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04/04/2017 AgendaNaples Heritage Community Development District Board of Supervisors ❑ Peter J. Lombardi, Chairman ❑ Peter V. Ramundo, Vice Chairman ❑ Kenneth R. Gaynor, Assistant Secretary ❑ Gerald G. James, Assistant Secretary ❑ Richard J. Leonhard, Assistant Secretary ❑ Bob Koncar, District Manager ❑ Justin Faircloth, Assistant District Manager ❑ Gregory L. Urbancic, District Counsel Meeting Agenda April 4, 2017 — 9:00 a.m. 1. Roll Call 2. Public Comment on Agenda Items 3. Approval of the Minutes of the February 28, 2017 Meeting 4. Old Business A. Preserve Area Update B. Lake Aeration C. Engineer RFQ Discussion 5. New Business A. Triploid Carp Discussion 6. Manager's Report A. Acceptance of Financial Statements B. Acceptance of FY 2016 Audit C. Discussion of FY 2018 Proposed Budget D. Follow Up Items 7. Attorney's Report 8. Supervisors' Requests 9. Audience Comments 10. Adjournment The next meeting is scheduled for Tuesday, May 2, 2017 District Office: Meeting Location: 210 N. University Drive, Suite 702 Naples Heritage Golf and Country Club Clubhouse Coral Springs, FL 33071 8150 Heritage Club Way 954-753-5841 Naples; FL . Aquatie systems.111c, Laic 4t �-i1 .July 15, 2016 Mr. Calvin Teague Naples Ileritage CDD c/o Severn Trent Management Services 5911 Country lakes Drive Fort Myers, Florida 33905 RE: Aeration Proposal Ae►•ation Maintenance Dear Mr. Teague: Vertex Water Features - -...- t ke Ar it r i Sy #c-ts 3. f a nq cilnt -tns Vertex Water Features, a division of Aquatic Systems, Inc., is pleased to offer a truly superior lake aeration system. Please find enclosed our proposal for your diffused aeration systems. With over 20 years' experience in lake management and aquatic biology, our professionals provide aeration systems constructed of the highest quality components in the industry. Proven technology, rugged dependability and high performance are the trademarks of Vertex Water Features. Our attention to detail and focus on quality insures our customers that Vertex aeration systems are the best in the business. Your systems will operate using a short -mounted compressor that will deliver air to flexible membrane diffusers, located on the lake bottom, via'/ inch self -weighted tubing. The air coming into the diffuser(s) will be broken into millions of small (1- 3mm) bubbles.. generating a lift of bottom water and creating a gentle boil at the surface. This "tuning over" of your lake will vent harmful gases such as carbon dioxide and hydrogen sulfide, while allowing the absorption of beneficial oxygen - the lifeblood of a healthy lake. Also, enclosed is an agreement for MAINTENANCE of your AERATION equipment. You will find that the benefits of this service will extend the life of your system(s) and will help prevent the high cost of repair work. If you have any questions or need any additional information, please do not hesitate to call me at (800) 432-4302. Sincerely. C(w3 N.�, Chris Byrne Sales Manager CB/dk Enclosure CORPORATE OFFICE 2100 NW 33rd Street, Pompano Beach, FL 33069 1-800-432-,1302 • Foxy 954477.7977 Vertex Water Features A Division of Aquatic Systems, Inc. 2100 N. W. 33" Street 1-800-432-4302 Pompano Beach, Florida 33069 www.vertexwaterfeatures. corn Mr. Calvin "Feague Naples Heritage CDD c/o Severn Trent Management Services 5911 Country Lakes Drive Fort Myers, Florida 33905 (239) 245-7118 Ext. 301 Date of proposal: July 15, 2016 CB -R Agreement Page 1 of 3 Fax (954) 977-7877 See Allached Technical Specifications. TAX EXEMPT: Please provide a copy ofyour Tax Exemption Certificate. We are pleased to quote special pricing below and reserve the right to progress bill" as units are instailed. Quantity Description Amount Site #4 1 HF 4XL5 VBS Aeration System Wired 115 Volt $9,115.43 Includes 2150 Feet of BottomLineTM Weighted Supply Tubing. Includes 1 Remote Valve Boxes Includes Compressor Cabinet Sound Kit Includes 140 Feet of PIP 107Z Pipe Includes 140 Feet of Trenching (Additional trenching will be priced per foot) Site #17 1 HF 4 VBS Aeration System Wired 115 Volt $8,718.46 Includes 2525 Feet of BottomLineTM Weighted Supply Tubing. Includes 1 Remote Valve Boxes Includes Compressor Cabinet Sound Kit Includes 100 Feet of PIP 107Z Pipe Includes 100 Feet of Trenching (Additional trenching will be priced per foot) Total Due 517,833.89 TAX EXEMPT The above price is effective for 6 nront/rs from the date orthis proposal. Ifyou are tax exempt, please attach a copy ofyour Tax Exemption Certificate with contract. 1. This transaction is subject to the terms and conditions quoted below, notwithstanding any conflicting provisions submitted by BUYER. 2. No claims of any kind, whether as to products delivered or for non-delivery of products, shall be greater in amount than the purchase price of the products in respect of which such damages are claimed, and failure to give notice of claim within sixty (60) days from date of delivery, or the date fixed for delivery respectively, shall constitute a waiver by BUYER of all claims in respect to such products. No charges or expenses incident to any claims will be allowed unless approved by an authorized representative of SELLER. Products shall not be returned to SELLER without SELLER's permission. The remedy hereby provided shall be the exclusive and sole remedy of the BUYER. In no event shall the SELLER be liable for loss of production, damage to materials, injury to persons, or other remote or consequential damages resulting from breach of any warranty, whether express or implied, including any implied warranty of merchantability of fitness, or from any cause whatsoever. Lamm Agreement Page 2 of 3 3. SELLER shall under no circumstances be responsible for failure or delay in filling any order or orders when due to fires, floods, riots, strikes, fi-eight embargoes or transportation delays, shortage of labor; material unavailability, inability to secure fuel, material, supplies or power at current prices or on account of shortages thereof, acts of God, or the public enemy; governmental order and/or regulations, affecting the conduct of SELLER's business with which SELLER in its judgment and discretion deems it advisable to comply as a legal or patriotic duty or to any cause beyond the SELLER's reasonable control. 4. In the event of liability, for any reason, to supply the total demands for the material specified in BUYER's order, SELLER may allocate its available supply among any or all purchasers, as well as departments and divisions of SELLER on such basis as SELLER may deem fair and practical without liability for any failure of performance which may result therefrom. 5. The BUYER may terminate this contract in whole or in part upon notice in writing to SELLER. The BUYER shall pay the SELLER the contract price for all products which have been completed prior to termination, and the cost of material or work in process, applicable taxes, plus a reasonable profit thereon, but in no event more than the contact price, or less than $25. 6. Notwithstanding the credit terms shown, all shipments are at all times subject to the approval of SELLER's Credit Department and if the financial responsibility of BUYER is or becomes unsatisfactory, or if BUYER fails to make any payment in accordance with the terms of this contract, then, in any such event, SELLER may deter or decline to make any shipment hereunder except upon receipt of satisfactory security or cash payments in advance, or it may terminate this contract. 7. SELLER warrants that the products sold hereunder shall be free from defects in material and workmanship. SELLER's liability shall be limited solely to replacement or repair, and SELLER shall not be liable for any consequential damages nor for any loss, damages or expenses directly or indirectly arising in connection with the purchase or use of the products. S. SELLER may instruct that remittances shall be sent to a hank or other receiving agency or depository. No receiving agency or depository has authority to settle claims for SELLER or to accept payment tendered as payment in full. Therefore, BAYER agrees that notwithstanding any endorsements or other legend appearing on BUYER's checks, drafts or other orders for payment of money, constitute payment in full or settlement of account. 9. Collection terms are as specified on the face of signed agreement. All amounts remaining due and owing 30 days after billing by SELLER shall bear interest at the rate of 1.5% per month until paid in full. No retainage shall be withheld from any payment involving this contract. 10. Any of the terms and provisions of BUYER's order which are inconsistent or at variance with the terms and provisions hereof shall not be binding on the SELLER and shall not be considered applicable to the sale or shipment of the materials mentioned and referred to herein. SELLER's agreement with BUYER is hereby made expressly conditional on BUYER's assent to the lei -ins and conditions hereof. Unless BUYER shall notify SELLER in writing to the contrary as soon as practicable after receipt of the acknowledgment by BUYER, acceptance of the terms and conditions hereof by BUYER shall be indicated and, in the absence of such notification, the BUYER's acceptance of the goods shall be equivalent to BUYER's assent to the terms and conditions hereof. No waiver, alteration or modification of any of the provisions hereof shall be binding on the SELLER unless made in writing and agreed to by a duly authorized official of the SELLER. Waiver by either party of any default by the other hereunder shall not be deemed a waiver by such party of any default by the other which may thereafter occur. 11. This Agreement shall be governed by the Uniform Commercial code as adopted in the State of Florida, in the United States of America and as effective and in force on the date of this Agreement. Any action for breach of the agreement must be commenced within one (I ) year after the cause of action has occurred. 12. "Phis contract is not assignable or transferable by BUYER, in whole or in part, except with the written consent of SELLER. 13. Any errors appearing on the face hereof or incorporated herein are subject to correction with the consent of both parties. ULM Agreement Page 3 of 3 14. This contract may be amended or modified only by a written agreement signed by in authorized official of each party expressly referring to this contract. 15. We reserve the right to progress bill as units are installed. 16. In the event of any dispute arising hereunder, the prevailing party shall be entitled to an award of reasonable attorney's fees and court costs against the non prevailing party including appellate level. 