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Backup Documents 07/13/2021 Item #16I 161 BOARD OF COUNTY COMMISSIONERS MISCELLANEOUS CORRESPONDENCE July 13, 2021 1. MISCELLANEOUS ITEMS TO FILE FOR RECORD WITH ACTION AS DIRECTED: A. DISTRICTS: 1) Cedar Hammock Community Development District: Meeting Agenda 04/12/2021 Meeting Minutes 04/12/2021 2) Heritage Bay Community Development District: Meeting Agenda 02/11/2021; 03/04/2021 Meeting Minutes 02/11/2021; 03/04/2021 3) Immokalee Water and Sewer District: Basic Financial Statements and Supplementary Information,together with Additional Reports—Years Ended September 30, 2020 and 2019 4) North Collier Fire Control and Rescue District: Basic Financial Statements,together with Additional Reports—Year Ended September 30, 2020 5) The Quarry Community Development District: Meeting Agenda 05/17/2021 Meeting Minutes 05/17/2021 B. OTHER: 1) Public Risk Management of Florida: Filing of Intergovernmental Cooperative Agreement for City of Naples Airport Authority Cedar Hammock Community Development District Board of Supervisors 1 6 I 1 A 1 Norman Day,Chairman Justin Faircloth,District Manager Quentin Greeley,Vice Chairman Sam Marshall,District Engineer Fred Bally,Assistant Secretary Dan Cox,District Counsel John Martino,Assistant Secretary Gene T.Bolton,Assistant Secretary Meeting Agenda Cedar Hammock Clubhouse 8660 Cedar Hammock Boulevard,Naples, Florida April 12,2021 —2:00 p.m. 1. Roll Call 2. Approval of Agenda 3. Public Comments on Agenda Items 4. Old Business A. Bulkhead&Bridge Repair/Replacement Project Update B. Review of the FY2022 Approved Tentative Budget 5. New Business A. Bastos Pavers Estimate 16156 B. Roadway Marking Discussion 6. Attorney's Report 7. Engineer's Report 8. Manager's Report A. Approval of the Minutes of March 8, 2021 Meeting B. Acceptance of the February 2021 Financial Report C. Acceptance of the FY2020 Audit Report presented by Berger, Toombs, Elam, Gaines & Frank D. Follow Up Items 9. Supervisors Requests 10. Audience Comments 11.Adjournment Next scheduled meeting: May 10, 2021 @ 2:00 p.m. t ibl1Al sty Nritt5 PART Of THE USA TODAY NETWORK Published Daily Naples, FL 34110 CEDAR HAMMOCK COMMUN ITY 210 N UNIVERSITY DR#702 CORAL SPRINGS, FL 33071-7320 Affidavit of Publication STATE OF WISCONSIN COUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, Florida; distributed in Collier and Lee counties of Florida; that the attached copy of the advertising was published in said newspaper on dates listed. Affiant further says that the said Naples Daily News is a newspaper published at Naples, in said Collier County, Florida, and that the said newspaper has heretofore been continuously published in said Collier County, Florida; distributed in Collier and Lee counties of Florida, each day and has been entered as second class mail matter at the post office in Naples, in said Collier County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he has neither paid nor promised any person, or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. Published: 09/01/2020 Subscribed and sworn to before on September 1,2020: Notary,State of WI,County of Brown TARA MONDLOCH Notary Public State of Wisconsin My commission expires August 6,2021 Publication Cost:$381.50 Ad No:0004353016 Customer No: 1304217 PO#: Cedar Hammock fy2021 mtgs #of Affidavits1 This is not an invoice Notice of Meetings Cedar Hammock Counity 1 b 1 1 js IL Development Drstricl H The Board of Supervisors of the Cedar Hammock Com- munity Development District will hold their meetings for Fiscal Year 2021 at the Cedar Hammock Clubhouse*, 8660 Cedar Hammock Boulevard, Naples, Florida at 2:00 p.m.on the second Monday of the fol- lowing months: September 8,2020—special meeting of FY2020 October 12,2020 November 9,2020 December 14,2020 January 11,2021 February 8,2021 March 8,2021 April 12,2021 May 10,2021 *Please note that pursuant to Governor Degantis' Executive Order 20-69 (as extended by Executive Order 20-150 and as it may be further extended or amended) relating to the COVID-19 public health emer- gency and to protect the pub- lic and follow the CDC gold- ance regarding social distancing, such public hear- ing and meeting may be held telephonically, virtually, or at another location in the event the above location is not available. Please check the District's website for the latest information: www.cedarham mockcdd.corn. Or you may contact the District Manage- ment Company, inframark, LLC at 954-603-0033 at least two(2) calendar days prior to the date of the meetings or if you are hearing or speech im- paired, please contact the Florida Relay Service at 7-1-1 or (800) 955-8771 (TTY)l(800) 955-8770 (Voice) for aid in contacting the District Man- agement Company, for in- structions on how to join the meeting. The meetings are open to the public and will be conducted In accordance with the provi- sion of Florida Law for Com- munity Development Districts. Meetings may be continued to a date, time and location to be specified on the record at the meetings. There may be occasions when one or more Supervisors will participate via telephone. In accordance with the provi- sions of the Americans with Disabilities Act, any person re- quiring special accommoda- tions at these meetings be- cause of a disability or physi- cal impairment should contact the District Management Company, Inframark, LLC at 954-603-0033 at least two (2) calendar days prior to the date of the meetings. If you are hearing or speech im- paired, please contact the Florida Relay Service at 7-1-1 or (800) 955-8771 (TTY')1(800) 955-8770 (Voice) for aid in contacting the District Man- agement Company. Each person who decides to appeal any action taken at these meetings is advised that person will need a record of the proceedings and accord- ingly, the person may reed to ensure a verhatim record of the proceedings is made, in- ch,Hinn the tacrimnmr and avi- 1611A1 ..7 dance upon v;hich such ap- peal is to be based. Justin Faircic.)th District Manager Pub Date: Sept 1, 2020 s4353016 • 1 6 1 1 A i Agenda Package 6 CEDAR HAMMOCK Community Development District Annual Operating and Debt Service Budget Fiscal Year 2022 Modified Approved Tentative Budget (Meeting 4/12/21) Prepared by: 6INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES 1611A1 CEDAR HAMMOCK Agenda Package 7 Community Development District Table of Contents Page OPERATING BUDGET General Fund Summary of Revenues, Expenditures and Changes in Fund Balances 1 -2 Budget Narrative 3-6 Bulkhead/Bridge Restoration Fund Summary of Revenues, Expenditures and Changes in Fund Balances 7 Amortization Schedule 8 Budget Narrative 9 Exhibit A-Allocation of Fund Balances 10 SUPPORTING BUDGET SCHEDULES 2021-2022 Non-Ad Valorem Assessment Summary 11 1611A1 Agenda Package 8 CEDAR HAMMOCK Community Development District Operating Budget Fiscal Year 2022 1611A1 Agenda Package 9 CEDAR HAMMOCK Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Modified Approved Tentative Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU MAR- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 FEB-2021 SEP-2021 FY 2021 FY 2022 REVENUES Interest-Investments $ 17,191 $ 15,583 $ 10,088 $ 1,151 671 1,822 5,088 Hurricane Irma FEMA Refund 12,622 1,082 - - - - - Interest-Tax Collector 188 1,082 - 90 900 990 - Special Assmnts-Tax Collector 379,523 157,459 299,007 286,649 12,358 299,007 406,897 Special Assmnts-Other - 281,623 - - - - - SpecialAssmnts-Discounts (13,901) (16,029) (11,960) (11,101) (494) (11,595) (16,276) Other Miscellaneous Revenus 1,975 17,875 - - - - - TOTAL REVENUES 397,598 458,675 297,135 276,789 13,435 290,224 395,709 EXPENDITURES Administrative ProfServ-Engineering 38,061 22,048 30,000 3,961 26,039 30,000 5,000 ProfServ-Legal Services 14,201 7,494 4,249 1,408 2,841 4,249 2,000 ProfServ-Mgmt Consulting Sery 41,498 39,993 40,742 16,976 23,766 40,742 41,965 ProfServ-Property Appraiser 2,132 5,693 4,485 - 4,485 4,485 6,103 ProfServ-Special Assessment 7,941 13,029 8,938 8,120 - 8,120 8,214 ProfServ-Web Site Maintenance 656 587 696 290 406 696 717 Auditing Services 4,400 5,000 5,000 - 5,000 5,000 5,000 Postage and Freight 2,843 933 900 107 793 900 900 Insurance-General Liability 7,000 7,200 7,920 7,200 - 7,200 8,712 Printing and Binding 1,252 550 2,000 164 1,003 1,167 1,200 Legal Advertising 6,629 4,313 3,000 - 3,000 3,000 2,500 Misc-Bank Charges 380 - 700 - 408 408 700 Misc-Assessmnt Collection Cost 3,540 6,525 5,980 5,511 247 5,758 8,138 Misc-Web Hosting 239 3,316 1,799 632 1,239 1,871 2,000 Office Supplies 28 2,800 100 - 100 100 100 Annual District Filing Fee 175 175 175 175 - 175 175 Total Administrative 130,975 119,656 116,684 44,544 69,327 113,870 93,424 Field ProfServ-Field Management 5,008 5,116 1,633 5,737 8,032 13,769 1,682 Project Mgmt Fees - - - - - - 2,500 Contracts-Water Mgmt Services 7,200 7,200 7,200 3,000 4,200 7,200 7,200 Utility-Cameras 1,299 1,311 1,268 540 765 1,268 1,268 Electricity-Wells 2,190 3,177 4,866 2,042 2,824 4,866 4,866 Electricity-Aerator 1,358 1,163 2,000 565 1,435 2,000 4,000 R&M-Lake 3,113 2,940 3,000 - 3,000 3,000 3,000 R&M-Plant Replacement 788 - 3,015 - 3,015 3,015 500 Annual Operating Budget Fiscal Year 2022 Page 1 1611A1 Agenda Package 10 CEDAR HAMMOCK Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Modified Approved Tentative Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU MAR- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 FEB-2021 SEP-2021 FY 2021 FY 2022 R&M-Bulkheads 8,000 2,575 5,000 - 5,000 5,000 5,000 R&M-Bridges - - 5,000 - 5,000 5,000 5,000 Misc-Contingency 13,591 7,774 17,469 - 17,469 17,469 17,469 Capital Outlay 12,015 23,130 - 8,820 - 8,820 90,000 Total Field 54,562 54,386 50,451 20,704 50,740 71,407 142,485 TOTAL EXPENDITURES 185,537 174,042 167,135 65,248 120,066 185,277 235,909 Reserve-Bridges 22,064 154,036 10,000 - 10,000 10,000 19,950 Reserve-Irrigaton - - - - - - 19,950 Reserve-Bulkheads 107,683 451,110 10,000 - 10,000 10,000 19,950 Reserve-Lakes - 72,153 10,000 - 10,000 10,000 19,950 Reserve-Roadways 830 105,000 100,000 - 100,000 100,000 80,000 Total Reserves 130,577 782,299 130,000 - 130,000 130,000 159,800 TOTAL EXPENDITURES&RESERVES 316,114 956,341 297,135 65,248 250,066 315,277 395,709 Excess(deficiency)of revenues Over(under)expenditures 81,484 (497,666) - 211,541 (236,631) (25,053) - OTHER FINANCING SOURCES(USES) TOTAL OTHER SOURCES(USES) $ - - - - - - - Net change in fund balance 81,484 (497,666) - 211,541 (236,631) (25,053) - FUND BALANCE, BEGINNING 784,456 865,940 368,274 368,274 - 368,274 343,221 FUND BALANCE, ENDING $ 865,940 $ 368,274 $ 368,274 $ 579,815 $ (236,631) $ 343,221 $ 343,221 Annual Operating Budget Fiscal Year 2022 Page 2 161 1Ai CEDAR HAMMOCK Agenda Package 11 Community Development District General Fund Budget Narrative Fiscal Year 2022 REVENUES Interest Investments The District earns interest on the monthly average collected balance for their operating accounts, money market accounts and certificates of deposits. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments- Discounts Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative Prof Service-Engineering The District's engineer will be providing general engineering services to the District, i.e., attendance and preparation for monthly board meetings, review invoices, etc. Prof Service-Legal Services The District's legal counsel will be providing general legal services to the District, i.e., attendance & preparation for monthly meetings, review operating& maintenance contracts, etc. Prof Service-Management Consulting Sery The District receives Management, Accounting and Administrative services as part of a Management Agreement with Inframark Infrastructure Management Services. These services are further outlined in Exhibit"A" of the Management Agreement. Prof Service-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. Per the Florida Statutes, administrative costs shall include, but not be limited to,those costs associated with personnel,forms,supplies, data processing, computer equipment, postage,and programming. The budget for property appraiser costs was based on 1.5%of gross assessments. Annual Operating Budget Fiscal Year 2022 Page 3 16J 1A1 CEDAR HAMMOCK Agenda Package 12 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES Administrative(cont'd) Prof Service-Special Assessment The District's Collection Agent will be providing financials services which include the collection of prepaid assessments, maintenance of District's assessment roll and levying the annual operating and maintenance assessments. Prof Service—Web Site Maintenance Inframark Infrastructure Management Services oversees the District's email accounts and provides assistance to Campus Suite regarding the website, as necessary. Auditing Services The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. Postage and Freight Mailing of agenda packages, overnight deliveries, correspondence, etc. Insurance-General Liability The District's General Liability & Public Officials Liability Insurance policy is with The Florida League of Cities, Inc.The Florida League of Cities, Inc. specializes in providing insurance coverage to governmental agencies. Printing&Binding Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes etc. Legal Advertising The District is required to advertise various notices for monthly Board meetings, public hearings, etc. in a newspaper of general circulation. Misc-Bank Charges Bank fees that may be incurred during the year. Misc-Assessment Collection Costs The District reimburses the Tax Collector for necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The budget for collection costs was based on a maximum of 2%of the anticipated assessment collections. Annual Operating Budget Fiscal Year 2022 Page 4 1611AI CEDAR HAMMOCK Agenda Package 13 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES Administrative(cont'd) Misc—Web Hosting The District incurs expenses to maintain and renew their website domain and email accounts. Office Supplies Miscellaneous office supplies required for the preparation of agenda packages. Annual District Filing Fee The District is required to pay an annual fee of$175 to the Dept of Economic Opportunity Div. Field Services Prof Service—Field Management Inframark Infrastructure Management Services inspects the District's assets and provides two reports per year. Project Management Fees Expenses incurred from the field manager for the bulkhead/bridges and aeration project. Contracts—Water Mgmt Services Professional services for environmental permit compliance related to the water use permit. Utility—Cameras Costs associated with the District's gate cameras. Electricity-Wells FPL provides electrical services for the District's pumps at the following addresses: • 8684 Cedar Hammock Circle-Well #4 Meter KL35128 • 3639 Cedar Hammock Court—Well#6 Meter ACD4996 Electricity-Aerators FPL provides electrical services for the District's pumps at the following addresses: • 3826 Wax Myrtle Run—Meter ACD4234 • 8892 Cedar Hammock Blvd—Meter ACD4976 • 3766 Buttonwood Way—Meter ACD8387 R&M -Lake Repair and maintenance expenses related to lakes including washout repairs and erosion. Annual Operating Budget Fiscal Year 2022 Page 5 1611A1 CEDAR HAMMOCK Agenda Package 14 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES Field Services(coned) R&M—Plant Replacement Replace landscape plantings at pumps. R&M—Bridges Repair and maintenance expenses related to the bridges. R&M—Bulkheads Repair and maintenance expenses related to bulkheads. Misc-Contingency Any current year Field expenditure that may not have been provided for in the budget. Capital Outlay For expenses incurred for the Aeration Project, as well as the replacement of the decks for bridges 9 & 18. Reserves: Reserve-Bridges Funds to be set aside for future bridge expenditures as determined by the BOS. Reserve-Irrigation Funds to be set aside for future bridge expenditures as determined by the BOS. Reserve-Bulkheads Funds to be set aside for future bulkhead expenditures as determined by the BOS. Reserve-Lakes Funds to be set aside for future lake expenditures as determined by the BOS. Reserve-Roadways Funds to be set aside for future roadway expenditures as determined by the BOS. Annual Operating Budget Fiscal Year 2022 Page 6 16I1A1 Agenda Package 15 CEDAR HAMMOCK Community Development District Bulkhead/Bridge Restoration Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Modified Approved Tentative Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU MAR- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2020 FY 2021 FEB-2021 SEP-2021 FY 2021 FY 2022 REVENUES Special Assmnts-Tax Collector $ 1,166,613 $ 756,239 $ 724,976 31,263 756,239 $ 525,829 Special Assmnts-Discounts (42,589) (30,250) (28,076) (1,251) (29,327) (21,033) Other Miscellaneous Revenus - - 15,900 - 15,900 - TOTAL REVENUES 1,124,024 725,989 712,800 30,012 742,812 504,795 EXPENDITURES Administrative ProfServ-Property Appraiser 18,515 11,343 - 11,343 11,343 7,887 Misc-Assessmnt Collection Cost 17,336 15,124 13,938 625 14,563 10,517 Total Administrative 35,851 26,467 13,938 11,968 25,906 18,404 Field Capital Outlay Bulkhead and Bridges Project 1,627,526 699,522 603,410 - 603,410 - Total Field 1,627,526 699,522 603,410 - 603,410 - Debt Service Operating Loan Repayment - - 183,475 566,420 749,895 578,891 Total Debt Service - - 183,475 566,420 749,895 578,891 TOTAL EXPENDITURES 1,663,377 725,989 800,823 578,388 1,379,211 597,295 Excess(deficiency)of revenues Over(under)expenditures (539,353) (88,023) (548,376) (636,399) (92,500) OTHER FINANCING SOURCES(USES) Loan/Note Proceeds 654,835 - 645,165 - 645,165 - Contribution to(Use of)Fund Balance - - - - - - TOTAL OTHER SOURCES(USES) 654,835 - 645,165 - 645,165 - Net change in fund balance 115,482 - 557,142 (548,376) 8,766 (92,500) FUND BALANCE,BEGINNING - 115,482 115,482 - 115,482 124,248 FUND BALANCE,ENDING $ 115,482 $ 115,482 $ 672,624 $ (548,376) $ 124,248 $ 31,748 Annual Operating Budget Fiscal Year 2022 Page 7 CEDAR HAMMOCK g6, I 1 A 1 Agenda P a 6 Community Development District 002 General Fund AMORTIZATION SCHEDULE BRIDGE AND BULKHEAD CAPITAL PROJECT- LOAN Period Extraordinary Annual Debt Ending Principal Redemption Rate Interest Debt Service Service 11/1/2020 $180,000 3.35% $ 33,030 $ 33,030 5/1/2021 $ 560,000 3.35% $ 18,891 $ 578,891 $ 611,921 11/1/2021 3.35% $ 9,446 $ 9,446 5/1/2022 $ 560,000 3.35% $ 9,446 $ 569,446 $ 578,891 I $ 1,120,000 $ 180,000 $ 70,812 $ 1,190,812 $ 1,190,812I Annual Operating Budget Fiscal Year 2022 Page 8 CEDAR HAMMOCK Agenda PIka417I 1 A + Community Development District Bulkhead and Bridge Restoration Fund Budget Narrative Fiscal Year 2022 REVENUES Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Discounts Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative Prof Service-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. Per the Florida Statutes, administrative costs shall include, but not be limited to,those costs associated with personnel,forms,supplies, data processing, computer equipment, postage, and programming. The budget for property appraiser costs was based on 1.5%of gross assessments. Misc-Assessment Collection Costs The District reimburses the Tax Collector for necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The budget for collection costs was based on a maximum of 2%of the anticipated assessment collections. Field Capital Outlay Bulkhead and Bridges Project Costs associated with the Bulkhead/Bridge Repair/Replacement Project. A loan for $1.3M, including interest and related costs,was taken out for this project in FY21. Annual Operating Budget Fiscal Year 2022 Page 9 1611A1 CEDAR HAMMOCK Agenda Package 18 Community Development District General Fund Exhibit"A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance- Fiscal Year 2022 $ 339,892 Net Change in Fund Balance-Fiscal Year 2022 - Reserves-Fiscal Year 2022 Additions 159,800 Total Funds Available(Estimated)-FY22 499,692 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve-First Quarter Operating Capital 58,977 11l Reserves-Bridges Prior Year's Reserve Funding - FY 2022 Reserve Funding 19,950 19,950 Reserves-Bulkheads Prior Year's Reserve Funding - FY 2022 Reserve Funding 19,950 19,950 Reserves-Irrigation FY2022 Reserve Funding 19,950 19,950 Reserves-Lakes Prior Year's Reserve Funding _ FY 2022 Reserve Funding 19,950 19,950 Reserves-Roadways Prior Year's Reserve Funding - FY 2022 Reserve Funding 80,000 80,000 Subtotal 218,777 Total Allocation of Available Funds 218,777 Total Unassigned(undesignated)Cash $ 280,915 Notes (1)Represents approximately 3 months of operating expenditures. Annual Operating Budget Fiscal Year 2022 Page 10 1611A1 Agenda Package 19 CEDAR HAMMOCK Community Development District Supporting Budget Schedules Fiscal Year 2022 1611A1 CEDAR HAMMOCK Agenda Package 20 Community Development District 2021-2022 Assessment Chart O&M Assessment Bridges and Bulkhead Project Total Total Prior Year FY 2022 FY 2021 Percent FY 2022 FY 2021 Percent FY 2022 FY 2021 Percent Product Total Units Fund Fund Change Fund Fund Change Per Unit Per Unit Change Single Family 65 $509.26 $374.23 36.08% $ 658.11 $ 946.48 -30.5°/0 $1,167.37 $1,320.71 -11.6% 2-Story 228 $509.26 $374.23 36.08% $ 658.11 $ 946.48 -30.5% $1,167.37 $1,320.71 -11.6% 4-Story 330 $509.26 $374.23 36.08% $ 658.11 $ 946.48 -30.5% $1,167.37 $1,320.71 -11.6% Duplex 176 $509.26 $374.23 36.08% $ 658.11 $ 946.48 -30.5% $1,167.37 $1,320.71 -11.6% 799 Annual Operating Budget Fiscal Year 2022 Page 11 1611A1 Agenda Package 23 Bastos Pavers Inc 3251 Old Metro Parkway FORT MYERS, FL 33916 (239) 275-7283 - - bastos@bastospavers.com http://bastospavers.com Estimate ADDRESS SHIP TO ESTIMATE# 16156 Norman Day Norman Day DATE 03/16/2021 CEDAR HAMMOCK GOLF CEDAR HAMMOCK GOLF CLUB CLUB 8660 Cedar Hammock Blvd 8660 Cedar Hammock Blvd Naples, FL, 34112 Naples, FL, 34112 Services 1 4,500.00 4,500.00 Remove paver section on the front of the exit gate and dig and install 12"of base rock compact re- level and re- set the pavers re -use the same pavers . 24'x 18' Total:432 Sq.Ft (We will remove pavers from a different location to replace the broken pavers on this area. ) TOTAL $4,500.00 Accepted By Accepted Date Depending on the project, a 40% deposit will be required. Price is for Check or cash payment. Credit card payments are subject to a surcharge fee. 1 6 I 1 A 1 Agenda Package 24 ADDENDUM TO AGREEMENT This ADDENDUM TO AGREEMENT ("Addendum") dated as of the 18`h day of March, 2021 by and between the Cedar Hammock Community Development District ("DISTRICT")and Bastos Pavers, Inc. ("CONTRACTOR"). (DISTRICT and CONTRACTOR being collectively referred to herein as the"Parties"). WHEREAS, the Parties entered into a paver repair agreement ("Agreement") on March 18, 2021; and WHEREAS, the DISTRICT is a "public agency" pursuant to Section 119.0701(1)(b), Florida Statutes, and Chapter 119, Florida Statutes, provides for certain contract requirements related to public records in each public agency contract for services. WHEREAS, the parties desire to incorporate certain provisions relating to public records together with other supplemental contract provisions. NOW THEREFORE, the Parties hereby agree as follows: 1. CONTRACTOR agrees to comply with Florida's public records law by keeping and maintaining public records that ordinarily and necessarily would be required by the DISTRICT in order to perform the services under the Agreement by doing the following: upon the request of the DISTRICT's Custodian of Public Records, providing the DISTRICT with copies of or access to public records on the same terms and conditions that the DISTRICT would provide the records and at a cost that does not exceed the cost provided by Florida law;by ensuring that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the term of this Agreement and following completion of the Agreement if the CONTRACTOR does not transfer the records to the DISTRICT; and upon completion of the Agreement by transferring, at no cost, to the DISTRICT all public records in possession of the CONTRACTOR or by keeping and maintaining all public records required by the DISTRICT to perform the services. If the CONTRACTOR transfers all public records to the DISTRICT upon completion of the Agreement, the CONTRACTOR shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the CONTRACTOR keeps and maintains public records upon completion of the Agreement, the CONTRACTOR shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the DISTRICT, upon request from the DISTRICT's Custodian of Public Records, in a format that is compatible with the information technology systems of the DISTRICT. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS WORK ASSIGNMENT, CONTACT THE DISTRICT'S 1611A1 Agenda Package 25 CUSTODIAN OF PUBLIC RECORDS SANDRA DEMARCO, AT INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES 210 N. UNIVERSITY DRIVE SUITE 702 CORAL SPRINGS, FL 33071, 954-603-0033 EXT. 40532, OR SANDRA.DEMARCO@INFRAMARK.COM. 2. "Beginning January 1,2021,every public employer,contractor,and subcontractor shall register with and use the E-Verify system to verify the work authorization status of all newly hired employees. A public employer, contractor,or subcontractor may not enter into a contract unless each party to the contract registers with and uses the E-Verify system." A. As a contractor doing business with a CDD,you must enroll your company in the E-Verify system, at: ''ttps://www.e-verify.gov," in order to be able to contract to provide services with the CDD. B. On a going forward basis, you must include a provision regarding E-Verify in all contracts. Below is a generic draft of such language. This may need to be tailored for your contracts. C. If you contract with sub-contractors for work done for the CDD,you are responsible to verify your subcontractors are utilizing the E-Verify system per the conditions noted below. 3. 2. Contractor or any subcontractor performing the work described in this Contract shall maintain throughout the term of this Contract the following insurance: (a) Workers' Compensation coverage, in full compliance with Florida statutory requirements, for all employees of Contractor who are to provide a service under this Contract, as required under applicable Florida Statutes AND Employer's Liability with limits of not less than$1,000,000.00 per employee per accident, $500,000.00 disease aggregate, and$100,000.00 per employee per disease. (b) Commercial General Liability"occurrence" coverage in the minimum amount of $1,000,000 combined single limit bodily injury and property damage each occurrence and $2,000,000 aggregate, including personal injury,broad form property damage, products/completed operations, broad form blanket contractual and$100,000 fire legal liability. (c) Automobile Liability Insurance for bodily injuries in limits of not less than $1,000,000 combined single limit bodily injury and for property damage,providing coverage for any accident arising out of or resulting from the operation, maintenance, or use by Contractor of any owned, non-owned, or hired automobiles, trailers, or other equipment required to be licensed. Said insurance shall also to include insured/underinsured motorists coverage in the minimum amount of$100,000 when there are owned vehicles. 2 1611A1 Agenda Package 26 District, its staff, consultants, agents and supervisors shall be named as an additional insured on all policies required (excluding worker's compensation). Contractor shall furnish District with the Certificate of Insurance evidencing compliance with this requirement. No certificate shall be acceptable to District unless it provides that any change or termination within the policy periods of the insurance coverage, as certified, shall not be effective within thirty(30) days of prior written notice to District. Insurance coverage shall be from a reputable insurance carrier acceptable to District, who licensed to conduct business in the State of Florida, and such carrier shall have a Best's Insurance Reports rating of at least A-VII. If Contractor fails to have secured and maintained the required insurance, District has the right(without any obligation to do so, however),to secure such required insurance in which event, Contractor shall pay the cost for that required insurance and shall furnish, upon demand, all information that may be required in connection with District's obtaining the required insurance. 4. This Contract shall be construed, governed and interpreted in accordance with the laws of the State of Florida. 5. In the event of litigation arising out of either party's obligations under this Contract,sole and exclusive venue shall lie in Collier County, Florida. 6. Invoices shall be paid within 30 days from receipt of valid invoices and work acceptance. 7. All other provisions to the Agreement shall remain in full force and effect. IN WITNESS WHEREOF,the Parties have caused this Addendum to be executed by their respective duly authorized officers as of the date first above written. District: CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT By: Contractor: BASTOS PAVERS, INC. By: 3 1 6 I 1A1 Agenda Package 27 From: Bastos@bastospavers.com <bastos@bastospavers.com> Sent:Tuesday, March 23, 2021 11:17 AM To: Faircloth,Justin <justin.faircloth@inframark.com> Subject: Re: CHCDD-Bastos Pavers Inc Estimate 16156 Justin, I spoke with our director for the addendum agreement you want us to sign. There are 2 things in the agreement that need to be changed: 1. The insurance amounts need to be adjusted to what we have under our coverage, which is what we are required to have for the work we do 2. Invoices should be paid within 15 days of work being completed, not 30 days. I have attached our license, insurance and W9. Once these have been changed,then we can sign the agreement and send you our contract to sign. Once we receive the signed contract and deposit, we can schedule the project to be completed. Thank you, Danielle From: Faircloth,Justin <1ustin.faircloth@inframark.com> Date: Thursday, March 18, 2021 at 4:49 PM To: )spavers.com <bastos(aobastospavers.com> Cc: Norman Day (nday@cedarhammockcdd.com) <nday@cedarhammockcdd.com> Subject: CHCDD-Bastos Pavers Inc Estimate 16156 Good afternoon, Would you please revise the attached proposal to be made out to the Cedar Hammock CDD at the billing address below? Cedar Hammock CDD CIO Inframark 210 N. University Dr. Suite 702 Coral Springs, FL 33071 The attached addendum will be required for this project. Please review, sign, and provide the required insurance coverages along with a W-9 and your business license. We would like to have this work scheduled between 5/15 —5/30 this year. If a deposit will be required for this project please submit an invoice to the deposit as well. Let me know if you have any questions. Sincerely, Justin Justin Faircloth I CAM, CDM I District Manager 16I 1A 1 ACo CERTIFICATE OF LIABILITY INSURANCE Agenda PackaRWMM/t ) 03/23/2021 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CON I ACT NAME: Challmar Assls WE Insure Group PHONE 239-313 2045 FAX (A/C,No,Ext): (A/c,No): 877-890-4638 10231 Metro ParkwaySte.104 A-MAIL ADDRESS: info@weinsurefm.com INSURER(S)AFFORDING COVERAGE NAIC# Fort Myers FL 33966 INSURER A: State Nacional Insurance Company,INC.(16285) 16285 INSURED INSURER B: Prime P&C BASTOS PAVERS,INC INSURER C: Normandy Harbor 13012 3251 Old Metro Parkway INSURER D: INSURER E: Fort Myers FL 33916 INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR AUUL SUBK PULICY EH- PULK,t-EXP LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1.000.000 UAMAC,E I U KEN I EU CLAIMS-MADE X OCCUR PREMISES(Ea occurrence) $ 100.000 MED EXP(Any one person) $ 10.000 A Y NXTCK1 0005-00-GL 06/27/2020 06/27/2021 PERSONAL&ADV INJURY $ 1.000.000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2.000.000 X POLICY PRO- JECT LOC PRODUCTS-COMP/OP AGG $ 2.000.000 OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMI I (Ea accident) $ 300.000 ANY AUTO BODILY INJURY(Per person) $ B — ALL OWNED —SCHEDULED BODILY INJURY(Per accident)AUTOS X AUTOS PC20111856-0 11/24/2020 11/24/2021 $ —HIRED AUTOS NON-OWNED PROPERLY DAMAGE $ AUTOS (Per accident) UMBRELLA LIAR OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION X STATUTE H-ER AND EMPLOYERS'LIABILITY Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ 1,000,000 C OFFICER/MEMBER EXCLUDED? N N/A NHFL0058122020 10/15/2020 10/15/2021 (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,NOTICE WILL BE DELIVERED IN Cedar Hammock ACCORDANCE WITH THE POLICY PROVISIONS. 