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07/09/2015 Agenda�o��aL Heritage Bay Community Development Distri SF r Board of Supervisors Edwin Hubbard, Chairman Calvin B Manager Ronald A. Grant, Vice Chairman Gregory Urbancic, Distri John May, Assistant Treasurer David Wilkison, District Engineer Dennis Gagne, Assistant Secretary Richard Brodeur, Assistant Secretary Regular Meeting Agenda July 9, 2015 — 9:00 a.m. 1. Roll Call 2. Public Comments on Agenda Items 3. Approval of the Minutes of the May 7, 2015 Regular Meeting and May 20, 2015 Continued Meeting 4. Old Business A. Bridge Wall Project Update B. Littoral Planting Update C. FY 2015 Lake Bank Repair Project Update D. Mutual Memorandum of Understanding with Heritage Bay Golf & Country Club 5. New Business A. Umbrella Association Update from President Jack Osborn B. Discussion on Engineering Services C. Water Testing Proposal — Dennis Gagne D. Escambia Bay Ct. Homeowner Repair 6. Manager's Report A. Approval of Financials, Check Register and Invoices B. Acceptance of Fiscal Year 2014 Audit C. Discussion of Items to be Presented at the August 6, 2015 Public Hearing D. Field Manager's Report E. Follow Up 7. Attorney's Report 8. Engineer's Report A. Transfer of Environmental Resource Permit 11- 02234 -P from Lennar to the District 9. Supervisors' Requests and Audience Comments 10. Adjournment NOTES: The next meeting is scheduled for August 6, 2015 at 9:00 a.m. District Office: Meeting Location: 210 N. University Drive, Suite 702 Heritage Bay Clubhouse Coral Springs, FL 33071 10154 Heritage Bay Boulevard 954 - 753 -5841 Naples, FL Retaining Wall Summary /Update on preparation of the bid process June 16, 2015 - meeting with Ralph Verrastro , P.E. Bridging Solutions and Ed Hubbard Ralph requested a meeting to review progress to date regarding preparing the bid packages and to solicit input on some specific areas which required clarification and /or provided opportunities to potentially reduce some expenditures Summary of items discussed and decisions made: -all coconut palms will be removed; either at HOA expense if they are physically moved or at CDD expense if cut down and hauled away -Ed to work with HOA and Buttonwood to identify options -all Irrigation lines need to be accounted for prior to any construction -HOA to identify and mark all irrigation heads - outside company to identify all irrigation supply and feed lines and mark accordingly (CDD expense) -HOA to cut and cap the main feeder line -at conclusion of construction, after HOA hooks up feeder lines, outside company to rerun any lines required to ensure proper irrigation of all beds and lawns (CDD expense) -repairing stucco and repainting exposed bridge wing walls will not be part of the bids and will be handled separately by the CDD; i.e. additional expense - clearing and grubbing of sod and bushes along limits of bottom tier wall part of the bid process - bottom tier walls at NE and SE quadrants, which extend beyond the top tier walls, will be re- graded and sodded to tie into and line up with the existing top embankments; i.e. not filled in with rip rap stones, This should save stones to ensure enough to complete the entire project and not necessitate purchasing more stones -bids will include cost to stain concrete fill material to blend in with stones and can be removed if CDD feels expenses are not warranted; i.e. will be bid as separate activity - contractor has the option to place smaller stones in some larger gaps to reduce the quantity of shotcrete /concrete This would be subject to Bridging Solutions review and inspection as part of construction phase services which needs to be defined completely. .NW quadrant; bid to include finishing area at bottom of lake bank with 100' of rip rap to match existing rip rap. This is a new item and can be removed depending on actual quotes. It is advisable to complete this rip rap -SE quadrant; bid to include finishing area at bottom of lake bank with 100' of rip rap to match existing rip rap. This is not a new item and will replace the current 100' of wall which is washing out badly. It is advisable to complete this with rip rap as it will save stones for the rest of the project -NE quadrant; bid to include finishing area at bottom of lake bank with 200' of rip rap to match existing rip rap. This is a new item and can be removed depending on actual quotes. 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Hill AlIMNCM tt��1lM IIUlCIIt ICI IIIn ANA I III ngoCCCI Nil IN nilil Nil 11111 1 H lIINIIC 111111 CQ oil IIII�I 1 QN t 1 � 4 3 a H' I I! i ' I I f 0 wr. 1 9At� rrw t 1• Hill i 1 i 1 i -— 1 T lit 1 tit !it 1/t 1i ![/ / , ill 111 i11 111 ill ill 1 Qi I 1 1 1 i 11 a # A AA !a a - -..� t Im 1ltt t$ t s � i _ _ t Hill —_ i � i r � - IIl — All 111 111 Ili ill , i� 79Q171 sa IIAaa /tg i aft8rl`�`sai it ra lAAAra�'4 llAlw��t 1 t i i v > , Southwest Development • Proposal #2100 $9,950.00 (Lakes ## 6, 19, 22, 23, 30A, 308) • Proposal #2101 $1,500.00 (Lake #5) o Change order $500.00 — discovery of buried drain tube on lake #5 • Proposal #2138 $8,400.00 (Lakes #20 & 27) — Approved @ 5/7/15 BOS Meeting o Change order -$200 (SW Development agreed to $8,200) Total $20,150.00 Payments to Southwest Development • Invoice 2131 -1 $11,950.00 — Submitted for payment on 5/13/15 • Invoice 2138 -1 $8,200.00 — Submitted for payment on 5/15/15 Landshore Total Remaining $0.00 • Estimate #3062 $3,035.00 (Lake 10 & 20) Approved at 4/2015 BOS Meeting, but not executed, authority granted on 5/7/15 • Estimate #3074 $650.00 - Approved at 5/7/2015 BOS Meeting Total $3,685.00 Payments to Landshore • Invoice #490 $758.75 — 25% booking fee for Estimate #3062 • Invoice #491 $325.00 — 50% deposit for Estimate #3074 • Invoice #884 $1,062.25 — 35% commencement fee for Estimate #3062 — 6/10/15 • Invoice #886 $910.50 —final payment minus 10% retainage • Invoice #887 $260.0 —final payment minus 10 %retainage Total Remaining $368.50 Copeland Southern • $15,375.00 (Lake 26) — Approved at 5/7/2015 BOS Meeting o Change order $200 — omitting one catch basin and connecting drain lines Total $15,175.00 Payments to Copeland Southern • Invoice #556 $15,175.00 — received 6/8/15 Total Remaining $0.00 Billed to date: $39,010.00 Paid to date: $38,641.50 Amount remaining: $368.50 Copeland Southern Enterprises, Inc. PROFESSIONAL SERVICES AGREEMENT BETWEEN COPELAND SOUTHERN ENTERPRISES, INC. AND Heritan Bay Community Development District in Naples OWNER INFORMATION: OWNER'S ADDRESS: 10154 Heritage Bay Blvd, Naples, FL 34120 BILL TO THE ATTENTION OF. Justin Faircloth, Assistant District Manager PROJECT NAb1E: Lake #5 Sidewalk Erosion Repair WORK DESCRIPTION: Rebuild and Reinforce 15 It Eroded Slope along West Golf Course Sidewalk at the SW comer of Lake 5, Install 6" ADS Drainage and 12" Dubbler, REMARKS: 1) Permits to be pulled by owners or Engineer if needed. 2) All Sprinkler heads and lines within the work area must be clearly marked before construction begins 3) MOT will be setup along the edge of the work area for safety and crews will leave sidewalk open for the community and the Golfers access to the course. 4) All guest and golfers will need to be notified by the board of the repair project on Lake 5, to stay clear of the cordon off arcs and equipment during the project. DATE: 07 012015 OWNER INFORMATION: TELEPHONE NO.: (239) 245.7118 ' 306 Fax No: (239) 245 -7120 E -MAIL: Justin .Faireloth(a')stservices,com, PROJECT MANAGER: Scott Copeland FEE AND TYPE: Time & Materials based upon the Rate Schedule in effect at the time service is rendered. Estimated Fees: Not- To-Exceed Fixed Fee based upon the Rate Schedule in effect at the time service is rendered-. S Lump Sum Fixed Fee: S 3.375.00 Total Feel S 3375.00 Dear Justin Faircloth In Pursuant to your request, Copeland Southern Enterprises, Inc. is pleased to submit the following proposal for Lake 95 Drainage and Erosion Correction project for the above-referenced project: SCOPE OF SERVICES (Limited to the following): 1 _ Crews will set up MOT around work areas to insure the safety of the residents and guests during the project. 2. Crews will excavate down to existing erosion under the Rip Rep and compact and install layered erosion blankets in lifts back to proposed slope grade leaving a small 3" swale around the new Catch Basin installed at the east of the sidewalk. 3. Crews will install I new 12 "x 12" Catch Basin at the center of the flow area on the east edge of the sidewalk. 4. 6" ADS double wall pipe will be installed from 12" Catch Basin out into and below the Lake low water line. 5. Crews will plant 17 new Spartina plants at the top of the 15' newly repaired slope. 6. Crews will restore the lawns and slopes back to original condition, if the equipment crossing has caused any damage. 7. Work is estimated to 3 to 4 days to complete. 8. MOT will be removed after project has been completed and work areas has been policed and cleaned up. Note: Any additional work and services requested, and Is not found in this Proposal can be done, but will require additional cost to be paid in full with proposal fee upon the completion of job. We at Copeland Southern Enterprises hope this meets your approval and satisfies your requirements. If sa please sign the contract proposal below and return a copy to our office by Fax or Email. Should you have any questions or need any additional information, Pleasedo not hesitate to 4all Scott Copeland at 239 -995 -3684 or Mobile f# 239- 707- 6806,Fax 239- 995 -0058 OWNER AUTHORIZATION: I warrant and represent that I am authorized to enter into this contract for professional services and I hereby authorize the performance of the above services and agree to pay the charges upon the completion of the Job resulting there from as identified in the "FEE TYPE" section above. I have rc.� +d and agree to these Standard Business Terms. ( f Authorized Signature. ��. L Date: ? ` ` 1 Typed Name &Title: Exhibit # t Existing Under Ground Erosion Sidewalk 12" x 12" Catch Basin Exhibit #3 ADS Drainage installation and Proposed Slope Repairs 6" ADS Piping 15' wide repaired and re- enforced Slope area with Coconut Erosion Blanket Low Water AC R" CERTIFICATE OF LIABILITY INSURANCE DATEIMMIDDrrvyv) 5/1 212 0 1 5 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsements . PRODUCER CONTACT Janie VanHoose Acentric, Inc. -Cape Coral PHONE 239- 945 9941 (FAAAX No,. 405 Del Prado Blvd N #100 —� -- 239- 574 -2357 E MAR .00se Cape Coral FL 33909 a-nnRFSS:j anievanh @acentria.com _— INSURERA:Western Heritage Ins Cc 37150 INSURED COPESOU -01 INSURERe:VICTORiA SELECT INSURANCE CO 10105 Copeland Southern Enterprises Inc INSURERC_Commerce & Industry Insurance Co. 19410 1668 Many Rd Fort Myers FL 33903 INSURER D: CnVRRAl_RB rrcorioirn ro an u,oco. 1 QgA7A 11 R1 rHIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LT TYPE OF INSURANCE INSD WVD POLICY NUMBER POLICY EFF N DD POLICY EXP MIDD /YYYY I LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE ❑X OCCUR SCP0939484 /23/2014 5123/2015 EACH OCCURRENCE $1,000,000 DAM, REN PREI ES Eaccan'en $100,000 GEN'L X MED EXP Any one on $1,000 $1000000 PERSONAL &ADV INJURY AGGREGATE LIMIT APPLIES PER: POLICY ❑ PERO_ r LOC OTHER: GENERAL AGGREGATE $2000000 PRODUCTS . COMPIOP AGG _ $1000000 $ B AUTOMOBILE LIABILITY ANYpAUUTTO N AUTOS ED X SCHEDULED AUTOS HIREDAUTOS NON -0VVNED 0073fi6858 /8!2014 8/812015 LI Ea accident) $1,000,000 BODILY INJURY (Per person) $ $ (BODILY INJURY (Per accident) - PROPERTY DAMAGE (Per Per accident $ $ C UMBRELLALWB EXCESS LIAB OCCUR CLAIMS -MADE EBU062829387 /2812014 7/2812015 EACH OCCURRENCE $1,000,000 AGGREGATE $1,000,OOD DIED I I RETENTIONS Is WORKERS COMPENSATION ANDEMPLOYeWLIABILITY YIN ANY PROPRIETOR /PARTNEReXECUTIVE ❑ OFFICERWEMBER EXCLUDED? (Mandatory in NH) If yyes, describe under CESCRIPTION OF OPERATIONS below N /A I PER OTH- 7ATUTE ER $ El. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE$ -- —. E.L. DISEASE -POLICY LIMIT $ DESCRIPTION OF OPERATIONS! LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached it more space is required) Heritage Bay COD 210 North University Drive, Suite 702 Coral Springs FL 33071 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ©1988 -2014 ACORD CORPORATION_ All rights rwePr A ACORD 25 (2014101) The ACORD name and logo are registered marks of ACORD ACOR" CERTIFICATE OF LIABILITY INSURANCE `...� DATE(MMIDD /YYYY) .0.5/26/2015 THIS CERTIFICATE 13 ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). PRODUCER Brad Burns Insurance 2069 North Monroe Street Tallahassee FL 32303 AMEACT Keith Meyer HON a (850j 385 -6500 n c N„ (850) 385 -0810 -MAIL Brad@BradBurnsins.com [—ADDRESS, Q INSURERS AFFORDING COVERAGE NAIC Y SURER A: Cypress Property and Casualty Ins Co COMMERCIAL GENERAL LIABILITY CLAIMS -MADE X OCCUR INSURED Copeland Southern Enterprises Inc. 1668 Many Rd N Fort Myers FL 33903 INSURER B: FUBA FGL50014520081 INSURER C : 05/23/2016 INSURER O: $ 1,000,000 INSURER E: $ 100,000 INSURER F: MED EXP (Any one persm) COVtKAGtN CEKIIFICAFF Nl1MIRFK' RFVISIr1N1 runiumPo• THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSRR 7ypE OF INSURANCE ADDL UBR POLICY NUMBER POLIC/Y`/EFF POLICY EXP LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE X OCCUR FGL50014520081 05123/2015 05/23/2016 EACH OCCURRENCE $ 1,000,000 -MA PREMISES Ea mcurren $ 100,000 MED EXP (Any one persm) $ 5,000 GEN'LAGGREGATE X PERSONAL RADVINJURY $ 1,000,000 LIMIT APPLIES PER: POLICY ❑ JECT F—] LOC OTHER: GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMPIOP AGG $ 2,000,000 $ AUTOMOBILE LIABILITY ANYAUTO ALL OWNED SCHEDULED AUTOS AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT Ea accident $ BODILYINJURY(Per person) $ BODILY INJURY Per accident) $ PROPERTY DAMAGE Per accident $ $ UMBRELLA LIAR EXCESS LIAR HOCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DED RETENTION$ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN OFFICERJMEMBE /REXC UDED? ECUTIVE Y (Mandatory in NH) If yes, doscribe under DESCRIPTION OF OPERATIONS below NIA 106 -47250 - 05/23/2014 05/2312015 X STATUTE ER E.L. EACH ACCIDENT $ 100,000 E.L. DISEASE - EA EMPLOYE S 100,000 E.L. DISEASE - POLICY LIMIT $ 500,000 DESCRIPTION OF OPERATIONS I LOCATIONS /VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached it more space Is requlrod) Scott Copeland is exempt on the Workers compensation policy. GtK I11'It.A 1C MVLUCK CLLR 1 IVN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Heritage Bay COD ACCORDANCE WITH THE POLICY PROVISIONS. CID Severn Trent Services 210 N. University Dr, Suite 702 AUTHORIZED REPR OE.