17. The sole and exclusive jurisdiction and venue for the determination of any disputes arising hereunder between the parties hereto shall be the 17th Judicial Circuit in and for Broward County, Florida and the undersigned agrees that said covet shall have jurisdiction over the undersigned for determination of any disputes between the parties to this agreement. Buyer's Responsibilities CUSTOMER to provide final voltage as specified above to completed compressor at lakeside. CUSTOMER will be responsible for the supply, trenching and installation of the power to the compressor cabinet. PERMITTING: It is the PURCHASER's obligation to secure required permits and/or approvals from local authorities prior to installation of the diffuser. WARRANTY: VERTEX will repair or replace, from date of install_ any defective pails for a period of 3 years and diffuser unit 5 years. Please provide the legal name and address of the owner of the property where the contracted work will be completed. Sign and print your name. The information below will be used to file a Notice to Owner (NTO) of the property. This formal notice is a standard procedure and explains that the owner is responsible for payment of the contracted services. ]f the Vertex Water Features invoice is not paid within 60 days from the completion of the work a lien may he filed against the owner of the property. Property Owner(s): Owner Address: OwnCr Phone It: Vertex Water Features' Signature Date Authorized Customer's Signature Title Print Name Date Print Com hang Name Agreement Page 1 of 3 Vertex Water Features A Division of Aquatic Systems, Inc. 2100 N.W. 33`d Street 1-800-432-4302 Pompano Beach, Florida 33069 Fax (954) 977-7877 www.vortexwaterfealLires.com Aeration Maintenance Agreement This Agreement made the date set forth below, by and between Vertex Water Features, a division of Aquatic Systems, Inc., a Florida Corporation, hereinafter called "Vertex", and Mr. Calvin Teague One -Year Agreement - Automatic Renewal Naples Heritage CDD Semiannual Visits c/o Severn Trent Management Services 5911 Country Lakes Drive Fort Myers, Florida 33905 Start Date: (239) 245-7118 Ext. 301 Date of proposal: July 15, 2016 CB -R hereinafter called "Customer". The parties hereto agree as follows: 1. Vertex agrees to perform aerator maintenance in accordance with the terms and conditions of this Agreement at the above-named site. 2. SEMIANNUAL (2) maintenance visits, as required (approximately once every 180 days). 3. CUSTOMER agrees to pay Vertex, its agents or assigns, the following sum for aerator maintenance: Two (2) Vertex Aeration Systems: 5341.00 Semiannually Site 44: One (1) IIF 4XL5 VBS Site 417: One (1) HF 4 VBS Includes Management Reporting TAX EXEMPT Our service includes the maintenance of the following: ... ........... .. ............ ... ......... ... .. ........ .. ............ .... ........... ..-.-...._ Compressor Services .......... ............... ......... .... ..... QmetAirT"' Cabinet Services .... -- -- -- - - ---- ♦ Replace compressor head gasket piston cups and/or ♦ Inspect and lubricate cooling fan. vanes, as needed to maintain required air volume & ♦ Remove excessive grass/weed growth from around pressure output. compressor cabinet(s) to maintain optimal air flow and ♦ Adjust air manifold and pressure relief valves to insure operating temperatures. optimal performance. ♦ Application of fire ant bait around cabinet, if necessary. ♦ Replace external air filter twice per year. ♦ Clean cabinet interior. ♦ Replace internal air filters once per year. ♦ Lubricate cabinet hinges and barrel lock. ♦ Clean muffler assembly and filter. ♦ "fest and reset GFI circuitry. ♦ Check and adjust compressor, CFM and PSI calibrate pressure relief valve. Ai Station'"' Diffuser Services BottomLine'"' Air Line Services ♦ Flex clean and adjust each AirStationTm diffuser assembly, j ♦ Inspect and repair, airline supply tubing and fittings. for proper air flow and optimal performance. -- — --- - ---- - ------ No parts or special repairs are included in our service other than those parts specified above Additional repairs will be invoiced separately, By charging for maintenance, Vertex does not assume responsibility for parts failure and repair costs not covered above Theagave price is effective for h months from the date of this proposal. Tax E.rempt. If you are lax exempt, please provide a copy ofyour Tax Exemption Certificate. 1. If CUS'l OMER requires ASI to enroll in any special third -party compliance programs invoicing or payment plans that charge ASI, those charges will be invoiced back to CUSTOMER. 2. This transaction is subject to the terms and conditions quoted below, notwithstanding any conflicting provisions submitted by BUYER. 3. This Agreement shall have as its effective date the first day of the month in which services are first rendered to CUSTOMER. If this maintenance agreement is part of a corresponding installation agreement, the maintenance 0vVXVF Agreement Page 2 of 3 services will not begin until the installation is complete. If this is the case, then a notice will be sent to confirm commencement of' service. 4. Customer agrees that the services to be provided are for the benefit of CUSTOMER regardless of whether CUSTOMER has direct legal ownership of the work areas specified. hn the event that CUSTOMER does not directly own the areas where services are to be provided, CUSTOMER warrants and represents that he has control of these areas to the extent that he may authorize the specified services and agrees to hold VERTEX harmless for the consequences of such services not arising out of VERTEX sole negligence. 5. Neither party shall he responsible in damages, penalties or otherwise for any failure or delay in the performance of any of its obligations hereunder caused by fires, floods, strikes, riots, war, acts of God, accidents, material unavailability, governmental order and/or regulations_ Upon termination, any advance payments made for services which would have been rendered CUSTOMER after date of terminate shall include, without limitation.. increased material and transportation costs resulting from the supplementary supply conditions. 6. VERTEX, at its expense, shall maintain the following insurance coverages: Workman's Compensation (statutory limits), General Liability, Property Damage, Products and Completed Operations Liability, and Automobile Liability. 7. If at any time during the term of this Agreement, CUSTOMER feels VERTEX is not performing in a satisfactory manner, or in accordance with the terms of this Agreement, CUSTOMER shall inform VERTEX by certified mail, return receipt requested, stating with particularity the reasons for CUSTOMER's dissatisfaction. VERTEX shall investigate and attempt to cure the defect. If, after thirty (30) days from the giving of the original notice, CUSTOMER continues to feel VERTEX's performance is unsatisfactory, CUSTOMER may terminate this Agreement by giving notice ("second Notice") to VERTEX and paying all monies owing to the effective date of termination. In this event, the effective date of termination shall be the last day of the month in which said second notice is received by VERTEX. 8. VERTEX agrees to hold CUSTOMER harmless from any loss, damage or claims arising out of the sole negligence of VERTEX; however, VERTEX shall in no event be liable to CUSTOMER, or others, for indirect, special or consequential damages resulting from any cause whatsoever. 9. Collection terms are net 30 days from invoice date. In consideration of VERTEX'S providing services and/o' products, the CUSTOMER agrees to pay its statements within 30 days of the statement date. All amounts remaining due and owing 30 days after billing by SELLER shall bear interest at the rate of 1.5% per month until paid in full. The CUSTOMER also agrees to pay all costs of collection, including reasonable attorneys' fees. ASI may cancel this Agreement, If CUSTOMER is delinquent more than sixty (60) days on their account. Checks should be made payable to Aquatic Systems, Inc. 10. Automatic Extension. Upon the anniversary date, this Agreement shall automatically be extended for successive twelve month periods, unless notice of non -renewal has been received by VERTEX, in writing, at least thirty (30) days prior to the anniversary date. The anniversary date shall be the first day of the month in which services were fust rendered under this Agreement. Prices specified are firm throughout the original term of the contract; but, thereafter. VERTEX may, with thirty (30) days' pre -notification, change pricing effective upon the next anniversary date. If you do not agree with a proposed price change, you must notify us in writing within twenty-one (2 1) days after receipt of our price change notice. VERTEX shall then have the option of terminating this Agreement without penalty to you. 11. If this Agreement is signed by owner's agent, a change in agent will not void the terms of this Agreement. 12. This Agreement constitutes the entire agreement of the parties hereto and no oral or written alterations or modifications of the terms contained herein shall be valid unless made in writing and accepted by an authorized representative ofboth VERTEX and the CUSTOMER. 