8660 Cedar Hammock Blvd AUTHORIZED REPRESENTATIVE Naples,FL,34112 C1::Z; ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD 1611A1 Agenda Package 37 CEDAR HAMMOCK Community Development District Financial Report February 28, 2021 (Unaudited) Prepared by: ONFRAMARK 1oI1A1 CEDAR HAMMOCK Agenda Package 38 Community Development District Table of Contents FINANCIAL STATEMENTS Pages Balance Sheet 1 General Fund 2-3 General Fund-Bulkhead/Bridge Restoration Fund 4 SUPPORTING SCHEDULES Non-Ad Valorem Special Assessments 5 Cash and Investment Report 6 Valley National Bank Reconciliation 7 Check Register 8-9 1 6 I 1 A 1 Agenda Package 39 CEDAR HAMMOCK Community Development District Financial Statements (Unaudited) February 28, 2021 1oI1A1 CEDAR HAMMOCK Agenda Package 40 Community Development District Governmental Funds Balance Sheet February 28, 2021 GF-BULKHEAD AND BRIDGE GENERAL RESTORATION ACCOUNT DESCRIPTION FUND FUND TOTAL ASSETS Cash-Checking Account $ 1,037,804 $ - $ 1,037,804 Due From Other Funds - 672,623 672,623 Investments: Money Market Account 215,131 - 215,131 Deposits 1,359 - 1,359 TOTAL ASSETS $ 1,254,294 $ 672,623 $ 1,926,917 LIABILITIES Accounts Payable $ 1,856 $ - $ 1,856 Due To Other Funds 672,623 - 672,623 TOTAL LIABILITIES 674,479 - 674,479 FUND BALANCES Nonspendable: Deposits 1,359 - 1,359 Assigned to: Operating Reserves 108,140 - 108,140 Unassigned: 470,316 672,623 1,142,939 TOTAL FUND BALANCES $ 579,815 $ 672,623 $ 1,252,438 TOTAL LIABILITIES&FUND BALANCES $ 1,254,294 $ 672,623 $ 1,926,917 Page 1 1611A1 CEDAR HAMMOCK Agenda Package 41 Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28,2021 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ 10,088 $ 4,203 $ 1,151 $ (3,052) Interest-Tax Collector - - 90 90 Special Assmnts-Tax Collector 299,007 285,964 286,649 685 Special Assmnts-Discounts (11,960) (11,438) (11,101) 337 TOTAL REVENUES 297,135 278,729 276,789 (1,940) EXPENDITURES Administration ProfServ-Engineering 30,000 12,500 3,961 8,539 ProfServ-Legal Services 4,249 1,770 1,408 362 ProfServ-Mgmt Consulting Sery 40,742 16,976 16,976 - ProfServ-Property Appraiser 4,485 4,485 - 4,485 ProfServ-Special Assessment 8,938 8,938 8,120 818 ProfServ-Web Site Maintenance 696 290 290 - Auditing Services 5,000 - - - Postage and Freight 900 375 107 268 Insurance-General Liability 7,920 7,920 7,200 720 Printing and Binding 2,000 833 164 669 Legal Advertising 3,000 1,250 - 1,250 Misc-Bank Charges 700 292 - 292 Misc-Assessmnt Collection Cost 5,980 5,718 5,511 207 Misc-Web Hosting 1,799 750 632 118 Office Supplies 100 42 - 42 Annual District Filing Fee 175 175 175 - Total Administration 116,684 62,314 44,544 17,770 Page 2 1611A1 CEDAR HAMMOCK Agenda Package 42 Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28, 2021 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) Field ProfServ-Field Management 1,633 680 5,737 (5,057) Contracts-Water Mgmt Services 7,200 3,000 3,000 - Utility-Cameras 1,268 528 540 (12) Electricity-Wells 4,866 2,028 2,042 (14) Electricity-Aerator 2,000 833 565 268 R&M-Lake 3,000 1,250 - 1,250 R&M-Plant Replacement 3,015 1,256 - 1,256 R&M Bulkheads 5,000 2,083 - 2,083 R&M-Bridges&Cart Paths 5,000 2,083 - 2,083 Misc-Contingency 17,469 7,278 - 7,278 Capital Outlay - - 8,820 (8,820) Reserve-Bridges 10,000 4,167 - 4,167 Reserve-Bulkheads 10,000 4,167 - 4,167 Reserve-Lakes 10,000 4,167 - 4,167 Reserve-Roadways 100,000 41,667 - 41,667 Total Field 180,451 75,187 20,704 54,483 TOTAL EXPENDITURES 297,135 137,501 65,248 72,253 Excess(deficiency)of revenues Over(under)expenditures - 141,228 211,541 70,313 Net change in fund balance $ - $ 141,228 $ 211,541 $ 70,313 FUND BALANCE,BEGINNING(OCT 1,2020) 368,274 368,274 368,274 FUND BALANCE,ENDING $ 368,274 $ 509,502 $ 579,815 Page 3 1611A1 CEDAR HAMMOCK Agenda Package 43 Community Development District Gf-Bulkhead And Bridge Restoration Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28,2021 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ - $ - $ - $ - Special Assmnts-Tax Collector 756,239 685,212 724,976 39,764 Special Assmnts-Discounts (30,250) (27,409) (28,076) (667) Other Miscellaneous Revenues - - 15,900 15,900 TOTAL REVENUES 725,989 657,803 712,800 54,997 EXPENDITURES Administration ProfServ-Property Appraiser 11,343 11,343 - 11,343 Misc-Assessmnt Collection Cost 15,124 13,703 13,938 (235) Total Administration 26,467 25,046 13,938 11,108 Field Capital Outlay-Bulkheads 699,522 291,468 603,410 (311,942) Total Field 699,522 291,468 603,410 (311,942) Debt Service Operating Loan Repayment - - 183,475 (183,475) Total Debt Service - - 183,475 (183,475) TOTAL EXPENDITURES 725,989 316,514 800,823 (484,309) Excess(deficiency)of revenues Over(under)expenditures - 341,289 (88,023) (429,312) OTHER FINANCING SOURCES(USES) Loan/Note Proceeds - - 645,165 645,165 TOTAL FINANCING SOURCES(USES) - - 645,165 645,165 Net change in fund balance $ - $ 341,289 $ 557,142 $ 215,853 FUND BALANCE,BEGINNING(OCT 1,2020) 115,481 115,481 115,481 FUND BALANCE,ENDING $ 115,481 $ 456,770 $ 672,623 Page 4 16I1A1 Agenda Package 44 CEDAR HAMMOCK Community Development District Supporting Schedules February 28, 2021 16I1A1 CEDAR HAMMOCK Agenda Package 45 Community Development District Non-Ad Valorem Special Assessments (Collier County Tax Collector-Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2021 ALLOCATION Bulkhead/Bridge Date Net Amount (Discount) Commission Amount General Fund Restoration Received Received Amount Amount Received Assessments Assessments Assessments Levied For FY 2021 $ 1,055,247 $ 299,010 $ 756,238 Allocation % 100% 28% 72% 10/29/20 $ 10,209 $ 584 $ 208 $ 11,001 $ 3,117 $ 7,884 11/13/20 6,213 264 127 6,604 1,871 4,732 11/17/20 209,986 8,928 4,285 223,200 63,245 159,955 11/19/20 233,594 9,932 4,767 248,293 70,355 177,938 12/10/20 397,607 16,906 8,114 422,627 119,754 302,874 12/20/20 26,688 898 545 28,130 7,971 20,159 01/31/21 40,707 1,177 831 42,714 12,103 30,611 02/17/21 27,996 489 571 29,056 8,233 20,823 TOTAL $ 952,999 $ 39,177 $ 19,449 $ 1,011,625 $ 286,649 $ 724,976 % COLLECTED 96% 96% 96% TOTAL OUTSTANDING $ 43,622 $ 12,361 $ 31,262 Page 5 1611A1 CEDAR HAMMOCK Agenda Package 46 Community Development District All Funds Cash and Investment Report February 28, 2021 General Fund Account Name Bank Name Investment Type Maturity Yield Balance Checking Account- Operating Valley National Bank Gov't Interest Checking n/a 0.25% 1,037,804 Money Market Account BankUnited Public Funds MMA n/a 0.30% 215,131 Total $ 1,252,935 Page 6 1 6 1 1 A 1 Cedar Hammock CDD Agenda Package 47 Bank Reconciliation Bank Account No. 2555 Valley National Bank GF Statement No. 2/21 Statement Date 2/28/2021 G/L Balance(LCY) 1,037,803.78 Statement Balance 1,039,583.78 G/L Balance 1,037,803.78 Outstanding Deposits 0.00 Positive Adjustments 0.00 Subtotal 1,039,583.78 Subtotal 1,037,803.78 Outstanding Checks 1,780.00 Negative Adjustments 0.00 Differences 0.00 Ending G/L Balance 1,037,803.78 Ending Balance 1,037,803.78 Difference 0.00 Posting Document Document Cleared Date Type No. Description Amount Amount Difference Outstanding Checks 2/22/2021 Payment 2531 CARDNO ENTRIX 600.00 0.00 600.00 2/25/2021 Payment 2533 BANKS ENGINEERING INC 1,180.00 0.00 1,180.00 Total Outstanding Checks 1,780.00 1,780.00 Page 7 161 1A1 O p N X,O O O N N CD 0, O 0 O CD CV LO CDLO «)CV 0) CD 0,O 0, CV CDLO LO 0) O '- (N O p O p O p N O Ln Lo M O cc, O E> 1J 10 O p Ln (0 N M V CO Lf) 0 p O p O p Ln c0 N- Ln L()a0 I� O p o c on E� 0)M 7-EA L[)L()E9 c0 N N O p O p 0)M CO E/)Ln L() N) CO a0 00 E a 00 .9 M Ea EA an 9' LO - 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CV • m > CV ILI / Q N Z 0 v v W v _ °1 co o co v el al U a `N" v v LC) LO m Q d rn N rn N T >t M N M FN U r c0 a0 7co N L CC N N O) CO LO 0 w -0 0 0 Q Q � O a) •Ce C- CL r < Q S r 0 O (n Z . r o r- CD C N CV V I,- CVG O U m N 0) N Y 1L C NCV 0 NCV 0 N NCV 0 N •- CV O CV CDCV CVCV O CV v O CD CV O 5O 5 Q 2 ct Q m W ca T 2 2 2 2 2 a a J J J J J LL a a LL LL LL LL LL LL LL N T CO I- a a a a) a v.,7 co a 7 c0> c0 > N N N N N O O O O O A D N #N N 4* N #N 0 2 O =a- 2 N 2 N = ,->� O Q Q 0 Q 0 Q 0 Q 0 Agenda Packa't 5' I 1 A 1 Cedar Hammock Community Development District ANNUAL FINANCIAL REPORT September 30, 2020 Agenda Package 52611 ,u 2611A 1 Cedar Hammock Community Development District ANNUAL FINANCIAL REPORT September 30, 2020 TABLE OF CONTENTS Page Number REPORT OF INDEPENDENT AUDITORS 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-7 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements Statement of Net Position 8 Statement of Activities 9 Fund Financial Statements: Balance Sheet— General Fund 10 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities 11 Statement of Revenues, Expenditures and Changes in Fund Balances— General Fund 12 Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances of Governmental Funds to the Statement of Activities 13 Statement of Revenues, Expenditures and Change in Fund Balances— Budget and Actual —General Fund 14 Notes to Financial Statements 15-25 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 26-27 MANAGEMENT LETTER 28-29 INDEPENDENT ACCOUNTANT'S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES 30 16i 1A1 Agenda Package 53 -ce Gaines & Frank Elam, Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce,Florida 34950 772/461-6120//461-1155 FAX: 772/468-9278 REPORT OF INDEPENDENT AUDITORS To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of Cedar Hammock Community Development District as of and for the year ended September 30, 2020, and the related notes to 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 an opinion 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 Accounting 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 opinion. Fort Pierce/Stuart Member AICPA Member AICPA Division for CPA Firms Member FICPA Private Companies practice Section 1611A1 Agenda Package 54 <Cy<c Berger,Toombs, Elam, Gaines& Frank Ce.fied Pufn'ic Accuundnn Pt To the Board of Supervisors Cedar Hammock Community Development District Opinion 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 General Fund of Cedar Hammock Community Development District, as of September 30, 2020, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity 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 Discussion and Analysis 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 a report dated March 31, 2021 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 and contracts. 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 Cedar Hammock Community Development District's internal control over financial reporting and compliance. alti JOONkod Q�Ix1 )idat;Iji0) Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 31, 2021 - 2 - io11A1 Agenda Package 55 Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2020 Management's discussion and analysis of Cedar Hammock Community Development District (the "District") financial performance provides an objective and easily readable analysis of the District's financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District's financial statements. OVERVIEW OF THE FINANACIAL STATEMENTS The District's basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of the District's financial position and results of operations. The Fund financial statements present financial information for the District's major funds. The Notes to financial statements provide additional information concerning the District's finances. The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments. The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position are reported in two categories; invested in capital assets, net of related debt, and unrestricted. Assets, liabilities and net position are reported for all Governmental activities. The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District's operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government, physical environment and interest on long term debt. Fund financial statements present financial information for governmental funds. These statements provide financial information for the major governmental funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources. - 3 - 1 6 1 1 A 1 Agenda Package 56 Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2020 OVERVIEW OF THE FINANACIAL STATEMENTS (CONTINUED) Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances— budget and actual, is provided for the District's General Fund. Fund financial statements provide more detailed information about the District's activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements. The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District's financial standing. These statements are comparable to private-sector companies and give a good understanding of the District's overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including buildings, land, roads, bridges, and traffic signals are reported in the statement of net position. All liabilities, including principal outstanding on bonds, are included. The statement of activities includes depreciation on all long-lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid "doubling up" the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the government-wide financial statements. Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements. Financial Highlights: The following are the highlights of financial activity for the year ended September 30, 2020. • The District's total assets exceeded total liabilities by $14,771,253 (net position). Unrestricted net position for Governmental Activities was $483,756. Net investment in capital assets was $14,287,497. • Governmental Activities revenues totaled $1,582,699 while governmental activities expenses totaled $541,654. - 4- 1611A1 Agenda Package 57 Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2020 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes. Net Position Governmental Activities 2020 2019 Current assets $ 613,051 $ 886,964 Capital assets 14,942,332 12,864,267 Total Assets 15,555,383 13,751,231 Current liabilities 784,130 21,023 Net position - net investment in capital assets 14,287,497 12,864,267 Net position - unrestricted 483,756 865,941 Total Net Position $ 14,771,253 $ 13,730,208 The decrease in current assets and net position — unrestricted is the result of the construction in progress project in the current year. The increase in capital assets and net position —net investment in capital assets is primarily due to capital additions exceeding depreciation in the current year. - 5 - 161 1A1 Agenda Package 58 Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2020 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District (Continued) The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes. Change in Net Position Governmental Activities 2020 2019 Governmental Revenues Charges for services $ 1,547,077 $ 365,622 Intergovernmental revenues 1,082 12,622 Miscellaneous revenues 17,875 1,975 Investment earnings 16,665 17,379 Total Revenues 1,582,699 397,598 Expenses General government 155,508 130,975 Physical environment 386,146 423,915 Total Expenses 541,654 554,890 Change in Net Position 1,041,045 (157,292) Net Position - Beginning of Year 13,730,208 13,887,500 Net Position - End of Year $ 14,771,253 $ 13,730,208 The increase in charges for services is related to a budgeted increase in special assessments for the bulkhead capital project. The increase in general government is related to the increase in collection fees in the current year. The decrease in physical environment is primarily related to bulkhead repairs in the prior year. - 6 - 1611A1 Agenda Package 59 Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2020 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Capital Assets Activity The following schedule provides a summary of the District's capital assets as of September 30, 2020 and 2019. Governmental Activities Description 2020 2019 Land and improvements $ 10,991,512 $ 10,991,512 Construction in progress 2,329,545 - Buildings and improvements 359,117 359,117 Infrastructure 5,747,726 5,747,726 Equipment 41,856 41,856 Accumulated depreciation (4,527,424) (4,275,944) Total Capital Assets (Net) $ 14,942,332 $ 12,864,267 During the year, depreciation was $251,480, and capital additions were $2,329,545. General Fund Budgetary Highlights The budget exceeded actual government expenditures primarily due to less contingency and repair and maintenance expenditures than were anticipated. The September 30, 2020 budget was amended for reserve expenditures that were not anticipated in the original budget. Economic Factors and Next Year's Budget Cedar Hammock Community Development District anticipates borrowing additional funds for a major bulkhead repair project in fiscal year 2021. Request for Information The financial report is designed to provide a general overview of Cedar Hammock Community Development District's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Cedar Hammock Community Development District, Inframark Infrastructure Management Services, Inc., 210 N. University Drive, Suite 702, Coral Springs, Florida 33071. - 7- 1611A1 Agenda Package 60 Cedar Hammock Community Development District STATEMENT OF NET POSITION September 30, 2020 Governmental Activities ASSETS Current Assets: Cash and cash equivalents $ 595,308 Assessments receivable 2,147 Due from other governments 7,037 Prepaid expenses 7,200 Deposits 1,359 Total Current Assets 613,051 Non-Current Assets: Capital Assets Not Being Depreciated Land and improvements 10,991,512 Construction in progress 2,329,545 Capital Assets Being Depreciated Buildings and improvements 359,117 Infrastructure 5,747,726 Equipment 41,856 Less: accumulated depreciation (4,527,424) Total Non-Current Assets 14,942,332 Total Assets 15,555,383 LIABILITIES Current Liabilities: Accounts payable and accrued expenses 127,404 Due to other governments 1,891 Note payable 654,835 Total Current Liabilities 784,130 NET POSITION Net investment in capital assets 14,287,497 Unrestricted 483,756 Total Net Position $ 14,771,253 See accompanying notes to financial statements. - 8 - 1611A1 Agenda Package 61 Cedar Hammock Community Development District STATEMENT OF ACTIVITIES For the Year Ended September 30, 2020 Net (Expense) Revenue and Program Changes in Revenues Net Position Charges for Governmental Functions/Programs Expenses Services Activities Primary government Governmental Activities General government $ (155,508) $ 829,099 $ 673,591 Physical environment (386,146) 717,978 331,832 Total Governmental Activities $ (541,654) $ 1,547,077 1,005,423 General revenues: Intergovernmental revenues 1,082 Miscellaneous revenues 17,875 Interest earnings 16,665 Total General Revenues 35,622 Change in net position 1,041,045 Net Position - October 1, 2019 13,730,208 Net Position - September 30, 2020 $ 14,771,253 See accompanying notes to financial statements. - 9 - 1611A1 Agenda Package 62 Cedar Hammock Community Development District BALANCE SHEET— GENERAL FUND September 30, 2020 ASSETS Cash and cash equivalents $ 595,308 Assessments receivable 2,147 Due from other governments 7,037 Prepaid expenses 7,200 Deposits 1,359 Total Assets $ 613,051 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued expenses $ 127,404 Due to other governments 1,891 Total Liabilities 129,295 Fund balances Nonspendable: Prepaid expenses 7,200 Deposits 1,359 Assigned: Operating reserves 108,140 Unassigned 367,057 Total Fund Balances 483,756 Total Liabilities and Fund Balances $ 613,051 See accompanying notes to financial statements. - 10 - 1611A1 Agenda Package 63 Cedar Hammock Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES September 30, 2020 Total governmental fund balances $ 483,756 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets not being depreciated, land and improvements, $10,991,512, and construction in progress, $2,329,545, used in governmental activities are not current financial resources and therefore, are not reported at the fund level. 13,321,057 Capital assets being depreciated, building and improvements, $359,117, infrastructure, $5,747,726, and equipment, $41,856, net of accumulated depreciation, $(4,527,424), used in governmental activities are not current financial resources and therefore, are not reported at the fund level. 1,621,275 Notes payable are not payable from available resources and therefore, are not recognized at the fund level. (654,835) Net Position of Governmental Activities $ 14,771,253 See accompanying notes to financial statements. - 11 - 1 6 I 1 A 1 Agenda Package 64 Cedar Hammock Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES — GENERAL FUND For the Year Ended September 30, 2020 Revenues Special assessments $ 1,547,077 Intergovernmental revenues 1,082 Miscellaneos revenues 17,875 Interest earnings 16,665 Total Revenues 1,582,699 Expenditures Current General government 155,508 Physical environment 134,666 Capital outlay 2,329,545 Total Expenditures 2,619,719 Excess of revenues over/(under) expenditures (1,037,020) Other Financing Sources/(Uses) Issuance of note payable 654,835 Net Change in Fund Balances (382,185) Fund Balances- October 1, 2019 865,941 Fund Balances- September 30, 2020 $ 483,756 See accompanying notes to financial statements. - 12 - 16I 1A 1 Agenda Package 65 Cedar Hammock Community Development District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2020 Net change in fund balances -total governmental funds $ (382,185) 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 allocated over their estimated useful lives as depreciation expense. This is the amount that depreciation, $(251,480), was exceeded by capital outlay, $2,329,545, in the current year. 2,078,065 Proceeds from the issuance of long-term debt are recognized as an other financing source at the fund level, but increase liabilities at the government-wide level. (654,835) Change in Net Position of Governmental Activities $ 1,041,045 See accompanying notes to financial statements. - 13 - Agenda Package 66 Cedar Hammock Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES- BUDGET AND ACTUAL- GENERAL FUND For the Year Ended September 30, 2020 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Special assessments $1,541,464 $1,541,464 $1,547,077 $ 5,613 Intergovernmental revenues - - 1,082 1,082 Miscellaneous revenues - - 17,875 17,875 Interest earnings 10,570 10,570 16,665 6,095 Total Revenues 1,552,034 1,552,034 1,582,699 30,665 Expenditures Current General government 153,162 184,662 155,508 29,154 Physical environment 309,811 854,311 134,666 719,645 Capital outlay 1,089,061 1,639,061 2,329,545 (690,484) Total Expenditures 1,552,034 2,678,034 2,619,719 58,315 Excess of revenues over/(under) expenditures - (1,126,000) (1,037,020) 88,980 Other Financing Sources/(Uses) Issuance of note payable 500,000 500,000 654,835 154,835 Net change in fund balances 500,000 (626,000) (382,185) 243,815 Fund Balances- October 1, 2019 820,952 820,952 865,941 44,989 Fund Balances- September 30, 2020 $1,320,952 $ 194,952 $ 483,756 $ 288,804 See accompanying notes to financial statements. - 14 - 1 6 I 1 A 1 Agenda Package 67 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE A—SUMMARY OF ACCOUNTING POLICIES The financial statements of Cedar Hammock Community Development District (the "District") have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below. 1. Reporting Entity The District was established on November 23, 1999, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), by ordinance of the Board of County Commissioners of Collier County, as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, water supply, sewer and waste water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or outside the boundaries of the District. The District is governed by a five-member Board of Supervisors who are elected for four-year terms. The District operates within the criteria established by Chapter 190. As required by GAAP, these financial statements present the District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District's Board exercises oversight responsibility. Oversight responsibility includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters. Based upon the application of the above-mentioned criteria as set forth by the Governmental Accounting Standards Board the District has identified no component units. 2. Measurement Focus and Basis of Accounting The basic financial statements of the District are composed of the following: • Government-wide financial statements • Fund financial statements • Notes to financial statements - 15 - 161141 Agenda Package 68 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE A—SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) a. Government-wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include the governmental activities of the primary government. The effect of interfund activity has been removed from these statements. Governmental activities are normally supported by special assessments and interest. Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financial source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. b. Fund Financial Statements The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually. - 16- 1611A1 Agenda Package 69 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 — Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications include non-spendable, restricted, committed, assigned and unassigned. The District has a policy governing the fund balance classifications. Nonspendable Fund Balance — This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Restricted Fund Balance — This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Assigned Fund Balance — This classification consists of the Board of Supervisors' intent to be used for specific purposes, but are neither restricted nor committed. Unassigned Fund Balance — This classification is the residual classification for the government's general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. Fund Balance Spending Hierarchy — For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances. - 17 - Agenda PackLe 6 1 1 A 1 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources". Governmental fund operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability. 3. Basis of Presentation a. Governmental Major Funds General Fund — The General Fund is the District's primary operating fund. It accounts for all financial resources of the general government. - 18 - 16r 1A1 Agenda Package 71 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3. Basis of Presentation (Continued) b. Non-current Governmental Assets/Liabilities GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as bonds payable, be reported in the governmental activities column in the government-wide statement of net position. 4. Assets, Liabilities, and Net Position or Equity a. Cash and Investments Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits. The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of: 1. Direct obligations of the United States Treasury; 2. The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969; 3. Interest-bearing time deposits or savings accounts in authorized qualified public depositories; 4. Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency. b. Restricted Assets Certain assets of the District and a corresponding liability or portion of net position is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position. - 19 - 1611A Agenda Package 72 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, and Net Position or Equity (Continued) c. Capital Assets Capital assets, which include land, construction in progress, buildings, infrastructure and equipment, are reported in the governmental activities column. The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows: Buildings 7-39 years Improvements other than buildings 20-40 years Machinery and equipment 5-10 years d. Budgets Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur. - 20 - 1611A1 Agenda Package 73 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE B — RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 1. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position "Total fund balances" of the District's governmental funds, $483,756, differs from "net position" of governmental activities, $14,771,253, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the differences is illustrated below. Capital related items When capital assets (land, buildings, infrastructure and equipment that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole. Land and improvements $ 10,991,512 Construction in progress 2,329,545 Buildings and improvements 359,117 Infrastructure 5,747,726 Equipment 41,856 Accumulated depreciation (4,527,424) Total $ 14.942,332 Notes payable Notes payable that are not expected to be paid from available spendable resources and therefore, are not reflected at the fund level. Notes payable $ 654,835 2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities The "net change in fund balances" for government funds, $(382,185), differs from the "change in net position" for governmental activities, $1,041,045, reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below. - 21 - 16I1A1 Agenda Package 74 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE B — RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) 2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued) Capital related items When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation expense charged for the year. Depreciation $ (251,480) Capital outlay 2,329,545 Total $ 2,078.065 Long-term debt transactions Proceeds from the issuance of long-term debt are recognized as an other financing source at the fund level, but increase liabilities at the government-wide level. Issuance of long-term debt $ (654.835) NOTE C —CASH AND INVESTMENTS All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments. Custodial Credit Risk— Deposits Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2020, the District's bank balance was $597,808 and the carrying value was $595,308. Exposure to custodial credit risk was as follows. The District maintains all deposits and certificates of deposit in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes. - 22 - 6I1A1 Agenda Package 75 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE C —CASH AND INVESTMENTS (CONTINUED) Investments The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. As of September 30, 2020, the District did not hold any investments. NOTE D —SPECIAL ASSESSMENT REVENUES Special assessment revenues recognized for the 2019-2020 fiscal year were levied in October 2019. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes, discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on, or prior to, June 1; therefore, there were no material taxes receivable at fiscal year end. - 23- 1611A1 Agenda Package 76 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE E — CAPITAL ASSETS Capital asset activity for the year ended September 30, 2020 was as follows: Balance Balance October 1, September 30, 2019 Additions Deletions 2020 Governmental Activities: Capital assets, not being depreciated: Land and improvements $ 10,991,512 $ - $ - $ 10,991,512 Construction in progress - 2,329,545 - 2,329,545 Total Capital Assets, Not Depreciated 10,991,512 2,329,545 - 13,321,057 Capital assets, being depreciated: Building and improvements 359,117 - - 359,117 Infrastructure 5,747,726 - - 5,747,726 Equipment 41,856 - - 41,856 Total Capital Assets, Being Depreciated 6,148,699 - - 6,148,699 Less accumulated depreciation for: Building and improvements (234,187) (15,256) - (249,443) Infrastructure (4,011,517) (233,821) - (4,245,338) Equipment (30,240) (2,403) - (32,643) Total Accumulated Depreciation (4,275,944) (251,480) - (4,527,424) Total Capital Assets Depreciated, Net 1,872,755 (251,480) - 1,621,275 Governmental Activities Capital Assets $ 12,864,267 $ 2,078,065 $ - $ 14,942,332 Depreciation ($251,480)was charged to physical environment. NOTE F— LONG-TERM DEBT In February 2020, the District entered into a loan agreement for $1,300,000 at an interest rate of 3.35% due May 1, 2022. The District made draws on the loan totaling $654,835 as of September 30, 2020. Summary of Significant Terms and Covenants The District levies special assessments pursuant to loan agreement and the assessment rolls are approved by resolutions of the District Board. The collections are to be strictly accounted for and applied to the bond series for which they were levied. The District covenants to levy special assessments in annual amounts adequate to provide for payment of principal and interest on the loan. However, payment of principal and interest is dependent on the money available and the District's ability to collect special assessments levied. - 24 - 16I1A1 Agenda Package 77 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE G — RISK MANAGEMENT The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. There were no claims or settled claims from these risks that have exceeded commercial insurance coverage over the past three years. NOTE H —SUBSEQUENT EVENT In December 2020, the District borrowed an additional $645,165 to fund a major bulkhead renovation. - 25 - 1 6 I 1A1 Agenda Package 78 r<< Berger, Toombs, Elam, - Gaines & Frank Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce,Florida 34950 772/461-6120//461-1155 FAX: 772/468-9278 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 Cedar Hammock 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 Cedar Hammock Community Development District, as of and for the year ended September 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated March 31, 2021. Internal Control Over Financial Reporting In planning and performing our audit, we considered Cedar Hammock Community Development District's internal control over financial reporting (internal control) as a basis for designing 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 Cedar Hammock Community Development District's internal control. Accordingly, we do not express an opinion on the effectiveness of Cedar Hammock Community Development 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 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. Fort Pierce/Stuart - 26 - Member AICPA Member AICPA Division for CPA Firms Member FICPA Private Companies practice Section 1611A1 Agenda Package 79 frr Berger,Toombs, Elam, -} Gaines& Frank CeNned PuwAckcuunents of To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether Cedar Hammock Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant 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. 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. 31t, daTY/06/fa/PG ioaukba) 4a4i. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 31, 2021 - 27- 1O11A1 Agenda Package 80 cec Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce,Florida 34950 772/461-6120//461-1155 FAX: 772/468-9278 MANAGEMENT LETTER To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Cedar Hammock Community Development District as of and for the year ended September 30, 2020, and have issued our report thereon dated March 31, 2021. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States; 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 Reporting Requirements We have issued our 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 and our Independent Auditor's Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated March 31, 2021, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been made to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations made in the preceding financial audit report. Financial Condition Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not Cedar Hammock Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that the Cedar Hammock Community Development District did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Fort Pierce/Stuart - 28 - Member AICPA Member AICPA Division for CPA Firms Member FICPA Private Companies practice Section I 6 I 1 A 1 Agenda Package 81 Etc Berger,Toombs, Elam, -} Gaines& Frank C thfre,WbIIkAccuunenn PL To the Board of Supervisors Cedar Hammock Community Development District Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2020 for the Cedar Hammock Community Development District. It is management's responsibility to monitor the Cedar Hammock Community Development District's financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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. In connection with our audit, we did not note any such findings. Purpose of this Letter 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, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. 31/ti d001YC4L Oaf 47 114A... Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 31, 2021 - 29 - 16I1A1 Agenda Package 82 c�� 41� Gaines & F a b k Elam, Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce,Florida 34950 772/461-6120//461-1155 FAX: 772/468-9278 INDEPENDENT ACCOUNTANT'S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida We have examined Cedar Hammock Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2020. Management is responsible for Cedar Hammock Community Development District's compliance with those requirements. Our responsibility is to express an opinion on Cedar Hammock Community Development 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 Cedar Hammock Community Development 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 Cedar Hammock Community Development District's compliance with the specified requirements. In our opinion, Cedar Hammock Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2020. 3,1Ad )00N;ft.t0)JOITYklalL Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 31, 2021 Fort Pierce/Stuart - 30- Member AICPA Member AICPA Division for CPA Firms Member FICPA Private Companies practice Section 16I1A1 Cedar Hammock Community Development District Inframark, Infrastructure Management Services 210 N.University Drive,Coral Springs,FL 33071 Tel: 954-603-0033; Fax: 954-345-1292 DATE: June 21, 2021 Memorandum to: Jim Kurtzeborn Cedar Hammock Golf and Country Club VIA EMAIL TO: GM@cedarhammockcc.com RE: Cedar Hammock CDD Minutes of: April 12, 2021 as approved at May 10, 2021 Meeting Enclosed for your record is a copy of the above-reference minutes for the Cedar Hammock Community Development District, which are to be kept on file for public access. FOR INFORMATIONAL PURPOSES ONLY: Crystal Kinzel, Director Clerk of the Circuit Court/Finance Dept. VIA EMAIL TO: Derek.johnssen@collierclerk.com Berger, Toombs, Elam, Gaines & Frank Via email to: audit@btef-cpas.com Justin Faircloth, iustin.faircloth@inframark.com 1611A1 MINUTES OF MEETING CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Cedar Hammock Community Development District was held Tuesday, April 12, 2021 at 2:00 p.m. at Cedar Hammock Clubhouse, 8660 Cedar Hammock Boulevard, Naples, FL 34112. Present and constituting a quorum were: Norman Day Chairman Quentin Greeley Vice-Chairman Gene Bolton Assistant Secretary John Martino Assistant Secretary Fred Bally Assistant Secretary Also present were: Justin Faircloth District Manager Eric Mannisto Superior Waterway Services Todd Legan Cedar Hammock Golf and Country Club Steve Shaw Cedar Hammock Golf and Country Club The following is a summary of the discussions and actions taken at the April 12, 2021 Cedar Hammock Community Development District's Board of Supervisors Meeting. FIRST ORDER OF BUSINESS Roll Call • Mr. Faircloth called the meeting to order and called the roll. A quorum was established. SECOND ORDER OF BUSINESS Approval of Agenda • Mr. Faircloth provided the Board an updated list of bridge sealing proposals and emailed proposal from Koala T Painting and from Action Automatic Door and Gate for the pedestrian gate locks. 1 6I 1A1 April 12, 2021 Cedar Hammock CDD On MOTION by Mr. Bally seconded by Mr. Day with all in favor the agenda was approved with the items above as noted. 5-0 THIRD ORDER OF BUSINESS Public Comments on Agenda Item • The Board asked Mr. Mannisto questions regarding the lake and requested he look into options of spraying the bulkheads to prevent algae growth on them. • Mr. Mannisto recommended additional treatments of the lakes and suggested dying them each year during the dry season to inhibit algae and submerged plant growth. • Board discussion ensued regarding the algae in the lakes. • The budget recommendation for this would be $12,000 to $16,000 per year. • Discussion ensued regarding carp. • Mr. Mannisto stated they were on site weekly to manage the lakes. FOURTH ORDER OF BUSINESS Old Business A. Bulkhead & Bridge Repair Replacement Project Update • Mr. Faircloth provided an update on the irrigation as-builts from RTS noting the vendor stated they would be provided to the Board during the current week. • Mr. Day provided an update with his on-site meeting with Glaze Golf for additional warranty items on the recent bulkhead and bridge repair replacement project. B. Review of the FY2022 Approved Tentative Budget • No additional changes were requested for the FY2022 budget. FIFTH ORDER OF BUSINESS New Business A. Bastos Pavers Estimate 16156 • Mr. Day provided the proposal to Mr. Faircloth. • Mr. Faircloth noted the vendor objected to a few items when he reached out to engage them to complete the work, they wanted payment within a certain time, but the other issue was their insurance concerns. • Mr. Day reviewed the purpose of the proposal. • The Board agreed to modify the addendum of the contract with Bastos Pavers to meet their requests regarding payment and insurance. 2 1 61 1A1 April 12, 2021 Cedar Hammock CDD On MOTION by Mr. Bally seconded by Mr. Greeley with all in favor the addendum of the contract with Bastos Pavers was modified to meet the requests regarding payment and insurance was approved. 5-0 B. Roadway Marking Discussion • Mr. Day indicated the club would like to remark all the roadways and Mr. Kurtzeborn informed him the cost was previously around $10,000. • Further discussion ensued on this matter with the Board requesting staff notate this as a budget item to consider for FY2023. SIXTH ORDER OF BUSINESS Attorney's Report • There being none, the next agenda item followed. SEVENTH ORDER OF BUSINESS Engineer's Report • There being none, the next agenda item followed. EIGHTH ORDER OF BUSINESS District Manager's Report A. Approval of the Minutes of March 8, 2021 Meeting • Mr. Faircloth asked if there were any corrections, deletions, or changes to the minutes. There being none, On MOTION by Mr. Greeley seconded by Mr. Bally with all in favor minutes of March 8, 2021 meeting were approved as presented. 