� Coral Springs FL 33071 ©1988 -2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014101) The ACORD name and logo are registered marks of ACORD Fom, W-9 Request for Taxpayer Give Form to the (Rev. ALwisl T Identification Number and Certification requester. Do not the oepanr ant at the 'reason' fntamal aerverua Sarica send to the (P &. Flame (as shown on your Income tax return) Copeland Southem Enterprises Inc. ti Business name/disregarded entity narne, it different from above OCheclt aopmoriate box for federal tax Classification: Exemptions (see instruchonty Irxfrviduaifsole proprietor Q C Corporation Q 8 Corporation Q Partnership L7 T, st reshate Hxemot payee code fit any) o Limited 'lablin company. Enter the tax classit-cation (e:C ccrcoratacn. S=S corporation. ?= partnership)► Fkamotlon from FATCA retorting C M e Ada (if atnt) -� El other Is" instrucdornsj ► v _._ Address (number, street, and apt. or suRe mil Requesters name and address (optional a 1688 Many Road co City. state. and ZIP code North Fort Myers, FL, 33903 'Jot acccurtttwtnbega) here (OpocnO Taxpayer Wen#l'hCS*W NWTdW (TIN) Enter your TIN in ttte agprDprm to box. The TIN provided must match the flame given on the "Name• Ime sociiii Security number to avoid backup vwthholdlrr. For individuals. ibis is yaw social security number ('ZM. However, for a resident alien; sale proprietor, or disregarded entity, see the Fart t instructions on page 3. For other _ _ entities, it is your employer identification number (EIN). If you do not have a number, see Hove to get a I rev on page .s. Note. If the account is in more than one name; see the chart on page 4 for gtudetines on whose number to enter. 1. The number shown an this tome is my tion9Ct taxpayer identification number (or f am waiting for a numbeir to be issued to mini, and 2. 1 am not subject to backup wi fitid kV because: (a) I art exempt from backup withholeitV, or (b) I have not been notified by the Internet Revenue Service (IRS) that t an subject to backup wttfrttolding as a result of a faihae to report ati interest or d'iv'idends, 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 outer U.& person (defined below), and 4. The FATCA coda(s) entered on this form (it arty) indicating theta i am exempt from FATCA, reporting is correct: Certification Instructions. You must cross out item 2 above if you have been notified by the tRS that you are curter* subject to backup withholding because ytat have failed to report all) interest and dividendii; on your tax return. For rest estate transactions. item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property. cancellation of debt: contributions to an individual redremertt 1 generally, payments other than interest and dividends, you are not requited to sign the certification, but must provide . see and . _. _ y� P your tarred TiN. Seethe dire ( LI.. p Signature of F,r Here us- parlor ! <. %% 7 Date ► f r General Instructions Section references are to the Internet lft4wenue Code toess Otherwise noted. Fnrhins devotopmeMs. The IRS has creared a ergs on IRS.gpy for inl'atmgtion about Form W -9; at www-4s.govtw9.. Irilbrmatfon about any kftre developments affecting, Fort W -9 (such as legislation enacted MW we raMase iti will be posted oat that page. Purpose of Forma A person who is !wgtdred to file an informaelpn , etum.with, Me iAS must obtain your carract taxpwyer identiftmtion numbee (TIM) to report, far e3amRte, income paid: to ya4 ,. pairments made to you in seniemerrt of psynsenr alto am "d parer network trunneoldona, real estate transactions. mortgage firtenest you p'a'id, acquisltmm or abandonment of secured property, cancellation of debt, or contibudom you made to to IRA. Use Fcrm W -9 only it you are a U.S. person (including a resident affen), to provide your correct -nN to the person roqueating it "s requasteri and, when applicable, to: 1, Certify that the Teti you are gwkv is Correct (or you are waiting for a nutnow to be E,ssuecb). 2 Certify Lhat you am not subject to backup withholding, or withholding tax on foreign Pilch 8' shire of effectfvely cpnnected income, and 4. Certify that FATCA code($) entered on this form (ff any) irxHcst rig that you are exempt from the FATCA repordn s correct NatR 4 you are a U:3. Faison and a requester gives you a form other than Form W-9 to request yata TIN. you must tray the rt,queSter's form if it Is substantially similar to this Form W -9, 00011411100 Of a US. person. For federal tax purposes., you are oonsirbred a U.S. person ffyo+a am: • An individnuai who i3 a U.S. sheen or U.S. resident alien, ` A part-ship, corporation, company, or assocWon created or orgarnimci in the United States or under the laves of the united Blahs. • An estate (other than a foreign estate). or • A domestic trust (as defined In RBQuietiom secldon.301. i 701 -7). Specie( rules far parhre chips. Pantlerwtips that conduct a trade or business In the United States are generally required to pay a withholding tax under aactwr 14A6 an any foreign partners' share Of BtfeCtiVWp connected Taxable inname from such business. r'urthsr; in certain cases where a Fotrrt W -9 Ives riot been Moeived, the rules under section 1446 require a parfttwsttlo to presume that a oamier is a foreign person; aril pay the se -Wn 7446 wimhoxang tax, Therefore, if you are a U.S, person that is a partner in a par ionahbp otJndisotingt a trade or b usinesa in the 3, Claim exemption from backup withholding if you are a. 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Southwest Development Services, inc. 690 23rd St NW Naples, FL 34120 (239) 470 -5522 To: SEVERN TRENT MANAGEMENT SERVICES RE: HERITAGE BAY /LAKE # 5 C /O: JUSTIN FAIRCLOTH Description RE: S.W. SIDE OF LAKE 45 CARTPATH WASHOUT. - POUR CONCRETE IN ORDER TO FILL THE WASHED OUT AREA UNDER THE CONCRETE CARTPATH. - CREATE A 2' WIDE AND 5' LONG +/- CONCRETE FLUME FROM THE CARTPATH LEADING DOWN TOWARDS THE LAKE. - CONTINUE WITH HEAVY GRADE FILTER FABRIC AND RIP /RAP FROM THE END OF THE FLUME TO THE WATERS EDGE. - REPAIR THE EXISTING WASHOUT WITH FILL. NOTE: Proposal is based on conditions as they appear today. A concrete curb along the cartpaths edge ends here, creating an outfall to the lake. Under extreme rains high water may build up in this area creating more damage in the future. Date proposal 7 -2 -15 2145 Thank You. PROPOSAL VALID FOR 30DAYS I Total $7,850.00 Project Amount Name mm Serven Trent Err4rornenta t Services 5911 Country takes Dr. i fort Myers, Pl. 33905 M.R.I. UnderW WgetstonecRdists,[nc_ North Ft. Myers, FL 33917 239 -707 -5034 office 239 - 236 -1234 fax CGC 1507963 7!6/2015 502 � e . H-hage Hay This pmposat is to dive to remove sand and debris from lake Interconnect pipe at Heritage Bay located off of Smoke House Bay Dr. and lake 12 This price includes all labor and equipment needed to complete this job Total 2,41x10.011 $2,4100.00 all material Is punranteed to be as ipedned. All wank to be cmpletad In a wakrrnnllk¢ mamer according to "droll practices. Additional rlargas may occur if any changes are made dttttng scope of wart and will hecona an extra large aver and above the estfmate- a9 +rVearr a its contingent upon wNes, accidents ar delays yeyorrt our control. Owxtry to tarry lire, tornado and other necessary Irou ance . Our wakens are fully owered by warknanb compensation Irrurance. We will mt be responsible for any wfwwrn fnddents, when we dewarer any wet well system . cue to sink holes tresses or breeches etc. In and around wet well. this proposal does mot Indude replaeirl any handemp{ng(Grm,%trees, Ovubt.etc.I all Jdsdtes will AUdWtoed Slgrtattae ...,_ ..�..�._.. stoke Radford President Shia pnrsars.l xnay !>e w(UaA awn elf mcarzeplN wWrim 30 days. Arreptaurr of Proposal The Above price, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payments wilt be made within 30 days after ktvofced. If not we wilt agree to pay a jo% fatal fee. This proposal mvy awn If not accepted within thirty (30) days. Signature__ Date of acceptance 1'-q ^ f 1 (A 0 rn a% Z O CID >46 t� Lik I if WORM 4 FW.O jr - III Z O oor if WORM 4 FW.O jr - III Heritage Bay Lakes & Ponds F111yawl 1. Determine what we have With the exception of lake #30 (and possibly 420) the lakes and ponds at Heritage Bay were designed as storm water retention ponds. These types of ponds usually have a design life of 25 years at which point they must be restored by dredging out accumulated sediments. It is important that a determination be made on the current condition of our lakes and ponds. This can be accomplished by a. Examining the Plans and Specs for the lakes and ponds to gather information about the designed size, shape, depth, volume, flushing rate etc. b. Determining the sedimentation that has occurred in the ponds to date and how it impacts their designed life. If possible use this information to estimate remaining life Conducting tests of the lake and pond morphology to fill in any gaps identified from the analysis of the available data reviewed above. This could include gathering sediment samples to determine thickness and chemical characteristics, pond transects etc. d. Using the information gathered above, determine appropriate and representative locations to obtain water quality samples. Conduct baseline water quality testing and analysis to determine the current condition of our lakes and ponds. Since water quality tends to vary with depth and season, the base line sampling should be conducted quarterly for the first year and adjusted as appropriate in future years. Parameters to be considered should include; Dissolved Oxygen, pH, Color, Transmissivity, Metals (Cu), Pesticides /Herbicides (once annually) and others as deemed appropriate. Reviewing the criteria established by the South Florida Water Management District (SFWMD) as defined in permit number 11- 02234 -P. It is understood that this permit provides that "...permittee shall be responsible for the correction of any erosion, shoaling or water quality problems that result from the construction or operation of the [lakes]..." Decide what we want a. As stated above the primary purpose of our ponds is to manage storm water runoff. However, they can also provide aesthetic beauty, wildlife habitat etc. for the community. It is up to the community to determine what function(s), beyond their primary purpose of storm water management, they would like our lakes and ponds to provide and how much it is worth. b. It is important that the useful life of or lakes and ponds be maximized. As previously stated, the typical design life for storm water retentions ponds is about 25 years. Once filled with sediments these ponds must to be dredged to restore their capability to perform the designed function. Maximizing their life and planning for their eventual restoration in imperative. 3. Design what we need a. The baseline water monitoring program described above will need to be modified and adapted to meet the long term data needs to insure the continued health of our lakes and ponds. b. It is important that landscaping, golf course and storm water system management be evaluated to insure that Best Management Practices (BMP) are established and followed to reduce their impacts of the our lakes and ponds . Active (i.e. aeration) and passive (i.e. plants) action must be taken and or adjusted as necessary to extend the useful life of our lakes and ponds. d. Budget for the work described above as well as the eventual dredging of our storm water retention ponds. DRAFT Dennis Gagne June 30, 2015 SAMPLE S7UIly Teague, Calvin From: Bryan Hale <Bryan.Hale @dbiservices.com> Sent: Monday, June 22, 2015 11:17 AM To: Egan, Michelle; Teague, Calvin; Meadows, Molly Subject: Heritage Oak Park Results Attachments: 20150622111418597.pdf Attached are the results for the Bathymetric Mapping, Water Samples and Soil Samples. All tests seem in line with a standard storm water pond. The phosphorus and copper in the soil seem fairly low which is good. There was no algae present at the time of testing. The only things to be somewhat concerned would be the amount of sedimentation buildup at the bottom, which could be lessened overtime by aeration. If you have any questions please let me know. Thank You, BRYAN HALE. FORT MYERS BRANCH MANAGER 14250 Jetport Loop West I Fort Myers FL 33913 Office 239.561.1420 1 Mobile 239.633.3172 1 Fax 239.561.2883 bryan.hale @dbiservices.com I www.aquagenixaquatics.com A DIVISION OF DBi SERVICES Managing your Environmental Needs SePRO Research &Technology Campus � � 5u-SCRIPT IN MA T�su a 16013 Watson Seed Farm Rnad, Whitakers, NC 27891 Accreditation ii: 777497 Chain of Custody: 2015 - 44241 -00 LABORATORY REPORT Page 1 of 4 Total Customer Company Customer Contact Company :dame: Aquagenix -fort my /lab Contact Person: Bryan Hale Address: 1450 Jet Port Loop W F, -Mail Address: Bryan.Hale @dbiservices.com Fort Myers, FL 33913 Phone: (239) 561 -2883 Fax: Waterbody Information Waterbody: Heritage Oaks Park -FL Waterbody Size (acres): 7.8 Depth Average: 9 Sample Information Sample Sampling Sampling Temp at Lab Ill Location Test Method Results Date Time Receipt (C) 37134 H.O. 41 06/04/2015 Total Kjeldahl Nitrogen (mg/L) 7.02 EPA 351.2 Total Nitrate & Nitrite (mg/L) < 0.02 Campbell et al 2004 Nitrite (mg /L) < 0.02 FPA 354.1 Total Nitrogen (mg/L) 7.02 Calculated Nitrate (mg /L) < 0.02 Calculated Alkalinity (mg /L as CaCO3) 63 EPA 310.2 Chlorophyll a (µg /L) 11.7 EPA 445 Conductivity (µS /cm) 3200 EPA 120.1 Dissolved Oxygen (mg/L) 7.26 EPA 360.1 Free Reactive Phosphorus(µg /L) 5.5 EPA 365.3 Total Hardness (mg/L as CaCO3) 99.6 EPA 130.1 PH (SU) 8.1 EPA 150.1 Total Phosphorus (pg/L) 17.8 EPA 365.3 Turbidity (NTU) 1.43 EPA 180.1 37135 H.O. #2 06/04/2015 Original SePRO Research & Technology Campus Chain of Custody: 2015- 44241 -00 Page 2 of 4 Total Pages Waterbody Information Waterbody: Heritage Oaks Park -FL Waterbody Size (acres): 7.8 Depth Average: 9 Sample Information Sample Sampling Sampling Temp at Lab ID Location Test Method Results Date Time Receipt (C) Total Kjeldahl Nitrogen (mg/L) 8.03 EPA 351.2 Total Nitrate & Nitrite (mg/L) < 0.02 Campbell et at 2004 Nitrite (mg/L) < 0.02 EPA 354.1 Total Nitrogen (mg /L) 8.03 Calculated Nitrate (mg/L) < 0.02 Calculated Alkalinity (mg/L as CaCO3) 63 EPA 310.2 Chlorophyll a (µg/1.) 15.6 EPA 445 Conductivity (µS /cm) 3210 EPA 120.1 Dissolved Oxygen (mg/L) 7.60 EPA 360.1 Free Reactive Phosphorus(pg /L) 18 EPA 365.3 Total Hardness (mg/L as CaCO3) 100.1 EPA 130.1 pH (SU) 7.9 EPA 150.1 Total Phosphorus (µg /L) 53.1 EPA 365.3 Turbidity (NfU) 1.16 EPA 1.80.1. 