13. In the event of any dispute arising hereunder, the prevailing party shall be entitled to an award of reasonable attorney's fees and court costs against the non -prevailing party including appellate Level. ,VF Agreement Page 3 of 3 14. The sole and exclusive jurisdiction and venue for the determination of any disputes arising hereunder between the parties hereto shall be the 17th Judicial Circuit in and for Broward County, Florida and the undersigned agrees that said court shall have jurisdiction over the undersigned for determination of any disputes between the parties to this Agreement. Vertex Water Features' Signature Date Customer/Authorized Agent's Signature 'I itle A Division of Aquatic Systems, Inc. Print Name Date Print Company Name [maul Your Custom Vertex Aeration System Design Specifications Lake Solutions Ver. 17 May 2016 Customer Name: Contact Name: Site Name/Number: Date: Vertex Biologist: Naples Heritage CDD Mr. Calvin Teague Site 4 July 13, 2016 Sara DeBellis Surface Acres: 7.30 Perimeter Feet: 4,100 Slope Ratio Relative to 1 0.7 Average Center Depth: 8.8 Average Depth 8.5 Circulation Constraint Percentage 6.0 Total Acre Feet 61.8 Lake Volume (Gallons) 20,122,923 Monthly Influent Volume (Gallons) 0 Total Volume Requiring Aeration (Gallons) 20,122,923 GPM / XL5 AirStation 4,205 Gallons Pumped / Day 24,218,377 System Working Pressure (PSI) 11.8 Air Delivery Per AirStation at Depth(CFM) 2.6 Number of XL5 AirStations Specified: 4 Complete Turnovers / Day 1.20 Terminology Surface Acres: Total Surface Acres of Entire Water Body Perimeter Feet: Distance in Feet Along The Shoreline Around the Water Body Bottom Slope Ratio : Distance in Feet From Shoreline For Each Foot Increase in Depth Average Center Depth: Average of Depth Readings in Deepest Areas Average Depth Average Depth of Entire Lake in Feet Circulation Contraint % Reduced Circulation Due to Narrow Lake Areas, Islands, Etc. Total Acre Feet: An Acre Foot Equals One Acre One Foot Deep Lake Volume : Volume of The Entire Water Body Expressed in U.S. Gallons Influent Volume: Water Flowing into Lake that Requires Additional Aeration Capacity GPM Gallons of Water Pumped Per Minute Gallons Pumped / Day: Total Gallons of Water Pumped by All AirStations Per Day PSI Pounds Per Square Inch CFM Cubic Feet Per Minute # of XL5 AirStations: Recommended Number of XL5 AirStations For Proper Aeration Turnovers / Day: Number of Times Per Day the Entire Volume of The Water Body is Pumped From the Lake Bottom to The Lake's Surface Vertex Water Features 2100 NW 33rd Street, Pompano Beach, Florida 33069 Tel:800-432-4302 / Fax:954-977-7877 www.vertexwaterfeatures.com Copyright Vertex Water Features 2016 Your Custom Vertex Aeration System Design Specifications Lake Solutions Ver. 17 May 2016 Customer Name: Contact Name: Site Name/Number: Date: Vertex Biologist: Naples Heritage CDD Mr, Calvin Teague Site 17 July 13, 2016 Sara DeBellis Surface Acres: 5.90 Perimeter Feet: 4,200 Slope Ratio Relative to 1 1.6 Average Center Depth: 9.0 Average Depth 8.0 Circulation Constraint Percentage 0.0 Total Acre Feet 47.0 Lake Volume (Gallons) 15,323,210 Monthly Influent Volume (Gallons) 0 Total Volume Requiring Aeration (Gallons) 15,323,210 GPM Per AirStation 3,488 Gallons Pumped / Day 20,092,092 System Working Pressure (PSI) 12.4 Air Delivery Per AirStation at Depth(CFM) 2.6 Number of CoActive AirStations Specified: 4 Complete Turnovers / Day 1.31 Terminology Surface Acres: Total Surface Acres of Entire Water Body Perimeter Feet: Distance in Feet Along The Shoreline Around the Water Body Bottom Slope Ratio : Distance in Feet From Shoreline For Each Foot Increase in Depth Average Center Depth: Average of Depth Readings in Deepest Areas Average Depth Average Depth of Entire Lake in Feet Circulation Contraint % Reduced Circulation Due to Narrow Lake Areas, Islands, Etc. Total Acre Feet: An Acre Foot Equals One Acre One Foot Deep Lake Volume: Volume of The Entire Water Body Expressed in U.S. Gallons Influent Volume: Water Flowing into Lake that Requires Additional Aeration Capacity GPM: Gallons of Water Pumped Per Minute Gallons Pumped / Day: Total Gallons of Water Pumped by All AirStations Per Day PSI Pounds Per Square Inch CFM Cubic Feet Per Minute # CoActive AirStations: Recommended Number of AirStations For Proper Aeration Turnovers / Day: Number of Times Per Day the Entire Volume of The Water Body is Pumped From the Lake Bottom to The Lake's Surface Vertex Water Features 2100 NW 33rd Street, Pompano Beach, Florida 33069 Tel:800-432-4302 / Fax:954-977-7877 www.vertexwaterfeatures.com Copyright Vertex Water Features 2016 no ro T O N a N C: N O -- � a U � T a J U 0 0- N m It n m 1- w m O a Q a Q Uco m U @ c a Co (n '._ O @ c O Q m U)m TO T O U) Co > :t� m > m d CO m .1 = c o T p .m N a C NE N m .� m@ m 'i L N. O 0 C U 2- O C C O .._, j ..0.2 J. 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CD U moa a) O ¢o zQC72 2-0O0 23 w@ 2oE f -c O CL C) .L. cr.0 o �o N n @ c a) o E E ID U Q Q N @ m a _E °0 mo 0 a} C _ C CD O p CD U N L @ 0 0 m m tL Z U P �2 CO o I 0 COASTAL LIVING ELECTRICAL 12940 Express Ct., B6 Fort Myers, FL 33913 P: 239-561-3453 F: 239-561-3445 FC 13005284 Bill To Severn Trent Services Justin Faircloth 5911 Country Lakes Drive Ft. Myers, FL 33905 Phone 239-245-7118 ext. 306 E-mail justin.faireloth@stservices.com Ship To Naples Heritage New services for Lake aeration We propose to install new electrical services at two locations as follows. HERITAGE LINKS CT. - Provide and install a 100 amp electrical service on Heritage Links CT. for the lake south of. - Provide a junction box and power as needed to the lake shore side. NAPLES HERITAGE DR. - Provide and install a 100 amp electrical service on heritage Links CT. for the lake south of. - Provide a junction box and power as needed to the lake shore side. Total E-mail I Web Site Info@CoastalLivingElectrical.com I www.CoastalLivingElectrical.com I Signature Estimate Date Estimate 3/9/2017 2326 $ 11,800.00 Subject: FW: Naples Heritage CDD - 4/4/17 Agenda Item From: Gina Green [mailto:ggreeneng@aol.com] Sent: Tuesday, February 28, 2017 8:55 AM To: Faircloth, Justin <Justin.Faircloth@stservices.com> Subject: Naples Heritage Justin: I appreciate that the Board wanted to give me this opportunity, but I was just laid up with the flu and was not able to put together a resume for consideration. My work load with all my projects is so heavy and I do not think that I could add another commitment onto my plate at this time. I appreciate the opportunity. Sincerely, Gina R. Green, P.E. 3310 11t Avenue NW Naples, FL 34120 239-348-0500 866-720-4823 - FAX Naples Heritage Community Development District Severn Trent Services, Management Services Division 5911 Country Lakes Drive • Fort Myers, Florida 33905 Telephone: (239) 245-7118 • Fax: (239) 245-7120 The Evaluation Committee will first evaluate and rank responsive proposals on the criteria listed below. The criteria are itemized with their respective weights for a maximum total of 100 points. A firm may receive the maximum points or a portion of this score depending on the merit of its proposal, as judged by the Evaluation Committee. Responses shall be evaluated based upon the following criteria and weight: Qualifications/Experience of the: • Firm 30 • Individuals and sub -consultants assigned to project • Project Manager References: • Recent experience in similar work 20 • Verification and reference responses Technical: • Proposed approach and methodology 30 • Understanding of the scope of work • Management Capabilities Location Considerations: 10 • Location of office in relation to the District Presentation: 10 • Submittal quality of document/oral presentation Grand Total: 100 Naples Heritage Community Development District Engineering Screening Form ENGINEERING FIRM: Hole Montes, Inc. SCORE: I. Lake Management Experience: 1. Can you describe your experience with lake restoration efforts? Specifically, the processes you have designed or overseen. HM has prepared Lake Erosion repair plans for Beachwalk, Longshore Lakes, Fiddler's Creek CDD 1 (6 phases) & 2 (2 phases) and Lely CDD (2 phases) Currently in design phase at Lely CDD. Predominantly, the repair method utilizes geotubes and small scale lake bank erosion repairs using riprap & yard drains. We have attached project sheet on the last page of this document for more detail. 2. What problems have you encountered and how did you address them? Problem: varying depths of drop-offs. Solution: Depending on depth of erosion, specified various numbers of geotubes to be installed per area. 3. What situations have you experienced that caused delays and what did you do to address them? Geotubes were installed beginning in the dry season. Work was delayed due to rains raising the water levels. In some cases, work was completed once the lake levels dropped back to pre -rain event levels. Now, we schedule all work to be completed prior to the rainy season. 4. What do you usually recommend regarding maintenance programs to your clients? 1) Monitor lakes to determine if erosion repairs are required. If so, make recommendations regarding phasing of repairs due to budgetary constraints. 2) Small erosion areas caused by concentrated run-off should be monitored. Small scale repairs such as yard drains and/or extension of drainage pipes into the lake have proven effective. II. Prior CDD Experience: 1. How many CDD's are you the Engineer for? Firm: 12, 6 as Naples office being Responsible Location (all under direction of W. Terry Cole, P.E.). 2. What projects have you done for them? Lake erosion; stormwater management; maintenance projects including paving, drainage, striping and curb repairs. Preparation of engineer's reports to support establishment of CDDs and related construction bonds. III. Staffing: 1. Describe your current staff and how many are available to our District? 10 Civil Engineers (5 in Naples location), 2 Construction Inspectors, 2 Planners, 7 Transportation Engineers (Ft. Myers) and 6 Environmental Eng. Naples and Ft. Myers offices are networked and PE's have ability to work between offices when needed. 2. Do you have a survey team, CAD operators, Project Engineers, Project Managers? Survey Division includes: 2 - Professional Surveyors, 2 CAD Technicians and 8 field crew members. Naples Land Development Division includes 3 CAD Technicians/Designers 3 Professional Engineers, all with Project Manager experience and capacity. Who will be the main contact for your firm with the CDD? W. Terry Cole, P.E. 239.254.2000; terrycole@hmeng.com IV. Work Load: 1. What projects do you have going on now of any significance? Sienna Lakes - design and permitting, Emmanuel Lutheran Church - site design and permitting, Fiddler's Creek CDD 1 & 2 ongoing services and Lely CDD Lake Erosion Repair 2. Are there any projects you have not met the timeframe established by the client? If so, why did you miss the deadline? M V. Experience with Regulatory Agencies: 1. What projects have you met a challenge on for permitting or compliance issues and how did you resolve them? Worked with SFWMD on the Fiddler's Creek CDD Lake Erosion project in order to meet compliance issues and still be able to phase the project to meet budgetary constraints. 2. Which agencies do you work closely with and if we were to call one for a reference, who would you recommend to give you the best recommendation? HM works closely with all regulatory agencies but most often SFWMD, Collier County, FDEP and FDOT. We have processed numerous permitting projects through Collier County Growth Management to obtain fast -tracked verification process for completion of projects within Fiddler's Creek. Reference: Matt McLean, P.E., Collier County Growth Management Department Director - Development Review Division, 239-252-8279 VI. Experience with Stormwater Systems and Maintenance: 5. What projects have you been involved with that presented an interesting challenge and how did you meet it? Lely CDD Drainage issue of pipes plugged with silt. Recommended video survey of pipes and cleaning. 