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Agenda 03/20/2019 :" IQ _ KEY MARCO Community Development District Board of Supervisors Regular Meeting Wednesday, March 20, 2019 8:30 a.m. 505 Whiskey Creek Drive Marco Island, FL 34145 AGENDA Note: Requests to address the Board on all subjects,which are not on today's agenda,will be accommodated under "Public Comments". Public comments are limited to a maximum of three(3)minutes per attendee in order to facilitate orderly and efficient District business. Any person who decides to appeal a decision of this Board will need a record of the proceedings pertaining there to and may need to ensure that a verbatim record of these proceedings is made at their expense. Any person requiring special accommodations at this meeting because of a disability of physical impairment should contact the District Office at 239-394-4346 at least five days prior to the meeting. 1. Call to Order 2. Roll Call 3. Approval of Agenda 4. Audience Questions and Comments on Agenda Items 5. Approval of Previous Meeting Minutes a. January 16, 2019 6. Florida Fish&Wildlife Presentation 7. Specific Items of Old Business a. Street Light Project i. Legal Opinion—Street Lights b. Landscape Maintenance Project c. Gatehouse i. Condition of Plants in Pots (C-3 Maintenance) ii. Master Gardener Status iii. Blue Planters iv. Gatehouse Roof Status Wage v. Gate Arms&Control Boxes; Rust d. New Construction:CDD/ARC Requirements e. Ground Lease Termination f. Lease Agreement Termination 8. Specific Items of New Business a. Temporary Speed Bumps b. Photography for Interior of Gate House c. Gate Staff Post Orders-Summary of Duties 9. District Counsel—Greg Urbancic, Coleman,Yovanovich & Koester, P.A. a. Lease Employees 10. District Finance a. Financial Statement Month Ending January 2019 b. Annual Financial Audit c. Square Update 11.District Manager a. FEMA Update b. Statewide Mutual Aid Agreement 12.Supervisors Request and Comments a. Three Way Stop Sign at Blue Hill &Whiskey Creek b. Ratify Special Events i. Tour De Marco, February 24, 2019 ii. Marco Half Marathon, March 17, 2019 c. Special Event Limit Policy 13.Audience Questions and Comments 14.Schedule Next Meeting Date and lime a. April 17, 2019 at 8:30 a.m. 15. Adjournment 2 1 P :, a KEY MARCO COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING January 16,2019 (Not Approved) The Board of Supervisors of the Key Marco Community Development District met at 8:30 a.m. on January 16,2019,at the Key Marco Community Center,Marco Island, Florida. ATTENDEES: Maureen McFarland,Supervisor,Chair and Treasurer Mary Beth Schewitz,Vice-Chair Corrie Grado, Supervisor Dawn Aitkenhead,Supervisor Luanne Kerins, Supervisor Katie Maline,District Manager/Secretary Greg Urbancic,District Counsel CALL TO ORDER/ROLL CALL The regular meeting was called to order with all five supervisors in attendance. APPROVAL OF AGENDA The revised Agenda was unanimously approved on a MOTION by Mrs.Kerins and a second by Mrs.Aitkenhead. AUDIENCE QUESTIONS AND COMMENTS ON AGENDA ITEMS No comments or questions were received from the public. APPROVAL OF PREVIOUS MEETING MINUTES As it relates to the October 17,2018 meeting minutes,on Page 4,under District Finances,the last sentence should be removed. On a MOTION by Mrs.Grado and a second by Mrs.Schewitz,the October 17,2018 meeting minutes were unanimously approved by the Board. As it relates to the November 15,2018 meeting minutes. On page 1,Appearances,the Board members should have the word"Supervisor"listed after their names, not"Assistant Secretary". On Page 3,Approval for September 7,2018 minutes,last paragraph,add"Mrs." in front of "Aitkenhead". On page 3, Specific Items of Old Business,Culvert Cleaning,last paragraph,last sentence,change"in"to "on"and after City of Marco change"on"to"all". On Page 5,under District Finance,the second sentence starting with"The fund balance..."should be deleted. On page 5,Item A,Holiday Bonuses,delete"Tommy"and replace with"Crawford Landscaping". 1 ' P p e With those corrections,the November 15,2018 meeting minutes were unanimously approved on a MOTION by Mrs.Grado and a second by Mrs.Schewitz. SPECIFIC ITEMS OF OLD BUSINESS A. Street Light Project Two proposals were received for this project, one from Casagrande Electric which was not a detailed proposal,and a second proposal from Simmonds Electric for$393,000. Mrs.Maline has also contacted LCEC for information on disconnecting certain street lights,leaving only certain areas on. As an option,LCEC offers leased,decorative street lighting. LCEC would be responsible for all of the maintenance for leased street lighting. Mrs.Maline has requested a proposal from LCEC for leased lights. A credit was received from LCEC of approximately$10,000 for incorrect billing for conductor wire. Solar lighting will also be looked at as an option. The Board members discussed the options,and the legal responsibility the District has regarding safety and the necessity of warning of potentially hazardous areas. B.Landscape Maintenance Project Four proposals have been received on this project,and Mrs.Maline and Mrs.Kerins will be reviewing the proposals and check references and come back to the board with their findings. Crawford's contract ends in Februa►y 1,2018. Keith Mahan,VP of Crawford has agreed to month to month service until the Board makes a decision on a landscape maintenance company. Mr.Urbancic advised that proposal process is within the threshold amounts for the various areas of work. SPECIFIC ITEMS OF NEW BUSINESS A. C-3 Garden Proposal-Gatehouse Blue Planters The concrete planter's irrigation has been re-installed and C3 Gardens will be replanting soon. rhe Board agreed that the proposal for new plantings in the blue pots were not the Florida natural look they wanted,nor what was requested and did not approve the proposal. This will be discussed again under Item C. B. 2019 Holiday Decor Discussion After a brief discussion by the board,it was agreed that Mrs.Maline will invite new vendors to provide proposals for holiday decor. C. Master Gardener Discussion The Board is disappointed with the work Crawford Landscaping is doing at the entrance and the option of hiring a master gardener on a contract basis for the area around the guardhouse in a natural,native style was discussed. 