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05/07/2016 Agenda
Heritage Bay Community Development District Board of Supervisors By Edwin Hubbard,Chairman Calvin Teague,District Manager Ronald A.Grant,Vice Chairman Gregory tlrbancic, District Counsel John May,Assistant Treasurer Jeffrey Satfield,District Engineer Dennis Gagne,Assistant Secretary Richard Brodeur,Assistant Secretary Regular Meeting Agenda May 5,2016—9:00 a.m. 1. Roll Call 2. Public Comments on Agenda Items 3. Approval of the Minutes of the March 3,2016 Regular Meeting 4. Old Business A. Wall Repair Update B. Umbrella Association Sub-Committee Meeting Update C. Discussion on Perimeter Berms D. Lake&Wetland Contract Discussion 5. New Business A. Interlocal Agreement B. Lake 12 Repair Proposals C. Lakes& Water Monitoring Program D. TSI Rip Rap Proposals 6. Manager's Report A. Approval of Financials,Check Register and Invoices B. Acceptance of FY 2015 Audit C. Distribution of the Proposed Fiscal Year 2017 Budget and Consideration of Resolution 2016-4 Approving the Budget and Setting the Public Hearing D. Report on the Number of Registered Voters(585) E. Field Manager's Report F. Follow up 7. Attorney's Report 8. Engineer's Report 9. Supervisors' Requests and Audience Comments 10. Adjournment The next meeting is scheduled for August 4,2016 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 g oaa) AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN CPH,INC. AND HERITAGE BAY CDD,LLC FOR HERITAGE BAY CDD WATER QUALITY MONITORINGIBATHYMETRIC ANALYSIS LEE COUNTY,FLORIDA MAY 3,2016 CPH, Inc., (CPH) has prepared a proposal of services and fees to provide certain environmental consultant and survey services for the above referenced project.CPH,Inc.hereinafter known as CPH or CONSULTANT proposes to furnish Heritage Bay CCD, LLC, hereinafter known as the Client, the professional services described below for the fees stipulated herein, PROJECT DESCRIPTION CPH, Inc. has been requested to perform monthly monitoring to collect limited water quality data within approximately 29 lakesfstormwater with management g ponds the community development district boundary. SCOPE OF SERVICES 1.0 BASIC SERVICES CPH shall provide,or obtain from others,all labor,material and equipment to perform the following services: A. ENVIRONMENTAL SERVICES 1.1 Water Sampling • CPH shall sample salinity, conductivity, temperature, dissolved oxygen, and pH quarterly within approximately 29 lakes within the development boundaries. A total of 4 monitoring events shall be conducted. Water sampling shall be located within the deepest part of the lake and multiple samples shall be taken over the depth profile. • During quarterly water sampling, CPH scientists shall photograph lakes and document the aquatic vegetation observed. CPH shall report any issues observed during the sampling events to the Client via email. • After twelve months of monitoring CPH shall prepare graphic displays of the data recorded for each lake sampled.A location map of the sampling areas shall also be provided. 1.2 Additional Services Provide other professional and technical services not specifically identified in Section 1.1 above. 2.0 COST AND COMPENSATION 2.1 Basic Services Services under Basic Services,Task 1.1 above shall be provided as a Fixed Fee of$5,642 quarterly for one year to monitor approximately 29 water bodies for a total of $22,568. This cost shall not be exceeded without Client authorization. Invoices for Basic Services will be submitted monthly based on percent complete. Heritage Bay COO-Water Quality Sampling&Bathymetric Analysis May 3,2016 Page 2 of 5 1.2 Annual Report After twelve months of monitoring CPH shall prepare a report of results describing the quality of the water based on the parameters sampled.The report shall include pictures of the lakes sampled,graphic depicting the location of the sampling area,list of aquatic vegetation observed in each lake sampled. Services under Basic Services, Task 1.1 above for the Annual Report shall be provided as a Fixed Fee of$3,000. This cost shall not be exceeded without Client authorization. Invoices for Basic Services will be submitted monthly based on percent complete. B. SURVEY 1.1 Bathometric Analysis Topographic Survey: Perform a Topographic Survey as per Rule Chapter 5J•17 of the Florida Administrative Code in compliance with the standards of practice of surveying and mapping of the State of Florida. • Collect topographic data at 200 foot cross sections and depth soundings on lakes as depicted within the red area on the attached"Survey Site Exhibit"to include top of silt,top of bank and apparent hard bottom at lake soundings where accessible. Apparent hard bottom elevations will not be collected on lakes/ponds with a depth greater than 20 feet. • Provide six(6)site benchmarks. • Signed and sealed Topographic Survey. 1.0 Topographic Survey Fee: $22,190.00 Note: A$1,080.00 mobilization fee will be required for each additional site visit. State Plane: The project coordinate system will be based horizontally on the North American Datum 83(2011)(NAD 83(2011)). The project will be referenced to state plane coordinates by field locating published control points. The National Geodetic Survey control points will be researched and verified in the field. This base of reference will be used to establish the coordinate system for the project. Benchmarks and Control: The project will be based on the National American Vertical Datum of 1988 (NAVD 88). The project will be referenced to these published elevations by field locating published benchmarks. 2.0 COST AND COMPENSATION Labor CPH will perform the Scope of Services contained in this Agreement as identified on each task,either lump sum or time and materials. Refer to the Standard Hourly Rate Schedule to be utilized on this project. The following is the breakdown of fees for each task. Tasks that are identified as Time and Materials(Hourly) have been provided an 'Upset Limit'(USL)budget. The CLIENT will be informed when the services are about to exceed this limit. Phase No. Phase Description Billing Method Fee A. ENVIRONMENTAL SERVICES 1.1 Water Sampling Quarterly $22,568(annually) 1.2 Annual Report Lump Sum $3,000.00 B. SURVEYING Heritage Bay CDD-Water Quality Sampling&Bathymetric Analysis May 3,2016 Page 3 of 5 1.1 Topographic Survey(all lakes except 30A&30B) Lump Sum $22,190.00 2.1 Additional Services Invoices for Additional Services will be provided on an hourly plus expense reimbursement basis. Invoices for Additional Services will be submitted monthly. Reimbursable Expenses In addition to the labor compensation outlined above, CPH shall be reimbursed directly for project specific expenditures such as,but not limited to travel,printing and reprographics,meals,hotel stay,rental cars,postage,and telephone usage. Reimbursable expenses will be billed at their actual cost,without increase. Should work be required that is not specifically described herein,CPH will prepare a proposal or amendment,at the CLIENT's request, that contains the Scope of Services,fee,and schedule required to complete the additional work item. 3.0 RESPONSIBILITIES OF OTHERS The Client shall guarantee access to and make provisions for CPH to enter public or private lands as required by CPH to perform their work under this Agreement. It is understood that CPH, Inc. will perform services under the sole direction of the Client or his designated representative. In the performance of these services,CPH will coordinate its efforts with those of other project team members and consultants as required. The Client shall provide CPH with all project related information available including the existing land plan, property legal description, title work, boundary and topographic surveys, geotechnical investigation reports, etc. CPH will rely upon the accuracy and completeness of all Client furnished information in connection with the performance of services under this agreement. 4.0 SERVICES NOT INCLUDED The following services are not anticipated and,therefore,not included in this Agreement at this time: ➢ Environmental studies and coordination of environmental issues with the regulatory agencies. ✓ Wetlands Permitting • Gopher Tortoise Permitting and Relocation ✓ Sand Skink Consultation and Studies y Specific Wildlife Assessments and Permitting ✓ Review of an alternative product in lieu of the product called for on the plans and specifications • Services resulting from changes made by client following the completion of specific project tasks that require re-work by CPH ✓ Special meetings with agencies, other consultants or Client not normally required to perform the work described in the Scope of Services, except those meetings specifically identified in the above Scope of Work • Phase II and remediation Y Any other issues not specifically described in this proposal Heritage Bay CDD-Water Qualify Sampling&Bathymetnc Analysis May 3.2016 Page 4 of 5 Should work be required in any of these areas, or areas not previously described, CPH will prepare a proposal or amendment, at the CLIENT's request, that contains the Scope of Services, fee, and schedule required to complete the additional work item. 5.0 AUTHORIZATION Should theagreement be acceptable, please sign, retain a copy for your records,and return a copy to CPH as our p notice to proceed. We look forward to working with you on this endeavor. CPH,INC. / By: A I A ' Joshua LockhafP.E. Title: Vice President Date: May 6,2016 Heritage Bay CDD-Water Quality Sampling&Bathymetric Analysis May 3,2016 Page 5 of 5 CLIENT AUTHORIZATION HERITAGE BAY CDD, LLC agrees with the Scope of Services, Compensation, and Standard Provisions Exhibit A (attached hereto and acknowledged as being received). Together they constitute the entire Agreement between CPH,INC.and HERITAGE BAY CDD,LLC. It is understood that fees for the subject project, including but not limited to, application fees, impact fees, utility connection fees, review fees, etc., will be paid directly by the CLIENT. Payment for services rendered will be due within forty-five(45) days of invoicing. Should the CLIENT choose to not complete the project at any phase of the project, CPH will be due any fees for services up to the time the CLIENT informs CPH in writing to stop work. Payment for services up to the time of the CLIENT'S notice will be due within thirty (30)days of the final invoice. Invoice payments must be kept current for services to continue. CPH reserves the right to terminate or suspend work when invoices become ninety(90)days past due. in event that the work is suspended or terminated as a result of non-payment, CLIENT agrees that CPH will not be responsible for CLIENT'S failure to meet project deadlines imposed by governments,lenders,or other third parties.Neither is CPH responsible for other adverse consequences as a result of termination or suspension of work for nonpayment of the invoices. This proposal is void if not executed and returned to the CONSULTANT within 60 days of the CONSULTANTS execution of the proposal. By: HERITAGE BAY COD,LLC Print Name: Title: Date: EXHIBIT A Standard Provisions to Agreement Agreement between Heritage Bay CDD, LLC (hereinafter referred to as"OWNER/CLIENT")and CPH, Inc. (hereinafter referred to as"CPH")for professional services which may include engineering, surveying, architecture, landscape architecture, environmental, forestry, planning, transportation/traffic,etc.dated May 3,2016 . Standard of Care CPH will endeavor to provide services in a manner consistent with the level of care and skill ordinarily exercised by other professionals under similar circumstances practicing in the same or similar locality. The standard of care shall be exclusively judged at the time services are rendered and not according to later standards. CPH makes no express or implied warranty with regard to its services. Compensation,Out of Pocket and Subcontract Expenses "Compensation" as used in the Agreement includes those costs which are connected with the conditions of employment and pay of the employees and include salaries of those employees directly engaged in the performance of the requested services and employer contributions for social security, workers compensation, unemployment and payroll taxes, medical and insurance benefits, retirement benefits, holiday and sick leave pay and other allowed benefits. "Out of Pocket Expenses"as used in the Agreement include such items as travel and subsistence, printing and reproduction, telephone/communications charges, freight, postage, computer and similar costs. "Subcontract Expenses" as used in this Agreement include subcontracts for special consultants such as licensed land surveyors, soils borings and geotechnical and geohydrological services, laboratory services,environmental scientist services and other professional scientific or technical service organizations. Invoice payments are due upon receipt of the invoice and must be kept current for services to continue. Payment should be mailed to CPH, Inc.at 500 West Fulton Street, Sanford, FL 32771. If the OWNER/CLIENT fails to pay any invoice due within 45 days of the date of the invoice, CPH may, without waiving any other claim or right against OWNER/CLIENT, suspend services under this agreement until CPH has been paid in full all amounts due CPH and/or any of its consultants and subconsultants. OWNER/CLIENT shall pay CPH interest at 12% per annum on all invoices that remain unpaid for more than 45 days. Additional Services "Additional Services"of CPH are services which are not considered normal or customary basic services,except to the extent provided in the basic Agreement, and may include such items as preparation of grant or funding applications and supporting documents; additional services or costs resulting from significant changes in the scope or extent of the project or its design or project delays; providing renderings or models for the OWNER/CLIENT's use; preparing documents for alternate bids; furnishing the services of special consultants; resident project representation or resident inspection; services resulting from the award of additional separate contracts; special field surveys;reproducible Record Drawings or original Drawings; providing"as-built"drawings; additional services during construction; serving as a consultant or witness for the OWNER/CLIENT during any litigation, public hearing, etc.; and services normally furnished by the OWNER/CLIENT; or other services not otherwise specifically provided for in the Agreement. Additional services are not included in the basic payment provisions of the Agreement except to the extent specifically provided herein. Opinions of Cost Since CPH has no control over the cost of labor, materials, equipment or services furnished by others,or over the CONTRACTOR(s)'methods of determining prices, or over competitive bidding or market conditions, our opinions of probable project cost and construction cost are made on the basis of our experience and qualifications and represent our best judgment as an experienced and qualified professional, familiar with the construction industry; Exhibit A Page 1 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials,_ CPI is an Equal Opportunity/Affirmative Action Employer but CPH cannot and does not guarantee that proposals, bids, or actual project costs or construction costs will not vary from opinions of probable cost prepared by us. Use of Documents All documents including Drawings and Specifications prepared by CPH pursuant to this Agreement belong to CPH and are instruments of our service in respect to the project. They are not intended or represented to be suitable for reuse by the OWNER/CLIENT on another project or any extension of this project, or for use by others on this project, any extension, or any other project. Rights to use of the documents by Owner/Client shall terminate in the event that Owner/Client fails to pay invoices as outlined herein. Underground Utilities and Structures The locations of all existing utilities shown on the drawings prepared by CPH will be based on surveys of at-grade or above grade physical culture(such as valve boxes, hydrants, utility poles, permanent markers)and surveying to pick up temporary utility locate markings provided by the utility. CPH assumes no responsibility for the accuracy of utilities shown by temporary markings provided by the utility or the locations of utilities based on other non-physical features (such as plans prepared by others including mark-ups of locations provided by the utility). The below grade vertical and horizontal locations of utilities will not be required to be surveyed by CPH, and consequently, CPH assumes no responsibility for the location of below grade utilities. The OWNER/CLIENT agrees to release CPH from any liability to OWNER/CLIENT for the failure to locate any existing utility where its physical location could not have reasonably been known based on the above. Termination The obligation to provide further services under this Agreement, may be terminated by either party upon fifteen (15) days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of the Agreement through no fault of the terminating party. If the Agreement is terminated during prosecution of the services and prior to the completion of services, CPH shall be compensated by the OWNER/CLIENT for all services performed under this Agreement to the date of termination. In addition,CPH will be paid for all reasonable expenses resulting from such termination. Construction Administration Where construction administration is provided as a part of the basic services as outlined in the Agreement, CPH shall not be required to make exhaustive or continuous on-site inspections, but shall make periodic observations as may be outlined in more detail in the basic Agreement. CPH shall not be responsible for the means, methods, techniques, procedures of construction, or schedules selected by the CONTRACTOR or the safety precautions and programs incident to the work of the CONTRACTOR. CPH will periodically visit the site at intervals outlined in the Agreement to become generally familiar with the progress of the work to keep the Owner advised of the work. CPH will observe the work of the CONTRACTOR to endeavor to determine if the work is in general conformance with the project documents. CPH shall not be responsible for the failure of the CONTRACTOR to perform the construction work in accordance with the Documents. CPH shall provide the OWNER/CLIENT with written notice of any uncorrected defects or deficiencies coming to its attention in the course of the periodic visits above-mentioned. During such visits and on the basis of its on-site observations, CPH may recommend to the OWNER that the CONTRACTOR's work be disapproved or rejected as failing to conform to the Documents.CPH shall not have the right or duty to stop the CONTRACTOR'S work. Professional Services Provided by Others Surveying, soils, planning, architecture, landscape architecture, legal, accounting, construction inspection and other services may be provided by the OWNER/CLIENT or others on this project and the results furnished to CPH. It is agreed that CPH may rely upon the results of those services by others in performing its work without verification of same. CPH assumes no responsibility for the accuracy or technical adequacy of such professional services provided by others. Exhibit A Page 2 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer CPH's Approval for Payment Approval of a CONTRACTOR's application for payment is an expression of opinion by CPH and shall at no time be considered as legal obligation on the part of CPH. Neither shall same be considered as an acceptance of any work or materials furnished. CPH's approval for payment is an expression of opinion by CPH that to the best of our knowledge, information and belief, the quality of the work included for payment is in general accordance with the Contract Documents (subject to an evaluation of the work as a functioning improvement upon substantial completion and to the results of any subsequent tests or inspection made). By approving an application for payment, CPH will not be deemed to have represented that we have made any examination of how or for what purpose any CONTRACTOR has used the money paid on any of the CONTRACTOR's work or that title to any of the CONTRACTOR's work, materials or equipment has passed to the OWNER/CLIENT, free and clear of any liens, claims,security interests or encumbrances. Checking of Shop Drawings Checking of shop drawings is only for general conformance with the design concept of the project and general compliance with the information given in the Contract Documents. Any action shown is subject to the requirements of the Plans and Specifications. It is the CONTRACTOR's responsibility and not that of the CPH,for dimensions which shall be confirmed and correlated at the job site; fabrication processes and techniques of construction;coordination of his work with that of all other trades and the satisfactory performance of his work. Pre-existing Contaminants CPH shall not be considered a generator, transporter, or disposer of materials affected by regulated contaminants. Because involvement with OWNER/CLIENT's contaminated substances can expose CPH to severe risks, OWNER/CLIENT shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless from any claim or liability for injury or loss allegedly arising from CPH's involvement with OWNER/CLIENT's contaminated substances. OWNER/CLIENT shall also compensate CPH for any time spent or expense incurred by CPH in defense of any such claim. Such compensation shall be based on CPH's prevailing fee schedule and expense reimbursement policy. Site Safety Responsibilities CPH's site responsibilities are limited solely to the activities of CPH and CPH's employees on the site. These responsibilities shall not be inferred by any party to mean that CPH has responsibility for site safety for any reason. Safety in, on, or about the site is the sole and exclusive responsibility of the Contractor alone. The Contractor's methods of work performance, superintendence of the contractor's employees and subcontractors, and sequencing of construction are also the sole and exclusive responsibility of the Contractor alone. OWNER/CLIENT warrants that:1)these responsibilities will be made clear in OWNER/CLIENT's agreement with • the Contractor; 2)OWNER/CLIENT's agreement with the Contractor shall require the Contractor, to the extent of Contractor's negligence, to indemnify, defend, and hold OWNER/CLIENT and CPH harmless up to a limit of $1,000,000 from any fine, penalty, claim, or liability for injury or loss arising from OWNER/CLIENT'S or CPH's alleged failure to exercise site safety responsibility; and 3)OWNER/CLIENT's agreement with the Contractor shall require the Contractor to make OWNER/CLIENT and CPH additional insureds under the Contractor's general liability insurance policy, which insurance protection shall be primary protection for OWNER/CLIENT and CPH, and shall hold OWNER/CLIENT and CPH harmless from claims, losses, and defense cost arising from the negligence of contractor or subcontractor on any tier up to a limit of $1,000,000. Given the foregoing, OWNER/CLIENT also shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless up to a limit of$1,000,000 from any claim or liability for injury or loss arising from CPH's alleged failure to exercise site safety responsibility. OWNER/CLIENT also shall compensate CPH for any time spent and attorney fees and expenses incurred by CPH in defense of any such claim. Such compensation shall be based upon CPH's prevailing fee schedule and expense reimbursement policy. (The term "any claim" above referenced shall include, but not limited to, any claim for breach of contract, tort, or statute alleging negligence, errors, omissions, strict liability, statutory liability, breach of warranty, negligent misrepresentation, or other acts giving rise to liability.) Exhibit A Page 3 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Governing Law.Venue,Jurisdiction This instrument is to be interpreted and construed according to the laws of the State of Florida. It is agreed between the parties to this contract that any litigation, lawsuit or court action of any character arising from this agreement shall be filed and/or defended in Seminole County, Florida. All parties under this contract hereby voluntarily submit to the exclusive jurisdiction of the Florida Courts and the exclusive venue in Seminole County, Florida and do hereby waive any objections to either personal or subject matter jurisdiction of the Florida Courts or to said venue. Attorney Fees and Costs In connection with any dispute arising out of this Contract, each party shall be responsible for their own attorney's fees and costs incurred for services rendered in connection with such dispute, including appellate proceedings and post judgment proceedings. Waiver of Consequential Damages OWNER/CLIENT and CPH mutually agree to waive all claims for consequential damages against each other an each other's respective officers, directors, and employees from any and all claims arising out of the project, including, but not limited to, loss of use, lost profits, and delay damages, against each other, arising from disputes,claims,or other matters relating to this Agreement. Delay In Performance Neither the OWNER/CLIENT nor CPH shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. Such circumstances shall include, but are not limited to, abnormal weather conditions, floods, earthquakes, fire, epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and delay in or inability to procure permits, licenses, and authorizations from any local, state or federal agency;for any supplies, materials, accesses, or services required to be provided by either the OWNER/CLIENT or CPH under this Agreement. A reasonable extension of time for delay in performance caused by any such circumstances shall be granted. Should such circumstances occur the non-performing party shall within a reasonable time of being prevented from performing give written notice to the other party describing the circumstances preventing continued performance and efforts being made to resume performance under this Agreement. Project Development,Approvals and Scheduling CPH will, in the course of its work, attempt to generally identify issues that would adversely affect the development of the site for use as proposed by the Owner/Developer. However, CPH cannot control the regulatory process, actions of others, or unforeseen conditions and does not guarantee that the project can be developed for use as proposed, nor does CPH guarantee the timing of or ultimate regulatory approval of the site for development as proposed. The local, state, and federal entities and authorities("Authorities")having jurisdiction over the project may or may not approve the proposed use of the project. Additionally, it is uncertain how long those Authorities will take to consider and to take action on the applications for the proposed use of the project. Said decisions and approvals are subject to the decision making process of those Authorities. Therefore, CPH cannot represent or guarantee that said Authorities will approve, in whole or in part,the requested use of the project or that the decision making process will be timely for the project's use, or that the Authorities will grant variances applicable to the project. Therefore, the OWNER/CLIENT bears the risk of non-approval of the proposed use and the timing thereof. The OWNER/CLIENT needs to consider the ramifications to it if the project is not approved or only approved in part.. Exhibit A Page 4 of 5 CPH.Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Limitation of Liability: Site Check Studies OWNER/CLIENT acknowledges that CPH's Site Check Studies pursuant to this Agreement are general in nature and are performed before design is started or completed. OWNER/CLIENT acknowledges the recommendation of CPH that the OWNER/CLIENT should not close on the subject property unless and until all applicable agency approvals are obtained and the permitting process is completed. If OWNER/CLIENT elects to close on the subject property prior to that time, OWNER/CLIENT accepts all risks and liability arising from closing prior to obtaining all applicable agency approvals and completion of the permitting process and releases CPH and CPH's officers,directors,and employees from all claims thereof. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers,directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity relating to CPH's Site Check Studies under this contract such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee for the Site Check Study paid by OWNER/CLIENT to CPH under this Agreement or$10,000,whichever is greater. Design And Other Professional Services OWNER/CLIENT acknowledges that CPH's services pursuant to this Agreement are to assist the client and are for the scope of services as outlined in the attached contract. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity, such that the total aggregate liability of CPH and CPH's officers,directors, and employees to the OWNER/CLIENT shall not exceed the fee paid by OWNER/CLIENT to CPH under this Agreement or$50,000,whichever is greater. PURSUANT TO FLORIDA STATUTE 558.0035, DESIGN PROFESSIONALS; CONTRACTUAL LIMITATION ON LIABILITY - AN INDIVIDUAL EMPLOYEE OR AGENT MAY NOT BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE Construction Defects on Florida Projects ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES • Exhibit A Page 5 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPN;s an Equal Opportunity/Affirmative Action Employer CPH's Approval for Payment Approval of a CONTRACTOR's application for payment is an expression of opinion by CPH and shall at no time be considered as legal obligation on the part of CPH. Neither shall same be considered as an acceptance of any work or materials furnished. CPH's approval for payment is an expression of opinion by CPH that to the best of our knowledge, information and belief,the quality of the work included for payment is in general accordance with the Contract Documents (subject to an evaluation of the work as a functioning improvement upon substantial completion and to the results of any subsequent tests or inspection made). By approving an application for payment, CPH will not be deemed to have represented that we have made any examination of how or for what purpose any CONTRACTOR has used the money paid on any of the CONTRACTOR's work or that title to any of the CONTRACTOR's work, materials or equipment has passed to the OWNER/CLIENT,free and clear of any liens,claims,security interests or encumbrances. Checkina of Shoo Drawings Checking of shop drawings is only for general conformance with the design concept of the project and general compliance with the information given in the Contract Documents. Any action shown is subject to the requirements of the Plans and Specifications. It is the CONTRACTOR's responsibility and not that of the CPH,for dimensions which shall be confirmed and correlated at the job site; fabrication processes and techniques of construction; coordination of his work with that of all other trades and the satisfactory performance of his work. pre-existina Contaminants CPH shall not be considered a generator , transporter , or disposer of materials affected by regulated contaminants. Because involvement with OWNER/CLIENT's contaminated substances can expose CPH to severe risks, OWNER/CLIENT shall, to the fullest extent permitted by law,waive any claim against CPH, and indemnify, defend, and hold CPH harmless from any claim or liability for injury or loss allegedly arising from CPH's involvement with OWNER/CLIENT's contaminated substances. OWNER/CLIENT shall also compensate CPH for any time spent or expense incurred by CPH in defense of any such claim. Such compensation shall be based on CPH's prevailing fee schedule and expense reimbursement policy. Site Safety Responsibilities CPH's site responsibilities are limited solely to the activities of CPH and CPH's employees on the site. These responsibilities shall not be inferred by any party to mean that CPH has responsibility for site safety for any reason. Safety in, on, or about the site is the sole and exclusive responsibility of the Contractor alone. The Contractor's methods of work performance, superintendence of the contractor's employees and subcontractors, and sequencing of construction are also the sole and exclusive responsibility of the Contractor alone. OWNER/CLIENT warrants that:1)these responsibilities will be made clear in OWNER/CLIENT's agreement with the Contractor; 2)OWNER/CLIENT's agreement with the Contractor shall require the Contractor, to the extent of Contractor's negligence, to indemnify, defend, and hold OWNER/CLIENT and CPH harmless up to a limit of $1,000,000 from any fine, penalty, claim, or liability for injury or loss arising from OWNER/CLIENT'S or CPH's alleged failure to exercise site safety responsibility; and 3)OWNER/CLIENT'S agreement with the Contractor shall require the Contractor to make OWNER/CLIENT and CPH additional insureds under the Contractor's general liability insurance policy, which insurance protection shall be primary protection for OWNER/CLIENT and CPH, and shall hold OWNER/CLIENT and CPH harmless from claims, losses, and defense cost arising from the negligence of contractor or subcontractor on any tier up to a limit of $1,000,000. Given the foregoing, OWNER/CLIENT also shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless up to a limit of$1,000,000 from any claim or liability for injury or loss arising from CPH's alleged failure to exercise site safety responsibility. OWNER/CLIENT also shall compensate CPH for any time spent and attorney fees and expenses incurred by CPH in defense of any such claim. Such compensation shall be based upon CPH's prevailing fee schedule and expense reimbursement policy. (The term "any claim" above referenced shall include, but not limited to, any claim for breach of contract, tort, or statute alleging negligence,errors, omissions, strict liability,statutory liability, breach of warranty, negligent misrepresentation,or other acts giving rise to liability.) Exhibit A Page 3of 5 CPH, Inc.-FL Rev 6/2013 OwnerfCllentInitials CPH is an Equal Opportunity/Affirmative Action Employer Governing Law.Venue.Jurisdictioq This instrument is to be interpreted and construed according to the laws of the State of Florida. It is agreed between the parties to this contract that any litigation, lawsuit or court action of any character arising from this agreement shall be filed and/or defended in Seminole County, Florida. All parties under this contract hereby voluntarily submit to the exclusive jurisdiction of the Florida Courts and the exclusive venue in Seminole County, Florida and do hereby waive any objections to either personal or subject matter jurisdiction of the Florida Courts or to said venue. Attorney Fees and Costs In connection with any dispute arising out of this Contract, each party shall be responsible for their own attorneys fees and costs incurred for services rendered in connection with such dispute, including appellate proceedings and postjudgment proceedings. Waiver of Conseauential Damaaes OWNER/CLIENT and CPH mutually agree to waive all claims for consequential damages against each other an each other's respective officers, directors, and employees from any and all claims arising out of the project, including, but not limited to, loss of use, lost profits, and delay damages, against each other, arising from disputes,claims,or other matters relating to this Agreement. Delay In Performance Neither the OWNER/CLIENT nor CPH shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. Such circumstances shall include, but are not limited to, abnormal weather conditions, floods, earthquakes,fire, epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and delay in or inability to procure permits, licenses, and authorizations from any local, state or federal agency;for any supplies, materials, accesses, or services required to be provided by either the OWNER/CLIENT or CPH under this Agreement. A reasonable extension of time for delay in performance caused by any such circumstances shall be granted. Should such circumstances occur the non-performing party shall within a reasonable time of being prevented from performing give written notice to the other party describing the circumstances preventing continued performance and efforts being made to resume performance under this Agreement. project Develooment. Aoorovals and Scheduling CPH will, in the course of its work, attempt to generally identify issues that would adversely affect the development of the site for use as proposed by the Owner/Developer. However, CPH cannot control the regulatory process, actions of others, or unforeseen conditions and does not guarantee that the project can be developed for use as proposed, nor does CPH guarantee the timing of or ultimate regulatory approval of the site for development as proposed. The local,state, and federal entities and authorities ("Authorities") having jurisdiction over the project may or may not approve the proposed use of the project. Additionally, it is uncertain how long those Authorities will take to consider and to take action on the applications for the proposed use of the project. Said decisions and approvals are subject to the decision making process of those Authorities. Therefore, CPH cannot represent or guarantee that said Authorities will approve, in whole or in part,the requested use of the project or that the decision making process will be timely for the project's use, or that the Authorities will grant variances applicable to the project. Therefore, the OWNER/CLIENT bears the risk of non-approval of the proposed use and the timing thereof. The OWNER/CLIENT needs to consider the ramifications to it if the project is not approved or only approved in part. Exhibit A Page 4 o 5 CPH, Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Limitation of Liability; Site Check Studies OWNER/CLIENT acknowledges that CPH's Site Check Studies pursuant to this Agreement are general in nature and are performed before design is started or completed. OWNER/CLIENT acknowledges the recommendation of CPH that the OWNER/CLIENT should not close on the subject property unless and until all applicable agency approvals are obtained and the permitting process is completed. If OWNER/CLIENT elects to close on the subject property prior to that time, OWNER/CLIENT accepts all risks and liability arising from closing prior to obtaining all applicable agency approvals and completion of the permitting process and releases CPH and CPH's officers. directors. and employees from all claims thereof. In order to allocate the relative risks and benefits of the proiect between the parties. the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity relating to CPH's Site Check Studies under this contract such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee for the Site Check Study paid by OWNER/CLIENT to CPH under this Agreement or$10,000,whichever is greater. Design And Other Professional Services OWNER/CLIENT acknowledges that CPH's services pursuant to this Agreement are to assist the client and are for the scope of services as outlined in the attached contract. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity, such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee paid by OWNER/CLIENT to CPH under this Agreement or$50,000,whichever is greater. PURSUANT TO FLORIDA STATUTE 558.0035, DESIGN PROFESSIONALS; CONTRACTUAL LIMITATION ON LIABILITY - AN INDIVIDUAL EMPLOYEE OR AGENT MAY NOT BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE Construction Defects on Florida Proiects ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES Exhibit Page 5of 5 CPH, Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Rates & Reimbursables CPH STANDARD RATES CPH STANDARD RATES Category Rate Category Rate Principal $160 Principal Landscape Architect $160 Sr.Project Manager 5150 Sr Landscape Architect $125 Project Manager $140 Landscape Architect $105 Professional Engineer $130 Sr.Landscape Designer $100 Sr.Project Engineer $125 Landscape Designer $85 Project Engineer $115 Project Designer $110 Project Coordinator $90 Principal Traffic Engineer $160 Sr.Design Technician $105 Sr Traffic Engineer $135 Design Technician $95 Traffic Engineer $115 Sr.CADD Technician $85 CADD Technician $75 Traffic Analyst $105 Senior Graphic Designer $125 Principal Environmental Scientist $160 Graphic Designer $75 Senior Environmental Scientist $125 Lead Environmental Scientist $105 Administrative $75 Clerical II $60 Environmental Scientist 595 Clerical I $40 GIS Analyst $105 Network Admin.(I) $80 Arborist $125 Sr.Construction Manager $120 Construction Manager $105 Principal Planner $160 Construction Field Representative II $100 Sr.Planner $130 Construction Field Personnel I $80 Planner $100 Principal Surveyor $160 Sr.Professional Surveyor $130 Principal Architect $160 Professional Surveyor and Mapper $125 Sr.Architect $140 Field Technician/Designer $105 Senior Architectural Manager $130 Surveyor In Training $100 Architect $125 Survey Project ManagerlCADD $100 Field Crew Coordinator $95 Senior Architectural Designer $120 Survey Party Chief $75 Architectural Designer $105 Survey Instrument Man $65 Architectural Coordinator $85 Surveying Sr CADD Tech $90 Surveying CADD Tech $75 Principal Structural Engineer $100 Survey Crew(2 Man) $135 Engineer $140 Survey Crew(Construction Staking.2 Man) $160 Senior Structural En 9 Survey Crew(3 Man) $155 Structural Engineer $115 BPS(1 Man)/Robotics $130 GPS(2 Man) $165 Principal MEP Engineer $160 1 Man Scanner/Laser Survey Crew $265 MEP Project Engineer $115 2 Man Scanner/Laser Survey Crew $290 MEP Project Designer $110 MEP Design Technician $95 Schedule of Reimbursable Charges Copies(B&W) Plots(B&W) Mileage At Current IRS 8.5 x 11 $0.05 Each 11 X 17 $0.21 Each Rates 8.5 x 14 $0.10 Each 12 X 18 $0.24 Each Phone At Cost Postage At Cost 11 x 17 $0.20 Each 15 X 21 S 0.35 Each Outside Reimbursables At Cost 34 X 22 $0.83 Each Copies(Color) 24 X 36 $0.96 Each 8.5 x 11 $0.25 Each 30 X 42 $1.42 Each 8.5 x 14 50.30 Each 38 X 48 $1.92 Each 11 x 17 $0.35 Each Billing and Reimbursable Rates Are Subject To Periodic Review and Adjustment. Mylars Plots(Color/Bond) Updated:December 14,2015 24 x 36 $9.00 Each 24 x 38 $24.00 Each 32 x 42 513.00 Each 30 x 42 $35.00 Each 36 x 48 $48.00 Each @PI AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN gllp oCPH,INC, AND HERITAGE BAY CDD,LLC FOR HERITAGE BAY CDD WATER QUALITY MONITORING COLLIER COUNTY,FLORIDA APRIL25,2016 CPH, Inc., Environmental Services(CPH) has prepared a proposal of services and fees to provide certain environmental consultant services for the above referenced project.CPH,Inc.hereinafter known as CPH or CONSULTANT proposes to furnish Heritage Bay CDD,LLC,hereinafter known as the Client,the professional services described belowforthefees stipulated herein. A. ENVIRONMENTAL SERVICES PROJECT DESCRIPTION Goal:To maintain aesthetically pleasing and healthy lakesthroughout property.Lakes within the property have been permitted and designed to treat and store stormwater drainage from residential areas and golf course. Expectations: Lakes that are permitted and designed to accept and move stormwater in order to provide drainage should not be expected to have the ecological function or chemical composition as naturally occurring lakes in the region. Lakes can meet aesthetic objectives as well as their drainage and storage requirements through proper management.Fish and birdlife may occur in these lakes but cannot be expected to be uninfluenced by maintenance activities(specifically maintenance of littoral and submerged plant communities).Fish and wildlife observations were recorded in the Severn Trent Services Field Management Report(2016).Although wildlife can utilize lakes such as the ones found in Heritage Bay CDD,conditions can become unfavorable at times because of management actions such as vegetation removal or residential lawn maintenance applications. Water Quality Standards:State Surface Water Quality Standards are not applicable to permitted Lakes(stormwater and drainage ponds). By design,stormwater is directed to these water bodies carrying various pollutants commonly found in residential and golf course runoff. The water body's ability to assimilate such pollution is artificially diminished through vegetation and algae control.Vegetation and algae are a water body's primary means of assimilation and response to nutrients.Nutrients are Florida's primarysurfacewater pollutant. Water quality in this stormwater and drainage system should be considered in respect to management actions and with the realization that management actions affect water quality. When red ludwigia and Illinois pondweed (both native to Florida unlike Hydrilla)are targeted for chemical removal,a lakes natural response to assimilating nutrients is diminished. With nutrients once bound in vegetation now available inthewatercolumn through the process of decay,filamentous or planktonic algae will likely respond to the imbalance. Filamentous algae, stringy plant like algae found in shallow water around the perimeter of a water body,and planktonic algae,single celled algae that makes the water look green or brown,most commonly affect people's perception of"water quality".Excessive growth of either form of algae is indicative of nutrient enrichment and an imbalance in the lakes floral community.Chlorophyll a can be sampled to determine the amount of chlorophyll found in the water column. Elevated Chlorophyll a levels are directly correlated with reduced water clarity,odor and the potential for algae blooms. Water Quality Improvements: Improvements can be made to individual water bodies such as the addition of aeration and enzyme treatments to counteract the rise of Chlorophyll a caused by management activities such as vegetation management. An EPA publication called "Lake Notes"Lake Aeration and Circulation suggests that aeration can increase fish and other aquatic animal habitat,prevent fish kills,and improve quality of water supplies and decrease treatment costs. EPA also acknowledges in some cases nuisance algal blooms can be reduced or a shift to less objectionable algae species can occur. Enzyme treatments are also available to speed up a lakes ability to assimilate and digest excess nutrients and organic sediments that also contribute to algae blooms.With successful application of these treatments,sediments should change from small(mucky)organic particles to larger,coarser sand particles. Nutrients are also"consumed" making them unavailable to algal communities.Aeration or enzyme treatments could be focused on waterbodies that are not achieving management goals.This type of management(enzymes)has the potential to reduce the frequency of dredging lakes(stormwater ponds). .Water Quality Monitoring: Prior to any changes in the way of water quality improvements,a baseline study should be performed on all thirty lakes in order to measure the efficacy of any water quality improvements,or illuminate areas of growing concern.To begin the study,all lakes would be sampled for the following parameters to establish a base line.Future sampling could be focused toward lakes with active water quality improvement efforts.Measurable analytes thatwi ll assist in water quality improvement analysis are: • Chlorophyll a-Most visual representation of water quality • Total Nitrogen-Contributes to elevated Chlorophyll a levels • Total Phosphorus-Contributes to elevated Chlorophyll a levels • Sediment Particle size-Reflects the presence or absence of organic muck(optional but not required for WQ) • Secchidepth..Reflectswaterclarity(sampling were appropriate) • Dissolved Oxygen-Reflects the amount of oxygen in the water available to fish • pH-Reflects the acidity or alkalinity of the water • Conductivity-Measures ionic content,linked directly with dissolved solids • Temperature-Used in analysis of dissolved oxygen values This analysis should be repeated at least quarterly to reflect seasonal variation and interpreted in a time period that will reflect annual trends.A report will be generated discussing identified concerns,baseline water chemistry results, implemented strategies(management activities)to address identified concerns and post management water quality sampling results. All samples should be collected and analyzed per Florida Department of Environmental Protection Standard Operating Procedures.Samples should be grab samples at 0.5 meters from the surface as per FDEP aqueous sampling SOP.Grab samples can be taken from shore if open water can be reached and is uninfluenced by emergent vegetation. Disturbing sediments in the immediate area of sample collection should be avoided. Unless dictated by permit,program or order,sampling at or near structures(e.g.,dams,weirs or bridges) may not provide representative data because of unnatural flow patterns.Samples should be taken to reflect stable conditions, avoiding heavy rainfall events and drought.Deep water and profile samples are not needed.Samples need only be collected from the photic zone,the surface layer where sunlight can influence Chlorophyll a levels.Sediment particle size should be collected from the middle of awater body.It should be understood that sediment particle size will take the longest time to reflect changes caused by water quality improvements. CPH, Inc.has been requested to perform a Baseline Monitoring for all lakes and Quarterly Monitoring for up to 29 Lakes.CPH shall collect limited water quality data within approximately 29 lakes/stormwater management ponds within the community development district boundary. SCOPE OF SERVICES 1.1 BASIC SERVICES CPH shall provide,or obtain from others,all labor,material and equipment to perform the following services: Water Quality Monitoring ) >-CPH shall sample Chlorophyll a,Total Nitrogen,Total Phosphorus,Dissolved Oxygen, pH,Conductivity, and Temperature at a Baseline Monitoring Event and Quarterly thereafter for up to 29 lakes within the development boundaries.Atotal of4 monitoring events shall beconducted. );;>-During the baseline and quarterly water quality sampling events,CPH scientists shall photograph lakes and document the aquatic vegetation observed as appropriate. );;>-CPH shall report any issues observed during the water quality monitoring events to the Client via email within 5working days of the monitoring event. );;>-After twelve months of monitoring,CPH shall prepare a report of results describing the quality of the water based on the parameters sampled.The report shall include pictures of the lakes sampled,graphic depicting the location of the sampling area,list of aquatic vegetation observed in each lake sampled and CPH shall make recommendations on lake management based on management activities conducted over the 12 months and the results of the water quality sampling. Additional Services Provide other professional and technical services notspecifically identified in Section 1.1 above. B. SURVEY 1.2 Bathymetric Analysis Topographic Survey: Perform a Topographic Survey as per Rule Chapter 5J-17 of the Florida Administrative Code in compliance with the standards of practice of surveying and mapping of the State of Florida. Collect topographic data at 200 foot cross sections and depth soundings on lakes as depicted within the red area on the attached "Survey Site Exhibit" to include top of silt, top of bank and apparent hard bottom at lake soundings where accessible. Apparent hard bottom elevations will not be collected on lakes/ponds with a depth greater than 20 feet. Provide six(6)site benchmarks. Signed and sealed Topographic Survey. State Plane: The project coordinate system will be based horizontally on the North American Datum 83(2011) (NAD 83(2011)). The project will be referenced to state plane coordinates by field locating published control points. The National Geodetic Survey control points will be researched and verified in the field. This base of reference will be used to establish the coordinate system for the project. Benchmarks and Control: The project will be based on the National American Vertical Datum of 1988 (NAVD 88). The project will be referenced to these published elevations by field locating published benchmarks. Services under Basic Services, Task 1.2 above shall be provided as a Fixed Fee of $22,190; Note: A $1,080.00 mobilization fee will be required for each additional site visit. This cost shall not be exceeded without Client authorization. Invoices for Basic Services will be submitted monthly based on percent complete. 2.1 COST AND COMPENSATION 2.2 Basic Services Services under Basic Services,Task 1.1 above shall be provided as a Fixed Fee of$9,800 for the Baseline Monitoring Event of Heritage Bay water bodies.This cost shall not be exceeded without Client authorization. Invoices for Basic Services will be submitted monthly based on percent complete. Services under Basic Services,Task 1.1 above shall be provided as a Fixed Fee of$9,300 quarterly(for three quarters)to monitor approximately 29 water bodies for a total of$27,900.This cost shall not be exceeded without Client authorization.Invoices for Basic Services will be submitted monthly based on percent complete. Services under Basic Services,Task 1.1 above for the Annual Report shall be provided as a Fixed Fee of $3,000.This cost shall not be exceeded without Client authorization. Invoices for Basic Services will be submitted monthly basedon percentcomplete. 