5- 0 B. Acceptance of the February 2021 Financial Report • Mr. Faircloth asked if there were any changes or questions on the financial report. There being none, On MOTION by Mr. Bolton seconded by Mr. Martino with all in favor the financial report of February 2021 was accepted. 5-0 • Discussion ensued regarding making another prepayment on the loan. 3 4 I1A1 April 12, 2021 Cedar Hammock D On MOTION by Mr. Martino seconded by Mr. Bally with all in favor authorizing the District Manager to make another prepayment on the loan if possible subject to staff review not making any further reductions to the Bulkhead/Bridge Repair/Replacement assessment in the FY2022 budget was approved. 5-0 C. Acceptance of the FY2020 Audit Report presented by Berger, Toombs, Elam, Gaines & Frank On MOTION by Mr. Bolton seconded by Mr. Bally with all in favor the FY2020 Audit Report presented by Berger, Toombs, Elam, Gaines and Frank was accepted. 5-0 D. Follow-up Items • Mr. Faircloth provided an update on the follow-up items as follows: o A proposal was presented to add keypad locks to the pedestrian gates. The Board tabled the item pending receipt of a proposal from Action Door and Gate, Inc. Let the record reflect, Mr. Greeley left the meeting. o The Board discussed sealing the bridges. o Extensive discussion ensued on the matter. Mr. Day MOVED to approve the proposal from Custom Painting & Restoration in the amount of $25,892 to seal bridges #9, #16 and #17. Motion failed for lack of a second. Mr. Martino MOVED to wait to have the bridges #9, #16 and #17 sealed after the rainy season. Motion failed for lack of second. Mr. Day MOVED second by Mr. Bally to approve the proposal from Custom Painting & Restoration in the amount of $25,892 to seal bridges#9, #16 and#17. On VOICE vote with Mr. Day, Mr. Bally and Mr. Bolton voting AYE and Mr. Martino voting NAY the proposal from Custom Painting & Restoration in the amount of $25,892 to seal bridges #9, #16 and #17 was approved. 3-1 4 16 1Al April 12, 2021 Cedar Hammock CDD NINTH ORDER OF BUSINESS Supervisor Requests • Mr. Bally commented on the weeds in the bulkheads. TENTH ORDER OF BUSINESS Audience Comments • None. ELEVENTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Day seconded by Mr. Bally with all in favor the meeting was adjourned at 3:26 p.m. 4-0 ----Th4h ,tteciA44: stin Fl ' cloth, Secretary Alarrna -Bey, Chairman 5 1 6 I 1A2 Agenda Page 2 Heritage Bay Community Development District Inframark,Infrastructure Management Services 210 N.University Drive,Suite 702,Coral Springs,Florida 33071 Telephone:954-603-0033 Fax:954-345-1292 February 4, 2021 Board of Supervisors Heritage Bay Community Development District Dear Board Members: The regular meeting of the Board of Supervisors of the Heritage Bay Community Development District will be held on Thursday, February 11, 2021 at 9:00 a.m. in the Heritage Bay Clubhouse, 10154 Heritage Bay Blvd, Naples, Florida. Following is the advance agenda for the meeting: 1. Roll Call 2. Approval of Agenda 3. Public Comments on Agenda Items 4. Engineer's Report A. Clubhouse Dry Retention Modification Update B. Terrace VI Drain Line Repairs and CPH Oversight C. Veranda V—Non-compliance with ARC Approval Process &Related Water Discharge Issues D. Veranda VII& VIII -Request for Gutter and Downspout Installation and Related Water Discharge Issues E. Analyze and Document that Rip Rap on South Lake Bank of 30A Meets SFWMD Standards Update 5. Attorney's Report A. E-Verify Memorandum of Understanding 6. Lake &Wetland Management Monthly Inspections and Service Reports A. Review of Proposals to Control the Illinois Pond Weed in Aqua Range Lake 19 B. Littoral Planting Update i. Discussion Regarding Proposal Development for FY 2021 Plantings 7. Old Business A. Lake Tree Marking/Trimming Update B. CPH Study of Control Structures, Lake Interconnects and Lake Bank Assessments and Documentation i. Actions Taken Since Issuance of Reports 8. New Business A. Recommended Summer 2021 Work on Lake Banks 1, 5, 18 &26 B. January 27, 2021 Letter from Single Family Board Agenc1Pa63I 1 A 2 February 4,2021 Heritage Bay CDD 9. Manager's Report A. Approval of the Minutes of the January 7, 2021 Meeting B. Acceptance of Financials C. Field Manager's Reports D. Follow Up Items i. FEMA 10. Supervisors' Reports, Requests, and Comments 1 1. Chairman's Comments 12. Audience Comments 13. Adjournment Supporting documents for agenda items are enclosed or will be distributed at the meeting. The balance of the agenda is routine in nature, and staff will give their reports at the meeting. If you have any questions,please contact me. Sincerely, Justin Faircloth, District Manager 16l1A2 AY olop;___ .ANapirs alit/ Arm," . . ,....1 ....., PART OF THE USA TODAY NETWORK Published Daily Naples, FL 34110 HERITAGE BAY COMMUNI TY 210 N UNIVERSITY DR#702 NOTICE OF MEETING SCHEDULE CORAL SPRINGS,FL 33071-7320 HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT The Board of Supervisors of the Heritage Bay Community Devel- Affidavit of Publication opment District will hold their meetings for Fiscal Year 2020/2021 in the Heritage Bay Clubhouse, 10154 Heritage Bay STATE OF WISCONSIN Boulevard,Naples Florida,at 9:00 a.m.as follows: COUNTY OF BROWN October 1,2020 November 5,2020 020 Before the undersigned they serve as the authority, Dame ry 7,r 2021 personally appeared said legal clerk who on oath says that February 11,2021 21 he/she serves as Legal Clerk of the Naples DailyNews, a March, 02 1 P April 1,2021 daily newspaper published at Naples, in Collier County, May 6,2021 Florida; distributed in Collier and Lee counties of Florida; June 3,2021 July 1,2021 that the attached copy of the advertising was published in August 5,2021 said newspaper on dates listed. Affiant further says that the September 2,2021 said Naples Daily News is a newspaper published at The meetings are open to the public and will be conducted in Naples, in said Collier County, Florida, and that the said accordance with the provision of Florida Law for Community Development Districts. newspaper has heretofore been continuously published in said Please note that due to the ongoing nature of the COVID-19 public health emergency, it may be necessary to hold the above Collier County, Florida; distributed in Collier and Lee referenced meetings utilizing communications media technolo- counties of Florida, each day and has been entered as gy in order to protect the health and safety of the public or held at an alternative physical location other than the location second class mail matter at the post office in Naples, in indicated above. To that end, anyone wishing to participate in said Collier County, Florida, for a period of one year next such meetings should contact the District Manager's Office prior to each meeting to confirm the applicable meeting access preceding the first publication of the attached copy of and/or location information. Additionally, interested parties advertisement; and affiant further says that he has neither may refer to the District's website for the latest information: hups://www.heritagebaycdd.com. paid nor promised any person, or corporation any discount, rebate, commission or refund for the purpose of securing There may be occasions when one or more Supervisors will par- ticipate by telephone. The meetings may be continued to a this advertisement for publication in the said newspaper. date, time, and place to be specified on the record at the meet- ing. Published:09/16/2020 Any person requiring special accommodations at these meetings �T_ because of a disability or physical impairment should contact the District Manager's Office at least forty-eight (48)hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1, or 1-800-955- 8771 (TTY) / 1-800-955-8770 (Voice), for aid in contacting the Subscribed and sworn to before on September 16,2020: District Manager's Office. Each person who decides to appeal any action taken at these meetings is advised that person will need a record of the pro- ceedings and that accordingly, the person may need to ensure .._t)0.4..a_.Yv l uv‘--Q.L.rc 9-..' that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be Notary,State of WI,County of Brown based. Justin Faircloth District Manager T/\tiA MONDLOCFI September 16,2020 #4368432 Notary Public: State of Wisconsin 1 k My commission expires August 6,2021 Publication Cost:$427.00 Ad No:0004368432 Customer No: 1305454 PO#: #of Affidavits1 This is not an invoice _ 1 6 I 1 A 2 --(reS �R Mq,, Agenda Page 6 geamo SOUTH FLORIDA WATER MANAGEMENT DISTRICT iiti. Alert, -.$;•'',. .//4-y January 25, 2021 Michel Anderson Delivered via email Heritage Bay Golf& Country Club, Inc 11691 Gateway Blvd Fort Myers, FL 33913 Subject: Heritage Bay Golf& Country Club - Clubhouse Exp. Ph. 2 Construction Completion Certification Acceptance Environmental Resource Permit No. 11-101685-P Collier County Dear Mr. Anderson: The South Florida Water Management District (District) is in receipt of your January 5, 2021 construction completion certification (CCC) for the above referenced Environmental Resource Permit. Your CCC is accepted and the above referenced permit is hereby converted from the construction phase to the operation and maintenance phase. This acceptance is based on the District's review of the "As-built Certification and Request for Conversion to Operation Phase", Form 62-330.310(1), and a determination that construction is in substantial conformance with the plans and specifications approved by the District, in accordance with Section 62-330.310, Florida Administrative Code (FAC). By accepting the Florida registered professional's certification, District staff considers the stormwater management system permitted under the above referenced application number(s) to be in compliance with permit conditions pertaining to the CCC. If you have any questions or require additional assistance, please contact Randall Casburn at 239-338-2929 x7792 or via email at rcasburn@sfwmd.gov. Sincerely, gliwit 6•404.4. Randall Casburn Engineering Specialist II, Environmental Resource Bureau eEnclosures: Location Map (191018-2082 Exhibitl 0 LocMap 20191024.pdf) Notice of Rights (Notice of Rights) 3301 Gun Club Road,West Palm Beach,Florida 33406•(561)686-8800•1-800-432-2045•wwwsfwmdgov Agenda Page 71 b11A2 Heritage Bay Golf&Country Club-Clubhouse Exp. Ph.2 Page 2 c: Michael Herrera, P.E., Q. Grady Minor & Associates, P.A. (E-Mail) This document is filed in the ePermitting system under Permit Number 11-101685-P via the Application/Permit Section on the Records Search home page 161 1A2 A cy-gobii 2216 Altamont Avenue Fort Myers,Florida 33901 January 29th, 2021 Phone:239.332.5499 Fax:239.332.2955 zaurza.cphCorp.coirl Inframark Heritage Bay Community Development District Collier County, Florida Re: Heritage Bay CDD Lake 30A Southern Bank Existing Elevations Survey Proposal Mr. Faircloth: CPH, Inc. is pleased to provide this proposal to perform Lake 30A Southern Bank Existing Elevations Survey at the Heritage Bay Community Development District. Topographic Survey: Perform a Topographic Survey of a portion of Lake 30A(2,395±feet) as per Rule Chapter 5J-17 of the Florida Administrative Code in compliance with the Standards of Practice of Surveying and Mapping of the State of Florida(see area depicted in red on the attached "Survey Site Exhibit"). • Collect topographic elevations along the southern berm of Lake 30A every 150' for 2,395± feet at the top of berm and top of water as delineated on the provided site plan. • Topographic data will be provided on coordinate correct aerial. • Signed and sealed Topographic Survey. Note: A$1,080.00 mobilization fee will be required for each additional site visit. State Plane: The project coordinate system will be based horizontally on the North American Datum 83(2011)(NAD 83(2011)). The project will be referenced to state plane coordinates by field locating published control points. The National Geodetic Survey control points will be researched and verified in the field. This base of reference will be used to establish the coordinate system for the project. Benchmarks and Control: The project will be based on the National American Vertical Datum of 1988 (NAVD 88). The project will be referenced to these published elevations by field locating published benchmarks. Topographic Survey Fee: $3,990.00 - I - 6 I i A 2 Agenda Page 10 SURVEY SITE EXHIBIT gat • • • et t ` 0xs CPH shall be reimbursed directly for project specific expenditures such as, but not limited to, travel, printing and reprographics, meals, hotel stays, rental cars, postage, and telephone usage. Reimbursable expenses will be billed at their actual cost, without increase. It is understood that you may terminate this contract with written notice to CPH, Inc., and CPH will bill only for services rendered up to the date written termination of the contract, in conformance with the general agreement. Thank you again for this opportunity. Please do not hesitate to contact us if you have any questions or require additional information. The above fees, terms, conditions, and specifications are satisfactory and are hereby accepted. CPH is authorized to do the work as specified and payment will be made as outlined above. By signing this agreement, I acknowledge that I have the legal authority to enter into this agreement and agree to be bound by the terms contained herein. If you are in agreement with the above Scope of Services and fees, please sign and return one (1) copy of this letter to our office for our records, and as our Notice to Proceed. - 2 - 1 6 1 1 A 2 Agenda Page 11 CPH, INC. HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT Albert Lopez Inframark Office Manager Date Date - 3 - 16I 1A2 Agenda Page 14 E-Verif y Company ID Number: THE E-VERIFY MEMORANDUM OF UNDERSTANDING FOR EMPLOYERS ARTICLE I PURPOSE AND AUTHORITY The parties to this agreement are the Department of Homeland Security (OHS) and the (Employer). The purpose of this agreement is to set forth terms and conditions which the Employer will follow while participating in E-Verify. E-Verify is a program that electronically confirms an employee's eligibility to work in the United States after completion of Form 1-9, Employment Eligibility Verification (Form 1- 9). This Memorandum of Understanding (MOU) explains certain features of the E-Verify program and describes specific responsibilities of the Employer, the Social Security Administration (SSA), and DHS. Authority for the E-Verify program is found in Title IV, Subtitle A, of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA), Pub. L. 104-208, 110 Stat. 3009, as amended (8 U.S.C. § 1324a note). The Federal Acquisition Regulation (FAR) Subpart 22.18, "Employment Eligibility Verification" and Executive Order 12989, as amended, provide authority for Federal contractors and subcontractors (Federal contractor) to use E-Verify to verify the employment eligibility of certain employees working on Federal contracts. ARTICLE II RESPONSIBILITIES A. RESPONSIBILITIES OF THE EMPLOYER 1. The Employer agrees to display the following notices supplied by DHS in a prominent place that is clearly visible to prospective employees and all employees who are to be verified through the system: a. Notice of E-Verify Participation b. Notice of Right to Work 2. The Employer agrees to provide to the SSA and DHS the names, titles, addresses, and telephone numbers of the Employer representatives to be contacted about E-Verify. The Employer also agrees to keep such information current by providing updated information to SSA and DHS whenever the representatives' contact information changes. 3. The Employer agrees to grant E-Verify access only to current employees who need E- Verify access. Employers must promptly terminate an employee's E-Verify access if the Page 1 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 AgelaP e1 1 A 2 employee is separated from the company or no longer needs access to E-Verify. 4. The Employer agrees to become familiar with and comply with the most recent version of the E-Verify User Manual. 5. The Employer agrees that any Employer Representative who will create E-Verify cases will complete the E-Verify Tutorial before that individual creates any cases. a. The Employer agrees that all Employer representatives will take the refresher tutorials when prompted by E-Verify in order to continue using E-Verify. Failure to complete a refresher tutorial will prevent the Employer Representative from continued use of E-Verify. 6. The Employer agrees to comply with current Form 1-9 procedures, with two exceptions: a. If an employee presents a "List B" identity document, the Employer agrees to only accept "List B" documents that contain a photo. (List B documents identified in 8 C.F.R. § 274a.2(b)(1)(B)) can be presented during the Form 1-9 process to establish identity.) If an employee objects to the photo requirement for religious reasons, the Employer should contact E-Verify at 888-464-4218. b. If an employee presents a DHS Form 1-551 (Permanent Resident Card), Form 1-766 (Employment Authorization Document), or U.S. Passport or Passport Card to complete Form 1-9, the Employer agrees to make a photocopy of the document and to retain the photocopy with the employee's Form 1-9. The Employer will use the photocopy to verify the photo and to assist DHS with its review of photo mismatches that employees contest. DHS may in the future designate other documents that activate the photo screening tool. Note: Subject only to the exceptions noted previously in this paragraph, employees still retain the right to present any List A, or List B and List C, document(s) to complete the Form 1-9. 7. The Employer agrees to record the case verification number on the employee's Form 1-9 or to print the screen containing the case verification number and attach it to the employee's Form 1-9. 8. The Employer agrees that, although it participates in E-Verify, the Employer has a responsibility to complete, retain, and make available for inspection Forms 1-9 that relate to its employees, or from other requirements of applicable regulations or laws, including the obligation to comply with the antidiscrimination requirements of section 274B of the INA with respect to Form 1-9 procedures. a. The following modified requirements are the only exceptions to an Employer's obligation to not employ unauthorized workers and comply with the anti- discrimination provision of the INA: (1) List B identity documents must have photos, as described in paragraph 6 above; (2)When an Employer confirms the identity and employment eligibility of newly hired employee using E-Verify procedures, the Employer establishes a rebuttable presumption that it has not violated section 274A(a)(1)(A) of the Immigration and Nationality Act (INA) with respect to the hiring of that employee; (3) If the Employer receives a final nonconfirmation for an employee, but continues to employ that person, the Employer must notify DHS and the Employer is subject to a civil money penalty between $550 and $1,100 for each failure to notify OHS of continued employment Page 2 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1 6 I 1 A 2 Agenda Page 16 following a final nonconfirmation; (4) If the Employer continues to employ an employee after receiving a final nonconfirmation, then the Employer is subject to a rebuttable presumption that it has knowingly employed an unauthorized alien in violation of section 274A(a)(1)(A); and (5) no E-Verify participant is civilly or criminally liable under any law for any action taken in good faith based on information provided through the E-Verify. b. DHS reserves the right to conduct Form 1-9 compliance inspections, as well as any other enforcement or compliance activity authorized by law, including site visits, to ensure proper use of E-Verify. 9. The Employer is strictly prohibited from creating an E-Verify case before the employee has been hired, meaning that a firm offer of employment was extended and accepted and Form 1-9 was completed. The Employer agrees to create an E-Verify case for new employees within three Employer business days after each employee has been hired (after both Sections 1 and 2 of Form 1-9 have been completed), and to complete as many steps of the E-Verify process as are necessary according to the E-Verify User Manual. If E-Verify is temporarily unavailable, the three-day time period will be extended until it is again operational in order to accommodate the Employer's attempting, in good faith, to make inquiries during the period of unavailability. 10.The Employer agrees not to use E-Verify for pre-employment screening of job applicants, in support of any unlawful employment practice, or for any other use that this MOU or the E-Verify User Manual does not authorize. 11.The Employer must use E-Verify for all new employees. The Employer will not verify selectively and will not verify employees hired before the effective date of this MOU. Employers who are Federal contractors may qualify for exceptions to this requirement as described in Article 11.6 of this MOU. 12.The Employer agrees to follow appropriate procedures (see Article III below) regarding tentative nonconfirmations. The Employer must promptly notify employees in private of the finding and provide them with the notice and letter containing information specific to the employee's E-Verify case. The Employer agrees to provide both the English and the translated notice and letter for employees with limited English proficiency to employees. The Employer agrees to provide written referral instructions to employees and instruct affected employees to bring the English copy of the letter to the SSA. The Employer must allow employees to contest the finding, and not take adverse action against employees if they choose to contest the finding, while their case is still pending. Further, when employees contest a tentative nonconfirmation based upon a photo mismatch, the Employer must take additional steps (see Article 111.8. below) to contact DHS with information necessary to resolve the challenge. 13.The Employer agrees not to take any adverse action against an employee based upon the employee's perceived employment eligibility status while SSA or DHS is processing the verification request unless the Employer obtains knowledge (as defined in 8 C.F.R. § 274a.1(I)) that the employee is not work authorized. The Employer understands that an initial inability of the SSA or DHS automated verification system to verify work authorization, a tentative nonconfirmation, a case in continuance (indicating the need for additional time for the government to resolve a case), or the finding of a photo mismatch, does not establish, and should not be interpreted as, evidence that the employee is not work authorized. In any of such cases, the employee must be provided a full and fair opportunity to contest the finding, and if he or she does so, the employee Page 3 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1611A2 Agenda Page 17 may not be terminated or suffer any adverse employment consequences based upon the employee's perceived employment eligibility status (including denying, reducing, or extending work hours, delaying or preventing training, requiring an employee to work in poorer conditions, withholding pay, refusing to assign the employee to a Federal contract or other assignment, or otherwise assuming that he or she is unauthorized to work) until and unless secondary verification by SSA or DHS has been completed and a final nonconfirmation has been issued. If the employee does not choose to contest a tentative nonconfirmation or a photo mismatch or if a secondary verification is completed and a final nonconfirmation is issued, then the Employer can find the employee is not work authorized and terminate the employee's employment. Employers or employees with questions about a final nonconfirmation may call E-Verify at 1-888-464-4218 (customer service) or 1-888-897-7781 (worker hotline). 14.The Employer agrees to comply with Title VII of the Civil Rights Act of 1964 and section 274B of the INA as applicable by not discriminating unlawfully against any individual in hiring, firing, employment eligibility verification, or recruitment or referral practices because of his or her national origin or citizenship status, or by committing discriminatory documentary practices. The Employer understands that such illegal practices can include selective verification or use of E-Verify except as provided in part D below, or discharging or refusing to hire employees because they appear or sound "foreign" or have received tentative nonconfirmations. The Employer further understands that any violation of the immigration-related unfair employment practices provisions in section 274B of the INA could subject the Employer to civil penalties, back pay awards, and other sanctions, and violations of Title VII could subject the Employer to back pay awards, compensatory and punitive damages. Violations of either section 274B of the INA or Title VII may also lead to the termination of its participation in E-Verify. If the Employer has any questions relating to the anti-discrimination provision, it should contact the Immigrant and Employee Rights Section, Civil Rights Division, U.S. Department of Justice at 1-800-255-8155 or 1-800-237-2515 (TTY)or go to https://www.justice.gov/ier. 15.The Employer agrees that it will use the information it receives from E-Verify only to confirm the employment eligibility of employees as authorized by this MOU. The Employer agrees that it will safeguard this information, and means of access to it (such as PINS and passwords), to ensure that it is not used for any other purpose and as necessary to protect its confidentiality, including ensuring that it is not disseminated to any person other than employees of the Employer who are authorized to perform the Employers responsibilities under this MOU, except for such dissemination as may be authorized in advance by SSA or DHS for legitimate purposes. 16.The Employer agrees to notify DHS immediately in the event of a breach of personal information. Breaches are defined as loss of control or unauthorized access to E-Verify personal data. All suspected or confirmed breaches should be reported by calling 1-888- 464-4218 or via email at E-Verifydhs.ciov. Please use "Privacy Incident—Password" in the subject line of your email when sending a breach report to E-Verify. 17.The Employer acknowledges that the information it receives from SSA is governed by the Privacy Act (5 U.S.C. § 552a(1)(1 ) and (3)) and the Social Security Act (42 U.S.C. 1306(a)). Any person who obtains this information under false pretenses or uses it for any purpose other than as provided for in this MOU may be subject to criminal penalties. 18.The Employer agrees to cooperate with DHS and SSA in their compliance monitoring and evaluation of E-Verify, which includes permitting OHS, SSA, their contractors and Page 4 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1 6 I 1A2 Agenda Page 18 other agents, upon reasonable notice, to review Forms 1-9 and other employment records and to interview it and its employees regarding the Employer's use of E- Verify, and to respond in a prompt and accurate manner to OHS requests for information relating to their participation in E-Verify. 19. The Employer shall not make any false or unauthorized claims or references about its participation in E-Verify on its website, in advertising materials, or other media. The Employer shall not describe its services as federally-approved, federally- certified, or federally-recognized, or use language with a similar intent on its website or other materials provided to the public. Entering into this MOU does not mean that E- Verify endorses or authorizes your E-Verify services and any claim to that effect is false. 20. The Employer shall not state in its website or other public documents that any language used therein has been provided or approved by OHS, USCIS or the Verification Division, without first obtaining the prior written consent of DHS. 21. The Employer agrees that E-Verify trademarks and logos may be used only under license by DHS/USCIS (see M-795 (Web)) and, other than pursuant to the specific terms of such license, may not be used in any manner that might imply that the Employer's services, products, websites, or publications are sponsored by, endorsed by, licensed by, or affiliated with DHS, USCIS, or E-Verify. 22. The Employer understands that if it uses E-Verify procedures for any purpose other than as authorized by this MOU, the Employer may be subject to appropriate legal action and termination of its participation in E-Verify according to this MOU. B. RESPONSIBILITIES OF FEDERAL CONTRACTORS 1. If the Employer is a Federal contractor with the FAR E-Verify clause subject to the employment verification terms in Subpart 22.18 of the FAR, it will become familiar with and comply with the most current version of the E-Verify User Manual for Federal Contractors as well as the E-Verify Supplemental Guide for Federal Contractors. 2. In addition to the responsibilities of every employer outlined in this MOU, the Employer understands that if it is a Federal contractor subject to the employment verification terms in Subpart 22.18 of the FAR it must verify the employment eligibility of any "employee assigned to the contract" (as defined in FAR 22.1801). Once an employee has been verified through E-Verify by the Employer, the Employer may not create a second case for the employee through E-Verify. a.An Employer that is not enrolled in E-Verify as a Federal contractor at the time of a contract award must enroll as a Federal contractor in the E-Verify program within 30 calendar days of contract award and, within 90 days of enrollment, begin to verify employment eligibility of new hires using E-Verify. The Employer must verify those employees who are working in the United States, whether or not they are assigned to the contract. Once the Employer begins verifying new hires, such verification of new hires must be initiated within three business days after the hire date. Once enrolled in E-Verify as a Federal contractor, the Employer must begin verification of employees assigned to the contract within 90 calendar days after the date of enrollment or within 30 days of an employee's assignment to the contract, whichever date is later. b.Employers enrolled in E-Verify as a Federal contractor for 90 days or more at the time of a contract award must use E-Verify to begin verification of employment Page 5 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 161 1A2 Agenda Page 19 eligibility for new hires of the Employer who are working in the United States, whether or not assigned to the contract, within three business days after the date of hire. If the Employer is enrolled in E-Verify as a Federal contractor for 90 calendar days or less at the time of contract award, the Employer must, within 90 days of enrollment, begin to use E-Verify to initiate verification of new hires of the contractor who are working in the United States, whether or not assigned to the contract. Such verification of new hires must be initiated within three business days after the date of hire. An Employer enrolled as a Federal contractor in E- Verify must begin verification of each employee assigned to the contract within 90 calendar days after date of contract award or within 30 days after assignment to the contract, whichever is later. c. Federal contractors that are institutions of higher education (as defined at 20 U.S.C. 1001(a)), state or local governments, governments of Federally recognized Indian tribes, or sureties performing under a takeover agreement entered into with a Federal agency under a performance bond may choose to only verify new and existing employees assigned to the Federal contract. Such Federal contractors may, however, elect to verify all new hires, and/or all existing employees hired after November 6, 1986. Employers in this category must begin verification of employees assigned to the contract within 90 calendar days after the date of enrollment or within 30 days of an employee's assignment to the contract, whichever date is later. d. Upon enrollment, Employers who are Federal contractors may elect to verify employment eligibility of all existing employees working in the United States who were hired after November 6, 1986, instead of verifying only those employees assigned to a covered Federal contract. After enrollment, Employers must elect to verify existing staff following DHS procedures and begin E-Verify verification of all existing employees within 180 days after the election. e. The Employer may use a previously completed Form 1-9 as the basis for creating an E-Verify case for an employee assigned to a contract as long as: i. That Form 1-9 is complete (including the SSN) and complies with Article II.A.6, H. The employee's work authorization has not expired, and iii. The Employer has reviewed the Form 1-9 information either in person or in communications with the employee to ensure that the employee's Section 1, Form 1-9 attestation has not changed (including, but not limited to, a lawful permanent resident alien having become a naturalized U.S. citizen). f. The Employer shall complete a new Form 1-9 consistent with Article H.A.6 or update the previous Form 1-9 to provide the necessary information if: i. The Employer cannot determine that Form 1-9 complies with Article II.A.6, H. The employee's basis for work authorization as attested in Section 1 has expired or changed, or Hi. The Form 1-9 contains no SSN or is otherwise incomplete. Note: If Section 1 of Form 1-9 is otherwise valid and up-to-date and the form otherwise complies with Article 11.C.5, but reflects documentation (such as a U.S. passport or Form 1-551)that expired after completing Form 1-9, the Employer shall Page 6 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1 6 I 1 A 2 Agenda Page 20 not require the production of additional documentation, or use the photo screening tool described in Article II.A.5, subject to any additional or superseding instructions that may be provided on this subject in the E-Verify User Manual. g. The Employer agrees not to require a second verification using E-Verify of any assigned employee who has previously been verified as a newly hired employee under this MOU or to authorize verification of any existing employee by any Employer that is not a Federal contractor based on this Article. 3. The Employer understands that if it is a Federal contractor, its compliance with this MOU is a performance requirement under the terms of the Federal contract or subcontract, and the Employer consents to the release of information relating to compliance with its verification responsibilities under this MOU to contracting officers or other officials authorized to review the Employer's compliance with Federal contracting requirements. C. RESPONSIBILITIES OF SSA 1.SSA agrees to allow DHS to compare data provided by the Employer against SSA's database. SSA sends DHS confirmation that the data sent either matches or does not match the information in SSA's database. 2.SSA agrees to safeguard the information the Employer provides through E-Verify procedures. SSA also agrees to limit access to such information, as is appropriate by law, to individuals responsible for the verification of Social Security numbers or responsible for evaluation of E-Verify or such other persons or entities who may be authorized by SSA as governed by the Privacy Act (5 U.S.C. § 552a), the Social Security Act (42 U.S.C. 1306(a)), and SSA regulations (20 CFR Part 401). 3.SSA agrees to provide case results from its database within three Federal Government work days of the initial inquiry. E-Verify provides the information to the Employer. 4.SSA agrees to update SSA records as necessary if the employee who contests the SSA tentative nonconfirmation visits an SSA field office and provides the required evidence. If the employee visits an SSA field office within the eight Federal Government work days from the date of referral to SSA, SSA agrees to update SSA records, if appropriate, within the eight-day period unless SSA determines that more than eight days may be necessary. In such cases, SSA will provide additional instructions to the employee. If the employee does not visit SSA in the time allowed, E-Verify may provide a final nonconfirmation to the employer. Note: If an Employer experiences technical problems, or has a policy question, the employer should contact E-Verify at 1-888-464-4218. D. RESPONSIBILITIES OF DHS 1. DHS agrees to provide the Employer with selected data from DHS databases to enable the Employer to conduct, to the extent authorized by this MOU: a.Automated verification checks on alien employees by electronic means, and b.Photo verification checks (when available) on employees. Page 7 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1 6 I 1 A 2 Agenda Page 21 2.DHS agrees to assist the Employer with operational problems associated with the Employer's participation in E-Verify. DHS agrees to provide the Employer names, titles, addresses, and telephone numbers of DHS representatives to be contacted during the E-Verify process. 3.DHS agrees to provide to the Employer with access to E-Verify training materials as well as an E-Verify User Manual that contain instructions on E-Verify policies, procedures, and requirements for both SSA and DHS, including restrictions on the use of E-Verify. 