414,991 Accumulated depreciation (2,421,253) 7,993,738 Net position of governmental activities $ 8,057,354 See notes to the financial statements 10 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2013 Major Fund Total Governmental General Fund REVENUES Assessments $ 57,789 $ 57,789 Interest 194 194 Total revenues 57,983 57,983 EXPENDITURES Current: General government 39,389 39,389 Total expenditures 39,389 39,389 Excess(deficiency)of revenues over(under)expenditures 18,594 18,594 Fund balance-beginning 45,022 45,022 Fund balance-ending $ 63,616 $ 63 616 See notes to the financial statements 11 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances-total governmental funds $ 18,594 Depreciation on capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities. (162,312) Change in net position of governmental activities $ (143,718) See notes to the financial statements 12 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA NOTES TO FINANCIAL STATEMENTS NOTE 1 —NATURE OF ORGANIZATION AND REPORTING ENTITY Naples Heritage Community Development District ("District") was created on September 24, 1996 by Ordinance 96-57 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 within 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 District. 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")Statements. Under the provisions of those standards,the financial reporting entity consists of the primary government,organizations for which the District is considered to be financially accountable,and other organizations for which 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 position 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 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. 13 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICES(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 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. 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 Collector. The amounts 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 considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. The District reports the following major governmental fund: General Fund The general fund is the general operating fund of the District. It is used to account for 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. New Accounting Standards Adopted During fiscal year 2013, the District adopted three new accounting standards as follows: GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements This Statement incorporates into the GASB's authoritative literature certain guidance that previously could only be found in certain FASB and AICPA pronouncements issued on or before November 30, 1989 and eliminates the selection to apply post-November 30, 1989 FASB pronouncements that do not conflict with or contradict GASB pronouncements. 14 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICES(Continued) New Accounting Standards Adopted(Continued) GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources and identifies net position as the residual of all other elements presented in a statement of financial position.This Statement amends the net asset reporting requirements by incorporating deferred outflows of resources and deferred inflows of resources(previously reported as assets and liabilities)into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. Assets, Liabilities and Net Position or Equity Restricted Assets These assets represent cash and investments set aside pursuant to external restrictions. Deposits and Investments The District's cash is considered to be cash on hand and demand deposits. 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 market funds with the highest credit quality 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. Securities listed in paragraphs c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. The District records all interest revenue related to investment activities in the general fund 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. 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. 15 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets,Liabilities and Net Position or Equity(Continuedi Capital Assets(Continued) Property,plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years Roadways 30 Security and other 20 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. Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received,but not yet earned. Deferred Outflows/Inflows of Resources The statement of net position reports, as applicable,a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s)and so will not be recognized as an outflow of resources(expense/expenditure)until that time. For example, the District would record deferred outflows of resources related to debit amounts resulting from current and advance refundings resulting in the defeasance of debt(i.e.when there are differences between the reacquisition price and the net carrying amount of the old debt). The statement of net position reports, as applicable, a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s) and so will not be recognized as an inflow of resources(revenue)until that time.For example,when an asset is recorded in the governmental fund financial statements,but the revenue is not available,the District reports a deferred inflow of resources until such times as the revenue becomes available. Fund Equity/Net Position 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 for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change. Committed fund balance—Amounts that can be used only for the specific purposes determined by a 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. The Board can assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year's appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment. 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. 16 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Liabilities and Net Position or Equity(Continued) Fund Equity/Net Position (Continued) Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets,restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District's Bond covenants or other contractual restrictions.Unrestricted net position consists of the net position not meeting the definition of either of the other two components. 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 the 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. f) Unused appropriation for annually budgeted funds lapse at the end of the year. NOTE 4—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 deposit with 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 local 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. 