2.3 Additional Services Invoices for Additional Services will be provided on an hourly plus expense reimbursement basis. Invoices for Additional Services will be submitted monthly. Sediment particle size sampling can be provided, if requested by the client on an as needed basis.This Additional Service shall be provided as a Fixed Fee.A total of 10 lakes shall be sampled in one event and samples analyzed at a laboratory and the report shall be provided to the Client.This Additional Service shall be provided as a Fixed Fee of $3,800. This cost shall not be exceeded without Client authorization. Invoices for this Additional Service associated with sediment particle size sampling will besubmitted monthly based on percent complete. Labor CPH will perform the Scope of Services contained in this Agreement as identified on each task,either lump sum or time and materials. Refer to the Standard Hourly Rate Schedule to be utilized on this project. The following is the break down of fees for each task. Tasks that are identified as Time and Materials (Hourly) have been provided an 'Upset Limit'(USL)budget. The CLIENT will be informed when the services are about to exceed this limit. Phase No. Phase Description Billing Method Fee A. ENVIRONMENTAL SERVICES 1.1 Baseline Monitoring Lump Sum $9,800.00 Quarterly Lake Monitoring Lump Sum $27,900.00 Annual Report Lump Sum $3,000.00 Sediment Sampling Lump Sum $3,800.00 B. SURVEYING 1.2 Bathymetric Analysis Lump Sum $22,190.00 3.0 RESPONSIBILITIES OF OTHERS The Client shall guarantee access to and make provisions for CPH to enter public or private lands as required byCPHtoperformtheirwork underthisAgreement. Itis understood that CPH,Inc.will perform services under the sole direction of the Client or his designated representative. In the performance of these services, CPH will coordinate its efforts with those of other project team members and consultants as required. The Client shall provide CPH with all project related information available including the existing land plan,property legal description,title work,boundary and topographic surveys, geotechnical investigation reports, etc. CPH will rely upon the accuracy and completeness of all Client furnished information in connection with the performance of services under this agreement. 4.0 SERVICES NOT INCLUDED The following services are not anticipated and,therefore,not included inthis Agreement at this time: Environmental studies and coordination of environmental issues with the regulatory agencies. Wetlands Permitting Gopher Tortoise Permitting and Relocation Sand Skink Consultation and Studies Specific Wildlife Assessments and Permitting Review of an alternative product in lieu of the product called for on the plans and specifications Services resulting from changes made byclientfollowing the completion of specific project tasks that require re-work by CPH Special meetings with agencies,other consultants or Client not normally required to perform the work described in the Scope of Services,except those meetings specifically identified in the above Scope of Work Phase I land remediation Any other issues not specifically described in this proposal Should work be required in any ofthese areas,or areas not previously described,CPH will prepare a proposal or amendment,at the CLIENT's request,that contains the Scope of Services,fee,and schedule required to complete the additional work item. 5.0 AUTHORIZATION Should the agreement be acceptable,please sign,retain a copy for your records,and return a copy to CPH as our notice to proceed. We look forward to working with you on this endeavor.Should you have any questions, please call Amy Daly at(407)322-6841. CPH,INC AUTH•R IZATION By: /add Amy .Q: ,LEED AP Title: Vice President/Director of Environmental Services Date: Apri125,2016 CLIENT AUTHORIZATION HERITAGE BAY CDD,LLC agrees with the Scope of Services,Compensation,and Standard Provisions Exhibit A (attached hereto and acknowledged as being received).Together they constitute the entire Agreement between CPH,INC.and HERITAGE BAYCDD,LLC. The fees for Basic Services proposed herein are estimated at$66;690. It is understood that fees for the subject project,including but not limited to,application fees,impact fees,utility connection fees,review fees,etc.,will be paid directly by the CLIENT.Payment for services rendered will be due within forty-five(45)days of invoicing.Should the CLI ENT choose to not complete the project at any phase of the project,CPH will be due any fees for services up to the time the CLIENT informs CPH in writing to stop work. Payment for services up to the time of the CLIENT'S notice will be due within thirty(30)days of the final invoice. Invoice payments must be kept current for services to continue. CPH reserves the right to terminate or suspend work when invoices become ninety(90)days past due.In event that the work is suspended orterminated as a result of non-payment,CLIENT agrees that CPH will not be responsible for CLIENT'S failure to meet project deadlines imposed by governments,lenders,or other third parties.Neither is CPH responsible for other adverse consequences as a result oftermi nation or suspension ofwork for nonpayment of the invoices. This proposal is void if not executed and returned to the CONSULTANT within 60 days of the CONSULTANTS execution of the proposal. By: HERITAGE BAY CDD,LLC Print Name: Title: Date: EXHIBIT A Standard Provisions toAgreement Agreement between HERITAGE BAY CDD. LLC (hereinafter referred to as "OWNER/CLIENT") and CPH, Inc. (hereinafter referred to as "CPH") for professional services which may include engineering, surveying, architecture, landscape architecture, environmental, forestry, planning, transportation/traffic, etc. dated April 25, 2016. Standard of Care CPH will endeavor to provide services in a manner consistent with the level of care and skill ordinarily exercised by other professionals under similar circumstances practicing in the same or similar locality. The standard of care shall be exclusively judged at the time services are rendered and not according to later standards. CPH makes no express or implied warranty with regard to its services. Compensation. Out of Pocket and Subcontract Expenses "Compensation" as used in the Agreement includes those costs which are connected with the conditions of employment and pay of the employees and include salaries of those employees directly engaged in the performance of the requested services and employer contributions for social security, workers compensation, unemployment and payroll taxes, medical and insurance benefits,retirement benefits, holiday and sick leave pay and other allowed benefits. "Out of Pocket Expenses"as used in the Agreement include such items as travel and subsistence, printing and reproduction, telephone/communications charges, freight, postage, computer and similar costs. "Subcontract Expenses" as used in this Agreement include subcontracts for special consultants such as licensed land surveyors, soils borings and geotechnical and geohydrological services, laboratory services,environmental scientist services and other professional scientific or technical service organizations. Invoice payments are due upon receipt of the invoice and must be kept current for services to continue. Payment should be mailed to CPH, Inc.at 500 West Fulton Street, Sanford, FL 32771. If the OWNER/CLIENT fails to pay any invoice due within 45 days of the date of the invoice, CPH may, without waiving any other claim or right against OWNER/CLIENT, suspend services under this agreement until CPH has been paid in full all amounts due CPH and/or any of its consultants and subconsultants. OWNER/CLIENT shall pay CPH interest at 12% per annum on all invoices that remain unpaid for more than 45 days. Additional Services "Additional Services"of CPH are services which are not considered normal or customary basic services, except to the extent provided in the basic Agreement, and may include such items as preparation of grant or funding applications and supporting documents; additional services or costs resulting from significant changes in the scope or extent of the project or its design or project delays; providing renderings or models for the OWNER/CLIENT's use; preparing documents for alternate bids; furnishing the services of special consultants; resident project representation or resident inspection; services resulting from the award of additional separate contracts; special field surveys;reproducible Record Drawings or original Drawings;providing"as-built" drawings; additional services during construction; serving as a consultant or witness for the OWNER/CLIENT during any litigation, public hearing, etc.; and services normally furnished by the OWNER/CLIENT; or other services not otherwise specifically provided for in the Agreement. Additional services are not included in the basic payment provisions of the Agreement except to the extent specifically provided herein. Opinions of Cost Since CPH has no control over the cost of labor, materials,equipment or services furnished by others, or over the CONTRACTOR(s)' methods of determining prices, or over competitive bidding or market conditions, our opinions of probable project cost and construction cost are made on the basis of our experience and qualifications and represent our best judgment as an experienced and qualified professional,familiar with the construction industry; Exhibit A Page 1 of 5 CPH, Inc.-FL Rev6/2013 Owner/Client Initials CPH is an Equal Opportunity/AffimiativeAction Employer but CPH cannot and does not guarantee that proposals, bids, or actual project costs or construction costs will not vary from opinions of probable cost prepared by us. Use of Documents All documents including Drawings and Specifications prepared by CPH pursuant to this Agreement belong to CPH and are instruments of our service in respect to the project. They are not intended or represented to be suitable for reuse by the OWNER/CLIENT on another project or any extension of this project,or for use by others on this project, any extension, or any other project. Rights to use of the documents by Owner/Client shall terminate in the event that Owner/Client fails to pay invoices as outlined herein. Underaround Utilities and Structures The locations of all existing utilities shown on the drawings prepared by CPH will be based on surveys of at-grade or above grade physical culture (such as valve boxes, hydrants, utility poles, permanent markers) and surveying to pick up temporary utility locate markings provided by the utility. CPH assumes no responsibility for the accuracy of utilities shown by temporary markings provided by the utility or the locations of utilities based on other non-physical features (such as plans prepared by others including mark-ups of locations provided by the utility). The below grade vertical and horizontal locations of utilities will not be required to be surveyed by CPH, and consequently, CPH assumes no responsibility for the location of below grade utilities. The OWNER/CLIENT agrees to release CPH from any liability to OWNER/CLIENT for the failure to locate any existing utility where its physical location could not have reasonably been known based on the above. Termination The obligation to provide further services under this Agreement, may be terminated by either party upon fifteen (15) days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of the Agreement through no fault of the terminating party. If the Agreement is terminated during prosecution of the services and prior to the completion of services, CPH shall be compensated by the OWNER/CLIENT for all services performed under this Agreement to the date of termination. In addition, CPH will be paid for all reasonable expenses resulting from such termination. Construction Administration Where construction administration is provided as a part of the basic services as outlined in the Agreement, CPH shall not be required to make exhaustive or continuous on-site inspections, but shall make periodic observations as may be outlined in more detail in the basic Agreement CPH shall not be responsible for the means, methods, techniques, procedures of construction, or schedules selected by the CONTRACTOR or the safety precautions and programs incident to the work of the CONTRACTOR. CPH will periodically visit the site at intervals outlined in the Agreement to become generally familiar with the progress of the work to keep the Owner advised of the work. CPH will observe the work of the CONTRACTOR to endeavor to determine if the work is in general conformance with the project documents. CPH shall not be responsible for the failure of the CONTRACTOR to perform the construction work in accordance with the Documents. CPH shall provide the OWNER/CLIENT with written notice of any uncorrected defects or deficiencies coming to its attention in the course of the periodic visits above-mentioned. During such visits and on the basis of its on-site observations, CPH may recommend to the OWNER that the CONTRACTOR's work be disapproved or rejected as failing to conform to the Documents.CPH shall not have the right or duty to stop the CONTRACTOR'S work. professional Services Provided by Others Surveying, soils, planning, architecture, landscape architecture, legal, accounting, construction inspection and other services may be provided by the OWNER/CLIENT or others on this project and the results furnished to CPH. It is agreed that CPH may rely upon the results of those services by others in performing its work without verification of same. CPH assumes no responsibility for the accuracy or technical adequacy of such professional services provided by others. ExhibitA Page 2of5 CPH, Inc.FL Rev6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer CPH's Aooroval for Payment Approval of a CONTRACTOR's application for payment is an expression of opinion by CPH and shall at no time be considered as legal obligation on the part of CPH. Neither shall same be considered as an acceptance of any work or materials furnished. CPH's approval for payment is an expression of opinion by CPH that to the best of our knowledge, information and belief,the quality of the work included for payment is in general accordance with the Contract Documents (subject to an evaluation of the work as a functioning improvement upon substantial completion and to the results of any subsequent tests or inspection made). By approving an application for payment, CPH will not be deemed to have represented that we have made any examination of how or for what purpose any CONTRACTOR has used the money paid on any of the CONTRACTOR's work or that title to any of the CONTRACTOR's work, materials or equipment has passed to the OWNER/CLIENT,free and clear of any liens,claims,security interests or encumbrances. Checking of Shoo Drawings Checking of shop drawings is only for general conformance with the design concept of the project and general compliance with the information given in the Contract Documents. Any action shown is subject to the requirements of the Plans and Specifications. It is the CONTRACTOR's responsibility and not that of the CPH,for dimensions which shall be confirmed and correlated at the job site; fabrication processes and techniques of construction; coordination of his work with that of all other trades and the satisfactory performance of his work. Pre-existina Contaminants CPH shall not be considered a generator , transporter , or disposer of materials affected by regulated contaminants. Because involvement with OWNER/CLIENT's contaminated substances can expose CPH to severe risks, OWNER/CLIENT shall, to the fullest extent permitted by law,waive any claim against CPH, and indemnify, defend, and hold CPH harmless from any claim or liability for injury or loss allegedly arising from CPH's involvement with OWNER/CLIENT's contaminated substances. OWNER/CLIENT shall also compensate CPH for any time spent or expense incurred by CPH in defense of any such claim. Such compensation shall be based on CPH's prevailing fee schedule and expense reimbursement policy. Site Safety Resoonsibilities CPH's site responsibilities are limited solely to the activities of CPH and CPH's employees on the site. These responsibilities shall not be inferred by any party to mean that CPH has responsibility for site safety for any reason. Safety in, on, or about the site is the sole and exclusive responsibility of the Contractor alone. The Contractor's methods of work performance, superintendence of the contractor's employees and subcontractors, and sequencing of construction are also the sole and exclusive responsibility of the Contractor alone. OWNER/CLIENT warrants that:1)these responsibilities will be made clear in OWNER/CLIENT's agreement with the Contractor; 2)OWNER/CLIENT's agreement with the Contractor shall require the Contractor, to the extent of Contractor's negligence, to indemnify, defend, and hold OWNER/CLIENT and CPH harmless up to a limit of $1,000,000 from any fine, penalty, claim, or liability for injury or loss arising from OWNER/CLIENT'S or CPH's alleged failure to exercise site safety responsibility; and 3)OWNER/CLIENT'S agreement with the Contractor shall require the Contractor to make OWNER/CLIENT and CPH additional insureds under the Contractor's general liability insurance policy, which insurance protection shall be primary protection for OWNER/CLIENT and CPH, and shall hold OWNER/CLIENT and CPH harmless from claims, losses, and defense cost arising from the negligence of contractor or subcontractor on any tier up to a limit of $1,000,000. Given the foregoing, OWNER/CLIENT also shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless up to a limit of$1,000,000 from any claim or liability for injury or loss arising from CPH's alleged failure to exercise site safety responsibility. OWNER/CLIENT also shall compensate CPH for any time spent and attorney fees and expenses incurred by CPH in defense of any such claim. Such compensation shall be based upon CPH's prevailing fee schedule and expense reimbursement policy. (The term "any claim" above referenced shall include, but not limited to, any claim for breach of contract, tort, or statute alleging negligence,errors, omissions, strict liability, statutory liability, breach of warranty,negligent misrepresentation,or other acts giving rise to liability.) ExhibitA Page3of5 CPH, Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Ii Governing Law.Venue.Jurisdiction This instrument is to be interpreted and construed according to the laws of the State of Florida. It is agreed between the parties to this contract that any litigation, lawsuit or court action of any character arising from this agreement shall be filed and/or defended in Seminole County, Florida. All parties under this contract hereby voluntarily submit to the exclusive jurisdiction of the Florida Courts and the exclusive venue in Seminole County, Florida and do hereby waive any objections to either personal or subject matter jurisdiction of the Florida Courts or to said venue. Attorney Fees and Costs In connection with any dispute arising out of this Contract, each party shall be responsible for their own attorneys fees and costs incurred for services rendered in connection with such dispute, including appellate proceedings and post judgment proceedings. Waiver of Consequential Damages OWNER/CLIENT and CPH mutually agree to waive all claims for consequential damages against each other an each other's respective officers, directors, and employees from any and all claims arising out of the project, including, but not limited to, loss of use, lost profits, and delay damages, against each other, arising from disputes,claims,or other matters relating to this Agreement. Delav In Performance Neither the OWNER/CLIENT nor CPH shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. Such circumstances shall include, but are not limited to, abnormal weather conditions, floods, earthquakes,fire, epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and delay in or inability to procure permits, licenses, and authorizations from any local, state or federal agency;for any supplies, materials, accesses, or services required to be provided by either the OWNER/CLIENT or CPH under this Agreement. A reasonable extension of time for delay in performance caused by any such circumstances shall be granted. Should such circumstances occur the non-performing party shall within a reasonable time of being prevented from performing give written notice to the other party describing the circumstances preventing continued performance and efforts being made to resume performance under this Agreement. Proiect Development. Approvals and Schedulina CPH will, in the course of its work, attempt to generally identify issues that would adversely affect the development of the site for use as proposed by the Owner/Developer. However, CPH cannot control the regulatory process, actions of others, or unforeseen conditions and does not guarantee that the project can be developed for use as proposed, nor does CPH guarantee the timing of or ultimate regulatory approval of the site for development as proposed. The local,state, and federal entities and authorities ("Authorities") having jurisdiction over the project mayor may not approve the proposed use of the project. Additionally, it is uncertain how long those Authorities will take to consider and to take action on the applications for the proposed use of the project. Said decisions and approvals are subject to the decision making process of those Authorities. Therefore, CPH cannot represent or guarantee that said Authorities will approve, in whole or in part,the requested use of the project or that the decision making process will be timely for the project's use, or that the Authorities will grant variances applicable to the project. Therefore, the OWNER/CLIENT bears the risk of non-approval of the proposed use and the timing thereof. The OWNER/CLIENT needs to consider the ramifications to it if the project is not approved or only approved in part. Exhibit A Page 4of 5 CPH, Inc.-FL Rev6/2013 Owner/ClientInitials CPH is an Equal Opportunity/Affirmative Action Employer Limitation of Liability: Site Check Studies OWNER/CLIENT acknowledges that CPH's Site Check Studies pursuant to this Agreement are general in nature and are performed before design is started or completed. OWNER/CLIENT acknowledges the recommendation of CPH that the OWNER/CLIENT should not close on the subject property unless and until all applicable agency approvals are obtained and the permitting process is completed. If OWNER/CLIENT elects to close on the subject property prior to that time, OWNER/CLIENT accepts all risks and liability arising from closing prior to obtaining all applicable agency approvals and completion of the permitting process and releases CPH and CPH's officers.directors. and employees from all claims thereof. In order to allocate the relative risks and benefits of the proiect between the parties. the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity relating to CPH's Site Check Studies under this contract such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee for the Site Check Study paid by OWNER/CLIENT to CPH under this Agreement or$10,000,whichever is greater. Design And Other Professional Services OWNER/CLIENT acknowledges that CPH's services pursuant to this Agreement are to assist the client and are for the scope of services as outlined in the attached contract. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity, such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee paid by OWNER/CLIENT to CPH under this Agreement or$50,000,whichever is greater. PURSUANT TO FLORIDA STATUTE 558.0035, DESIGN PROFESSIONALS; CONTRACTUAL LIMITATION ON LIABILITY - AN INDIVIDUAL EMPLOYEE OR AGENT MAY NOT BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE Construction Defects on Florida Projects ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES ExhibitA Page 50 5 CPH, Inc-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmati ve Action Employer Rates & Reimbursables CPH STANDARD RATES CPH STANDARD RATES Category Rate Category Rate Principal $160 Principal Landscape Architect $160 Sr.Project Manager $150 Sr.Landscape Architect $123 Project Manager $140 Landscape Architect $105 Professional Engineer $130 Sr.Landscape Designer $100 Sr.Project Engineer $125 Landscape Designer $85 Project Engineer $115 Project Designer $110 Project Coordinator $90 Principal Traffic Engineer $160 Sr.Design Technician $105 Sr.Traffic Engineer $135 Design Technician $95 Traffic Engineer $115 Sr.CADD Technician $85 Traffic Analyst $105 CADD Technician $75 Senior Graphic Designer $125 Principal Environmental Scientist $160 Graphic Designer 575 Senior Environmental Scientist $125 Lead Environmental Scientist $105 Administrative $75 Clerical II $60 Environmental Scientist $95 Clerical I $40 015 Analyst $105 Network Admin.