4.DHS agrees to train Employers on all important changes made to E-Verify through the use of mandatory refresher tutorials and updates to the E-Verify User Manual. Even without changes to E-Verify, DHS reserves the right to require employers to take mandatory refresher tutorials. 5.DHS agrees to provide to the Employer a notice, which indicates the Employer's participation in E-Verify. DHS also agrees to provide to the Employer anti-discrimination notices issued by the Immigrant and Employee Rights Section, Civil Rights Division, U.S. Department of Justice. 6.OHS agrees to issue each of the Employer's E-Verify users a unique user identification number and password that permits them to log in to E-Verify. 7.OHS agrees to safeguard the information the Employer provides, and to limit access to such information to individuals responsible for the verification process, for evaluation of E-Verify, or to such other persons or entities as may be authorized by applicable law. Information will be used only to verify the accuracy of Social Security numbers and employment eligibility, to enforce the INA and Federal criminal laws, and to administer Federal contracting requirements. 8.DHS agrees to provide a means of automated verification that provides (in conjunction with SSA verification procedures) confirmation or tentative nonconfirmation of employees' employment eligibility within three Federal Government work days of the initial inquiry. 9.DHS agrees to provide a means of secondary verification (including updating DHS records)for employees who contest DHS tentative nonconfirmations and photo mismatch tentative nonconfirmations. This provides final confirmation or nonconfirmation of the employees' employment eligibility within 10 Federal Government work days of the date of referral to DHS, unless OHS determines that more than 10 days may be necessary. In such cases, OHS will provide additional verification instructions. ARTICLE III REFERRAL OF INDIVIDUALS TO SSA AND DHS A. REFERRAL TO SSA 1. If the Employer receives a tentative nonconfirmation issued by SSA, the Employer must print the notice as directed by E-Verify. The Employer must promptly notify employees in private of the finding and provide them with the notice and letter containing information specific to the employee's E-Verify case. The Employer also agrees to provide both the English and the translated notice and letter for employees with limited English proficiency to employees. The Employer agrees to provide written referral instructions to employees and instruct affected employees to bring the English copy of Page 8 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 161 1A2 Agenda Page 22 the letter to the SSA. The Employer must allow employees to contest the finding, and not take adverse action against employees if they choose to contest the finding, while their case is still pending. 2. The Employer agrees to obtain the employee's response about whether he or she will contest the tentative nonconfirmation as soon as possible after the Employer receives the tentative nonconfirmation. Only the employee may determine whether he or she will contest the tentative nonconfirmation. 3. After a tentative nonconfirmation, the Employer will refer employees to SSA field offices only as directed by E-Verify. The Employer must record the case verification number, review the employee information submitted to E-Verify to identify any errors, and find out whether the employee contests the tentative nonconfirmation. The Employer will transmit the Social Security number, or any other corrected employee information that SSA requests, to SSA for verification again if this review indicates a need to do so. 4. The Employer will instruct the employee to visit an SSA office within eight Federal Government work days. SSA will electronically transmit the result of the referral to the Employer within 10 Federal Government work days of the referral unless it determines that more than 10 days is necessary. 5. While waiting for case results, the Employer agrees to check the E-Verify system regularly for case updates. 6. The Employer agrees not to ask the employee to obtain a printout from the Social Security Administration number database (the Numident) or other written verification of the SSN from the SSA. B. REFERRAL TO OHS 1. If the Employer receives a tentative nonconfirmation issued by OHS, the Employer must promptly notify employees in private of the finding and provide them with the notice and letter containing information specific to the employee's E-Verify case. The Employer also agrees to provide both the English and the translated notice and letter for employees with limited English proficiency to employees. The Employer must allow employees to contest the finding, and not take adverse action against employees if they choose to contest the finding, while their case is still pending. 2. The Employer agrees to obtain the employee's response about whether he or she will contest the tentative nonconfirmation as soon as possible after the Employer receives the tentative nonconfirmation. Only the employee may determine whether he or she will contest the tentative nonconfirmation. 3. The Employer agrees to refer individuals to DHS only when the employee chooses to contest a tentative nonconfirmation. 4. If the employee contests a tentative nonconfirmation issued by DHS, the Employer will instruct the employee to contact DHS through its toll-free hotline (as found on the referral letter) within eight Federal Government work days. 5. If the Employer finds a photo mismatch, the Employer must provide the photo mismatch tentative nonconfirmation notice and follow the instructions outlined in paragraph 1 of this section for tentative nonconfirmations, generally. 6. The Employer agrees that if an employee contests a tentative nonconfirmation based upon a photo mismatch, the Employer will send a copy of the employee's Form 1-551, Form 1-766, U.S. Passport, or passport card to DHS for review by: Page 9 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1 6 I 1 A 2 Agenda Page 23 a.Scanning and uploading the document, or b.Sending a photocopy of the document by express mail (furnished and paid for by the employer). 7.The Employer understands that if it cannot determine whether there is a photo match/mismatch, the Employer must forward the employee's documentation to DHS as described in the preceding paragraph. The Employer agrees to resolve the case as specified by the OHS representative who will determine the photo match or mismatch. 8.DHS will electronically transmit the result of the referral to the Employer within 10 Federal Government work days of the referral unless it determines that more than 10 days is necessary. 9.While waiting for case results, the Employer agrees to check the E-Verify system regularly for case updates. ARTICLE IV SERVICE PROVISIONS A. NO SERVICE FEES 1. SSA and DHS will not charge the Employer for verification services performed under this MOU. The Employer is responsible for providing equipment needed to make inquiries. To access E-Verify, an Employer will need a personal computer with Internet access. ARTICLE V MODIFICATION AND TERMINATION A. MODIFICATION 1.This MOU is effective upon the signature of all parties and shall continue in effect for as long as the SSA and OHS operates the E-Verify program unless modified in writing by the mutual consent of all parties. 2.Any and all E-Verify system enhancements by DHS or SSA, including but not limited to E-Verify checking against additional data sources and instituting new verification policies or procedures, will be covered under this MOU and will not cause the need for a supplemental MOU that outlines these changes. B. TERMINATION 1.The Employer may terminate this MOU and its participation in E-Verify at any time upon 30 days prior written notice to the other parties. 2.Notwithstanding Article V, part A of this MOU, OHS may terminate this MOU, and thereby the Employer's participation in E-Verify, with or without notice at any time if deemed necessary because of the requirements of law or policy, or upon a determination by SSA or OHS that there has been a breach of system integrity or security by the Employer, or a failure on the part of the Employer to comply with established E-Verify procedures and/or legal requirements. The Employer understands that if it is a Federal contractor, termination of this MOU by any party for any reason may negatively affect the Page 10 of 13 E-Verify MOU for Web Services Employers Revision Date 06/01/13 Agenda Page 24 I 1 A 2 performance of its contractual responsibilities. Similarly, the Employer understands that if it is in a state where E-Verify is mandatory, termination of this by any party MOU may negatively affect the Employer's business. 3. An Employer that is a Federal contractor may terminate this MOU when the Federal contract that requires its participation in E-Verify is terminated or completed. In such cases, the Federal contractor must provide written notice to DHS. If an Employer that is a Federal contractor fails to provide such notice, then that Employer will remain an E-Verify participant, will remain bound by the terms of this MOU that apply to non-Federal contractor participants, and will be required to use the E-Verify procedures to verify the employment eligibility of all newly hired employees. 4. The Employer agrees that E-Verify is not liable for any losses, financial or otherwise, if the Employer is terminated from E-Verify. ARTICLE VI PARTIES A. Some or all SSA and DHS responsibilities under this MOU may be performed by contractor(s), and SSA and DHS may adjust verification responsibilities between each other as necessary. By separate agreement with OHS, SSA has agreed to perform its responsibilities as described in this MOU. B. Nothing in this MOU is intended, or should be construed, to create any right or benefit, substantive or procedural, enforceable at law by any third party against the United States, its agencies, officers, or employees, or against the Employer, its agents, officers, or employees. C. The Employer may not assign, directly or indirectly, whether by operation of law, change of control or merger, all or any pad of its rights or obligations under this MOU without the prior written consent of DHS, which consent shall not be unreasonably withheld or delayed. Any attempt to sublicense, assign, or transfer any of the rights, duties, or obligations herein is void. D. Each party shall be solely responsible for defending any claim or action against it arising out of or related to E-Verify or this MOU, whether civil or criminal, and for any liability wherefrom, including (but not limited to) any dispute between the Employer and any other person or entity regarding the applicability of Section 403(d) of IIRIRA to any action taken or allegedly taken by the Employer. E. The Employer understands that its participation in E-Verify is not confidential information and may be disclosed as authorized or required by law and DHS or SSA policy, including but not limited to, Congressional oversight, E-Verify publicity and media inquiries, determinations of compliance with Federal contractual requirements, and responses to inquiries under the Freedom of Information Act (FOIA). F.The individuals whose signatures appear below represent that they are authorized to enter into this MOU on behalf of the Employer and OHS respectively. The Employer understands that any inaccurate statement, representation, data or other information provided to DHS may subject the Employer, its subcontractors, its employees, or its representatives to: (1) prosecution for false statements pursuant to 18 U.S.C. 1001 and/or; (2) immediate termination of its MOU and/or; (3) possible debarment or suspension. G. The foregoing constitutes the full agreement on this subject between OHS and the Page 11 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 161 1A2 Agenda Page 25 Employer. To be accepted as an E-Verify participant, you should only sign the Employer's Section of the signature page. If you have any questions, contact E-Verify at 1- 888464-4218. Approved by: E-Verify Employer Name (Please Type or Print) Title Signature Date Department of Homeland Security—Verification Division Name (Please Type or Print) Title Signature Date Information Required for E-Verify Information relating to your Company: Company Name: Company Facility Address: Company Alternate Address: County or Parish: Page 12 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1 6 I 1A2 Agenda Page 26 Employer Identification Number: North American Industry Classification Systems Code: Parent Company: Number of Employees: Number of Sites Verified for: Are you verifying for more than one site? If yes, please provide the number of sites verified for in each State: State Number of Site(s) sites Information relating to the Program Administrator(s) for your Company on policy questions or operational problems: Telephone Number: • Fax Number: t-mail Address: I -- Name: Telephone Number: Fax Number: E-mail Address: — Page 13 of 13 E-Verify MOU for Web Services Employers I Revision Date 06/01/13 1 6I 1 A2 Agenda Page 28 4/ Lake &Wetland MANAGEMENT HERITAGE BAY CDD LAKES INSPECTION REPORT January 25th, 2021 Mr. Justin Faircloth Heritage Bay Community Development District c/o Inframark Management Services Justin.faircloth@inframark.com 5911 Country Lakes Drive (239) 245-7118 Office Fort Myers, Florida 33905 (239) 245-7120 Fax Below are my observations noted on Monday, January 25th: Lake 1 - Minimal algae along littorals. Lake 2 - No issues. Lake 3 - Spatterdock completely gone now. Lake 4 - Minimal algae along littorals, some submerged spotted, tech is aware of it. Lake 5 - No issues, littorals growing. it 44, jAt Lake 6 - No issues. Lake 7 - Minimal algae along littorals. Lake 8 - Minimal dead vegetation at littoral zone. 161 1A2 Agenda Page 29 Lake 9 - Algae along littorals. A",. .,1 p� i .g,y"ice)0+ mlla 'r a ,. t w f k f r t .# SP tip' t ,* • t7' ; .may �.. I t ti . t, ,%..(( Ai, ', +ii r" i, q , „00.. . ...4 ,- v*,,' „,t, -.4,7.1 ,,,j - '. * 1' ct,'"3,4' A '101* ' .1,f44...t4W I , r r 0- f °f � .:P.,,6 n e Xr ,K As, x`outei :4„. ° ,..„1 .,,t.„1, i• . "4"° n...7:71;:e;,1 , .. it 4,4 ji'`Ii.9.k.t.i it.''4, Lake 10 - Erosion, algae, dead vegetation. Lake 11 - Minimal algae along littorals. Lake 12 - No issues. Lake 13 - No issues. Lake 14 - Lake looks great, no issues. Lake 15 - Some dead vegetation around spike rush. 1 6 I 1 A 2 Agenda Page 30 Lake 16 - Algae at littoral zone, decent amount of trash noted. •t t � � ;r•- P,r •. (SPA . Lake 17 - No issues. Lake 18 - No issues. Lake 19 - Lake looks better, pondweed under control. Lake 20 - South side, pondweed noted, tech recently treated, will die off soon. North side, no issues. 14, 4 1 1}i1 df5. y� J- e'e C A A 1A2 Agenda Page 31 Lake 21 - No issues. Lake 22 - No issues. Lake 23 - No issues. Lake 24 - No issues. New plants doing great. Lake 25 - No issues. Lake 26 - Minimal algae along littorals. w M xi Lake 27 - Spatterdock clearly dead, will sink soon. -;4 r' .40 .. '' s, • .net✓ 7�t it -' '•��..�+� 4`'�y, n, y ; t 4�,'_ lyYj.,{A11`.Y •Y 4 (4f, : 'nt Agenda ige 02 I Lake 28 - No issues. Lake 29 - No issues. Lake 30A/ 30B - Lakes look very clear, no pondweed noted at the boat launch and no pondweed noted under the bridge. The recent treatment and the cold weather is inhibiting the growth of pondweed in this lake. Palm on 30B will be cut next ground crew visit. Conclusions: The lakes look great, the minimal algae noted is not an issue. Pondweed on lake 30A and 30B seems to be under control for now, we'll keep an eye on it. 1 6 I 1 A 2 Agenda Page 33 Lake Management-Wetland&Preserve Maintenance *Lake &Wet 1 a n d Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Planting i4,44,,,......Liweillallrilloto MANAGEMENT Water Testing&Analysis-Fountains&Aerators SERVICE &INSPECTION REPORT 2 Customer:__ �'_ ----.____Account#: 1525 Date: /2 L'23/Zd Technician: M 9 ILL_ ! yelf Territory: Nt.p1 es Weather Conditions: 5,J�1� (LAKE MANAGEMENT ❑ ALGAE CONTROL Lake(s) #: ❑ GRASSES&EMERGENTS Lake(s)#:_ (H'�UBMERSED AQUATICS Lake(s) #: 30 13 , 0 ---- ❑ FLOATING PLANTS Lake(s)#: ❑ INSPECTION Lake(s) #: ____-- ❑ DEBRIS Lake(s) #: . ----- Water Test Results(Combined Average) Temperature °F ❑HIGH 0 AVERAGE 0 LOW Dissolved Oxygen ppm 0 HIGH 0 AVERAGE 0 LOW pH reading ❑ACID 0 NEUTRAL 0 BASE Water Clarity 0 GOOD 0 FAIR 0 POOR Water Level 0 HIGH 0 AVERAGE 0 LOW 0 LITTORAL SHELF SHELVES#: __.____.. ❑ SHORELINE GRASSES&EMERGENTS 0 HERBICIDE TREATMENT 0 DEBRIS REMOVAL ❑ FLOATING PLANTS 0 MANUAL REMOVAL ❑ INVASIVE/EXOTIC SPECIES 0 INSPECTION 0 UPLAND/WETLAND PRESERVE PRESERVE(S)#: ❑INVASIVE/EXOTIC SPECIES 0 HERBICIDE TREATMENT 0 DEBRIS REMOVAL ❑GRASSES 0 MANUAL REMOVAL ❑VINES ❑INSPECTION 0 MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#: . ❑INSECTICIDE TREATMENT 0 INSPECTION Comments: tOtKcS rrCAft J Ge rondwet l , Ree'ASe I-1)6 Li - _-_15 do,./5 r Best ee.,5 v 14 s, FISH&WILDLIFE OBSERVATIONS FISH: O ass OBream O Catfish °Gjass carp ‘pia O Mosquitofish O Shad BIRDS: �j ptor °Duck 0 Wood Stork DShorebird 0 Wading bird 0 Songbird 0 Viikure REPTILES: W.Alligator OSnake 0 Turtle 0 Tortoise 0 Lizard 0 AMPHIBIANS ICVMSECTS INVASIVE/EXOTIC PLANTS NOTED °Brazilian pepper 0 Melaleuca OPennywort OBischofia 0 Earleaf Acacia °Australian pine°Shoebutton °Sedge °Climbing Fern °Air potato OTorpedograss OAzolla OSalvinia °Downy rose myrtle°Java plum °Floating Hearts °Lantana OHydrilla OHygrophilia OWater Lettuce °Water hyacinth°Cattail °Primrose 0Alligatorweed NATIVE PLANTS NOTED OCypress O Wax Myrtle OFL Pine °Red Maple 0 Waterlily °Mangrove °Pond Apple °Oak OCocoplum O Irush OBIue flag iris OStrangler fig °Arrowhead OPickerelweed °Thalia 0 Palms °Golden Canna ikerush OButtonbush 0 Eelgrass 0 Cordgrass OFakahatcheegrassOSpatterdock 0 Ferns °Baby tears 0 Naiad OChara °Duckweed 0 Bladderwort ®>rondweed 0 Slender spikerushO Bacopa Other species noted/comments: www.lakeandwetland.com Rev07/23114 Form4398D Agenda PAe 3§ I i - " 2 Lake Management-Wetland&Preserve Maintenance *Lake &Wetland Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Planting MANAGEMENT Water Testing&Analysis-Fountains&Aerators `�, SERVICE& INSPECTION REPORT Customer:4__/ %,171_,E_ 8 _..__. Account#: /f 21 Date: 63/4/5l/Z/ Technician: !--PA rti; Territory: 4/ ►c.s—,l Weather Conditions: vAy ^. (LAKE MANAGEMENT ❑ ALGAE CONTROL Lake(s)#: ❑ :RASSES&EMERGENTS Lake(s)#: r4„SUBMERSED AQUATICS Lake(s)#: 2O/ Z;., /°1 FLOATING PLANTS Lake(s)#: 2 ? INSPECTION Lake(s)#: 41zL Gso-i+ (71 ❑ DEBRIS Lake(s)#: Water Test Results(Combined Average) Temperature °F ❑HIGH 0 AVERAGE 0 LOW Dissolved Oxygen ppm 0 HIGH 0 AVERAGE 0 LOW pH reading 0 ACID 0 NEUTRAL 0 BASE Water Clarity 0 GOOD ❑ FAIR 0 POOR Water Level 0 HIGH 0 AVERAGE ❑ LOW 0 LITTORAL SHELF SHELVES#: ❑ SHORELINE GRASSES&EMERGENTS 0 HERBICIDE TREATMENT 0 DEBRIS REMOVAL ❑ FLOATING PLANTS 0 MANUAL REMOVAL ❑ INVASIVE/EXOTIC SPECIES El INSPECTION Q UPLAND/WETLAND PRESERVE PRESERVE(S)#: ❑INVASIVE/EXOTIC SPECIES ❑HERBICIDE TREATMENT ❑ DEBRIS REMOVAL 0 GRASSES ❑MANUAL REMOVAL ❑VINES ❑INSPECTION 0 MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#: 0 INSECTICIDE TREATMENT 0 INSPECTION Comments: L Vrej T,G-4-/-60 /D•oG -*704v-�-1.1./eFel Sp#17F ! ,�'7!-r- -fv- FISH&WILDLIFE OBSERVATIONS �� FISH: 0 Bass ram 0 Catfish O Grams carp GTilapia Cc Mos itofish 0 Shad BIRDS: O ptor amuck 0 od Stork &Shorebird O Wading bird OS gbird 0 Vulture REPTILES: Alligator °Snake C d'Turtle 0 Tortoise &LizardAMPHIBIANS 0 INSECTS INVASIVE I EXOTIC PLANTS NOTED °Brazilian pepper OMelaleuca OP nnywort OBischofia OEarleaf Acacia °Australian pine OShoebutton °Sedge °Climbing Fern °Air potato orpedograss OAzolla OSalvinia °Downy rose myrtle°Java plum °Floating Hearts °Lantana OHydrilla OHygrophilia OWater Lettuce OWater hyacinth°Cattail °Primrose OAlligatorweed NATIVE PLANTS NOTED OCypress 0 W Myrtle OFL Pine °Red Maple 0 terlily °Mangrove °Pond Apple °Oak OCocoplum ° lrush °Blue flag iris O Strangler fig ° rrowhead °Pick (weed OThalia O Palms °Golden Canna Spikerush OButtonbush 0 Eelgrass Cordgrass OF atcheegrass OSpatterdock °Ferns 0 Baby tears 0 Naiad 0 Chara °Duckweed 0 Bladderwort ondweed 0 Slender spikerush 0 Bacopa Other species noted/comments:, www.lakeandwetland.com Rev 07/23/14 Form 0 3980 1 6 I 1 A 2 Agenda Page 35 Lake Management-Wetland&Preserve Maintenance 4,/Lake & VV e t 1 a n d Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Planting MANAGEMENT Water Testing&Analysis-Fountains&Aerators w" SERVICE &INSPECTION REPORT Customer: .._ c' .._ -------____.--Account#: .__ Date:_do-ci --�( -- 7 Technician: t, Territory: --� ' Weather Conditions: {CAKE MANAGEMENT ❑}LGAE CONTROL Lake(s)#: Rif GRASSES&EMERGENTS Lake(s)#:,4(____ lc bo - ❑ SUBMERSED AQUATICS Lake(s)#: ❑ ATING PLANTS Lake(s)#: ___. ------------- rr INSPECTION Lake(s)#: �° it _ 0 DEBRIS Lake(s)#: —__ _-__--_- _________ Water Test Results (Combined Average) Temperature °F ❑HIGH 0 AVERAGE 0 LOW Dissolved Oxygen ppm 0 HIGH 0 AVERAGE 0 LOW pH reading 0 ACID 0 NEUTRAL 0 BASE Water Clarity _ 0 GOOD 0 FAIR 0 POOR Water Level _ 0 HIGH 0 AVERAGE 0 LOW LITTORAL SHELF SH LVES#: ._._ _ HORELINE GRASSES&EMERGENTS -- :ICIDE TREATMENT 0 DEBRIS REMOVAL pING PLANTSI L REMOVAL ASIVE/EXOTIC SPECIES IN UASPECTION 0 UPLAND/WETLAND PRESERVE PRESERVE(S)#: ❑INVASIVE/EXOTIC SPECIES ❑HERBICIDE TREATMENT 0 DEBRIS REMOVAL ❑GRASSES 0 MANUAL REMOVAL ❑VINES 0 INSPECTION O MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#: ❑INSECTICIDE TREATMENT 0 INSPECTION Comments:----------.__._-- -- L—,J k 1 _a r f e✓czc. 1_.- •FISH&WILDLIFE OBSERVATIONS FISH: 0 Bass OBream 0� Catfis . 0 Grass carp 0 Tilapia 0 Mosquitofish 0 Shad BIRDS: 0 Raptor ODuck QJp►a6d Stork 0 Shorebird c Wiing bird 0 Songbird 0 Vu REPTILES: 0 Alligator OSnake Turtle 0 Tortoise {,?'lizard 0 AMPHIBIAN SECTS INVASIVE/EXOTIC PLANTS NOTED °Brazilian pepper OMelaleuca OPepr►j+wort OBischofia 0Earleaf Acacia °Australian pine OShoebutton edge °Climbing Fern °Air potato orpedograss 0Azolla OSalvinia °Dow osemyrtle°Java plum °Floating Hearts °Lantana OHydrilla OHygr ilia OWater Lettuce °Water hyacinth attail °Primrose 0Alligatorweed NATIVE PLANTS NOTED OCy ess O Wa yrtle L Pine °Red Maple 0 W riily OMangr e °Pond A ple ocoplum (rush Blue flag iris Gtrangler fig rrowhead OPi relweed OT a t Golden Canna°Spikerush OButtonbush 0Eelgrass 0Cordgrass akahatcheegrass patterdock Ferns °Baby tears 0 Naiad OChara °Duckweed 0 Bladderwort OPondweed °SlenderspikerushOBacopa Other species noted/comments: _-_- www.lakeandwetland.com Rev 07/23114 Form#398D 1611A2 Agenda Page 36 Lake Management-Wetland&Preserve Maintenance Lake &'VV e t 1 a n d Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Planting p.t . 7� MANAGEMENT Water Testing&Analysis-Fountains&Aerators • t�,� � SERVICE& INSPECTION REPORT /100-A 11 Customer: ><+ 5 e k, �� Account#: Date._iiI.._- Technician:_ _V Lf i D Territory: AjtAfle., Weather Conditions: efAKE MANAGEMENT ❑ ALGAE CONTROL Lake(s)#: ❑ GRASSES&EMERGENTS Lake(s)#: p"SUBMERSED AQUATICS Lake(s)#: 1 V.e Jq._ Q_ncltUe.ea__, 'LY1 l4ZA.Ll .i lc ❑ FLOATING PLANTS Lake(s)#: ❑ INSPECTION Lake(s)#: ❑ DEBRIS Lake(s)#: Water Test Results(Combined Average) Temperature °F ❑HIGH ❑AVERAGE 0 LOW Dissolved Oxygen ppm 0 HIGH 0 AVERAGE 0 LOW pH reading — 0 ACID ❑ NEUTRAL El BASE Water Clarity ❑GOOD 0 FAIR 0 POOR Water Level 0 HIGH El AVERAGE 0 LOW 0 LITTORAL SHELF SHELVES#: ❑ SHORELINE GRASSES&EMERGENTS 0 HERBICIDE TREATMENT DEBRIS REMOVAL ❑ FLOATING PLANTS 0 MANUAL REMOVAL feif INVASIVE/EXOTIC SPECIES 0 INSPECTION 0 UPLAND/WETLAND PRESERVE PRESERVE(S)#: ❑INVASIVE/EXOTIC SPECIES 0 HERBICIDE TREATMENT 0 DEBRIS REMOVAL ❑GRASSES 0 MANUAL REMOVAL ❑VINES ❑INSPECTION Q MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#: 0 INSECTICIDE TREATMENT INSPECTION Comments:, Iev icea_ poll c 1,we'C A, 4 o m lake 1i9 FISH&WILDLIFE OBSERVATIONS FISH: O Bass °Bream O Catfish O Grass carp OTilapia 0Mosquitofish O Shad BIRDS: 0 Raptor °Duck 0 Wood Stork 0 Shorebird 0 Wading bird 0 Songbird 0 Vulture REPTILES: 0 Alligator °Snake 0 Turtle 0 Tortoise 0 Lizard 0 AMPHIBIANS 0 INSECTS INVASIVE/EXOTIC PLANTS NOTED ()Brazilian pepper OMelaleuca OPennywort OBischofia 0 Earleaf Acacia °Australian pine OShoebutton °Sedge °Climbing Fern °Air potato OTorpedograss OAzolla OSalvinia °Downy rose myrtle°lava plum °Floating Hearts °Lantana OHydrilla OHygrophilia OWater Lettuce OWater hyacinth°Cattail °Primrose OAlligatorweed NATIVE PLANTS NOTED OCypress O Wax Myrtle OFL Pine °Red Maple O Waterlily °Mangrove OPond Apple °Oak 0 Cocoplum 0 Bulrush °Blue flag iris °Strangler fig °Arrowhead OPickerelweed ()Thalia 0 Palms °Golden Canna°Spikerush OButtonbush 0 Eelgrass 0 Cordgrass O akahatcheegrassOSpatterdock 0 Ferns °Baby tears 0 Naiad OChara °Duckweed 0 Bladderwort Pondweed 0 Slender spikerushOBacopa Other species noted/comments:.__, www.lakeandwetland.com Rev 07/23/14 Form#3980 161 1A2 Agenda Page 37 Lake Management-Wetland&Preserve Maintenance &Wet 1 a n d Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Planting 4/Lake . MANAGEMENT Water Testing&Analysis-Fountains&Aerators `�, 111 ■�"' SERVICE&INSPECTION REPORT Customer: rCr t TA _ ay Account#: 14j.-15 Date: I /},/ f I Technician: ..1.5tA1,1, - A Territory: 1t-1C .1e5 Weather Conditions: i' 10%.(4), / \ 91-1i- 14A:1, (LAKE MANAGEMENT ❑ ALGAE CONTROL Lake(s)#: ❑ GRASSES&EMERGENTS Lake(s)#: ❑ SUBMERSED AQUATICS Lake(s)#: ❑ FLOATING PLANTS Lake(s)#: ❑ INSPECTION Lake(s)#: Et/DEBRIS Lake(s)#: jet Water Test Results(Combined Average) Temperature °F ❑HIGH ❑AVERAGE ❑ LOW Dissolved Oxygen ppm 0 HIGH 0 AVERAGE 0 LOW pH reading 0 ACID ❑ NEUTRAL 0 BASE Water Clarity 0 GOOD ❑ FAIR 0 POOR Water Level 0 HIGH ❑ AVERAGE 0 LOW O LITTORAL SHELF SHELVES#: ❑ SHORELINE GRASSES&EMERGENTS 0 HERBICIDE TREATMENT ❑ DEBRIS REMOVAL El FLOATING PLANTS 0 MANUAL REMOVAL ❑ INVASIVE/EXOTIC SPECIES 0 INSPECTION O UPLAND/WETLAND PRESERVE PRESERVE(S)#: ❑INVASIVE/EXOTIC SPECIES 0 HERBICIDE TREATMENT ❑ DEBRIS REMOVAL ❑GRASSES 0 MANUAL REMOVAL ❑VINES 0 INSPECTION O MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#: ❑INSECTICIDE TREATMENT 0 INSPECTION Comments: Pq Ice--1 cJ . Vi 1kr d Cf A)ri s c4:;y\) I rite. U-fin r, FISH&WILDLIFE OBSERVATIONS FISH: 0 Bass OB eam 0 Catfish 0 Grass carp 0 Tilapia 0 Mosquitofish 0 Shad BIRDS: Captor °uck 0 Wood Stork 0 Shorebird 0 Wading bird 0 Songbird 0 Vulture REPTILES: Alligator °Snake 0 Turtle 0 Tortoise l 'Lizard 0 AMPHIBIANS 0 INSECTS INVASIVE/EXOTIC PLANTS NOTED °Brazilian pepper OMelaleuca OPennywort 08ischofia 0Earleaf Acacia °Australian pine OShoebutton °Sedge °Climbing Fern °Air potato OTorpedograss OAzoila OSalvinia °Downy rose myrtle()Java plum ()Floating Hearts °Lantana OHydrilla OHygrophilia °Water Lettuce °Water hyacinth°Cattail °Primrose OAliigatorweed NATIVE PLANTS NOTED OCypress O Wax Myrtle OFL Pine ORed Maple 0 Waterlily Oyllangrove OPond Apple °Oak OCocopium 0_�ulrush QBIue flag iris °Strangler fig ['Arrowhead 3Pickerelweed Gfhalia 0 Palms °Golden CannaCJSpikerush OButtonbush 0 Eelgrass 0 Cordgrass OFakahatcheegrassOSpatterdock 0 Ferns °Baby tears 0 Naiad OChara 0Duckweed 0 Bladderwort 0Pondweed O Slender spikerush0Bacopa Other species noted/comments:, www.lakeandwetland.com Rev07/23/14 Form i398D 161 1A2 Agenda Page 40 DATE: 01/20/2021 Copeland Southern Enterprises,Inc. 1668 Many Road North Fort Myers,Fl, 33903 OWNER INFORMATION: PROFESSIONAL SERVICES AGREEMENT BETWEEN COPELAND SOUTHERN ENTERPRISES,INC.AND TELEPHONE NO.: (239)245-7118/306 Fax No: (239)245-7120 Heritage Bay Community Development District in Naples E-MAIL:Justin.Faircloth(/istservices.com, OWNER INFORMATION: PROJECT MANAGER:Scott Copeland copelandsei(n,aol.com OWNER'S ADDRESS: 10154 Heritage Bay Blvd,Naples,FL 34120 FEE AND TYPE: BILL TO THE ATTENTION OF:Justin Faircloth,Assistant District Manager Time&Materials based upon the Rate Schedule in effect at PROJECT NAME:Heritage Bay 2021 Erosion and Drainage Project. the time service is rendered. Estimated Fees: $ WORK DESCRIPTION: Repair of Concrete Walks, Drainage with 4 new Rip Rap Not-To-Exceed Fixed Fee based upon the Rate Schedule in areas on Lakes 1, 5, 18, Using Coconut Blanket, High Flow Fabric & 3 to 6" Rip Rap effect at the time service is rendered: 5_ with the replacement of 3 Catch Basins&Pipes,Replace 2 Sidewalk Locations Lake 1. REMARKS: 1)All guest and golfers will need to be notified by the board,of the repair Lump Sum Fixed Fee: $ .00 done on the Lakes to stay clear of the repair areas and equipment during the project. 2) All Sprinkler heads and lines within the work area must be clearly marked before Total Fees: $ .00 restoration begins 3)CSEI will call in a dig ticket 72 hours before work can start to allow utility companies time to mark the underground utilities within the work areas. 4)CSEI Price of Proposal will be based on selected options below. will need a staging area on site to store equipment and supplies during the project Dear Justin Faircloth In Pursuant to your request,Copeland Southern Enterprises,Inc.is pleased to submit the following proposal for the Sidewalk Repairs,Erosion,New Drainage and Rip Rap Corrections for Lakes 1,5&18 for the above-referenced project: SCOPE OF SERVICES(Limited to the following pages): 1. Crews will set up MOT around work areas to help insure the safety of the residents and guests during the project. 2. Crews will back fill eroded slopes with lake material and install new drain pipes out to 1.5 ft.below seasonal low water. 3. Crews will Repair Slopes and install High Flow Fabric with 6"anchor pins and install 3 to 6"Rip Rap. 4. Crews will restore the lawns and slopes back to original condition where equipment crossing has caused any damage. Price of Proposal will be based on selected options below. 0 Option 1,Lake#1, Crews will Remove Damaged Concrete Walk,Haul Away to County Dump,Remove old Drainage,Clear Rip Rap Area,Install New Concrete Catch Basin with Cast Iron Grate&10"DW ADS Pipe run out into Lake 1,Re-build Lake Slope,Install High Flow Fabric with 3 to 6"Rip Rap,Pour New 3000 PSI Concrete Walk and"D"Curb with lite Broom Finish $ 12,775.00 0 Option 2,Lake#1,Crews will Remove Damaged Concrete Walk,Haul Away to County Dump,Remove old Drainage,Clear Rip Rap Area,Install New Concrete Catch Basin with Cast Iron Grate&10"DW ADS Pipe run out into Lake 1,Re-build Lake Slope,Install High Flow Fabric with 3 to 6"Rip Rap,Pour New 3000 PSI Concrete Walk and"D"Curb with lite Broom Finish $12,175.00 0 Option 3,Lake#5,Crews will dig out old Golf Course Drain and ADS Pipe running out to Lake 5,Haul Away to County Dump,Remove Old Rip Rap Area,Install New Concrete Catch Basin with Cast Iron Grate&12"DW ADS Pipe run out into Lake 5 and Crews will tie in all existing Golf Course pipes into new C.B.,Re-build Lake Slope,Install High Flow Fabric with 3 to 6"Rip Rap,New Matching Sod $9,975.00 OOption 4,Lake#18,Crews will Cut Out Damaged&Eroded Slope on SW Corner of Lake 18,Back Fill and Re-enforce Lake Slope with layered Coconut Erosion Blanket,Install High Flow Fabric with 6 inch Pins and 3"to 6"Rip Rap $3,975.00 Note:Any additional work and services requested,and is not found in this Proposal can be done,but will require additional cost to be paid in full with proposal fee upon the completion of job. We at Copeland Southern Enterprises hope this meets your approval and satisfies your requirements.If so please sign the contract proposal below and return a copy to our office by Fax or Email.Should you have any questions or need any additional information,Please do not hesitate to call Scott Copeland at 239-995-3684 or Mobile# 239-707-6806.Fax 239-995-0058 OWNER AUTHORIZATION: I warrant and represent that I am authorized to enter into this contract for professional services and I hereby authorize the performance of the above services and agree to pay the charges upon the completion of the Job resulting there from as identified in the"FEE TYPE"section above. I have read,understand and agree to these Standard Business Terms. Authorized Signature: Date: Typed Name&Title: 1 Agenda Page 41 Option 1,Lake#1,RR Damaged S-Walk,Drain,Eroded Slope,Install New Walk,24"CB&3"to 6"Rip Rap,Cost$ 12,775.00 OVIIIIMM 1. Crews will cut&remove and haul away10'x 8' Damaged Concrete Walk and"D"Curb with Catch Basin and Old Drain. 2. Crews will install new 24"Concrete Traffic Catch Basin with Heavy Duty Cast Iron Grate with a new 10"Double Walled ADS Pipe run out into Lake 1 and anchored with 4 foot steel anchors to pond floor. 3. Crews will form up and pour a new 6",3000 PSI Concrete Sidewalk panel and"D"Curb around the new 24"Catch Basin. 4. Crews will remove existing eroded Rip Rap,re-build lake bank slope with recovered material from lake bottom and install new high flow fabric anchored with 6 inch pins&install 3"to 6"Rip Rap for 18'x 18' area. _ 4 04411,:ilib"‘"':‘,:t. i \+] u r 5 `I Option 1 F A ",- .ic „ . .... . , , ,,,,,, , 1,`k Replace Concrete Sidewalk w/6""D"Curb&3000 PSI * „�� 3 0: w . T, P s �,ancrete Traffic CB wi Large Cast iron Grate & 10" DW ADS Pipe ... n, (tr 0.p oaP 18 x 18' HF Fabric ctake #1 4,. - R , ,. 161 1A2 Agenda Page 42 1-1 Option 2,Lake#1,RR Damaged S-Walk,Drain,Eroded Slope,Install New Walk,24"CB&3"to 6"Rip Rap,Cost$ 12,175.00 1. Crews will cut,&remove and haul away10'x 8' Damaged Concrete Walk and"D"Curb with Catch Basin and Old Drain. 2. Crews will install new 24"Concrete Traffic Catch Basin with Heavy Duty Cast Iron Grate with a new 10"Double Walled ADS Pipe run out into Lake 1 and anchored with 4 foot steel anchors to pond floor. 3. Crews will form up and pour a new 6",3000 PSI Concrete Sidewalk panel and"D"Curb around the new 24"Catch Basin. 4. Crews will remove existing eroded Rip Rap,re-build lake bank slope with recovered material from lake bottom and install new high flow fabric anchored with 6 inch pins&install 3"to 6"Rip Rap for 15'x 15' area. $ r .i` ' 1 - ;s, $ Replace Concrete Sidewalk wi 6" "D" Curb & 3000 PSI Conc %oncrete Traffic CB w/ Large Cast Iron Grate & 10" DW ADS Pipe (4'f D (� ,,'‘,.0'' tap 15' x 15' HF Fabric a, Option 2 p 0 Lake#1 I 1611A2 Agenda Page 43 Option 3,Lake#5,Rip&Replace old 8"Drain,Install New 24"CB,Repair Eroded Slope with HFF&3"to 6"Rip Rap,Cost$9,975.00 1. Crews will dig out old 10"lake drainage system and haul away to county dump. 2. Crews will install new 24"Concrete Traffic Catch Basin with Heavy Duty Cast Iron Grate with a new 12"Double Walled ADS Pipe run out into Lake 5 and anchored with 4 foot steel anchors to pond floor. 3. Crews will re-install the old golf course drain pipes into the new Catch Basin coming from the West&North as seen in exhibit below and Concrete into place. 4. Crews will Back Fill,Compact&restore the Golf Course grade back to proposed grade before work started w/Sod 5. Crews will remove existing eroded Rip Rap,re-build lake bank slope with recovered material from lake bottom and install new high flow fabric anchored with 6 inch pins&install 3"to 6"Rip Rap for 31' x 15'area. i,c,is r;iing t;oit Louise Malls into New 44 t,awn pawl ri 1 • 3"to6' Rip Rao 31' x lc' r.01 r� r - Ni11. Large Cast Iron Grate & 12" DW ADS Pipe 4 I, Option 3 k 4 Agenda Pa1446 I 1 A 2 Option#4,Lake#18 Repair Eroded Lake Slope install High Flow Fabric& 3 to 6" Rip Rap.Cost S 3,975.00 1. Crews will cut off and remove existing slope in eroded area,Re-enforce& Re-build lake bank slope with recovered material from lake bottom, install layered Coconut Erosion Blanket,install new High Flow Fabric anchored with 6 inch pins&install 3"to 6"Rip Rap for 15' x 12'area and re-sod as seen in exhibit below. • „ w + -' , till ik. -,c , . e y , ., ill 4 Lake F 1 lib •d A • w • ,x. S s 11/' I M , t 1 ' & t • . .4 N , t 9, r ."4; , to.6 Ri"p;Rap 15" x 12' HF Fabric . . ° 11' ,. to n4� 4 ".: . . y vr- " ♦ • I! iy 1611A2 Agenda Page 45 Exhibit: 3 Inch to 6 Inch Rip Rap Detail RIPR- AP SHORELINE PROTECTION I 41111111.114111 r/IIIIIit — ---- � NORMAL LAKE ELEVATION ---- 11r•---III -___"----- MEAN LOW WATER LINE t�`_��_ II II l FOOT DEPTH MINIMUM �I It FEET TOE IN END OF STONE O 1 2 6 16 1R2 Agenda Page 46 DATE: 01/18/2021 Copeland Southern Enterprises,Inc. 1668 Many Road North Fort Myers,Fl, 33903 OWNER INFORMATION: PROFESSIONAL SERVICES AGREEMENT BETWEEN COPELAND SOUTHERN ENTERPRISES,INC.AND TELEPHONE NO.: (239)245-7118/306 Fax No: (239)245-7120 Heritage Bay Community Development District in Naples E-MAIL:Justin.Faircloth@inframark.com OWNER INFORMATION: PROJECT MANAGER:Scott Copeland cooelandseiaaol.com OWNER'S ADDRESS: 10154 Heritage Bay Blvd,Naples,FL 34120 FEE AND TYPE: BILL TO THE ATTENTION OF:Justin Faircloth,District Manager Time&Materials based upon the Rate Schedule in effect at the time service is rendered. Estimated Fees: PROJECT NAME:Repair Damaged Gutter Drains&Tie Into Lake system. $ WORK DESCRIPTION:Remove Existing Damaged 4"single walled gutter drains and Not-To-Exceed Fixed Fee based upon the Rate install new 4" DW ADS Pipes with 12"x12" Catch Basins at the intersection of each Schedule in effect at the time service is rendered: gutter and Connect to system to the existing 6"DW ADS Lake Drainage System. $ - REMARKS: 1)All guest and golfers will need to be notified by the board,of the repair Lump Sum Fixed Fee: $ 4,475.00 done on the Lake 26,to stay clear of the repair areas and equipment during the project.2) All Sprinkler heads within the work area must be clearly marked before drainage repairs Total Fees: $ 4,475.00 start. 3) CSEI will call in a dig ticket 72 hours before work can start to allow utility companies time to mark the underground utilities within the work areas. 