6. What do you usually recommend regarding maintenance programs to your clients? Routine checking of stcrmwater structures for accumulation of debris and silt, then, as needed, video survey and cleaning lines on a case-by-case ENGINEERING Experience Prior CDD Staffing- Work Load, FIRM with Lake Experience Ability of Location, Ability to Management Personnel Meet Time & Budget Requirements Experience with Regulatory and Permitting Agencies Experience TOTALS with Stormwater Systems and Maintenance Rate each 1 - 3, lowest score reflect best in each category. Lake Erosion is a growing concern throughout southwest Florida and the entire state. Erosion has affected most developments, homeowner associations, private and public property, and golf courses throughout Florida and is an issue that needs to be taken seriously. Lake bank erosion is caused by a variety of natural factors that include: • Continuous change in water elevation due to the change of seasons • Strong winds can cause waves that damage the shoreline • Stormwater runoff causes damage without proper drainage, especially when lake levels are low and the shoreline is exposed • Fish, such as the armored catfish, which burrow into and may cause the collapse of lake banks In our work with the Fiddler's Creek CDDs, Hole Montes, Inc. (HM) provided an inventory of lakes/repairs needed as well as design, bidding and construction inspection of repair areas. The work was phased so as to accommodate budget constraints and has covered approximately 30 lakes throughout the community. Currently, HM has coordinated completion of four phases for Fiddler's Creek CDD #1 and 3 phases for Fiddler's Creek CDD #2. HM has provided similar services for Beachwalk, Longshore Lakes, Herons Glen and other developments. Collier County, Florida CLIENT: FIDDLER'S CREEK CDD #1 AND #2 DISCIPLINES: CIVIL ENGINEERING PERMITTING SURVEY CEI KEY PERSONNEL: W. TERRY COLE, P.E. THOMAS M. MURPHY, PSM MICHAEL RODDIS START DATE: 2011 COMPLETION DATE: CONSTRUCTION 2016 950 Encore Way Naples, Florida 34110 239.254.2000 6200 Whiskey Creek Drive Fort Myers, Florida 33919 239.985.1200 SCHEDULE B: RATE SCHEDULE Title Standard Hourly Rate Principal $ 206.00 Senior Project Manager $ 172,00 Project Manager $ 147.00 Senior Engineer $ 157.00 Engineer $ 123.00 Senior Inspector $ 96.00 Inspector -- $ 76.00 Senior Planner $ 139,00 Planner $ 110.00 Senior Designer $ 114,00 Designer $ 94.00 Environmental Specialist $ 109.00 Senior Environmental Specialist $ 134,00 Scientist/Geologist $ _.__93.00 Senior Scientist/Geologist $ 118.00 Marine Biologist/Hydrogeologist $ 110.00 Senior Marine Biologist/Hydrogeologist $ 138,00 Senior GIS Specialist $ 139,00 GIS Specialist $ 102,00 Clerical/Administrative _ $_ 62.00 Senior Technician $ 85.00 Technician $ 72,00 Surveyor and Mapper $ 120.00 CADDTechnician $ 81.00 Survey Crew - 2 man $ 130.00 Survey Crew - 3 man $ 161.00 Survey Crew - 4 man $ 189.00 Senior Architect $ 154,00 Architect $ _ 121,00 This list is not intended to be all inclusive. Hourly rates for other categories of professional, support and other services shall be mutually negotiated by Collier County and firm on a project by project basis as needed. }3-1 Naples Heritage Community Development District Engineering Screening Form ENGINEERING FIRM: CPH, Inc. I. Lake Management Experience: SCORE: 1. Can you describe your experience with lake restoration efforts? Specifically, the processes you have designed or overseen? CPH's lake restoration efforts experience has been to maintain aesthetically pleasing and healthy lakes throughout a property. CPH's experience includes the following processes water quality monitoring and recommendations for improvements design of wetlands and lakes including permitting construction administration planting and monitoring restoration of wetlands and lakes modifications to improve the efficiency of a system and routine maintenance reviews inspections and recommendations. The following is a list of proiects that CPH has performed Lake Manaaement Services for CDD's: Heritage Bay CDD -_Water Quality Monitoring for Lakes: Habitat CDD — District -Wide Lake Management and Erosion Control Study: Rivenwood CDD — Lake Study Evaluation 2. What problems have you encountered and how did you address them? A client was having an issue with the appearance of the lake system CPH educated the Client on the function of lakes and provided a recommendation to assess the issue CPH proposed water quality monitoring to get an understanding of the lake chemistry. Based on the water quality sampling results CPH recommended the addition of aeration and enzyme treatments to counteract the rise of Chlorophyll a caused by activities such as vegetation management During the sampling events CPH's scientist observed several items that could be contributing factors such as non-functioning structures erosion etc. What situations have you experienced that caused delays and what did you do to address them? When CPH makes recommendations to our Clients we also take into consideration their schedules for meetings and budgeting. In order to ensure we perform to client expectations it is important to address calendar and budgeting issues with the Client at the Kick-off Meeting CPH has avoided delays in the past by advising the Client to perform construction related proiects in the dry season to prevent rain delays and working in high water conditions 4. What do you usually recommend regarding maintenance programs to your clients? Every system is different and requires an understanding of how the system works to properly advise our Clients of a course of action that is efficient and economical However, the first item to recommend or check is if the system is performing as designed. If there is an issue in how the system functions then the issue should be addressed/corrected to determine if that was the problem. With the problem described in Question #2 above CPH recommended water quality sampling to determine if the problem with clarity and algae could be identified prior to implementing a costly maintenance dredging project After lake sampling to establish a baseline quarterly water quality sampling was recommended to give data to reflect seasonal variation and annual trends. II. Prior CDD Experience: 1. How many CDD's are you the engineer for? CPH Currently Serves five (5) CDD's providing identical services We have a proven team with a successful approach which will be directly applied to the Naples Heritage CDD's proiects. Client Contact Name Address Phone Riverwood CDD Molly Meadows 210 N. University Dr. Suite 702 Coral Springs, FL 33701 954.7535841 Heritage Bay CDD Justin Faircloth 5911 Country Lakes Dr. Fort Myers, FL 33905 239.245.7118 Habitat CDD Calvin Teague, District 1922 Victoria Ave. Suite B, Fort Myers, FL 33901 239.690.7100 Manager Dunes CDD Tim Sheahan, Utility 5000 Palm Coast Pkwy SE, Palm Coast, FL 32137 386.445.9045 Manager Palmetto CRA Jeff Burton, CRA 715 40' St. West, Palmetto, FL 34221 941.723.4988 Director What projects have you done for them? CPH has completed numerous proiects including roadway resurfacing (micro traditional mill & resurface) LED roadway lighting evaluations traffic signal design intersection safety analysis storm water pond evaluations (water quality, erosion Water Management District certifications) energy evaluations for existing clubhouse structures water line analysis and modeling (pressure & capacity) irrigation modeling and specification development wastewater treatment odor control and construction administration. III. Staffing: 1. Describe your current staff and how many are available to our District? CPH currently has over 230 staff members in our sixteen (16) offices with three (3) offices nearby (Ft. Myers Tampa and Sarasota). The staffing capacity of these offices equals (28) and all are available to work on the District's proiects 2. Do you have a survey team, CAD operators, Project Engineers, Project Managers? Yes CPH has a full survey team available to assist on proiects In fact CPH is a full -services A/E firm able to deliver architecture, engineerinq (civil structural and utilities) master planning water/wastewater/reclaimed/stormwater systems hydraulics and hydrology, environmental sciences transportation engineering, including traffic planning and design land planning/zoning, construction engineering and inspection/construction management and surveying and mapping. 3D Survey Services — CPH takes pride in implementing the latest survey technologies We believe excellent designs start at the inception with a thorough understanding of existing conditions As such CPH has been leading the survey industry with the use of 3D laser scanners since 2005 We have been pioneers in utilizing this technology to perform complex surveys and the benefits of selecting CPH's High Definition Survey program includes direct field cost savings schedule reductions and increased safety, CPH has been at the forefront of this technology and recently upgraded to the Leica Scan Station C10 and Leica Scan Station P20 Our laser scanners collect up to one million points a second at an unparalleled rate of speed which produces a very dense and accurate collection of measurements Our team is higher on the learning curve and can produce information in 2D and 3D formats which are dependable and provide detailed information of existing conditions. eNNEil .r s :t , Administrative 29 3 Civil Engineer 49 Construction Inspection 6 1 D(at#smen Landscape Architects 4 Mechanical Engineer 2 Planner 5 1 Sanitary Engineer 3 Struclural Engineer 1 Surveyor H Transportation Engineer S 2 Environmental Engineer 13 EngineeringiCADD Techs 15 7 Engineering interns 16 5 Network Admin 6 Technical Assistants 19 1 Environmental Scientists 5 Architects TOTAL 230 28 Who will be the main contact for your firm with the CDD? Joshua D. Lockhart. P.E., LEED AP, 239.332.5499 - Mr. Lockhart serves the firm of CPH as Vice President and Branch Manager of the Fort Myers Office Josh is a Project Manager/Project Engineer for municipal and private clients. He is an excellent leader with traits that include communication vision creativity, and consistency. His communication style is based on listening to client needs and helping them achieve the intended result and providing them with solutions that meet all of their goals He works as an extension of our Client's staff and is able to freely share ideas and concepts to provide clients with the best product and service Consistency is the key to long term success and Josh has proven time