(I) $80 Arborist $125 Sr.Construction Manager $120 Construction Manager $105 Principal Planner $160 Construction Field Representative II $100 Sr.Planner $130 Construction Field Personnel I $80 Planner $100 Principal Surveyor $160 Sr.Professional Surveyor $130 Principal Architect $160 Professional Surveyor and Mapper $125 Sr.Architect $140 Field Technician/Designer $105 Senior Architectural Manager $130 Surveyor in Training $100 Architect $125 Survey Project Manager/CADD $100 Field Crew Coordinator $95 Senior Architectural Designer $120 Survey Party Chief $75 Architectural Designer $105 Survey Instrument Man $65 Architectural Coordinator $85 Surveying Sr CADD Tech $90 Surveying CADD Tech $75 Principal Structural Engineer $160 Survey Crew(2 Man) $135 Senior Structural Engineer $140 Survey Crew(Construction Staking.2 Man) $160 9 Survey Crew(3 Man) $155 Structural Engineer $115 GPS(1 Man)/Robotics $130 GPS(2 Man) $165 Principal MEP Engineer $160 1 Man Scanner/Laser Survey Crew $265 MEP Project Engineer $115 2 Man Scanner/Laser Survey Crew $290 MEP Project Designer $110 MEP Design Technician $95 Schedule of Reimbursable Charges Copies(SSW) Plots(B&W) Mileage At Current IRS 8.5 x 11 $0.05 Each 11 X 17 $0.21 Each Rates 11.5 x 14 $0.10 Each 12 X19 $0.24 Each Phone At Cost Postage At Cost 11 x 17 $0.20 Each 15 X 21 $0.35 Each Outside Reimbursables At Cost 34 X 22 $0.83 Each Copies(Color) 24 X 36 $0.96 Each 8.5 x 11 $0.25 Each 30 X 42 $1.42 Each 8.5 x 14 $0.30 Each 36 X 48 $1.92 Each 11 x 17 50.35 Each Billing and Reimbursable Rates Are Subject To Periodic Review and Adjustment. Mylars Plots(Color/Bond) Updated:December 14,2015 24 x 36 $9.00 Each 24 x 38 $24.00 Each 32 x 42 513.00 Each 30 x 42 $35.00 Each 36 x 48 $48.00 Each cap Heritage Bay & The Quarry Joint Committee for Maintenance of the Surface Water Management System (SWMS) Minutes of April 21, 2016 Meeting The meeting was called to order at approximately 9:00 a.m. Present: Jack Osborn, Heritage Bay Umbrella Association, Inc. Laura Severance, Heritage Bay Umbrella Association, Inc. Ed Hubbard, Heritage Bay CDD Jack May, Heritage Bay CDD David Thomas, The Quarry HOA Roger Gifford, The Quarry HOA Also Present: Scott Brooks, The Quarry CDD Josh Evans, J.R. Evans Engineering (District Engineer, Quarry CDD) Adam Radler, Quarry Community Association Manager Mr. Osborn began by noting the purpose of this Joint Committee, which consists of two representatives each from the Umbrella Association, the Heritage Bay CDD, and the Quarry HOA. The Committee is informal and has no intrinsic powers, nor will its members be casting formal votes. Its members represent the interests of the respective entities with which they formally serve. The purpose of the Committee is to enable its members to arrive at a mutually acceptable agreement regarding maintenance of the Surface Water Management System (SWMS)that is shared by Heritage Bay and The Quarry, and to determine the proper and mutually acceptable role of the Umbrella Association in this process. As Mr. Osborn related, the developers originally created the UA with the expectation that it would be responsible for maintenance of the entire SWMS in both communities, but that plan was never implemented and, instead, the two communities have separately maintained the portions of the SWMS within their respective boundaries. It is the sense of the Committee that such separate maintenance should continue in the future, subject to a mutually acceptable agreement outlining Best Maintenance Practices(BMP) and providing for mutual accountability for the maintenance done on each side. It was noted that such an approach would be consistent with the permit authority of the South Florida Water Management District, which now separately assigns permit responsibility for most of the SWMS to the two CDDs. 1 Ms. Severance observed that, under the Umbrella Association's own documents, the UA cannot be dissolved without the prior approval of the SFWMD. She shared a document that excerpted and referenced various provisions of the UA documents(attached). Mr. Hubbard and Dr. Thomas, who are the principal representatives of the two operating entities that have actually been maintaining the SWMS, were then invited to make opening statements. Mr. Hubbard offered what came to be regarded as sound BMP Principles,which included: (1) vigilance regarding maintaining the integrity of the SWMS, (2) ensuring the long-term viability of the SWMS, (3) preparing to address future needs by maintaining reserves, (4) communications with homeowners, and (5)financial accountability/reserve planning. He expressed the view that the UA would not be helpful in overseeing maintenance, and noted that if either CDD failed to properly maintain the SWMS, it would have to answer to state authorities. Dr. Thomas responded by fully endorsing the stated BMP Principles. However, expressed the view that the UA should have an oversight function. Discussion then turned to the specifics of maintaining the various facets of the SWMS, as well as the need to find common ground as to BMPs. Control Structures: It was agreed that, while the control structures are extremely important, their maintenance is not complicated: they should be inspected periodically, and kept clear of debris and vegetation. Our control structures should have a very long useful life, perhaps 75 years or more. Mr. Evans noted that they have no moving parts. Some or all of them do have a baffle. Mr. Hubbard noted that the HB CDD already had to re-anchor one weir at one of the main discharge points into Cocahatchee Canal. Mr. Hubbard also noted that the HB CDD inspects the control structures on the HB side monthly, and is keeping a reserve to address a possible future repair/replacement on the HB side. It was agreed that each community will properly maintain the control structures on its side of the SWMS, and will report annually to the other community the specifics of its own control structure maintenance activities during the prior year. It also was agreed that the contractor conducting inspections for either the Quarry HOA or the HB CDD (to be determined)should inspect the control structure that is or may be located on the commercial property. It was stated that if there is concern for the control structure located on the commercial property, that concern should be reported to SFWMD and they would follow up with the controlling entity to ensure proper maintenance. It was not decided if that report to SFWMD was required at this time. Recreational Lakes: Depending on terminology, these are either three large lakes(30A, 30B and Stone)or one large lake extending between the two communities. Either way, the recreational lakes are significant(1)to both communities as a vital part of the SWMS, (2)to both communities for their aesthetic and property values, and (3)to The Quarry for boating and fishing. Mr. 2 Osborn observed, and the Committee appeared to agree, that maintenance of the lakes should include (subject to agreement on specifics): (1)maintenance of littoral areas (erosion control), (2)control of vegetation, (3) removal of debris, (4) monitoring of water quality, and (5) sedimentation control. Dr. Thomas noted that a particular bacteria can be introduced into the ponds (a local application) in order to control sedimentation, so that the need for dredging could be extended from perhaps 7-10 years to perhaps 30-40 years or longer. The Quarry awaiting a FGCU report on a type of bacteria that can be used in ponds. Ms. Severance made reference to a SFWMD document that provides some guidance (though perhaps not specific requirements)for SWMS maintenance. There appeared to be general agreement between Dr. Thomas and Mr. Hubbard regarding the need for lake maintenance in the five subject areas listed above. With respect to control of vegetation, however, Dr. Thomas expressed the view that all invasive weeds(specifically including so-called Illinois Pond Weed) should be completely(or virtually completely) removed. He also felt that a mechanical cutting coupled with the chemical application should be done. Mr. Hubbard expressed a differing view, stating that his CDD would ensure that the area under and near the HB bridge is kept clear of weeds(to facilitate boating), but that it was neither necessary nor financially prudent to attempt to clear all weeds, particularly from the north side along the HB golf course and the south side along the littoral shelf of Lake 3013_ He noted that the HB CDD had engaged Lakes and Wetland Management to advise them regarding proper lake maintenance, including weed control. Dr. Thomas advised that The Quarry HOA had engaged Professor Serge Thomas, PhD, Aquatic Ecologist and Asst. Professor from Florida Gulf Coast University, to provide similar advice (hopefully to be rendered within the next few weeks). [In extended remarks, Mr. Hubbard later desired to add: "For the record, although Illinois pondweed does represent a challenge for us in controlling its growth, it is a common native plant in Florida and is not considered an invasive, exotic plant."] It was agreed that both sides could benefit from objective, professional advice regarding lake maintenance, particularly with respect to weed control, that each side will share with the other such advice as it receives from its own consultant, and that each community will report annually to the HBUA and the other community the specifics of its own lake maintenance activities during the prior year. Ponds: With respect to ponds, it was agreed that proper maintenance of ponds throughout the SWMS is important to both communities so that the SWMS can operate as intended (even though boating is not a factor, and the aesthetic value of a pond is important only to the community in which the pond is located). Mr. Evans observed that, with proper maintenance, it likely would never be necessary to dredge our ponds. It was agreed that each community will properly 3 maintain its own ponds, and will report annually to the HBUA and the other community the specifics of its own pond maintenance activities during the prior year. With respect to both lakes and ponds, it was noted that the introduction of grass carp sometimes is viewed as a proper weed control measure, but that controlling the grass carp population can be quite difficult and that grass carp can end up devouring desirable vegetation. All parties agreed that, given the design of our common SWMS, it would be difficult or impossible to keep grass carp introduced anywhere in the SWMS from spreading throughout all lakes and ponds in the SWMS. Accordingly, it was agreed that neither community will deliberately introduce grass carp, or allow the introduction of grass carp, to its lakes or ponds without consultation with other community. Interconnects:With respect to interconnects, all parties agreed that regular inspection and periodic cleaning (as necessary) is the proper maintenance practice. It was noted that all or most of our interconnects are submerged virtually all of the time, so that detecting a build-up of sediment generally requires a video inspection, or can be found with reported standing water, and also can be found during the rainy season by watching water levels and addressing high levels that are slow to recede or lead to pooling. Mr. Hubbard observed that the HB CDD has an established program of inspecting interconnects, and already has shared the control sheet that reflects its inspection and cleaning activities. Mr. Evans noted that The Quarry HOA and CDD have implemented a program this year whereby 10% of the community's interconnects are inspected by video each year, with the result that 7-8 pipes are being cleaned out this year. It was agreed that each community will properly maintain its own interconnects, and will report annually to the HBUA and the other community the specifics of its own interconnect maintenance activities during the prior year. Swales & Berms: With respect to swales and berms, it was noted that our SMWS mainly includes berms, and that proper maintenance of berms consists primarily of period inspection for erosion and improper use of the berm area. Both communities indicated that such maintenance is being done. It was agreed that each community will properly maintain its own swales and berms, and will report annually to the HBUA and the other community the specifics of its own swale and berm maintenance activities during the prior year. Wetlands: With respect to wetlands, it was observed that most of the wetlands within our SWMS are owned by The Quarry HOA(although the SFWMD owns about 40 acres of wetlands within our SWMS). [Mr. Hubbard later questioned whether this was true, stating that the SFWMD property is north of our property line and outside of our berms which run along our north and northeast property line.] It was noted that the proper maintenance of wetlands 4 consists of inspecting for and removing exotic invasive vegetation, and that The Quarry HOA has retained a firm to perform such maintenance. It was further agreed that, in addition to sharing the various reports and information noted above, the members of this Joint Committee will meet annually in order to discuss Best Maintenance Practices, share their experience in maintaining their respective portions of the SWMS, and consider possible cost- saving measures. Finally, there was discussion of the funds now held by and continuing to be collected by the Umbrella Association, including the proper disposition of such funds. Mr. Osborn and Ms. Severance indicated that, subject to a vote by the UA Board, it was their view that, once a mutually acceptable agreement regarding maintenance of the SWMS had been concluded between the two communities, such UA funds should be expended for SWMS maintenance through disbursement to the operating entity in each community(in proportion to the collection of such funds from each community), subject to retention by the UA such amount as the UA might deem appropriate for joint reserves. On the subject of joint reserves, Mr. Hubbard was skeptical of the need for joint reserves, while Dr. Thomas favored joint reserves. Without resolving this matter, it was agreed that the UA itself should determine whether it believes that joint reserves are appropriate, and if so, should offer a specific proposal for consideration by both communities as to the amount, the need, the intended purpose and the terms for disbursal of any such joint reserves. Ms. Severance offered that another and separate committee should be formed to discuss and propose how to finalize this next step for the HBUA. Mr. Hubbard expressed the view that it was not up to this Committee to discuss and/or determine what the UA felt was a reasonable reserve to maintain, and that, once the UA had made such a determination, he would review the specifics in order to determine whether his CDD could support such determination. The meeting was adjourned at approximately 10:45 a.m. 5 Lake &WetlandAGEMENT MAN Heritage Bay Community Development District Custom lake management proposal May 5, 2016 • City of Fort Myers • Lee County • Florida Prepared for: Mr Justin Faircloth / Property Manager Severn Trent Services 5911 Country Lakes Drive Fort Myers, Florida 33905 r � `�t t3 a �'y tp--;• w 'k t Pi"•; ` ' ' ' 2'I Otr, 110 Prepared by: Gonzalo Ayres Lake and Wetland Management, Inc. Orlando-Tampa Fort Myers Office Port Charlotte Office 13721 Jetport Commerce Lane, Suite #5 24610 Sandhill Boulevard, Suite 204 Fort Myers, Florida 33913 Punta Gorda, Florida 3398 (239) 313 6947 Office . (239) 313-6950 Fax (941) 391 5387 Office• (941) 391-5018 Fax Orlando Office 4625 Old Winter Garden Road, Suite B4 Orlando, Florida 32811 (407) 985-4263 Office• (407) 985 4265 Fax westcoast@lakeandwetland.com •www.lakeandwetland.com l4 Lake &Wetland MANAGEMENT LAKE SERVICE AGREEMENT This Agreement is made between Lake and Wetland Management, Inc. Orlando- Tampa, and: May 5, 2016 Mr. Justin Faircloth Heritage Bay Community Development District c/o Severn Trent Services Justin.faircloth@stservices.com 5911 Country Lakes Drive (239) 245 7118 Office Fort Myers, Florida 33905 (239) 245-7120 Fax Both Heritage Bay C.D.D. (CUSTOMER) and Lake and Wetland Management (LWM) agree to these terms and conditions for Special Service Agreement: Description of Service A. Lake management service including algae, border grass, and invasive exotic plant control including submersed vegetation for twenty nine (29) lakes totaling approximately 55,054 linear feet. 1. LWM shall provide all supervision, labor, herbicide, equipment, materials and incidentals necessary for the maintenance treatment. 2. LWM will visit the site four (4) times monthly with treatments as necessary to control undesirable growth. A minimum of fifty two (52) visits will be performed annually (including quarterly aquatic consultations). 3. All Florida Exotic Pest Plant Council (FLEPPC) listed invasive exotic species will be treated in place with EPA-certified herbicides. No vegetation or algae will be removed from the waterway. 4. Native vegetation will be left for the benefit of fish and wildlife, unless otherwise requested. 5. Casual debris, defined as cups, plastic and other man-made materials, will be removed during scheduled service visits. Large or dumped items, coconuts, palm fronds and other landscape debris are not included. 6. A comprehensive management report will be submitted detailing work performed upon completion of each service visit, one hard copy to the Golf Course Superintendent, one electronic copy to Severn Trent. Lake and Wetland Management, Inc.Orlando-Tampa (239)313-6947 Office • (239) 313-6950 Fax • westcoast@lakeandwetland.com • www.lakeandwetland.com Lake Service Agreement Page2 7. Algae Control. Algae will be maintained to within the littoral shelf only. Any algae that expands beyond the littoral shelf will be chemically treated upon identification. Algae will be manually removed if chemical treatment fails. 8. Border grasses, vines and brush will not exceed 3%. 9. Quarterly water samples will be performed to test pH, temperature & Dissolved Oxygen for up to 5 sites. 10. Aquatic Consultation on a quarterly basis with staff. 11. Littoral Zones/ Plantings: A. Littorals behind residential homes will not exceed a maximum width of five (5) feet. Any littorals growing outside of this zone will be treated. B. Littorals along the golf course & common areas will be left in their natural state. C. No littorals will be left within the driving range portion of Lake 1 including the area with fountain. 12. Ground crew will manually pull weeds on each lake every month (12 times per year). All debris will be hauled off site. B. Lake management service (30A and 30B) including algae, border grass, submersed vegetation and invasive exotic plant control for one (1) lake and one (1) lake shore line (East bank of 30B) totaling 9,690 linear feet. *Price below includes additional Rip Rap wall. 1. LWM shall provide all supervision, labor, herbicide, equipment, materials and incidentals necessary for the maintenance treatment. * Treatments will include aggressive treatment of Pondweed growing up form bottom of lakes. 2. LWM will visit the site twice monthly with treatments as necessary to control undesirable growth. A minimum of twenty four (24) visits will be performed annually. 3. All Florida Exotic Pest Plant Council (FLEPPC) listed invasive exotic species will be treated in place with EPA-certified herbicides. No vegetation or algae will be removed from the waterway. 4. Native vegetation will be left for the benefit of fish and wildlife, unless otherwise requested. 5. Casual debris, defined as cups, plastic and other man-made materials, will be removed during scheduled service visits. Large or dumped items, coconuts, palm fronds and other landscape debris are not included. 6. A comprehensive service report will be submitted detailing work performed upon completion of each service visit. Lake and Wetland Management,Inc.Orlando-Tampa (239)313-6947 Office • (239)313-6950 Fax • westcoast@lakeandwetland.com • www.lakeandwetland.com Lake Service Agreement Page 3 Investment Schedule A. LWM agrees to perform the lake management service stated above on a monthly basis for the total sum of$4,449.55 monthly. B. LWM agrees to perform the lake management service (30A and 30B) stated above on a monthly basis for the total sum of$1,000.00 monthly. Conditions: 1. Ownership of properly is implied by CUSTOMER with acceptance of this Agreement. In the event that CUSTOMER does not expressly own the areas where the above stated services are to be provided, CUSTOMER represents that express permission of the owner is given and that authorization to commence the above mentioned services is allowed. In the event of dispute of ownership, CUSTOMER agrees to hold harmless LWM for the consequences of such services. 2. LWM shall not be responsible for acts beyond its reasonable control, including adverse soil and / or water conditions, adverse weather conditions, unavailable materials, Acts of God, war, acts of vandalism, theft or third party actions. CUSTOMER further states that neither party shall be responsible in damages or penalties for any failure or delay in performance of any of its obligations caused by above named incidences. 3. Invoices submitted for work completed shall be paid within 30 days of receipt. A finance charge of 1.500% per month or an annual percentage rate of 18.000% will be computed on all past due balances. 4. Any incidental activity not explicitly mentioned in this proposal is excluded from the scope of work. 5. This proposal shall be valid for 30 days. Either party may cancel this contract with 30-day written notice. This Agreement automatically renews upon anniversary of execution date, unless notice is given by either party with at least 30 days written notice. 6. If LWM is required to enroll in any third-party compliance programs, invoicing or payment plans that asses fees in order to perform work for CUSTOMER, those charges will be invoiced back to CUSTOMER as invoiced to LWM. 7. LWM will maintain insurance coverage, which includes but is not limited to; General Liability Property Damage, Automobile Liability, and Workman's Compensation at its own expense. 8. No alterations or modifications, oral or written, of the terms contained above shall be valid unless made in writing, and wholly accepted by authorized representatives of both LWM and the CUSTOMER. Customer acceptance — The above prices, specifications and conditions are hereby accepted. GonzaCo.byres Gonzalo Ayres Authorized si. _. re Date Lake and Wetland Management, Inc. Orlando-Tampa Heritage Bay C.,.D. Lake and Wetland Management, Inc.Orlando-Tampa (239)313-6947 Office • (239)313.6950 Fax • westcoast@lakeandwetland.com • www.lakeandwetland.com Subject: FW:Proposed Memorandum of Understanding, HBCDD and SFH1 Attachments: HB CDD -SFHCDD Memorandum.pdf From: Edwin B Hubbard [mailto:hubbsbuflo@hotmail.com] Sent:Sunday,April 24,2016 11:22 AM To:Tom and Anita Bava<tomb123@comcast.net> Cc:Faircloth,Justin<Justin.Faircloth@stservices.com>;Ed Hubbard<hubbsbuflo@hotmail.com> Subject:RE: Proposed Memorandum of Understanding,HBCDD and SFH1 Tom a few comments regarding your proposed memorandum. First of all,thanks for taking a good proactive approach to this. My Field Service Engineer and I drove behind all homes on LBC and EBC and I was amazed at the amount of plantings along the berm;installed by the Developer,I assume,as well as homeowners. It would not make sense at this point to have all of this removed as you and I discussed. My engineer and I feel we should leave everything as it is and restrict any new plantings.Removing the plantings would only damage the berm and hasten damage/erosion. You and I discussed'grandfathering'everything that is planted and have each home identified as to what is behind each home by lot or home number;otherwise there is no way to control new plantings.Please consider this. We agree that everything should remain in natural state but I would caution you that the CDD will not under any circumstances trim anything on the berm;it is designed to be in a"natural state"and this goes with the plantings as well. If the SFH1 wants to trim trees,bushes,etc then you can do so but not at our expense. And of course removal of trimmings is the responsibility of SFH1 as well.Any removal of any existing plantings must be reviewed with the CDD for approval to ensure there is no damage to the berm. Any plantings which the Developer perhaps planted(note the CDD has planted NO trees,etc)cannot be removed.Example;palm trees,cocoa berry bushes,etc Additionally,as with all berms in the community(and they do encircle all of HB),we do not maintain them in terms of irrigation. If your homeowners expect this area to be green,then it should be up to the SFH1 to irrigate as appropriate. It is a"natural"berm and will remain so. If there is damage to the berms due to natural causes,then the CDD would be responsible to maintain and/or fix. This does not mean brown grass as long as the berm's integrity is intact. Example;Gary Johnson home. This berm is intact but the grass is brown in a few spots at the top. If SFH1 feels that irrigation is warranted due to the homeowner's request,this should be at your expense. Please consider these comments in developing a proposed memorandum and let me know so that I can review at our May 5 meeting. Thanks,Ed Ed Hubbard 10263 Gator Bay Court Naples,FL 34120 (239)793-5468 (239)248-4497(c) 1. From:tomb123@comcast.net Subject: Proposed Memorandum of Understanding, HBCDD and SFH1 Date: Sat, 23 Apr 2016 15:03:50-0400 CC: heatherm@visiongolfmanagement.com To: hubbsbuflo@hotmail.com; Irbrodeur88@icloud.com;craig@thecurrans.ca The attachment is a proposed MOU between SFH and our CDD regarding the berm areas behind the homes on the west side of Lions Bay and Escambia. Below is the recent letter from the CDD,followed by the proposal, followed by the 2015 email sent to the affected owners. The plan is to provide the CDD with the MOU after our Tuesday SFH BOD meeting so it can discussed and approved at the May 5 CDD meeting. Please pass your comments back to me so I can edit the document as necessary in time for Tuesday's meeting. Thanks, Tom Bava Hi Tom I would appreciate you looking into this latest development of homeowners encroaching on CDD properties. During a recent review of all the CDD properties and lakes, conducted monthly by our CDD Field Service Engineer, issues were observed with the berm along the preserve property adjacent to Lions Bay Court. This berm was constructed by the Developer and represents a critical function in the entire Storm Water Management System at Heritage Bay and includes the drain swale in front of the berm as well. Behind the homes on Lions Bay Court damage was noted and consisted of dying grass that has been replanted and an area where it seems a planting has been removed and the soil is now exposed. Plantings were also noted on the top of the berm. While the planting of various plants may seem harmless, and in fact result in a more beautiful yard, we are faced with the dilemma of allowing some plantings and drawing the line on others. After a lengthy discussion at our Board of Supervisor meeting on March 3, it was determined that the best way to handle this issue going forward is to stop all plantings on CDD properties; specifically the berms and swale areas. Additionally, we ask that you inform Buttonwood not to install any plantings in this area. We must once again ask you to intervene with the homeowners along all preserve areas (Lions Bay Court and Escambia Bay Drive) and ask them to stop infringing on CDD properties as well as remove and/or replant these plantings on their specific property. Please call me and we can discuss this issue and how best to address it going forward. I have included specific pictures from our Field Service Engineer for your reference. 2 Thank you as always, Ed Edwin B Hubbard Chairman, Heritage Bay Community Development District ehubbard@heritagebaycdd.com (239) 793-5468 (H) (239) 248-4497 Begin forwarded message: From:Tom Bava<tomb 123@comcast.net> Subject:Yard waste disposal unto CDD/Quarry Preserve Date:May 19,2015 at 12:35:46 PM EDT To:Dean Jones<HDJ0727@bellsouth.net>,Tom Bohardt<tbohardt@yahoo.com>,D'Annunzio James<jdannunzio22Aaol.com>, Dame James&Sue<jsdameiii@msn.com>,Eggers Robert< Qbiniowa538 aol com>,Klein Jim<luannklein@gmail_com>, l landlos Ron&I lelen<ronandhelen456(rbhotmail.com>,Murray Joe<demec(a),btopenworld.com>,Jack Osborn <Jacktall @ hotmail.com>,snishford@comcast.net,Woods Alice Alice<awoeds@charter.net>,Whyte Elizabeth <lizwhyte012@btintemet.com>,Brisebois Deborah<debbrisebois@rogers.com>,Pete Krug<pikrug@cifii.com>,Gail David Reese&<gandarce@comcast_net>,Lee Rhonda Sleiter&<lrsbythebay@gmail.com>,Jeff Beres<jnb58(aol.com>,Pratscher Gary and Maureen<vegasgolf(a,aol.com>,Cohen Steve<srcohcn4@gmail.com>,Divgi Ajit&Arati<a tdivgi@gma l.com>, Brady Stephen&Cynthia<spc1b2@yahoo.com>,yahoo.com>,Rogers Mike<mrogers@randmrecycling.net>,Rogers Mike&Anna <rogers98400)yahoo.com>,Bizzarro Louis&JoAnn<bizzusmc@comcast.net>,Gloria O'Keefe<glokeefenu,roaers.com>,Van Senus Judy&Fred<judyvansenus c sbcglobal.net>,Gina Johnson<iciandgi@aol.com> Cc:Brodeur Dick&Linda<lrbrodeur88t aol.com>,Curran Craig<craig@thecurrans.ca>,Hubbard Ed/Lynn <hubbsbuflo@hotmail.com>,Kris Caldwell-Lanz<KrisL(avisiongolfmanagement.com> Owners: It has been brought to our attention by the Heritage Bay CDD management company that yard waste is being dumped into the preserve areas at the rear of some homes along Lions Bay Ct. and Escambia Bay Ct. I asked Buttonwood to review the areas and they claim that owners must be dumping palm fronds and other trimmings over the berm into the preserve. These areas are owned by and managed by The Quarry and any trimming,cutting, plantings or alterations in this area is not allowed;this includes the berm areas for which the Heritage Bay CDD has responsibility. This is an unacceptable practice and must stop immediately. To remedy the situation I've instructed Buttonwood to retrieve the debris and dispose of properly. They note that should owners trim fronds from bushes or trees on the berm,they should bring the trimmings to the edge of the road where Buttonwood will pick them up periodically during the week. If owners have any questions, please contact me at 239-234-5373 or Buttonwood at 239-353- 9891. Thanks for your cooperation. Tom Bava President-Single Family Homes I at Heritage Bay 3 DATE: MEMORANDUM OF UNDERSTANDING BETWEEN: THE HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT (CDD) AND SINGLE FAMILY HOMES I AT HERITAGE BAY HOA (SFH1). BACKGROUND: THE CDD HAS FILED TWO V TEN COMPLAINTS AGAINST SFH1 IN THE PAST E• DESCRIBING BREACHES OF CDD PO ICY RELA 0 VEGETATION ALONG THE BERM S D, ATING HERITAGE BAY AND THE PRESE • AREA OWN D AND MAINTAINED BY THE QUARR ' • THE SHF1 AREAS CITED WERE BEHIND HOME ' • : T EST SIDE OF LIONS BAY COURT AND ES► • BIA BA a URT. THE INITIAL COMPLAINT CIT ^`• SF 1 FOR • OWING OWNERS TO DUMP VEG' ' I•H PALM FRONDS, ETC.) INTO THE QUARRY PRESE ' ALONG LIONS BAY COURT, AND THE S •ND C• r, L• INT DESCRIBED THE EXISTENCE OF ' +• ED t .' ETATION (PALMS, SHRUBS, ETC.) ON TI = ONG BOTH STREETS. SFH1 BOAR•. IRE ICOR HAS INVESTIGATED BOTH COMPLAIN' A HAS KEN THE FOLLOWING CORREC • C ' • 1. NOTIFI • L 'NERS WHOSE PROPERTIES H ' RM AND PRESERVE TO CEASE •U G USE INTO THE PRESERVE. THIS AS H• DL D VIA EMAILS TO ALL OWNERS ONG HE BERM FOR THE ABOVE 2 STREETS. D h AY 19, 2015. 