37136 H.O. 03 06/0412015 Total Kieldahl Nitrogen (mg/L) 1.1.93 EPA 351.2 Total Nitrate & Nitrite (mg/L) < 0.02 Campbell et al 2004 Nitrite (mg/L) < 0.02 EPA 354.1 Total Nitrogen (mg /L) 11.93 Calculated Nitrate (mg/L) < 0.02 Calculated Original SePRO Research • &Technology Campus Chain of Custody: 2015- 44241 -00 Page 3 of 4 Total Pages Waterbody Information Waterbody: Heritage Oaks Park -FL Waterbody Size (acres): 7.8 Depth Average: 9 Sample Information Sample Sampling Sampling Temp at Lab ID Location Test Method Results Date Time Receipt (C) Alkalinity (mg /L as CaCO3) 62.3 EPA 310.2 Chlorophyll a (µg/L) 15.2 EPA 445 Conductivity (µS /cm) 3240 EPA 120.1 Dissolved Oxygen (mg/L) 7.48 EPA 360.1 (Free Reactive Phosphorus(µg/L) < 5.00 EPA 365.3 Total Hardness (mg/L as CaCO3) 100.3 EPA 130.1 pH (SU) 8.0 EPA 150.1 Total Phosphorus (µg /L) < 5.00 EPA 365.3 Turbidity (NTU) 0.83 EPA 180.1 Original SePRO Research & Technology Campus Chain of Custody: 2015- 44241 -00 Page 4 of 4 Total Pages Waterbody Information Waterbody: Heritage Oaks Park -FL Waterbody Size (acres): 7.8 Depth Average: 9 Sample Information Sample Sampling Sampling Temp at Lab ID Location Test Method Results Date Time Receipt (C) ANALYSIS STATEMENTS: SAMPLE RECEIPT /HOLDING TIMES: All samples arrived in an acceptable condition and were analyzed within prescl holding times in accordance with the SRTC Laboratory Sample Receipt Policy unless otherwise noted in the report. PRESERVATION: Samples requiring preservation were verified prior to sample analysis and any qualifiers will be noted in the report. QA /QC CRITERIA: All analyses met method criteria, except as noted in the report with data qualifiers. ACCREDITED METHODS: This laboratory is not accredited for the tests marked COMMENTS: No significant observations were made unless noted in the report. MEASUREMENT UNCERTAINTY: Uncertainty of measurement has been accounted for with regards to determination of compliance of instruments used for analysis: uncertainty measurements are available upon request. Laboratory Information Date Received: 06/15/2015 Time Received: 10:00 Date Results Sent: 06/15/2015 Date Analysis Performed: 06/15/2015 Disclaimer: The results listed within this Laboratory Report relate only to the samples tested in the laboratory. The analyses contained in this report were performed in accordance with the applicable certifications as noted. All soil samples are reported on a dry weight basis unless otherwise noted in the report. This Laboratory Report is confidential and is intended for the exclusive use of SRTC Laboratory and its client. This report shall not be reproduced, except in full, without written permission from SRTC Laboratoty. The Chain of Custody is included and is an essential component ofthis report. This entire report was reviewed and approved for release. CONFIDENTIAL17T NOTICE: This electronic transmission (including anyfiles attached hereto) may contain information that is privileged, confidential acrd protected from disclosure. The information is intended only for the use of the indiridual or entify named above and is subject to any confidentiality agreements with such party. 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Thank you u a Deacorn versi on: 145.70 Original Water Quality Analysis Explanation These water quality parameters are essential to document the condition of a water body and design custom treatment prescriptions to achieve desired management objectives. pH: Measure of how acidic or basic the water is ( pH 7 is considered neutral). <6 notably acidic 6 - 9 standard for typical freshwaters >9 notably basic 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Hardness: Measure of the concentration of divalent cations, primarily consisting of calcium and magnesium in typical freshwaters. 0 -60 mg/L as CaCO3 soft; 61 -120 moderately hard; 121 -180 hard; > 181 very hard Alkalinity- Measure of the buffering capacity of water, primarily consisting of carbonate, bicarbonate and hydroxide in typical freshwaters. Waters with lower levels are more susceptible to pH shifts. < 50 mg/L as CaCO3 low buffered; 51 -100 moderately buffered; 101 -200 buffered; > 200 high buffered Conductivity- Measure of the waters ability to transfer an electrical current, increases with more dissolved ions. < 50 uS /cm relatively low concentration may not provide sufficient dissolved ionsfor ecosystem health; 50 -1500 typical freshwaters; > 1500 may be stressfd to some freshwater organisms, though not uncommon in many areas Dissolved Oxygen- amount of diatomic oxygen dissolved in the water. < 2 mg1L likely toxicity with sufficient exposure duration; < 5 stressful to many aquatic organisms; >_ 5 able to support most fish and invertebrates Phosphorus: Essential nutrient often correlating to growth of algae in freshwaters. Total Phosphorus (TP) is the measure of all phosphorus in a sample as measured by persulfate strong digestion and includes: inorganic, oxidizable organic and polyphosphates. This includes what is readily available, potential to become available and stable forms. <12 ug /L oligotrophic; 12 -24 pg /L mesotrophic; 25 -96 #g/I, eutrophic; > 961eg11, hypereutrophic Free Reactive Phosphorus (FRP) is the measure of inorganic dissolved reactive phosphorus (POs 3, lipO3 2 etc). This form is readily available in the water column for algae growth. Nitrogen: Essential nutrient that can enhance growth of algae. Total N is all nitrogen in the sample (organic Nt and Ammonia) determined by the sum of the measurements for Total Kjeldhal Nitrogen (TKN) and ionic forms. Nitrites and Nitrates are the sum of total oxidized nitrogen, often readily free for algae uptake. < 1 mg /l, typical freshwater; 1 -10 potentially harmful; > 10 possible toxicity, above many regulated guidelines Chlorophyll a: primary light- harvesting pigment found in algae and a measure of the algal productivity and water quality in a system. 0- 2.6,ug/L oligotrophic; 2.7 -20 ugll, mesotrophic; 21 -56 ug'L eutrophic; > 56 pg /l. hypereutrophic Turbidity - Measurement of water clarity. Suspended particulates (algae, clay, silt, dead organic matter) are the common constituents impacting turbidity. < 10 NTU drinking water standards and typical trout waters; 10 -50 N7'U moderate; > 50 NTU potential impact to aquatic life. Page 1 of 1 - "W 4) O:.r. N• d q�' YR Y r h v M s ; N LL7 iC) r Vj x i1. N r N N dM ^' N N OL O z' ;.,.. x Lo T Lo x a eo cq ID o0 a m a o z � g o c� r h h r r Q LL [D O �n = oKK 00 C C C C ► U) ��-. •.:: N N N d U) O . E .M CL J ca tm •� a} mom 43 a's O N M '7 U N N N N "e Q N to (n to - "W 4) O:.r. N• W )meat DiStnct Agenda Package 18 Severn Trent Management Services 5911 Country Lakes Drive • Fort Myers, Florida 33905 Telephone: (239) 245 -7118 • Fax: (239) 245 -7120 June 22, 2015 Theodore & Victoria Skopak 11 Beehman Hill Rd. Essex Fells, NJ 07021 -1803 Kevin & Mary Johnsrud 4565 Forestview Ln. Ninneapolis, MN 55442 -2402 Dear Owners, The Heritage Bay COD has had two contractors look at the area between the homes of 10024 & 10028 Escambia Bay Ct. The elevations which the prospective contractors shot revealed that the sod and mulch elevations at the rear of the homes are higher than the actual level of the lanai pavers and enclosure in some places by as much as 2" to 4" which is not allowing the water to drain properly to the retention pond. As a result, water is trapped on the lanais. It is the responsibility of property owners to ensure water drains from their property to the storm water system. The COD is responsible for ensuring that the storm water system is functioning properly and can withstand the water it receives. Therefore, the issue in this instance would be a home owner issue and not one of the COD. Enclosed in this letter are the proposals the contractors provided as potential solutions to this problem. The COD would suggest moving forward with the Copeland Southern proposal at a cost of $5,775.00 and should be divided between the two homeowners. Copeland Southern recently completed a project for the COD off of Biscayne Ln. on lake 26. The issue on lake 26 was erosion to the lake bank due to run off draining from the homes rather than ponding of excess water. Though the source of the problem varies between these two instances, the solution is fairly similar. it is recommended that downspouts be connected to drain pipes and a series of bubblers that will transfer water directly into the lake. The COD has been very pleased with the work that Copeland Southern performed, and their proposal is in fact the lower proposal of the two received. If both homeowners are in agreement and wish to move forward with this project, the CDD would agree to oversee this work. In order for work to commence, payment made out Heritage Bay CDD and signed approvals from each homeowner authorizing work to take place on their property will need to be received. If you have any questions regarding this matter, please feel free to contact me. Sincerely, Cal Teague District Manager Copeland Southern Enterprises,inc. PROFESSIONAL SERVICES AGREEMENT BETWEEN COPELAND SOUTHERN ENTERPRISES, INC. AND Heritage Bay Community Development District in Naples OWNER INFORMATION: i 1-0 NE-R'S ADDRESS: 10154 Heritage Bay Blvd, Naples, FL 34120 B[LL TO THE ATTENTION OF: Justin Faircloth, Assistant District Manager PROJECT NAME: Lake #15 Drainage installation on 10024 Escambia flay CI WORK DESCRIPTION: Install 3 x 12" bubblers and 6 "ADS double wall drain pipes From Gutters out around South end of Geo Tube, on the South 2 Houses. REMARKS: 1) Permits to be pulled by owners or Engineer if needed. 2) All Sprinkler heads and lines within the last 3 lots must be clearly marked before construction begins 3) Yards will be restored after Drainage system has been installed. 4) 6" ADS Drainage system will be run around the south end of the Lakes Gco Tubes, instead of Jack and Boring underneath the Tubes, to keep from damaging or weakening the integrity of the Lakes Geo Tube System. 5) The preliminary Elevations that were shot on this project area shows that the Sod and Mulch on the last 3 Homes was 2" to 4" over the existing Lanais, causina water to back up on pool decks dung times of rain Agenda Package 19 DATE: 06/05/2015 OWNER INFORMAIION; TELEPHONE NO.: (239) 245 -7118 / 306 Fax No, (239) 245 -7120 E -MAIL: lncrin Faircloth rstservices.com. PROJECT MANAGER: Scott Copeland FEE AND TYPE: Time & Materials based upon the Rate Schedule in effect at the time service is tendered. Estimated Fees: S Nut -To- Exceed Fixed Fee based upon the Rate Schedule in effect at the time service is rendered: E Lump Sum Fixed Fee: S 5.775.00 Total Fees: S 5,775,00 Dear Justin Faircloth In Pursuant to your request, Copeland Southern Enterprises, Inc. is pleased to submit the following proposal for Lake #15 Drainage installation project for the above - referenced project: SCOPE OF SERVICES (Limited to the following): I. Crews will set up MOT around work areas to insure the safety of the residents and guests during the project. 2. CSEI will install 3 new 12 "xl2" Bubblers at the center of both Lot lines. 3. Crews will install and connect 4" ADS gutter pipes to both houses and connect to the newly installed 6" trunk line. 4. 6" ADS double wall pipes will be installed from bubbler out into and below the Lake control line low water mark. 5. Trenches and Lawns will be restored to original condition once the new drainage system has been installed. 6. Work is estimated to take I week to complete. 7. MOT will be removed after project has been completed and policed Note: Any additional work and services requested, and is not found In this Proposal can be done, but will rcqulrc additional cost to be paid In full with proposal fee upon the completion of job. We at Copeland Southern Enterprises hope this meets your approval and satisfies your requirements. if so please sign the contract proposal below and return a copy to our office by Fax or Email. Should you have any questions or need any additional information, Please do not hesitate to call Scott Copeland at 239- 995 -3684 or Mobile # 239- 707 -6806. Fax 239 - 995.0058 OWNER AUTHORIZATION: I warrant and represent that I am authorized to enter into this contract for professional services and I hereby authorize the performance of the above services and agree to pay the charges upon the completion of the Job resulting there from as identified in the "FEE TYPE" section above. I have read, understand and agree to these Standard Business Terms. Authorized Signature: Typed Name & Title: Date: Agenda Package 20 Southwest Development Services, inc. 690 23'a St NW Naples, FL 34120 (239) 470 -5522 To: HERITAGE BAY 10024 ESCAMBIA BAY CT. NAPLES Agenda Package 21 PROPOSAL Date Proposal 6 -16 -15 2143 Project Description Amount RE: YARD DRAINAGE ISSUES. (NORTH SIDE OF 10024) - MANUALLY DIG A TRENCH BETWEEN THE HOUSES IN $8,950.00 ORDER TO INSTALL ONE ADS CATCH BASIN ALONG WITH A PERFERATED A.D.S. PIPE, THE TRENCH WILL BE FILLED WITH #57 STONE AND WRAPED WITH HEAVY GRADE FILTER FABRIC CLOTH, TIE IN THE N.W. CORNER OF 10024 AND REAR SIDE AND POOL DOWN SPOUTS OF BOTH HOUSES. RUN THE PIPE AROUND THE NORTHERLY EDGE OF THE LAKE CONCRETE MAT AND UNDER THE TUBE, END OF PIPE TO BE WEIGHTED DOWN AND 10' FROM WATERS EDGE, REPLACE SOD AND DISPOSE OF FILL. - REPAIR THE WASH OUTS AT BOTH END OF THE LAKE MAT $3,200.00 WITH FILTER FABRIC AND RIP /RAP. NOTE: THE CATCH BASIN WILL BE INSTALLED ABOUT Yz WAY BETWEEN THE HOUSES. FOR THE MOST PART THE ROCK TRENCH BETWEEN THE HOUSES WILL ACT LIKE A CATCH BASIN OBSORBING THE WATER, SEAPING INTO THE PIPE AND DRAINING INTO THE LAKE. THE FABRIC WILL ACT LIKE A FILTER KEEPING THE TREACH FROM BEING CONTAMINATED WITH DIRT, Thank You. Total $12,150.00 Agenda Package 24 Heritage Bay Community Development District Financial Report May 31, 2015 Prepared by Agenda Package 25 Heritage Bay Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet - All Funds ............ . ............................ I ......... .... Statement of Revenues, Expenditures and Changes in Fund Balance General Fund ....................... ............................... Debt Service Fund .. ....................... I............................. SUPPORTING SCHEDULES Trend Report Non -Ad Valorem Special Assessments Cash and Investment Report Bank Reconciliation Check Register and Invoices Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Pages 8 - 40 Agenda Package 26 Heritage Bay Community Development District Financial Statements (Unaudited) May 31, 2015 HERITAGE BAY Community Development District ACCOUNT DESCRIPTION ASSETS Balance Sheet May 31, 2015 GENERAL FUND Agenda Package 27 Governmental Funds SERIES 2014 DEBT SERVICE FUND TOTAL Cash - Checking Account $ 105,652 $ - $ 105,652 Due From Other Funds - 19,615 19,615 Investments: Certificates of Deposit - 24 Months 51,193 - 51,193 Money Market Account 76,604 - 76,604 Deferred Cost - 7,686 7,686 Reserve Fund - 605,210 605,210 Revenue Fund - 455,208 455,208 TOTAL ASSETS $ 233,449 $ 1,087,719 $ 1,321,168 LIABILITIES Accounts Payable Accrued Expenses $ 15,619 $ - $ 15,619 1,072 1,072 Due To Other Funds 19,615 19,615 TOTAL LIABILITIES 36,306 - 36,306 FUND BALANCES Restricted for: Debt Service - 1,087,719 1,087,719 Assigned to: Operating Reserves 25,744 - 25,744 Reserves - Erosion Control 58,000 - 58,000 Unassigned: 113,399 - 113,399 TOTAL FUND BALANCES $ 197,143 $ 1,087,719 $ 1,284,862 TOTAL LIABILITIES & FUND BALANCES $ 233,449 $ 1,087,719 $ 1,321,168 Report Date: 6/30/2015 Page 1 HERITAGE BAY Agenda Package 28 Community Development District General Fund Statement of Revenues, Expenditures and Changes In Fund Balances For the Period Ending May 31, 2015 EXPENDITURES ANNUAL ADOPTED YTD YTD VARIANCE ($) MAY -15 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL REVENUES (2,000) 1,000 FICA Taxes 367 Interest - Investments $ 500 $ 332 $ 352 $ 20 $ 46 Special Assmnts- Tax Collector 249,995 249,995 246,845 (1,150) - Special Assmnts- Discounts (10,000) (10,000) (9,130) 870 - TOTAL REVENUES 240,495 240,327 240,067 260 46 EXPENDITURES Administration - 8,000 (8,000) 1,000 P/R -Board of Supervisors 4,800 3,200 5,200 (2,000) 1,000 FICA Taxes 367 244 398 (154) 77 ProfServ- Arbitrage Rebate 600 600 600 1,392 21,234 ProfServ- Dissemination Agent 1;000 1,000 1,000 6,500 - ProfServ- Engineering 15,000 10,000 12,720 (2,720) 3,105 ProfServ-Legal Services 7,000 4,666 12,155 (7,489) 2,210 ProfSery -Mgmt Consulting Sery 38,246 25,498 25,497 1 3,187 ProfS erv- Property Appraiser 3,750 3,750 - 3,750 - ProfServ- Special Assessment 5,000 5,000 5,000 - ProfServ- Trustee Fees 6,815 - - - - ProfServ-Web Site Maintenance - - 318 (318) 13 Auditing Services 3,600 3,600 1,500 2,100 - Postage and Freight 1,300 866 884 (18) 133 Insurance - General Liability 13,673 13,673 12,754 919 - Printing and Binding 1,400 934 880 54 146 Legal Advertising 1,400 934 404 530 - Misc -Bank Charges 750 496 472 24 58 Misc - Assessmnt Collection Cost 5,000 5,000 4,794 206 - Office Supplies 550 366 286 80 39 Annual District Filing Fee 175 175 200 (25) - Total Administration 110,426 80,002 85,062 (5,060) 91968 Field ProfServ-Field Management - 8,000 (8,000) 1,000 Contracts -Lake and Wetland 55,944 37;296 37,696 (400) 5,062 R &M- Aquascaping 24,125 16,082 12,415 3,667 R &M -Lake Erosion 35,000 23,334 21,942 1,392 21,234 R &M- Contingency 15,000 10,000 3,500 6,500 - Wall improvements - - 21,363 (21,363) 6,963 Total Field 130,069 86,712 104,916 (18,204) 34,259 TOTAL EXPENDITURES 240,495 166,714 189,978 23,264 44,227 Net change in fund balance $ - $ 73,613 $ 50,089 FUND BALANCE, BEGINNING (OCT 1, 2014) 147,054 147,054 147,054 FUND BALANCE, ENDING $ 147,054 $ 220,667 $ 197,143 Report Date: 6/30/2015 Page 2 HERITAGE BAY Agenda Package 29 Community Development District Series 2014 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending May 31, 2015 ACCOUNT DESCRIPTION ANNUAL ADOPTED BUDGET YTD BUDGET YTD ACTUAL VARIANCE ($j MAY-15 FAV(UNFAV) ACTUAL REVENUES 270,000 270,000 270,000 270,000 Interest - Investments $ - $ - $ 46 $ 46 $ 9 Special Assmnts- Tax Collector 1,308,564 1,308,564 1,302,518 (6,046) - Special Assmnts- Discounts (52,343) (52,343) (47,790) 4,553 - TOTAL REVENUES 1,256,221 1,256,221 1,254,774 (1.4471 9 EXPENDITURES Administration ProfServ- Property Appraiser 19,628 19,628 - 19,628 - Misc- Assessmnt Collection Cost 26,171 26,171 25,095 1,076 Total Administration 45,799 45,799 25,095 20,704 Debt Service Principal Debt Retirement 270,000 270,000 270,000 270,000 Interest Expense 476,311 476,311 476,311 476,311 Total Debt Service 746,311 746,311 746,311 746,311 TOTAL EXPENDITURES 792,110 792,110 771,406 20,704 746,311 Excess (deficiency) of revenues Over (under) expenditures 464,111 464,111 483,368 19,257 (746,302) OTHER FINANCING SOURCES (USES) Contribution to (Use of) Fund Balance 464,111 TOTAL FINANCING SOURCES (USES) 464,111 - - Net change in fund balance $ 464,111 $ 464,111 $ 483,368 $ 19,257 L(746,302) FUND BALANCE, BEGINNING (OCT 1, 2014) 604,351 604,351 604,351 FUND BALANCE, ENDING $ 1,068,462 $1,068,462 $1,087,719 Report Date: 6/3012015 Page 3 Agenda Package 30 Heritage Bay Community Development District Supporting Schedules May 31, 2015 Zn 134 r 2— U� as 47 Q i U Q N Q O Q 7 CIO Q W Q � H E _ E = U ae m' J � a f 0 5 n � v N 4 U C a i (Q N M� � WT V ? 4 C 4 S LL E ' 3 i d) c c d C N m Z T 'O c7V c s to N ` CD L W a C Q CL e N w c U- a� m � s V� e O EOOy . a� Q i e g- a" ae a aE opOe aE ae of ae ae aE o e a °. a4 �apY aE a° dap= a° ae a= a° a' a° dap ° - aQ $ O '- � ,� v� o O� N O 0 0 S S O Q, S lN0 m Of m d 0 ` S O'• � O M o N M � O OO � � �dy � � • � N O d � �,�ppO ��pO N d d p �'p p tp Vpp cfcpDp O O: N M O N N d ft M��36p -NS • V 4 V V1 e � � a � � r � � N Np Vf tV N r N � Vi N Rw t+j O �p N O O O O+ o fY CC ueN. m M o <o N d In oo rn S r ' V rCJ gp� b< .: ' fV M N in M OI � d l0 M 16 Id o d O (O IT M �0 0 o r r U VV £ m O 2 B _o U 3 d c ci f`�' m = 'o e• `,:.' ii ;�' .8 2i' 8. z z is 0 V a LL m o E m s �Q 1$ a E' • o .,. o u� �' a ? 5 �'s-�Enaaaaaao.da =�� m15� � w � U1 a T O N O m 0 U1 CC Agenda Package 32 Heritage Bay Community Development District Non -Ad Valorem Special Assessments - Collier County Tax Collector (Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2015 % COLLECTED 99.54% 99.54% 99.54% TOTAL OUTSTANDING $ 7,201 $ 1,156 $ 6,046 Report Date: 6/25/2015 Prepared by: Page 5 Severn Trent Management Services ALLOCATION BY FUND Discount ! Gross Date Net Amount (Penalties) Collection Amount General Debt Service Received Received Amount Costs Received Assessments Levied $ 1,558,564 $ 250,000 $ 1,308,564 Allocation % 100% 16% 84% 10129/14 $ 12,833 $ 726 $ 262 $ 13,820 $ 2,217 $ 11,603 11/14/14 150,646 6,405 3,074 160,125 25,685 134,441 11125/14 572,406 24,337 11,682 608,425 97,594 510,831 12/12/14 501,120 21,009 10,227 532,356 85,392 446,964 12/31/14 62,734 1,999 1,280 66,013 10,589 55,424 01/29/15 78,054 2,259 1,593 81,906 13,138 68,768 02/27115 18,036 290 368 18,694 2,999 15,695 03131/15 45,361 62 926 46,349 7,435 38,915 04130/15 23,362 (165) 477 23,674 3,797 19,876 TOTAL $ 1,464,553 $ 56,921 $ 29,889 $ 1,551,363 $ 248,845 $ 1,302,518 % COLLECTED 99.54% 99.54% 99.54% TOTAL OUTSTANDING $ 7,201 $ 1,156 $ 6,046 Report Date: 6/25/2015 Prepared by: Page 5 Severn Trent Management Services Agenda Package 33 Heritage Bay Community Development District Cash and Investment Balances May 31, 2015 ACCOUNT NAME BANK NAME MATURITY YIELD BALANCE GENERALFUND Operating Checking Account - MuniNow SunTrust NIA 0.10% $ 104,402 Checking Account BankUnited N/A 0.00% 1,250 Subtotal 105,652 Certificate of Deposit- 24 Months BankUnited 02/13/16 0.52% 51,193 Subtotal 51,193 Money Market Account Stonegate Bank NIA 0.25% 76,604 Subtotal 76,604 Subtotal General Fund 233,449 DEBT SERVICE FUND Series 2014 Deferred Cost Fund US Bank N/A 0.05% 7,686 Series 2014 Reserve Fund US Bank NIA 0.05% 605,210 Series 2014 Revenue Fund US Bank NIA 0.05% 455,208 Subtotal Debt Service 1,068,104 (1) Total $ 1,301,553 Note 1 Invested in First American Obligation Fund Report Date: 6/30/2015 Prepared By: Page B Sevem Trent Management Services Heritage Bay CDD Bank Reconciliation Bank Account No. 5148 Amount Statement No. 05 -15 A53.00 - 153.00 Statement Date 05/31/15 9.64 0.00 GIL Balance ($) 104,401.89 Statement Balance 104,586.59 G/L Balance 104,401.89 Outstanding Deposits 000 Positive Adjustments 0.00 0.00 184.70 184.70 — -- Subtotal 104,586.59 Subtotal 104,401.89 Outstanding Checks 184.70 Negative Adjustments 0.00 Total Differences 0.00 Ending G/L Balance 104,401.89 Ending Balance 104,401.89 Difference 0.00 Posting Date Document Tvue Document No. Description Deposits 05/12/15 IRS TX PYMT IRS DEBIT USATAXPYMT (5/7115 Mtg) 05/14/15 DEP00157 Collier Cty Tax Coll: Int Dist qtr ending 3131/15 05120/15 ACH DEBIT SunTrust Account Analysis Fee 05129/15 ACH CREDIT SunTrust - Bank Interest Income Total Deposits .. . . .. ... . . . . . . . . . . .. . . . . . . . . Outstanding Checks 05/11/15 Payment 832 RONALD A. GRANT Total Outstanding Checks . . . . . . . .. . . . . Agenda Package 34 Page 7 Cleared Amount Amoun Difference A53.00 - 153.00 0.00 9.64 9.64 0.00 -57.73 -57.73 0.00 4.52 4.52 0.00 - 196.57 - 196.67 0.00 184.70 0.00 184.70 184.70 Page 7 M a� m V a rn 'o c m m Q _U D c O E 0 � N Co Q E S U C N t U ac G oUJ E z C Q N C O C O a � v V m w V O T � 9 � Y c y `w O r a v U � `o IL _. O N O u) W O - o 0 o N o O O O to O O Q O N , N O h O O) O �O O W O O (O O O y N O cli 0^ p w O co E9 O O 69 CVY 7 Q O 0 0 0 0 0 0 0 0 0 0 0 0 o o O M M m N O M M M In U) O u) m V7 N N In u1 N A 10 In N t0 � LLM'�J O ui vS n n u'ti `u� vi v`�i viOi u� uu vi uMi vii U �i irS lo � � c m O1 U c c w O1 Q u. �' C .JP O V N O a V V W .S2 m O C J J N Z U) C W « w c0 CIJ N Of Q1 0 G O ." y C O O U J O W (L d W O D. 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W W w w o t' ❑❑ K w O p z z o ¢ m (D w m c: Ill Ljj cr cc = wL nNt �S Q Q x a E T° S 0 J m U to M o m z U D Q Z Z O O Z ?s x Z U gJ L S x Z U_ N J O) u) a' W Ool O tY � OW O' o ILI tC M Q to Ifs �A �A N N N LIP �2 to to T v �f1 CI G Y [] O ON N O N N O O_ r O_ O O 0 0 O 2a N `_ m In ap T (0 O U ro o o 0 it o g it m a: °° °� S S ik c o E ci W o pp 0 W O O 0 0 W pp 0 W 0 W pp 0= W pp O W 0 o O= W O O W O 0 w O V w o x 0 Q z a x 0 x x x x x try U x U = U v = U U U U U U U U elm Mobi w 0) O � IV N p d f�A a � U LL O F- y° LL N O O LL C] z W w N W EC < D & o C N IL Qz F 'm t° N O N 8 U rn Q J O a z Y m N 7 In N O ap N � g N W � N x � U � C O tl N (Y HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 HERITAGE BAY 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 Funds 9 Reconciliation of the Balance Sheet—Governmental Funds to the Statement of Net Position 10 Statement of Revenues, Expenditures and Changes in Fund Balances— Governmental Funds 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 12 Notes to Financial Statements 13-19 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual—General Fund 20 Notes to Required Supplementary Information 21 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 22-23 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 24 MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 25-26 2700 North Military Trail•Suite 350 Boca Raton, Florida 33431 �rau& Associates (561)994 9299•(800)299 4728 Fax (561)994-5823 CERTIFIED PUBLIC ACCOUNTANTS www.graucpa.com 40) INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Heritage Bay Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and each major fund of Heritage Bay Community Development District,Collier County,Florida("District")as of and for the fiscal year ended September 30,2014,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 each major fund of the District as of September 30,2014, 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 30,2015,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. Report on Other Legal and Regulatory Requirements We have also issued our report dated June 30,2015,on our consideration of the District's compliance with the requirements of Section 218.415,Florida Statutes,as required by Rule 10.556(10)of the Auditor General of the State of Florida.The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. June 30,2015 2 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of Heritage Bay Community Development District, Collier County, Florida ("District")provides a narrative overview of the Districts financial activities for the fiscal year ended September 30, 2014. Please read it in conjunction with the Districts Independent Auditor's Report, basic financial statements,accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS • The liabilities of the District exceeded its assets at the close of the most recent fiscal year resulting in a net position deficit balance of($7,512,693). • The change in the District's total net position in comparison with the prior fiscal year was($686,419), 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 30,2014,the District's governmental funds reported combined ending fund balances of $751,406,a decrease of($717,842)in comparison with the prior fiscal year. A portion of fund balance is restricted for debt service,assigned to operations and erosion control reserves,and the remainder is unassigned fund balance which is available for spending at the District's discretion. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as the introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1)government-wide financial statements,2)fund financial statements,and 3)notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 1) 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,deferred outflows of resources, liabilities and deferred inflows of resources 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. 2) 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. 3 OVERVIEW OF FINANCIAL STATEMENTS(Continued) 2)Fund Financial Statements(Continued) 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 outflow 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 balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains three governmental funds for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues,expenditures,and changes in fund balances for the general fund and the debt service fund,all of which are considered major funds.The debt service 2005 fund was closed during the current fiscal year. 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. 3) Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier,net position may serve over time as a useful indicator of an entity's financial position.In the case of the District,liabilities exceeded assets at the close of the most recent fiscal year. Key components of the District's net position are reflected in the following table: NET POSITION SEPTEMBER 30, 2014 2013 Current and other assets $ 778,018 $ 1,525,342 Capital assets,net of depreciation 9,800,455 10,488,050 Total assets 10,578,473 11,993,392 Current liabilities 132,459 465,959 Long-term liabilities 17,958,707 18,353,707 Total liabilities 18,091,166 18,819,666 Net position Net investment in capital assets (8,158,252) (7,885,657) Restricted 498,505 777,737 Unrestricted 147,054 281,646 Total net position(deficit) $ (7,512,693) $ (6,826,274) The District's net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure)less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District's investment in capital assets is reported net of related debt,it should be noted that the resources needed to repay this debt must be provided from other sources,since the capital assets themselves cannot be used to liquidate these liabilities. 