after time to be a consistent responsible steward of our clients' capital improvement projects. He has over 9 years of experience and has served as a proiect manager on over 296 projects, Josh has worked with Habitat CDD, Heritage Bay CDD and Riverwood CDD. IV: Work Load: 1. What projects do you have going on now of any significance? Cape Coral 47"" Terrace Streetscane Englewood/Maintenance Office and Warehouse Heritage Bay' Lake Bank Restoration Heritage Bay' Quarterly Water Monitoring Habitat CDD: Feasibility Study for Reclaimed Water Pelican Landing Marina Renovation Plan Schottenstein — Coral Walk Stormwater Certification 2. Are there any projects you have not met the timeframe established by the client? If so, why did you miss the deadline? schedules and budgets through various proiect management and scheduling software including time management software that gives our proiect managers access to real-time project charges and budget comparisons As a result of the wealth of knowledge and staffing at the firm the team is able to pull additional help to ensure the services are provided in a timely manner in the event additional help is needed to stay on schedule. CPH takes pride in meeting our client's timeframes and routinely meets or exceeds our clients' expectations. That said there are instances where projects get out on hold or pet delayed due to unforeseen circumstances. These can include permit agency review delays, new technology with the Proiected impacts and potential solutions. V. Experience with Regulatory Agencies: 1. What projects have you met a challenge on for permitting or compliance issues and how did you resolve them? We maintain strong relationships with various regulatory agencies and have a working knowledge of the environmental criteria and regulations at the local state and Federal levels The City of Titusville Area IV Well Outfitting & Raw Water Transmission Main project had a compressed schedule as Federal stimulus dollars were critical in the project's financing CPH coordinated with FDEP and the ACOE to identify and approve the wetland delineation immediately. By doing this the engineering plans could be reviewed to identify wetland avoidance, 2. Which agencies do you work closely with and if we were to call one for a reference, who would you recommend to give you the best recommendation? CPH works with the Florida Department of Environmental Protection (FDEP) the five Water Management Districts US Fish and Wildlife Service, the Florida Fish and Wildlife Conservation Commission the NRCS the US Army Corps of Engineers and local and municipal governmental agencies on a weekly basis for various projects and permitting matters As a reference you may contact Brian Rase — Section Leader South Florida Water Management District, 239-338-2929. VI. Experience with Stormwater Systems and Maintenance: What projects have you been involved with that presented an interesting challenge and how did you meet it? Most stormwater issues experienced are related to bank erosion and infrastructure discrepancies from design plans. We have experience with several techniques to address erosion including stabilization armorment geotubes littoral shelves etc Additionally, we locate the point source of the erosion as applicable to locate potential continuous or future issues. 6. What do you usually recommend regarding maintenance programs to your clients? Visual inspection is paramount to gather information for specific issues and to pick up on potential future issues before they become a problem (brokenimalfunctioning water and irrigation lines channelized flow points clogged drainslinlets/pipes). We also recommend periodic inspection after heavy rain events to check lake levels and control structure flow. ENGINEERING Experience FIRM with Lake Management Prior CDD Staffing— Work Load, Experience Experience Experience Ability of Location, Ability to with with Personnel Meet Time & Regulatory Stormwater Budget and Systems and Requirements Permitting Maintenance Agencies TOTALS Rate each 1-3, lowest score reflect best in each category. Category Rate Plots (B&W) Principal 160 Senior Project Manager 150 Project Manager 140 Professional Engineer 130 Senior Project Engineer 125 Project Engineer 115 Project Designer 110 34 X 22 $ 0.83 Each Principal Traffic Engineer 160 Senior Traffic Engineer 135 Traffic Engineer 115 Traffic Analyst 105 8.5 x 14 $0.30 Each Principal Environmental Scientist 160 Senior Environmental Scientist 125 Lead Environmental Scientist 105 Environmental Scientist $95, GIS Analyst 105 Arborist 125 24 x 36 $24.00 Each Principal Planner 160 Senior Planner 130 Planner 100 Construction Field Personnel 1 80 Principal Architect 160 Senior Architect 140 Senior Architectural Man a er 130 Architect 125 Senior Architectural Designer 120 Architectural Designer 105 Architectural Coordinator 85 Field Crew Coordinator 95 Principal Structural Engineer 160 Senior Structural Engineer $140. Structural Engineer 115 Surveying CADD Tech 75 Principal MEP Engineer 160 Senior MEP Project Engineer 140 MEP Project Engineer 115 MEP Project Designer 110 MEP Design Technician 995 Category Rate Plots (B&W) Principal Landscape Architect 160 Senior Landscape Architect 125 Landscape Architect 105 Senior Landscape Designer 100 Landscape Designer 85 15 X 21 $ 0.35 Each Project Coordinator 90 34 X 22 $ 0.83 Each Senior Design Technician 105 Design Technician 95 Senior CADD Technician 85 CADD Technician 75 8.5 x 14 $0.30 Each Administrative 75 Clerical 11 60 Clerical 1 40 Mylars Senior Graphic Designer 125 Graphic Designer 75 24 x 36 $24.00 Each Senior Construction Manager 120 Construction Manager 105 Construction Field Representative 11 100 Construction Field Personnel 1 80 Principal Surveyor 160 Senior Professional Surveyor 130 Professional Surveyor and Mapper 125 Field Technician/Designer 105 Surveyor in Training 100 Survey Project Manager/CADD $100, Field Crew Coordinator 95 Survey Party Chief 75 Survey Instrument Man 65 Survevina Sr CADD Tech 90 Surveying CADD Tech 75 Survey Crew 2 Man 135 Survey Crew Construction Staking - 2 Man 160 Survey Crew 3 Man GPS 1 Man / Robotics GPS 2 Man 1265 1 Man Scanner/Laser SurveyCrew 2 Man Scanner/Laser Surve Crew Schedule of Reimbursable Charges Copies (B&W) Plots (B&W) 8.5 x 11 $0.05 Each 11 X 17 $ 0.21 Each 8.5 x 14 $0.10 Each 12 X 18 $ 0.24 Each 11 x 17 $0.20 Each 15 X 21 $ 0.35 Each 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 $0.35 Each Mylars Plots (Color/Bond) 24 x 36 $9.00 Each 24 x 36 $24.00 Each 32 x 42 $13.00 Each 30 x 42 $35.00 Each 36 x 48 $48.00 Each Mileage At Current IRS Rates Phone At Cost Postage At Cost Outside Reimbursables At Cost Billing and Reimbursable Rates Are Subject To Periodic Review and Adjustment. Updated: May 25, 2016 CPR's approach to providing services to Naples Heritage Community Development District (CDD) will be a collaborative effort between the consultant team, Naples Heritage CDD staff, departments, officials and the public. Excellent communication protocols will be established between all parties to develop an understanding of the CDD's goals and budget to assist in the development of specific scopes and schedules to complete projects assigned through the Professional General Engineering Services contract. Critical attention will be focused on the planning, conceptual design, implementation, maintenance, quality assurance, communication and management of each assignment assuring that completed projects exceed expectations. Maintenance is a topic rarely mentioned, but of paramount importance. The cost of operating and maintaining facilities will be considered throughout the design process for all projects assigned. By being aware of the conditions which impact maintenance operations including the expertise of staff, available equipment and the location of facilities, maintenance programs can be developed to achieve the desired results. CPH understands that the Naples Heritage CDD is seeking a qualified engineering consulting firm to provide on- going consulting services involving engineering, surveying, planning, environmental management, permitting, financial or economic feasibility studies, stormwater management and other infrastructure and civil type projects for the District. CPH will provide the CDD with unmatched expertise and resources for projects under this contract. CPH can provide the CDD with services required for the design/construction/repair of identified project(s) which may include, but not limited to, conferences, consultation and preparation of studies, working drawings, preliminary design, specifications, estimates, drawings, modeling, design, drafting of bids/proposals, construction administration, cost planning, inspection, testing, site analysis, bidding/selection recommendation, presentation/ recommendation to Staff, etc. Our resumes and the professional histories of the various team members clearly demonstrate a vast and broad background of experience which will be effectively applied to the CDD's benefit. CPH is highly qualified to provide continuing services for the Naples Heritage CDD projects. The following outlines our past successful approach that has been implemented on services projects. Each project is unique, and this approach would be refined per project requirements. Phase I — Initiation • Initial Request — The CDD provides CPH with a request for professional services for a specific project. • Project Team Assembled — Based upon project requirements, the Project Manager will assemble the appropriate professional disciplines and staff. • Proposal Meeting — The project manager will schedule a Proposal Meeting to meet CDD staff to review the project scope of work, goals, design criteria and constraints. • Definition of Scope and Notice to Proceed — Based upon the information gathered during the proposal meeting, a defined scope of work and proposal with a time and fee schedule will be prepared. This proposal will be submitted to the CDD for review, comment, and execution. Work will begin immediately upon a written notice to proceed. Phase 11— Analysis and Due Diligence • Collected Data — Review and study the collected drawings and documents supplied by the CDD and others for incorporation into the design process. • Codes and Standards — Review and study related jurisdictional codes and standards as they pertain to the project classification. • Site Survey — Pursuant to project requirements, obtain boundary and/or topographic survey information and prepare a survey based on State Plane, NAD 83 and vertical coordinates based on NGVD. • Utilities — Obtain utility services information for inclusion