2IPa On a MOTION by Mrs.Aitkenhead and a second by Mrs.Schewitz the Board then authorized Mrs. Maline seek a master gardener proposal for the landscaping the entrance surrounding areas. D. Renewal of Management Fee On a MOTION by Mrs.McFarland and a second by Mrs.Aitkenhead,the Management Fee for Mrs.Maline was renewed on a unanimous vote of the Board. E. District Manager Annual Review The tape was turned off and Mrs.Maline stepped outside building while the review was held. DISTRICT COUNSEL A. Key Marco CDD and HOA Land Lease Mr.Urbancic briefly explained the Ground Lease and how it came into use. Over time various changes were made. Currently the CDD pays taxable rent to the HOA. A discussion was held concerning terminating the existing Ground Lease as of December 31,2018,and entering into an agreement for Tract U,which would allow the CDD to continue to use Tract U. As a governmental entity the CDD cannot expend funds for a private purpose,and leaving it open as to what and where regarding landscaping maintenance could be an issue. Mr.Urbancic suggested that a specific amount of money to be spent over a year should be indicated. Mrs.Grado suggested that a non-monetary easement be done. This was the original intent in 2011,but did not include the well locations. After further discussion,Mrs.McFarland moved and Mrs.Grado seconded a MOTION stating that the CDD Board would ask the HOA Board to grant an easement for Tract U,for a nominal amount of money,such as$10. The Motion passed unanimously. Once the HOA agrees,Mr.Urbancic and Mrs.Maline will put this together for the Boards of the two entities. More discussions will be held on this. DISTRICT FINANCES A. Financial Statement Month Ending November 2018 Mrs.Maline and Mrs. McFarland have been working on some issues with the financials,and will have updated information for the Board at the March 20,2019 meeting. B. Square Update Mrs. Maline will report to the Board monthly on this credit card system. The implementation of the Road Use Fee began November 1,2018 and thus far$825 has been received. A public records request was made by the attorney for the City of Marco Island,asking for a broad range of documents related to the road use fee. Mr.Urbancic will discuss the District's response with Mrs. McFarland and Mrs.Maline. 31 Rage In an effort to reduce legal fees,Mrs.McFarland suggested that Mrs.Maline contact the City attorney, and consult with Mr.Urbancic when necessary. Mrs.Maline will contact the City Attorney's office and ask that a list of specific requests be sent to her,and she will then advise them of any fees that may be charged. DISTRICT MANAGER A. FEMA Update As of this date,the District has received$20,833.69 from FEMA.There are five projects left in the que to be obligated. B. Gate House Roof Aztec Roofing is waiting for a delivery date from the tile manufacturer. The tile manufacturer is behind and at this time it is taking eight to ten weeks to manufacture. C. Fire Hydrants Fire hydrants were pressure tested by the County the previous week,and Mrs.Maline has submitted a request to them to have the hydrants rust proofed and repainted. D. Culvert Maintenance It has been determined that it is the homeowner's responsibility to repair their culverts,which is a City of Marco Island ordinance. SUPERVISORS/AUDIENCE REQUESTS AND COMMENTS Mrs.McFarland reminded the members in attendance that only Supervisors and the District Manager may contact or communicate with contractors of the Key Marco CDD. The District Manager should be the main conduit for all non-personal communication with the Gate staff and all Landscaping personnel. Any issues with contractors should be brought manager's attention for resolution. No further requests or comments were received from the other supervisors or the audience. ADJOURNMENT The next meeting will be held on March 20,2019 at 8:30 a.m. The meeting was then adjourned at 9:40 a.m. 4 I P a €; -1- SECURITAS Post Orders Post Duties **1.0 Post Duties Post Duties Key Marco Shift: 12 hrs Monday— Friday: 0630—1830 hrs(6:30 AM—6:30 PM) Shift: 10 hrs Saturday—Sunday: 0630-1630 hrs(6;30 AM—4:30 PM) Time Duties Note this is a CDD Remember we cannot deny access to any one but we can gather information before giving access, (i.e. Photo ID) At Shift Start 1. Review Log Book, Power up system. Sign in on register sheet. 2. Review any incident reports and Daily Activity Reports from prior shift. 1. The security officer is expected to be on their post at all times. 2. You will greet using the following: Good Morning or Good Afternoon,Welcome to Key Marco How may I help you. 3. When members arrive acknowledge them by waving and being visible at all times. (except for restroom breaks) 4. Anyone using the guest gate must show photo ID to gain entry. Once verified in Cypress Access, print pass and grant them entry. Tell them to have a nice day. 5. If a resident does not have a bar code decal,they must also show ID to enter. Instruct them as to how they can obtain a bar code. If you know they are a resident then grant them access. If you are not sure, contact the Manager. 6. Only the City of Marco Island Police, EMS and Fire, Collier County Sheriff's office, Lee County Electric, Century Link, Comcast, United States Postal Service, UPS, Federal Express or any other commonly known package delivery service shall be granted access with no pass required. 7. Security Officer will issue all residents and visitors with Access Decals and Security Cards. 8. The officer on duty at this post shall comply with any other reasonable request from the client 9. Each officer on duty will be responsible for keeping the guard house neat, clean and presentable inside and outside at all times. 10. Each officer assigned to this post shall, at all times, conduct themselves in a courteous and professional manner. Officers will not engage in lengthy conversations with the residents or their guests. -2- SECURITAS Post Orders Post Duties 11. Be Professional. Remember that a major part of the job here is to exercise good judgement. Our goal is to make the environment pleasant for residents and their guests. Our job is to elicit cooperation, not demand compliance. 12. Officers must park in the assigned spaces. 13. Update the Daily Activity Report each hour—Please record all activity during the hour. DO NOT write "all secure" or"all normal activity" 14. Check the exterior of the gate house and gates to ensure the entry ways are free of trash and debris. 15.When visitors arrive that are not guests or invitees, advise them there is a Road User Fee. $5.00 for bike and walkers, $10.00 for 2-Axel vehicles,$20.00 for 3+Axel vehicles. If they would like to pay the fee,obtain a debit or credit card and enter into the Square Reader System. Instruct bicyclists to ride single file. 16. Instruct all historical visitors to remain on the main road and to remain in their cars at all times. 17.Always issue a "do not park in the grass flyer" and remind guests and contractors that the speed limit is 20 mph. 18. We will attempt to alert the resident of FED/EX, UPS is going to the resident. 19. If Bikers arrive after 5:30 p.m.we kindly explain they cannot enter Key Marco because the guard house shuts down and safety becomes a concern. End of shift/ 1. Ensure office is clean and remove personal items. securing post 2. Update pass down log if needed. 