4 GOVERNMENT-WIDE FINANCIAL ANALYSIS(Continued) The restricted portion of the District's net position represents resources that are subject to external restrictions on how they may be used. 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 additional costs related to the issuance of Bonds in the current fiscal year. 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, 2014 2013 Revenues: Program revenues $ 1,585,716 $ 1,586,465 General revenues 1,606 2,301 Total revenues 1,587,322 1,588,766 Expenses: General government 146,860 145,019 Maintenance and operations 845,775 734,582 Interest 1,029,700 995,707 Cost of issuance of new debt 251,406 - Total expenses 2,273,741 1,875,308 Change in net position (688,419) (286,542) Net position(deficit)-beginning,previously stated (6,826,274) (6,241,375) Effect of adoption of GASB No.65 - (298,357) Net position(deficit)-beginning,as restated (6,826,274) (6,539,732) Net position(deficit)-ending $ (7,512,693) $ (6,828,274) As noted above and in the statement of activities,the cost of all governmental activities during the fiscal year ended September 30, 2014 was$2,273,741. The costs of the District's activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, decreased slightly during the fiscal year. The remainder of the current fiscal year revenue includes interest income. In total, expenses, including depreciation,increased from the prior fiscal year,the majority of the increase is associated with the cost of issuing Series 2014 Refunding Bonds and lake erosion costs. 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. The general fund budget for the fiscal year ended September 30,2014 was amended to increase revenues by$337,appropriations by $135,041 and use of fund balance by $134,704. The increase in appropriations is primarily due to the additional costs incurred related to lake erosion repairs. Actual general fund expenditures exceeded appropriations by $778 for the fiscal year ended September 30, 2014. The over expenditure was not considered significant and no additional budget amendment was deemed necessary. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. 5 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At September 30,2014,the District had$15,671,039 invested in infrastructure,for its governmental activities. In the government-wide financial statements depreciation of$5,870,584 has been taken,which resulted in a net book value of$9,800,455.More detailed information about the District's capital assets is presented in the notes of the financial statements. Capital Debt At September 30, 2014, the District had $17,490,000 Bonds outstanding and$468,707 in Deferred Costs obligation outstanding for its governmental activities. During the 2014 fiscal year, the District issued $17,490,000 Series 2014 Capital Improvement Revenue Refunding Bonds.More detailed information about the District's capital debt is presented in the notes of the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND OTHER EVENTS The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition,it is anticipated that the general operations of the District will remain fairly constant. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide 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 the Heritage Bay Community Development District's Finance Department at 210 N. University Drive, Suite 702,Coral Springs,Florida, 33071. 6 HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30,2014 Governmental Activities ASSETS Cash and cash equivalents $ 49,817 Investments 101,924 Due from other governments 11,748 Restricted assets: Investments 614,529 Capital assets: Depreciable,net 9,800,455 Total assets 10,578,473 LIABILITIES Accounts payable 26,612 Accrued interest payable 105,847 Non-current liabilities: Due within one year 270,000 Due in more than one year 17,688,707 Total liabilities 18,091,166 NET POSITION Net investment in capital assets (8,158,252) Restricted for debt service 498,505 Unrestricted 147,054 Total net position(deficit) $ (7,512,693) See notes to the financial statements 7 HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30,2014 Total fund balances-governmental funds $ 751,406 Amounts reported for governmental activities in the statement of net position are different because: 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 15,671,039 Accumulated depreciation (5,870,584) 9,800,455 Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide financial statements. Accrued interest payable (105,847) Deferred costs obligation (468,707) Bonds payable (17,490,000) (18,064,554) Net position of governmental activities $ (7,512,693) See notes to the financial statements 10 HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2014 Major Funds Debt Service Debt Service Total Governmental General Fund 2005 2014 Funds REVENUES Assessments $ 150,610 $ 1,435,106 $ - $ 1,585,716 Interest 960 644 2 1,606 Total revenues 151,570 1,435,750 2 1,587,322 EXPENDITURES Current: General government 107,982 28,702 10,176 146,860 Maintenance and operations 106,262 - - 106,262 Debt Service: Principal - 395,000 17,490,000 17,885,000 Interest - 983,675 350,043 1,333,718 Cost of issuance - - 251,406 251,406 Capital outlay 71,918 - - 71,918 Total expenditures 286,162 1,407,377 18,101,625 19,795,164 Excess(deficiency)of revenues over(under)expenditures (134,592) 28,373 (18,101,623) (18,207,842) OTHER FINANCING SOURCES(USES) Transfers in - - 1,215,975 1,215,975 Transfers(out) - (1,215,975) - (1,215,975) Bond proceeds - - 17,490,000 17,490,000 Total other financing sources(uses) - (1,215,975) 18,705,975 17,490,000 Net change in fund balance (134,592) (1,187,602) 604,352 (717,842) Fund balance-beginning 281,646 1,187,602 - 1,469,248 Fund balance-ending $ 147,054 $ - $ 604,352 $ 751,406 See notes to the financial statements 11 HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2014 Net change in fund balances-total governmental funds $ (717,842) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report the face amount of Bonds issued as financial resources when debt is first issued, whereas these amounts are eliminated in the statement of activities and recognized as long-term liabilities in the statement of net position. (17,490,000) Governmental funds report capital outlays as expenditures, however,the cost of capital assets is eliminated in the statement of activities and capitalized in the statement of net position. 71,918 Repayment of long-term liabilities are reported as expenditures in the governmental fund financial statements, but such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities. 17,885,000 The change in accrued interest on long-term liabilities between the current and prior fiscal years is recorded in the statement of activities,but not in the governmental fund financial statements. 304,018 Depreciation on capital assets is not recognized in the governmental fund financial statements, but is reported as an expense in the statement of activities. (739,513) Change in net position of governmental activities $ (686,419) See notes to the financial statements 12 HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA NOTES TO FINANCIAL STATEMENTS NOTE 1—NATURE OF ORGANIZATION AND REPORTING ENTITY Heritage Bay Community Development District("District")was created on May 1,2005 by Ordinance 05-24 of the 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 and debt service are treated as charges for services and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.Other items not included among program revenues are reported instead as general revenues. 13 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus,Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose,the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred,as under accrual accounting. However,debt service expenditures are recorded only when payment is due. Assessments Assessments are non-ad valorem assessments on benefited lands within the District.Assessments are levied to pay for the operations and maintenance of the District. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1.The District's annual assessments for operations and debt service are billed and collected by the County Tax Assessor/Collector for non-Developer owned lots.The amounts remitted to the District are net of applicable discounts or fees. In addition, amounts remitted by the County Tax Assessor/Collector 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 funds: 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. Debt Service Funds The debt service funds are used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first for qualifying expenditures,then unrestricted resources as they are needed. Assets,Liabilities and Net Position or Equity Restricted Assets These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions. Deposits and Investments The District's cash and cash equivalents are considered to be cash on hand and demand deposits(interest and non-interest bearing). 14 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets.Liabilities and Net Position or Equity(Continued) Deposits and Investments(Continued) 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 paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition,surplus funds may be deposited into certificates of deposit which are insured and any unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture. The District records all interest revenue related to investment activities in the respective funds and reports investments at fair value. Inventories and Prepaid Items Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets,which include property,plant and equipment,and infrastructure assets(e.g.,roads,sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial,individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property,plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years Water management 25 Other Infrastructure 10 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. 15 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets,Liabilities and Net Position or Equity(Continued) Long-Term Obliaations In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred. In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received,are reported as debt service expenditures. Deferred Outflows/Inflows of Resources Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s). For example, the District would record deferred outflows of resources on the statement of net position 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). Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s). For example,when an asset is recorded in the governmental fund financial statements, but the revenue is unavailable,the District reports a deferred inflow of resources on the balance sheet 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. The District can establish limitations on the use of fund balance as follows: 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 established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also 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. 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. 16 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) 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 AND INVESTMENTS Deposits The District's cash balances including certificates of deposit as shown below 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. Investments The District's investments were held as follows at September 30,2014: Investment Fair Value Credit Risk Maturity Money Market Fund-First American Weighted average of the Governement Obligation CL Y $ 614,529 S&P AAAm fund portfolio:43 days Bank United CD-24 months 51,126 N/A 2/13/2016 Bank United CD-18 months 50,798 N/A 2/13/2015 Total Investments $ 716,453 Credit risk—For investments,credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments. Concentration risk—The District places no limit on the amount the District may invest in any one issuer. Interest rate risk—The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. However,the Bond Indenture limits the type of investments held using unspent proceeds. 17 NOTE 5—CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30,2014 was as follows: Beginning Balance Additions Reductions Ending Balance Governmental activities Capital assets,not being depreciated Construction in progress $ 207,755 $ - $ (207,755) $ - Total capital assets,not being depreciated 207,755 - (207,755) - Capital assets,being depreciated Infrastructure 15,391,366 279,673 - 15,671,039 Total capital assets,being depreciated 15,391,366 279,873 - 15,671,039 Less accumulated depreciation for. Infrastructure 5,131,071 739,513 - 5,870,584 Total accumulated depreciation 5,131,071 739,513 - 5,870,584 Total capital assets,being depreciated,net 10,260,295 (459,840) - 9,800,455 Governmental activities capital assets,net $ 10,468,050 $ (459,840) $ (207,755) $ 9,800,455 Depreciation expense was charged to maintenance and operations function. NOTE 6—LONG-TERM LIABILITIES Series 2005 On November 1,2005,the District issued$20,125,000 of Capital Improvement Revenue Bonds,Series 2005 due on May 1,2036 with a fixed interest rate of 5.50%.The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1,2007 through May 1, 2036. In the current fiscal year,the Series 2005 Bonds were refunded with the issuance of Series 2014 Capital Improvement Revenue Refunding. Series 2014 On August 1,2014,the District issued$17,490,000 of Capital Improvement Revenue Refunding Bonds,Series 2014 due on May 1,2029 with a fixed interest rate of 3.80%.The Bonds were issued to refund the Series 2005 Bonds. Interest is to be paid semiannually on each May 1 and November 1, commencing May 1, 2015. Principal on the Bonds is to be paid serially commencing May 1,2015 through May 1,2029. The Series 2014 Bonds are subject to redemption at the option of the District prior to their maturity.The Bonds are subject to extraordinary mandatory redemption prior to maturity,in whole on any date,and in part on each interest payment date,in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements.The District was in compliance with the requirements at September 30, 2014. Refunded Bonds The District refunded the Series 2005 Capital Improvement Revenue Bonds, which had an outstanding balance of$17,490,000 at the time of the refunding with the proceeds from the Series 2014 Bonds and available funds on hand. The refunding was a current refunding and resulted in an economic gain of $2,635,236.The refunded Bonds have been paid off as of September 30,2014. Developer Liability In prior years, In connection with the Series 2005 project, the Developer advanced certain amounts to the District for construction.The deferred cost liability was estimated at$1,474,304.A liability balance of$468,707 exists at September 30, 2014. No deferred payments were made in the current fiscal year. The remaining balance will be paid as funds become available.The balance owed to the Developer is not included in the maturity schedule below. 