on the site survey drawing. • Tree Survey— Obtain tree survey information when required. • Wetlands— Establish and survey jurisdictional wetland boundaries when required. • Soils Analysis — Review and study available soils maps and data. • Hydrology Study— Prepare existing condition hydrology study when required. • Environmental Impact Study— Prepare phase 1 Environmental Impact Study when required. • Space/Needs Analysis — Meet with CDD staff to determine space/needs requirements for building improvements and prepare a written report for review and comment. • Program Development — Meet with CDD staff and other interested parties such as athletic associations or leagues, user groups, seniors, etc. to gather and prioritize project program elements. • Site Analysis Documents — Prepare drawings and/or reports summarizing the investigative findings. • Presentation — The Site Analysis Documents, Space/Needs Analysis and/or Program Development priority list will be submitted and presented to the CDD for review and comment. Phase III — Conceptual Design Services Based upon the CDD's response to the presentation element, CPH will prepare design concepts for the proposed project. Based on the CDD's comments and input from any required public meetings, CPH will prepare a final conceptual plan for acceptance by the CDD. Phase IV — Design Development • Based on the approved conceptual design, CPH will prepare project drawings and documents that will be approximately 60% complete. Drawings will be as required by the project type and may include, architectural, structural, civil, mechanical, electrical, plumbing, and/or landscape packages. CPH will compile a Project Status Report, based on the accomplishments of the preliminary services. The drawings will be submitted to the CDD for review and comment. • When appropriate to the project, CPH will prepare a drawing indicating soil boring locations for geotechnical testing. This information will be submitted with the preliminary plan for review and authorization to proceed with geotechnical testing. • CPH will customize our construction cost -estimating documents for the project and will prepare a preliminary cost estimate. The cost documents will be used throughout the project to monitor construction cost and to attach costs to various alternatives. • CPH will meet with the necessary regulatory agencies and conduct a "pre -submittal" presentation. The project alternatives will be presented and we will gain knowledge of the agencies' concerns and expectations. • CPH will prepare and submit a preliminary technical specifications package based on the 60% package. Phase V — Construction Documents Services • CPH will incorporate comments obtained from the CDD's review, the public involvement process, our internal review and regulatory agencies into the project design to finalize the construction drawings. • CPH will refine the design and the Project Status Report will be revised to include progress of the project and delineate issues of concern, and decisions that need to be made. • The cost estimate will be updated and revised to reflect changes to the plan. • A permitting package will be prepared and sent to all of the regulatory agencies. Meetings will be conducted with the regulatory agencies and their comments will be addressed and incorporated into the drawings. • 90% construction drawings, specifications and cost estimate, will be submitted to the CDD for a second review. • Upon approval of the 90% per construction documents and receipt of the comments from the CDD, the public, our internal review and the regulatory agencies, the 100% construction documents will be finalized and submitted to the CDD for bidding. • The cost estimate will be updated based on unit price bid quantities. Phase VI — Bidding Services • CPH will assist the CDD in preparing bid advertisements and packages. • CPH will provide the CDD with the interpretation of the intent of the construction documents throughout the bidding process. All responses to questions will be recorded in writing and distributed to the CDD and prospective bidders. • During the bid process, if requested by the CDD, a pre-bid meeting will be conducted with prospective bidders to receive questions and comments. CPH will respond to all questions and comments in writing via the issuance of an addendum. • CPH will revise the bid documents and prepare bid addenda as required. • CPH will be present for the bid opening and will assist the CDD in evaluating all bids submitted, including compliance with the construction documents, project budget, ability of the contractor to perform the work, etc. • Based on the review of the bids and contractor qualifications, CPH will recommend the lowest qualified bidder to the CDD. Phase VII — Construction Administration Services During construction, CPH can provide construction administration services to represent the CDD as its Contract Administrator for projects as agreed upon with the CDD. Specific services typically include: • The interpretation of drawings and specifications and issuance of instructions to the contractor performing the work. • The review and approval of contractor's submittals. • Periodic construction reports, based upon site inspections. Construction observation forms will be completed by the CPH representatives and will be included in the reports. Issues of special concern will be promptly identified and the Project Manager and the CDD will be notified. The frequency of inspections will be based on project requirements and determined in the scope of work specific to each project. • Issue field directives, respond to contractor's request for information (RFI), issue supplementary instructions and clarifications and negotiate change orders as required. • Review monthly contractor pay requests and supporting data, based on field observation visits, review of test results and contractors performance and recommend approval or disapproval to the CDD. Record construction drawings will also be reviewed with pay requests to insure the contractor is keeping up with recording modifications to the drawings. • Make a substantial completion inspection and develop a punch list of items that the contractor is to complete in order to receive final payment. • Make a final inspection to insure the punch list items have been completed to the satisfaction of the CDD. Upon the successful completion of the punch list items by the contractor, CPH team members will review the final pay request and support data for recommendation to the CDD. • CPH will receive the record construction drawings from the contractor and incorporate the information provided into record as -built drawings. • CPH will conduct a warranty inspection after eleven months from final acceptance of the project, and submit a written report and/or punch list of items needing attention. Location Map CPH TAMPA 5601 MARINER STREE TAMPA, FL 33609 Lakewood Ranch CPH FT MYERS 2216ALTAMONTAVENUE FT, MYERS, FL 33901 4 _ Habitat CDD h Hat#tage Bay Coo max,: NAPLES HERITAGE CDD ' 8150 HERITAGE CLUB WAY) NAPLES FL 34112 CPH has eleven (11) offices in the State of Florida with support of approximately 230 personnel throughout the company to assist in the projects for the District. The District will have the direct commitment of the CPH Ft. Myers Office located at 2216 Altamont Avenue, Ft. Myers, FL 33901. The Ft. Myers office is staffed with employees that include registered personnel, administrative staff, and owners of the firm to accomplish the projects on time and within budget. The map above shows the District along with CPH's local offices and local CDD Clients. This graphic clearly displays the team's local CDD clients and speaks volumes regarding the team's ability to sere the District under this important cantract. NAPLES HERITAGE Community Development District Financial Report February,?8, 2017 Prepared by NAPLES HERITAGE Community Development District Table of Contents FINANCIAL STATEMENTS BalanceSheet ......................... . ... ..... I ........... I ... ....... Page 1 Statement of Revenues, Expenditures and Changes in Fund Balances General Fund ...... ....... ................ ................. I.......... Page 2 SUPPORTING SCHEDULES Non -Ad Valorem Special Assessments .-_ ------ .............................................. Page 3 Cash and Investment Balances......................................................... Page 4 CheckRegister ... ....... .... ................................... ..... I.. Page 5 NAPLES HERITAGE Community Development District Financial Statements (Unaudited) February 28, 2017 NAPLES HERITAGE Community Development District Balance Sheet February 28, 2017 ACCOUNT DESCRIPTION ASSETS Current Assets Cash - Checking Account Investments: Money Market Account Total Current Assets TOTAL $ 76,229 26,699 102,928 TOTAL ASSETS $ 102,928 LIABILITIES Current Liabilities Accounts Payable Accrued Wages Payable $ 2,756 1.077 TOTAL LIABILITIES 3,833 FUND BALANCES Assigned to: Operating Reserves Unassigned: 19,200 79,895 TOTAL FUND BALANCES $ 99,095 TOTAL LIABILITIES & FUND BALANCES $ 102,928 Genera! Fund Report Date: 3/21/2017 Page 1 NAPLES HERITAGE Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28, 2017 ANNUAL YTD ACTUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE ($) AS A % OF FEB -17 FEB -17 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ADOPTED BUD BUDGET ACTUAL REVENUES 3,000 3,000 383 230 230 1,000 - Interest - Investments $ 100 $ 42 $ 121 $ 79 121.00% $ 8 $ 36 Interest - Tax Collector - - 4 4 0.00% - 4 Special Assmnts- Tax Collector 79,897 75,397 73,225 (2,172) 91.65% 4,000 4,950 Special Assmnts-Discounts (3,196) (3,149) (2,794) 355 87.42% (250) (121) TOTAL REVENUES 76,801 72,290 70,556 (1,734) 91.87% 3,758 4,869 EXPENDITURES Administration P/R-Board of Supei visors FICA Taxes ProfServ-Engineering ProfServ-Field Management ProfSery-Legal Services ProfServ-Mgml Consulting Serv, ProfServ-Property Appraiser Auditing Services Postage and Freight Insurance - General Liability Printing and Binding I egal Advertising Misc-Bank Charges Misc-Assessmnt Collection Cost Misc-Contingency Misc-Web Hosting Office Expense Annual District Filing Fee Total Administration Field Misc-Contingency Total Field 5,000 3,000 3,000 383 230 230 1,000 - - 750 - - 2,000 2,000 2,145 20,688 8,620 6,896 1,199 1,199 1,199 3,000 - - 1,500 625 280 9,239 9,239 8,101 650 271 95 2.500 716 716 620 258 262 1,598 1,479 1,427 376 - - 600 250 250 410 171 66 175 175 175 51,688 28,233 24,842 15.113 15,113 - 60.00% 1,000 1,000 - 60.05% 77 77 0.00% - - - 0.00% - (145) 107.25% 700 731 1,724 33.33% 1,724 1,724 - 100.00% - - - 