3. Lock gate house if at the end of the shift. Coleman,Yovanovich & Koester, P.A. Northern Trust Bank Building 4001 Tamiami Trail North, Suite 300 Naples, Florida 34103-3556 Telephone: (239)435-3535 Fax: (239)435-1218 Page: 1 Key Marco CDD January 31, 2019 c/o Katie Maline File No: 3944-001M 505 Whiskey Creek Drive Statement No: 121 Marco Island FL 34145 Attn: Katie Maline Gen Rep SENT VIA EMAIL TO: katie@managerkeymarcohoa.org Fees 01/10/2019 GLU Review email correspondence from Katie Maline regarding license agreement; Review files on same; Draft email correspondence to Katie Maline 130.00 01/11/2019 GLU Telephone conference with Katie Maline regarding license agreement; Draft License Agreement; Draft email correspondence to Katie Maline with initial drafts; Draft email correspondence to group distributing draft documents 325.00 01/14/2019 GLU Review email correspondence from Katie Maline on comments on agreement; Telephone conference with Katie Maline regarding agreement 81.25 01/15/2019 GLU Draft revisions to license agreement and termination of ground lease; Draft email correspondence circulating same. 130.00 GLU Review correspondence from City Attorney on public records request; Draft email correspondence to Katie Maline and Maureen McFarland on same. 65.00 GLU Review agenda and prepare for Board of Supervisors meeting 65.00 01/16/2019 GLU Attendance at Board of Supervisors meeting 812.50 Professional Fees through 01/31/2019 1,608.75 Total Current Work 1,608.75 Balance Due $1,608.75 ,44 $ 0 E % » Ct % % 3 R % 1-0 2 0 0 0 m U C cmZ asa RI G CD E a CD N. 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CO CO > & .7) 4 $ , , 2 ( 10 ,a- 0 / e % N N- CO« . k m \ § § § . � - ) ƒ . , $ / § \ / ) § / \ e = ° / - a w k kk $to U - > U 0 0 0 § 0 ( § CO / Ce / § § \ CO w 4 = / 6 n \ \ _ - - 0 0 o $ § 2 E _ _ I CO 07 ) o ) - k / ® ' k o 0 § ) 0 ) § z k k 0 § 2 _ m re \co } ° § z o k § _ \ 2 0 ` , ! k / \ n $ 0 z ; < A , p C - 7 CO u W CD k k \ f j \ k k 0, Lil- o ) / z $ z 0 a 9 + £ / ■ 9 ® Ci a z z E \ § k co § 3 \ cc } 0 11 o § ) $ w \ E. 03 03 111 0 k Ti ■ ! 1 ¥ ° ) g § / 2 G ° \ 2 2 LANDSCAPING IV HORTICULTURAL MANAGEMENT PROPOSAL PREPARED FOR: KEY MARCO CDD Submitted to: KAT i E MAL I NE Date: 112,20,8 Property Name: KEY MARCO Address: 505 WHISKEY Property Location: MARCO iSLA.ND City/St/Zip: ti•Mowing,edging,forced air clean up and weed control 52 ❖Selective pruning of shrubs and ground covers CONTINUOUS ❖Selective pruning of palms(up to 12') CONTINUOUS ❖ Fertilization of turf grass •:Fertilization of shrubs and ground covers 4 •:' Fertilization of palms and trees 3 ❖ Lawn and ornamental pest and disease control 3 °:' ►ni.ation system schedutin. and monitorfn� 12 12 * -:'7',77::':,C� TOTAL: :, : iVickklateW 7- N. ,s 4K w�,4,-M4 : : 4:< t ti w � _,�5+„` *,, ., 4 rte,a i ',,,4,'� ❖ Monthly Horiculture Maintenarce 10316 ❖ Monthly Irrigation Monitoring + Pest Control 1176 •:•Fertilization 1885 iiititalliMririlit 44',' r' `� � , 3625 Crawford Landscaping Group: Future Client: / .r-'7 / /1-r. �-- . ,4,1 `v(,,r?-,-L e Mike McNeill,Sales Manager Signature Date Crawford Landscaping Group 2360 Catawba Street,Naples, FL 34120 (888)581-5151 (P)(239)594-9832(F) Contract Effective Date Ten cneiliardiscovercrawford.corn II A'£ FORD LANDSCAPING ARBOR WORK PROPOSAL FOR KEY MARCO Hourly Rate for Arbor Work is$70 per hour per man which includes man and equipment.The cost for stump grinding is$85 per hour which includes the machine and the man. Routine Palm Maintenance Trim all Saba!Palms,Queen Palms, Chinese Fan, Coconut and Phoenix(sp.)Palms in accordance to specification provided. $4,200 Hardwood Tree Trimming will be done as necessary to accomplish contract specification. $4,340 Exotic Maintenance Prune back the exotics along the front wall and the Right Of Way along Whiskey Creek and Blue Hill Creek Road twice yearly to maintain a border that does not impede mowing and other maintenance activity.This work will be performed on trees above the 12 foot height line trimmed by ground crews. $41,600 Vine Management Remove vines from the canopy of trees growing along Whiskey Creek and Blue Hill Creek above the 12 foot height maintained by ground crews.This is to be done twice yearly. $52,000 2360 Catawba St. Naples,FL 34120 0:(888) 581-5151 F:(239) 594-9832 www.discovercrawford.com ADDENDUM A ADDITIONAL SERVICES If additional services are required,Contractor will submit a proposal reflecting the services requested, Upon completion of this work,the client wilt receive an invoice reflecting the completed work per the approved proposal. Payment for all completed additional services will be due upon receipt of invoice. After thirty(30)days past due,interest will accrue at 1.5%per month. The following is a list of many of the services available above and beyond this maintenance contract. Additional services not appearing on this list may also be available. (prices may very): ` ?:,. q � 4 �'.,a. ,.,,,. `xe � t 0 •A Turf maintenance application INCLUDED + Shrub Pruning application INCLUDED 4. Weed application INCLUDED •• Fertilization of turf grass,shrubs,palms trees and ground covers INCLUDED 0 Irrigation system wet check INCLUDED + Annual flower installation and soil amendments TBD • Mulching material installation($2.00 PER INSTALLED BAG SUPPLIED BY CDD) $2.00/BAG + Palm pruning above 12' SEE PROPOSAL • Hardwood tree trimming SEE PROPOSAL + Liquid root feeding of trees TBD + Liquid root feeding of palms TBD ❖ Tree and palm staking and guying TBD + Tree stake removal TBD 4. Freeze and frost protection of plants and annual plantings TBD 4. Weed control on patios or streets TBD + Lanai service TBD • Espalier of any type of plant material or vine TBD • Landscape lighting installation or maintenance TBD + Hand watering TBD + Leaf removal from planting beds,drainage areas, parking lots,gutters,etc. TBD 4• Native area clean up TBD + Preventative blanket application. IPM + Downy mildew preventative application TBD • Crab Grass,Torpedo Grass,Sedge application TBD ADDENDUM B QSD-045 Date revised:1/1/18 Page 9 of 12 wuats: INSECT OR DISEASE NOT COVERED IN THIS AGREEMENT There are a few occasions where the Contractor cannot control insect or disease damage. The following is a list of insects or disease where the Contractor is not responsible for any resulting damage unless contracted to manage by a separate agreement or addendum: b.Downie Mildew c.Lethal Yellow d.Ganoderma Bud Rot e, Fusarium Wilt f. Bud Rot j.Mole Crickets k.Texas Phoenix Palm Decline I.Sedge m. Pine Beetle Species Infestations n. Large scale outbreaks of turf fungus(s)due to weather events o.Correction of large scale soil deficiencies p.Palm Weevil q. Royal Palm Bug ADDENDUM C aso-ons Date revised:111!18 Page 10 of 12 Inmals: .3).,. r.4 ..... _1 ,• -, Lj.), 0 (s) , F::‘;',.-..;7••;4."*N:',',..ii."'.... ,,,,,z4,i',..11,-.7b..:-..--, i .,-- 4:„ o a.. „ 2`•--rr'''''-..4.1k*.k'.',,-'4'.''r4rr,..",_t.u, b--'r '.,..1,1.rt,irsr.z.,*„•',„ ,. v"Itik • .