18 NOTE 6—LONG-TERM LIABILITIES(Continued) Long-term Debt Activity Changes in long-term liability activity for the fiscal year ended September 30,2014 were as follows: Beginning Due Within One Balance Additions Reductions Ending Balance Year Governmental activities Bonds payable: Series 2005 $ 17,885,000 $ - $ 17,885,000 $ - $ - Series 2014 - 17,490,000 - 17,490,000 270,000 Deferred cost obligation 468,707 - - 468,707 - Total $ 18,353,707 $ 17,490,000 $ 17,885,000 $ 17,958,707 $ 270,000 At September 30,2014,the scheduled debt service requirements on the long-term debt were as follows: Governmental Activities Year ending September 30: Principal Interest Total 2015 $ 270,000 $ 478,311 $ 746,311 2016 545,000 654,360 1,199,360 2017 565,000 633,650 1,198,650 2018 585,000 612,180 1,197,180 2019 610,000 589,950 1,199,950 2020-2024 3,425,000 2,583,430 6,008,430 2025-2029 11,490,000 1,878,910 13,368,910 Total $ 17,490,000 $ 7,428,791 $ 24,918,791 NOTE 7—DEFICIT NET POSITOIN The District has a government-wide net position deficit of($7,512,693)as of September 30,2014. There is no such deficit reflected in the governmental fund statements. The deficit in the government-wide statement of net position primarily relates to the excess of the amount of long-term debt outstanding over the amount of capital assets,net of accumulated depreciation. In a prior year various infrastructure improvements necessary to complete the District were financed through the issuance of long-term debt but were conveyed to other entities for maintenance. Those capital assets are not included in the assets of the District however,the long- term debt associated with those assets remains a liability of the District. NOTE 8—MANAGEMENT COMPANY The District has contracted with a management company to perform management advisory services,which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management,accounting,financial reporting,computer and other administrative costs. NOTE 9—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. 19 HERITAGE BAY 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 30,2014 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Assessments $ 149,843 $ 150,180 $ 150,610 $ 430 Interest 500 500 960 460 Total revenues 150,343 150,680 151,570 890 EXPENDITURES Current: General government 102,976 107,204 107,982 (778) Physical environment 47,367 88,705 106,262 (17,557) Capital outlay - 89,475 71,918 17,557 Total expenditures 150,343 285,384 286,162 (778) Excess(deficiency)of revenues over(under)expenditures - (134,704) (134,592) 112 OTHER FINANCING SOURCES Use of fund balance - 134,704 - (134,704) Total other financing sources - 134,704 - (134,704) Net change in fund balances $ - $ - (134,592) $ (134,592) Fund balance-beginning 281,646 Fund balance-ending $ 147,054 See notes to required supplementary information 20 HERITAGE BAY 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. The general fund budget for the fiscal year ended September 30, 2014 was amended to increase revenues by$337,appropriations by$135,041 and use of fund balance by$134,704. The increase in appropriations is primarily due to the additional costs incurred related to lake erosion repairs. Actual general fund expenditures exceeded appropriations by$778 for the fiscal year ended September 30, 2014. The over expenditure was not considered significant and no additional budget amendment was deemed necessary. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. 21 0 2700 North Military Trail•Suite 350 Graze& Associates Boca Raton,Florida 33431 (561)994-9299•(800)289-4728 Fax (561)994-5823 CERTIFIED PUBLIC ,4(.COUN'I'ANTS www.graucpa.com 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 Heritage Bay 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 each major fund of Heritage Bay Community Development District,Collier County,Florida("District")as of and for the fiscal year ended September 30,2014, 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 30,2015. 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. 22 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. ,b2 4 J June 30,2015 23 2700 North Military Trail•Suite 350 Boca Raton, Florida 33431 Grau& Associates (561)994-9299•(800)299-4728 Fax (561)994-5823 CE RI'l Ft El) PUBLIC ACCOUNTANTS www.graucpa.com INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415,FLORIDA STATUTES,REQUIRED BY RULE 10.556(10)OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA To the Board of Supervisors Heritage Bay Community Development District Collier County,Florida We have examined Heritage Bay Community Development District, Collier County, Florida's ("District") compliance with the requirements of Section 218.415,Florida Statutes,in accordance with Rule 10.556(10)of the Auditor General of the State of Florida during the fiscal year ended September 30,2014.Management is responsible for the District's compliance with those requirements.Our responsibility is to express an opinion on the District's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and,accordingly,included examining,on a test basis,evidence about the District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the District's compliance with specified requirements. In our opinion,the District complied, in all material respects,with the aforementioned requirements for the fiscal year ended September 30,2014. This report 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,management,and the Board of Supervisors of Heritage Bay Community Development District,Collier County,Florida and is not intended to be and should not be used by anyone other than these specified parties. June 30,2015 24 2700 North Military Trail•Suite 350 Boca Raton, Florida 33431 Grau& Associates (561)994-9299•(800)299-4728 Fax (561)994-5823 CER'FlFII D PUBLIC ACCOUNTANTS www.graucpa.com MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Heritage Bay Community Development District Collier County,Florida Report on the Financial Statements We have audited the accompanying basic financial statements of Heritage Bay Community Development District,Collier County, Florida("District")as of and for the fiscal year ended September 30,2014,and have issued our report thereon dated June 30,2015. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States;and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule 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 Independent Auditor's Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550,Rules of the Auditor General.Disclosures in those reports,which are dated June 30,2015,should be considered in conjunction with this management letter. Purpose of this 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. Il. 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 Heritage Bay 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 Heritage Bay 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 30,2015 25 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 30,2013. 2. 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 30,2014. 3. 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 30,2014. 4. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 5. The financial report filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes agrees with the September 30,2014 financial audit report. 6. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 7. We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30,2014.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. 26 HERITAGE BAY Community Development District Annual Operating and Debt Service Budget Fiscal Year 2016 Version 7-Modified Approved Budget (Updated 06/30/15 5:00 pm) Prepared by SEVERN TRENT SERVICES HERITAGE BAY Community Development District Table of Contents Page# OPERATING BUDGET General Fund Summary of Revenues,Expenditures and Changes in Fund Balances ......................... 1-2 Amortization Schedule 3-4 BudgetNarrative 5-7 Exhibit A-Alloctation of Fund Balances 8 DEBT SERVICE BUDGET Series 2014 Summary of Revenues,Expenditures and Changes in Fund Balances 9 Amortization Schedule 10 Budget Narrative 11 SUPPORTING BUDGET SCHEDULES 2015-2016 Non-Ad Valorem Assessment Summary 12 Heritage Bay Community Development District Operating Budget Fiscal Year 2016 HERITAGE BAY Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2016 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU JUNE PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 MAY-2015 SEP-2015 FY 2015 FY 2016 REVENUES Interest-Investments $ 959 $ 500 $ 352 $ 176 $ 528 $ 500 Special Assmnts-Tax Collector 156,250 249,995 248,845 1,155 250,000 250,000 Special Assmnts-Wall Repair Project - - - - - 62,500 Special Assmnts-Reserve Appropriation - - - - - 31,250 Special Assmnts-Discounts (5,640) (10,000) (9,130) - (9,130) (13,750) TOTAL REVENUES 151,569 240,495 240,067 1,331 241,398 330,500 EXPENDITURES Administrative P/R-Board of Supervisors 4,400 4,800 5,200 2,000 7,200 8,000 FICA Taxes 367 367 398 153 551 612 ProfServ-Arbitrage Rebate 600 600 600 - 600 - ProfServ-Dissemination Agent 1,000 1,000 1,000 - 1,000 - ProfServ-Engineering 16,485 15,000 12,720 3,725 16,445 14,000 ProfServ-Legal Services 6,134 7,000 12,155 6,078 18,233 5,000 ProfServ-Mgmt Consulting Sery 37,132 38,246 25,497 12,749 38,246 39,393 ProfServ-Property Appraiser 6,143 3,750 - 3,750 3,750 5,156 ProfServ-Special Assessment 5,000 5,000 5,000 - 5,000 5,150 ProfServ-Trustee Fees 5,926 6,815 - 6,815 6,815 - ProfServ-Web Site Maintenance - - 318 159 477 750 Auditing Services 3,400 3,600 1,500 2,100 3,600 3,600 Postage and Freight 2,327 1,300 884 442 1,326 1,300 Insurance-General Liability 12,430 13,673 12,754 - 12,754 13,000 Printing and Binding 868 1,400 880 440 1,320 1,000 Legal Advertising 2,679 1,400 404 202 606 1,200 Misc-Bank Charges 648 750 472 236 708 750 Misc-Assessmnt Collection Cost 1,896 5,000 4,794 23 4,817 6,875 Office Supplies 371 550 286 143 429 550 Annual District Filing Fee 175 175 200 - 200 175 Total Administrative 107,981 110,426 85,062 39,014 124,076 106,511 Field ProfServ-Field Management - - 8,000 4,000 12,000 12,360 R&M-Contingency - - - - - 2,000 Wall Improvements - - 21,363 20,887 42,250 218,500 Total Field - - 29,363 24,887 54,250 232,860 Lakes 8,Ponds Contracts-Lake and Wetland 52,318 55,944 37,696 20,248 57,944 60,744 R&M-Aquascaping 17,561 24,125 12,415 9,500 21,915 5,000 R&M-Lake 15,543 - - - - - R&M-Lake Erosion 89,475 35,000 21,942 18,141 40,083 35,000 R&M-Contingency 3,283 15,000 3,500 4,500 8,000 5,000 Misc Improvements - - - - - 2,000 Reserve-Lakes&Ponds - - - - - 32,509 Total Lakes 8,Ponds 178,180 130,069 75,553 52,389 127,942 140,253 Annual Operating and Debt Service Budget Fiscal Year 2016 Page 1 HERITAGE BAY Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2016 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU JUNE PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 MAY-2015 SEP-2015 FY 2015 FY 2016 Debt Service Principal Payment - - - - - 33,333 Interest Expense - - - - - 6,670 Total Debt Service - - - - - 40,003 TOTAL EXPENDITURES 286,161 240,495 189,978 116,290 306,268 519,628 Excess(deficiency)of revenues Over(under)expenditures (134,592) - 50,089 (114,959) (64,870) (189,128) OTHER FINANCING SOURCES(USES) Loan/Note Proceeds - 250,000 250,000 - Contribution to(Use of)Fund Balance - - - - - (189,128) I TOTAL OTHER SOURCES(USES) - - - 250,000 250,000 (189,128) Net change in fund balance (134,592) 50,089 135,041 185,130 (189,128) FUND BALANCE,BEGINNING 281,646 147,054 147,054 - 147,054 332,184 FUND BALANCE,ENDING $ 147,054 $ 147,054 $ 197,143 $ 135,041 $ 332,184 $ 143,056 Annual Operating and Debt Service Budget Fiscal Year 2016 Page 2 HERITAGE BAY Community Development District $250,000 Loan, 5 years, 4.25% Amortization Schedule Principal Date Payment Principal Interest Balance i $250,000.00 2/1/2016 $5,052.09 $4,166.67 $885.42 $245,833.33 3/1/2016; 5,037.33 4,166.67 870.66 $241,666.66 4/1/2016' 5,022.57 4,166.67 855.90 $237,499.99 5/1/20161 5,007.82 4,166.67 841.15 $233,333.32 6/1/20161 4,993.06 4,166.67 826.39 $229,166.65 7/1/20161 4,978.30 4,166.67 811.63 $224,999.98 8/1/2016' 4,963.54 4,166.67 796.87 $220,833.31 9/1/2016 4,948.79 4,166.67 782.12 $216,666.64 10/1/2016 4,934.03 4,166.67 767.36 $212,499.97 11/1/2016 4,919.27 4,166.67 752.60 $208,333.30 12/1/2016 4,904.52 4,166.67 737.85 $204,166.63 1/1/2017 4,889.76 4,166.67 723.09 $199,999.96 2/1/2017 4,875.00 4,166.67 708.33 $195,833.29 3/1/20171 4,860.25 4,166.67 693.58 $191,666.62 4/1/2017 4,845.49 4,166.67 678.82 $187,499.95 5/1/2017 4,830.73 4,166.67 664.06 $183,333.28 6/1/2017 4,815.98 4,166.67 649.31 $179,166.61 7/1/2017' 4,801.22 4,166.67 634.55 $174,999.94 8/1/20171 4,786.46 4,166.67 619.79 $170,833.27 9/1/20171 4,771.70 4,166.67 605.03 $166,666.60 10/1/20171 4,756.95 4,166.67 590.28 $162,499.93 11/1/20171 4,742.19 4,166.67 575.52 $158,333.26 12/1/20171 4,727.43 4,166.67 560.76 $154,166.59 1/1/20181 4,712.68 4,166.67 546.01 $149,999.92 2/1/20181 _-_ 4,697.92 4,166.67 531.25 $145,833.25 3/1/20181 4,683.16 4,166.67 516.49 $141,666.58 4/1/20181 4,668.41 4,166.67 501.74 $137,499.91 5/1/2018 4,653.65 4,166.67 486.98 $133,333.24 6/1/20181 4,638.89 4,166.67 472.22 $129,166.57 7/1/2018 4,624.13 4,166.67 457.46 $124,999.90 8/1/2018 4,609.38 4,166.67 442.71 $120,833.23 9/1/2018; 4,594.62 4,166.67 427.95 $116,666.56 10/1/20181 4,579.86 4,166.67 413.19 $112,499.89 11/1/20181 4,565.11 4,166.67 398.44 $108,333.22 12/1/20181 4,550.35 4,166.67 383.68 $104,166.55 1/1/20191 4,535.59 4,166.67 368.92 $99,999.88 2/1/20191 4,520.84 4,166.67 354.17 $95,833.21 3/1/20191 4,506 08 4,166.67 339.41 $91,666.54 4/1/20191 4,491.32 