17 NOTE 5—CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30,2013 was as follows: Beginning Ending Balance Additions Reductions Balance Governmental activities Capital assets,not being depreciated Land and land improvements $ 6,122,404 $ - $ - $ 6,122,404 Total capital assets,not being depreciated 6.122,404 - - 6,122,404 Capital assets,being depreciated Security and other 1,153,556 - - 1,153,556 Roadway 3,139,031 - - 3,139,031 Total capital assets,being depreciated 4,292,587 - - 4,292,587 Less accumulated depreciation for: Security and other 818,293 57,678 875,971 Roadway 1,440,648 104,634 1,545,282 Total accumulated depreciation 2,258,941 162,312 - 2,421,253 Total capital assets,being depreciated,net 2,033,646 (162,312) - 1,871,334 Governmental activities capital assets,net $ 8,156,050 $ (162,312) $ - $ 7,993,738 Depreciation expense was charged to the maintenance and operations function. NOTE 6-MANAGEMENT COMPANY The District has contracted with a management company to perform services which include financial and accounting advisory 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. 18 NAPLES HERITAGE 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, 2013 Variance with Final Budget- Budgeted Amounts Actual Positive Original and Final Amounts (Negative) REVENUES Assessments $ 57,528 $ 57,789 $ 261 Interest 100 194 94 Total revenues 57,628 57,983 355 EXPENDITURES Current: General government 57,628 39,389 18,239 Total expenditures 57,628 39,389 18,239 Excess(deficiency)of revenues over(under)expenditures $ - 18,594 $ 18,594 Fund balance-beginning 45,022 Fund balance-ending $ 63,616 See notes to required supplementary information 19 NAPLES HERITAGE 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 for the 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, 2013. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures for the current fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. 20 2700 North Military Trail •Suite 350 • Boca Raton, Florida 33431 Graze & Assoclates (561)994-9299•(800)299-4728 �� Fax .grauc a.com 3 C;FIREl(ALI) I'llht:IC A(;COL NIANTS Fax (5 1)99 -58 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida We have audited, in accordance with the 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,the financial statements of the governmental activities and the major fund of Naples Heritage Community Development District,Collier County, Florida("District")as of and for the fiscal year ended September 30, 2013, and the related notes to the financial statements,which collectively comprise the District's basic financial statements,and have issued our opinion thereon dated June 16,2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements,we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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.Accordingly,we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, 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 that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.A significant deficiency is a deficiency, or a combination of deficiencies,in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies.Given these limitations,during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on 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 other matters that are required to be reported under Government Auditing Standards. 21 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the entity's internal control or on compliance.This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance.Accordingly,this communication is not suitable for any other purpose. June 16,2014 22 C2700 North Military Trail•Suite 350 Boca Raton, Florida 33431 Grau & Associates (561)994-9299•(800)299-4728 Fax .grauc a.com 3 � f:l',R'l�lhll�.l� PUitL.IC ��(:C(1LiN'l"AN'CS www.graucpa.com MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida We have audited the accompanying basic financial statements of Naples Heritage Community Development District, Collier County, Florida("District")as of and for the fiscal year ended September 30,2013,and have issued our report thereon dated June 16, 2014. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; 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 Independent Auditor's 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 and Chapter 10.550, Rules of the Florida Auditor General dated June 16, 2014. Disclosures in that report should be considered in conjunction with this management letter. The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules 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: I. Current year findings and recommendations. II. Status of prior year findings and recommendations. III. Compliance with the Provisions of the Auditor General of the State of Florida. Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of Naples Heritage Community Development District,Collier County,Florida and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank Naples Heritage 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. June 16, 2014 23 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None II. PRIOR YEAR FINDINGS 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. There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30,2012. 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 30,2013. 4. Noncompliance with 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 which warrants the attention of those charged with governance. 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, 2013. 5. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 6. 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, 2013 financial audit report. 7. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 8. We applied financial condition assessment procedures pursuant to Rule 10.556(7) and no deteriorating financial conditions were noted as of September 30, 2013. 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. 24 2700 Military Trail•Suite 350 Boca a Raton,n, Florida 33431 • Grau & Associates (561)994-9299•(800)299-4728 Fax (561)994-5823 CERTIFIED PUBLIC ACCOUNTANTS www.graucpa.com August 20,2014 Board of Supervisors Naples Heritage Community Development District 210 North University Drive,Suite 702 Coral Springs, Florida 33071 We are pleased to confirm our understanding of the services we are to provide Naples Heritage Community Development District, Collier County, Florida (`the District") for the fiscal year ended September 30, 2014. We will audit the financial statements of the governmental activities and each major fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of Naples Heritage Community Development District as of and for the fiscal year ended September 30, 2014. This letter serves to renew our agreement and establish the terms and fee for the 2014 audit. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to supplement District's basic financial 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.As part of our engagement,we will apply certain limited procedures to the District's RSI in accordance with auditing standards generally accepted in the United States of America.These limited procedures will consist of inquiries of management regarding 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 will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures,but will not be audited: 1) Management's Discussion and Analysis. 2) Budgetary comparison schedule Audit Objectives The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the District and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the District's financial statements.We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of- matter or other-matter paragraphs. If our opinion on the financial statements is other than unmodified,we will discuss the reasons with you in advance. If,for any reason,we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report, or may withdraw from this engagement. We will also provide a report(that does not include an opinion)on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1)that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Naples Heritage Community Development District Page 2 Management Responsibilities Management is responsible for the financial statements and all accompanying information as well as all representations contained therein.As part of the audit,we will assist with preparation of your financial statements and related notes. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual. preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management is reliable and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations,contracts,and grant agreements.You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. As part of our engagement, we may propose standard adjusting, or correcting journal entries to your financial statements.You are responsible for reviewing the entries and understanding the nature of the proposed entries and the impact they have on the financial statements. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2)employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees,grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations,contracts,agreements,and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations,contracts or grant agreements,or abuse that we report. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions,for the report,and for the timing and format for providing that information. With regard to using the audit's report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore,we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Audit Procedures—General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;therefore,our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3)misappropriation of assets,or(4)violations of laws or governmental regulations that Naples Heritage Community Development District Page 3 are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control,and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other • assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions.We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements;and other responsibilities required by generally accepted auditing standards. Audit Procedures—Internal Control Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures.Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. Audit Procedures—Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Engagement Administration,Fees,and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. The audit documentation for this engagement is the property of Grau & Associates and constitutes confidential information, However,subject to applicable laws and regulations,audit documentation and appropriate individuals will be made available upon request and in a timely manner to a cognizant or oversight agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities.We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Grau & Associates personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties.These parties may intend,or decide,to distribute the copies or information contained therein to others, including other governmental agencies. Notwithstanding the foregoing, the parties acknowledge that various documents reviewed or produced during the conduct of the audit may be public records under Florida law. The District agrees to notify Grau & Associates of any public record request it receives that involves audit documentation. Our fee for these services will not exceed$3,000 for the September 30,2014 audit. The audit documentation for this engagement will be retained for a minimum of five years after the report release date. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies)contesting the audit finding for guidance prior to destroying the audit documentation. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Invoices will be submitted in sufficient detail to demonstrate compliance with the terms of this agreement. In Naples Heritage Community Development District Page 4 accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report.You will be obligated to compensate us for all time expended and to reimburse us for all out-of- pocket costs through the date of termination.The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary,we will discuss it with you and arrive at a new fee estimate. This agreement is automatically renewed each year thereafter subject to the mutual agreement by both parties to all terms and fees.The fee for each annual renewal will be agreed upon separately. We will provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2013 peer review report accompanies this letter. We appreciate the opportunity to be of service to Naples Heritage Community Development District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter,please sign the enclosed copy and return it to us. Very truly yours, Grau&Associates Racquet McIntosh RESPONSE: This letter correctly sets forth the understanding of Naples Heritage Community Development District. By: J// Title: Date: 13 t §. 3 e �\ . . ] ) -Q )XI % & ..... ) \} • \ ) !2/ « ® § a .! . ) $ k �f ■ k { Z. k : ° k a a 2E ; § © » • ' m k � } / I" ° ° ° ° . Q , \ )t § . p U ¢ �/ / \ c L g $ % ca \ \� � \ O < _ t B § � 1 /41 i , C .4, k : L. $ §' i g4 ) k � k Q i c 2 a CD / 41k ) k ) fi I t t « % � : . 4 . > k � ) [As i . � � 7TS ' . / § \ k ) k ( o | £ 2 a