- 44g: 0 , •- *-'''''-'1..r;,..W4,4"'...:.4.1'.".. OZ f 4.:::;a4,4,1z•1,f":".t.4VV`4,-.',.',''-.si.;;;4".L'°*.%ii-,.- .t. ‘, f.4414:1114*1;41-t- 4,: *.q. .., ''* - - 1 (r) • - da *Z.;itt:11( 4Y' ''' 0 i....,P* #30: .'"'-!:,•..„044;„. ''!. 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' a ° a � v • C u C0 TS O QVYti, NO ° O .c o in u j tC0 y Sa aO ,A U 0 C U W i O C ua 'Q o2C m sO v y ° • 0 .ai .0 E U E -p a CO a) N E i u a) 3 L O W Y a1 a) O 3 C c a) v i CO d 'L (0 O U N E =a t u • E o a ani °� > > c + 0 m E a) In N O i bo "' O C a• , ° E-O .Y C Y >.O 0 v c w 7 •m v E a) o 8 t ,Y, 0 a) 0 0 0 C 0 a c p !fl _ c o .0-,a c c . c N N 0 Cs-N N c s o a •N a a 3 oa m E ILp v °a. 0.a� o.i M ala ° Y E d c 0 0 Z a _ O c L^ c• E fav 0 N 3 0 3 y E 0 1 v TS n aNi v 75 cu u > s ' �c -J m U C 'i+ 6) to 0 O N L- a) N E.'. E d N ? a) ) '6 fa V 1_ i a1 fL E C 03 E i N * co p�C v 2 - r n o O v - 3 w > m al a d o CO ,i u ..J U uJ a . 0 . , . . January 2, 2019 Katie Maline CAM, Manager Key Marco LAN DS( t\ L 505 Whiskey Creek Drive 1-L.OR,11`)A Marco Island, FL 341.35 RE: Enclosed Bid Package for Key Marco Katie. Thank you again for the opportunity to review Key°Marco and present this to you.After a detailed review we have prepared the attached information. It includes some details reflecting our review, approach and questions uncovered within the RFP vs what we have spoken about on site. Attached you will find our package, a copy of your RFP, licensing& insurance information and additional pricing information. The overall price for our full-service package is$11,575.00 for all the routine services and programs(mowing, edging, blowing,weed management, trimming&pruning,fertilizer program,pest management program, irrigation inspections&testing) The pricing for the mulch program and tree and palm trimming program (above 12 feet) have been included separately. We have approached the tree and palm information from the perspective of current conditions and a program moving forward. Details are included in that part of the package. Additionally,we are happy to prepare pricing on request for other enhancements and renovations to the community. We would also like to share that we are very interested in talking with you further about an all-natural, biological growth enhancement program we recommend to our clients. We are very aware of the sensitive nature of the Key Marco surroundings and think that you would be interested in hearing more about our program. It can ultimately help to reduce the application rates of your traditional fertilizer products,which is very good for the local environment! I am available at your convenience to meet to review,answer questions and Z'""L'''"'g=''r'RD, tell you more about how we can help you and Key Marco! Naples.Florida 3.4 W:_ Sincerely,e x124 Fart t dv l P RbaTIS ._ .. President&Chief Operating Officer Landscape Florida Tke Lanc5cape florkia e -. CE, ,r _ _Our management team is provided with all the '- latest in communication and technology,making it possible for us to respond to our clients needs quickly,efficiently and with the highest levels of service possible.Each of our crew leaders and technicians have smart phones for communication. Our Operations Managers are equipped with tablets that work in real time to manage our "` resources and respond to client requests through our"live"work order system. We Alit-;`?'" ' `'" - also deploy specialized cameras for"Remote Property Tours"that are uploaded to - our own YouTube channel for seasonal clients and utilize aerial imaging in much of our work. r-" it,,Li; .. it.n.,'::., rt d t'::V.r:?m5 This customized,unique and exclusive Landscape Florida program begins with complete photo documentation of our new „;f client's landscape and is followed by a detailed analysis and report of the existing ,11,1„-,?s—or conditions of the landscape and irrigation system.Once complete we review all items -•. ' with our client and initiate the next phase of the program involving landscape improvements,design and enhancement projects to add beauty and value to the �' -, - property.This detailed and extensive process is a very effective tool in our ?✓ . • relationship with our client and in caring for their living assets! This service is a value added offering that we do not charge a fec to provide. ret r,;, ' r`' _... _.. :_..; _ Completed by our Management ` ,.,-_10,7:-.461..., Team,our weekly property inspections allow us to provide for more attention to ' quality and the early identification of potential issues.These reviews tie directly into TIL--.*.e ',.,-,,, A,s,” µms- ,,, :-,, our`I,ive •Client Request System"&Custom Landscape Florida APP using our ' =� • `- 5 Management Team's devices to log items front landscape needs to irrigation and pest ,, , _ work logs.These items then appear on our crew leader's smart phones as their"to do"list.Because this system is operating in real time we are able to respond quickly .-:.4:,,,, ., to needs and requests. *ik Landscape Florida clients benefit from the knowledge. 4 NC A'' i t I FRr_s ": experience and certifications of our Management Team. We are l NOLA(Florida •`- t' Nurseryman,Growers&Landscape Association)Certified Horticulture Professionals,we members of the ISA(International Society of Arboriculture),we icii have a State of Florida Licensed Pest Control Operator on Staff we participate in �^ " continuing education programs offered by the University of Florida and The Rookery o Bay Foundation and participate in a wide variety of industry related events. if your UF 11.15 5r1 N are looking for the highest levels of Service, Quality& Expertise Landscape Florida a•�s ANc�A _ is here for you. r' tisDat " ,c =1 :•._Unlike some of our competitors; Landscape Florida's Managers are in !1 11 r „ direct control of all of their resources. We have structured our company to cater specifically to the needs of professionally managed properties and all aspects of the .ma-, - - work provided to our contracted landscape management services is handled in house . .' A and under our direct control. rs..; � 1 ' Ui:ask Croy s: Landscape Florida sets itself apart operationally from some of our larger competitors by deploying what we refer to as Unified Crews.This approach jet ; - ,, r' commits our resources to our client's properties on an ongoing basis and allows us to continually provide services like pruning of plant materials to eliminate the need F to t , q for the dreaded propert widegas shearing of all plants on a rotating basis.It also enables us to be more responsive to client requests and needs. MSA : . - J L1dife;^��, ,L,i_if l ui-t 1. : A benefit of our Senior Management Team's -, iik experience with the Walt Disney Company is our approach to the way we uniform our crews and technicians. Each team member is uniformed based on the task they 4. perform.Crew leaders are dressed in tan so they can be easily identified by clients by comparison to the crew members in blue.Irrigation technicians are dressed in ` i, ilk orange so clients can visually recognize when an inspection or repair is being } t Ik _ ., performed.Pest technicians dress is green so its apparent that chemical treatments f!'' - are happening. We have found this uniform system to be vest'helpful and appreciated by our clients for on more added level to our services! r . w e,i t N ci ti i= FloridaIii I :(, :cdN:Landscape believes in quality and r 0{ providing our clients the best value for their money. And because of this we have rs K ill j,-- our Special Services Team that is dedicated to our design,enhancement and . u ■ project offerings for our clients.This team can provide everything from annual m"7,` bedding plants to large scale projects and everything in between. 