2. RE c STED OUR LANDSCAPING CONTRACTOR TO ' MOVE SUCH REFUSE FROM THE PRESERVE AREA. 3. NOTIFIED OUR LANDSCAPING CONTRACTOR TO CEASE ENGAGING WITH OWNERS REGARDING THE INSTALLATION OF PLANTINGS OUTSIDE OF OWNER'S PROPERTY LINES. 4. AUTHORIZED SFH1 TO ENGAGE IN AN AGREEMENT WITH THE CDD TO NOTIFY ALL AFFECTED PROPERTY OWNERS TIIAT; A. AS OF THE ABOVE DATE IT IS AGREED THAT SFH1 OWNERS OF PROPERTIES ABUTTING THE CDD BERM ALONG LIONS BAY COURT AND ESCAMBIA BAY COURT WILL CEASE INSTALLING VEGETATION ON THE BERM THAT SEPARATES HERITAGE BAY AND THE PRESERVE AREA. B. EXISTING VEGETATION CAN REMAIN, HOWEVER PALMS AND SHRUBS MUST REMAIN IN THEIR NATURAL STATE AND CANNOT BE TRIMMED OR PRUNED UNLESS PERMITTED OR PE ' ORMED BY THE CDD. 5. THE CDD WILL PROVIDE NOR ' L MAINTEi ;F„r"CE OF THE TURF ON THE BERMS THIS UNDERSTANDING IS ► :JE‘ 0 THE APPROVAL OF THE SFH1 to .RD 0 'ECTORS AND THE GOVERNING BOA : • OF .UPER ORS OF THE HERITAGE BAY COM 0'` EVELOPMENT DISTRICT. J f`' is 01 1€s1 t INSTR 52.63962 OR 5271 PG 2614 RECORDED 5!1012016 3:31 PM PAGES 14 DW{GHT E BROCK,CLERK OF THE CIRCUIT COURT This instrument wa.sprepmed COLLIER COUNTY FLORIDA without an opinion of tide and REC$120.50 after recording return to: Gregory L.Urbancic,Esq. Coleman,Yovanovich&Koester,P.A. 4001 Tamiami Trail North,Suite 300 Naples,Florida 34103 (239)435-3535 (space above this line for recording data) INTERLOCAL AGREEMENT RELATING TO SFWMD PERMIT REQUIREMENTS THIS INTERLOCAL AGREEMENT ihRELATIN``�� TO SFWMD PERMIT REQUIREMENTS(this"Agreement")is made this 5 day of �`�f , 2016, by and between HERITAGE BAY COMMUNITY DEVELOPMENT DIS'PRICT, an independent special district established pursuant to Chapter 190, Florida Statutes ("Heritage Bay") and QUARRY COMMUNITY DEVELOPMENT DISTRICT,an independent special district established pursuant to Chapter 190,Florida Statutes("Quarry"). Heritage Bay and Quarry are sometimes collectively referred to herein as the"Parties"and individually as a"Party". WITNESSETH: WHEREAS,Section 163.01,Florida Statutes,permits local governmental units to make the most efficient use of their powers by enabling them to cooperate with each other to provide services in a manner that will accord best with geographic, economic,population and other factors influencing the needs and development of local communities;and WHEREAS, each of the Parties is a local unit of special purpose government organized and existing in accordance with the Uniform Community Development District Act, Chapter 190, Florida Statutes, as amended, and established pursuant to ordinances of the Collier County Board of County Commissioners;and WHEREAS, the surface water management and drainage systems for both the Heritage Bay development and the Quarry development were constructed pursuant to Permit #11-02234-P-10 (the "SFWMVID Master Permit")issued by South Florida Water Management District("SFWMD")and various modifications to SFWMD Master Permit submitted through separate applications;and WHEREAS, on or about April 10,2008,based upon an application submitted by co-permittees Centex Homes and Lennar Homes, LLC, SFWMD approved Application Number 060928-16 (the "Approved SFWMD Application") as a modification to the SFWMD Master Permit. A copy of the original Approved SFWMD Application is attached hereto as Exhibit"A";and WHEREAS,as part of the conversion of the Approved SFWMD Application from the construction phase to the operation and maintenance phase,SWFMD advised that Heritage Bay and Quarry would need to be co-operating entities for the Approved SFWMD Application(as has been amended and/or modified); and Interlocal Agreement Relating to SFWMD Permit requirements Page I of7 WHEREAS,the Parties by this Agreement desire to delineate their responsibilities for operation and maintenance under the Approved SFWMD Application(as has been amended and/or modified); and WHEREAS,Heritage Bay shall be the entity responsible for the operation and maintenance of the surface water management system authorized by the Approved SFWMD Application within the real property owned by Heritage Bay and/or within Heritage Bay's jurisdictional boundaries;and WHEREAS, Quarry shall be the entity responsible for the operation and maintenance of the surface water management system authorized by the Approved SFWMD Application within the real property owned by Quarry and/or within Quarry's jurisdictional boundaries;and WHEREAS,the Parties have the authority to enter into Interlocal Agreements pursuant to Section 163.01,Florida Statutes to provide for the mutual benefit of each community development district. NOW,THEREFORE,in consideration of the sum of Ten and No/100 Dollars($10.00),the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by and between the Parties,the Parties agree as follows: 1. Recitals. The foregoing recitals are true and correct and are incorporated herein by this reference. 2. Purpose. The purpose of this Agreement is to set forth the relationships of the Parties with respect to the operation and maintenance responsibilities under the Approved SFWMD Application(as has been amended and/or modified). 3. Operation and Maintenance Obligations. (a) Heritage Bay Responsibility. Heritage Bay shall be solely responsible,at its sole cost and expense,for the following: (i)compliance with all requirements and obligations of Heritage Bay as a co-operating entity under the Approved SFWMD Application with respect to the real property owned by Heritage Bay and/or within Heritage Bay's jurisdictional boundaries;and(ii)any and all necessary or required maintenance,repair,and replacement of the surface water management system authorized by the Approved SFWMD Application with respect to the real property owned by Heritage Bay and/or within Heritage Bay's jurisdictional boundaries. (b) Quarry Responsibility. Quarry shall be solely responsible, at its sole cost and expense,for the following:(i)compliance with all requirements and obligations of Quarry as a co-operating entity under the Approved SFWMD Application with respect to the real property owned by Quarry and/or within Quarry's jurisdictional boundaries; and(ii) any and all necessary or required maintenance,repair, and replacement of the surface water management system authorized by the Approved SFWMD Application with respect to the real property owned by Quarry and/or within Quarry's jurisdictional boundaries. (c) General Standard of Maintenance. The surface water management system authorized by the Approved SFWMD Application shall be maintained,repaired,and/or replaced as required by the applicable Party designated above to keep the surface water management system in good operating condition as originally designed,permitted,and constructed and otherwise in a manner consistent with the present use and condition of the improvements as of the date hereof, which maintenance, repairs, and replacements shall be performed in accordance with all applicable governmental laws, codes, statutes, regulations,ordinances,permits and approvals. Interlocal Agreement Relating to SFWMD Permit requirements Page 2 of 7 (d) Other Party's Breach. Notwithstanding anything to the contrary in this Agreement and for purposes of clarifying the obligations of the Parties,to the extent any maintenance or repair of the surface water management system authorized by the Approved SFWMD Application results from the breach by any Party of any of said Party's obligations contained herein,said breaching Party shall be solely responsible for all the costs and expenses incurred in such maintenance or repair or other restoration to the surface water management system which may be required. 4. Books and Records;Budget. Each Party responsible hereunder for maintenance,repair,or replacement of any facility described herein shall keep complete,accurate,and reasonably detailed books and records of each and every item of cost and expense paid or incurred for maintenance of the applicable facilities that are the subject of this Agreement. Each Party shall make such books and records available at reasonable times, upon prior written notice during normal business hours for inspection, review, and copying by each other Party and its designated representatives,including accountants and attorneys. Each Party shall keep and maintain all such books and records for a period of at least four(4)years from the end of the year to which they apply,or such longer period as otherwise required pursuant to Florida law. The Parties hereto recognize that under their respective legal powers, the Parties are unable to obligate themselves legally to spend funds in excess of one(1)budget year. However,the Parties do hereby bind themselves to use their best efforts to fully perform pursuant to the terms and conditions of this Agreement as they may be able to under the laws of the State of Florida and to appropriate funds necessary for such performance,subject to such budgetary constraints. 5. Notices. Any notice,request,demand,instruction,or other communication to be given to any party hereunder shall be in writing and either hand delivered,delivered by overnight courier,sent by first class mail,postage prepaid,sent electronically via email,or sent via facsimile transmittal. Any notice demand,request,or other communication shall be deemed to be given upon actual receipt in the case of hand delivery,delivery by overnight courier,email,or facsimile transmittal,or three(3)business days after depositing the same in a letter box or by other means placed within the possession of the United States Postal Service,properly addressed to the party in accordance with the foregoing and with the proper amount of postage affixed thereto. Notices shall be addressed to the principal office of the intended recipient(as maintained with the State of Florida),with a copy to such recipient's registered agent. 6. Permit Modifications. No Party shall submit any application to any agency or governmental body to modify,alter,or amend the Approved SFWMD Application without first submitting a copy of any proposed amendment to all other Parties not less than sixty(60) days prior to submittal to any governmental agency. 7. Governing Law/Venue. This Agreement shall be construed in accordance with Florida law. Venue and jurisdiction for any action arising hereunder shall lie exclusively in the Florida state court of appropriate jurisdiction in Collier County,Florida. 8. Disputes/Enforcement. All disputes under this Agreement shall be governed in accordance with the requirements of Chapter 164,Florida Statutes. In the event that either party seeks to enforce this Agreement by court proceedings or otherwise,then the prevailing party shall be entitled to recover all fees and costs incurred,including reasonable attorneys'fees and costs for trial,alternative dispute resolution or appellate proceedings. 9. Prevailing Party. The prevailing party in any litigation arising out of this Agreement shall be entitled to recover from the non-prevailing party all attorneys'fees,paralegal fees,and costs incurred in connection with such litigation,whether pre-trial,at trial,in arbitration,on appeal,or otherwise. Interlocal Agreement Relating to SFWMD Permit requirements Page 3 of 7 10. Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstances shall,to any extent,be declared invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable,such term or provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable,and the validity and enforceability of all other provisions of this Agreement and all other applications of any such term or provision shall not be affected thereby,and each tenn and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 11. Assignment. This Agreement may not be assigned by any Party,whether in whole or in part, to other party without the express written consent of the non-assigning Party,which consent may be withheld in their sole and absolute discretion. Any purported assignment in contravention of this Section shall,at the sole option of the non-assigning Party,be deemed null and void and of no force or effect. 12. Modifications. This Agreement may not be modified in any respect whatsoever or rescinded,in whole or in part, except by written instrument duly executed, acknowledged by the Parties and recorded in the Public Records of Collier County,Florida. 13. Binding Effect. This Agreement shall be binding upon the Parties, their successors and assigns. 14. Severability. In the event any term or provision of this Agreement is determined by appropriate judicial authority to be illegal or otherwise invalid,such provision shall be construed or deleted as such authority determines,and the remainder of this Agreement shall be construed to be in full force and effect. 15. Integration. This Agreement embodies the entire understanding of the Parties with respect to the subject matter contemplated herein, and the terms hereof control over and supersede all prior and contemporaneous understandings pertaining to the subject matter hereof. 16. Interpretation. This Agreement has been negotiated fully among,by and between the Parties as an arms'length transaction. All Parties participated fully in the preparation of this Agreement. In the case of a dispute concerning the interpretation of any provision of this Agreement,all Parties are deemed to have drafted,chosen, and selected the language, and the doubtful language will not be interpreted or construed against any Party. 17. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any Party whose signature appears thereon and all of which shall together constitute one and the same instrument. 18, Recording. This Agreement and any permitted assignments and modifications hereof shall be recorded in the Public Records of Collier County,Florida. 19. Effective Date. This Agreement and the rights conferred herein shall become effective upon filing with the Clerk of the Circuit Court of Collier County, Florida, in accordance with the requirements of Chapter 163.01(11),Florida Statutes,which date shall be set forth in the first paragraph of this Agreement at the time of recording. (Remainder of Page Intentionally Left Blank-Signatures Begin on Next Page) Interlocal Agreement Relating to SFWMD Permit requirements Page 4 of 7 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above. HERITAGE BAY: HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT, an independent special district established pursuant to Chapter 190,Florida Statutes ATTE By: � t �. Name: Secretary/Assist -'yC p/' k Title: STATE OF FLORIDA ) )ss. COUNTY OF COLLIER ) The for-_•oing instru ent was ac inowledged before rrf this . day of of H RITAGE BAY 2016 by ., .'.1.. tVi4Ei."- ,as p � COMMUNITY DEVELOPMENT DISTRICT, an independent special district established pursuant to Chapter 190, Florida Statutes, who evidence ersonally known to me or ( ) has produced of identification. i_,;,..", _•!...2: (SEAL) N• 'Y P BLIC e:_ (Typ r rin) My Commission Expires: 4:g%;Justin T. Faircloth =. '&' ��g„= COMMISSION # FF190261 ��'' 19 ":\`�. WExWW.AARONNOTARY.PIRES:January 15, COM Signatures continue on the following page. Interlocal Agreement Relating to S WMD Permit requirements EXHIBIT"A" Application Number 060928-16 Interlocal Agreement Relating to SFWMD Permit requirements Page 7 of 7 - RM��c alr"' " SOUTH FLORIDA WATER MANAGEMENT DISTRICT O w,;. • 4 'b y�y P;,`,,t, LOMR WEST COAST REGIONAL SERVICE CENTER 2301 McGregor Boulevard,Fort Myers,FL 33901 '10s,''i; y,10 (239)338-2929 • FL WATS 1-800-248-1201 • Suttcom 748-2929 • Fax(239)338-2936 • wwwsfwmd.gov/lwc/ Environmental Resource Regulation Application No.: 060928-16 May 22,2008 CENTEX HOMES LENNAR HOMES L.L.C. 5801 PELICAN BAY BLVD,STE 600 • 4415 METRO PARKWAY SUITE 216 NAPLES, FL 34108 FORT MYERS,FL 33916 Dear Permittee: SUBJECT: PERMIT NO.:11-02234-P Project : HERITAGE BAY- RECREATIONAL LAKE CROSS SECTIONS Location: Collier County, S13,14,23,24/T48S/R26E District staff has reviewed the information submitted May 9, 2008,for the proposed additional optional cross-section (Option 3 of Section D-D)illustrating the interface between the recreational deep lake and residential single family lot. The proposed modification with associated details are illustrated on plans sheet 1,7 and 8 signed and sealed by David S.Wilkison, P.E. from WilsonMiller, Inc on September 27, 2006. No modifications other than those specified herein are authorized by this letter. Based on that information, District staff has determined that the proposed activities are in compliance with the original surface water management Permit and appropriate provisions of FAC Rule 40E-4.331(2)(b). Therefore,these changes have been recorded in our files. Please understand that your permit remains subject to the Standard Limiting Conditions and all other Special Conditions not modified and as originally issued. Should you have any questions oncerning this matter,please contact this office. Sincer/elyf j i William Foley,P.E. Sr Supv Engineer Collier County Service Center WF/ps c: Collier County Engineer Wilsonmiller,Inc. ,/. , ,, RIOT HEADQUARTERS; 3301 Gun Club Road,P.O.Box 24680,West Palm Beach,FL 334164680 • (561)686-8800 • FL WAIS 1-800-432-2045 NOTICE OF RIGHTS As required by Sections 120.569(1), and 120.60(3), Fla. Stat.,following is notice of the opportunities which may be available for administrative hearing or judicial review when the substantial interests of a party are determined by an agency. Please note that this Notice of Rights is not intended to provide legal advice. Not all the legal proceedings detailed below may be an applicable or appropriate remedy.You may wish to consult an attorney regarding your legal rights. RIGHT TO REQUEST ADMINISTRATIVE HEARING A person whose substantial interests are or may be affected by the South Florida Water Management District's (SFWMD or District) action has the right to request an administrative hearing on that action pursuant to Sections 120.569 and 120.57, Fla, Stat. Persons seeking a hearing on a District decision which does or may determine their substantial interests shall file a petition for hearing with the District Clerk within 21 days of receipt of written notice of the decision, unless one of the following shorter time periods apply: 1) within 14 days of the notice of consolidated intent to grant or deny concurrently reviewed applications for environmental resource permits and use of sovereign submerged lands pursuant to Section 373.427, Fla. Stat.; or 2) within 14 days of service of an Administrative Order pursuant to Subsection 373.119(1), Ha. Stat. "Receipt of written notice of agency decision" means receipt of either written notice through mail, or electronic mail, or posting that the District has or intends to take final agency action, or publication of notice that the District has or intends to take final agency action. Any person who receives written notice of a SFWMD decision and fails to file a written request for hearing within the timeframe described above waives the right to request a hearing on that decision. Filing Instructions The Petition must be filed with the Office of the District Clerk of the SFWMD, Filings with the District Clerk may be made by mail, hand-delivery or facsimile, Filings by e-mail will not be accepted. Any person wishing to receive a clerked copy with the date and time stamped must provide an additional copy. A petition for administrative hearing is deemed filed upon receipt during normal business hours by the District Clerk at SFWMD headquarters in West Palm Beach, Florida. Any document received by the office of the SFWMD Clerk after 5:00 p.m. shall be filed as of 8:00 a.m. on the next regular business day. Additional filing instructions are as follows: • Filings by mail must be addressed to the Office of the SFWMD Clerk, P.O. Box 24680,West Palm Beach, Florida 33416. • Filings by hand-delivery must be delivered to the Office of the SFWMD Clerk. Delivery of a petition to the SFWMD's security desk does not constitute filing. To ensure proper filing, it will be necessary to request the SFWMD's security officer to contact the Clerk's office. An employee of the SFWMD's Clerk's office will receive and file the petition. • Filings by facsimile must be transmitted to the SFWMD Clerk's Office at(561)682-6010. Pursuant to Subsections 28-106.104(7), (8) and (9), Fla. Admin. Code, a party who files a document by facsimile represents that the original physically signed document will be retained by that party for the duration of that proceeding and of any subsequent appeal or subsequent proceeding in that cause. Any party who elects to file any document by facsimile shall be responsible for any delay, disruption, or interruption of the electronic signals and accepts the full risk that the document may not be properly filed with the clerk as a result. The filing date for a document filed by facsimile shall be the date the SFWMD Clerk receives the complete document. Initiation of an Administrative Hearing Pursuant to Rules 28-106.201 and 28-106.301, Fla. Admin. Code, initiation of an administrative hearing shall be made by written petition to the SFWMD in legible form and on 8 and 112 by 11 inch white paper. All petitions shall contain: 1. Identification of the action being contested, including the permit number, application number, District file number or any other SFWMD identification number, if known. 2. The name,address and telephone number of the petitioner and petitioner's representative,if any. 3. An explanation of how the petitioner's substantial interests will be affected by the agency determination. 4. A statement of when and how the petitioner received notice of the SFWMD's decision. 5. A statement of all disputed issues of material fact. If there are none,the petition must so indicate. 6. A concise statement of the ultimate facts alleged, including the specific facts the petitioner contends warrant reversal or modification of the SFWMD's proposed action. 7. A statement of the specific rules or statutes the petitioner contends require reversal or modification of the SFWMD's proposed action. 8. If disputed issues of material fact exist,the statement must also include an explanation of how the alleged facts relate to the specific rules or statutes. 9. A statement of the relief sought by the petitioner,stating precisely the action the petitioner wishes the SFWMD to take with respect to the SFWMD's proposed action. A person may file a request for an extension of time for filing a petition. The SFWMD may,for good cause, grant the request. Requests for extension of time must be filed with the SFWMD prior to the deadline for filing a petition for hearing. Such requests for extension shall contain a certificate that the moving party has consulted with all other parties concerning the extension and that the SFWMD and any other parties agree to or oppose the extension.A timely request for extension of time shall toll the running of the time period for filing a petition until the request is acted upon. If the District's Governing Board takes action with substantially different impacts on water resources from the notice of intended agency decision, the persons who may be substantially affected shall have an additional point of entry pursuant to Rule 28-106.111,Fla. Admin.Code,unless otherwise provided by law. Mediation The procedures for pursuing mediation are set forth in Section 120.573, Fla. Stat., and Rules 28-106.111 and 28-106.401-,405, Fla. Admin. Code, The SFWMD is not proposing mediation for this agency action under Section 120.573, Fla. Stat.,at this time. RIGHT TO SEEK JUDICIAL REVIEW Pursuant to Sections 120.60(3)and 120.68, Fla.Stat.,a party who is adversely affected by final SFWMD action may seek judicial review of the SFWMD's final decision by filing a notice of appeal pursuant to Florida Rule of Appellate Procedure 9.110 In the Fourth District Court of Appeal or in the appellate district where a party resides and filing a second copy of the notice with the SFWMD Clerk within 30 days of rendering of the final SFWMD action. 44 AI ii 61 a,. , %,3 3 J I 10 p - s as .. I i423133344` �6 -TT 11- r ,„ , _____ ,,, dq, W W 7 rj i}" 1 1 �� $ a a O WOe r) M 1 Al W LL 0 '°� - Z— S 0 Y. ft • P i < g 8 -- )_ d ° " , i i t_ 1 t.–...,'• lat.1 zli cc r- — goil ° 0 g Co) i 4 lU W ° o J 11- I • � �IIIIII�, k 1 7 it i ri IMPECHIS co W 6 c•I mai ,p i 11.9d111111W ! I i Q M iNiiEUUOD u) I U I ims o i�. LL i . l il; .ten _ i1= .1.0 ., 0, i piil ippiggs aagaT!!!! pi g :sea's$ rvim1i,5!!:!!5ee; w y �;ta• 4^eY 0W1tx � ,..°°'',01, oxi Aii a3 11: apes;:qili4 Z F.3 I.S2 `.9r.V 'Wb e4T:1 3 Y.. �FVgja h"$: ° -`- t °t 3;�ww t f 'S gg< Eiti �i Q i '''x Vii0 i :4 ;' to °�z e�'. l 3.. Q., ( 1111111 'i iY °° z a r a i a 1W — ;� 9 ; ie. I 5 11 1 / ,, gg 1 ri,,, 1 Io til!I/1 \ 4 'ri 1 \ '' ii 'l !a iliu I k4k ' :,4j!1 P o I II r ,itt ,-, L 6r, NI q IV ,II ; i w 1 ri:,jjai, unr ! ! 0 Irl lttl�l ;t > y !4 � ' } 'o'�rrr ? ' 15 = rg r(c 3r 1 '1, W t r q { 1I iIJ C • NT I � @t hi'\.11111 � t �� 13�1,t Y i Ott i ]1 / , fop.w i• { I J.7 r� 1 a lip, r 'hr Ipsai .4 t Ii 9 IT t� • l tea 1 w y ' IP i1 ' rrt :fitj/ii lii y - $r �r / $ I d 1111 ifil III � i r •ltl� „ 5 gr Q , a j + a ilf _ It \hrill a 1 II - ` x!{ ! I 11 od d '� i� ,;i gg{{ 1tip,Edd gli"-e • i1/9 1 1; �t r it i_, {ell Jai P °r!' a — is I I ,c1: ki _. f'II! „_ .[fajai ! fr l _ rt ti i ✓ U.1 Cl Q GN o c I- I) LL)a - O0)co v a LI) .S7 t e H !