0.00% - - 345 18.67% 125 97 1,138 87.68% - - 176 14.62% 54 71 - 28.64% 449 449 (4) 42.26% 52 46 52 89.30% 85 97 - 0.013% - - - 41.67% 50 50 105 16.10 % 34 33 100.00 3,391 48.06% 4,350 4,375 0.00 % _ 0.00% Reserves Reserve - Roads and Lakes 10,000 _ 0.00% - Total Reserves 10,000 - 0.00% TOTAL EXPENDITURES & RESERVES 76,801 28,233 24,842 3,391 32.35% 4,350 41375 Excess(deficiency) of revenues Over (under) expenditures 44,057 45,714 1,657 0.00% (592) 494 Net change in fund balance $ - $ 44,057 $ 45,714 $ 1,657 0.00% $ _ _ _ (592) $ 494 FUND BALANCE, BEGINNING (OCT 1, 2016) 53,381 53,381 53,381 FUND BALANCE, ENDING $ 53,381 $ 97,438 $ 99,095 Report Date. 3/21/2017 Page 2 NAPLES HERITAGE Community Development District Supporting Schedules February 28, 2017 NAPLES HERITAGE Community Development District Non -Ad Valorem Special Assessments (Collier County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2017 Date Received Net Amount Received Discount (Penalties) Amount Collection Costs Gross Amount Received Assessments Levied $ 79,900 Allocation % 100% 11/03/16 $ 511 $ 10 $ 29 $ 550 11/16116 17,875 760 365 19,000 11/29J16 25,496 1,084 520 27,100 12/15/16 17,372 724 355 18,450 01/05/17 3,018 95 62 3,175 02/10/17 4,733 121 97 4,950 TOTAL $ 69,005 $ 2,793 $ 1,427 $ 73,225 COLLECTED 91.6% TOTAL OUTSTANDING $ 6,675 Report Date: 3/21/2017 Page 3 NAPLES HERITAGE Community Development District Cash and Investment Balances February 28, 2017 ACCOUNT NAME BANK NAME YIELD MATURITY BALANCE GENERALFUND Checking Account - Operating SunTrust 0.07% NIA $ 72,077 Money Market Account BankUnited 0.45% NIA 26,699 Total $ 98,776 Report Date 3/21/2017 Page 4 U N W ami 0 E a �- F O 0 W a) r) N � W j .j E a a o Z U N Z N m LL J J j W �y Z C7 � Z O w Z W z 0 o Z w rnLL N O N w � U 0 S O F Z m 0 N � a Page 5 I- 0 O M D N N � N N Y U d L U # 'O c � � a o o a u J M N f0 U 0 C) c m N Z N m LL J J j W �y Z C7 � Z O w Z W z 0 o Z w rnLL N O N w � U 0 S O F Z m 0 N � a Page 5 I- NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-5 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements: Statement of Net Position 6 Statement of Activities 7 Fund Financial Statements: Balance Sheet — Governmental Fund 8 Reconciliation of the Balance Sheet — Governmental Fund to the Statement of Net Position 9 Statement of Revenues, Expenditures and Changes in Fund Balance — Governmental Fund 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Fund to the Statement of Activities 11 Notes to the Financial Statements 12-17 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — General Fund 18 Notes to Required Supplementary Information 19 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 20-21 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 22 MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 23-24 f t ` Associates INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida Report on the Financial Statements 2700 North Military Trail • Suite 350 Boca Raton, Florida 33431 (561) 994-9299 • (800) 299-4728 Fax (561) 994-5823 www.graucpa.com We have audited the accompanying financial statements of the governmental activities and the major fund of Naples Heritage Community Development District, Collier County, Florida ("District") as of and for the fiscal year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the District as of September 30, 2016, 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 March 23, 2017, 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 March 23, 2017, 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. March 23, 2017 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of the Naples Heritage Community Development District, Collier County, Florida ("District") provides an overview of the District's financial activities for the fiscal year ended September 30, 2016. Please read it in conjunction with the District's Independent Auditor's Report, basicfinancial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS • The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $8,318,336. • The change in the District's total net position in comparison with the prior fiscal year was ($181,406), 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, 2016, the District's governmental fund reported ending fund balances of $53,382, an increase of $11,958 in comparison with the prior fiscal year. A portion of the fund balance is assigned for operating reserves and the remainder is unassigned which is available for spending at the District's discretion. • During fiscal year 2016, the District implemented Governmental Accounting Standards Board ("GASB") Statement No. 72, Fair Value Measurement and Application, GASB No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Please see New Accounting Standards Adopted in Note 2 of the financial statements for additional information. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as the introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 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. OVERVIEW OF FINANCIAL STATEMENTS (Continued) 2) Fund Financial Statements (Continued) The District has one fund category: governmental funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains one governmental fund for external reporting. Information is presented in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund. The general fund is considered a major fund. The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. 3) Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data included in the government -wide and fund financial statements. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of an entity's financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year. Key components of the District's net position are reflected in the following table: NET POSITION SEPTEMBER 30, Current and other assets Capital assets, net of depreciation Total assets Current liabilities Total liabilities Net position Investment in capital assets Unrestricted Total net position 2016 2015 $ 57,090 8,264,954 $ 43,693 8,458,318 8,322,044 8,502,011 3,708 2,269- 3,708 2,269 8,264,954 53,382 8,458,318 41,424 $ 8,318,336 $ 8,499,742 The District's net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure). These assets are used to provide services to residents, consequently, these assets are not available for future spending. The remaining balance of unrestricted net position may be used to meet the District's other obligations. GOVERNMENT -WIDE FINANCIAL ANALYSIS (Continued) 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, 2016 2015 Revenues: Program revenues $ 77,034 $ 77,063 General revenues 165 87 Total revenues 77,199 77,150 Expenses: General government Maintenance and operations Total expenses Change in net position Net position - beginning Net position - ending 45,562 42,647 213,043 230,094 258,605 272,74T— (181,406) (195,591) 8,499,742 8,695,333 $ 8,318,336 $ 8,499,742 As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2016 was $258,605. The costs of the District's activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, increased slightly in the current fiscal year. The decrease in the current fiscal year expenses is primarily the result of a decrease in maintenance cost in the current fiscal year. GENERAL BUDGETING HIGHLIGHTS An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2016. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. CAPITAL ASSETS At September 30, 2016, the District had $11,261,497 invested in capital assets. In the government -wide statements depreciation of $2,996,543 has been taken, which resulted in a net book value of $8,264,954. More detailed information about the District's capital assets is presented in the notes of the financial statements. ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND OTHER EVENTS The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact Naples Heritage Community Development District's Finance Department at 210 N. University Drive, Suite 702, Coral Springs, Florida, 33071. NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2016 LIABILITIES Accounts payable 3,708 Total liabilities 3,708 NET POSITION Investment in capital assets 8,264,954 Unrestricted 53,382 Total net position $ 8,318,336 See notes to the financial statements N. Governmental Activities ASSETS Cash $ 56,490 Due from other governments 600 Capital assets: Nondepreciable 6,122,404 Depreciable, net 2,142,550 Total assets 8,322,044 LIABILITIES Accounts payable 3,708 Total liabilities 3,708 NET POSITION Investment in capital assets 8,264,954 Unrestricted 53,382 Total net position $ 8,318,336 See notes to the financial statements N. ) \ a �( k \ f § @ w ®2k ° ® f \�2 \�\c = \e p = °k /®/ /ƒƒ z 2 [ 9—// X R ) G 3 § \ ¥ c Q ƒƒ/ / f(D o a _ m R # t 36 G,G ee z2) 0 /cu /c2 a«mom \ / ocw� Ge.g -o /R P:R a '\®) / \ k � ± % LU -j § / 7 G } - \ \k0 S //Lo &/L ^~ z2o2 / fE/Q\\ = 2 0 0 kEZ w (/`s$ §�2 ® /zz e UJ¥ o�uj LLI« $ ooe« e 2� F \ \ ? ƒ ID U) e . \ \ s (D < E \ \ 0 \ R ®9 = ` ° 0) \0((D75 m F2 / { CD § [ E _& ) \ a �( k \ f § @ w NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTALFUND SEPTEMBER 30, 2016 ASSETS Cash Due from other governments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Total liabilities Fund balance: Assigned to: First quarter operating capital Unassigned Total fund balance Total liabilities and fund balance Major Fund General Total Governmental Fund $ 56,490 600 $ 56,490 600 $ 57,090 $ 57,090 $ 3,708 $ 3,708 3,708 3,708 19,200 34,182 19,200 34,182 53,382 53,382 $ 57,090 $ 57,090 See notes to the financial statements N. NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUND TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2016 Total fund balances - governmental funds $ 53,382 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 11,261,497 Accumulated depreciation (2,996,543) 8,264,954 Net position of governmental activities $ 8,318,336 See notes to the financial statements NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTALFUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 REVENUES Assessments Interest Total revenues EXPENDITURES Current: General government Maintenance and operations Debt Service: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning Fund balance - ending 11,958 11,958 41,424 41,424 $ 53,382 $ 53,382 See notes to the financial statements 10 Total Major Fund Governmental General Fund $ 77,034 $ 77,034 165 165 77,199 77,199 45,562 45,562 7,601 7,601 12,078 12,078 65,241 65,241 11,958 11,958 41,424 41,424 $ 53,382 $ 53,382 See notes to the financial statements 10 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Net change in fund balances - total governmental funds $ 11,958 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures, however, in the statement of activities, the cost of those assets is eliminated and capitalized as capital assets. 