4. di �7i:::70,, ., ow S t L'::;:.1::.. ' 3 L?i�P l r Cs---;.,/1. .. ....-.4.7.,....., 't.:1iin)in . Ism ,v"r:Many times throughout the year we produce our widely "''""�°'*"F'-'hDsr"'•� ,., acclaimed`Clippings"Company Newsletter. We have been producing this ,t-t`i n publication for mote than a decade now and focus on a wide range of subjects ,t t °j from projects we are working on to the latest information on invasive pests,new -"4 : _�.4 . ;44:1 :4747= plant materials, landscape tips,irrigation components and generally just about "`""'"��="� " anything landscape related that you would want to know about! NYblt, « w � tr q C:._ •sap .0 { t--, t:. fr c}4: 2.(I x_Our home on the Internet! Continually updated our website serves as a great resource for our clients.Of particular interest to most,is LANDSCAPE� our`Publications'page that serves as a virtual library containing information on a FT EPJi l ` wide variety of subjects from turf grass to pest management. Check it out! t 5 KEY MARCO CDD REQUEST FOR QUOTATION RFQ Number 001 PRICING INFORMATION jg LAN DSC.4,PF FLORIDA Monthly Landscape Management Program Mowing, Edging,Blowing,Trimming&Pruning,Weed Management, Fertilizer &Pest Management Program, Irrigation Management Testing&Repairs, Exotic and Vine Management* Below 12 feet): San Marco Area: $3,356.75 Whiskey Creek Drive Area $4,745.75 Blue Hill Creek Drive Area $3,472.50 TOTAL: $11,575.00 Per Month Mulch Program (At 2"depth) $15,361.50 Tree, Palm and Exotics Above 12feet(see notes) $25,300.00 *Exotic&Vine Management Below 12 feet refers to the road ways sides only for the purposes of keep growth back away from the manicured landscape in common areas. Date January 2, 2019 Client Key Marco Project I Mulch Program Name !t IlQ 1 P ' # Specification Unit Cost Total It ' / r� Client —'P i- depth specifications 1measurements . .. l a 1 . Base on our measu,eft erco`ALL pion,r beds rde,r ie:°^Con: ot: L: iIfR`,Vt' Y DSCAPE Areas,4 e hove prepared The i0llotiying pfic.ing C4 .Ir'.t-?s for .,3,. , rs C _ _;,, application FLORIDA r jl Cypress Mulch—100% 2170 Bags,Installed in Planting Beds at a j $3.95 $8,571.50 L I\.I J Organic _ Depth of approximately 1 Cypress Mulch—100% 3990 Bags,Installed in Planting Beds at a I $3.85 $15,361.50 Organic Depth of approximately 2 inches Cypress Mulch—100% 6860 Bags,Installed in Planting Beds at a $3.85 $26,411.00 Organic Depth of approximately 3 inc.r,es Pine Straw Available as an Alternate at$8.50/bale II 0 P I TOTAL BUDGET nAll Material is guaranteed Is be es specified.All work to be completed in a workmanlike manner according to standard practices.Any alteration or deviation from the above specifications involving extra costs wilt be executed only upon written orders and will become an extra charge over and above the estimate.All agreements contingent upon spikes,accidents arid delays beyond our control.Owner to carry fire. tornado,hurricane and other necessary insurance.Our workers are fully covered by Workmen's Compensation Insurance.Landscape Florida is not responsible for any cut cables,lines,pipes or wires.Owner is responsible for contacting"Nn•Cuts'personnel.All sod.soil and S mulch amounts are estimated quantities.Final sod,soil and mulch pricing contingent on final field measurements.Warranty contingent upon proper care and maintenance,including irrigation,Materials not properly cared for in accordance with FNCLA Standards and Practices,or based on eveluetion by Landscape Florida.resulting in plant dedine or failure are not covered under warranty i andscape Florida is not responsible for'Acts of God'impacting plant materials.Design provided by Landscape Florida to be"field fit"for best results. Note: This Proposal May Be Withdrawn By Us if Not Accepted Within 15 Days. AI ne above prices,specifications and conditions are satisfactory and he eby accepted.You are authorized to do the work as specified.Payment will be made within 30 days or all warranties are null and void. T Acceptance of Proposal: Date: Client 12745 Livingston Road Naples,Florida 34105 (239)643-6124 Fax:(239)643.6413 www landscape Soride.:.o-. EDate January 2, 2019 Client Key Marco Project Tree & Palm Program San Marco, Whiskey Creek and Blue Hill �� i -j; Creek Locations AN �; tr, --) } par:W' Name ( # I Specification Unit Cost Total I_,A. \1 DS CAPE NOTE Based on oar detailed review idih our Arho:Cer Provider,we w-_ FLOT.IDA re recommending a change to the specifications in ordertoaddress latent moans damage,correction and removal in some:cams. The pr Doren,:"V `*e e held out here tt:oald accommodate pruning of r, p s only to thin year and spend tire balance of the work p. rfo ritirtg the required hardwood free correction removal&rejuvenation c.;rs ,9y,any herd'p.:coda have expired or arc-currently in decline due to starry dsmepe or walk tzar was done to them)Landscape Florida Strongly Rec:orr:roends a r•.-1= detailed review with the client to establish a cheer prog a n e:5 ire currant needs are not routine. ' Trim,Clean and Correctively 1 Sabal Palms,Medjool Date Palms, $3,400.00 $3,400.00 P Prune as Needed Large Ficus,Medium Ficus,Oaks& Brazilian Pepper Hanging Over Fence Line,Banyan Trees p Trim,Clean and Correctively 1 Small Banyan Trees,Coconut Palms, $5,800.00 $5,800.00 R Prune as Needed Queen Palms.Oak Trees,Sabal Palms,Banyan Trees O Trim,Clean and Correctively 1 + $7,300.00 $7,300.00 Prune as Needed Various Locations on 1 Trim Back Vines&Exotics at Sides of $8,800.00 I S8,800.00 P Whiskey Creek Drive and Roadway landscapes Above 1.2 feet Blue Hill Creek Heights.PRICE PER OCCURANCE`„ - 0 -- I S TOTAL I $25,300.00 All!Octane!is guaranteed to be as specified.All work to be completed in a workmant+.ca manner according to standard practices Any alterefion or ceviation from the above spedfications involving axis costs will be executed only upon written orders and will become an extra charge over end above the estimate.All agreements contingent.ipon strikes,accidents and delays beyond our control.Owner to carry fee. A tornado,hurricane and other necessary insurance.Our workers are Lilly covered by Workmen's Compensation Insurance.Landscape Florida is not responsible for any cut cables,lines pipes or wires Owner is responsible for contacting"No-Cuts"personnel.WI sod,soil and mulch amounts are estimated quantities,Final sod,our end mulch pacing contingent on final field measurements,Warranty contingent upon proper care and maintenance,including irrigation.Materials not properly cerec for in accordance with FNGLA Standards and Practices,ur based on evaluation by Landscape Florida,resulting in plant decline or failure are not covered under warranty.Landscape Florlca is not responsible for'Ads of God'impactinc plan:materials.Design provkld by Landscape Florida to be"field fit"for best results. L Note: This Proposal May Be Withdrawn By Us if Not Accepted Within 15 Days. The above prices,specifications and conditions are satisfactory and hereby accepted.You are authorized to do the work as specified.Payment will be made within 30 days ur at warranties are null and sold. 