4,166.67 324.65 $87,499.87 5/1/2019' 4,476.57 4,166.67 309.90 $83,333.20 6/1/20191 4,461.81 4,166.67 295.14 $79,166.53 7/1/20191 4,447.05 4,166.67 280.38 $74,999.86 8/1/2019' 4,432.29 4,166.67 265.62 $70,833.19 9/1/2019; _ 4,417.54 4,166.67 250.87 $66,666.52 Annual Operating and Debt Service Budget Fiscal Year 2016 Page 3 HERITAGE BAY Community Development District $250,000 Loan, 5 years, 4.25% 1 Amortization Schedule Principal Date Payment Principal Interest Balance i 10/1/2019 4,402.78 4,166.67 236.11 $62,499.85 11/1/20191 4,388.02 4,166.67 221.35 $58,333.18 12/1/20191 4,373.27 4,166.67 206.60 $54,166.51 1/1/2020; 4,358.51 4,166.67 191.84 $49,999.84 2/1/20201 4,343.75 4,166.67 177.08 $45,833.17 3/1/2020; 4,329.00 4,166.67 162.33 $41,666.50 4/1/2020; 4,314.24 4,166.67 147.57 $37,499.83 5/1/20201 4,166.67 _ 132.81 $33,333.16 6/1/20201 4,284.72 4,166.67 118.05 $29,166.49 7/1/2020 4,269.97 4,166.67 103.30 $24,999.82 8/1/2020: 4,255.21 4,166.67 88.54 _ $20,833.15 9/1/2020 4,240.45 4,166.67 73.78 $16,666.48 10/1/20201_ 4,166.67 59.03 $12,499.81 11/1/2020' 4,210.94 4,166.67 44.27 $8,333.14 12/1/2020, 4,196.18 4,166.67 29.51 $4,166.47 1/1/2021; 4,181.23 4,166.47 14.76 ($0.00) $277,005.19 $250,000.00 $27,005.19 Annual Operating and Debt Service Budget Fiscal Year 2016 Page 4 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2016 REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their operating and money market accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels(using the uniform method)within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Wall Repair Project The District will levy a Non-Ad Valorem assessment on all sold and platted parcels(using the uniform method)within the District in order to pay for the repair of the wall embankment and any impending debt associated with making repairs. Assessment will be$60 per parcel and it will be levied until the loan being used to make the repairs Is repaid which is expected to be in 2021. Special Assessments-Reserve Appropriation The District will levy a Non-Ad Valorem assessment on all sold and platted parcels(using the uniform method)within the District in order reestablish reserves which were depleted due to the District having to address numerous lake bank erosion issues. The assessment will be $15 per parcel and dedicated specifically to reserves until the reserves are reestablished at an appropriate level. Special Assessments-Discounts Per Section 197.162 and Section 197.3632 of the Florida Statutes, discounts are allowed for early payments of assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. The budgeted amount for the fiscal year is calculated at 4%of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative P/R-Board of Supervisors Chapter 190 of the Florida Statutes allows for members of the Board of Supervisors to be compensated$200 per meeting at which they are in attendance. The amount for the Fiscal Year is based upon all supervisors attending all of the meetings. Professional Services-Engineering The District's engineer provides general engineering services to the District, i.e. attendance and preparation for board meetings when requested,review of invoices,and other specifically requested assignments. Professional Services-Legal Services The District's attorney provides general legal services to the District,i.e.,attendance and preparation for Board meetings, review of contracts, review of agreements and resolutions, and other research as directed or requested by the Board of Supervisors and the District Manager. Professional Services-Management Consulting Services The District receives Management, Accounting and Administrative services as part of a Management Agreement with Severn Trent Environmental Services,Inc. Sevem Trent manages all of the District's financial activities such as accounts payable,financial statements,auditing and budgeting in accordance with the management contract in effect. An increase f 3%is projected for the next fiscal year to cover operating expenses. Annual Operating and Debt Service Budget Fiscal Year 2016 Page 5 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2016 EXPENDITURES Administrative(continued) Professional Services-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries,and the names and addresses of the owners of such property.The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service which is based upon 1.5%of the anticipated Non-Ad Valorem assessment collections. Professional Services-Special Assessment This is the Administrative fees to prepare the District's special assessment roll. Professional Services-Web Site Maintenance The cost of web hosting and regular maintenance of the District's website by Severn Trent Services. Auditing Services The District is required to conduct an annual audit of its financial records by an Independent Certified Public Accounting Firm. The budgeted amount for the fiscal year is based on contracted fees from an existing engagement letter. Postage and Freight Actual postage used for District mailings including agenda packages,vendor checks and other correspondence. Insurance-General Liability The District's General Liability&Public Officials Liability Insurance policy is with Public Risk Insurance Agency,Inc. They specialize in providing governmental insurance coverage.The budgeted amount projects a 15%increase in the premium. Printing and Binding Copies used in the preparation of agenda packages,required mailings,and other special projects. Legal Advertising The District is required to advertise various notices for Board meetings and other public hearings in a newspaper of general circulation. Miscellaneous-Bank Charges This includes monthly bank charges for the maintenance of the operating accounts. Miscellaneous-Assessment Collection Costs The District reimburses the Collier County Tax Collector for her or his necessary administrative costs. Per the Florida Statutes,administrative costs shall include,but not be limited to,those costs associated with personnel,forms,supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2%on the amount of special assessments collected and remitted, whichever is greater. The assessment collection cost is based on a maximum of 2%of the anticipated assessment collections. Office Supplies Supplies used in the preparation and binding of agenda packages,required mailings,and other special projects. Annual District Filing Fee The District is required to pay an annual fee of$175 to the Department of Economic Opportunity Division of Community Development. Annual Operating and Debt Service Budget Fiscal Year 2016 Page 6 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2016 EXPENDITURES Field Professional Services-Field Management Services Field Management Services for the District is performed by Severn Trent Services. This includes the regular inspection of all District assets and contractor performance monitoring. Items include but are not limited to: irrigation systems,ponds, wetlands, preserves, roads, street signs, sidewalks and drainage systems. A monthly report is provided for the Board's review to allow for their consideration of issues and action to consider. R&M-Contingency All other expenses that do not fall into the categories described above will be expensed to contingency. Wall Improvements Improvements that are necessary to stabilize the lake bank near the bridge structure as determined by engineering reports. These improvement measures are necessary to avoid a catastrophic failure of lakes 30A&30B lake banks along Heritage Bay Boulevard. Lakes&Ponds Contracts-Lake&Wetland A contract was negotiated with Lake&Wetland Management for monthly lake maintenance of the District's 31 lakes and littoral shelf maintenance which includes approximately 14.52 acres. Services began February 2014. R&M-Aquascaping This is for any repair and maintenance expenses pertaining to the District's lakes that are not covered in the contract. R&M-Lake Erosion This is for any repair and maintenance expenses pertaining to erosion control that are not covered in the contract. R&M-Contingency All other expenses that do not fall into the categories described above will be expensed to contingency. Misc-Improvements This is for lake improvements specifically. Reserve—Lakes&Ponds This is for lake improvement expenses that are projected to occur in the future. Debt Service Principal Debt Retirement During FY2015,the District is in the process of procuring a 5 year loan for$250,000 with a projected APR of 4.25%. Beginning in FY16,monthly principal payments will be made towards the loan balance. Interest Expense The District will make monthly interest payments on the loan balance. Annual Operating and Debt Service Budget Fiscal Year 2016 Page 7 HERITAGE BAY Community Development District General Fund Exhibit"A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance-Fiscal Year 2016 $ 332,184 Net Change in Fund Balance-Fiscal Year 2016 (189,128) Reserves-Fiscal Year 2016 Additions 32,509 (Total Funds Available(Estimated)-9/30/2016 175,566 I ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve-First Quarter Operating Capital 90,500 t1i I Total Allocation of Available Funds 90,500 I Total Unassigned(undesignated)Cash $ 85,066 Notes (1)Represents approximately 2 months of operating expenditures Annual Operating and Debt Service Budget Fiscal Year 2016 Page 8 Heritage Bay Community Development District Debt Service Budget Fiscal Year 2016 HERITAGE BAY Community Development District Series 2014 Debt Service Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2016 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU JUNE PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 MAY-2015 SEP-2015 FY 2015 FY 2016 REVENUES Interest-Investments $ 4 $ - $ 46 $ 33 $ 79 $ - Special Assmnts-Tax Collector - 1,308,564 1,302,518 6,046 1,308,564 1,308,564 Special Assmnts-Discounts - (52,343) (47,790) - (47,790) (52,343) TOTAL REVENUES 4 1,256,221 1,254,774 8,079 1,260,853 1,256,221 EXPENDITURES Administrative ProfServ-Arbitrage - - - - - 600 ProfServ-Property Appraiser 20,810 19,628 - 19,628 19,628 19,628 ProfServ-Trustee - - - - - 6,815 Misc-Assessmnt Collection Cost (10,632) 26,171 25,095 121 25,216 26,171 Total Administrative 10,178 45,799 25,095 19,749 44,844 53,215 Debt Service Principal Debt Retirement - 270,000 270,000 - 270,000 545,000 Interest Expense - 476,311 476,311 - 476,311 654,360 Bond Issue Expense 251,406 - - - - - Total Debt Service 251,406 746,311 746,311 - 746,311 1,199,360 TOTAL EXPENDITURES 261,584 792,110 771,406 19,749 791,155 1,252,575 Excess(deficiency)of revenues Over(under)expenditures (261,580) 464,111 483,368 (13,670) 469,698 3,647 OTHER FINANCING SOURCES(USES) Interfund Transfer-In 1,215,975 - - - - - Proceeds of Refunding Bonds 17,490,000 - - - - - Payment to Refunded Bond (17,840,043) - - - - - Contribution to(Use of)Fund Balance - 464,111 - - - 3,647 TOTAL OTHER SOURCES(USES) 865,932 464,111 - - - 3,647 Net change in fund balance 804,352 464,111 483,368 (13,870) 469,898 3,847 FUND BALANCE,BEGINNING - 604,351 604,351 - 604,351 1,074,049 FUND BALANCE,ENDING $ 604,351 $ 1,068,462 $ 1,087,719 $ (13,670) $ 1,074,049 $ 1,077,695 I Annual Operating and Debt Service Budget Fiscal Year 2016 Page 9 I I HERITAGE BAY Community Development District Amortization Schedule 2014 Refunding of Series 2005 Special Assessment Refunding Bonds Principal Year Principal special calls Interest Balance FY Total DS 11/1/2015 $ - $ 327,180.00 $ 17,220,000.00 -5/1/2016 $ 545,000.00 $ $ 327,180.00 $ 16,675,000.00 $ 1,199,360.00 11/1/2016 $ - $ 316,825.00 $ 16,675,000.00 I 5/1/2017 $ 565,000.00 $ - $ 316,825.00 $ 16,110,000.00 $ 1,198,650.00 11/1/2017 $ - $ 306,090.00 $ 16,110,000.00 5/1/2018 $ 585,000.00 $ - $ 306,090.00 $ 15,525,000.00 $ 1,197,180.00 11/1/2018 _ $ - $ 294,975.00 $ 15,525,000.00 5/1/2019 $ 610,000.00 $ - $ 294,975.00 $ 14,915,000.00 $ 1,199,950.00 11/1/2019 $ - $ 283,385.00 $ 14,915,000.00 5/1/2020 $ 635,000.00 $ - $ 283,385.00 $ 14,280,000.00 $ 1,201,770.00 11/1/2020_ $ - $ 271,320.00 $ 14,280,000.00 5/1/2021 $ 660,000.00 $ - $ 271,320.00 $ 13,620,000.00 $ 1,202,640.00 11/1/2021 $ - $ 258,780.00 $ 13,620,000.00 5/1/2022 $ 680,000.00 $ - $ 258,780.00 $ 12,940,000.00 $ 1,197,560.00 11/1/2022 _ $ - _ $ 245,860.00 $ 12,940,000.00 5/1/2023 $ 710,000.00 $ - $ 245,860.00 $ 12,230,000.00 $ 1,201,720.00 11/1/2023 $ -_ $ 232,370.00 $ 12,230,000.00 5/1/2024 $ 740,000.00 $ - $ 232,370.00 $ 11,490,000.00 $ 1,204,740.00 11/1/2024 $ - $ 218,310.00 $ 11,490,000.00 5/1/2025 $ 770,000.00 $ - $ 218,310.00 $ 10,720,000.00 $ 1,206,620.00 11/1/2025 $ - $ 203,680.00 $ 10,720,000.00 5/1/2026 $ 800,000.00 $ - $ 203,680.00 $ 9,920,000.00 $ 1,207,360.00 11/1/2026 $ - $ 188,480.00 $ 9,920,000.00 5/1/2027 $ 830,000.00 $ - $ 188,480.00 $ 9,090,000.00 $ 1,206,960.00 11/1/2027 $ - $ 172,710.00 $ 9,090,000.00 5/1/2028 $ 865,000.00 $ - $ 172,710.00 $ 8,225,000.00 $ 1,210,420.00 11/1/2028 $ - $ 156,275.00 $ 8,225,000.00 5/1/2029 $ 8,225,000.00 $ - $ 156,275.00 $ - $ 8,537,550.00 11/1/2029 $ - $ - $ - Totals $ 17,220,000.00 $ - $ 6,952,480.00 $ 24,172,480.00 1 Annual Operating and Debt Service Budget Fiscal Year 2016 Page 10 HERITAGE BAY Community Development District Debt Service Fund Budget Narrative Fiscal Year 2016 REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their trust accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels(using the uniform method)within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Discounts Per Section 197.162 and Section 197.3632 of the Florida Statutes, discounts are allowed for early payments of assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. The budgeted amount for the fiscal year is calculated at 4%of the anticipated Non-Ad Valorem assessments. IEXPENDITURES Administrative Professional Services—Arbitrage Rebate The District contracted with an independent professional firm to annually calculate the District's Arbitrage Rebate Liability on its bonds. Professional Services-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries,and the names and addresses of the owners of such property.The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service.The property appraiser cost is based upon 1.5%of the anticipated Non-Ad Valorem assessment collections. Professional Services-Trustee The District pays US Bank an annual fee for trustee services on the Series 2014 Special Assessment Bond. The budgeted amount for the fiscal year is based on standard fees charged plus any out-of-pocket expenses. Miscellaneous-Assessment Collection Costs