4) CSEI will need a staging area to store equipment and supplies during the project. Dear Justin Faircloth In Pursuant to your request, Copeland Southern Enterprises, Inc. is pleased to submit the following proposal for the Repair of the Gutter Drainage systems for the above-referenced project: SCOPE OF SERVICES(Limited to the following): 1. Crews will set up MOT around work areas for safety during the project and remove once job has been completed. 2. Crews will cut and stack all sod with in the work area trench and re-install back into the trench area once the new system has been install and trench has been brought back to grade and compacted. 3. Crews will remove all above and below ground damaged&crushed Gutter base drains and single walled ADS pipe and haul away to county dump. 4. Crews will install all new Double Walled ADS drainage system starting from the gutter down spout in the rear of the home out to intersect with the new set 12"x12"Catch basin in the center line of the swale between homes to allow for maintenance access and to capture excess ground water which accumulates with in the area during the summer heavy rains. 5. Crews will then tie in the new 4"DW ADS drainage into the existing 6"DW ADS drainage system running into lake 26. 6. Work is estimated to take 4 days to complete. Note:Any additional work and services requested,and is not found in this Proposal can be done,but will require additional cost to be paid in full with proposal fee upon the completion of job. We at Copeland Southern Enterprises hope this meets your approval and satisfies your requirements.If so please sign the contract proposal below and return a copy to our office by Fax or Email.Should you have any questions or need any additional information,Please do not hesitate to call Scott Copeland at 239-995-3684 or Mobile#239-707-6806.Fax 239-995-0058 OWNER AUTHORIZATION: I warrant and represent that I am authorized to enter into this contract for professional services and I hereby authorize the performance of the above services and agree to pay the charges upon the completion of the Job resulting there from as identified in the"FEE TYPE"section above. I have read,understand and agree to these Standard Business Terms. Authorized Signature: Date: Typed Name&Title: 1 6 I 1A2 Agenda Page 47 Exhibit:Work Areas for New Drainage System in Green J , f/ r ` • g S..fi s ,. r . w .si-to . 6"DW.ADS I a►nage& 12"CB ` :;. " * <: fit' '1 " •i...:a 4„4/410r Its . .....a!s. :"' E` ' 0*.t is....`',r,.... . ,.. . -, , 0 1 ir ..._ , .• A.',.,n.t.• ,• s, ••041110211" '> .‘ . .a.,tertiart, . .k *,,, , •. • r A. `""� .�, .. :dt� -..__..e•/• /',('.try „y [ . /41,i,.(„,,,.. ., — —/ 1 k. /..... t 7 ., _ .. _..,.,.. .. , — 4 . , *LI , cittt. „ . _Lc.. ., i ., . Fir,. .4,kt 1r Mr.IR • . ' , 1:. 4 s [ 4 ,#M l..1, tirir *41c,..,, fr ir, a J d A, . S ` 4 I • . L , s1 fi a 161 1A2 Agenda Page 49 Date: To: Subject: Removal of Rip Rap Stones along the Lake Bank of Heritage Lake Dear Homeowners, This letter is being sent to all homeowners on Biscayne Bay Lane who border the eastern recreational lake, Heritage Lake. We have been advised by the Chairman of the Heritage Bay Community Development District (CDD), Ed Hubbard,that due to observations by the CDD as well as reported sightings of homeowners,some homeowners along Heritage Lake have been removing the lake bank stones for personal use. Ed has advised us of the following: The CDD spent about$1.5 million to restore the lake banks on Heritage Lake due to extensive damage caused by hurricane Irma. To remove stones not only compromises the properties of all homeowners along this lake bank but it is an express violation of the CDD permit which is overseen by the South Florida Water Management District and Collier County. The bank was rebuilt by reestablishing the original permitted slopes and dimensions as well as creating a "foundation" at the base of the lake bank stones utilizing a "keyway"technology to mitigate future lake bank damage and potential damage to the accompanying homes. The number of stones that were placed on this lake bank are critical to the banks long term viability. The CDD Board requests that you please consider the gravity of this situation and if you have been responsible for removing stones, please place them back on the lake bank. Inspections by the CDD have noted some gardens at the rear of your properties have the rip rap stones placed along your garden boundary. The CDD will continue to monitor this situation and advise the Single-Family Board of Directors of any future infractions. The CDD does not wish to take action against any homeowners but everyone must understand that protection of the entire surface water management system (31 lakes), and specifically Heritage Lake, is critical to protecting our entire Heritage Bay infrastructure. We appreciate your cooperation. SFH Board of Directors 1 6 I 1 A 2 Agenda Page 59 HERITAGE BAY Community Development District Financial Report December 31, 2020 (Unaudited) Prepared by (6) INFRAMARK 611A2 HERITAGE BAY Agenda Page 60 Community Development District Table of Contents FINANCIAL STATEMENTS Pages Balance Sheet-All Funds 1 Statement of Revenues, Expenditures and Changes in Fund Balance General Fund 2-3 Debt Service Fund 4 SUPPORTING SCHEDULES Trend Report 5-6 Non-Ad Valorem Special Assessments 7 Cash and Investment Report 8 Bank Reconciliation 9 Check Register 10- 13 1 6I 1A2 Agenda Page 61 HERITAGE BAY Community Development District Financial Statements (Unaudited) December 31, 2020 HERITAGE BAY AgendA'age 621 1 A 2 Community Development District Governmental Funds Balance Sheet December 31,2020 SERIES 2018 DEBT GENERAL SERVICE ACCOUNT DESCRIPTION FUND FUND TOTAL ASSETS Cash-Checking Account $ 2,079,480 $ - $ 2,079,480 Due From Other Funds - 1,427,318 1,427,318 Investments: Money Market Account 352,360 - 352,360 Reserve Fund - 390,398 390,398 Revenue Fund - 225,457 225,457 TOTAL ASSETS $ 2,431,840 $ 2,043,173 $ 4,475,013 LIABILITIES Accounts Payable $ 31,548 $ - $ 31,548 Due To Other Funds 1,427,318 - 1,427,318 TOTAL LIABILITIES 1,458,866 - 1,458,866 FUND BALANCES Restricted for: Debt Service - 2,043,173 2,043,173 Assigned to: Operating Reserves 95,441 - 95,441 Reserves-Erosion Control 14,687 - 14,687 Reserves-Lakes 156,250 - 156,250 Reserves-Stormwater System 21,765 - 21,765 Unassigned: 684,831 - 684,831 TOTAL FUND BALANCES $ 972,974 $ 2,043,173 $ 3,016,147 TOTAL LIABILITIES&FUND BALANCES $ 2,431,840 $ 2,043,173 $ 4,475,013 Page 1 1 6 I 1 A 2 HERITAGE BAY Agenda Page 63 Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending December 31,2020 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ 2,000 $ 500 $ 834 $ 334 Special Assmnts-Tax Collector 355,190 311,411 317,447 6,036 Specials Assmnts-Lakes 30A&30B 60,923 53,413 54,448 1,035 Special Assmnts-Reserves 31,250 27,398 27,929 531 Special Assmnts-Discounts (17,894) (15,690) (15,935) (245) TOTAL REVENUES 431,469 377,032 384,723 7,691 EXPENDITURES Administration P/R-Board of Supervisors 9,000 2,250 1,600 650 FICA Taxes 689 172 122 50 ProfServ-Arbitrage Rebate 600 600 - 600 ProfServ-Dissemination Agent 1,500 375 375 - ProfServ-Engineering 14,000 3,500 4,977 (1,477) ProfServ-Legal Services 13,000 3,250 1,518 1,732 ProfServ-Mgmt Consulting Sery 47,658 11,915 11,915 - ProfServ-Property Appraiser 6,710 6,710 210 6,500 ProfServ-Special Assessment 6,798 6,798 6,798 - ProfServ-Trustee Fees 5,157 5,157 6,235 (1,078) ProfServ-Web Site Maintenance 1,133 283 283 - Auditing Services 5,900 - - - Website Compliance 1,553 1,553 - 1,553 Postage and Freight 2,500 625 109 516 Insurance-General Liability 8,524 8,524 7,749 775 Printing and Binding 711 178 3 175 Legal Advertising 3,000 750 399 351 Misc-Bank Charges 100 100 - 100 Misc-Assessmnt Collection Cost 8,947 7,844 7,678 166 Misc-Web Hosting 2,000 500 2,113 (1,613) Office Supplies 100 100 - 100 Annual District Filing Fee 175 175 175 - Total Administration 139,755 61,359 52,259 9,100 Page 2 161 1A2 HERITAGE BAY Agenda Page 64 Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending December 31, 2020 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) Field ProfServ-Field Management 13,215 3,304 3,379 (75) R&M-Contingency 42 42 - 42 Total Field 13,257 3,346 3,379 (33) Lakes and Ponds Contracts-Lake and Wetland 71,200 17,800 16,800 1,000 Contracts-Water Analysis 9,861 2,465 - 2,465 Contracts-Water Quality 27,700 6,925 13,850 (6,925) Contracts-Lakes 30A&30B 24,000 6,000 6,000 - Contract-Sediment Testing 6,675 6,675 - 6,675 R&M-Aquascaping 3,500 875 - 875 R&M-Stormwater System 4,000 1,000 - 1,000 R&M-Lake Erosion 76,024 19,006 - 19,006 R&M-Contingency 5,792 1,448 1,200 248 Reserve-Lakes 31,250 31,250 - 31,250 Reserve-Stormwater System 18,455 18,455 - 18,455 Total Lakes and Ponds 278,457 111,899 37,850 74,049 TOTAL EXPENDITURES 431,469 176,604 93,488 83,116 Excess(deficiency)of revenues Over(under)expenditures - 200,428 291,235 90,807 Net change in fund balance $ - $ 200,428 $ 291,235 $ 90,807 FUND BALANCE,BEGINNING(OCT 1,2020) 681,739 681,739 681,739 FUND BALANCE,ENDING $ 681,739 $ 882,167 $ 972,974 Page 3 1611A2 HERITAGE BAY Agenda Page 65 Community Development District Series 2018 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending December 31, 2020 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ 3,000 $ 750 $ 13 $ (737) Special Assmnts-Tax Collector 1,689,155 1,480,954 1,509,660 28,706 Special Assmnts-Discounts (67,566) (59,238) (60,167) (929) TOTAL REVENUES 1,624,589 1,422,466 1,449,506 27,040 EXPENDITURES Administration ProfServ-Property Appraiser 25,337 25,337 598 24,739 Misc-Assessmnt Collection Cost 33,784 30,469 28,990 1,479 Total Administration 59,121 55,806 29,588 26,218 Debt Service Principal Debt Retirement 1,030,000 - - - Principal Prepayments - - 5,000 (5,000) Interest Expense 535,031 267,516 267,441 75 Total Debt Service 1,565,031 267,516 272,441 (4,925) TOTAL EXPENDITURES 1,624,152 323,322 302,029 21,293 Excess(deficiency)of revenues Over(under)expenditures 437 1,099,144 1,147,477 48,333 OTHER FINANCING SOURCES(USES) Contribution to(Use of)Fund Balance 437 - - - TOTAL FINANCING SOURCES(USES) 437 - - - Net change in fund balance $ 437 $ 1,099,144 $ 1,147,477 $ 48,333 FUND BALANCE,BEGINNING(OCT 1,2020) 895,696 895,696 895,696 FUND BALANCE,ENDING $ 896,133 $ 1,994,840 $ 2,043,173 Page 4 6I1A2 Agenda Page 66 HERITAGE BAY Community Development District Supporting Schedules December 31, 2020 1611A2 0 �▪ o00 , r , r cn o co oi m m cu ca d 3 is - � m ego ou C2 8V CO gm � g a d C CO CD c a N O. o v v c °' `e F, 2 m e 8m 8e co 2 oaP ., B , CD 0 z tit �re _ N d c ce co r r N tNi m ^. to it o CD y m _ m y , , , , , , r c' N N CO c--- CO ¢0 COR m 9 — — o,0 • cc, r m c p , m y p r N N CD N r . 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C7 O > o5 oO co V N V CO Z < C0.1 N V V CO Z d 5 Q d ce a) 1— U Z N ELT ER Cl) C o U M 0 a) O O O o 0 0 J w 0 E O N N N N N N J E_ C6 a1 N ca CO N- m O O Fa„ J Q M N C O U)) O O x- ,- N N h- U 0 CN Q Q o ~ C — Q ', O N O Q N CO 0 N W a T as a 'E 0 = r 0 2 E W O I 0 16I1A • HERITAGE BAY Agenda Page 70 Community Development District Cash and Investment Balances December 31, 2020 ACCOUNT NAME BANK NAME MATURITY YIELD BALANCE GENERAL FUND Operating Checking Valley National Bank N/A 0.25% $ 2,079,480 Money Market Account BankUnited N/A 0.30% 352,360 Subtotal General Fund 2,431,840 DEBT SERVICE FUND Series 2018 Reserve Fund US Bank N/A 0.2% 390,398 Series 2018 Revenue Fund US Bank N/A 0.2% 225,457 Subtotal Debt Service 615,856 (i) Total $ 3,047,695 Note (1) Invested in First American Obligation Fund Report Date:2/1/2021 Page 8 1 6 1 1 A 2 Heritage Bay CDD Agenda Page 71 Bank Reconciliation Bank Account No. 9727 Valley National Bank GF Statement No. 12/20 Statement Date 12/31/2020 G/L Balance(LCY) 2,079,480.17 Statement Balance 2,079,740.17 G/L Balance 2,079,480.17 Outstanding Deposits 0.00 Positive Adjustments 0.00 Subtotal 2,079,740.17 Subtotal 2,079,480.17 Outstanding Checks 260.00 Negative Adjustments 0.00 Differences 0.00 Ending G/L Balance 2,079,480.17 Ending Balance 2,079,480.17 Difference 0.00 Posting Document Document Cleared Date Type No. Description Amount Amount Difference Checks 12/3/2020 Payment 3669 COLEMAN,YOVANOVICH&KOESTER,P.A. 607.50 607.50 0.00 12/3/2020 Payment 3670 CPH,INC 3,258.00 3,258.00 0.00 12/3/2020 Payment 3671 INFRAMARK,LLC 5,368.02 5,368.02 0.00 12/10/2020 Payment 3672 FEDEX 23.56 23.56 0.00 12/10/2020 Payment 3673 LAKE&WETLAND MANAGEMENT WEST C 7,600.00 7,600.00 0.00 12/10/2020 Payment 3674 NAPLES DAILY NEWS 399.00 399.00 0.00 Total Checks 17,256.08 17,256.08 0.00 Outstanding Checks 7/2/2020 Payment 3625 COLEMAN,YOVANOVICH&KOESTER,P.A. 260.00 0.00 260.00 Total Outstanding Checks 260.00 260.00 Page 9 161 1A2 O . . . . 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University Dr. Suite 702 Statement No: 69 Coral Springs FL 33071 Attn: Justin Faircloth Gen Rep SENT VIA EMAIL TO: inframark@avidbill.com Previous Balance $991.25 Fees Hours 10/01/2020 GLU Review and respond to email correspondence from Diane Manza on proposed audit committee notice for Heritage Bay. 0.50 162.50 10/04/2020 GLU Review and respond to email correspondence from Chairman on meeting (no charge) 10/06/2020 GLU Review and respond to email correspondence from Justin Faircloth on audit committee ad 0.10 32.50 10/07/2020 GLU Review and respond to email correspondence from Diane Manza regarding revised audit selection committee notice; review same. 0.40 130.00 10/21/2020 GLU Receive and review annual report form; Finalize annual report form; Draft email correspondence to Manager with executed report form for filing 0.30 97.50 10/25/2020 MEM Work on reviewing and editing Legislative Update document; research bills referenced in the Legislative Update 1.00 120.00 10/26/2020 GLU Review email correspondence from Justin Faircloth regarding legislative update; Review and finalize summary with comments. 0.20 65.00 Professional Fees through 11/18/2020 2.50 607.50 Total Current Work 607.50 Payments Total Payments Through 11/18/2020 -991.25 Balance Due (includes previous balance, if any) $607.50 Page 11 Agenda Page 74 I Invoice cpti 500 West Fulton Street Sanford,FL 32771 407-322-6841 Justin Faircloth November 2, 2020 Heritage Bay Community Development District Project No: H13614 CIO INFRAMARK Invoice No: 122378 210 N. University Drive Suite 702 Coral Springs, FL 33071 Stormwater Lakes Banks Assessment 10154 Hertiage Bay Blvd Naples, FL 34120 Collier Professional Services through October 18,2020 Fee Percent Previous Fee Current Fee Billing Phase Fee Complete Billing Billing Field Inspection 6,500.00 100.00 3,250.00 3,250.00 Total Fee 6,500.00 3,250.00 3,250.00 Total Fee 3,250.00 Reimbursable Expenses Communications 8.00 Total Reimbursables 8.00 8.00 Total this Invoice $3,258.00 Page 12 1 6 I 1 A 2 c.4 , _..._ T T-7 ITT 7 rg,..I f 8.-8.r g"1 1 ' I I 1 1 . ,.. , (,)t,... LC) i ! g v I c, 1 r- , I cu 0 01 i i ' i ' 1 I ' • ' 1 1 1 !k 1. I CO V Z I I 1 ' cz ' 111 T—17 2 ' ' t.... , • CD 2" I , 1 U .--Iri & z •,,zatIzi.,,T., 1,—Teli; ' 1 1 , ' !!!..!! • '..., ...., , , ,... ,...!.., ,_, ,., ,.... ; a ctj ''''a . I I I I ...I , 1! f - 4--I 1 i 12 i 1 ! i 1 - C 2' ... , , cg 3 en 1 ' • ' •T .------i i I '1 z , th, 2 0 . . . i , lai 1 1 0 es •Ti. a a ! 1 c ,z!ii. 4., U1 AIC i . •' • 1 4 2 2 Li ,... i , ! I 1 I I ?, • I • 8 2 wx ecl z a I ... m0 q q . I , i I I o 2 1 o i ! i 1 I i ' 2 .4 .. '— I tio 4 . I I 1 i ? i , .. 1.-. ---4-.1. , 1 a MI I 21 , le 1 le 1 — i•-• ....# ;4 ...1 I ' iail 0: 43 III I i cr 0 .1 1 1 II c,Fil i g 4 2 ..., 4 .4i I fot . .... ". 21 z 4 m 14 4 q 8 , z a. It Si 4 , ! , . ] --.4— 0 z I Ili 1 1 1 I ! z z 1 o.1 1 i 8 I . 1 .. I I 4 W I I I •--- . I IX4081 1 I • 1 \I g ;' 1 Ct ."..5 i I 111 1 I I I • 1 i I J-± ' i 1 AZ I Zgg ' 1 • 1 I I I III , • . i III .1 I I f.os I ' I. ..•' , i I . I I t c i • t i t i 1 >•," t t cc. . I i \'41 ! i " , .. ... , ... . . .3. 1 a !lee v a. 7 E 2i2 1 1 • 1 . ' E 0 ' 2 --'t • ,.. O. 9 2 •L' , i f 1 -- 1 , 1 '‘ '13 ks, 1 i ! , 1 z . ; , , 21 i 1 ' t , ten l 'i'tee .00 - ! , ".. I . I I I.; 2 !.8 !,:" ica W4gi z...4 .".!..I. . . z...t '-z.. t-z. ! j.." 0 !4 4 •,..--...1 0 0 .F2. ,8•10 0 98'9 2 i 8g 17, L• ii-- 'I ...., as •-.1 ;•-• ;P.,.4 . . .. i 1 i I t 1 i_ ii7c.. c i' Agenda Page/7 6 1 1 A' 2 6 INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES Heritage Bay CDD .. ... .. ..... .. .. .. .. .... 1/21/21 — Field Management Report g , . ..„,,..„ . ,,,,,,...z.,,,,, ,„,. ...1... , ..1 ..„: ),Ti.- _ . .., , --..,,k ';tv.I.',,,Arve' ; . :. /4; / . 1,' , : ii�� t � LLrr ' 71 .f.. • +�y � q4 4- :.•''''••' 4 -44'.-'--..i.:154% "''- ' - -•,s,‘,Y.L.----- t... -7.5.. ....•,. ,',.44,:‘- -;i- ;'1'.'—• •,-. 10.# 4„, -;`-t , '': ,., �' ` ( HER1TY ) - f c""r GOLF COUNTRY CLUB ; , t„-ow. 41.4moomourial•whom •�•�'"'�'�rct _ r �''' .•�„�.... ,� 2'�„ r�-:aye •,� x' -"�» www.inframarkims.com AgendaiagA8I 1 A 2 1, Lake Management The lake levels remained a bit elevated, however, they are beginning to recede. Water clarity remains very good in the lakes. Illinois Pondweed is growing healthily in several of the lakes and topping out in places. Heavy treatment will be necessary once the control structures stop flowing. Additional lake maintenance information is found below; all lake issues are low density unless otherwise noted. i .r' bi'..'t 4 f Ile ti1:'^V YID a. Algae on Lakes: 29. • • • b. Littorals: Dead spike rush found floating in lake 12.The build up is minor, but the Board may wish to consider raking it out. The southern littoral shelf continues to remain flooded, and still requires heavy treatment to rid the area of the tall undesirable grass. Inframark Monthly Management Report 1 1 6 I 1A2 Agenda Page 79 S` . Ili. Alligator Flag in Lakes: No issues observed. C. Rocks: 30B.A few weeds were popping up on the northern quadrant on the lake 30B side of the Heritage Bay Blvd. bridge.All other quadrants appeared to be fine. 100 jew • Y F' d. Weeds: i. Alligator Weed in Lakes: No issues observed. ii. Bitter Melon/Balsam Apple: No issues observed. iii. Brazilian Pepper: No issues observed. iv. Cattails in Lakes: No issues observed. v. Climbing Hemp Vine in Lakes No issues observed. vi. Dollar Weed in Lakes. No issues observed. vii. Hydrilla in Lakes; 28&29. High density continues to be observed in both lakes and does not appear to have been treated since the last inspection. h dWk Inframark Monthly Management Report 2 161 1A2 Agenda Page 80 viii. Illinois Pondweed in Lakes: 5, 15, 19,20, 25, 26, 27, 30A, &30B. Medium density in lakes 19&20.The passage under the bridge appeared to be clear with no obstructions. Lakes 19, 26, 27, &30A shown. kjihW ..f ix. Palms on Lake Banks: 3(SE corner). rff 1 V. X. Red Ludwigia in Lakes: No issues observed. xi. Sedges in Lakes: No issues observed. xii. Spatterdock/Lily Pads in Lakes: 27. Lake 3 appeared to be clear after recent treatments. Inframark Monthly Management Report 3 161 1A2 Agenda Page 81 a. Inii i .1. xiii. Torpedo Grass in Lakes: No issues observed. xiv. Various Lake Bank Weeds: No issues observed. xv. Various Submerged weeds in Lakes: No issues observed. xvi. Trash in Lakes: 19, 25, 27,28,&29. Lakes 19&25 shown. . Y ya \ t`!. ,is 4..i e` .,'. ' - _ ._ . 4. . y 1. toil _ e. Bulkheads: No issues observed. f. Clippings in Lakes: No issues observed. 2. Lake Bank Erosion a. Ruts were observed on the south bank of lake 4. No repair is suggested at this time. r ft. Minor erosion was observed on the south bank of lake 26 north of almost every catch basin previously installed. It is recommended that all downspouts be connected to the drain lines into the lakes to prevent further erosion of the lake bank. A proposal for repairs has been requested. Inframark Monthly Management Report 4 161 1 A 2 Agenda Page 82 4 •� ' _ ..• R 4,' { yam,(K..z. Q' �_ yy,, , t �� 9' � �` {4. #r eke' It 7�J..> s Y$yia+t T�S cam, „.,. c: , 4 - i Erosion on the west bank of lake 29 was observed which is likely caused from downspout overflow from the adjacent building. Installation of piping connected directly to the downspouts or other remedial efforts are recommended to minimize further bank erosion. i ▪ 41 . ' a v a . ,.!.,.;0 41.-▪Vie ,It' , 3. Storm Drainage System a. Boundary Berm: No new issues observed. b. Control Structures: i. pasin 1' Control Structure L3/L10 was flowing. Control Structure L5/L6 was flowing. ► .rr".u►1►t,etotie tii r�Rr a +hr*•+s�iru44��1�►, �r ►+►►►' rE -4as.'-',0t•►40%.1 •►1.4 --,1•4,�r°�1, wry'" a' ilt4:). 41,4)•*".-41111,lib 411, ii. Basin 2 Control Structure L6/L20 was flowing. Control Structure L12/L20 was flowing. Inframark Monthly Management Report 5 161 1A2 Agenda Page 83 lJ�Ofe.viir ag. — n►�► III►411. 411.•ti a► .► • r • IOW •�1 •10. 40. x . l► l► 41 ♦ f a ' 101110411,Wilr!!ifi 04014040 Ali!! ' 14 . . , .+��Ilir��► iii. Basin 3: Control Structure 102 behind the maintenance facility was flowing; maintenance of the structure and surrounding area is needed. Control Structure L25L30 was not flowing. • trig.%jeer toot nor Alt to 01101 leg rite!11'1 r ►jIY�•4j��r1�s.�►'�j►�1►irt•11+f►•� _ glower" vollig0410:10:11 ► �IVO "0 if*4,► �1 ./► �► I. R iv. Basin 4&5: Control Structure L28/L30 was flowing. Structure L29/L30 was flowing. I►11►I>Il Y�ts K��r► 1►1. I)Il Y>I I►1►4� iliRfit fii►'is4i►li►iiii1 �.0131n► 4 ►ai11 V. fl3Sin 6 Control Structure W2L30 was not flowing. Control Structure L27/L30 was flowing. Control Structure L30/C00O3 was flowing. Control Structure L30/C00O2 was flowing. e "- 9., ¢ r f Iraaisi \,• ft/it/III I////I HIll'tl\\\\\\\\\\\1 F , � a 1 1 111\1_ )1\.:\\\ y1►4►�►i►i�►i►l�►��l►l�il�il��l�lro • Inframark Monthly Management Report 6 141 1A2 Agenda Page 84 `, Z `A' 1 -. c. Drains' Since erosion was observed on the south bank of lake 26 Copeland Southern was requested to video all of the catch basin drain lines that were previously installed on the south bank of lake 26 to ensure the pipes were functioning properly.They found that the recent Hotwire installation damaged the eastern most drain line and needs to be repaired. 31 ern ,,�» `g ,.„. „ . ;�.. P r. ',,,,,,,,„,,v.,, be0. s� + . ! r �l r � '! w: " d. Roadway Catch Basins: No issues observed. e. Catch Basins: Drains should be kept clear of grass beginning to cover them. Only one drain issue observed behind the homes bordering lake 30A. F ry ;. iI I .r t : 11 aA. . r �Rf ]n �: hri, q. t. f. Inter-Connect/Drain Pipes: No issues observed. Most if not all pipes were underwater. g. Illicit Discharges: No issues observed. h. Lake Drainage Pipes: No issues observed. Inframark Monthly Management Report 7 1 6 I 1A2 Agenda Page 85 4. Parcels No new issues observed. 5. Fish/Wildlife Observations: ® Bass ❑ Bream ❑ Catfish ❑ Gambusia ® Egrets ® Herons ❑ Coots ❑ Gallinules ®Anhinga ❑ Cormorant ❑ Osprey ® Ibis ❑ Wood stork ❑ Otter ®Alligators ❑Snakes Turtles Other: Turkey swk ti s t . �€ i + Y } ,fI tix 6. Residential Complaints/Concerns: No issues reported. 7. Non-CDD Issues: a. A Brazilian pepper tree was observed in the hedge adjacent to lake 29 and should be removed to prevent further spread within the District. IR•, Inframark Monthly Management Report 8 Agenda Page 86 1 1 A 2 h A Hotwire connection box was found with its cover off in the northwest corner of lake 30A near the roundabout. It appears the securing bolt may have stripped out and no longer be able to keep the cover in place.The bolt is also raised and may pose a mowing hazard.The box should be A' inspected and repaired. %,1 ,, a0.1' ?-1.4 , -� ;_ ,mil` \,-�'=,„ , o 164 * r A decent sized hole was found along the northwest corner of lake 30A near the roundabout that was likely from a prior irrigation leak that appears to have now been repaired. Fill should be added to ensure there are no trip hazards or issues with mowers. - . ..-- qt-Fi• fl.,* . •• 114' kq r 3r c • ^" j ,'� F•..PF" E i.Off/ ,..v 4 4 [+�"�,,, M ';,whir? 4. i�. ... t.,._ sx. ..! +.M'..4r 1) 6►-f ♦,.ire `R.\ 4 iipsti,r.. f `, +f,," ,, ems • Inframark Monthly Management Report 9 • Heritage Baye Community Development District A Inframark,Infrastructure Management Services 210 N.University Drive,Suite 702,Coral Springs,Florida 33071 Tel.(954)603-0033•Fax(954)345-1292 DATE: June 25, 2021 TO: Mr. Derrick Johnssen CLERK OF THE CIRCUIT COURT Finance Department Derek.johnssen@collierclerk.com FROM: Christy Gargaro Recording Secretary RE: Minutes of the February 11, 2021 Meeting Approved at the March 4, 2021 Meeting Enclosed for your records is a copy of the minutes of the above referenced meeting of the Heritage Bay Community Development District, which are to be kept on file for public access. Encl: Cc: Mr. Gregory Urbancic gurbancic@cyklaw.com iustin.faircloth@inframark.com 1 6 I 1 A 2 MINUTES OF MEETING HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Heritage Bay Community Development District was held on Thursday, February 11, 2021 at 9:00 a.m. in the Heritage Bay Clubhouse, 10154 Heritage Bay Blvd., Naples, Florida. Present and constituting a quorum were: Edwin Hubbard Chairman Dennis Gagne Vice Chairman Donna Hunter Assistant Secretary Jack Arcurie Assistant Secretary Allen Soucie Assistant Secretary Also present were: Bob Koncar General Manager Justin Faircloth District Manager Gonzalo Ayres Lake & Wetland Management The following is a summary of the actions taken at the February 11, 2021 Heritage Bay Community Development District's Board of Supervisors meeting. FIRST ORDER OF BUSINESS Call to Order Mr. Koncar called the meeting to order and called the roll. A quorum was established. SECOND ORDER OF BUSINESS Approval of Agenda On MOTION by Mr. Hubbard seconded by Mr. Gagne with all in favor the agenda was approved. THIRD ORDER OF BUSINESS Public Comment on Agenda Items • None. FOURTH ORDER OF BUSINESS Engineer's Report A. Clubhouse Dry Retention Modification Update • An update was given on the Clubhouse dry retention modification. SFWMD accepted construction completion certification and permit was converted from the construction phase to the operation and maintenance phase. 1 6 I 1A2 February 11, 2021 Heritage Bay CDD B. Terrace VI Drain Line Repairs and CPH Oversight • Mr. Hubbard provided an update on the project noting that this project was currently on hold due to water levels. C. Veranda V—Non-compliance with ARC Approval Process& Related Water Discharge Issues • An update was provided noting approval was pending from the ARC. D. Veranda VII & VIII - Request for Gutter and Downspout Installation and Related Water Discharge Issues • Mr. Hubbard gave an update on the project noting that CPH had submitted a proposal to the association to oversee the work. E. Analyze and Document that Rip Rap on South Lake Bank of 30A Meets SFWMD Standards Update • Lake 30A Southern Bank Existing Elevations Survey Proposal from CPH was discussed. On MOTION by Mr. Gagne seconded by Mr.Arcurie with all in favor the CPH proposal for Elevation Survey on Lake 30A in the amount of$3,990 was approved. • It was noted that the work will be done in conjunction with the surveying of the interlocal agreement boundary marking area so there is no mobilization fee. FIFTH ORDER OF BUSINESS Attorney's Report A. E-Verify Memorandum of Understanding • A recent statute requires all governmental and private entities register with the Homeland Security and enter into a Memorandum of Understanding with them regarding the E- Verify system. • Discussion ensued and questions and comments were addressed. �On MOTION by Mr. Hubbard seconded by Mr. Arcurie with Mr. Hubbard, Mr. Acrurie and Mr. Soucie in favor and Ms. Hunter and Mr. Gagne opposed, to approve the E-Verify Memorandum of Understanding; and authorize the Chairman to execute on behalf of the Board subject to the District Attorney providing a memorandum to the Board concerning the need and requirement to complete the E-Verify process; and Inframark to begin the on- line application but not process it until the District Attorney provides his comments to the Board was approved. 3-2 2 1 6 I 1 A 2 February 11, 2021 Heritage Bay CDD SEVENTH ORDER OF BUSINESS Old Business A. Lake Tree Marking/Trimming Update B. CPH Study of Control Structures,Lake Interconnects and Lake Bank Assessments and Documentation i. Actions Taken Since Issuance of Reports • Mr. Hubbard gave an update noting progress is being made. EIGHTH ORDER OF BUSINESS New Business A. Recommended Summer 2021 Work on Lake Banks 1, 5, 18&26 • Copeland Southern Enterprises, Inc. proposal for erosion and drainage project was discussed. On MOTION by Mr. Hubbard seconded by Mr. Gagne with all in favor the proposal from Copeland Southern for drainage work on Lakes 1, 5 and 18 in the amount of$38,900 was approved. • Mr. Hubbard commented on the storm water management and lake bank repairs. • The Copeland Southern Enterprises, Inc. proposal to repair damaged gutter drains and tie into the lake system was discussed. • A revised quote for repair of six connections was received in the amount of$1,575. Ms. Hunter MOVED to approve the revised proposal from Copeland Southern for residential drainage work in the amount of$1,575 and to obtain authorization from homeowners to work on their property and Mr. Arcurie seconded the motion. • The prior motion was discussed. On VOICE vote with all in favor the prior motion was approved. The record will reflect Mr. Ayres joined the meeting. B. January 27,2021 Letter from Single Family Board • Removal of Rip Rap Stones along the lake bank of Heritage Lake was discussed. 3 1 6 I 1 A 2 February I I, 2021 Heritage Bay CDD SIXTH ORDER OF BUSINESS Lake & Wetland Management Monthly Inspections and Service Reports A. Review of Proposals to Control the Illinois Pond Weed in Aqua Range Lake 19 • Mr. Ayres gave an update on installing barriers and grass carp. • Discussion ensued with regard to the proposal to install barriers and grass carp. • Barriers will be installed with a locking mechanism and 144 grass carp. Mr. Soucie MOVED to install barriers with locking mechanism and 144 grass carp in Lake 19 and Mr. Gagne seconded the motion. • The prior motion was discussed. A permit and work approval by SFWMD will be required. On VOICE vote with all in favor the prior motion for a total price of $2,310 was approved. • The Chairman and staff will follow up on installation of "No Fishing" signage. B. Littoral Planting Update i. Discussion Regarding Proposal Development for FY 2021 Plantings • Proposal development for FY 2021 plantings was discussed. • Lake & Wetland to provide updates on littoral plantings for the next meeting and a proposal for Lake 8. • The reports were reviewed. The record will reflect Mr. Ayres left the meeting. NINTH ORDER OF BUSINESS Manager's Report A. Approval of the Minutes of the January 7, 2021 Meeting On MOTION by Mr. Hubbard seconded by Mr. Soucie with all in favor the minutes of the January 7, 2021 meeting were approved. B. Acceptance of Financials • The Financial Report for the period ending December 31, 2020 was reviewed. On MOTION by Mr.Gagne seconded by Ms. Hunter with all in favor, the December 31, 2020 Financial Statements were accepted. 4 1 6 I 1A2 February 11, 2021 Heritage Bay CDD C. Field Manager's Reports • The Field Manager's Report for inspection conducted on January 21, 2021 was reviewed with the Board. D. Follow Up Items i. FEMA • The Board will wait to discuss next steps until the outcome of the Quarry CDD's application for FEMA funds. • An update was given on the current projects. • The Chairman will follow up on lake bank erosion for the Coach home area. TENTH ORDER OF BUSINESS Supervisors' Reports, Requests, and Comments • Mr. Soucie commented on Quarry machinery. The record will reflect Mr. Faircloth joined the meeting. ELEVENTH ORDER OF BUSINESS Chairman's Comments • Mr. Hubbard commented on the ARC Committee approval process. TWELFTH ORDER OF BUSINESS Audience Comments • None. THIRTEENTH ORDER OF BUSINESS Adjournment There being no further business, On MOTION by Mr. Hubbard seconded by Mr. Arcurie with all in favor the meeting was adjourned. tin Fai oth Edwin Hubbard ecretary Chairman 5 16l1Ak Agenda Page 2 Heritage Bay Community Development District Inframark,Infrastructure Management Services 210 N.University Drive,Suite 702,Coral Springs,Florida 33071 Telephone:954-603-0033 Fax: 954-345-1292 February 25, 2021 Board of Supervisors Heritage Bay Community Development District Dear Board Members: The regular meeting of the Board of Supervisors of the Heritage Bay Community Development District will be held on Thursday, March 4, 2021 at 9:00 a.m. in the Heritage Bay Clubhouse, 10154 Heritage Bay Blvd, Naples, Florida. Following is the advance agenda for the meeting: 1. Roll Call 2. Approval of Agenda 3. Public Comments on Agenda Items 4. Engineer's Report A. Clubhouse Dry Retention Modification Update B. Terrace VI Drain Line Repairs and CPH Oversight C. Veranda V—ARC Approvals&CSEI Contract D. Veranda VII& VIII—Status-Request for Gutter and Downspout Installation, Related Water Discharge Issues, &CPH Oversight E. Status-Analysis &Documentation of Rip Rap on South Lake Bank of 30A F. Status-Survey Markings for Interlocal Agreement Between Heritage Bay& Quarry CDDs 5. Attorney's Report A. Discussion of Attorney's Position on CDD E-Verify Participation 6. Lake &Wetland Management Monthly Inspections and Service Reports A. Status Update on Introduction of Carp in Lake 19 B. Littoral Planting Update i. Review Update on Littoral Status in Lakes Previously Planted i. Proposals for FY 2021 Plantings 7. Old Business A. Lake Tree Marking/Trimming Update B. Status Update on Summer 2021 Work on Lake Banks 1, 5, 18 &26 8. New Business A. FY 2022 Meeting Schedule 9. Manager's Report A. Approval of the Minutes of the February 11, 2021 Meeting B. Acceptance of Financials C. Discussion of FY 2022 Preliminary Budget 16I 1A $- Agenda Page 3 February 25,2021 Heritage Bay CDD D. Field Manager's Reports E. Notification of Agreements Per Spending Resolution 2020-2 i. CPH Boundary Marker Installation F. Follow Up Items i. FEMA 10. Supervisors' Reports, Requests, and Comments 11. Chairman's Comments 12. Audience Comments 13. Adjournment Supporting documents for agenda items are enclosed or will be distributed at the meeting. The balance of the agenda is routine in nature, and staff will give their reports at the meeting. If you have any questions,please contact me. Sincerely, Arta FM,eltf Justin Faircloth, District Manager 1 6 1 1 A10- aitu tithi � 4 4,10' PART OF THE USA TODAY NETWORK Published Daily Naples, FL 34110 HERITAGE BAY COMMUNI TY 210 N UNIVERSITY DR#702 CORAL SPRINGS, FL 33071-7320 NOTICE OF MEETING SCHEDULE HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT The Board of Supervisors of the Heritage Bay Community Devel- Affidavit of Publication opment District will hold their meetings for Fiscal Year STATE OF WISCONSIN 2020/2021 in the Heritage Bay Clubhouse, 10154 Heritage Bay Boulevard,Naples Florida,at 9:00 a.m.as follows: COUNTY OF BROWN October 1,2020 November 5,2020 Before the undersigned they serve as the authority, December 3,2020 January 7,2021 personally appeared said legal clerk who on oath says that February 11,2021 he/she serves as Legal Clerk of the Naples Daily News, a March 4,2021 dailynewspaper pCounty, April 1,2021 published at Naples, in Collier May 6,2021 Florida; distributed in Collier and Lee counties of Florida; June 3,2021 July 1,2021 that the attached copy of the advertising was published in August 5,2021 said newspaper on dates listed. Affiant further says that the September 2,2021 said Naples Daily News is a newspaper published at The meetings are open to the public and will be conducted in Naples, in said Collier County, Florida, and that the said accordance with the provision of Florida Law for Community newspaper has heretofore been continuously published in Development Districts. said Please note that due to the ongoing nature of the COVID-19 public health emergency, it may be necessary to hold the above Collier County, Florida; distributed in Collier and Lee referenced meetings utilizing communications media technolo- counties of Florida, each day and has been entered as 9Y in order to protect the health and safety of the public or held at an alternative physical location other than the location second class mail matter at the post office in Naples, in indicated above. To that end, anyone wishing to participate in such meetings should contact the District Manager's Office prior said Collier County, Florida, for a period of one year next preceding the first to each meeting to confirm the applicable meeting access P 9 publication of the attached copy of and/or location information. Additionally, interested parties may refer to the District's website for the latest information: advertisement; and affiant further says that he has neither aid nor romised an https://www-heritagebaycdd.com. P P y person, or corporation any discount, rebate, commission or refund for the purpose of securing There may be occasions when one or more Supervisors will par- tinued to a this advertisement for publication in the said newspaper. date,time,atelephone. d p acceeto be specified meetings on the ecord be nat the meet- ing. Published:09/16/2020 Any person requiring special accommodations at these meetings �--C — because of a disability or physical impairment should contact the District Manager's Office at least forty-eight (48)hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1, or 1.800-955- 8771 (Subscribed and sworn to before on September 16,2020: Di trict Ma)nager'ss Office8770 (Voice), for aid in contacting the Each person who decides to appeal any action taken at these meetings is advised that person will need a record of the pro- ceedings and that accordingly, the person may need to ensure .1)(J.A s._.Yvs uvr.4.L.u£i. - that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be Notary,State of WI,County of Brown based. -- Justin Faircloth TARA MONDLOCH District Manager Not Public: District 16,2020 #4368432 State of Wisconsin My commission expires August 6, 2021 Publication Cost:$427.00 Ad No:0004368432 Customer No: 1305454 PO#: #of Affidavits1 This is not an invoice 1611A3 Agenda Page 5 /Lake &Wetland MANAGEMENT HERITAGE BAY CDD LAKES INSPECTION REPORT February 22th, 2021 Mr. Justin Faircloth Heritage Bay Community Development District c/o Inframark Management Services Justin.faircloth@inframark.com 5911 Country Lakes Drive (239) 245-7118 Office Fort Myers, Florida 33905 (239) 245-7120 Fax Below are my observations noted on Monday, February 19th: Lake 1 - Algae at bank, will advise tech. 47* risrIt "fit ar ' k o- yyy 1{1 A io s 1 rrrr Lake 2 - Minimal algae at littorals, red ludwigia observed Lake 3 - No issues 16I1A - Agenda Page 6 Lake 4 - Submerged were treated, some coming back. Red ludwigia observed. js cy, t . y voi* * x4 ,1 a Pa it q n a .71 1K . f � Lake 5 - No issues. Littorals growing Lake 6 - No issues Lake 7 - Minimal algae at littorals. Lake 8 - Minimal algae at littorals. Lake 9 - Minimal algae at littorals. , � ; ..j 6I1Aj Agen a Page 7 Lake 10 - Minimal algae at north cove. Lake 11 - No issues. Lake 12 - Minimal algae at littorals. Lake 13 - No issues. Lake 14 - No issues. Lake 15 - No issues. Lake 16 - Dead pondweed, spike rush expanding. Lake 17 - Minimal algae. Lake 18 - Minimal algae. cry y ' a • ti is i R . Ogg *ft ! • 1' k � • Lake 19 - No issues, net is secure. Lake 20 - South side, pondweed coming back, will advise tech. h y 1 6 I ip1. Agenda Page 8 Lake 21 - Minimal TG Lake 22 - No issues. Lake 23 - No issues. Lake 24 - Torpedo grass noted, healthy littorals. Lake 25 - No issues. Lake 26 - Algae at cove and minimal by littorals, will advise tech. • - fi+ � iir St -...