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'......':4-....:'''-...'',A,.:',ii,:. ft id:: 1 r !gy ��' 0' . . 1 ; t KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2018 KEY MARCO 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 Funds 8 Reconciliation of Balance Sheet—Governmental Funds to Statement of Net Position 9 Statement of Revenues, Expenditures and Changes in Fund Balances— Governmental Funds 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 11 Notes to the Financial Statements 12-17 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual—General Fund 18 Notes to Required Supplementary Information 19 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 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 PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 23-24 951 Yamato Road•Suite 280 Boca Rj04728 ton, Florida 33431 (r) (561)9 Grau & Associates Fax 51) 994-5823 C:1;RTII'ILD PUBLIC AUC()LlNi`I'i\ '1'S www.graucpa.com INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Key Marco Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the major fund of Key Marco Community Development District, Collier County, Florida("District")as of and for the fiscal year ended September 30,2018,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 30,2018, 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 11,2019,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 the effectiveness of the District's 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 Districts internal control over financial reporting and compliance. Report on Other Legal and Regulatory Requirements We have also issued our report dated March 11,2019,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 11, 2019 2 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of Key Marco Community Development District,Collier County,Florida("District") provides a narrative overview of the District's financial activities for the fiscal year ended September 30,2018. Please read it in conjunction with the District's Independent Auditor's Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS • The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of$4,977,960. • The change in the District's total net position in comparison with the prior fiscal year was($433,336), 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, 2018, the District's governmental fund reported an ending fund balance of $604,301,a decrease of($206,022)in comparison with the prior fiscal year.The total fund balance is non-spendable for prepaid items and the remainder is unassigned fund balance which is available for spending at the District's discretion. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as the introduction to the District's basic financial statements.The District's basic financial statements are comprised of three components: 1)government-wide financial statements, 2)fund financial statements, and 3) notes to the financial statements.This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The 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 functions. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.The District,like other state and local governments,uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.The District has one fund category: governmental funds. 3 OVERVIEW OF FINANCIAL STATEMENTS(Continued) 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 balances 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. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of an entity's financial position. In the case of the District, 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 SEPEMBER 30, 2018 2017 Current and other assets $ 646,822 $ 887,074 Capital assets,net of depreciation 4,373,659 4,600,973 Total assets 5,020,481 5,488,047 Current liabilities 42,521 76,751 Total liabilities 42,521 76,751 Net position Inh,estment in capital assets 4,373,659 4,600,973 Unrestricted 604,301 810,323 Total net position $ 4,977,960 $ 5,411,296 The District's net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure)less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents;consequently,these assets are not available for future spending. The remaining balance of unrestricted net position may be used to meet the District's other obligations. 4 GOVERNMENT-WIDE FINANCIAL ANALYSIS(Continued) The Districts 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 ENDED SEPTEMBER 30, 2018 2017 Revenues: Program revenues Charges for services $ 611,423 $ 586,260 General revenues 85,426 12,474 Total revenues 696,849 598,734 Expenses: General govemment 192,078 164,128 Maintenance and operations 938,107 722,158 Total expenses 1,130,185 886,286 Change in net position (433,336) (287,552) Net position-beginning 5,411,296 5,698,848 Net position-ending $ 4,977,960 $ 5,411,296 As noted above and in the statement of activities,the cost of all governmental activities during the fiscal year ended September 30, 2018 was$1,130,185. The costs of the District's activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, increased during the current fiscal year as a result of an increase in the per unit assessment. In total, expenses, including depreciation, increased from the prior fiscal year. The majority of the increase was the result of an increase in hurricane related expenses and landscape maintenance and repairs. 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 30,2018. CAPITAL ASSETS At September 30,2018,the District had$9,630,805 invested in in capital assets for its governmental activities. In the government-wide financial statements depreciation of$5,257,146 has been taken,which resulted in a net book value of$4,373,659.More detailed information about the District's capital assets is presented in the notes of the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND OTHER EVENTS The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, land owners, taxpayers, customers, investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Key Marco Community Development District's management at 505 Whiskey Creek Drive, Marco Island, FL 34145. 