— C9 d r. (i' L0 0 . Q c9 a, O H It 4t d 1 . . At z W .6 O z 5 v a) 5 _ Z a Oa) co 4y — m Q a) cl ct) A-, od d; O N w ,Z, ..,. O 0 0 0 O O 0 O r Q. L ro C<� a) in a� a) �-� . aa) a) E as �`• -CS F4 p., Z Q- L Q DATE: 04/12/2016 Copeland Southern Enterprises,Inc. OWNER INFORMATION: PROFESSIONAL SERVICES AGREEMENT BETWEEN COPELAND SOUTHERN ENTERPRISES,INC.AND TELEPHONE NO.: (239)245-7118/306 Fax No: (239)245-7120 Heritage Bay Community Development District in Naples E-MAIL:Justin.Faircloth@stservices.com, OWNER INFORMATION: PROJECT MANAGER:Scott Copeland OWNER'S ADDRESS: 10154 Heritage Bay Blvd,Naples,FL 34120 FEE AND TYPE: BILL TO THE ATTENTION OF:Justin Faircioth,Assistant District Manager Time&Materials based upon the Rate Schedule in effect at the time service is rendered. Estimated Fees: PROJECT NAME:Lake#12 Erosion Repair and Drainage Installation. WORK DESCRIPTION: Rebuild and Reinforce 2 x 15 ft Eroded areas on the West Not-To-Exceed Fixed Fee based upon the Rate bake bank with reclaimed material from Lake 12, Install 2 x 30 ft peaces of 6"ADS Schedule in effect at the time service is rendered: Drainage and 2 x 12"Catch Basins with a 2 way stub out for future hookups for Land owner.. REMARKS: 1)All guest and golfers will need to be notified by the board,of the repair Lump Sum Fixed Fee: $ 2.975.00 project on Lake 12, to stay clear of the cordon off area and equipment during the project.2) All Sprinkler heads and lines within the work area must be clearly marked Total Fees: $ 2,975.00 before construction begins 3) MOT will be setup along the edge of the work area for safety of the crews and guest during the project. Dear Justin Faircioth In Pursuant to your request, Copeland Southern Enterprises,Inc. is pleased to submit the following proposal for Lake#12 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 reclaimed material from Lake 12 bottom and back fill both 15 ft wide eroded areas, compact and install layered erosion blankets in lifts back to proposed slope grade. 3. Crews will install 1 new 12"x 12"Catch Basin at each of the 15 ft repair areas with a 2 ft stub out"Y"pipe capped off for future connections from home owners Gutters. 4. 6"ADS double wall pipe will be installed from 12"Catch Basin set on the back edge of 20 Lake Easement and run out for 3011+into Lake and anchored I ft below the low water line. 5. Crews will restore the lawns and slopes back to original condition,if the equipment crossing has caused any damage. 6. Work is estimated to take 3 days to complete. 7. 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 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. -.._ 5-5-16 Authorized Signature: tr Date: Typed Name&Title: Calvin Teague - District Manager Exhibit# 1 Erosion Repair and Drainage Installation Areas �ssm. sem, r P �'� Ver Exhibit#2 ADS Drainage installation and Proposed Slope Repairs 12"x 12"Catch Basin and 2 ft Stub out 15'wide repaired and re-enforced Slope area with Coconut Erosion Blanket 2 x 4"ADS Stub Outs 30 ft of x 6"ADS Piping Low Water .4141.1111 'ipe Anchors Copeland Southern Enterprises,Inc. 1668 Many Road North Fort Myers,FI,33903 CONTRACT CHANGE ORDER TO: {NAME} Heritage Bay Community Development District DATE: 5/25/2016 PROJECT NAME: Lake 12 Drainage and Coconut Erosion Repair PROJECT NUMBER: CHANGE ORDER NUMBER: 001 DESCRIPTION OF WORK: Extend 4" ADS Pipes from the CCD 20 ft Lake Easement 170 ft up to the existing 3 Homes and connect to existing Gutter Systems with hard fittings. ORIGINAL CONTRACT SUM: $2,975.00 NET CHANGES BY PREVIOUS CHANGE ORDERS: $ 0.00 CONTRACT SUM PRIOR TO THIS CHANGE ORDER: $2,975.00 AMOUNT OF THIS CHANGE ORDER: $2,175.00 NEW CONTRACT SUM INCLUDING THIS CHANGE ORDER: $ 5,150.00 We at Copeland Southern Enterprises hope this meets your approval and satisfies your requirements.If so please sign the contract change order 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. ACCEPTED BY:� i AUTHORIZED BY: -7 TITLE: 4'� 11,1— TITLE: pve DATE: 54 7/7 DATE: RECEIVED CORM SPRINGS,FL JUL 01 2016 SEVERN TRENT ENVIRONMENTAL SERVICES,INC. Mettauer , ` Environmental 19741 North River Rd.,Alva,FL 33920•(239)728-1814•www.MEenvironments.com Certified General Contractor CGC1523027•Commercial RUP Applicators:Natural Areas,Aquatic Areas,Right of Way April 25,2016 Attn:Justin Faircloth Severn Trent—North America 5911 Country Lakes Drive Fort Myers,FL 33905 Re:Heritage Bay CDD Lake 12 Erosion Areas The following pricing includes all labor,equipment,material,insurance,project coordination, private utility identification with owner representative,site protection&restoration for the purpose of restoring lake bank washouts and prevention. Option A: Repair Washouts&Add(2)Individual 12"Yard Drains w/Soft Bowl(6"-7"TOB)No Stone Washouts:Inhaul of clean fill,placement and grading of clean fill,6oz Geotextile toed in &anchored,coconut fiber&matching sod. 12"Yard Drains: 12"ADS Double Wall Yard Drain Pipe, 12"x12"Plastic(Nyloplast)Yard Drain Grate. Additional options/enhancements are available with yard drains such as,cast iron grates vs.plastic,grate hinges vs.flush mount,stone borders vs sod up to the grate. Soft Bowl: During the installation of the yard drain we will grade a soft bowl around the drain.This bowl will capture more water through the drain and reduce the amount of water traveling over the lake bank. OPTION A TOTAL PRICE$11,650.80 Option B: Repair Washouts&Add(2)Sets of Gutter Downspout Lake Connections:(2)Drains Per House(2)Houses per Trunk Line(2)Trunk Lines into Lake Washouts: Inhaul of clean fill,placement and grading of clean fill,6oz Geotextile toed in &anchored,coconut fiber&matching sod. Gutter Downspout Lake Connections:In between two houses we will install(1) 12"ADS double wall pipe. This pipe will extend into the lake past the low water level. At the other end of the pipe we will connect(2)gutter downspouts from each house into the trunk line. OPTION B TOTAL PRICE$19,746.30 Owners Representative Signature&Position Date Algs--: 6. Cisina Gleason, 'Went Date Mettauer Environmental Inc. Typical Yard Drain CONCEPT Drawing This drawing is for concept and discussion only, it is NOT to scale,spec,color and details may vary from site to site. 7 NYLOPLAST STANDARD 12" UGHT DUTY GRATE i /- i 2," --11419 'i1YA D DRAIN DETAIL N.T.S. M, ���11 iviettauer Environmental -.c� $ c✓ fl. r0 rt) 13 Q es \\) '-':''''..4::',:','; s Q 153 o 6:2: = 7. �N 6 44 ln �} .. g�• 3 O '� • a c IL Y r• . 1 4 \ . • •4,_ : • ,..,,,...,- .,,.,...„,, -,,, c .,..„...,.:,..,.. • 3 N7 13 Me i . .,Ja...: 7,1,,. . 't,..,:„. t:',--4" 0▪ 0 473- 7 • et N at j v: r Ci 1 a er +n C/ c Z r S+' N a f A Mettauer . V � ` Environmental 19741 North River Rd.,Alva,FL 33920•(239)728-1814•www.MEenvironments.com Certified General Contractor CGC1523027•Commercial RUP Applicators:Natural Areas,Aquatic Areas,Right of Way EXAMPLES:WASHOUT REPAIRS YARD DRAIN WITH BOWL&CAST IRON GRATE 2VxFa .. #"f.VW 4 s ice.°r4--,t4 ,- - „, -' A^* 4. '> '.‘;r?'- '� " �4 'w,Es tk33 t 1 ,`3,'x`^ {,'Y hr", ��'��„� � �,�;�. �'� �,.�t �,�, ?��4 ;. � Ave Maria Wash Out Repair: " ,'r=' „ ., This is a sample of a"bowl"style yard drain.This is used to capture res water runoff prior to flow going . ,- over the bank. This is an effective �� , `, method for extremely high runoff ,g_, ` -, ,,.,-,r,,,,,,,:„.�, area. The gradual berm in between '''''''''''''''9"''''' '''''''''''''''''''''' �� , the lake and the drain helps the '"lr•' water slow down before going over the shoreline and diverts most of _, . the water to the drain that is place y in from of the berm. The stone Y; ,$ , �� f s ,,, _ � ;V around the drain is good for •-.44);.0� i.':;° k k i �x v 4 keeping the landscaping crew from a ,i,i .-,ti,, ,, ,�, ,, .t mowing over the drain and blowing -''' � ` -� • - � ;3:�, • 4- ,--. all of the cut vegetation into and on top of the drain. It can be mowed or string trimmed around,the stone a ° can be sprayed and you can clearly • see if something is blocking the top _,---•A _ of the drain. Prior to laying the sod,we added a layer of 6oz Geotextile around the drain and toed in into the ground ,,,;,,,,,Fii,'-4, a ti., approximately 18"deep. The sod s*f will root into the geotcxtilc and the a ;'' `' �, water will be able to run through z x 4 F : x -.,:.,..,,--‘:...:4:47....,';:...i....,-,.„,,;,:,-,;. but mostly"over"the fabric 4.;,.,...-it,,,,,,,,,,,,,,,,�s��� '4s z 1�''�_ t iy r tY .,, 1' `,' without washing away the dirt as �� ,, 4 Y1 x easily. The bottom picture is 1, �"�-� 4, e;' another example of a drain " ., - r k ,k, 45 installation with a stone border, . � '' , 1 rfi h there is no bowl at this drain. �'. .�' •y tk „t-iai V q,. Sass s" Wr Environmental Services:Aquatic Vegetation Control-Areation--Water Features-Water Quality Testing-Sediment Removal-Erosion Repair-Native Planting 1 4 i TSI Disaster Recovery, LLC ESTIMATE 2...S,2•••=,-e' J� -, 1311 Indiana Aveune • Saint Cloud,FL 34769 Date Estimate# 4/25/2016 EST217-2 Name/Address Heritage Bay,CDD. Severn Trent Mgmt.Services 5911 County Lakes Drive Ft.Myers,FL 33905 Description Total Heritage Bay 7,400.00 Lake 12 Erosion Repairs Extend eight existing downspouts to four new collection boxes with four new drains running out into the lake Total $7,400.00 Phone#407-891-8005 Fax# 407-891-9005 info@tsidisaster.com Change Order 1311 Indiana Aveune Saint Cloud,FL 34769 Date Estimate# 4/25/2016 CO-217-3 Name/Address Heritage Bay,CDD. Severn Trent Mgmt.Services 15911 County Lakes Drive Ft.Myers,FL 33905 Description Total Heritage Bay -Lake 3QA - Change Order#2 Extend rip rap to create uniform appearance. Grade slope to install screening. 1,125.00 Install and compact100 TON of Screenings@$30.00 per TON 3,000.00 Install geo textile fabric with anchors. 3,375.00 Install 675 LF X 12'W X 18"DEEP of 6"to 12"rip rap @$175.00 per LF 118,125.00 info@tsidisaster.com Total Phone# Fax# $125,625.00 _407-891-9005_._,.____ I, ESTIMATE 1311 Indiana Avcunc Saint Cloud,FL 34769 Date Estimate# 4/15/2016 EST217CO-1 Name/Address Heritage Bay,CDD. Severn Trent Mgmt.Services 5911 County Lakes Drive FL Myers,FL 33905 Description Qty Rate Total Heritage Bay Change Order#1 Extend rip rap to create uniform appearance. Grade slope to install screening. 1 450.00 450.00 Install and compact 40 TON of Screenings@$30.00 per TON 40 30.00 1,200.00 Install 1 roll of geo textile fabric 300'X 12'with anchors. 1 1,350.00 1,350.00 Install 275 LF X I2'W X 18"DEEP of 6"to 12"rip rap @$175.00 per LF 275 175.00 48,125.00 info@tsidisaster.com Total $51,125.00 Phone# 407-891-8005 Fax# 407-891-9005 Heritage Bay Community Development District Financial Report March 31,2016 Prepared by SEVERN TRENT SERVICES HERITAGE BAY Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet-All Funds Page 1 Statement of Revenues,Expenditures and Changes in Fund Balance General Fund Pages 2-3 Debt Service Fund Page 4 SUPPORTING SCHEDULES Trend Report Pages 5-6 Non-Ad Valorem Special Assessments Page 7 Cash and Investment Report Page 8 Bank Reconciliation Page 9 Check Register and Invoices Pages 10-18 Heritage Bay Community Development District Financial Statements (Unaudited) March 31, 2016 HERITAGE BAY Community Development District Governmental Funds Balance Sheet March 31, 2016 SERIES 2014 GENERAL DEBT SERVICE ACCOUNT DESCRIPTION FUND FUND TOTAL ASSETS Cash-Checking Account $ 368,958 $ - $ 368,958 Due From Other Funds - 63,486 63,486 Investments: Money Market Account 24,177 - 24,177 Deferred Cost - 13,247 13,247 Reserve Fund - 599,680 599,680 Revenue Fund - 1,298,987 1,298,987 TOTAL ASSETS $ 393,135 $ 1,975,400 $ 2,368,535 LIABILITIES Accounts Payable $ 84,015 $ - $ 84,015 Due To Other Funds 63,486 - 63,486 TOTAL LIABILITIES 147,501 - 147,501 FUND BALANCES Restricted for: Debt Service - 1,975,400 1,975,400 Assigned to: Operating Reserves 60,124 - 60,124 Reserves-Erosion Control 14,687 - 14,687 Unassigned: 170,823 - 170,823 TOTAL FUND BALANCES $ 245,634 $ 1,975,400 $ 2,221,034 TOTAL LIABILITIES&FUND BALANCES $ 393,135 $ 1,975,400 $ 2,368,535 Report Date:4/13/2016 Page 1 HERITAGE BAY Community Development District General Fund Statement of Revenues,Expenditures and Changes in Fund Balances For the Period Ending March 31,2016 ANNUAL ADOPTED YTD YTD VARIANCE($) MAR-16 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL REVENUES Interest-Investments $ 500 $ 248 $ 189 $ (59) $ 114 Special Assmnts-Tax Collector 250,000 248,000 248,036 36 9,594 Special Assmnts-Wall Project 62,500 62,500 62,500 - - Special Assmnts-Reserves 31,250 31,250 31,250 - - Special Assmnts-Discounts (13,750) (13,750) (12,767) 983 (18) Other Miscellaneous Revenues - - 11,000 11,000 - TOTAL REVENUES 330,500 328,248 340,208 11,960 9,690 EXPENDITURES Administration P/R-Board of Supervisors 8,000 5,000 5,000 - 1,000 FICA Taxes 612 383 383 - 77 ProfServ-Engineering 14,000 7,100 1,613 5,487 - ProfServ-Legal Services 5,000 2,800 2,763 37 - ProfServ-Mgmt Consulting Sery 39,394 19,697 19,697 - 3,283 ProfServ-Property Appraiser 5,156 5,156 - 5,156 - ProfServ-Special Assessment 5,150 5,150 5,150 - - ProfServ-Web Site Maintenance 750 474 281 193 33 Auditing Services 3,600 1,500 - 1,500 - Postage and Freight 1,300 650 501 149 6 Insurance-General Liability 13,000 13,000 14,348 (1,348) - Printing and Binding 1,000 575 560 15 114 Legal Advertising 1,200 1,200 2,041 (841) - Misc-Bank Charges 750 372 83 289 - Misc-Assessmnt Collection Cost 6,876 6,835 6,604 231 192 Office Supplies 550 274 33 241 - Annual District Filing Fee 175 175 175 - - Total Administration 106,513 70,341 59,232 11,109 4,705 Field ProfServ-Field Management 12,360 6,180 6,180 - 1,030 R&M-Contingency 2,000 1,000 - 1,000 Wall Improvements 218,500 109,240 93,623 15,617 79,549 Total Field 232,860 116,420 99,803 16,617 80,579 Report Date:4/13/2016 Page 2 HERITAGE BAY Community Development District General Fund Statement of Revenues,Expenditures and Changes in Fund Balances For the Period Ending March 31,2016 ANNUAL ADOPTED YTD YTD VARIANCE($) MAR-16 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL Lakes and Ponds Contracts-Lake and Wetland 60,744 30,372 30,372 - 5,062 R&M-Aquascaping 5,000 2,500 - 2,500 - R&M-Lake Erosion 35,000 17,500 369 17,131 - R&M-Contingency 5,000 2,500 - 2,500 - Impr-Miscellaneous 2,000 1,000 - 1,000 - Reserve-Lakes 31,250 31,250 - 31,250 - Total Lakes and Ponds 138,994 85,122 30,741 54,381 5,062 Debt Service Operating Loan Repayment 33,333 8,334 - 8,334 - Interest Expense-Note 6,670 1,756 68 1,688 11 Cost of Issuance - - 3,538 (3,538) - Total Debt Service 40,003 10,090 3,606 6,484 11 TOTAL EXPENDITURES 518,370 281,973 193,382 88,591 90,357 Excess(deficiency)of revenues Over(under)expenditures (187,870) 46,275 146,826 100,551 (80,667) OTHER FINANCING SOURCES(USES) Loan/Note Proceeds - - 3,538 3,538 - Contribution to(Use of)Fund Balance (187,870) - - - - TOTAL FINANCING SOURCES(USES) (187,870) - 3,538 3,538 - Net change in fund balance $ (187,870) $ 46,275 $ 150,364 $ 104,089 $ (80,667) FUND BALANCE,BEGINNING(OCT 1,2015) 95,270 95,270 95,270 FUND BALANCE,ENDING $ (92,600) $ 141,545 $ 245,634 Report Date:4/13/2016 Page 3 HERITAGE BAY Community Development District Series 2014 Debt Service Fund Statement of Revenues,Expenditures and Changes in Fund Balances For the Period Ending March 31,2016 ANNUAL ADOPTED YTD YTD VARIANCE($) MAR-16 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL REVENUES Interest-Investments $ - $ - $ 38 $ 38 $ 9 Special Assmnts-Tax Collector 1,308,564 1,290,000 1,291,408 1,408 36,092 Special Assmnts-Discounts (52,343) (52,343) (48,029) 4,314 (66) TOTAL REVENUES 1,256,221 1,237,657 1,243,417 5,760 36,035 EXPENDITURES Administration ProfServ-Arbitrage Rebate 600 - - - - ProfServ-Property Appraiser 19,628 - - - - ProfServ-Trustee Fees 6,815 - - - - Misc-Assessmnt Collection Cost 26,171 25,800 24,844 956 721 Total Administration 53,214 25,800 24,844 956 721 Debt Service Principal Debt Retirement 545,000 - - - - Interest Expense 654,360 327,180 327,180 - - Total Debt Service 1,199,360 327,180 327,180 - - 'TOTAL EXPENDITURES 1,252,574 352,980 352,024 956 721 Excess(deficiency)of revenues Over(under)expenditures 3,647 884,677 891,393 6,716 35,314 OTHER FINANCING SOURCES(USES) Contribution to(Use of)Fund Balance 3,647 - - - - TOTAL FINANCING SOURCES(USES) 3,647 - - - .. Net change in fund balance $ 3,647 $ 884,677 $ 891,393 $ 6,716 $ 35,314 FUND BALANCE,BEGINNING(OCT 1,2015) 1,084,007 1,084,007 1,084,007 FUND BALANCE,ENDING $1,087,654 $1,968,684 $1,975,400 Report Date:4/13/2016 Page 4 Heritage Bay Community Development District Supporting Schedules March 31, 2016 a C — c0000cne eeo eeo eeee geeeeea e o $ e — mo o 88388 2 838 8 - 88 � fR8 8 8 4 G m RI m a', en88en ' 3 segs tg2ER888882828 8888 a $e vrer - e U' cm it to c J 9 58 §. �gd 82, 38 r24532A83W38 � o n eg 0;,I ref aa, Cr s- � 9 Ct 73 4.o 9 Oo p ee 8 G p ni Ld N , • N 8 2 O� N E ^ ' § N ' O O o A 3 ` ef 11, co' W O t z w 2 ,n oc8 ootir, mom = ., gytte - - Ln totc, a 9 CCI m CZ AR a' C 3 m a p, v a e {� 2 � 2 " m • 28 . `& ' 2 8 �eo CI N al "' CO ch c t I v .�, ,o r, a • C CO ot etae e 8 2 . 8 8 2 . m ' 2 e co en WI 0 4 v - �' M r n of CD N cri c m' to Y C " f3 :1• 2" ' 28 ' 8 2 ' 8 8 m a c -0 gm9 ri n coL N LL a b N b O N O'' 8 "' rn n, ^ . 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N m o 0 N I g re ev rw ,.-, c 4 d CD To o oi Lo on � m �I' U — • m m m �3 $ N & a C, - n b C O A7 m 6 O o " d N CL O . d T ''1 LL nl Q a7 3 g 8'z Z rg a & e03 o 1 m f 9 - .aa flHIIP $ s8w JjJj. mm JIIP u aaLLW z cc O 2 0 HERITAGE BAY Community Development District Non-Ad Valorem Special Assessments-Collier County Tax Collector (Monthly Collection Distributions) For the Fiscal Year Ending September 30,2018 ALLOCATION BY FUND Discount/ Gross Debt Date Net Amount (Penalties) Collection Amount Tax Wall Reserve Service Received Received Amount Costs Received Collector Project Assmnts Fund Assessments Levied $ 1,652,314 $ 250,000 $ 62,500 $ 31,250 $ 1,308,564 Allocation% 100% 15% 4% 2% 79% 10/27/15 $ 16,299 $ 928 $ 333 $ 17,560 $ 2,634 $ 702 $ 351 $ 13,872 11/16/15 238,010 10,120 4,857 252,987 37,948 10,119 5,060 199,860 11/30/15 661,971 28,089 13,510 703,570 105,536 28,143 14,071 555,820 12/14/15 397,892 16,684 8,120 422,696 63,404 16,908 8,454 333,930 12/31/15 86,083 2,788 1,757 90,628 13,594 3,625 1,813 71,596 01/29/16 61,832 1,618 1,262 64,712 9,707 2,588 1,294 51,122 02/29/16 34,171 487 697 35,356 5,619 414 207 29,116 03/31/16 44,690 83 912 45,686 9,594 - - 36,092 TOTAL $ 1,540,949 $ 60,797 $ 31,448 $ 1,633,194 $ 248,036 $ 82,500 $ 31,250 $ 1,291,408 %COLLECTED 99% 99% 100% 100% 99% TOTAL OUTSTANDING $ 19,120 $ 1,964 $ (0) $ (0) $ 17,156 Report Date:4/14/2016 Page 7 HERITAGE BAY Community Development District Cash and Investment Balances March 31,2016 ACCOUNT NAME BANK NAME MATURITY YIELD BALANCE GENERAL FUND Operating Checking CNL N/A 0.00% $ 368,958 (2) Money Market Account Stonegate Bank N/A 0.25% 24,177 Subtotal General Fund 393,135 DEBT SERVICE FUND Series 2014 Deferred Cost Fund US Bank N/A 0.05% 13,247 Series 2014 Reserve Fund US Bank N/A 0.05% 599,680 Series 2014 Revenue Fund US Bank N/A 0.05% 1,298,987 Subtotal Debt Service 1,911,914 (1) Total $ 2,305,049 Note 1 Invested in First American Obligation Fund Note 2 $63,485.81 transferred to US Bank Revenue Fund 4/8/16 $100,000.00 transferred to Stongate MMA 4/8/16 Report Date:4/13/2016 Page 8 Heritage Bay CDD Bank Reconciliation Bank Account No. 9727 CNL Bank-GF Statement No. 03-16 Statement Date 3/31/2016 G/L Balance(LC11 368,958.21 Statement Balance 368,958.21 G/L Balance 368,958 21 Outstanding Deposits 0.00 Positive Adjustments 0.00 Subtotal 368,958.21 Subtotal 368,958.21 Outstanding Checks 0.00 Negative Adjustments 0.00 Differences 0.00 Ending G/L Balance 368,958.21 Ending Balance 368,958.21 Difference 0.00 Posting Document Document Cleared Date Type No. Description Amount Amount Difference • Page 9 IIIINI p p 8 p p p p a) O MOM N covi ' O c; csi S $ v In 8 2 N O g M M ((pp b co CO co N M 1.-- E O N c'1 U) CO I- CO CO (A 69 CO CO CO O E N O co N N y. �O up' M. a f� m - . yNy N O fA . cN E 6MH Lfl 64 6H fA 0) vs fA LA y _ a) LT a 0 0 It 0 0 0 0 0 0 0 r` 0 0 0 0 a 0 0 0 0 0 0 0 �p C tV CO M CO M CO 0) Cr; co co A v v 1. 0) N CO o CO M M l) Ln u� in it) in 1� co v) U) F� Ln Ln 1� o Ln in 0 in ti N 0 8 8 8 g 8 8 8 0 8 g A 8 uluN. 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S 2073 Ides tie Palma Cr. toy , Pect Invoicete Naples,FL 34f IS US <' (239)30 -020t? i :- �'�rr l.�, inforOirrlgatirsnspeciallstsuse.twm „�' � ..1( Heritage Bay cio Severn Trent Services 210 N, University Drive Suite 702 Coral Springs,Ft 33071 USA 8359 02/02/2016 $1,670.00 03/03/2016 Labor and Materials to conduct the following work;locate and cap irrigat on lateral 1,670.00 Ines in areas before they enter into the constriction zone while maintaining irrigation in areas outside the construction zone. The lateral lines will remain in lilace however will be severed from any charged Tines The value shown on the ne item to the right;s a'root to exceed amount`,,if we come In under that value, the price will be reduced BALANCE CUE $1,670.00 RECOMMEND FOR APPROVAL Charge Account#: lrrf��.►> - Current Balance: $/,,, c^�p ‹.,r)r) Remaining Balance: https://connect.intuit.con/portal/module/pdfDoc/template/printframe.html 216 Coleman,Yovanovich&Koester, P.A. Northern Trust Bank Building 4001 Tamiami Trail North,Suite 300 Naples,Florida 34103-3556 Telephone: (239)435-3535 Fax: (239)435-1218 Page: 1 Heritage Bay CDD February 17,2016 Attn. Cal Teague File No: 6176-001M Severn Trent Management Services Statement No: 18 210 N.University Dr.Ste 702 Coral Springs FL 33071 Gen Rep SENT VIA EMAIL TO: CTeague©severntrentms.com Previous Balance —$227.50 Fees Hours 12/01/2015 GLU Review agenda for Board of Supervisors meeting 025 81,25 12/07/2015 GLU Review and respond to email correspondence from Cal Teague regarding engineering contract; Review and comment on same;Draft email correspondence to Cal Teague with comments 1.00 325.00 12/15/2015 GLU Review email correspondence from Justin Faircloth on notice for special meeting;Telephone conference with Justin Faircloth on same. 0.50 162,50 12/20/2015 GLU Review and respond to email correspondence from Justin Faircloth regarding engineer contract;Review revised draft 0.40 130.00 12/29/2015 GLU Review agenda materials and prepare for Board of Supervisors meeting; Review multiple email correspondence from Justin Faircloth relating to permitting and lake matters 0.75 2.43.75 12/30/2015 GLU Attendance at Board of Supervisors meeting 2.50 812.50 12/31/2015 GLU Review and respond to email correspondence from Ralph Verrastro regarding construction contract comments on wall repair: review same 0.30 97.50 Professional Fees through 02/17/2016 5.70 1,852.50 Page 13 Page:2 Heritage Bay CDD February 17,2016 File No: 6176-001M Statement No: 18 Gen Rep Total Current Work 1,852.50 Balance Due 6t80760-- %"2"47 APPROVED By Justin Fah-cloth at 2:228 pm,2/19/16 P,6 Code to:Admilstrative—ProfServe— Legal Services (#001-531023-51401-5000) U Page 14 Coleman,Yovanovich&Koester,P.A. Northern Trust Bank Building 4001 Tamlaml Trail North, Suite 300 Naples, Florida 34103-3556 Telephone: (239)435-3535 Fax: (239)435-1218 Page: 1 Heritage Bay CDD February 17,2016 Attn.Cal Teague File No: 6176-001M Severn Trent Management Services Statement No: 19 210 N.University Dr.Ste 702 Coral Springs FL 33071 Gen Rep SENT VIA EMAIL TO: CTeague@severntrentrns.com Previous Balance $2,080.00 Fees Hours 01/07/2016 GLU Review agenda for Board of Supervisors meeting 0.20 65.00 Professional Fees through 02/17/2016 0.20 65.00 Total Current Work 65.00 ) Payments Total Payments Through 02/17/2016 -227.50 Balance Due Code to:Admiistrative— ProfServe—Legal /�� Services II (#001-531023-51401-50 00) $65.00 APPROVED F.i Ry Justin F:111001h t 122 nm,V/406 Page 15 ♦'BRIDGI Ns Bridging Solutions,LLC Invoice 15863 Secoya Reserve Circle Date Invoice# Naples,FL 34110 2/26/2016 148 Bill To Heritage Bay CDD Cal Teague 5911 Country Lakes Drive Fort Myers,FL 33905 P.O.No. Terms Project I Repair CEI Ser Field -Wall Impv 001-56304253901-5000 Description Est Amt Prior Amt Prior% C1ty Rate Curr% iota % Amount Wall Repair Construction Phase 12,206.00 0.35 12,206.00 35.00% 35.00% 4,272.10 Services Progress Report 1.Assisted the CDD and the property manager with the administration of the contract.Conducted a preconstruction meeting to review contractor's means and methods and detailed project schedule. 2.Reviewed and approved project material submittals. 3.Reviewed written Requests for Information(RFT)from the contractor and provided written responses. 4.Performed 4 intermittent inspections. Code to:Field-Wall Impv- 001-563042-53901-5000 Total $4,272 10 Payments/Credits soon ark . Balance Due $4,272.10 '�} By Justin Faircloth at 230 ern, 2/26/76 y, 1It,nY`1st. ' 4;tI rtAi,tIr CI?R IPIE iiC"s"' *'3-I- Page 16 Bridging Solutions,LLCBRIDGLNG 15863 Secoya Reserve Circle Nenies,FL34110 Wr SOLUTIONS Tel.(239)216-1370 v,r.w,Ilridgjng-se ul nus.certl CHANGE ORDER FOR SUPPLEMENTAL SERVICES Date:December 1,2015 Change Order#: 1 Consultant: Bridging Solutions,LLC Client: Heritage Bay CDD 15863 Secoya Reserve Circle d o Naples,FL 34110 Severn Trent Services 5911 Country Lakes Drive Ft.Myers,FL 33905 Project Name and Location: Heritage Bay Retaining Wall Repairs,Naples,Florida Construction Inspection Services In accordance with our current agreement dated March 26,2015,the Agreement changes as detailed below are hereby authorized. Change Order Scope of Services: L 1. Assist the CDD and the property manager with the administration of the contract.Conduct a preconstruction meeting to review contractor's means and methods and detailed project schedule. 1.2. Review and approve project material submittals. 1.3. Review written Requests for Information(RR)from the contractor and provide written responses. 1.4. Perform intermittent inspections during construction and prepare inspection reports.We assume 2 -3 hour inspections per week for the estimated duration of construction(7 weeks)for a total of 42 hours. 1.5. Prepare"As-Built"drawings documenting all approved field changes during construction. 1.6. Perform a final inspection and provide a letter of certification stating the wall was constructed in accordance with the plans and specifications. Change Order Fee:$12,206 Payments made in accordance with the original agreement terms.All other items and conditions of the original Agreement shalt remain in full force and effect. BRIDGING SOLUTIONS,LLC HERITA ' LIJAY CDI) Per: k..Q411.4.µZj,A4-. Per. Name: Ralph Verrastro Name: / (,\J 8 07146444 Title: Principal Title: (1444rei"44W - Cep Date: December 1,2015 Date: /2/3f t We design bridges to fit your site and budget. Page 17 /( , � ! Iii . c !I \ , . . . . : - � Ii w 11111111111 k |< -!) � mu`� II_ ; p 111 111111111111 1 /\ pi ph mom , b 11111111 lid � Iii Ill id 11 , hi i 1 _II ill11 p —-- — iiiiiiiiii HI ii- -� - Iin :| \ ,. e §} � ® / R ) ;2 ! (/ I ) ,, # iiiIe �� !