12,078 Depreciation on capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities. (205,442) Change in net position of governmental activities $ (181,406) See notes to the financial statements 11 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS NOTE 1 — NATURE OF ORGANIZATION AND REPORTING ENTITY Naples Heritage Community Development District ("District') was created on September 24, 1996 by Ordinance 96-57 of Collier County, Florida, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non -ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District. The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by the owners of the property within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. The Board has the responsibility for: 1. Assessing and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District. 5. Approving the hiring and firing of key personnel. 6. Financing improvements. The financial statements were prepared in accordance with Governmental Accounting Standards Board ("GASB") Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations forwhich the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Government -Wide and Fund Financial Statements The basic financial statements include both government -wide and fund financial statements. The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non -fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment; (operating -type special assessments for maintenance are treated as charges for services.) and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. 12 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Continued) Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. Assessments Assessments are non -ad valorem assessments on benefited lands within the District. Assessments are levied to pay for the operations and maintenance of the District. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. The District's annual assessments for operations are billed and collected by the County Tax Collector. The amounts remitted to the District are net of applicable discounts or fees and include interest on monies held from the day of collection to the day of distribution. Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. The District reports the following major governmental fund: General Fund The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. New Accounting Standards Adopted During fiscal year 2016, the District adopted three new accounting standards as follows: GASB 72, Fair Value Measurement and Application The Statement improves financial reporting by clarifying the definition of fair value for financial reporting purposes, establishing general principles for measuring fair value, providing additional fair value application guidance, and enhancing disclosures about fair value measurements. These improvements are based in part on the concepts and definitions established in Concepts Statement No. 6, Measurement of Elements of Financial Statements, and other relevant literature. GASB 76 - The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments The Statement identifies—in the context of the current governmental financial reporting environment—the sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity with generally accepted accounting principles (GAAP) and the framework for selecting those principles. GASB 79 - Certain External Investment Pools and Pool Participants This Statement establishes accounting and financial reporting standards for qualifying external investment pools that elect to measure for financial reporting purposes all of their investments at amortized cost. This Statement also establishes accounting and financial reporting standards for state and local governments that participate in a qualifying external investment pool that measures for financial reporting purposes all of its investments at amortized cost. 13 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Continued) Assets Liabilities and Net Position or Equity Restricted Assets These assets represent cash and investments set aside pursuant to external restrictions. Deposits and Investments The District's cash is considered to be cash on hand and demand deposits. The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following: a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; b) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; c) Interest bearing time deposits or savings accounts in qualified public depositories; d) Direct obligations of the U.S. Treasury. Securities listed in 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. The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles. 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 Roadways 30 Security and other 20 In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements. Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned. 14 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets. Liabilities and Net Position or Equity (Continued) 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. 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. 15 NOTE 3 — BUDGETARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end. The District follows these procedures in establishing the budgetary data reflected in the financial statements. a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1. b) Public hearings are conducted to obtain public comments. c) Prior to October 1, the budget is legally adopted by the District Board. d) All budget changes must be approved by the District Board. e) The budgets are adopted on a basis consistent with generally accepted accounting principles. f) Unused appropriation for annually budgeted funds lapse at the end of the year. NOTE 4 — DEPOSITS The District's cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. NOTE 5 — CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30, 2016 was as follows: Governmental activities Capital assets, not being depreciated Land and land improvements Total capital assets, not being depreciated Capital assets, being depreciated Security and other Roadw ay Total capital assets, being depreciated Less accumulated depreciation for: Security and other Roadw ay Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Balance Additions Reductions Ending Balance $ 6,122,404 $ $ $ 6,122,404 6,122,404 6,122,404 1,177,984 3,949,031 12,078 - - 1,190,062 3,949,031 5,127,015 12,078 5,139, 093 992,676 11798,425 60,308 145,134 1,052,984 1,943, 559 21791,101 205,442 2,996, 543 2.335,914 (193,364) 2,142,550 $ 8,458,318 $ (193,364) $ $ 8,264,954 Depreciation expense was charged to the maintenance and operations function. NOTE 6 - MANAGEMENT COMPANY The District has contracted with a management company to perform services which include financial and accounting advisory services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs. 00 NOTE 7 - RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years. 17 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL — GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 REVENUES Assessments Interest Total revenues EXPENDITURES Current: General government Maintenance and operations Capital outlay Total expenditures Variance with Final Budget - Budgeted Amounts Actual Positive Original & Final Amounts (Negative) $ 76,701 $ 77,034 $ 333 100 165 65 76,801 77,199 398 49,521 45,562 3,959 17,280 7,601 9,679 10,000 12,078 (2,078) 76,801 65,241 11,560 Net change in fund balance $ Fund balance - beginning Fund balance - ending 11,958 $ 11,958 41,424 $ 53,382 See notes to required supplementary information in NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District's budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles). The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2016. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. 19 2700 North Military Trail - Suite 350 Boca Raton, Florida 33431 Gran & Associates (561) 994-9299 - (800) 299-4728 Fax (561) 994-5823 A"R"T1t-`IFY) PUIIIfLIC AC'COUN'JAN IS 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 Naples Heritage Community Development District Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of Naples Heritage Community Development District, Collier County, Florida ("District") as of and for the fiscal year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our opinion thereon dated March 23, 2017. 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. 20 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. March 23, 2017 21 2700 North Military Trail • Suite 350 Boca Raton, Florida 33431 GrauAssociates (561) 994-9299 • (800) 299-4728 ......................... ......... .... __—.___.. Fax (561) 994-5823 CL, 111'[111) 111, 11>t I ; .tfl.X"k t N 'AiNl I'S 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 Naples Heritage Community Development District Collier County, Florida We have examined Naples Heritage 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, 2016. 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, 2016. 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 Naples Heritage Community Development District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties. ` March 23, 2017 22 2700 North Military Trail • Suite 350 Boca Raton, Florida 33431 _.a-_-_Associates -_.._...._.._.sscae (561) 994-9299 • (800) 299-4728 ....---..-w------------ Fax (561) 994-5823 F1 F 1 ` t'(f BIJ(; .F (,(_1'0 . N't'AN FS www_graucpa.com MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying basic financial statements of Naples Heritage Community Development District, Collier County, Florida ("District") as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated March 23, 2017. 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 March 23, 2017, 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. III. Compliance with the Provisions of the Auditor General of the State of Florida. Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of Naples Heritage Community Development District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank Naples Heritage Community Development District, Collier County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. March 23, 2017 PAI 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, 2015. 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, 2016. 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, 2016. 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, 2016 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, 2016. 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