5 KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30,2018 Governmental Activities ASSETS Cash $ 641,355 Accounts receivables 338 Assessments receivable 4,979 Prepaids 150 Capital assets: Depreciable 2,404,456 Nondepreciable 1,969,203 Total assets 5,020,481 LIABI LITI ES Accounts payable 42,521 Total liabilities 42,521 NET POSITION Investment in capital assets 4,373,659 Unrestricted 604.301 Total net position $ 4,977,960 See notes to the financial statements 6 KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 Net(Expense) Revenue and Program Changes in Net Revenues Position Charges for Governmental Functions/Programs Expenses Services Activities Primary government: Governmental activities: General government $ 192,078 $ 192,078 $ - Maintenance and operations 938,107 419,345 (518,762) Total governmental activities 1,130,185 611,423 (518,762) General revenues: Interest and other revenues 85,426 Total general revenues 85,426 Change in net position (433,336) Net position -beginning 5,411,296 Net position -ending $ 4,977,960 See notes to the financial statements 7 KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2018 Total Major Fund Governmental General Funds ASSETS Cash $ 641,355 $ 641,355 Account receivable 338 338 Assessments receivable 4,979 4,979 Prepaids 150 150 Total assets $ 646,822 $ 646,822 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued expenses $ 42,521 $ 42,521 Total liabilities 42,521 42,521 Fund balances: Nonspendable: Prepaids 150 150 Unassigned 604,151 604,151 Total fund balances 604,301 604,301 Total liabilities and fund balances $ 646,822 $ 646,822 See notes to the financial statements 8 KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF BALANCE SHEET—GOVERNMENTAL FUNDS TO STATEMENT OF NFT POSITION GOVERNMENTAL FUNDS SEPTEMBER 30,2018 Total fund balances-governmental funds $ 604,301 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 9,630,805 Accumulated depreciation (5,257,146) 4,373,659 Net position of governmental activities $ 4,977,960 See notes to the financial statements 9 KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2018 Total Major Fund Governmental General Funds REVENUES Assessments $ 611,423 $ 611,423 Interest and other revenues 85,426 85,426 Total revenues 696,849 696,849 EXPENDITURES Current: General government 192,078 192,078 Maintenance and operations 700,793 700,793 Capital outlay 10,000 10,000 Total expenditures 902,871 902,871 Excess(deficiency)of revenues over(under) expenditures (206,022) (206,022) Fund balances- beginning 810,323 810,323 Fund balances-ending $ 604,301 $ 604,301 See notes to the financial statements 10 KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2018 Net change in fund balances -total governmental funds $ (206,022) 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 are eliminated and capitalized as capital assets. 10,000 Depreciation on capital assets is not recongnized in the governmental fund financial statement but is reported as an expense in the statement of activities. (237,314) Change in net position of governmental activities $ (433,336) See notes to the financial statements 11 KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS NOTE 1 —NATURE OF ORGANIZATION AND REPORTING ENTITY Key Marco Community Development District("District")was created on July 7, 1992 pursuant to the Uniform Community Development District Act of 1980,otherwise known as Chapter 190,Florida Statutes,under Collier County Ordinance 92-45. 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 on an at large basis by the owners of the property within the District. Ownership of land within the District entitles the owner to one vote per acre. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. The Board has the final responsibility for: 1. Assessing and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District. 5. Approving the hiring and firing of key personnel. 6. Financing improvements. The financial statements were prepared in accordance with Governmental Accounting Standards Board ("GASB")Statements. Under the provisions of those standards,the financial reporting entity consists of the primary government,organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded,the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District;therefore,the financial statements include only the operations of the District. NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Government-Wide and Fund Financial Statements The basic financial statements include both government-wide and fund financial statements. The government-wide financial statements(i.e.,the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part,the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment (Operating-type special assessments for maintenance and debt service are treated as charges for services.) and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. 12 II NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus,Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Assessments Assessments are non-ad valorem assessments on benefited lands within the District.Assessments are levied to pay for the operations and maintenance of the District.The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February28 and become delinquent on April 1.The District's annual assessments for operations and debt service are billed and collected by the County Tax Assessor/Collector. 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. Assets, Liabilities and Net Position or Equity Restricted Assets These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions. Deposits and Investments The District's cash and cash equivalents are considered to be cash on hand and demand deposits(interest and non-interest bearing). 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 13 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets,Liabilities and Net Position or Equity(Continued) Deposits and Investments(Continued) 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 Building and improvements 10—30 Infrastructure assets 10—40 Machinery and equipment 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. Long-Term Obligations In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position, Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred. In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received,are reported as debt service expenditures. 