��2�2 ; ; 0a J . . .. . ��. & HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 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 02700 ilir North Military Trail•Suite 350 Boca Raton, Florida 33431 JO Graze 8� Associates (561)994-9299•(800)299-4728 Fax (561)994-5823 CERTIFIED PUBLIC ACCC�t.tNTANTS www.graucpa.com 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 30,2015,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 30,2015, 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 May 4,2016,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 May 4,2016,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. May 4,2016 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 District's financial activities for the fiscal year ended September 30, 2015. Please read it in conjunction with the District's Independent Auditor's Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS • The liabilities of the District exceeded its assets at the close of the most recent fiscal year resulting in a net position deficit balance of($7,689,620). • The change in the District's total net position in comparison with the prior fiscal year was($176,927), 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 30,2015,the District's governmental funds reported combined ending fund balances of $1,179,277,an increase of$427,871 in comparison with the prior fiscal year. The total fund balance is restricted for debt service,assigned to operations and erosion control reserves,and the remainder 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 two 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,both of which are considered major funds. 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, 2015 2014 Current and other assets $ 1,218,124 $ 778,018 Capital assets,net of depreciation 9,095,998 9,800,455 Total assets 10,314,122 10,578,473 Current liabilities 311,497 132,459 Long-term liabilities 17,692,245 17,958,707 Total liabilities 18,003,742 18,091,166 Net position Net investment in capital assets (8,596,247) (8,158,252) Restricted 811,357 498,505 Unrestricted 95,270 147,054 Total net position $ (7,689,620) $ (7,512,693) 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 the extent to which the cost of operations and depreciation expense exceeded ongoing program revenues. Key elements of the change in net position are reflected in the following table: CHANGES IN NET POSITION FOR THE FISCAL YEAR END SEPTEMBER 30, 2015 2014 Revenues: Program revenues $ 1,501,926 $ 1,585,716 General revenues 606 1,606 Total revenues 1.502,532 1,587,322 Expenses: General government 155,579 146,860 Maintenance and operations 877,228 845,775 Interest 643,114 1,029,700 Cost of issuance of new debt 3,538 251,406 Total expenses 1,679,459 2,273,741 Change in net position (176,927) (686,419) Net position-beginning (7,512,693) (6,826,274) Net position-ending $ (7,689,620) $ (7,512,693) As noted above and in the statement of activities,the cost of all governmental activities during the fiscal year ended September 30, 2015 was$1,679,459. The costs of the District's activities were primarily funded by program revenues. The remainder of the current fiscal year revenue includes interest income. Program revenues,comprised primarily of assessments,decreased during the fiscal year due to a decrease in the per unit assessments.In total,expenses,including depreciation,decreased from the prior fiscal year.The majority of the decrease is associated with the prior year's cost of issuing the Series 2014 Refunding Bonds and a decrease in interest expense related to the new bonds issued at a lower interest rate. 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, 2015 was amended to increase appropriations and use of fund balance by$66,000. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures for the current fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At September 30,2015,the District had$15,710,851 invested in infrastructure and construction in progress, for its governmental activities. In the government-wide financial statements depreciation of$6,614,853 has been taken,which resulted in a net book value of$9,095,998. More detailed information about the District's capital assets is presented in the notes of the financial statements. 5 CAPITAL ASSETS AND DEBT ADMINISTRATION (Continued) Capital Debt At September 30, 2015, the District had $17,220,000 Bonds outstanding and $468,707 in Deferred Costs obligation outstanding for its governmental activities. During the 2015 fiscal year, the District obtained a $250,000 note of which $3,538 was used. 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 For the subsequent fiscal year, the District anticipates that the cost of general operations will remain fairly constant.In connection with the District's future infrastructure maintenance and replacement plan,the District's costs will increase due to the bridge embankment project(bridge wall project). 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 30,2015 Governmental Activities ASSETS Cash and cash equivalents $ 63,820 Investments 51,392 Due from other governments 11,663 Restricted assets: Investments 1,091,249 Capital assets: Nondepreciable 39,812 Depreciable, net 9,056,186 Total assets 10,314,122 LIABILITIES Accounts payable 38,847 Accrued interest payable 272,650 Non-current liabilities: Due within one year 545,000 Due in more than one year 17,147,245 Total liabilities 18,003,742 NET POSITION Net investment in capital assets (8,596,247) Restricted for debt service 811,357 Unrestricted 95,270 Total net position $ (7,689,620) See notes to the financial statements 7 m 277 5 , Cki/ } j0) CDCD ° o - o co ) / \ / mak k7Q / § \ b - 2 ,22En 2 U CO _ CO CO 10 0)2 § II . , k m � C 6 2CI- . � F- n # 06 / U ■ _IX $ I- 4n � E ar cc m 2� � § r--- 0.1 § � z_ kuj / Ao -2 � � k k § 0) CO m §- 0 � CO ® - % ` E o c o g§$ „§ ® . §\ A ƒ§ a) I- � ff ` ` @ k � wk � § 0) Nj / f § § �� CC \ 20 � � � § (ON N- % \ � 2 § 2 - � » § R 00) 00 ) t\§ a k � � � �a/ 2 mo ®° ® )0 o z z § § m § 22 \ o ) ) ) ktAE iii # (flI C � � 2 e _ § © / § e E f & % 8 q o \ 9 c - C % e @ - 2 o a $ a ® § . ! 1-4 1- Q2 § om = o LL £ � HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30,2015 Major Funds Total Governmental General Debt Service Funds ASSETS Cash and cash equivalents $ 63,820 $ - $ 63,820 Investments 51,392 1,091,249 1,142,641 Due from other governments 1,871 9,792 11,663 Due from other funds - 2,594 2,594 Total assets $ 117,083 $ 1,103,635 S 1,220,718 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 19,219 $ 19,628 $ 38,847 Due to other funds 2,594 - 2,594 Total liabilities 21,813 19,628 41,441 Fund balance: Restricted for: Debt service - 1,084,007 1,084,007 Assigned to: Operating reserves 60,124 - 60,124 Reserves -Erosion Control 14,687 - 14,687 Unassigned 20,459 - 20,459 Total fund balance 95,270 1,084,007 1,179,277 Total liabilities and fund balance $ 117,083 $ 1,103,635 $ 1,220,718 See notes to the financial statements 9 HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30,2015 Total fund balances-governmental funds $ 1,179,277 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 15,710,851 Accumulated depreciation (6,614,853) 9,095,998 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 (272,650) Deferred costs obligation (468,707) Note obligation (3,538) Bonds payable (17,220,000) (17,964,895) Net position of governmental activities $ (7,689,620) 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 30,2015 Major Funds Total Governmental General Fund Debt Service Funds REVENUES Assessments $ 240,904 $ 1,260,954 $ 1,501,858 Interest 606 68 674 Total revenues 241,510 1,261,022 1,502,532 EXPENDITURES Current: General government 120,523 35,056 155,579 Maintenance and operations 132,959 - 132,959 Debt Service: Principal - 270,000 270,000 Interest - 476,311 476,311 Cost of issuance 3,538 - 3,538 Capital outlay 39,812 - 39,812 Total expenditures 296,832 781,367 1,078,199 Excess (deficiency)of revenues over(under)expenditures (55,322) 479,655 424,333 OTHER FINANCING SOURCES Note proceeds 3,538 - 3,538 Total other financing sources 3,538 - 3,538 Net change in fund balance (51,784) 479,655 427,871 Fund balance-beginning 147,054 604,352 751,406 Fundbalance-ending $ 95,270 $ 1,084,007 $ 1,179,277 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 30,2015 Net change in fund balances-total governmental funds $ 427,871 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report the face amount of Notes 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. (3,538) 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. 39,812 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. 270,000 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. (166,803) Depreciation on capital assets is not recognized in the governmental fund financial statements, but is reported as an expense in the statement of activities. (744,269) Change in net position of governmental activities $ (176,927) 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 Fund The debt service fund is 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 Obligations 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, 2015: Investment Fair Value Credit Risk Maturity Money Market Fund-First American Weighted average of the Governement Obligation CL Y $ 1,091,249 S&PAAAm fund portfolio:37 days Bank United CD-24 months 51,392 N/A 2/13/2016 Total Investments $ 1,142,641 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 30,2015 was as follows: Beginning Ending Balance Additions Reductions Balance Governmental activities Capital assets,not being depreciated Construction in progress $ - $ 39,812 $ - $ 39,812 Total capital assets,not being depreciated - 39,812 - 39,812 Capital assets,being depreciated Infrastructure 15,671,039 - - 15,671,039 Total capital assets,being depreciated 15,671,039 - - 15,671,039 Less accumulated depreciation for: Infrastructure 5,870,584 744,269 - 6,614,853 Total accumulated depreciation 5,870,584 744,269 - 6,614,853 Total capital assets,being depreciated,net 9,800,455 (744,269) - 9,056,186 Governmental activities capital assets,net $ 9,800,455 $ (704,457) $ - $ 9,095,998 Depreciation expense was charged to maintenance and operations function. NOTE 6—LONG-TERM LIABILITIES 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 30,2015. 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, 2015. 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. Series 2015 Note On September 10,2015,the District obtained from CNL Bank a$250,000 line of credit(also referred as 2015 Note)due on September 10, 2020 with fixed interest rate of 4.00%. The line of credit was issued to fund improvements to the bridge retaining wall(the"Project"). Beginning on October 10,2015 and continuing on the same day of each month thereafter for nine(9)months, the District shall make interest only payments. Beginning July 10,2016,the District shall make principal and interest payments monthly for fifty one(51)consecutive months,in an amount calculated by the Noteholder, based on the outstanding principal balance of the Series 2015 Note on June 10, 2016 and a fifty one(51) month amortization period.The unpaid principal balance of this Series 2015 Note,together with all accrued interest and charges owing in connection therewith, shall be due and payable on the Maturity Date. 18 NOTE 6—LONG-TERM LIABILITIES(Continued) Long-term Debt Activity Changes in long-term liability activity for the fiscal year ended September 30,2015 were as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities Bonds payable: Series 2015 note $ - $ 3,538 $ - $ 3,538 $ - Series 2014 17,490,000 - 270,000 17,220,000 545,000 Deferred cost obligation 468,707 - - 468,707 - Total $17,958,707 $ 3,538 $ 270,000 $17,692,245 $ 545,000 At September 30, 2015,the scheduled debt service requirements on the long-term debt were as follows: Governmental Activities Year ending September 30: Principal Interest Total 2016 $ 545,000 $ 854,360 $ 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 635,000 566,770 1,201,770 2021-2025 3,560,000 2,453,280 6,013,280 2026-2029 10,720,000 1,442,290 12,162,290 Total $ 17,220,000 $ 6,952,480 $ 24,172,480 NOTE 7—DEFICIT NET POSITION The District has a government-wide net position deficit of($7,689,620)as of September 30,2015. 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.There have been no claims from these risks that 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 30,2015 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Assessments $ 239,995 $ 239,995 $ 240,904 $ 909 Interest 500 500 606 106 Total revenues 240,495 240,495 241,510 1,015 EXPENDITURES Current: General govemment 110,426 110,426 120,523 (10,097) Physical environment 130,069 151,069 132,959 18,110 Cost of issuance - - 3,538 (3,538) Capital outlay - 45,000 39,812 5,188 Total expenditures 240,495 306,495 296,832 9,663 Excess (deficiency)of revenues over(under)expenditures - (66,000) (55,322) 10,678 OTHER FINANCING SOURCES Line of credit proceeds - - 3,538 3,538 Use of fund balance - 66,000 - (66,000) Total other financing sources - 66,000 3,538 (62,462) Net change in fund balances $ - $ - (51,784) $ (51,784) Fund balance-beginning 147,054 Fund balance-ending $ 95,270 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, 2015 was amended to increase appropriations and use of fund balance by$66,000. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures for the current fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. 21 2700 North Military Trail•Suite 350 Boca Raton, Florida 33431 Grau 8Z Associates (561)994-9299•(800)299-4728 Fax (561)994-5823 (Mal FIFO PUBLIC ACCOUNTANTS 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 30,2015, and the related notes to the financial statements,which collectively comprise the District's basic financial statements,and have issued our opinion thereon dated May 4,2016. 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. May 4,2016 4 1 23 a I 2700 North Military Trail•Suite 350 frau & Associates Boca Raton, Florida 33431 (561)994-9299•(800)299-4728 irill Fax (561)994-5823 CEtl'FILIF,1) f'CIBLIC ACCO LI N'I'A NTS 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 30,2015. 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, 2015. 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. May 4, 2016 24 ir 2700 North Military Trail•Suite 350 • Boca Raton, Florida 33431 41 Grau & Associates (561)994-9299•(800)299-4728 C,t1R'I'll {iit) PUBLIC r‘C;COIIN°fAN'i'ti Fax (561)994-5823www.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 30,2015,and have issued our report thereon dated May 4,2016. 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 May 4,2016, 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. II. Status of prior year findings and recommendations. Ili. 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. L .i 4qY)--,,l,„,,,,, `i,^ May 4, 2016 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, 2014. 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 30,2015. 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 30,2015. 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 30,2015 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 30,2015.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 2017 Version 4-Proposed Budget: (Printed on 4/26/2016 12pm) 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 Budget Narrative 5-7 Exhibit A-Allocation of Fund Balances 8 DEBT SERVICE BUDGETS Series 2014 Summary of Revenues,Expenditures and Changes in Fund Balances 9 Amortization Schedule 10 Budget Narrative 11 SUPPORTING BUDGET SCHEDULES 2016-2017 Non-Ad Valorem Assessment Summary 12 Heritage Bay Community Development District Operating Budget Fiscal Year 2017 HERITAGE BAY Community Development District General Fund Summary of Revenues,Expenditures and Changes in Fund Balances Fiscal Year 2017 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU APRIL- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2015 FY 2016 MAR-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest-Investments $ 606 $ 500 $ 189 $ 252 $ 441 $ 500 SpecialAssmnts-TaxCollector 250,000 250,000 248,036 1,964 250,000 250,000 Special Assmnts-Wall Project - 62,500 62,500 - 62,500 62,500 Special Assmnts-Reserves - 31,250 31,250 - 31,250 31,250 Special Assmnts-Discounts (9,096) (13,750) (12,767) - (12,787) (13,750) Other Miscellaneous Revenue - - 11,000 - 11,000 - TOTAL REVENUES 241,510 330,500 340,208 2,216 342,424 330,500 EXPENDITURES Administrative P/R-Board of Supervisors 7,200 8,000 5,000 2,000 7,000 8,000 FICA Taxes 551 612 383 153 536 612 ProfServ-Arbitrage Rebate 1,200 - - - - - ProfServ-Dissemination Agent 1,000 - - - - - ProfServ-Engineering 14,161 14,000 1,613 6,900 8,513 14,000 ProfServ-Legal Services 16,965 5,000 2,763 2,237 5,000 5,000 ProfSery-Mgmt Consulting Sery 38,246 39,394 19,697 19,698 39,395 40,576 ProfSery-Property Appraiser 3,750 5,156 - 3,750 3,750 5,156 ProfServ-Special Assessment 5,000 5,150 5,150 - 5,150 5,305 ProfServ-Trustee Fees 5,334 - - - - - ProfServ-Web Site Maintenance 483 750 281 198 479 750 Auditing Services 3,600 3,600 - 3,600 3,600 3,600 Postage and Freight 2,662 1,300 501 2,199 2,700 2,700 Insurance-General Liability 12,754 13,000 14,348 - 14,348 15,783 Printing and Binding 1,293 1,000 560 700 1,260 1,300 Legal Advertising 2,195 1,200 2,041 1,500 3,541 3,700 Misc-Bank Charges 651 750 83 - 83 750 Misc-Assessmnt Collection Cost 2,947 6,876 6,604 39 6,643 6,875 Office Supplies 330 550 33 276 309 550 Annual District Filing Fee 200 175 175 - 175 175 Total Administrative 120,522 106,513 59,232 43,260 102,482 114,832 Field ProfServ-Field Management 12,000 12,380 8,180 8,180 12,380 12,731 Contracts-Lake and Wetland 57,944 - - - - - R&M-Aquascaping 12,415 - - - - - R&M-Lake Erosion 43,313 - - - - - R&M-Contingency 5,900 2,000 - 1,000 1,000 1,000 Wall Improvements 41,199 216,500 93,623 188,365 281,988 - Total Field 172,771 232,860 99,803 195,545 295,348 13,731 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 1 HERITAGE BAY Community Development District General Fund Summary of Revenues,Expenditures and Changes in Fund Balances Fiscal Year 2017 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU APRIL- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2016 FY 2016 MAR-2016 SEP-2016 FY 2016 FY 2017 Lakes and Ponds Contracts-Lake and Wetland - 60,744 30,372 30,372 60,744 76,000 Contracts-Water Quality Monitoring 10,000 R&M-Aquascaping - 5,000 - 2,600 2,600 5,000 R&M-Lake Erosion - 35,000 369 30,000 30,369 10,000 R&M-Contingency - 5,000 - - - 5,000 Impr-Miscellaneous - 2,000 - - 2,000 Reserve-Lakes - 31,250 - - - 31,250 Total Lakes and Ponds - 138,994 30,741 62,972 93,713 139,250 Debt Service Operating Loan Repayment - 33,333 - 33,333 33,333 50,000 Interest Expense-Note - 6,670 68 2,822 2,890 8,234 Cost of Issuance - - 3,538 - 3,538 - Reserve-Loan variance - - - - - 4,453 Total Debt Service - 40,003 3,606 36,155 39,761 62,687 TOTAL EXPENDITURES 293,293 518,370 193,382 337,922 531,304 330,500 Excess(deficiency)of revenues Over(under)expenditures (51,783) (187,870) 146,826 (335,708) (188,880) 0 OTHER FINANCING SOURCES(USES) Loan/Note Proceeds - - 3,538 246,462 250,000 - Contribution to(Use of)Fund Balance - (187,870) - - - 0 TOTAL OTHER SOURCES(USES) - (187,870) 3,538 246,462 250,000 0 I Net change in fund balance (51,783) (187,870) 150,364 (89,244) 61,120 (0.17) FUND BALANCE,BEGINNING 147,053 95,270 95,270 - 95,270 156,390 FUND BALANCE,ENDING $ 95,270 $ (92,600) $ 245,634 $ (89,244) $ 156,390 $ 156,390 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 2 HERITAGE BAY Community Development District $250,000 Loan, 5 years, 4.25% Amortization Schedule Principal Date Payment Principal Interest Balance $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 5/1/2016 5,007.82 4,166.67 841.15 $233,333.32 6/1/2016 4,993.06 4,166.67 826.39 $229,166.65 7/1/2016 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 3/1/2017 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 8/1/2017 4,786.46 4,166.67 619.79 $170,833.27 9/1/2017 4,771.70 4,166.67 605.03 $166,666.60 10/1/2017 4,756.95 4,166.67 590.28 $162,499.93 11/1/2017 4,742.19 4,166.67 575.52 $158,333.26 12/1/2017 4,727.43 4,166.67 560.76 $154,166.59 1/1/2018; 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 3/1/2018' 4,683.16 4,166.67 516.49 $141,666.58 4/1/2018' 4,668.41 4,166.67 501.74 $137,499.91 5/1/2018i 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 10/1/2018 4,579.86 4,166 67 413.19 $112,499.89 11/1/2018 4,565.11 4,166.67 398.44 $108,333.22 12/1/2018 4,550.35 4,166.67 383.68 $104,166.55 1/1/2019 4,535.59 4,166.67 368.92 $99,999.88 2/1/2019 4,520.84 4,166.67 354.17 $95,833.21 3/1/2019 4,506.08 4,166.67 339.41 $91,666.54 4/1/2019 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 6/1/2019 4,461.81 4,166.67 295.14 $79,166.53 7/1/2019 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 2017 Page 3 HERITAGE BAY Community Development District $250,000 Loan, 5 years, 4.25% Amortization Schedule Principal Date Payment Principal Interest Balance 10/1/2019 4,402.78 4,166.67 236.11 $62,499.85 11/1/2019 4,388.02 4,166.67 - 221.35 $58,333.18 12/1/2019 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 2/1/2020 4,343.75 4,166.67 177.08 $45,833.17 1 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 5/1/2020 4,299.48 4,166.67 132.81 $33,333.16 6/1/2020 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 10/1/2020 4,225.70 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 2017 Page 4 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2017 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 $50 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-Reserves 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 $25 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 PIR-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. Severn 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 of 3%is projected for the next fiscal year to cover operating expenses. Annual Operating and Debt Service Budget Fiscal Year 2017 Page 5 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2017 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 with a projected increase of 3%budgeted. 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 10%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 2017 Page 6 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2017 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. A projected 3%increase is budgeted. R&M-Contingency All other field expenses that do not fall into the category described above will be expensed to contingency. 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. Floridone Treatment was added May 2015. Contracts—Water Quality Monitoring A contract was negotiated with CPH for testing of the lakes and water quality monitoring. 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 lake expenses that do not fall into the categories described above will be expensed to contingency. Impr-Misc This expense has been designated specifically for lake improvements. Reserve—Lakes This is for lake improvement expenses that are projected to occur in the future. Debt Service Operating Loan Repayment During FY2015,the District began 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-Note The District will make monthly interest payments on the loan balance. Annual Operating and Debt Service Budget Fiscal Year 2017 Page 7 HERITAGE BAY Community Development District Exhibit"A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance-Fiscal Year 2017 $ 156,390 Net Change in Fund Balance-Fiscal Year 2017 Reserves-Fiscal Year 2017 Additions 93,937 'Total Funds Available(Estimated)-9/30/2017 250,327 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve-First Quarter Operating Capital 59,141 lei Reserves-Erosion Control 14,687 Reserves-Lakes(FY16) 31,250 Reserves-Lakes(FY17) 31,250 62,500 Reserves-Debt Service(FY17) 62,687 Subtotal 199,015 Total Allocation of Available Funds 199,015 Total Unassigned(undesignated)Cash $ 51,312 Notes (1)Represents approximately 3 months of operating expenditures Annual Operating and Debt Service Budget Fiscal Year 2017 Page 8 Heritage Bay Community Development District Debt Service Budget Fiscal Year 2017 HERITAGE BAY Community Development District Series 2014 Debt Service Fund Summary of Revenues,Expenditures and Changes in Fund Balances Fiscal Year 2017 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU APRIL- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2016 FY 2016 MAR-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest-Investments $ 68 $ - $ 38 $ 38 $ 76 $ - Special Assmnts-Tax Collector 1,308,564 1,308,564 1,291,408 17,156 1,308,564 1,308,564 Special Assmnts-Discounts (47,609) (52343) (48,029) - (48,029) (52,343) TOTAL REVENUES 1,261,023 1,256,221 1,243,417 17,194 1,260,611 1,256,221 EXPENDITURES Administrative ProfServ-Arbitrage Rebate 600 - 600 600 600 ProfServ-Property Appraiser 19,628 19,628 - 19,628 19,628 19,628 ProfServ-Trustee Fees - 6,815 - 6,815 6,815 6,815 Misc-Assessmnt Collection Cost 15,427 26,171 24,844 343 25,187 28,171 Total Administrative 35,055 53,214 24,844 27,386 52,230 53,214 Debt Service Principal Debt Retirement 270,000 545,000 - 545,000 545,000 565,000 Interest Expense 476,311 654,360 327,180 327,180 654,360 633,650 Total Debt Service 746,311 1,199,360 327,180 872,180 1,199,360 1,198,650 I TOTAL EXPENDITURES 781,366 1,252,574 352,024 899,566 1,251,590 1,251,864 I Excess(deficiency)of revenues Over(under)expenditures 479,657 3,647 891,393 (882,372) 9,021 4,357 OTHER FINANCING SOURCES(USES) Contribution to(Use of)Fund Balance - 3,647 - - - 4,357 I TOTAL OTHER SOURCES(USES) - 3,647 - - - 4,357 Net change in fund balance 479,657 3,647 891,393 (882,372) 9,021 4,357 FUND BALANCE,BEGINNING 604,350 1,084,007 1,084,007 - 1,084,007 1,093,028 FUND BALANCE,ENDING $ 1,084,007 $ 1,087,654 $1,975,400 $ (882,372) $ 1,093,028 $ 1,097,385 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 9 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 11/1/2016 $ - $ 316,825.00 $ 16,675,000.00 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 S - $ 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 1,210,420.00 111/2028 $ - $ 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 $ 16,675,000.00 $ - $ 6,298,120.00 $ 22,973,120.00 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 10 HERITAGE BAY Community Development District Debt Service Fund Budget Narrative Fiscal Year 2017 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. EXPENDITURES 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 2017 Page 11 Heritage Bay Community Development District Supporting Budget Schedules Fiscal Year 2017 HERITAGE BAY Community Development District All Funds Comparison of Assessment Rates Fiscal Year 2017 vs.Fiscal Year 2016 General Fund Debt Service Total Assessments per Unit Units FY 2017 FY 2016 Percent FY 2017 FY 2016 Percent FY 2017 FY 2016 Percent , Product I Change Change Change Executive $275.00 $275.00 00/ 5 $1,494.25 $1,494.25 0% $1,769.25 $1,769.25 00/ t 139 Classics $275.00 $275.00 0% 1 $2,362.85 $2,362.85 0% $2,637.85 $2,637.85 0% a 95 Classics II `s $275.00 $275 00 0% 1 $2,552.25 $2,552.25 0% 1 $2,827.25 $2,827.25 0% 1 18 Coach j $275.00 $275.00 0% $1,054.76 $1,054.76 0% I $1,329.76 $1,329.76 0% 184 2 Story $275.00 $275.00 0% $878.97 $878.97 0% .7 $1,153.97 $1,153.97 0% 1 364 4 Story 3 $275.00 $275.00 0% $703.18 $703.18 0% 1$ 978.18 $978.18 0% 450 1250 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 12 RESOLUTION 2016-4 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT APPROVING THE BUDGET FOR FISCAL YEAR 2017 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW WHEREAS,the District Manager has heretofore prepared and submitted to the Board a proposed operating and/or debt service budget for Fiscal Year 2017;a copy of which is attached hereto, and WHEREAS,the Board of Supervisors has considered said proposed budget and desires to set the required public hearing thereon; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT; 1. The budget proposed by the District Manager for Fiscal Year 2017 is hereby approved as the basis for conducting a public hearing to adopt said budget. 