-..0.1 t ,, 1; „. ..;._,,::.,,-. iill..„ .. . - .1* r�. .- . 5% .. ' r , `f rem►, ".' . n'� ♦ x4 "� ,g,,' ,,.gip` x i'' ,�, r, ya; „,A ,` '•. `ft € .dot Lake 27 - Spatterdock coming back, will advise tech. Lake 28 - Hydrilla treated Lake 29 - Hydrilla treated Lake 30A - Dead pondweed noted. Lenb Ple 91 A i/ Lake 30B - Flat sedge observed, palm still not removed. Some pondweed under bridge coming back. Tech was advised. Conclusions: The weather has killed a lot of vegetation, mainly spike rush, and some of it is floating around the littorals, creating minimal algae. 161IAV Agenda Page 10 Lake Management-Wetland&Preserve Maintenance & Wet1and Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Plantiing 4%.*Lake ,,,.... . MANAGEMENT Water Testing&Analysis-Fountains&Aerators SERVICE&INSPECTION REPORT Customer: _ lc-- '/6' --- - Account#: /1 Z 4 Date: Off 0/ Technician: f1/4(Art- 41/2C:5 Territory: 4/ i "5 Weather Conditions: Fab,/ 0 LAKE MANAGEMENT // ❑ ALGAE CONTROL Lake(s)#: _ ASSES&EMERGE NTS Lake(s)#: SUBMERSED AQUATICS Lake(s)#: 4`, 3t 4 30'� �_ ` _- ❑ FLOATING PLANTS Lake(s)#: __ ❑ INSPECTION Lake(s)#: ❑ DEBRIS Lake(s)#: Water Test Results(Combined Average) Temperature °F ❑HIGH 0 AVERAGE 0 LOW Dissolved Oxygen ppm ❑HIGH 0 AVERAGE 0 LOW pH reading _ 0 ACID 0 NEUTRAL 0 BASE Water Clarity ❑GOOD 0 FAIR 0 POOR Water Level 0 HIGH ❑ AVERAGE ❑ LOW Q LITTORAL SHELF SHELVES#: ❑ SHORELINE GRASSES&EMERGENTS 0 HERBICIDE TREATMENT 0 DEBRIS REMOVAL ❑ FLOATING PLANTS ❑MANUAL REMOVAL ❑ INVASIVE/EXOTIC SPECIES 0 INSPECTION Q UPLAND/WETLAND PRESERVE PRESERVE(S) #: ❑INVASIVE I EXOTIC SPECIES 0 HERBICIDE TREATMENT ❑ DEBRIS REMOVAL ❑GRASSES 0 MANUAL REMOVAL ❑VINES 0 INSPECTION Q MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#:__ ❑INSECTICIDE TREATMENT 0 INSPECTION Comments:_ A i94Ff 7 F91' 2 o u.— -gc s/r�v1,J `i"e}O c449-.el ,pCM5F pu/ 7 — 2 O D sY5 Fo z /3"' 2 alai; FISH&WILDLIFE OBSERVATIONS FISH: OG� O)eam 0 Catfish s carp iiapia O Mos uitofish 0 Shad BIRDS: O ptor Duck 0)Nood Stork horebird °Ong bird O gbird 0 Vulture REPTILES: Alligator OSnake Turtle 0 Tortoise izard AMPHIBIANS 0 INSECTS INVASIVE/EXOTIC PLANTS NOTED °Brazilian pepper OMelaleuca OPennywort OBischofia 0Earieaf Acacia °Australian pine OShoebutton OSedge °Climbing Fern QAir potato OTorpedograss QAzolla OSalvinia ODowny rose myrtleOlava plum °Floating Hearts °Lantana OHydrilla OHygrophilia OWater Lettuce °Water hyacinth°Cattail °Primrose 0Alligatorweed NATIVE PLANTS NO O press O Myrtle OFL Pine °Red Maple 0Weriily °Mangrove °Pond Apple °Oak O ocoplum (rush OB a flag iris °Strangler fig (G frowhead OPi erelweed OThalia °Palms Golden Canna Spikerush O uttonbush 0 Eelgrass rdgrass O ahatcheegrass OSpatterdock 0 Ferns °Baby tears 0 Naiad Chara 0 Duckweed Bladderwort Pondweed 0 Slender spikerush 0 Bacopa Other species noted/comments: www.lakeandwetland.com Rev 07/13/14 Fonr u 398D 1611A '', Agenda Page 11 Lake Management-Wetland&Preserve Maintenance Lake st W e t 1 a n d Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Planting ,,, ,........ 010 MANAGEMENT Water Testing&Analysis-Fountains&Aerators SERVICE&INSPECTION REPORT /i4/ Customer: riatiP z P �tl/ Account#: ArZe Date: � Technician: /1/Zj U6C, TT Territory: A"1Z47 /' Weather Conditions: 56"; 4 /ivfiVey (LAKE MANAGEMENT If ❑.ALGAE CONTROL Lake(s)#: 0.lit RASSES&EMERGENTS Lake(s)#: 30—e Illef SUBMERSED AQUATICS Lake(s)#: 4 }?- /d j/t Z1 29 �OATING PLANTS Lake(s)#: 'INSPECTION Lake(s)#: 4U- t MIS ❑ DEBRIS Lake(s) #: Water Test Results(Combined Average) Temperature °F ❑HIGH ❑AVERAGE 0 LOW Dissolved Oxygen ppm 0 HIGH ❑AVERAGE 0 LOW pH reading ❑ACID ❑NEUTRAL ❑ BASE Water Clarity 0 GOOD 0 FAIR 0 POOR Water Level 0 HIGH ❑ AVERAGE 0 LOW 0 LITTORAL SHELF SHELVES#: ❑ SHORELINE GRASSES&EMERGENTS 0 HERBICIDE TREATMENT ❑ DEBRIS REMOVAL ❑ FLOATING PLANTS 0 MANUAL REMOVAL ❑ INVASIVE/EXOTIC SPECIES ❑ INSPECTION Q UPLAND I WETLAND PRESERVE PRESERVE(S)#: ❑INVASIVE/EXOTIC SPECIES ❑HERBICIDE TREATMENT ❑ DEBRIS REMOVAL ❑GRASSES ❑MANUAL REMOVAL ❑VINES ❑INSPECTION a MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#: ❑INSECTICIDE TREATMENT 0 INSPECTION Comments: /TIctri J 16, p2 Al,404.,e e f 6004/1-1-9, dQ T Li4twr 6m/ /env '9 tdw ?-- 2 o air 7o- - e z FISH&WILDLIFE OBSERVATIONS FISH: 0 Bass Ofam 0 Catfish O G�s carp Tila is 0 Mos uitofish 0 Shad BIRDS: 0 Raptor 'Duck 0 Wood Stork horebird O ding bird 0 ngbird 0 Vulture REPTILES: 0 Alligator °Snake 0 Turtle 0 Tortoise Lizard AMPHIBIANS 0 INSECTS INVASIVE/EXOTIC PLANTS NOTED °Brazilian pepper OMelaleuca OPinnywort OBischofia OEarleaf Acacia °Australian pine OShoebutton °Sedge °Climbing Fern Oipotato G.Torpedograss OAzolla OSalvinia ODowny rose myrtle()Java plum °Floating Hearts °Lantana ( ydrilla OHygrophilia °Water Lettuce °Water hyacinth()Cattail °Primrose OAlligatorweed NATIVE PLANTS NOTED °Cypress ),��x Myrtle OFL Pine °Red Maple Oylaterlily °Mangrove °Pond Apple °Oak OCocoplum C�$ulrush °Blue flag iris O Strangler fig ( whead OPickerelweed °Thalia °Palms ()Golden Canna Spikerush OButtonbush 0 Eelgrass Cordgrass OFakahatcheegrass OSpatterdock 0 Ferns °Baby tears 0 Naiad OChara °Duckweed 0 Bladderwort 0Pondweed O Slender spikerush0 Bacopa Other species noted I comments: www.lakeandwetland.com Rev 07/23/14 Form#398D 1 61 14 . Agenda Page 12 Lake Management-Wetland&Preserve Maintenance Lake &Wet 1 a n d Erosion Restoration-Mosquito&Midge Larvae Control Algae&Aquatic Weed Control -Native Planting ( � MANAGEMENT Water Testing&Analysis-Fountains&Aerators SERVICE& INSPECTION REPORT Customer: Jeri hAQ_ Tay_ Account#: Date:oZ—o 3-Z i, Technician: II J� 0 Territory: i "e Weather Conditions: Sun LAKE MANAGEMENT ❑ Aj..GAE CONTROL Lake(s)#: re-GRASSES&EMERGENTS Lake(s)#: 44 (q (Cc'f ❑ SUBMERSED AQUATICS Lake(s)#: ❑ FI,QATING PLANTS Lake(s)#: tt SPECTION Lake(s)#: 4- t. ❑ DEBRIS Lake(s)#: Water Test Results(Combined Average) Temperature °F 0 HIGH 0 AVERAGE 0 LOW Dissolved Oxygen ppm 0 HIGH 0 AVERAGE 0 LOW pH reading 0 ACID 0 NEUTRAL 0 BASE Water Clarity ❑GOOD 0 FAIR 0 POOR Water Level Cl HIGH 0 AVERAGE 0 LOW LITTO L SHELF SHELVES#: eSHORELINE GRASSES& EMERGENTS lagERBICIDE TREATMENT ❑ DEBRIS REMOVAL Er ATING PLANTS rn r •NUAL REMOVAL INVASIVE/EXOTIC SPECIES t:i INSPECTION 0 UPLAND/WETLAND PRESERVE PRESERVE(S)#: ❑INVASIVE/EXOTIC SPECIES 0 HERBICIDE TREATMENT 0 DEBRIS REMOVAL ❑GRASSES 0 MANUAL REMOVAL ❑VINES 0 INSPECTION a MOSQUITO/MIDGE LARVAE CONTROL LAKE(S)#: 0 INSECTICIDE TREATMENT ❑INSPECTION Comments: "rreia_{cti lei &1 Co r- k -r„Q-S FISH&WILDLIFE OBSERVATIONS FISH: 0 Bass ()Bream 0 Catfish 0 Grass carp 0 Tilapia 0 Mosquitofish 0 Shad BIRDS: O Raptor ()Duck O 1N. d Stork 0 Shorebird Q Weding bird Q Songbird O e REPTILES: 0 Alligator ()Snake dV-Trirtle 0 Tortoise C)Lizard 0 AMPHIBIANS 00 INSECTS INVASIVE/EXOTIC PLANTS NOTE) ()Brazilian pepper OMelaleuca e ..�Pelrrfwort OBischofia OEarleaf Acacia ()Australian ine Oshoebutton OSed9 ()Climbing Fern ()Air potato orpedograss 0Azolla OSalvinia ()Do se myrtle()Java plum ()Floating Hearts OLantana OHydrilla OHygrophilia OWater Lettuce OWater hyacinth attail ()Primrose 0Alligatorweed NATIVE PLANTS NOTED ()Cypress O Wax Myrtle OFL Pine ()Red Maple O Waterlil Mangrove ()Pond A OOa OCo um 0 Bulrush OBIue flag iris ()Strangler fig O� A�r' ead OPickerelweed OTh ' alms olden CannaOlgerush OButtonbush OEelgrass pCordgrass OFakahatcheegrass atterdock 0 Ferns °Baby tears 0 Naiad OChara ()Duckweed 0 Bladderwort 0Pondweed OSlenderspikerushOBacopa Other species noted/comments:___ www.lakeandwetland.com Rev07/23114 Form x3980 1 161 1A Agenda Page 15 NOTICE OF MEETING SCHEDULE HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT The Board of Supervisors of the Heritage Bay Community Development District will hold their meetings for Fiscal Year 2021/2022 in the Heritage Bay Clubhouse, 10154 Heritage Bay Boulevard,Naples Florida, at 9:00 a.m. as follows: October 7, 2021 November 4, 2021 December 2, 2021 January 6, 2022 February 3, 2022 March 3, 2022 April 7, 2022 May 5, 2022 June 2, 2022 July 7, 2022 August 4, 2022 September 1, 2022 The meetings are open to the public and will be conducted in accordance with the provision of Florida Law for Community Development Districts. There may be occasions when one or more Supervisors will participate by telephone. These meetings may be continued to a date, time, and place to be specified on the record at the meeting. Future meetings will be separately published at least seven days prior with the date, time and location. Additionally, interested parties may refer to the District's website for the latest information: https://www.heritagebaycdd.com. Any person requiring special accommodations at these meetings because of a disability or physical impairment should contact the District Manager's Office at least forty-eight (48) hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1, or 1-800-955-8771 (TTY) / 1-800-955-8770 (Voice), for aid in contacting the District Manager's Office. Each person who decides to appeal any action taken at these meetings is advised that person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based. Justin Faircloth District Manager 1 6 I 1 A ;. '' Agenda Page 24 HERITAGE BAY Community Development District Financial Report January 31, 2021 (Unaudited) Prepared by /6) INFRAMARK 16I1A - HERITAGE BAY Agenda Page 25 Community Development District Table of Contents FINANCIAL STATEMENTS Pages Balance Sheet-All Funds 1 Statement of Revenues, Expenditures and Changes in Fund Balance General Fund 2-3 Debt Service Fund 4 SUPPORTING SCHEDULES Trend Report 5-6 Non-Ad Valorem Special Assessments 7 Cash and Investment Report 8 Bank Reconciliation 9 Check Register and invoices 10- 19 1611Aj- Agenda Page 26 HERITAGE BAY Community Development District Financial Statements (Unaudited) January 31, 2021 1b11A3. HERITAGE BAY Agenda Page 27 Community Development District Governmental Funds Balance Sheet January 31, 2021 SERIES 2018 GENERAL DEBT SERVICE ACCOUNT DESCRIPTION FUND FUND TOTAL ASSETS Cash-Checking Account $ 2,142,190 $ - $ 2,142,190 Due From Other Funds - 1,508,019 1,508,019 Investments: Money Market Account 352,435 - 352,435 Reserve Fund - 390,400 390,400 Revenue Fund - 225,458 225,458 TOTAL ASSETS $ 2,494,625 $ 2,123,877 $ 4,618,502 LIABILITIES Accounts Payable $ 6,887 $ - $ 6,887 Due To Other Funds 1,508,019 - 1,508,019 TOTAL LIABILITIES 1,514,906 - 1,514,906 FUND BALANCES Restricted for: Debt Service - 2,123,877 2,123,877 Assigned to: Operating Reserves 95,441 - 95,441 Reserves-Erosion Control 14,687 - 14,687 Reserves-Lakes 156,250 - 156,250 Reserves-Stormwater System 21,765 - 21,765 Unassigned: 691,576 - 691,576 TOTAL FUND BALANCES $ 979,719 $ 2,123,877 $ 3,103,596 TOTAL LIABILITIES&FUND BALANCES $ 2,494,625 $ 2,123,877 $ 4,618,502 Page 1 HERITAGE BAY Agerla F6e 18 1 A ;A Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending January 31,2021 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ 2,000 $ 667 $ 1,330 $ 663 Interest-Tax Collector - - 178 178 Special Assmnts-Tax Collector 355,190 331,644 335,251 3,607 Specials Assmnts-Lakes 30A&30B 60,923 56,883 57,502 619 Special Assmnts-Reserves 31,250 29,178 29,496 318 Special Assmnts-Discounts (17,894) (16,709) (16,550) 159 TOTAL REVENUES 431,469 401,663 407,207 5,544 EXPENDITURES Administration P/R-Board of Supervisors 9,000 3,000 2,600 400 FICA Taxes 689 230 199 31 ProfServ-Arbitrage Rebate 600 600 - 600 ProfServ-Dissemination Agent 1,500 500 500 - ProfServ-Engineering 14,000 4,667 4,977 (310) ProfServ-Legal Services 13,000 4,333 1,258 3,075 ProfServ-Mgmt Consulting Sery 47,658 15,886 15,886 - ProfServ-Property Appraiser 6,710 6,710 210 6,500 ProfServ-Special Assessment 6,798 6,798 6,798 - ProfServ-Trustee Fees 5,157 5,157 6,235 (1,078) ProfServ-Web Site Maintenance 1,133 378 378 - Auditing Services 5,900 - - - Website Compliance 1,553 1,553 - 1,553 Postage and Freight 2,500 833 109 724 Insurance-General Liability 8,524 8,524 7,749 775 Printing and Binding 711 237 232 5 Legal Advertising 3,000 1,000 399 601 Misc-Bank Charges 100 100 - 100 Misc-Assessmnt Collection Cost 8,947 8,354 8,114 240 Misc-Web Hosting 2,000 667 2,113 (1,446) Office Supplies 100 100 - 100 Annual District Filing Fee 175 175 175 Total Administration 139,755 69,802 57,932 11,870 Field ProfServ-Field Management 13,215 4,405 4,742 (337) R&M-Contingency 42 42 - 42 Total Field 13,257 4,447 4,742 (295) Page 2 Agent Pk 21 1 A 3, HERITAGE BAY Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending January 31,2021 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) Lakes and Ponds Contracts-Lake and Wetland 71,200 23,733 22,400 1,333 Contracts-Water Analysis 9,861 3,287 - 3,287 Contracts-Water Quality 27,700 9,233 13,850 (4,617) Contracts-Lakes 30A&30B 24,000 8,000 8,000 - Contract-Sediment Testing 6,675 6,675 - 6,675 R&M-Aquascaping 3,500 1,167 - 1,167 R&M-Stormwater System 4,000 1,333 - 1,333 R&M-Lake Erosion 76,024 25,341 - 25,341 R&M-Contingency 5,792 1,931 1,650 281 Reserve-Lakes 31,250 31,250 - 31,250 Reserve-Stormwater System 18,455 18,455 - 18,455 Total Lakes and Ponds 278,457 130,405 45,900 84,505 TOTAL EXPENDITURES 431,469 204,654 108,574 96,080 Excess(deficiency)of revenues Over(under)expenditures - 197,009 298,633 101,624 Net change in fund balance $ - $ 197,009 $ 298,633 $ 101,624 FUND BALANCE,BEGINNING(OCT 1,2020) 681,739 681,739 681,739 FUND BALANCE,ENDING $ 681,739 $ 878,748 $ 980,372 Page 3 1611A3 HERITAGE BAY Agenda Page 30 Community Development District Series 2018 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending January 31,2021 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ 3,000 $ 1,000 $ 16 $ (984) Special Assmnts-Tax Collector 1,689,155 1,577,175 1,594,329 17,154 Special Assmnts-Discounts (67,566) (63,087) (62,488) 599 TOTAL REVENUES 1,624,589 1,515,088 1,531,857 16,769 EXPENDITURES Administration ProfServ-Property Appraiser 25,337 25,337 598 24,739 Misc-Assessmnt Collection Cost 33,784 31,831 30,637 _ 1,194 Total Administration 59,121 57,168 31,235 25,933 Debt Service Principal Debt Retirement 1,030,000 - - - Principal Prepayments - - 5,000 (5,000) Interest Expense 535,031 267,516 267,441 75 Total Debt Service 1,565,031 267,516 272,441 (4,925) TOTAL EXPENDITURES 1,624,152 324,684 303,676 21,008 Excess(deficiency)of revenues Over(under)expenditures 437 1,190,404 1,228,181 37,777 OTHER FINANCING SOURCES(USES) Contribution to(Use of)Fund Balance 437 - - - TOTAL FINANCING SOURCES(USES) 437 - - - Net change in fund balance $ 437 $ 1,190,404 $ 1,228,181 $ 37,777 FUND BALANCE,BEGINNING(OCT 1,2020) 895,696 895,696 895,696 FUND BALANCE,ENDING $ 896,133 $ 2,086,100 $ 2,123,877 Page 4 16I1A ' Agenda Page 31 HERITAGE BAY Community Development District Supporting Schedules January 31, 2021 16I1Ai- c. 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O Z O C O cof� U) a) Q EA 69 LO LO (fl O 1- LO O C N LO COcoN CO O 7a O d CO- 05 O) co- Ln LO N 00 0E > -1- coCO O 00 Z.1- U_ Q L)a) N - 6 L iii N > Q Z a) a F— CH- N E» 69 uJ C 81,D U(1)) a N , 0 0 0 0 0 0 LLl 0 E N > E O N N N N N N N J _1 , 0- CD CD 0 Ca CO CO N- N- - O N N _IQ d LO/) O O N N 0 0 0 0 m CN ▪ > Q Q O o ~ co W CIN 0 Q . m c o r E a lapce a) Z 0 1 61 1AI- HERITAGE BAY Agenda Page 35 Community Development District Cash and Investment Balances January 31, 2021 ACCOUNT NAME BANK NAME MATURITY YIELD BALANCE GENERAL FUND Operating Checking Valley National Bank N/A 0.25% $ 2,142,190 Money Market Account BankUnited N/A 0.30% 352,435 Subtotal General Fund 2,494,625 DEBT SERVICE FUND Series 2018 Reserve Fund US Bank N/A 0.2% 390,400 Series 2018 Revenue Fund US Bank N/A 0.2% 225,458 Subtotal Debt Service 615,859 (1) Total $ 3,110,483 Note (1) Invested in First American Obligation Fund Report Date:2/16/2021 Page 8 Heritage Bay CDD Agenda Page 36 I 1 A it/ Bank Reconciliation Bank Account No. 9727 Valley National Bank GF Statement No. 1/21 Statement Date 1/31/2021 G/L Balance(LCY) 2,142,190.42 Statement Balance 2,142,190.42 G/L Balance 2,142,190.42 Outstanding Deposits 0.00 Positive Adjustments 0.00 Subtotal 2,142,190.42 Subtotal 2,142,190.42 Outstanding Checks 0.00 Negative Adjustments 0.00 Differences 0.00 Ending G/L Balance 2,142,190.42 Ending Balance 2,142,190.42 Difference 0.00 Posting Document Document Cleared Date Type No. Description Amount Amount Difference Page 9 16I1A ;' 0 0 0 0„a 0(O O N O M O O O O O O CO O O O O O t 0 C N-O n o 40.N O,-0 M.O O O CD CD In 0 0 N I- r r n CO O O -O 7 0 V CSv-v-In M N 4 U6 U6 N O o V CSO N 4 V 4 V aD O co W,-CON N-O N 69 69 O)N CO 0)0 In O C) CO CO CO CO CO CO I, E a �0�. 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Northern Trust Bank Building Agenda Page 38 4001 Tamiami Trail North, Suite 300 Naples, Florida 34103-3556 Telephone: (239) 435-3535 Fax: (239) 435-1218 Page: 1 Heritage Bay CDD December 29, 2020 c/o Inframark File No: 6176-001 M 210 N. University Dr. Suite 702 Statement No: 70 Coral Springs FL 33071 Attn: Justin Faircloth Gen Rep SENT VIA EMAIL TO: inframark@avidbill.com Previous Balance $607.50 Fees Hours 11/02/2020 GLU Review and respond to email correspondence from Chairman on meeting 0.10 32.50 11/05/2020 GLU Review agenda and prepare for Board of Supervisors meeting;Attendance at Board of Supervisors meeting 2.50 812.50 11/30/2020 GLU Brief review of email and back-up from manager on FEMA denial of appeal 0.20 65.00 Professional Fees through 12/29/2020 2.80 910.00 Total Current Work 910.00 Payments Total Payments Through 12/29/2020 -607.50 Balance Due (includes previous balance, if any) $910.00 Page 11 o ! 1AZ, Agenda Page 39 Invoice @pa? 500 VVest Fulton Street Sanford,FL 32771 407-322-6841 Justin Faircloth December 16,2020 Heritage Bay Community Development District Project No: H13614 C/O INFRAMARK Invoice No: 123028 210 N. University Drive Suite 702 Coral Springs, FL 33071 Stormwater Lakes Banks Assessment 10154 Hertiage Bay Blvd Naples, FL 34120 Collier Professional Services through November 22,2020 Fee Percent Previous Fee Current Fee Billing Phase Fee Complete Billing Billing Field Inspection 6,500.00 100.00 6,500.00 0.00 Total Fee 6,500.00 6,500.00 0.00 Total Fee 0.00 Unit Billing Color Copies 11X17 75.95 Color Copies 8.5X11 8.75 Total Units 84.70 84.70 Total this Invoice $84.70 Page 12 61 Agenda Page 40 U n b i l led Detail Wednesday,December 16,2020 11:05:11 AM CPH,Inc. As of 11/22/2020 Hours! Billing Billing Labor Description Units Rate Amount Category Project:H13614 Heritage Bay Strmwtr Lk Bank Assmnt Napl Project Number:H13614 Heritage Bay Strmwtr Lk Bank Assmnt Napl Phase Number:XXP Expenses Units: B 11/8/2020 000000000283 Ft.Myers B:35 217.0 11X17CLR @ 217.00 .350 75.950 0.35 B 11/8/2020 000000000283 Ft.Myers B:25 35.0 8.5X11 CLR@ 0.25 35.00 .250 8.750 Total Units 252.00 84.700 Page 13 16l 1A3 Agenda Page 41 Invoice @PgD4 500 West Fulton Street Sanford,FL 32771 407-322-6841 Justin Faircloth December 16,2020 Heritage Bay Community Development District Project No: S28902 C/O INFRAMARK Invoice No: 123032 210 N. University Drive Suite 702 Coral Springs, FL 33071 Meetings&Miscellaneous Services at 10154 Heritage Bay Blvd. Naples, FL-Collier County Professional Services through November 22,2020 Professional Personnel Hours Rate Amount Project Manager 7.00 160.00 1,120.00 7.00 1,120.00 Total Labor 1,120.00 Total this Invoice $1,120.00 Billings to Date Current Prior Total Labor 1,120.00 44,031.25 45,151.25 Expense 0.00 331.57 331.57 Unit 0.00 990.03 990.03 Totals 1,120.00 45,352.85 46,472.85 Page 14 1 6 1 1 A 3. Agenda Page 42 Project S28902 INFRAMARK/Heritage Bay; Meeting&Misc Invoice 123032 Billing Backup Wednesday, December 16,2020 CPH, Inc. Invoice 123032 Dated 12/16/2020 1:30:03 PM Professional Personnel Hours Rate Amount Project Manager Lopez,Albert 11/3/2020 1.50 160.00 240.00 Lake assessment Binders preparation, maintenence facility permit research Lopez,Albert 11/5/2020 3.50 160.00 560.00 HBCDD board meeting Lopez, Albert 11/10/2020 1.00 160.00 160.00 Project coordination Lopez,Albert 11/12/2020 1.00 160.00 160.00 Project coordination 7.00 1,120.00 Total Labor 1,120.00 Total this Project $1,120.00 Total this Report $1,120.00 Page 15 16 { 1Aj Agenda Page 43 Invoice cpLi 500 West Fulton Street Sanford,FL 32771 407-322-6841 Justin Faircloth December 15,2020 Heritage Bay Community Development District Project No: H13610.2 CIO INFRAMARK Invoice No: 122674 210 N. University Drive Suite 702 Coral Springs, FL 33071 October 2020&April 2021 Water Quality Monitoring for 29 lakes/Stormwater management ponds within the community development district Boundary. Phase ENV-1 October 2020 Water Quality Monitoring Event and Report CPH sampled salinity, conductivity,temperature, dissolved oxygen, pH for one(1)event within 29 lakes within the development boundaries.CPH collected one(1)sample for each parameter to include Chlorophyll a,Total Nitrogen and Total Phosphorus within 29 lakes. CPH prepared a report of results discussing the monitoring event and laboratory results and provided the report to the Client Professional Services through November 22,2020 Fee Percent Previous Fee Current Fee Billing Phase Fee Complete Billing Billing October 2020 Water 13,850.00 100.00 0.00 13,850.00 Quality Monitoring April 2021 Water Quality 13,850.00 0.00 0.00 0.00 Monitiring Total Fee 27,700.00 0.00 13,850.00 Total Fee 13,850.00 Total this Invoice $13,850.00 Page 16 16I 1A1 Agenda Page 44 Invoice @p1 500 West Fulton Street Sanford,FL 32771 407-322-6841 Justin Faircloth January 8, 2021 Heritage Bay Community Development District Project No: S28902 C/O INFRAMARK Invoice No: 123108 210 N. University Drive Suite 702 Coral Springs, FL 33071 Meetings&Miscellaneous Services at 10154 Heritage Bay Blvd. Naples, FL-Collier County Professional Services through December 20,2020 Professional Personnel Hours Rate Amount Project Manager 3.00 160.00 480.00 3.00 480.00 Total Labor 480.00 Unit Billing 2020 Mileage 34.50 Total Units 34.50 34.50 Total this Invoice $514.50 Outstanding Invoices Number Date Balance 123032 12/16/2020 1,120.00 Total 1,120.00 Billings to Date Current Prior Total Labor 480.00 45,151.25 45,631.25 Expense 0.00 331.57 331.57 Unit 34.50 990.03 1,024.53 Totals 514.50 46,472.85 46,987.35 Page 17 16I1A3 Agenda Page 45 Project S28902 INFRAMARK/Heritage Bay; Meeting&Misc Invoice 123108 Billing Backup Friday, January 8,2021 CPH, Inc. Invoice 123108 Dated 1/8/2021 8:47:07 AM Professional Personnel Hours Rate Amount Project Manager Lopez,Albert 12/8/2020 3.00 160.00 480.00 on site meeting with Peter Faresee and Ed Hubbard to discuss drainage improvements 3.00 480.00 Total Labor 480.00 Unit Billing 2020 Mileage 34.50 Total Units 34.50 34.50 Total this Project $514.50 Total this Report $514.50 Page 18 16I 1A3 Agenda Page 46 Unbilled Detail Friday,January 8,2021 8:39:51 AM CPH,Inc. As of 12/20/2020 Hours/ Billing Billing Labor Description Units Rate Amount Category Project S28902 INFRAMARK/Heritage Bay;Meeting&Misc Project Number:S28902 INFRAMARK/Heritage Bay;Meeting&Misc Phase Number:XXP Expenses Units: B 11/5/2020 000000000007 A.Lopez-Heritage Bay board meeting 80.00 .575 46.000 B:75 80.0 20Mileage©0.575 B 12/8/2020 000000000433 J.Allen B:75 60.0 20Miteage©0.575 60.00 .575 34.500 Total Units 140.00 80.500 Page 19 Agenda Pie 6 I 1 A HERITAGE BAY Community Development District Annual Operating and Debt Service Budget Fiscal Year 2022 Proposed Budget (Meeting 3/4/21) Prepared by: INFRAMARK 1 6 I 1AL HERITAGE BAY Agenda Page 49 Community Development District Table of Contents Page# OPERATING BUDGET General Fund Summary of Revenues, Expenditures and Changes in Fund Balance 1 -2 Exhibit A-Allocation of Fund Balances 3 Budget Narrative 4-7 DEBT SERVICE BUDGET Series 2018 Summary of Revenues, Expenditures and Changes in Fund Balances 8 Amortization Schedule 9 Budget Narrative 10 SUPPORTING BUDGET SCHEDULES 2021-2022 Non-Ad Valorem Assessment Summary 11 1611A2 Agenda Page 50 HERITAGE BAY Community Development District Budget Overview Fiscal Year 2022 1bI1A Agenda Page 51 HERITAGE BAY Community Development District Operating Budget Fiscal Year 2022 Agenda Page 52 o l 1 "' 2 HERITAGE BAY Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU FEB- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 JAN-2021 SEP-2021 FY 2021 FY 2022 REVENUES Interest-Investments $ 7,367 $ 3,848 $ 2,000 $ 1,330 $ 1,110 $ 2,440 $ 2,450 Hurricane Irma FEMA Refund 44,179 32,714 - - - Interest-Tax Collector 1,087 1,166 - 178 - 178 - Special Assmnts-Tax Collector 355,190 355,190 355,190 335,251 19,939 355,190 355,190 Special Assmnts-Lakes 30A&30B 60,923 60,922 60,923 57,502 3,421 60,923 60,923 Special Assmnts-Reserves 31,250 31,250 31,250 29,496 1,754 31,250 31,250 Special Assmnts-Discounts (16,333) (16,269) (17,894) (16,550) (591) (17,141) (17,895) Other Miscellaneous Revenue 41,800 115,152 - - - - - TOTAL REVENUES 525,463 583,973 431,469 407,207 25,633 432,840 431,918 EXPENDITURES Administrative P/R-Board of Supervisors 8,000 6,600 9,000 2,600 6,400 9,000 9,000 FICA Taxes 612 505 689 199 490 689 689 ProfServ-Arbitrage Rebate - - 600 - 600 600 600 ProfServ-Dissemination Agent 1,500 1,500 1,500 500 1,000 1,500 1,500 ProfServ-Engineering 27,411 9,937 14,000 4,977 13,697 18,674 14,000 ProfServ-Legal Services 28,676 28,714 13,000 1,258 2,516 3,774 11,500 ProfServ-Mgmt Consulting Sery 44,972 46,270 47,658 15,886 31,772 47,658 49,088 ProfServ-Property Appraiser 6,710 1,726 6,710 210 - 210 6,710 ProfServ-Special Assessment 6,200 6,600 6,798 6,798 - 6,798 7,002 ProfServ-Trustee Fees - 6,059 5,157 6,235 1,000 7,235 8,235 ProfServ-Web Site Maintenance 1,000 1,100 1,133 378 755 1,133 1,167 Auditing Services 5,800 5,900 5,900 - 5,900 5,900 4,900 Website Compliance - - 1,553 388 1,164 1,553 1,553 Postage and Freight 739 473 2,500 109 497 606 2,500 Insurance-General Liability 7,750 7,749 8,524 7,749 - 7,749 8,524 Printing and Binding 1,911 21 711 232 474 706 711 Legal Advertising 1,806 3,388 3,000 399 2,198 2,597 2,000 Misc-Bank Charges 1 - 100 - 67 67 100 Misc-Assessmnt Collection Cost 4,174 6,659 8,947 8,114 434 8,548 8,947 Misc-Web Hosting 1,612 3,568 2,000 1,725 275 2,000 2,000 Office Supplies - - 100 - 67 67 100 Annual District Filing Fee 175 175 175 175 - 175 175 Total Administrative 149,049 136,944 139,755 57,932 69,306 127,238 141,000 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 1 IA3- Agenda Page 53 HERITAGE BAY Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU FEB- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 JAN-2021 SEP-2021 FY 2021 FY 2022 Field ProfServ-Field Management 20,688 18,174 13,215 4,742 8,473 13,215 13,611 R&M-Contingency - - 42 - 28 28 42 Capital Outlay 95,675 - - - - Total Field 116,363 18,174 13,257 4,742 8,501 13,243 13,653 Lakes and Ponds Contracts-Lake and Wetland 67,200 67,200 71,200 22,400 48,800 71,200 71,200 Contracts-Water Analysis 5,600 - 9,861 - 9,861 9,861 9,861 Contracts-Water Quality Monitoring 27,700 27,700 27,700 13,850 13,850 27,700 27,700 Contracts-Lakes 30A&30B 18,000 24,000 24,000 8,000 16,000 24,000 24,000 Contracts-Sediment Testing 6,675 - 6,675 - 6,675 6,675 6,675 R&M-Aquascaping 2,559 4,703 3,500 - 2,333 2,333 3,500 R&M-Stormwater System 4,000 50 4,000 - 4,000 4,000 4,000 R&M-Lake Erosion 575 132,475 76,024 - - - 76,024 R&M-Contingency 5,250 3,000 5,792 1,650 3,300 4,950 4,600 Improvement-Lake Bank Restoration 1,200 - - - - - - Reserve-Lakes - - 31,250 - - - 31,250 Reserve-Stormwater System 33,600 - 18,455 - - - 18,455 Total Lakes and Ponds 172,359 259,128 278,457 45,900 104,819 150,719 277,265 TOTAL EXPENDITURES 437,771 414,246 431,469 108,574 182,626 291,200 431,919 Excess(deficiency)of revenues Over(under)expenditures 87,692 169,727 - 298,633 (156,993) 141,640 - OTHER FINANCING SOURCES(USES) Interfund Transfer-In - 4,465 - - - - - TOTAL OTHER SOURCES(USES) - 4,465 - - - - - Net change in fund balance 87,692 174,192 - 298,633 (156,993) 141,640 - FUND BALANCE,BEGINNING 419,886 $ 507,578 681,739 681,739 - 681,739 823,379 FUND BALANCE, ENDING $ 507,578 $ 681,739 $ 681,739 $ 980,372 $ (156,993) $ 823,379 $ 823,379 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 2 1 6 I 1A3. HERITAGE BAY Agenda Page 54 Community Development District Exhibit"A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance-Fiscal Year 2022 $ 823,379 Net Change in Fund Balance-Fiscal Year 2022 - Reserves-Fiscal Year 2022 Additions 49,705 Total Funds Available(Estimated)-9/30/2022 873,084 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve-First Quarter Operating Capital 95,553 (1) Reserves-Erosion Control (Prior years) 14,687 Reserves-Lakes(Prior Years) 156,250 Reserves-Lakes(FY21) 31,250 Reserves-Lakes(FY22) 31,250 218,750 Reserves-Stormwater System(Prior Years) 21,765 Reserves-Stormwater System(FY21) 18,455 Reserves-Stormwater System(FY22) 18,455 58,675 Subtotal 387,665 Total Allocation of Available Funds 387,665 Total Unassigned(undesignated)Cash $ 485,419 Notes (1)Represents approximately 3 months of operating expenditures Annual Operating and Debt Service Budget Fiscal Year 2022 Page 3 6I1A3- Agenda Page 55 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2022 REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their money market accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method)within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Lakes 30A&30B The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method)within the District in order to pay for the repair of Lakes 30A&30B and any impending debt associated with making repairs. Special Assessments-Reserves The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method)within the District in order re-establish reserves which were depleted due to the District having to address numerous lake bank erosion issues. Special Assessments-Discounts Per Section 197.162 and Section 197.3632 of the Florida Statutes, discounts are allowed for early payments of assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. The budgeted amount for the fiscal year is calculated at 4%of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative. P/R-Board of Supervisors Chapter 190 of the Florida Statutes allows for members of the Board of Supervisors to be compensated $200 per meeting at which they are in attendance. The amount for the Fiscal Year is based upon all supervisors attending all meetings. FICA Taxes are calculated at 7.65%of gross payroll. Professional Services-Arbitrage Rebate The District contracted with an independent professional firm to annually calculate the District's Arbitrage Rebate Liability on its bonds Professional Services-Dissemination Agent This line item is to cover dissemination services as required. Services are provided by Inframark. Professional Services-Engineering The District's engineer provides general engineering services to the District, i.e. attendance and preparation for board meetings when requested, review of invoices, and other specifically requested assignments. Professional Services-Legal Services The District's attorney provides general legal services to the District, i.e., attendance and preparation for Board meetings, review of contracts, agreements, resolutions and other research as directed or requested by the BOS District Manager. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 4 l6I1q I. Agenda Page 56 HERITAGE BAY Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES Administrative (continued) Professional Services-Management Consulting Services The District receives Management, Accounting and Administrative services as part of a Management Agreement with Inframark Infrastructure Management Services. Inframark manages all of the District's financial activities such as accounts payable,financial statements, auditing and budgeting in accordance with the management contract in effect. Professional Services-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service which is based upon 1.5% of the anticipated Non-Ad Valorem assessment collections. Professional Services-Special Assessment This is the Administrative fees to prepare the District's special assessment roll. Professional Services-Trustee Fees The District pays US Bank an annual fee for trustee services on the Series 2018 Special Assessment Bond. The budgeted amount for the fiscal year is based on standard fees charged plus any out-of-pocket expenses. Professional Services-Web Site Maintenance The cost of web hosting and regular maintenance of the District's website by Inframark Infrastructure Management Services. Auditing Services The District is required to conduct an annual audit of its financial records by an Independent Certified Public Accounting Firm. The budgeted amount for the fiscal year is based on contracted fees from an existing engagement letter. Website Compliance Inframark Infrastructure Management Services oversees the District's email accounts and provides assistance to Campus Suite regarding the website as necessary. Postage and Freight Actual postage used for District mailings including agenda packages,vendor checks and other correspondence. Insurance-General Liability The District's General Liability& Public Officials Liability Insurance policy is with Public Risk Insurance Agency, Inc. They specialize in providing governmental insurance coverage.The budgeted amount projects a 10% increase in the premium. Printing and Binding Copies used in the preparation of agenda packages, required mailings, and other special projects. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 5 1 6I 1A '3 HERITAGE BAY Agenda Page 57 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES (continued) Administrative (continued) Legal Advertising The District is required to advertise various notices for Board meetings and other public hearings in a newspaper of general circulation. Miscellaneous-Bank Charges In the rare event of bank service charges from operating or money market accounts, the cost will be assigned here. Miscellaneous-Assessment Collection Costs The District reimburses the Collier County Tax Collector for necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to,those costs associated with personnel,forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The assessment collection cost is based on a maximum of 2%of the anticipated assessment collections. Miscellaneous-Web Hosting The District incurs the cost of owning the Heritage Bay CDD web domain. Office Supplies Supplies used in the preparation and binding of agenda packages, required mailings, and other special projects. Annual District Filing Fee The District is required to pay an annual fee of$175 to the Department of Economic Opportunity Division of Community Development. Field Professional Services-Field Management Field Management Services for the District is performed by Inframark Infrastructure Management Services. This includes the regular inspection of all District assets and contractor performance monitoring. A monthly report is provided for the Board's review to allow for their consideration of issues and action to consider. R&M-Contingency All other field expenses that do not fall into the category described above will be expensed to contingency. Lakes & Ponds Contracts-Lake and Wetland A contract was negotiated with Lake&Wetland Management for monthly lake maintenance of the District's lakes and littoral shelf maintenance which includes approximately 14.52 acres. Fluorodine Treatment was added May 2015. Contracts-Water Analysis A contract was negotiated with CPH for bathymetric to be performed on Lakes. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 6 6I 1A HERITAGE BAY Agenda Page 58 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES (continued) Lakes & Ponds (continued) Contracts-Water Quality Monitoring A contract was negotiated with CPH for testing of the lakes and water quality monitoring. Contracts-Lakes 30A&30B A contract was negotiated with Lake&Wetland Management for monthly maintenance of lakes 30A&30B. Contracts-Sediment Testing Contract with CPH to do sediment testing in the District lakes. R&M-Aquascapinq This is for any repair and maintenance expenses pertaining to the District's lakes that are not covered in the contract. R&M-Stormwater System This is for any repair and maintenance expenses pertaining to the stormwater system. R&M-Lake Erosion This is for any repair and maintenance expenses pertaining to erosion control that are not covered in the contract. R&M-Contingency All other lake expenses that do not fall into the previous repair and maintenance categories will be expensed to contingency. Reserve-Lakes Lake improvement expenses that are projected to occur in the future are appropriated with this account. Reserve-Stormwater System Stormwater system/drainage expenses that are projected to occur in the future are appropriated with this account. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 7 1 11Aj Agenda Page 59 HERITAGE BAY Community Development District Debt Service Budget Fiscal Year 2022 16I1A7. HERITAGE BAY Agenda Page 60 Community Development District Series 2018 Debt Service Fund • Summary of Revenues,Expenditures and Changes in Fund Balances Fiscal Year 2022 Proposed Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU FEB- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 JAN-2021 SEP-2021 FY 2021 FY 2022 REVENUES Interest-Investments $ 17,479 $ 6,613 $ 3,000 $ 16 $ 532 $ 548 $ 1,000 SpecialAssmnts-TaxCollector 1,689,155 1,689,157 1,689,155 1,594,329 94,826 1,689,155 1,689,155 Special Assmnts-Discounts (61,668) (61,429) (67,566) (62,488) (3,793) (67,566) (67,566) I TOTAL REVENUES 1,644,966 1,634,341 1,624,589 1,531,857 91,565 1,622,137 1,622,589 EXPENDITURES Administrative ProfServ-Property Appraiser 19,629 6,493 25,337 598 - 598 25,337 ProfServ-Trustee Fees 3,189 - _ _ - Misc-Assessmnt Collection Cost 15,757 25,142 33,784 30,637 1,897 32,534 33,783 Total Administrative 38,575 31,635 59,121 31,235 1,897 33,132 59,120 Debt Service Principal Debt Retirement 990,000 1,005,000 1,030,000 - 1,030,000 1,030,000 1,055,000 Principal Prepayments 5,000 10,000 - 5,000 - 5,000 - Interest Expense 597,305 556,463 535,031 267,441 267,441 534,882 511,706 Total Debt Service 1,592,305 1,571,463 1,565,031 272,441 1,297,441 1,569,882 1,566,706 I TOTAL EXPENDITURES 1,630,880 1,603,098 1,624,152 303,676 1,299,337 1,603,013 1,625,827 Excess(deficiency)of revenues Over(under)expenditures 14,086 31,243 437 1,228,181 (1,207,772) 19,124 (3,238) OTHER FINANCING SOURCES(USES) Interfund Transfer-In _ 1 - - - Operating Transfers-Out (600) (4,465) - - _ - Contribution to(Use of)Fund Balance - - 437 - - - (3,238) I TOTAL OTHER SOURCES(USES) (600) (4,464) 437 - - - (3,238) Net change in fund balance 13,486 26,779 437 1,228,181 (1,207,772) 19,124 (3,238) FUND BALANCE,BEGINNING 855,431 868,917 895,696 895,696 - 895,696 914,820 FUND BALANCE,ENDING $ 868,917 $ 895,696 $ 896,133 $ 2,123,877 $ (1,207,772) $ 914,820 $ 911,582 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 8 16 HERITAGE BAY Agenda Page 61 f Community Development District Capital Improvement Revenue Refunding Bonds,Series 2018A Debt Service Schedule(After 05/01/2020 Payment Date) Outstanding Par Principal Interest Total Annual 11/1/2021 16,830,000 255,853 255,853 1,553,294 5/1/2022 16,830,000 1,055,000 255,853 1,310,853 11/1/2022 15,775,000 242,666 242,666 1,553,519 5/1/2023 15,775,000 1,090,000 242,666 1,332,666 11/1/2023 14,685,000 228,359 228,359 1,561,025 5/1/2024 14,685,000 1,120,000 228,359 1,348,359 11/1/2024 13,565,000 213,659 213,659 1,562,019 5/1/2025 13,565,000 1,150,000 213,659 1,363,659 11/1/2025 12,415,000 197,847 197,847 1,561,506 5/1/2026 12,415,000 1,180,000 197,847 1,377,847 11/1/2026 11,235,000 180,147 180,147 1,557,994 5/1/2027 11,235,000 1,220,000 180,147 1,400,147 11/1/2027 10,015,000 161,847 161,847 1,561,994 5/1/2028 10,015,000 1,250,000 161,847 1,411,847 11/1/2028 8,765,000 143,097 143,097 1,554,944 5/1/2029 8,765,000 1,285,000 143,097 1,428,097 11/1/2029 7,480,000 123,822 123,822 1,551,919 5/1/2030 7,480,000 965,000 123,822 1,088 822 11/1/2030 6,515,000 108,744 108,744 1,197,566 5/1/2031 6,515,000 1,000,000 108,744 1,108,744 11/1/2031 5,515,000 92,494 92,494 1,201,238 5/1/2032 5,515,000 1,030,000 92,494 1,122,494 11/1/2032 4,485,000 75,756 75,756 1,198,250 5/1/2033 4,485,000 1,065,000 75,756 1,140,756 11/1/2033 3,420,000 58,450 58,450 1,199,206 5/1/2034 3,420,000 1,100,000 58,450 1,158,450 11/1/2034 2,320,000 39,888 39,888 1,198,338 5/1/2035 2,320,000 1,140,000 39,888 1,179,888 11/1/2035 1,180,000 20,650 20,650 1,200,538 5/1/2036 1,180,000 1,180,000 20,650 1,200,650 16,830,000 4,286,556 21,116,556 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 9 161143, HERITAGE BAY Agenda Page 62 Community Development District Debt Service Fund Budget Narrative Fiscal Year 2022 REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their trust accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method)within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Discounts Per Section 197.162 and Section 197.3632 of the Florida Statutes, discounts are allowed for early payments of assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. The budgeted amount for the fiscal year is calculated at 4%of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative Professional Services-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property.The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. The property appraiser cost is based upon 1.5% of the anticipated Non-Ad Valorem assessment collections. Miscellaneous-Assessment Collection Costs The District reimburses the Collier County Tax Collector for necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The assessment collection cost is based on a maximum of 2%of the anticipated assessment collections. Debt Service Principal Debt Retirement The District pays regular principal payments annually in order to pay down/retire the debt. Interest Expense The District makes semi-annual interest payments on the outstanding debt. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 10 1611A , Agenda Page 63 HERITAGE BAY Community Development District Supporting Budget Schedules Fiscal Year 2022 16I1A HERITAGE BAY Agenda Page 64 Community Development District All Funds Comparison of Assessment Rates Fiscal Year 2022 vs. Fiscal Year 2021 General Fund Series 2018 Debt Service Total Assessments per Unit Units FY 2022 FY 2021 Percent FY 2022 FY 2021 Percent FY 2022 FY 2021 Percent Product Change Change Change Executive $357.89 $357.89 0% $1,928.85 $1,928.85 0% °$2,286.74 $2,286.74 0% 139 Classics $357.89 $357.89 0% $3,050.09 $3,050.09 0% $3,407.98 $3,407.98 0% 95 Classics II $357.89 $357.89 0% $3,294.57 $3,294.57 0% $3,652.46 $3,652.46 0% 18 Coach $357.89 $357.89 0% $1,361.54 $1,361.54 0% $1,719.43 $1,719.43 0% 184 2 Story $357.89 $357.89 0% $1,134.62 $1,134.62 0% $1,492.51 $1,492.51 0% 364 4 Story $357.89 $357.89 0% $907.69 $907.69 0% $1,265.58 $1,265.58 0% 450 1250 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 11 6 I 1 A 3 Agenda Page 66 INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES Heritage Bay CDD 2/23/21 — Field Management Report pc , - - - - - . - iivitinto,. .— .-- . , , , ,,,,,... , ''''''.:4*;',:-::: 4 ' , .''.:..:1: • .., ..' 1''...1:-.,' . .,., - . :," ',. : • ' .:,.: , tl „\F r : F �fi t , , 4. ' .N 3 ' . a' , :74, ' Corie • y. ''„ .II a ... f ....„ .„ .. 1 HERITAGE BAY r • .it , . '• - : % ^ `` ,I ' x jf GOLF& C)( 41Rl l B • - - -,. ) - .*�la."Jrrr. a ; '" ,.W.-,...a�-..r f t�k •'_4,V:".rr" s '^1 - ,A A. y� +' 4S :'_' ,.4 • "�' `h .�. IfIIJe v ..� ... i ... ,... ,. ... .. '3.'._. .. .ems.. www.inframarkims.com 611AS' Agenda Page 67 1. Lake Management The lake levels have begun to recede. Water clarity remains extremely high and the control structures have stopped flowing or almost stopped flowing. Additional lake maintenance information is found below; all lake issues are low density unless otherwise noted. a. Algae on Lakes: 1. G tom. ;x b. Littorals: i. Dead spike rush found floating in lake 10.The buildup is minor as last month for lake 12, but the Board may wish to consider raking it out. ii The swamp lilies previously planted are coming back after the high-water levels as observed on lakes 6, 28, &29. Inframark Monthly Management Report 1 1611AI Agenda Page 68 • ado.. • The northern and southern littoral shelves continue to have the tall undesirable grass.A plan of treatment is needed to rid the grass in these areas. �^!ili►tr , iv. Alligator Flag in Lakes: No issues observed. c. Rocks: 20. • oror ' e. d. Weeds: Inframark Monthly Management Report 2 16I1Ai- Agenda Page 69 I. Alligator Weed in Lakes: No issues observed. ii. Bitter Melon/Balsam Apple: No issues observed. iii. Brazilian Pepper No issues observed. iv. Cattails in Lakes: No issues observed. v. Climbing Hemp Vine in Lakes. No issues observed. vi. Dollar Weed in Lakes: 28. vii. Hydrilla in Lakes: 7, 28, &29. High density continues to be observed in lakes 28&29. Heavy treatment should continue until it is eradicated in these smaller lakes. un. a,W ,„ . A Ili ,,'., • .. ,� viii. Illinois Pondweed in Lakes: 7, 11, 12, 18, 19, 20, 27, 30A&30B.The density in lake 19 has improved, however, it is topping out in the lagoon.The passage under the bridge was clear with slight growth on the lake 30B side. Medium density on lakes 12 &20. Lakes 18, 19, 20, &30B shown. t 74kti a MOM 3 ._; IFP*1111‘,,. r •._ •-.Ada- Inframark Monthly Management Report 3 16I 1A3 Agenda Page 70 • ix. Palms on Lake Banks: 3(SE corner). • X. Red Ludwigia in Lakes No issues observed. xi. Sedges in Lakes. No issues observed. xii. Spatterdock/Lily Pads in Lakes. 3 &27. • xiii. Torpedo Grass in Lakes: 9&20. Medium density in lake 20. Inframark Monthly Management Report 4 1 61 1A )- Agenda Page 71 xiv. Various Lake Bank Weeds: No issues observed. xv. Various Submerged weeds in Lakes: No issues observed. xvi. Trash in Lakes 20, 21, 30A&30B. Lakes 20, 21, 30A, &30B shown.The palm fronds on the rocks around the bridge should be removed. +._ ..Y 5. fir. . , ew S Q `FF` R / IF # a' x1 i .4 e. Bulkheads: No issues observed. f. Clippings in Lakes. No issues observed. 2. Lake Bank Erosion a. Step erosion was observed on the south bank of lake 11. -i -1_ b. Step erosion was observed on the south west end of lake 27. Inframark Monthly Management Report 5 1611A ), Agenda Page 72 — + .a 3. Storm Drainage System a. Boundary Berm: No new issues observed. b. Control Structures: i. Basin 1. Control Structure L3/L10 was flowing, but only around the weir.Control Structure L5/L6 was not flowing. ii. Basin 2 Control Structure L6/L20 was flowing. Control Structure L12/L20 was not flowing. ! l !►!►'!!"Ili it.,A tot 47; Ow 104 ' 411#7'41•"49116P ),:•-,,N0 4 • it` 00-40 111 k),P*'• -44 iii. Basin 3: I do not believe Control Structure 102 behind the maintenance facility was flowing, however,the appear remains unchanged from the previous report. Maintenance of the structure and surrounding area is needed. Control Structure L25L30 was not flowing. r. 7 • iv. Basin 4&5: Control Structure L28/L30 was flowing.Structure L29/L30 was not flowing. Inframark Monthly Management Report 6 1b11A )... Agenda Page 73 ' -111`4 -'4 -'w• -- : PitMkt►frmt'�s�� ,-. ill,. - -.II fr! f f/f�rf►�► 111 w-All ►Ttnool#40.0%0•40110. ,. �►�f►ll►�Ifl►,�►/fff�1 ofr-- ..41-4-4<it . „,,„4. 1111 ,,'ftt*'44killi biPPIIMPilltAtk ,tji ,,,i.40 40 40 4000 _,. a iw v. Basin 6:Control Structure W2L30 was not flowing. Control Structure L27/L30 was not flowing. Control Structure L30/C00O3 was not flowing. Control Structure L30/C00O2 was not flowing. , - %04;St.kVai-VkW I? Wr -,, VaV tea*O _�M�I .; 3/ efellort v.&Nob. 4 *. .0- " 'A • ,,-;- *" t- 43,VAVIPV . ' roe,"-4.4or 40v _ k :- \\...\\I„ Wiiidailow. 1 C. Drains: No new issues observed. d. Roadway Catch Basins: No issues observed. e. Catch Basins: Drains should be kept clear of debris so they can function properly.The drain installed last spring on the south end of lake 21 was found fully covered with new pine straw. Inframark Monthly Management Report 7 161 1A3. Agenda Page 74 •r • • f. Inter-Connect/Drain Pipes As the water level recedes attempts will be made to review the lake pipes, however, many of them are still underwater. Lake 28 shown with a few rocks at the mouth of the RCP pipe. .1.42:AA ` g. Illicit Discharges: No issues observed. h. Lake Drainage Pipes: Floating pipes observed on lakes 7, 9, 11,& 19. • dSY ffr • �' Yt 914`''P� 3`t 1 • + • j 2� e t • • +... • yt Inframark Monthly Management Report 8 1 6 I 1 A 9- Agenda Page 75 i l illt 4. Parcels No new issues observed. 5. Fish/Wildlife Observations: Bass ® Bream n Catfish n Gambusia Egrets ® Herons n Coots n Gallinules MAnhinga n Cormorant n Osprey ® Ibis n Wood stork ❑ Otter Alligators n Snakes 7 Turtles 7 Other: E 'Fliv ,syor r' eJ 6 < y,iA' n /fad! 40 ' i '' t� • • I .•:2N :.:- k. • 6. Residential Complaints/Concerns No issues reported. 7. Non-CDD Issues: a. Brazilian pepper trees have been treated in the Quarry wetland W2 behind Lions Bay Ct. One small tree was observed behind 10049 Lions Bay Ct.that should be treated. Inframark Monthly Management Report 9 161 1A1 Agenda Page 76 v r K g �, . ' S Inframark Monthly Management Report 10 3- Ag (D1611A .F•`zp 2216 Altamont Avenue Fort Myers,Florida 33901 Phone:239.332.5499 November 17, 2020 Fax:239.332.2955 www.cphcorp.coin The Quarry Community Development District CIO I nframark 5911 Country Lakes Drive, Fort Myers, Florida 33905 Re: Limited Survey Proposal Bob: CPH, Inc. is pleased to provide this proposal for survey location of three plastic pole markers and two (2) sets of coordinates for future buoy installation (by others). Quarry CDD Naples -Scope of Services Perform Surveying Services as per Rule Chapter 5J-17 of the Florida Administrative Code in compliance with the standards of practice of surveying and mapping of the State of Florida. • Establish the south and east lines of Tract V, Quarry Phase 1 as recorded in Plat Book 42, Pages 57 through 67,the west line of Tract L-31, Heritage Bay as recorded in Plat Book 43, Pages 15 through 45, also being the east line of Tract L-30, Quarry Phase 1A as recorded in Plat Book 42, Pages 31-35, all of the Public Records Collier County, Florida as depicted on the attached "Survey Site Exhibit. • Establish State Plane Coordinates on said lines. • Field set three (3) provided stakes, signs or monuments. • Exhibit will be provided with State Plane Coordinates on Markers and Tract V • A signed and sealed survey will not be provided as part of this scope. State Plane: The project coordinate system will be based horizontally on the North American Datum 83(2011)(NAD 83(2011)). The project will be referenced to state plane coordinates by field locating published control points. The National Geodetic Survey control points will be researched and verified in the field. This base of reference will be used to establish the coordinate system for the project. - 1 - 161 1Al- Agenda Page 79 Location of Markers to be set i �1 '� gg ' 4 � ' Sors13 Say DR � i4Mn `,; +► Quarry Phase 1 ' ' i E Tract V - PB 42-57 . , 1'4 ; Quarry Phase 1 A - ''" Tract L-30 - PB $-• 42-31 ' . K } • n *T ' 4 1 / 6 �- Heritage Bay - I. 'I:., i .- Tract L-31 ,�,. ' . _, '- PB 4 3-15 i y .:*)r � T. i a hoe. , ' % P M�Y�r.. � '.... ma - _. CPH agrees to perform this work on a lump sum fee of$2,200.00 including reimbursable expenses. CPH shall be reimbursed directly for project specific expenditures such as, but not limited to,travel, printing and reprographics, meals, hotel stays, rental cars, postage, and telephone usage. Reimbursable expenses will be billed at their actual cost, without increase. Payment for services rendered will be due within forty-five (45) days of invoicing. Should The Quarry CDD (CLIENT)choose to not complete the project at any phase of the project, CPH will be due any fees for services up to the time the CLIENT informs CPH in writing to stop work. Payment for services up to the time of the CLIENT'S notice will be due within thirty (30) days of the final invoice. Invoice payments must be kept current for services to continue. CPH reserves the right to terminate or suspend work when invoices become ninety(90)days past due. In the event that the work is suspended or terminated as a result of non-payment, CLIENT agrees that CPH will not be responsible for CLIENT's failure to meet project deadlines imposed by governments, lenders, or other third parties. Neither is CPH responsible for other adverse consequences as a result of termination or suspension of work for non-payment of the invoices. This proposal is void if not executed and returned to CPH within 30 days of CPH's execution of the proposal. The above fees, terms, conditions, and specifications are satisfactory and are hereby accepted. CPH is authorized to do the work as specified and payment will be made as outlined above. By signing this agreement, I acknowledge that I have the legal authority to enter into this agreement and agree to be bound by the terms contained herein. - 2 - 16114 2.. Agenda Page 80 If you are in agreement with the above Scope of Services and fees, please sign and return one (1) copy of this letter to our office for our records, and as our Notice to Proceed. CPH, INC. By: Albert Lopez Signature Office Manager Title: November 17, 2020 Date Date - 3 - {V l Agend age'81 a. �'/► a- 1 If you are in agreement with the above Scope of Services and fees, please sign and return one (1) copy of this letter to our office for our records, and as our Notice oceed. CPH, INC. By: Gc Albert Lopez Signature Office Manager Title: C4-1-44120 November 17, 2020 4 11 1AZ-07-4 Date Date * Work authorized as a work order under Heritage Bay CDD's current Contract with CPH for a not to exceed amount of$1,100.00 as approved by the Board at their 1/7/21 meeting. 2/4/21 approval for an additional $55.00 for a total not to exceed amount of $1,155.00 per Resolution 2020-02 for the markers as noted in a 2/4/21 email to CPH/QCDD Chairman. Ba Heritage CommunityDevelopment District 1 6 I 1 A �. Y Inframark,Infrastructure Management Services 210 N.University Drive,Suite 702,Coral Springs,Florida 33071 Tel.(954)603-0033•Fax(954)345-1292 DATE: June 17, 2021 TO: Mr. Derrick Johnssen CLERK OF THE CIRCUIT COURT Finance Department Derek.]ohnssen@collierclerk.com FROM: Christy Gargaro Lead Recording Secretary RE: Minutes of the March 4, 2021 Meeting Approved at the May 6, 2021 Meeting Enclosed for your records is a copy of the minutes of the above referenced meeting of the Heritage Bay Community Development District, which are to be kept on file for public access. Encl: Cc: Mr. Gregory Urbancic gurbancic@cyklaw.com iustin.faircloth@inframark.com l6I1A . MINUTES OF MEETING HERITAGE BAY COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Heritage Bay Community Development District was held on Thursday, March 4, 2021 at 9:00 a.m. in the Heritage Bay Clubhouse, 10154 Heritage Bay Blvd.,Naples, Florida. Present and constituting a quorum were: Edwin Hubbard Chairman Dennis Gagne Vice Chairman Donna Hunter Assistant Secretary Jack Arcurie Assistant Secretary Allen Soucie Assistant Secretary Also present were: Justin Faircloth District Manager Albert Lopez CPH Alonso Wiener Lake & Wetland Management The following is a summary of the actions taken at the March 4, 2021 Heritage Bay Community Development District's Board of Supervisors meeting. FIRST ORDER OF BUSINESS Call to Order Mr. Faircloth called the meeting to order and called the roll. A quorum was established. SECOND ORDER OF BUSINESS Approval of Agenda On MOTION by Ms. Hunter seconded by Mr. Gagne with all in favor the agenda was approved. THIRD ORDER OF BUSINESS Public Comment on Agenda Items • None. FOURTH ORDER OF BUSINESS Engineer's Report A. Clubhouse Dry Retention Modification Update • Mr.Lopez provided an update on the Clubhouse dry retention modification.The project is currently on hold until the rainy season begins in order to examine the outfall into Lake 19. March 4, 2021 Heritage Bay !'Dl ' 11 A 3 • Mr. Hubbard requested this area be reviewed and reported on quarterly. B. Terrace VI Drain Line Repairs and CPH Oversight • Mr. Lopez provided an update on Terrace VI. • He noted CPH is waiting for a schedule. C. Veranda V—ARC Approvals & CSEI Contract • An update was provided on Veranda V. • Mr. Hubbard requested this item be removed from future agendas. D. Veranda VII& VIII—Status-Request for Gutter and Downspout Installation, Related Water Discharge Issues, & CPH Oversight • Mr. Hubbard gave an update on the project noting the associations are obtaining another proposal. E. Status-Analysis & Documentation of Rip Rap on South Lake Bank of 30A • Mr. Lopez provided an update on the open CPH items. • Staff is scheduled to be on site the week of March 29, 2021 to start work on Lakes 30A and 30B. • The survey report from Lake 30A is expected to be provided in the May 6, 2021 agenda package. F. Status-Survey Markings for Interlocal Agreement between Heritage Bay & Quarry CDDs • None. FIFTH ORDER OF BUSINESS Attorney's Report A. Discussion of Attorney's Position on CDD E-Verify Participation • There was discussion regarding Mr. Urbancic's comments on E-Verify. • The Board requested staff register the District with the E-Verify system. SIXTH ORDER OF BUSINESS Lake & Wetland Management Monthly Inspections and Service Reports • The monthly inspections and service reports were reviewed. A. Status Update on Introduction of Carp in Lake 19 • An update was provided. B. Littoral Planting Update i. Review Update on Littoral Status in Lakes Previously Planted ii. Proposals for FY 2021 Plantings 2 161143, March 4, 2021 Heritage Bay CDD • The Board requested Lake & Wetland Management provide an update on previous littoral installations and/or installation recommendations for Lakes 3, 4, 5, 8, 13, 20 and 26 at the May 6, 2021 meeting. SEVENTH ORDER OF BUSINESS Old Business A. Lake Tree Marking/Trimming Update • An update was provided on the lake tree marking/trimming project with DTE. B. Status Update on Summer 2021 Work on Lake Banks 1, 5, 18 & 26 • An update was provided on the Summer 2021 erosion repairs. On MOTION by Mr. Hubbard seconded by Mr. Arcurie with all in favor staff was authorized to obtain a proposal from CSEI to repair the northeast corner of Lake 19 at an amount not to exceed $5,000. EIGHTH ORDER OF BUSINESS New Business A. FY 2022 Meeting Schedule • The Board reviewed the proposed meeting schedule. • Although the notice will be for monthly meetings, the Board plans to meet only in November, January, February, March, June, August and September for Fiscal Year 2022. On MOTION by Mr. Arcurie seconded by Ms. Hunter with all in favor the meeting schedule for Fiscal Year 2022 was approved as presented. NINTH ORDER OF BUSINESS Manager's Report A. Approval of the Minutes of the February 11,2021 Meeting • Changes were made to the minutes, which will be included in the final copy of the minutes. QOn MOTION by Mr. Hubbard seconded by Mr. Gagne with all in favor the minutes of the February 11, 2021 meeting were approved ias amended. _ B. Acceptance of Financials • The Financial Report for the period ending January 31, 2021 was reviewed. • The Board requested excess funds in the operating account, which are not needed, be moved into the money market account. 3 1 6 1 1 A 3,, March 4, 2021 Heritage Bay CDD On MOTION by Mr. Gagne seconded by Ms. Hunter with all in favor, the January 31, 2021 Financial Statements were accepted. C. Discussion of FY 2022 Preliminary Budget • The Board reviewed the preliminary budget for Fiscal Year 2022 and made the following requests: ➢ Information to support Inframark's line item increases. ➢ Reduce the Contracts-Sediment Testing line item under Lakes& Ponds to $5,483. > Increase the R&M-Contingency line item under Lakes& Ponds to $5,792. D. Field Manager's Reports • The Field Manager's Report for inspection was reviewed with the Board. E. Notification of Agreements Per Spending Resolution 2020-2 i. CPH Boundary Marker Installations • The Board was notified of the CPH proposal for boundary marker installations. F. Follow Up Items i. FEMA • Staff provided updates on follow up items. • The Board requested three No Fishing, Stocked with Triploid Grass Carp signs for Lake 19: one to be installed on the north side of the bridge, and the other two to be installed on the south and north corners of the lagoon. The signs are to be green with white lettering and should stand two feet off the ground. TENTH ORDER OF BUSINESS Supervisors' Reports, Requests, and Comments • Mr. Soucie requested to join staff for the next monthly inspection. ELEVENTH ORDER OF BUSINESS Chairman's Comments • Mr. Hubbard discussed the following: > The April 16, 2021 Heritage Bay Umbrella Association Best Practices meeting,which he will attend. > He provided an update on the littoral planting area review with the Heritage Bay Green Committee. > Heritage Bay and Bonita Bay concerns. 4 Ib11A3- March 4, 2021 Heritage Bay CDD TWELFTH ORDER OF BUSINESS Audience Comments • None. THIRTEENTH ORDER OF BUSINESS Adjournment There being no further business, On MOTION by Mr. Gagne seconded by Ms. Hunter with all in favor the meeting was adjourned at 10:58 a.m. 1 tin aircloth Edwin Hubbard ecretary Chairman 5 1 6 I 1 A 3 IMMOKALEE WATER&SEWER DISTRICT BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION TOGETHER WITH ADDITIONAL REPORTS YEARS ENDED SEPTEMBER 30,2020 AND 2019 1611A3 TABLE OF CONTENTS Page(s) INDEPENDENT AUDITOR'S REPORT 1-4 MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) I-VIII BASIC FINANCIAL STATEMENTS Statements of Net Position 5 Statements of Revenues,Expenses,and Changes in Net Position 6 Statements of Cash Flows 7 Notes to the Financial Statements 8-34 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A Schedule of Revenues,Expenses and Changes in Net Position-Budget (Non-GAAP Budgetary Basis)and Actual with Reconciliation to GAAP Basis-Year Ended September 30,2020 35-40 Schedule of Expenditures of Federal Awards- Year Ended September 30,2020 41 Notes to the Schedule of Expenditures of Federal Awards 42 ADDITIONAL REPORTS Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards 43-44 Independent Auditor's Report on Compliance for Each Major Program/Project and on Internal Control Over Compliance Required by the Uniform Guidance 45-47 Schedule of Findings and Questioned Costs-Federal Awards 48-50 Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes 51 Independent Auditor's Report to Management 52-55 Management's Response to the Independent Auditor's Report to Management Exhibit 1 Impact Fee Affidavit Exhibit 2 6 1 1 A 3 71, A + AN Affil Acccounon IlIUU1 �7Florida Institute of Certified Public Accountants Company, L A American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division INDEPENDENT AUDITOR'S REPORT Board of Commissioners Immokalee Water& Sewer District 1020 Sanitation Road Immokalee,Florida 34142 Report on the Financial Statements We have audited the accompanying basic financial statements of the business-type activities of Immokalee Water&Sewer District(an independent special district)(the"District")as of and for the years ended September 30,2020 and 2019, 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 an opinion on these financial statements based on our audits. We conducted our audits 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 of America. 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, IN'1 EGRI-I Y SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090• Fax: (239)333-2097 1611A3 Board of Commissioners Immokalee Water& Sewer District Page 2 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 opinion. Opinion In our opinion,the financial statements referred to above present fairly, in all material respects,the respective financial position of the business-type activities of Immokalee Water& Sewer District as of September 30,2020 and 2019, and the respective changes in financial position and cash flows thereof, for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter During the fiscal year ended September 30, 2019,the District levied a special assessment of $496,731 on system users benefiting from system improvements on State Road 29. The District did not record the transaction in the prior year. For the year ended September 30,2020,the District reported a restatement of net position of$496,731 as a result of this correction of an error(see Note N). The District utilizes a third party billing company which generates billing reports based on rate inputs.During the year ended September 30, 2019, an input error was made which resulted in the incorrect billing of commercial accounts. As such, during the year ended September 30, 2020,the District reported a restatement of the 2019 ending net position of$182,138 as a result of this correction of an error. The auditor's opinion was not modified with respect to this restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages I-VIII 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-management's discussion and analysis (MD&A)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 required supplementary information-management's discussion and analysis (MD&A)because the limited procedures do not provide us with sufficient 1 6 I 1 A 3 Board of Commissioners Immokalee Water& Sewer District Page 3 evidence to express an opinion or provide any assurance. Other Required Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Immokalee Water& Sewer District's basic financial statements. The required supplementary information other than MD&A-budgetary comparison information-Schedule of Revenues,Expenses and Changes in Net Position-Budget(Non-GAAP Budgetary Basis)and Actual with Reconciliation to GAAP Basis-year ended September 30, 2020 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The required supplementary information other than MD&A-budgetary comparison information- Schedule of Revenues,Expenses and Changes in Net Position-Budget(Non-GAAP Budgetary Basis)and Actual with Reconciliation to GAAP Basis-year ended September 30, 2020 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the required supplementary information other than MD&A budgetary comparison information-Schedule of Revenues, Expenses and Changes in Net Position-Budget(Non-GAAP Budgetary Basis)and Actual with Reconciliation to GAAP Basis-year ended September 30,2020 is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Our audit was conducted for the purpose of forming an opinion on the financial statements of Immokalee Water& Sewer District that collectively comprise the Immokalee Water&Sewer District's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards for the year ended September 30,2020 as required by the Title 2 U.S. Code of Federal Regulations(CFR)Part 200, "Uniform Administrative Requirements,Cost Principles,and Audit Requirements for Federal Awards" is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the accompanying Schedule of Expenditures of Federal Awards for the year ended September 30,2020 is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 161 1A3 Board of Commissioners Immokalee Water&Sewer District Page 4 Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District's basic financial statements. The Exhibit 1 -Management's Response to Independent Auditor's Report to Management is not a required part of the basic financial statements but are required by Government Auditing Standards and Rules of the Auditor General. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly,we do not express an opinion or provide any assurance on it. Other Reporting Required by Section 218.415, Florida Statutes In accordance with Section 218.415,Florida Statutes,we have also issued a report dated May 19, 2021, on our consideration of Immokalee Water&Sewer District's compliance with provisions of Section 218.415,Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing, and to provide an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415,Florida Statutes in considering Immokalee Water& Sewer District's compliance with Section 218.415,Florida Statutes. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated May 19, 2021,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,contract and 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. /..VAste244.) 4. ` 66�M 1 TUSCAN&COMPANY,P.A. Fort Myers, Florida May 19,2021 161 1A3 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) 1611A3 IMMOKALEE WATER& SEWER DISTRICT Required Supplementary Information Management's Discussion and Analysis September 30, 2020 The management of the Immokalee Water& Sewer District offers readers of our financial statements the following narrative overview and analysis of our financial activities for the year ended September 30, 2020. Basic Financial Statements Our basic financial statements are prepared using proprietary fund (enterprise fund) accounting that uses the same basis of accounting as private-sector business enterprises. The District is operated under one enterprise fund. Under this method of accounting, an economic resources measurement focus and an accrual basis of accounting is used. Revenue is recorded when earned and expenses are recorded when incurred. The basic financial statements include a statement of net position, a statement of revenues, expenses and changes in net position, a statement of cash flows, and a reconciliation of operating profit (loss) to net cash provided by operating activities. These financial statements are followed by notes to the financial statements. In addition to the basic financial statements, this report also contains required supplementary information pertaining to budgetary reconciliations. The statement of net position presents information on the District's assets and liabilities, with the difference between the two 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 revenues, expenses, and changes in net position reports the operating revenues and expenses and nonoperating revenues and expenses of the District for the fiscal year. The difference, the net income or loss, is combined with any capital grants to determine the increase or decrease in net position for the fiscal year. The increase or decrease, combined with the net position at the end of the previous year, total to the net position at the end of the current fiscal year. The statement of cash flows reports cash and cash equivalent activities for the fiscal year resulting from operating activities, capital and related financing activities, noncapital and related financing activities and investing activities. The net result of these activities added to the beginning of the year cash balance, total to the cash and cash equivalent balance at the end of the current fiscal year. MDAI ib11A3 IMMOKALEE WATER& SEWER DISTRICT Required Supplementary Information Management's Discussion and Analysis September 30, 2020 Condensed Financial Statement Condensed financial information from the statements of net position and revenues,expenses and changes in net position for the years ended September 30,2020 and 2019 are as follows: September 30, 2020 2019 Current and other assets $ 19,162,962 $ 18,283,197 Capital assets,net 57,509,486 57,690,948 Total assets $ 76,672,448 $ 75,974,145 Current liabilities $ 3,526,538 $ 3,970,846 Long-term liabilities 31,071,201 31,846,733 Total liabilities 34,597,739 35,817,579 Net position: Net Investment in capital assets 25,758,542 25,012,497 Restricted 3,321,903 2,182,580 Unrestricted 12,994,264 12,961,489 Total net position 42,074,709 40,156,566 Total liabilities and net position $ 76,672,448 $ 75,974,145 Operating revenue: Water service $ 3,954,033 $ 3,730,396 Wastewater service 5,578,513 5,313,841 Meter service charges 790,679 748,565 Late fees 71,125 74,960 Reconnection/transfer fee 99,205 107,280 Miscellaneous revenue 135,117 110,627 Cross connection control fees 363,676 354,170 Total operating revenues 10,992,348 10,439,839 Operating expenses: Water treatment and distribution expense 1,998,670 1,900,862 Wastewater treatment expense 1,851,581 1,858,641 Wastewater collection expense 801,188 718,038 Customer service and administrative expense 2,040,490 1,648,632 Maintenance 481,130 451,254 Total operating expenses,excluding depreciation 7,173,059 6,577,427 Depreciation 2,184,329 1,875,143 Total operating expenses,including depreciation 9,357,388 8',452,570 Operating profit(loss) 1,634,960 1,987,269 Net nonoperating revenue/(expense) (877,044) (655,574) Profit(loss)before capital grants 757,916 1,331,695 Capital grants and contributions 1,160,227 1,812,132 Increase(Decrease)in net position 1,918,143 3,143,827 Beginning of year net position 40,156,566 37,012,739 End of year net position $ 42,074,709 $ 40,156,566 (Continued) MDA II 1611A3 IMMOKALEE WATER& SEWER DISTRICT Required Supplementary Information Management's Discussion and Analysis September 30, 2020 The information contained in the condensed financial information table is used as the basis for the discussion presented on the following pages, surrounding the District's activities for the fiscal year ended September 30, 2020. Financial Highlights • The District completed a rate study and adopted the related rate increase of 3% per year for FY 2020-2022. Rate increases are effective on October 1, 2019, October 1, 2020 and October 1, 2021. • The District ended the year September 30, 2020, with a net position of $42,074,709 of which$25,758,542 represented the net investment in capital assets and $12,994,264 was unrestricted. The ending net position was $1,918,143 more than the net position at the beginning of the year. This was primarily the result of the implementation of the previous rate increases. • The District ended the year September 30, 2019, with a net position of $40,156,566 of which $25,012,497 represented the net investment in capital assets and $12,961,489 was unrestricted. The ending net position was $3,143,827 more than the net position at the beginning of the year. This was primarily the result of the implementation of the previous rate increases. • The District had profit before capital contributions, for the years ended September 30, 2020 and 2019 of$757,916 and$1,331,695,respectively. • The District has minimized interest expense, because of utilizing low interest bonds/loans for capital projects funded through USDA Rural Development. These interest rates range from 2.25% to 5.125%. The projects are a combination of loans and grants with the highest grant ratio to date being at 57% of the total project. The Series 2018 Bond had the lowest interest rate ever received by the District at 2.25%. • The District ended the year September 30, 2020 with cash and cash equivalents and investments of approximately $16,971,903. However, only $12,274,927 of this amount is available for operations, with the remainder of these assets being restricted for specific purposes and unavailable for the District's general use. • The District ended the year September 30, 2019 with cash and cash equivalents and investments of approximately $15,948,815. However, only $11,852,148 of this amount is available for operations, with the remainder of these assets being restricted for specific purposes and unavailable for the District's general use. • The statement of cash flows identifies the sources and uses of cash activity for the fiscal year. For fiscal year 2020, cash and cash equivalents increased by $997,575 compared to the year ended September 30, 2019. This change resulted primarily from the receipt of grant funds to fund the cost of a capital project. The servicing of the District's debt resulted in the spending of cash of nearly$1,985,956. • The statement of cash flows identifies the sources and uses of cash activity for the fiscal year. For fiscal year 2019, cash and cash equivalents increased by $2,312,620 compared to an increase of$2,035,541 for the year ended September MDA III IMMOKALEE WATER& SEWER DISTRICT J Required Supplementary Information Management's Discussion and Analysis September 30, 2020 30, 2018. This change resulted primarily from the receipt of grant funds to fund the cost of a capital project. The servicing of the District's debt resulted in the spending of nearly$1,964,872. Revenue As in previous years, the wastewater service revenues make up more than half of the revenues, accounting for 51% in 2020 and 51% in 2019. Water revenue accounted for 36% in 2020 and 36% in 2019. Meter service charges, late fee charges, reconnection fees, and miscellaneous revenues also remained constant between the two years. Cross connection control fees remained at 3 % in 2020 and 2019. The District was successful in receiving an increase in the District boundaries by the Florida Legislature, during the Spring 2005 session. This change in the boundaries is expected to result in increased opportunities for new users, in future years. We will be working on a revised capital improvement plan, in conjunction with the Immokalee Master Plan,to identify the needs within the next fiscal year. Expenses Due to the significant investments the District has in capital assets, depreciation continues to be one the largest operating expenses at 23-26%of total operating expenses per year. Unlike the other expenses listed, depreciation is not a cash expense. The second largest department, by expenses, at 21% and 23% of total expenses is for wastewater treatment, which remained constant between 2020 and 2019, respectively. This department is one of the largest, with eight full time employees and one part-time employee. One of the largest expenses, excluding salaries and benefits, in this department is electric, which accounted for over $167,000 and $218,000 in expenses in 2020 and 2019,respectively. The third highest department by expenses is the water treatment and distribution department with twelve full time employees. The related expenses of 20% and 22% were 2020 and 2019, respectively. We are replacing meters that are under registering, with new Neptune auto-read meters. In addition, all new residential services are required to use the Neptune auto-read meters. This will reduce the need for additional meter readers in the water department and will improve the efficiency and accuracy of the meter reading process. 