The District reimburses the Collier County Tax Collector for her or his necessary administrative costs. Per the Florida Statutes,administrative costs shall include,but not be limited to,those costs associated with personnel,forms,supplies, data processing,computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2%on the amount of special assessments collected and remitted,whichever is greater. The assessment collection cost is based on a maximum of 2%of the anticipated assessment collections. Debt Service Principal Debt Retirement The District pays regular principal payments annually in order to pay down/retire the debt. Interest Expense The District pays interest expense on the debt twice during the year. Annual Operating and Debt Service Budget Fiscal Year 2016 Page 11 Heritage Bay Community Development District Supporting Budget Schedules Fiscal Year 2016 HERITAGE BAY Community Development District All Funds Comparison of Assessment Rates Fiscal Year 2016 vs.Fiscal Year 2015 General Fund 001 Debt Service Total Assessments per Unit Units FY 2016 FY 2015 Percent FY 2016 FY 2015 Percent FY 2016 FY 2015 Percent Product Change Change . Change Executive 1 $275.00 $200.00 38/ $1,494.25 $1,494.25 0% $1,769.25 $1,694.25 4/ 139 Classics a $275.00 $200.00 38% $2,362.85 $2,36235 0% $2,637.85 $2,562.85 3% 3 95 Classics II nt $275.00 $200.00 38% $2,552.25 $2,552.25 0% $2,827.25 $2,752.25 3%r 18 Coach ;a $275.00 $200.00 38% $1,054.76 $1,054.76 0/ $1,329.76 $1,254.76 6% l 184 2 Story 1 $275.00 $200.00 38/ I $878.97 $878.97 0°% $1,153.97 $1,078.97 7/ ' 364 4 Story $275.00 $200.00 38% $703.18 $703.18 0% $978.18 $903.18 8% 450 1250 Annual Operating and Debt Service Budget Fiscal Year 2016 Page 12 Agenda Package 116 Heritage Bay CDD Severn Trent Services Field Management Report Site Inspection - 6/23/2015 1. Lake Management: Lake and Wetland Management has shown improvement in regards to the various lake bank weed issues. Littorals continue to improve along the banks,and erosion areas that have been addressed appear to be holding. Additional lake management details are provided below.All •issues mentioned are low density unless otherwise noted. ag '\ i ', : „ ✓ 2i a. Algae: 2,3,4, 5, &6. b. Littorals:The spike rush is continuing to be established and groupings are beginning to from along many of the lakes banks. Lake 25&27 pictured. w , n" +fir+ - 'X # ° v `1 t °"`r § u- tea. t a ,, °„ w '''''',;,,,.° Hsu r a� let , mot, --,4)-,` � :°.!'::;';',. "'a ^u' , .t �_ ti. C. Rocks: a. The rocks around control structure W2L30 have been sprayed and the cattails are being treated. I � � ackage 117 a ti i t„. �' F i . '. 4d'F<�pZi{iV'�'Y '7F �'R tt`C iY N°^,W't}ha.,r t IeF t,. , et :--,'''':::."--,.:,":''':'‘I:';•'., R ,!',fN �S t'..a, ''i,.!�'•yt„2 ', ;tflt.'y,a+...,$.-l' �''' i 'a, x '*. .J R s' "1,�?� - 's 1 u '. �* 4 t. ate' jIA ' y MyA h b. The rocks on the south-west and south bank of lake 30A have been sprayed. "4 q J ki`- 6 X 044,1, i, a g i x +w- ” ^° ''�'- �,i � 1 r f *' t ,,9 3 m4`�' i ✓ 17` 4 'k" F , u,,,,,..-4R:,,,,o..:.--;,-....;;;:,-'- . ...,' ',4,., -4A,-/:,,,!1;t1(.;,t..g-itt: ,.4,:,,,,,,,A .'da,:. ,.gyp x,'. .. aF `u-t+ �.>r_"' .i 3€' .4a c. The weeds on the north and southeast banks of lake 30B need to be sprayed out. S a. � 3 J}A y 'An t F E � :2 : 'fit I. � ,lp y,s i u^ l= �, .R•y.J ''',.4.t.',1. ,-., 3 4 1 1'i „,......''''..,::k."E$`�e° x * ,, `d 3�c y '1. g ,1 :' '',,,7 }s t th s-sFy ue' �.�4e 5. i rV 1 —;.t 3�k� � . . l, r�k.'tY r cY' ° x u z . �'i*° r yi5 3 a'"T^i nR:, `u 1 c.&}t vC'' r''''' ' —'4 .`.' d. Weeds: The banks of lakes 9, 14,23, 25, & 30A need to be treated for grasses and miscellaneous weeds(Lakes 9&23 pictured). 4 ' ' ' 'iTIV. ''':' '''' '41F-:::41.10;' ,-.4, ,.... ,, ,,, ,,,,,,.. '°` "' ' .,n .'t '' sa w”' 'Fit 1'.'t» , . ',' 41f?/ bV <, r€ ' ""; F e.r y a "C, �11. . �' , i 4 v.;',,,'', °37= S. Y� Ji7 i tN f !� .',� : A f.111' '� } Y 3' $j ', 5 % A`' 4 �, it'F f..f i+, _ 7 I Agenda Package 118 i. Alligator Weed in Lakes: No issues observed. ii. Brazilian Pepper: 1. The pepper tree stump on the southern portion of lake 308 has been treated recently to prevent new growth. s + . a �� N F s,jbha��. # s �} k a,�r, ,x r`,tt qq ,=*e-, �pff'.Yhi t�+� -.4 f asp` #y? +?at€;t{f £ l: 'i' �.` 1 x£< �s ?�'°� z ':e,' .ti a3 +'- �.r i 77$ddS 3xr,k-',,,,"`� $X.. {� �yf j'� >^ 2 '' §i 4'e, �` a �`t :; 7 y€`� r°�. • ^, r� 'a� „2r�r, 3 ,,€�� A.;,e: va .: t :i., "b`l�a� / S y i k _A rn b f a:f ,,,i4,..4.);',,-. "i "Y xj3 .�b.yy att.�+R r� � "{Y �i�,�k 2. The debris from the Brazilian pepper tree that was cut has been removed and it appears that the stump has been treated as well. s ,�r �' s s .i, ' 'r '_ .„ lµ c 3 r ' �� 1,1,,,,:,,., . _ ya4-,firs� ,3 .^ -'S ♦ -k N ,eb Y" '' ,�u ayLW� ?,--� l n^"_: 1(, ;_.�2• e 7. 58 S N, iii. Cattails in Lakes: No issues observed. iv. Climbing Hemp Vine in Lakes: 9. � ,' ,,, . 4S # . d5 'v''�P r�YsY ,� pb T u g f. r �� [ 4:.4 � ae. tf'1R'i�` .'� T i jp ,,, $. iEr 4 E f! �r.',,,,,,,,11, to v be.# t ' j,: E ;�;.. .r v. spatter Several patches were noticed in lake 29.Yellow flowers will soon begin to develop in many of the groupings.We 3 will continue to monitor the growth in this lake to mak,9 ��rPce 119 li do not overcrowd the lake. _. --...—A . ,. . r. ','"f'.., ' ' , ....-..,:,.i.r-- ---11:— ‘.1.--o sx y+ #:.sue ,.._. "'r a vi. Hydrilla in Lakes: No issues observed. vii. Illinois Pond Weed in Lakes: 14(west bank needs treatment), 19, 20,30A,&308. viii. Red Ludwigia: No issues observed. ix. Torpedo Grass in Lakes:2, 10, 1 5' 19, 20, 23,25,26, 28, 29,30A& 308.The grasses in the outflow channel of Control Structure L3000CO2 on lake 30B have been treated. ' � p r �j� d f ! „ 1 say e. Fish: No issues observed. f. Trash in Lakes: No issues observed. g. Bulkheads: No issues observed. h. Clippings in Lakes: 2&6.A Golf Course staff member was observed blowing clippings directly into lake 6.This repeated practice will likely lead to increased algae growth as pictured on the north bank of lake 6. 4 y,.. �� x t Agenda Package 120 +aTa� bt , ,4 ` `' ,"ash 2. Dissolved Oxygen(DO)Tests: Next test will be in July 2015. 3. lake Bank Erosion: a. The broken sprinkler located just off of the cart path on the northwest corner of lake 9 across from the 7th tee box continues to do damage to the lake bank and must be capped or repaired. !�r •w1Y§ z s r �sY"( ar."tee, :fi—,,' ,,,,,,;- A .4 ,z°s-, ;,,,o,,,,,:.0 y a °.'� lw't`..1 !c y F.-Ai-',,1--1.,,,A.,,, n„ "tai : 'i � �� „! f�k - ! ' i f fi d : 1 % . F PZ 3 8 , as� d s Si a 9 ' 'pj{ . '^m 2' tea' 4 .i.� n'1�° �+?� R .. g yp b. The erosion continues to get worse on the west bank of lake 14 near the tee box and would likely be solved by rip rapping the gully that has been created.This repair is on the golf course side and is estimated to cost approximately$700.00 to repair. a' ,, rn,- , -12-- d: .F .''t. 3 s n _vS,. §1��'t' 6 Y i c. Erosion continues to develop on the northwest portion of the bank of lake 24 near the interconnect pipe.There is an irrigation line here, but I do not suspect a leaking pipe in this instance.This area will likely need to be addressed during the next phase of repairs.This repair is on the golf course side and is estimated to cost approximately$1,000,00 to repair. 5 € t ` a i S1 ackage 121 i ;� �t �g g�t �4� 1� b it '1; '',',,',.,:;:. ''' '''';'-'c .•--''''''-',.`:',1'-',7,f'..,.;:...1 "'%-:‘ ;:i:./, ' *4''''''*:" ''''-°!-"..e :-l'I'''''" -4441:T. ,,,,...t,.......,„ 4,;....,, , ,i 7,;. 4,4th.,-vm;',4-'''.:"44.411V4';',fAill.y.,'''''-'14441z; t� a A i e"..,.1 t'' �� d. Landshore Enterprises has finished their work on lakes 4, 10,&20. Al. repairs appear to.be satisfactory and completed as requested. We are holding 10%retanage from both proposals until a few minor issues have been addressed. f e — ,i,14.---',,., y,tR,9xC 3 M • _4 "� "r„g,r w j�m"3�� :r r«a F � �+ 3�'t it x �”. 4. p� � 5 sx F W a % y 'C s% dam. .m(jam Y 4 d, A -3 sl /p Ate! V --'' tiv. e. All prev ious erosion repairs appear to be holding and working as designed. . ,r ,?$jam✓,bx;:. ` � `l. rr„ ' ,',!''''1` r �` rr '. 1 g *tz,' tie v s4 } a $ At 1 apt 1 0;7 S Yf t b f a/ ''',1, pyv wa, fib; ,,,, i,, £ F=;;;,,i.,.=1.74,„..q ,�. 4.. tea l Y .‘,,,,=.,:x-,-,,,,,,,,, xy"' x+,s^ ,, 5 h / A � 6 4. Storm Drainage System: Agenda Package 122 a. Control Structures: No issues observed. b. Drains: i. The weeds in the rip rap around this drain should be sprayed out by the landscape company.This drain is located just north of the driving range. / " .y '�E mkt,°`P .� ,.,..,,-- ....,;„ '`,,it*Z1:41r,:r.. -*KA,'...;,-.:;.. -:...-,--*-:.--4. 7 -' '7......1., ,I!, .4' .45c: 4. r ,A 4''3'1 f .•P ,-, a. itf : 1 A P. r T T ' dC '{S ik 4. Ta n§ri ,4:: .! ' A{ . ii. A homeowner off of Heritage Bay Blvd. has installed drain piping from their downspout that flows into a drain the CDD previously installed on the bank of lake 10.The piping is not easily noticeable and will likely help to ease erosion issues in this area. It* d { f= f z` ` ttllitirchterliV-1. 4t..W.,':44, -itf,:. 1,4,'1/4 ‘;v� �P v :4,1,6 '�+s �`it � t �n � ,'‘,if,,.‘p-, d'a e iR'� a a 11; ,4-t, ' t. { �i ' r t t�a r _ se f y 1 41j'fT'1 � n fl ' � gt i .4 P 1 SSA 4y. a ' tii yea,1.44, oar s' 14-,:, / ) <'04;u t r . ,, , k, ,Y ` r c. Roadway Catch Basins: No issues observed. d. Catch Basins:No issues observed. e. Inter-Connect/Drain Pipes: f. Illicit Discharges: No issues observed. g. Lake Drainage Pipes: i. There is a buried piece of galvanized culvert pipe on the north bank of lake 19 below the green.As this appears to be an old pipe that is no longer in use,the Board may wish to have it covered or removed to prevent the possibility of a safety hazard due to the sharp torn edges of the pipe. 7 r ��"�+�; rr�JKt ,uw I'4"�&�v"7 ,��•5r� �a '`+ 3.:' f " x° ackage 123 00 r 'sf ,,- 1,,,.4,..,,,...,..1„..,40,,,,,;,,, , . 4, ,,,,,,i,-,-, 3,.4. -„‘ , 49,..2,. ,,,,,,t'"1 ,'' 'A,,',, �d '3t2" Fv' .a^. ► f�s�T} kI' 4 iV, ii. The Golf Course vendor was discovered installing a leading to lake 30B to help improve drainage from the new fairwadrain y and green. No issues to the lank bank were apparent. } s s � eS h B -z' As '' ,c o- ' - r 5. Fish/Wildlife Observations: ❑ Bass ®Bream n Catfish ❑Gambusia ® Egrets ® Herons U Coots ❑Gallinules ❑Anhinga El Cormorant ® Osprey ® Ibis 1=1 Woodstork ❑ ®Alligators pecies: T El®Turtles ❑Other Otter Silapia 6. Residential Complaints/Concerns: No issues reported. 7. Non-CDD Issues Observed: a. There is a missing electrical box cover for an outlet by the golf cart storage area that should be replaced to prevent an electrical hazard. , # y g� . - �. .., J r „ , , 8 b. The support wires are no longer in use for the trees along holeA , ckage 124 should be cut to prevent tree growth from being stunted. In some places the wire is no longer attached to the tree, but is loose on the ground creating a hazard for landscape crews and machinery. 8. Follow up items: Heritage Bay CDD Follow Up Tasks Summary Follow Up Task Reported On Assigned Action Completed Erosion on lakes 1,5,6,9,10,12,14,19,22,23,24,308 11/25/2014 Lake 4 removed from list Floating Pipes lakes 2,5,7,8,9,10,13,14,17,19,24,26 9/25/2014 Clean out Inter-connect on lake 20 3/24/2015 Proposal Requested Repair broken pipe on lake 3 5/27/2015 Golf Course will repair Repair pipe on lake S 5/27/2015 Golf Course will repair Field Manager Tasks Inspect video of interconnect recordings 9/25/2014 Completed Write letter to The Quarry requesting removal of Brizillia n Pepper Trees 10/17/2014 The Quarry is addressingthis concern Discuss with Superintendent when Golf Course trimmings in the lakes 10/17/2014 water recedes Lake Bank Review On Going Littoral Planting Reviews On Going Erosion Restoration Site Visit Completed COO Contractor Tasks Spraying Brizillian Pepper Tree stump in Lake 30B South 3/24/2015 Lake&Wetlands Completed Spray out cattails in control Structure W2L30 3/24/2015 Lake&Wetlands Completed Spray out weeds in rocks on the southern bank-lake 30A 3/24/2015 Lake&Wetlands Completed Spray out weeds in the rocks of control structure W2L30 4/14/2015 Lake&Wetlands In Progress Spray out torpedo grass in control structureL30C0002 4/14/2015 Lake&Wetlands Completed HOA Contractor Tasks Homeowner Complaints I Concerns 9 SEVERN N T Management TRE Services SERVICES MEMORANDUM Date: July 1,2015 To: Heritage Bay CDD Board of Supervisors From:Calvin Teague,District Manager Subject:Permit Status On the upcoming agenda is a discussion of the status of the storm water management permit and I wanted to provide information in advance for our discussion during the meeting. The original engineer's report for the establishment of the District, and the only bond issuance for the Heritage Bay CDD state that the CDD would the 0 & M entity for the stormwater management system. The developer deeded all the lakes to the CDD in 2008 and the CDD accepted them. On August 3, 2010, the South Florida Water Management District (SFWMD) granted an Acceptance of Construction Completion Certification (all lakes except Lake 30) to the permittee (Lennar Homes, LLC) and asked that the permittee initiate the permit transfer and conversion to the operation phase. We held off on initiating the transfer process until the Lake 30 rip-rap project could be finished and a Construction Completion Certification submitted for Lake 30. On August 8, 2014, the SFWMD granted an Acceptance of Construction Completion Certification for Lake 30 and asked that the permittee again initiate the permit transfer and conversion to the operation phase. We,again, held off submitting the transfer paperwork at that time because the permittee would have to be Heritage Bay Umbrella Association,because we,at that time,could not split the permit. The Engineer initiated a process to split the permit with the CDD having all of the HB lakes and the two large lakes (30 A&B) which we received notification that Tim Sanford of SFWMD has split off the permit for the Heritage Bay Facilities.Therefore we can now initiate the transfer process to allow the CDD to be the permittee and perpetual operating entity. The transfer paperwork has been prepared and we just need the signatures from both Lennar Homes, LLC and the Heritage Bay CDD. I do think we need to work with the Umbrella Association to insure HB doesn't get stuck with the maintenance expense of both lakes 30 A and B. Calvin Teague Heritage Bay CDD District Manager Severn Trent Management Services•5726 Corporation Circle•Fort Myers,Florida,33905•Tel 239-694-3310 ext.109 Fax 239-694-5357•new sevemtrentservices.com