2. A public hearing on said approved budget is hereby declared and set for the following date,hour and place: Date: August 4,2016 Hour: 9:00 a.m. Place: Heritage Bay Clubhouse 10154 Heritage Bay Boulevard Naples,Florida Notice of this public hearing shall be published in the manner prescribed in Florida Law. Adopted this 5th day of May,2016. I Edwin B. Hubbard Chairman - 004 Calvin Teague r Secretary HERITAGE BAY Community Development District Annual Operating and Debt Service Budget Fiscal Year 2017 Version 5-Approved Budget (May 5,2016 meeting) 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 Budget Narrative 5-7 Exhibit A-Allocation of Fund Balances ...................................................................... 8 DEBT SERVICE BUDGETS Series 2014 Summary of Revenues,Expenditures and Changes in Fund Balances 9 Amortization Schedule .. 10 Budget Narrative 11 SUPPORTING BUDGET SCHEDULES 2016-2017 Non-Ad Valorem Assessment Summary 12 Heritage Bay Community Development District Operating Budget Fiscal Year 2017 HERITAGE BAY Community Development District General Fund Summary of Revenues,Expenditures and Changes in Fund Balances Fiscal Year 2017 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU APRIL- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2015 FY 2016 MAR-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest-Investments $ 606 $ 500 $ 189 $ 252 $ 441 $ 500 Special Assmnts-Tax Collector 250,000 250,000 248,036 1,964 250,000 250,000 Special Assmnts-Wall Project - 62,500 62,500 - 62,500 62,500 Special Assmnts-Reserves - 31,250 31,250 - 31,250 31,250 Special Assmnts-Discounts (9,096) (13,750) (12,767) - (12,767) (13,750) Other Miscellaneous Revenue - - 11,000 - 11,000 - TOTAL REVENUES 241,510 330,500 340,208 2,216 342,424 330,500 EXPENDITURES Administrative PIR-Board of Supervisors 7,200 8,000 5,000 2,000 7,000 8,000 FICA Taxes 551 612 383 153 536 612 ProfServ-Arbitrage Rebate 1,200 - - - - - ProfServ-Dissemination Agent 1,000 - - - - - ProfServ-Engineering 14,161 14,000 1,613 6,900 8,513 14,000 ProfServ-Legal Services 16,965 5,000 2,763 2,237 5,000 5,000 ProfServ-Mgmt Consulting Sery 38,248 39,394 19,697 19,698 39,395 40,576 ProfServ-Property Appraiser 3,750 5,156 - 3,750 3,750 5,156 ProfServ-Special Assessment 5,000 5,150 5,150 - 5,150 5,305 ProfServ-Trustee Fees 5,334 - - - - - ProfServ-Web Site Maintenance 483 750 281 198 479 750 Auditing Services 3,600 3,600 - 3,600 3,600 3,600 Postage and Freight 2,662 1,300 501 2,199 2,700 2,700 Insurance-General Liability 12,754 13,000 14,348 - 14,348 15,783 Printing and Binding 1,293 1,000 560 700 1,260 1,300 Legal Advertising 2,195 1,200 2,041 1,500 3,541 3,700 Misc-Bank Charges 651 750 83 - 83 750 Misc-Assessmnt Collection Cost 2,947 6,876 6,604 39 6,643 6,875 Office Supplies 330 550 33 276 309 550 Annual District Filing Fee 200 175 175 - 175 175 Total Administrative 120,522 106,513 59,232 43,250 102,482 114,832 Field ProfServ-Field Management 12,000 12,360 6,180 6,180 12,360 12,731 Contracts-Lake and Wetland 57,944 - - - - - R&M-Aquascaping 12,415 - - - R&M-Lake Erosion 43,313 - - - - - R&M-Contingency 5,900 2,000 - 1,000 1,000 1,000 Wall Improvements 41,199 218,500 93,623 188,365 281,988 - Total Field 172,771 232,860 99,803 195,646 296,348 13,731 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 1 HERITAGE BAY Community Development District General Fund Summary of Revenues,Expenditures and Changes in Fund Balances Fiscal Year 2017 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU APRIL- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2016 FY 2016 MAR-2016 SEP-2016 FY 2016 FY 2017 Lakes and Ponds Contracts-Lake and Wetland - 60,744 30,372 30,372 60,744 66,000 Contracts-Water Quality Monitoring 5,642 5,642 20,000 R&M-Aquascaping - 5,000 - 2,600 2,600 5,000 R&M-Lake Erosion - 35,000 369 30,000 30,369 10,000 R&M-Contingency - 5,000 - - - 5,000 Impr-Miscellaneous - 2,000 - - - 2,000 Reserve-Lakes - 31,250 - - - 31,250 Total Lakes and Ponds - 138,994 30,741 68,614 99,355 139,250 Debt Service Operating Loan Repayment - 33,333 - 33,333 33,333 50,000 Interest Expense-Note - 6,670 68 2,822 2,890 7,750 Cost of Issuance - - 3,538 - 3,538 - Reserve-Loan variance - - - - - 4,937 Total Debt Service - 40,003 3,606 36,155 39,761 62,687 TOTAL EXPENDITURES 293,293 518,370 193,382 343,564 536,946 330,500 Excess(deficiency)of revenues Over(under)expenditures (51,783) (187,870) 146,826 (341,348) (194,522) (0) OTHER FINANCING SOURCES(USES) Loan/Note Proceeds - - 3,538 246,462 250,000 - Contribution to(Use of)Fund Balance - (187,870) - - - (0) I TOTAL OTHER SOURCES(USES) - (187,870) 3,538 246,462 250,000 (0) Net change in fund balance (51,783) (187,870) 150,364 (94,886) 55,478 (0) FUND BALANCE,BEGINNING 147,053 95,270 95,270 - 95,270 150,748 FUND BALANCE,ENDING $ 95,270 $ (92,600) $ 245,634 $ (94,886) $ 150,748 $ 150,748 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 2 HERITAGE BAY Community Development District $250,000 Loan, 5 years, 4.0% Amortization Schedule Principal Date Payment Principal Interest Balance $250,000.00 2/1/2016 $5,000.00 $4,166.67 $833.33 $245,833.33 3/1/2016 4,986.11 4,166.67 819.44 _ $241,666.66 4/1/2016 4,972.23 4,166.67 805.56 $237,499.99 5/1/2016_ 4,958.34 - 4,166.67 791.67 $233,333.32 6/1/2016 4,944.45 4,166.67 777.78 $229,166.65 7/1/2016 4,930.56 4,166.67 763.89 $224,999.98 8/1/2016 4,916.67 4,166.67 750.00 $220,833.31 9/1/2016 4,902.78 4,166.67 736.11 $216,666.64 10/1/2016 4,888.89 4,166.67 722.22 $212,499.97 11/1/2016 4,875.00 4,166.67 708.33 $208,333.30 12/1/2016 4,861.11 4,166.67 694.44 $204,166.63 1/1/2017 4,847.23 4,166.67 680.56 $199,999.96 2/1/2017 4,833.34 4,166.67 666.67 $195,833.29 3/1/2017 4,819.45 4,166.67 652.78 $191,666.62 4/1/2017 4,805.56 4,166.67 638.89 $187,499.95 5/1/2017 4,791.67 4,166.67 625.00 $183,333.28 6/1/2017 4,777.78 4,166.67 611.11 $179,166.61 - - 7/1/2017 4,763.89 4,166.67 597.22 $174,999.94 8/1/2017 4,750.00 4,166.67 583.33 $170,833.27 9/1/2017 4,736.114 4,166.67 569.44 $166,666.60 10/1/2017 4,722.23 4,166.67 555.56 $162,499.93 11/1/2017 4,708.34 4,166.67 541.67 $158,333.26 12/1/2017 4,694.45 4,166.67 527.78 $154,166.59 1/1/2018 4,680.56 4,166.67 513.89 $149,999.92 2/1/2018 4,666.67 4,166.67 500.00 j $145,833.25 3/1/2018 4,652.78 4,166.67 486.11 1 $141,666.58 4/1/2018 4,638.89 4,166.67 472.22 ' $137,499.91 5/1/2018 4,625.00 4,166.67458.331 $133,333.24 6/1/2018 4,611.11 4,166.67 444.44 $129,166.57 7/1/2018 4,597.23 4,166.67 430.56 $124,999.90 8/1/2018 4,583.34 4,166.67 416.67 $120,833.23 9/1/2018 4,569.45 4,166.67 402.78 $116,666.56 10/1/2018 4,555.56 4,166.67 388.89 $112,499.89 11/1/2018 4,541.67 4,166.67 375.00 $108,333.22 12/1/2018 4,527.78 4,166.67 361.11 $104,166.55 1/1/2019 4,513.89 4,166.67 347.22 $99,999.88 2/1/2019 4,500.00 4,166.67 333.33 $95,833.21 3/1/2019 4,486.11 4,166.67 319.44 $91,666.54 4/1/2019 4,472.23 4,166.67 305.56 $87,499.87 5/1/2019 4,458.34 4,166.67 291.67 $83,333.20 6/1/2019 4,444.45 4,166.67 277.78 $79,166.53 7/1/2019 4,430.56 4,166.67 263.89 $74,999.86 8/1/2019 4,416.67 1 4,166 67 250.00 $70,833.19 • 9/1/2019 4,402.78 4,166.67 236.11 $66,666.52 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 3 HERITAGE BAY Community Development District $250,000 Loan, 5 years, 4.0% Amortization Schedule Principal Date Payment Principal Interest Balance 10/1/2019 4,388.89 4,166.67 222.22 $62,499.85 11/1/2019 4,375.00 4,166.67 208.33 $58,333.18 12/1/2019 4,361.11 4,166.67 194.44 $54,166.51 1/1/2020 4,347.23 4,166.67 180.56 $49,999.84 2/1/2020 4,333.34 4,166.67 166.67 $45,833.17 3/1/20201 4,319.45 4,166.67 152.78 $41,666.50 4/1/2020' 4,305.56 4,166.67 138.89 $37,499.83- 5/1/20201 4,291.67 4,166.67 125.00 $33,333.16 6/1/2020 4,277.78 4,166.67 111.11 $29,166.49 7/1/2020 4,263.89 4,166.67 97.22 $24,999.82 8/1/2020 4,250.00 4,166.67 83.33 $20,833.15 9/1/2020 4,236.11 4,166.67 1 69.44 $16,666.48 10/1/2020 4,222.22 4,166.67 55.55 $12,499.81 11/1/2020 4,208.34 4,166.67 41.67 $8,333.14 12/1/2020 4,194.45 4,166.67 27.78 $4,166.47 1/1/2021 4,180.36 4,166.47 13.89 ($0.00) $275,416.65 $250,000.00 $25,416.65 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 4 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2017 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 $50 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-Reserves 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 $25 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 PIR-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 Districts 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. Severn 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 of 3%is projected for the next fiscal year to cover operating expenses. Annual Operating and Debt Service Budget Fiscal Year 2017 Page 5 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2017 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 with a projected increase of 3%budgeted. 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 Districts 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 10%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 2017 Page 8 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2017 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. A projected 3%increase is budgeted. R&M-Contingency All other field expenses that do not fall into the category described above will be expensed to contingency. 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. Floridone Treatment was added May 2015. Contracts—Water Quality Monitoring A contract was negotiated with CPH for testing of the lakes and water quality monitoring. 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 lake expenses that do not fall into the categories described above will be expensed to contingency. Impr-Misc This expense has been designated specifically for lake improvements. Reserve—Lakes This is for lake improvement expenses that are projected to occur in the future. Debt Service Operating Loan Repayment During FY2015,the District obtained a 5 year loan in the amount of$250,000 with an APR of 4.00%. Beginning FY16, the District anticipates making monthly principal payments towards the outstanding loan balance. Interest Expense-Note The District will make monthly interest payments on the loan balance. Annual Operating and Debt Service Budget Fiscal Year 2017 Page 7 HERITAGE BAY Community Development District Exhibit"A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance-Fiscal Year 2017 $ 150,748 Net Change in Fund Balance-Fiscal Year 2017 - Reserves-Fiscal Year 2017 Additions 36,187 Total Funds Available(Estimated)-9/30/2017 186,936 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve-First Quarter Operating Capital 73,578 (1) Reserves-Erosion Control 14,687 Reserves-Lakes(FY16) 31,250 Reserves-Lakes(FY17) 31,250 62,500 Reserves-Debt Service(FY17) 4,937 Subtotal 155,702 Total Allocation of Available Funds 155,702 Total Unassigned(undesignated)Cash $ 31,233 Notes (1)Represents approximately 3 months of operating expenditures Annual Operating and Debt Service Budget Fiscal Year 2017 Page 8 Heritage Bay Community Development District Debt Service Budget Fiscal Year 2017 HERITAGE BAY Community Development District Series 2014 Debt Service Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2017 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU APRIL- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2015 FY 2016 MAR-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest-Investments $ 68 $ - $ 38 5 38 $ 76 $ - Special Assmnts-Tax Collector 1,308,564 1,308,564 1,291,408 17,156 1,308,564 1,308,564 Special Assmnts-Discounts (47,609) (52,343) (48,029) - (48,029) (52,343) TOTAL REVENUES 1,261,023 1,256,221 1,243,417 17,194 1,260,611 1,256,221 EXPENDITURES Administrative ProfServ-Arbitrage Rebate - 600 - 600 800 600 ProfServ-Property Appraiser 19,628 19,628 - 19,628 19,628 19,628 ProfServ-Trustee Fees - 6,815 6,815 6,815 6,815 Misc-Assessmnt Collection Cost 15,427 26,171 24,844 343 25,187 26,171 Total Administrative 35,055 53,214 24,844 27,386 52,230 53,214 Debt Service Principal Debt Retirement 270,000 545,000 - 545,000 545,000 565,000 Interest Expense 476,311 654,360 327,180 327,180 654,360 633,650 Total Debt Service 746,311 1,199,360 327,180 872,180 1,199,360 1,198,660 TOTAL EXPENDITURES 781,366 1,252,574 352,024 899,566 1,251,590 1,251,864 Excess(deficiency)of revenues Over(under)expenditures 479,657 3,647 891,393 (882,372) 9,021 4,357 OTHER FINANCING SOURCES(USES) Contribution to(Use of)Fund Balance - 3,647 - - - 4,357 TOTAL OTHER SOURCES(USES) - 3,647 - - - 4,357 I Net change in fund balance 479,657 3,647 891,393 (882,372) 9,021 4,357 FUND BALANCE,BEGINNING 604,350 1,084,007 1,084,007 - 1,084,007 1,093,028 FUND BALANCE,ENDING $ 1,084,007 $ 1,087,654 $ 1,975,400 $ (882,372) $ 1,093,028 $ 1,097,385 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 9 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 11/1/2016 $ - $ 316,825.00 $ 16,675,000.00 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 _5 660,000.00 $ - $ 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 $ 16,675,000.00 $ - $ 6,298,120.00 $ 22,973,120.00 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 10 HERITAGE BAY Community Development District Debt Service Fund Budget Narrative Fiscal Year 2017 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. EXPENDITURES 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 2017 Page 11 Heritage Bay Community Development District Supporting Budget Schedules Fiscal Year 2017 HERITAGE BAY Community Development District All Funds Comparison of Assessment Rates Fiscal Year 2017 vs.Fiscal Year 2016 General Fund Debt Service Total Assessments per Unit Units FY 2017 FY 2016 Percent FY 2017 FY 2016 Percent :j FY 2017 FY 2016 Percent >i Product Change + Change Change Executive $275.00 $275.00 0% 1 $1,494.25 $1,494.25 0% $1,769.25 $1,769.25 0% 139 Classics $275.00 $275.00 0% $2,362.85 $2,362.85 0% $2,637.85 $2,637.85 0% 95 Classics II $275.00 $275.00 0% $2,552.25 $2,552.25 0% $2,827.25 $2,827.25 0% 18 Coach , $275.00 $275.00 0% $1,054.76 $1,054.76 0% $1,329.76 $1,329.76 0`Yo 184 2 Story i $275.00 $275.00 0% $878.97 $878.97 0% $1,153.97 $1,153.97 0% 364 4 Story $275.00 $275.00 0% $703.18 $703.18 0% { $978.18 $978.18 0% 450 1250 Annual Operating and Debt Service Budget Fiscal Year 2017 Page 12 -.- JENNIFER J. EDWARDS SUPERVISOR OF ELECTIONS April 19,2016 Heritage Bay CDD Mr. Kenneth Cassel Severn -Trent Services 210 N. Univeristy Drive Suite 702 Coral Springs, FL 33071 Dear Mr. Cassel In compliance with Chapter 190.06 Florida Statutes,this notice is to inform that the official records of the Collier County Supervisor of Elections indicate 585 registered voters residing in the Heritage Bay CDD as of April 15, 2016. Should you have questions regarding election services for this district, please feel free to contact our office. Si erely,0) v.,e.„...._2.. ..._------::— David B Carpenter Qualifying Officer Collier County Supervisor of Elections (239) 252-8501 DaveCarpenter@colliergov.net RECEIVED CORAL SPRINGS,FL APR 2 0 2016 SEVERN TRENI ENVIRONMENTAL E'.1 RVICES,INC. •FF0 P MONK � . 0 Rev Dr Martin Luther King Jr Building•Collier Government Complex•3295 Tamiami Trl E fr Naples FL 34112-5758"'°" Telephone:239/252-8450•Fax: 239/774-9468 1 Heritage Bay CDD Severn Trent Services Field Management Report Site Inspection - 3/31/16 &4/21/16 1. Lake Management:The water level has dropped in the various lakes and the outfalls were not flowing as of 4/21/16.Overall the lakes look very healthy and the littorals are being managed well. Many of the immature lake bank palms have been cut down as requested,however, much of the thalia remains. Additional lake maintenance information is found below,all lake issues are low density unless otherwise noted. A ��; wsi •�^h ysvj -,, :lot 1;1%, 0, ',),-,,,'; f - « .k �• , ,;•. ' ryes V�r- ;" -.a 'ja'fC:, 14 . .te , .,r-w-4.';:-,_" ,.:� + ;t' • 'ts i, ," ' r 4 - MLa . yxeg :a�.;advr:a . a. Algae on Lakes: 4, 10, 19, &23. b. Littorals:The littorals are continuing to thrive in the various lakes and grow more abundant even with the extended high water season. (Lakes 13 &22 pictured). E44aA,` i Tr �"43y-T'n`',.il Y„ t t „ -. '' -dry . . rJ S Y TAR I c. Rocks:The weeds in the rocks on the southwest side and south bank of lake 30A should be sprayed out. gyp.' ..'r.� ` k a �' ! - '''''.'4k � ? 1MyTHT >. . t a-1 — sv '1.—,54'.1::N t � ✓� �f4 ,4� 1i4.xt 5.: tL�a ♦# �+ � z1 � m � � n ,,typ • d. Weeds: i. Alligator Weed inserved. ii. Brazilian Pepper: NoLakes:issuesNo obserissuesvedob. iii. Cattails in Lakes: 4. iv. Climbing Hemp Vine in Lakes: No issues observed. v. Dollar Weed in Lakes: No issues observed. vi. Hydrilla in Lakes: 10. vii. Illinois Pond Weed in Lakes: 5,6, 12, 19, 20,26,27,30A,&30B. viii. Red Ludwigia in lakes: 1, 2,4, 10, &15. ix. Sapatterd2ocki in lakes:Two small patches were noticed on 30A, but as of 4/21/16 they had been removed. 3/31/16 4/21/16 ..�, s y e�'PP'-!?•T„.-V171 -=-4Fti -,77—'-----:--.x.+r,. ' ,,,, .E t..r; Y a tx -c*t µ ^-..; x. Torpedo Grass in Lakes: 3, 5, 10, 15, 23, &26. e. Fish/Aquatic Life:No issues observed. f. Trash in Lakes: Minimal trash observed,no need for a clean-up. 2 g. Bulkheads: No issues observed. h. Clippings in Lakes: No issues observed. 2. Dissolved Oxygen(D.O.)Tests: The next test will be scheduled for May 2016. 3. Lake Bank Erosion: a. The bridge wall repair project is coming to a close.All quadrants have been regraded and the stones put in place. Irrigation lines were being repaired and additional rock fill was being added as of 4/21/16. z, kr^ m' ,£ �• � , i 3•.°`1e' ,, ,l ,i4^$z u»,,,,,,;:,,,,,,c,„, e " �. ��6'� 'gyp s 7��fi��y` +�'F"s>-. a � r gres 'ms's' �` �S 1, Y co�r{ 11 �. Wwf.yf�-- & (ry i'. - tf .rte tif,t b. Two erosion areas have been observed on the northwest side of lake 10. No repair is necessaryati this time, but it is something that will need to be watched and likely repaired in the future. � 1^' r�r R 3. e 2. ^6'4 5 4 d k�[.% y A ' „,,;(1,,.....4,1,v '��w`vs y}'N � �� "�'� t } tai"4w rs,,, Yom,$:^. °h ~. c. An area of erosion is formingbafromk runofflake9 from ust behind a drain west practice area on the north nof 1jthe clubhouse.ofthe Estimated costs to repair this issue are,$750.00-$1,000.00. ... ..fit , gsa�A f,,:lApi ' ;,a;, 1�' t •fin s* ” '.z :. r lv- `:�` -' ane z t y KP j to .�Y ",1,,, `� =„g; ex�Rm"a, , +47: . a. - d. There are a few areas of concern on the north bank of lake 19 in front of the practice areas.There is step erosion in this area that is greater than 3 9"and will need to be addressed at some point.There are also two areas where the bank is being eroded that should be addressed. Estimated costs to repair these issues are$3,500 00 $10,000 00 .....:...._"&.' .'rs, 4 v 5_hi Vic, 1„,A $ "..3 k'. "`y .hN. nii M� o ,.sem s ''''.'",,,:.:V.' ss. r a t-,,,,,,*�+ ,sS`'.,r e. Wave action has continued to batter the north and north west bank of lake 20.The step erosion is much greater than 9"in most areas.This is a large area that will need proper planning to repair along with suggestions from the Engineer. th ,--'''' „1:::7-,Iir9,P:z.,:;;;;i„i,iti, ,''-'''',::,';:,;',..':'':,,i;af' -' ..'": t, ..2' '.,fr. ',,:%7; , S'-' , -— i• 4 f. Now that the water is beginning to recede it is recommended that the washouts underneath the culverts on lake 22 be filled.These areas were likely created by fish during the high water period. Estimated costs to repair these areas are$500.00—$750.00. ,d , .. r F c .. H, .fp : .k:.., 4 4z- r ,a itk + s,' , '.. •# 4, 'y s'S A, , \ s 6� n. 1`,,•:1 a rte,5,. g. With the lower water levels the amount of step erosion on the north bank of lake 30A where there is no rip rap is highly visible and varies 8"— 14"+in some areas.This is a large area that will need proper planning to repair along with suggestions from the Engineer. *A . 5C -rr-. m,,, � i « fix, u f �`L f < 'Y 2 ,' 5 ''eT Y -,,.,1' .-f 1} fi f R 4 " '. '" §r„ ,1±is S <� 'a • g I 'd } A 4008 4. Storm Drainage System: a. Control Structures: i. Basin 1:Control Structure L3L10 was not flowing.Control Structure L5L6 was not flowing. ii. Basin 2:Control Structure L12L20 was not flowing. iii. Basin 3:Control Structure L25L30 was not flowing. Control Structure L27L30 was not flowing. 5 iv. Basins 4&5:Control Structure L28L30 was not flowing as designed, but water appeared to be flowing around the weir.This issue has been sent to the Engineer for comment and to see if any action is necessary.Settling was observed on the southwest corner which was opposite of the side where water was flowing. Control Structure L29L30 was not flowing. ^l, :. ..l � 3:�%i „dr! ¢ ?,: -,Z,f,-— ... r Atr ,-' a , ,,d' f `u'fir. ,li {K'' v _:/ P of r1" f, a ��� ,.. *°A-: ' V. Basin 6:Control Structure 130000O2 was not flowing. Control Structure L30000O3 was not flowing. ,-;iliii:44V0fiC'V*' ,-',"-'"< .' *4 Vi'1" LEVIIIIat n4 ,OtVIIIPr 0:::q*,*,;?,,4,,V,"1,"..1-:,, '''';YO'4,14;%,;'i,f,4bNeei."5, .,Allir Olio,' ' ' ,'“Ps :'•,. 6*114`.74/4.' 1,.4 ..,‘AiliP,OPPA,.. .,,,,,,..* .., yT(.;k 4iJ. ''(�.Y�..:. (!Zapp `fie ata op, � 'r P rG ;t", - Ya '71,.. ''''' ‘''''1'''"s•Pf., 1pow ../.e ..." '4,.'1 e 4 b. Drains: No issues observed. c. Roadway Catch Basins: No issues observed. d. Catch Basins: No issues observed. e. Inter-Connect/Drain Pipes: No issues observed. f. Illicit Discharges: No issues observed. g. Lake Drainage Pipes: No issues observed. 5. Fish/Wildlife Observations: Bass I I Bream n Catfish I I Gambusia ® Egrets ® Herons ❑Coots H Gallinules ®Anhinga n Cormorant I I Osprey _ Ibis n Woodstork Otter ®Alligators ® Snakes ®Turtles H Other Species: Ducks,Tilapia 6 6. Residential Complaints/Concerns: No issues observed. 7. Non-CDD Issues: a. SFWMD has recently cut the boundary between their land and Heritage Bay as requested. 12/16/15 4/21/16 Cy b. The Quarry CDD has removed the Brazilian pepper trees on the southwest corner of lake 30B as requested. 10/21/15 3/31/16 4y p. Y'`_ ''.'''',., ,a4 II4,j #� ,„ pt r i yy # �� fY�at ..1 �„��,.' 7 '$3a,y cm. ' ':"��" ��;4� � €� nor *� �� • .r ., ,., 7 8. Follow up items: Heritage Bay CDD Follow Up Tasks Summary Follow Up Task Reported On Assigned Action Completed Erosion on lakes 1,2,4,5,6,10,12,14,17,19,20,22,23,24,27,30A,30B 11/25/2014 Monitoring Floating Pipes lakes 2,5,7,8,9,10,11,13,14,1.7,18,19,21,24,26 9/25/2014 Repair broken pipe on lake 3 5/27/2015 Golf Course Water Level Too High Repair pipe on lake5 5/27/2015 Golf Course Completed Remove trash on the bank of lake 2 7/15/2015 Golf Course Completed Remove silt fence in tract U 7/15/2015 LaMorada Vendor Completed Field Manager Tasks Inspect video of interconnect recordings 9/25/2014 Completed Write letterto The Quarry requesting removal of Brizillian Pepper Quarry Community 10/17/2014 Completed Trees Associaiton Lake Bank Review On Going Littoral Planting Reviews On Going Erosion Restoration Site Visit Completed Contact Southwest Development regarding lake 27 repair 7/15/2015 Southwest In Progress Development CDD Contractor Tasks Remove palms on the lake banks and thalia in the lakes 1/7/2016 Lake&Wetlands In Progress Treat algae on lake 28 2/17/2016 Lake&Wetlands Completed 8 Copeland Southern Enterprises,Inc. DATE: 05/1/2016 OWNER INFORMATION: PROFESSIONAL SERVICES AGREEMENT BETWEEN COPELAND SOUTHERN ENTERPRISES,INC.AND TELEPHONE NO.: (239)245-7118/306 Fax No: (239)245-7120 Heritage Bay Community Development District in Naples E-MAIL:Justin.Faircloth(istserviccs.com, OWNER INFORMATION: PROJECT MANAGER:Scott Copeland conelandsei(n aol.com OWNER'S ADDRESS: 10154 Heritage Bay Blvd,Naples,FL 34120 FEE AND TYPE: BILL TO THE ATTENTION OF:Justin Faircloth,Assistant District Manager Thnc&Materials based upon the Rate Schedule in effect at the time service is rendered. Estimated Fees: PROJECT NAME:Control Structure L28L30 Seal Repair $ Not-To-Exceed Fixed Fee based upon the Rate WORK DESCRIPTION:Clean all 4 side of the inside of structure L28L30 within Schedule in effect at the time service is rendered: the structure seam and Install IIydralastic 836 Rubber Seal to fill gap and install an 6" X 4 ft Aluminum Plate over the top seal on all 4 side of the control structure Lump Sum Fixed Fee: $ 675.00, REMARKS: 1)All Resident and Guest will need to be notified to stay clear of the work area during the project for everyone's safety. Total Fees: $ 675.00 Dear Justin Faircloth In Pursuant to your request,Copeland Southern Enterprises,Inc.is pleased to submit the following proposal for the L28L30 repairs to Structure joint within the box for the above-referenced project: SCOPE OF SERVICES(Limited to the following): I. CSEI will set up MOT around work areas to insure the safety of the residents and guests during the project. 2. CSEI will Pressure Clean inside Seam on Control Structure L28L30 to remove Dirt and Debris before Appling 1-1-836. 3. Once Box joint has dried crews will apply Hydralastic 836 to fill inside Joint where water has been intruding. 4. After the Hydralastic 836 has cured a 6 inch wide Aluminum plate will be placed over seam and anchored to the box. 5. Crews will back fill sink hole on west side of Control Structure L28L30 and re-place Sod. 6. MOT will be removed after project has been completed and work areas have been policed. 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 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: Date: Typed Name&Title: TISI Disaster Recovery, LLC ESTIMATE ;. 1311 Indiana Aveune Recovery t L�'Saint Cloud,FL 34769 Date Estimate# 5/2/2016 EST217-3 Name/Address Heritage Bay,CDD. Severn Trent Mgmt.Services 5911 County Lakes Drive Ft. Myers,FL 33905 Description Tptal Repair gap between concrete sections in Control structure L28L30 at Heritage Bay. 550.00 Working from inside the structure,we propose to scrap off any loose material and clean away any substances from the surfaces of the concrete gap that will come In contact with the repair mortar. We will then hand-pack appropriate concrete repair mortar into the gap encircling the control structure.The material will be built up in small layers,to ensure a complete repair,until it is flush with the inside edge of the control structure wall.The mortar will then be troweled smoothed and allowed to cure. Next,the sod around the southwest corner of the structure will be cut up and set aside.We will use appropriate soil to fill and compact into the depression.We will then reinstall the sod,blending it into the adjacent sod. Total $550.00 Phone#407-891-8005 Fax# 407-891-9005 info@tsidisaster.com