14 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Liabilities and Net Position or Equity(Continued) Deferred Outflows/Inflows of Resources In addition to assets,the statement of financial position will sometimes report a separate section for deferred outflows of resources,This separate financial statement element,deferred outflows of resources,represents a consumption of net position that applies to a future period(s)and so will not be recognized as an outflow of resources(expense/expenditure)until then. In addition to liabilities,the statement of financial position will sometimes report a separate section for deferred inflows of resources.This separate financial statement element,deferred inflows of resources,represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources(revenue) until that time. 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, 2018 was as follows: Beginning Ending Balance Additions Reductions Balance Govemmental activities Capital assets,not being depreciated Land and land improvements $ 1,969,203 $ - $ - $ 1,969,203 Total capital assets,not being depreciated 1,969,203 - 1,969,203 Capital assets,being depreciated Buildings 143,369 - - 143,369 Improvements 882,684 10,000 9,387 883,297 Infrastructure 6,511,876 - - 6,511,876 Machinery&Equipment 123,060 - - 123,060 Total capital assets,being depreciated 7,660,989 10,000 9,387 7,661,602 Less accumulated depreciation fon Buildings 111,087 4,779 - 115,866 Improvements 681,689 21,108 9,387 693,410 Infrastructure 4,203,627 205,274 - 4,408,901 Machinery&Equipment 32,816 6,153 - 38,969 Total accumulated depreciation 5,029,219 237,314 9,387 5,257,146 Total capital assets,being depreciated,net 2,631,770 (227,314) - 2,404,456 Govemmental activities capital assets,net $ 4,600,973 $ (227,314) $ - $ 4,373,659 Depreciation expense was charged to maintenance and operations. 16 NOTE 6—LICENSE AGREEMENT In October 2010,the District entered into an initial five year license agreement with Key Marco Community Association("KMCA")wherein the District will have exclusive right and privilege to utilize KMCA's maintenance building as defined for a monthly license fee of$1,433.33.In connection with this agreement,KMCA's is solely responsible for the overall maintenance of such property and related insurance coverage.In December 2015, the District and KMCA entered into a new lease agreement whereby the District will pay$2,553 monthly as a lease payment. The District paid$30,636 for the current fiscal year. NOTE 7—MANAGEMENT AGREEMENT In February 2017, the District entered into an agreement with the KMCA regarding District management services. Per the agreement, the HOA Manager will provide District management services and will report to both the KMCA Board and the District Board.The District has agreed to pay KMCA an annual management fee of$72,000.The agreement is for a one year term and is automatically renewed for successive one year periods. For the fiscal year ended September 30,2018,the District paid the KMCA$76,750 for these services. NOTE 8—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 KEY MARCO 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 30,2018 Variance with Final Budget- Budgeted Actual Positive Original& Final Amounts (Negative) REVENUES Assessments $ 629,800 $ 611,423 $ (18,377) Interest and other revenues 4,100 85,426 81,326 Total revenues 633,900 696,849 62,949 EXPENDITURES Current: General government 184,345 192,078 (7,733) Maintenance and operations 468,800 700,793 (231,993) Capital outlay 303,000 10,000 293,000 Total expenditures 956,145 902,871 53,274 Excess(deficiency) of revenues over(under) expenditures $ (322,245) $ (206,022) $ 116,223 OTHER FINANCING SOURCES(USES) Use of fund balance 322,245 - (322,245) Total other financing sources 322,245 - (322,245) Net change in fund balances $ - (206,022) $ (206,022) Fund balance- beginning 810,323 Fund balance-ending $ 604,301 See notes to required supplementary information 18 KEY MARCO 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 30,2018. 19 951 Yamato Road •Suite 280 Boca Raton, Florida 33431 • (561)994-9299•(800)299-4728 rau & Associates Fax (561)994-5823 CLR"I'II IED I't.II3L1C ;C;CIC}LIN'1:4N"1' www.graucpa.com ........)liri 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 Key Marco 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 Key Marco Community Development District,Collier County, Florida("District")as of and for the fiscal year ended September 30,2018,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 11,2019. 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,and contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion 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 11,2019 21 951 Yamato Road •Suite 280 Boca jj04728 Graze & Associates 6 511) • C...)i( Fa CLR"I'fFtEll PLIBLIC ACCOLINAAN"I' 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 Key Marco Community Development District Collier County, Florida We have examined Key Marco 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 1 the Auditor General of the State of Florida during the fiscal year ended September 30,2018. 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.Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects,with the specified requirements referenced in Section 218.415,Florida Statutes.An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements.The nature,timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance,whether due to fraud or error.We believe that the evidence we obtained is sufficient and appropriate to provide 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, 2018. 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 Key Marco 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 11, 2019 22 951 Yamato Road•Suite 280 Boca j4728 Grau & Associates (561)9 F 1)994-5823 CLIt`I'IFIEI.3 PUBLIC ACC;<)i:f if'I':^�°A'I'D www.graucpa.com MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Key Marco Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying basic financial statements of Key Marco Community Development District ("District')as of and for the fiscal year ended September 30,2018,and have issued our report thereon dated March 11, 2019. 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, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.Disclosures in those reports,which are dated March 11, 2019, 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 Key Marco 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 Key Marco 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 11, 2019 23 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS 2017-01 Budget: Current status: Matter has not recurred. 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 30,2017, except as noted above. 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, 2018. 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, 2018. 4. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 5. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 6. We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30,2018. It is management's responsibility to monitor financial condition,and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. 24