100% of the meters are now automated. The first largest department is the administration department, which consists of nine full time employees and one part-time employee. The related expenses remained constant at 22% and 19% of total expenses in 2020 and 2019, respectively. The largest expense in this department, other than salaries and benefits is engineering fees. MDA IV 1 6 I 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Required Supplementary Information Management's Discussion and Analysis September 30, 2020 The next largest department by expenses is the wastewater collection department, which consists of five full time employees. The related expenses remained constant at 8% in 2020 compared to 2019. The smallest department is the maintenance department, which was created in fiscal year 2004 to reduce maintenance-related expenses from third-party vendors. It consists of six full time employees. It accounts for 5% of total expenses in 2020 and 2019, respectively. Labor costs in this department, except for those relating to the supervisor, are charged to the appropriate departments, based on the maintenance projects they are working on. Wages and benefits account for 42% and 39% of the expenses in 2020 and 2019, making it the largest expense category. Depreciation expense accounts for 23% and 20%, for 2020 and 2019, respectively. The District continues to monitor costs. The District considers cost of living increases during the budget cycle and provides merit increases based upon performance evaluations. The District follows best practices for water and wastewater systems in promoting employees who meet specified criteria for certification and licensing. The District bids out contracts for major expenses, such as health insurance, property insurance, residuals management and chemicals. The District has an arrangement with Collier County Fleet Management allowing the District to access their fuel tanks, located in Immokalee, to take advantage of bulk-usage savings. General Fund Budgetary Highlights Over the course of the 2020 fiscal year, the Board of Commissioners amended the District budget. These budget amendments were done primarily to a) increase operating revenue, and to b) increase operating expenses and capital funding primarily related to the District's projects, and adjust designated funds. Original to Final Budget Variance For the fiscal year 2020 total operating revenues were increased by $410,000 more than originally budgeted, and total operating expenses, excluding depreciation expense, were decreased by over$700,000. Capital outlay—capital outlay was increased by $1,000,000. MDA V 161 1A IMMOKALEE WATER& SEWER DISTRICT Required Supplementary Information Management's Discussion and Analysis September 30, 2020 Final Budget to Actual Variance For the fiscal year 2020 total operating revenue was approximately $162,000 less than budgeted. Capital Assets The District's net capital assets as of September 30, 2020 and 2019 amounted to $57,509,486 and $57,690,948 (net of accumulated depreciation), respectively. This investment in capital assets includes land, construction in progress, buildings and improvements, water and wastewater plants and systems, and machinery and equipment. Net capital asset additions included the following for the years ended September 30: 2020 2019 Construction in progress $ 1,390,104 $ 1,189,315 Buildings and improvements - 47,313 Water and wastewater plants and systems 589,848 214,364 Machinery and equipment 22,915 375,095 $ 2,002,867 $ 1,826,087 Construction in progress for 2020 was primarily for the clarifier project, Lift Station H and Master Lift Station X8 and line relocation projects. Construction in progress for 2019 was primarily for the AC Water Main and Undersized Replacement Project funded through USDA. The District primarily acquires its assets with the proceeds from federal capital grants and revenue bonds, supplemented by user fees. USDA Rural Development is the primary source of proceeds, because they offer low interest loans for capital improvements. We also received contributed capital in the form of new water and sewer infrastructure from developers. New equipment purchases and a system expansion are part of the District's capital improvement program. Capital purchases are acquired using bids, or Florida State Contract prices. MDA VI 6I 1A3 IMMOKALEE WATER& SEWER DISTRICT Required Supplementary Information Management's Discussion and Analysis September 30, 2020 Debt As of September 30, 2020, the District had $31,080,969 of revenue bonds outstanding. The total amount outstanding for these categories of debt decreased, to reflect the principal payments by the District of$901,000. As of September 30, 2019, the District had $31,981,969 of revenue bonds outstanding. The total amount outstanding for these categories of debt decreased, to reflect the principal payments by the District of$868,000. Unrestricted Net Assets As of September 30, 2020, the District had designated $10,155,999 in unrestricted net assets, as recommended by the auditor. The District designated $841,000 for emergencies, $4,138,975 for operations, $464,495 for vehicle replacement, $337,557 for capital equipment, and$4,373,972 for maintenance reserve. As of September 30, 2019, the District had designated $8,625,177 in unrestricted net assets, as recommended by their auditor. The District designated $761,000 for emergencies, $3,308,656 for operations, $527,483 for vehicle replacement, $546,416 for capital equipment, and $3,481,622 for maintenance reserve. Upcoming Significant Changes or Impacts Rate Increase: In fiscal year 2015, the District hired a rate consultant, PRMG, to determine what rate increase was needed. The Board adopted rate increases of 3% on water and for wastewater to go into effect on October 1, 2019, October 1, 2020 and October 1, 2021. Residential - There are several residential developments that are expected to impact the revenues of the District during the next fiscal year. Arrowhead PUD, which will consist of over 1,200 residential units at completion, has completed the first phase of their water and wastewater infrastructure. The Crestview Apartments Phase I & II (304 units) were completed and connected. The first and second phase of approximately 125 single-family units were also completed. Building on these homes had been delayed due to the impact of the nationwide housing market. Habitat for Humanity continues to build homes in Immokalee. In December 2006, they completed the infrastructure in the Independence Subdivision Phases II, with 167 homes. Liberty PUD, with 162 single family homes has also been connected, to our system. They have completed the work for the Faith PUD, which included an additional 175 homes; and the Kaicasa PUD, which will consist of 280 homes. MDA VII 1611A3 IMMOKALEE WATER& SEWER DISTRICT Required Supplementary Information Management's Discussion and Analysis September 30, 2020 Other Residential: The nearby Ave Maria University campus is expected to eventually impact Immokalee with increased demand for low cost residential homes for workers. Discussions were held in previous years with Lennar Homes regarding the possibility of 5,000 to 6,000 homes in the Serenoa subdivision, however, that did not materialize following the nationwide slump in housing prices. Barron Collier has since acquired that property, and they have not yet indicated what they plan to use the property for. Collier Enterprises has withdrawn their plans to build 400 homes near the Florida Tradeport. Commercial The EDC continues to market the Florida Tradeport, but has been unable to secure a key industry for that location. Plans were previously approved for the CCAA USDA Manufacturing Building at the airport, and that building is complete. Collier County Public Schools completed construction on the new Bethune Education Center. Collier County Parks completed the upgrade of their South Park Community Center. Immokalee continues to attract economically viable businesses within its boundaries. IWSD installed water and wastewater infrastructure to accommodate larger retail uses. Family Dollar has completed a new building on New Market Road. IWSD continues to provide water and wastewater services to the Seminole Tribe's casino and is working on an emergency interconnect agreement for the residential component of the reservation. New commercial development continues to be planned along the fringes of downtown Immokalee. Saint Matthews House replaced their Thrift Store on Main Street. First Bank built a new facility on North 15th Street. IWSD continues to evaluate our wastewater operations. The District has just begun the rehabilitation of three clarifiers. The District continues to manufacture our own fertilizer branded "Organi Kalee" and markets to agricultural uses. The A/C and Undersized Water Lines Replacement project replace and upgraded over 50 miles of water lines within Immokalee. The cost of the project was over $20,000,000 and funded through the USDA. Request For Information This financial report is intended to provide an overview of the finances of the District for those with an interest in this organization. Questions concerning any information within this report, may be directed to the Executive Director of the District, 1020 Sanitation Road, Immokalee, Florida 34142. MDA VIII 161 1A3 IMMOKALEE WATER& SEWER DISTRICT STATEMENTS OF NET POSITION September 30, 2020 and 2019 2020 2019 ASSETS CURRENT ASSETS Cash $ 11,138,928 $ 10,741,662 Investments - CDs 1,135,999 1,110,486 Accounts receivable,net 641,044 710,825 Other receivables 36,956 18,283 Inventory 374,786 336,700 Prepaid expenses 1,200 53,081 TOTAL CURRENT ASSETS 13,328,913 12,971,037 RESTRICTED ASSETS Cash 4,696,976 4,096,667 Grant and assessment receivables 1,137,073 1,215,493 TOTAL RESTRICTED ASSETS 5,834,049 5,312,160 CAPITAL ASSETS Capital assets not being depreciated: Land 2,645,941 2,645,941 Construction in progress 964,893 21,923,826 Capital assets being depreciated: Buildings and improvements 1,670,776 1,805,024 Water and wastewater plants and systems 86,800,068 63,726,935 Machinery and equipment 3,536,228 3,513,313 Less: Accumulated depreciation (38,108,420) (35,924,091) 57,509,486 57,690,948 TOTAL ASSETS $ 76,672,448 $ 75,974,145 The accompanying notes are an integral part of this statement. 1611R , Page 5 of 55 2020 2019 LIABILITIES AND NET POSITION CURRENT LIABILITIES Accounts and contracts payable $ 840,224 $ 668,335 Other accrued expenses 130,307 129,070 Capital lease payable, current portion 43,861 43,861 TOTAL CURRENT LIABILITIES 1,014,392 841,266 CURRENT LIABILITIES (Payable from Restricted Assets) Revenue bonds payable, current portion 769,000 901,000 Loans payable - SRF, current portion 36,866 35,931 Accrued revenue bond interest 81,322 81,322 Retainage payable 178,509 747,945 Customer deposits 1,446,449 1,363,382 TOTAL CURRENT LIABILITIES (Payable from Restricted Assets) 2,512,146 3,129,580 LONG-TERM LIABILITIES Line of Credit(LOC) - - Revenue bonds payable,net of current portion 30,311,969 31,080,969 Loans payable - SRF,net of current portion 426,093 463,175 Capital lease payable,net of current portion 109,654 153,515 Bond anticipation note 53,501 - Accrued compensated absences 169,984 149,074 TOTAL LONG-TERM LIABILITIES 31,071,201 31,846,733 Commitments - - TOTAL LIABILITIES 34,597,739 35,817,579 NET POSITION Net investment in capital assets 25,758,542 25,012,497 Restricted 3,321,903 2,182,580 Unrestricted 12,994,264 12,961,489 TOTAL NET POSITION 42,074,709 40,156,566 TOTAL LIABILITIES AND NET POSITION $ 76,672,448 $ 75,974,145 1 6 I 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 6 of 55 STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Years ended September 30, 2020 and 2019 2020 2019 OPERATING REVENUES Water service $ 3,954,033 $ 3,730,396 Wastewater service 5,578,513 5,313,841 Meter service charge 790,679 748,565 Late fees 71,125 74,960 Reconnect and transfer fees 99,205 107,280 Miscellaneous charges,fees and other income 135,117 110,627 Cross connection control fee 363,676 354,170 TOTAL OPERATING REVENUES 10,992,348 10,439,839 OPERATING EXPENSES Water treatment and distribution 1,998,670 1,900,862 Wastewater treatment 1,851,581 1,858,641 Wastewater collection 801,188 718,038 Customer service and administrative 2,040,490 1,648,632 Maintenance 481,130 451,254 TOTAL OPERATING EXPENSES PRIOR TO DEPRECIATION 7,173,059 6,577,427 Depreciation 2,184,329 1,875,143 TOTAL OPERATING EXPENSES 9,357,388 8,452,570 OPERATING PROFIT(LOSS) 1,634,960 1,987,269 NON-OPERATING REVENUES(EXPENSES) Interest income 144,795 149,616 Gain(loss)on disposal of fixed assets - 39,191 Interest expense (1,004,948) (1,040,450) Bad debt expense adjustment (19,370) (12,361) Covid 19 expense (33,166) - Other income including FEMA hurricane reimbursement 35,645 208,430 NET NON-OPERATING EXPENSES (877,044) (655,574) PROFIT(LOSS)BEFORE CAPITAL CONTRIBUTIONS 757,916 1,331,695 CAPITAL CONTRIBUTIONS USDA-grants 778,792 1,243,688 Customers 55,765 568,444 Developers 325,670 - TOTAL CAPITAL CONTRIBUTIONS 1,160,227 1,812,132 INCREASE(DECREASE)IN NET POSITION 1,918,143 3,143,827 NET POSITION-Beginning of the year as restated 40,156,566 37,012,739 NET POSITION-End of the year $ 42,074,709 $ 40,156,566 The accompanying notes are an integral part of this statement. 1611A3 IMMOKALEE WATER& SEWER DISTRICT STATEMENTS OF CASH FLOWS Years ended September 30, 2020 and 2019 2020 2019 CASH FLOWS FROM(USED IN)OPERATING ACTIVITIES: Cash received from customers $ 11,107,153 $ 10,603,364 Cash payments to suppliers and employees (6,965,228) (6,631,149) NET CASH PROVIDED BY OPERATING ACTIVITIES 4,141,925 3,972,215 CASH FLOWS FROM(USED IN)NONCAPITAL FINANCING: Other income received 32,187 33,715 Other expenses paid(Covid 19) (33,166)NET CASH PROVIDED BY(USED IN) NONCAPITAL FINANCING (979) 33,715 CASH FLOWS FROM(USED IN)CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (2,572,303) (2,050,514) Proceeds from sale of capital assets(gain) - 39,191 Principal paid on revenue bonds (901,000) (868,000) FEMA 3,458 174,715 Principal paid on loans-SRF (36,147) (34,491) Interest paid on bonds and other obligations (1,004,948) (1,040,450) Proceeds from special assessment collections 78,420 71,513 Proceeds from bond anticipation note(BAN) 53,501 - Proceedscapitallease - 219,307 Principal paid on capital lease (43,861) (21,931) Capital contributions-USDA 778,792 1,534,421 Membership/customer/developer connection fees/assessment 381,435 143,226 NET CASH PROVIDED BY(USED IN)CAPITAL AND RELATED FINANCING ACTIVITIES (3,262,653) (1,833,013) CASH FLOWS FROM(USED IN) INVESTING ACTIVITIES: Interest earned on investments 119,282 139,703 Purchase of certificate of deposit NET CASH PROVIDED BY(USED IN) INVESTING ACTIVITIES 119,282 139,703 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 997,575 2,312,620 CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR 14,838,329 12,525,709 CASH AND CASH EQUIVALENTS- END OF YEAR $ 15,835,904 $ 14,838,329 The accompanying notes are an integral part of this statement. lot 1A3 Page 7 of 55 2020 2019 RECONCILIATION OF OPERATING PROFIT TO NET CASH PROVIDED BY OPERATING ACTIVITIES: OPERATING PROFIT(LOSS) $ 1,634,960 $ 1,987,269 Adjustments to reconcile operating profit to net cash provided by operating activities: Depreciation(non cash) 2,184,329 1,875,143 Increase(decrease)in accrued compensated absences(non cash) 20,910 21,264 (Increase)decrease in accts.receivable,net of bad debt expense 50,411 (102,128) (Increase)decrease in other receivables (18,673) (5,019) (Increase)decrease in inventory (38,086) 59,877 (Increase)decrease in prepaid expenses 51,881 (6,455) Increase(decrease)in accounts and contracts payable 171,889 39,516 Increase(decrease)in other accrued expenses 1,237 14,214 Increase(decrease)in customer deposits 83,067 88,534 • TOTAL ADJUSTMENTS 2,506,965 1,984,946 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 4,141,925 $ 3,972,215 1 6 1 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 8 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Immokalee Water& Sewer District(the "District") was created by Laws of Florida, (Section) Chapter 78-494 on July 5, 1978, under the provisions of Florida Statute, Chapter 153.53 and 189.031 for the purpose of providing water and sewer services to Immokalee, an unincorporated area of eastern Collier County, Florida. The District's enabling legislation was repealed, updated, reenacted, and codified by Laws of Florida, Chapter 98-495 on May 28, 1998. On July 1, 2005, Laws of Florida, Chapter 2005-298 amended Laws of Florida, Chapter 98-495 by expanding the District's boundaries. On June 10, 2015, Laws of Florida, Chapter 2015-205 amended Laws of Florida, Chapter 98-495 to provide for salaries/honorariums for elected District Board of Commissioner members up to $250 each per month. The District owns, operates,maintains and regulates its water and sewer plants and systems as an independent special district of the State of Florida. The District is governed by a seven(7)member Board of Commissioners appointed by the Governor of the State of Florida. The Board of Commissioners (the "Board") administer the District, independent from any other local governing body and serve staggered four(4)year terms. Reporting Entity Immokalee Water& Sewer District is financially independent of all other units of government. It is responsible for financing its own activities and the payment of its own debt. The Board of Commissioners (the "Board")has the responsibility to employ management that is responsible for the day-to-day operations of the District. The Board has absolute authority over all funds included in the entity. Immokalee Water& Sewer District is not a component unit of any other governmental unit. The District adheres to Statement of Governmental Accounting Standards Board (GASB) Statement No. 14, "Financial Reporting Entity", as amended by GASB Statement Number 39, "Determining Whether Certain Organizations Are Component Units" and GASB Statement No. 61, "The Financial Reporting Entity: Omnibus -An Amendment of GASB Statements No. 14 and No. 34". These Statements require the financial statements of the District(the primary government)to include its component units, if any. A component unit is a legally separate agency for which the I 6 I 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 9 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Reporting Entity, continued primary government is financially accountable or organizations whose exclusion would cause the financial statements to be misleading because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the District's board, impose its will on the organization, the existence of a financial benefit/burden relationship or fiscal dependency. Based on this criteria, there are no component units included or required to be included in the District's financial statements. The Immokalee Water& Sewer District adheres to the requirements of Governmental Accounting Standards Board Statement Number 33 "Accounting and Financial Reporting for Non-Exchange Transactions." As such, capital related grant revenue is recorded as non-operating revenue and is reflected on the Statements of Revenues, Expenses and Changes in Net Position. The following is a summary of the significant accounting polices used in the preparation of these financial statements: The District adheres to the requirements of Governmental Accounting Standards Board Statement Number 34, "Basic Financial Statement and Management's Discussion and Analysis for State and Local Governments" (GASB 34). The government-wide financial statements along with the notes to the financial statements and the RSI, as noted below comprise the basic financial statements. The basic financial statements of the District are comprised of the following: - Government-wide financial statements -Notes to the financial statements -Required supplementary information other than MD&A 161 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 10 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government-Wide Financial Statements The government-wide financial statements (i.e., the Statements of Net Position and the Statements of Revenues, Expenses and Changes in Net Position) report information on all of the activities of the District and do not emphasize fund types. These business-type activities comprise the primary government. Business-type activities rely on user fees and charges to support its activities rather than taxes and intergovernmental revenues. The purpose of the government-wide financial statements is to allow the user to be able to determine if the District is in a better or worse financial position than the prior year. The District uses only one fund. Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Number 33 "Accounting and Financial Reporting for Nonexchange Transactions." Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability in the government-wide financial statements, rather than as expenditures. The Statements of Revenues, Expenses and Changes in Net Position demonstrates the degree to which the direct expenses of a given function are 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 or applicants who purchase,use or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital improvements of a particular function. 1bI1A3 IMMOKALEE WATER& SEWER DISTRICT Page 11 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government-Wide Financial Statements, continued Operating revenues are considered to be revenues generated by services performed and/or by fees charged such as water and sewer usage, connection, inspection fees and flow testing. Budgetary Information As required,the District uses only one fund to account for its activities and, therefore, it is considered a major fund. The District has elected to report budgetary comparison of its major fund as required supplementary information(RSI). Fund Accounting The District's financial practices are based upon fund accounting concepts. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts, recording cash and other financial resources, together with all related liabilities and net assets (fund equity balances) and changes therein. The accompanying financial statements reflect Business - Type Activities and are classified as a single Proprietary Fund Type -Enterprise Fund. This fund accounts for the cost of services provided by the District as well as the revenues earned by the District. Business-Type Activities-Proprietary Fund Type Enterprise Fund- An enterprise fund is used to account for operations (1) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or(2) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance,public policy, management control, accountability, or other purposes. 161 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 12 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Measurement Focus Proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, assets and liabilities associated with the operation of these funds are included on the statements of net position. Proprietary fund-type operating statements present increases (i.e. revenues) and decreases (i.e. expenses) in total net position. Operating revenues and expenses result from providing water distribution as well as wastewater collection and treatment to members within the District's boundaries. Generally, other revenues and expenses are treated as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Basis of Accounting The proprietary fund type is presented on the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded in the period earned and expenses are recorded in the period the liability is incurred. Budgetary Process The District operates under a fixed budget for control purposes. The budget and amendments, if any, are approved by the Board of Commissioners. The budget is prepared on a Non-GAAP accrual basis,whereby items such as capital expenditures and debt principal payments are budgeted as expenses. The annual budget serves as the legal authorization for expenditures. Expenditures cannot legally exceed the total amount budgeted. All budget amendments,which change the legally adopted total appropriation, are approved by the Board. The District follows these procedures in establishing budgetary data. 1. During the summer of each year, management submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing on October 1. The operating budget includes proposed expenditures and the means of financing them. 1 6 I i A 3 IMMOKALEE WATER& SEWER DISTRICT Page 13 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgetary Process, continued 2. Public hearings are conducted to obtain citizen comments. 3. The budget is adopted by approval of the Board of Commissioners. 4. Budget amounts, as shown in these financial statements, are as originally adopted or as amended by the Board of Commissioners. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America, except as reflected in the supplementary information and as noted above. 6. The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end. The Board of Commissioners did amend the budget during the fiscal year ended September 30, 2020 to increase total budgeted net revenue by $230,481 and an increase in budgeted expenses (including net non-operating revenue and expense) by $230,481. Cash For the purpose of the Statements of Cash Flows,the District considers all highly liquid investments, including both unrestricted and restricted, with a maturity of three months or less, when purchased,to be a cash equivalent, in accordance with District policy. Accounts Receivable/Allowance for Doubtful Accounts Receivables include user fees for water and wastewater services provided as part of the operations by the District. The accounts receivable are recorded net of the estimated allowance for doubtful accounts. The District operates using an allowance and collection policy that ultimately provides for discontinuance of water service due to nonpayment by the user. The policy also provides for application of the respective user's security deposit upon certain criteria. Additionally,the policy requires a user landlord to satisfy any outstanding user fees (tenant)prior to allowing services to a future tenant for that landlord. 1, 6I 1 A3 IMMOKALEE WATER& SEWER DISTRICT Page 14 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Inventory Inventory consists of utility system parts and hardware supplies at year end. The inventories are valued at cost,which approximates market. The method used to determine the value of the inventory is the FIFO (first in-first out)method. Capital Assets and Depreciation Capital assets acquired by proprietary funds are reported in those funds at historical cost or estimated historical cost if actual historical cost is not available. Donated assets are reported at estimated fair market value at the time received. Certain infrastructure-type fixed assets consisting of certain improvements such as roads, curbs, gutters and lighting systems have not been capitalized, as the District does not generally incur such expenditures. However, the systems' distribution and collection lines and pumps are capitalized and depreciated as part of the overall system. Assets acquired with a cost or fair value of$5,000 or more and a useful life of 1 year or more are capitalized. Maintenance, repairs and minor renovations are not capitalized. The acquisition of land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred. The capital assets are depreciated using the straight-line method of depreciation over the following estimated useful lives: Asset Years Buildings/Plant and Plant Equipment 10-40 Capital Improvements, Distribution Lines 5-40 Furniture, Fixtures and Equipment 3-20 Vehicles 3-7 Restricted Assets These monies are restricted by the applicable debt covenants and grant agreements or as customer deposits. Ib11A3 IMMOKALEE WATER& SEWER DISTRICT Page 15 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Vacation Leave Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund. The method of accrual is in accordance with Statement of Governmental Accounting Standards Board Number 16, "Accounting for Compensated Absences" (GASB 16). This Standard provides for the measurement of accrued vacation leave using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences such as FICA and retirement benefits only. Accrued unused vacation is accrued and paid at termination. Accrued unused sick time is not paid at termination. Encumbrances Encumbrance accounting,under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because at present it is not considered necessary to assure budgetary control or to facilitate effective cash planning and control. Membership (Connection)Fees Water(connection) service installation fees are dedicated for the system expansion and are treated as contributed capital but recognized as revenue when received(due to the District) by the District. Income Taxes The District, as a governmental unit, is exempt from income taxes under current provisions of the Internal Revenue Code and Florida State Law. Fund Equity Grants, entitlements or shared revenues which are externally restricted for capital acquisition or construction are treated as contributed capital but recorded as revenue when due to the District. Contributed or donated fixed assets are also treated as contributed capital but recorded as revenue when due the District. Reserved retained earnings represent those portions of fund equity legally restricted by debt covenants for current and future debt service. 161 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 16 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Use of Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts in the financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on the results of operations or net assets. Subsequent Events Subsequent events have been evaluated through May 19, 2021, which is the date the basic financial statements were available to be issued. Application of FASB Pronouncements to Proprietary Funds In accordance with Governmental Accounting Standards Board (GASB) Statement No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting", the District has elected not to apply those FASB Statements and Interpretations issued after November 30, 1989. Only GASB pronouncements issued after this date will be adopted by the District. Accounting Pronouncement GASB Statement No. 42 The District adheres to Government Accounting Standards Board Statement No. 42, "Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries" (GASB Statement No. 42). GASB Statement No. 42 establishes accounting and financial reporting standards for impairment of capital assets. 1 61 1 A3 IMMOKALEE WATER& SEWER DISTRICT Page 17 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Accounting Pronouncement GASB Statement No. 42, continued A capital asset is considered impaired when its service utility has declined significantly and unexpectedly. Governments are required to evaluate prominent events or changes in circumstances affecting capital assets to determine whether impairment of a capital asset has occurred. Such events or changes in circumstances that may be indicative of impairment include evidence of physical damage, enactment or approval of laws or regulations or other changes in environmental factors, technological changes or evidence of obsolescence, changes in the manner or duration of a capital asset, and construction stoppage. A capital asset generally should be considered impaired if both(a) the decline in service utility of the capital asset is large in magnitude and(b)the event or change in circumstance is outside the normal life cycle of the capital asset. The District incurred no capital asset impairment activity for the years ended September 30, 2020 and 2019. NOTE B - CASH AND INVESTMENTS At September 30, 2020 and 2019, cash and cash equivalents (including both restricted and unrestricted cash and cash equivalents) were $15,835,904 and $14,838,329 respectively, including unrestricted cash on hand of$3,400 and $3,400, respectively. Deposits The District's deposit policy allows deposits to be held in demand deposits, savings accounts, certificates of deposit, direct obligations of the U.S. Treasury,Local Government Surplus Trust Funds, direct obligations of Federal agencies and instrumentalities and money market accounts. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act." i 6 I 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 18 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE B - CASH AND INVESTMENTS, CONTINUED Deposits, continued Insured/ Bank Carrying Collateralized Balance Amount September 30, 2020 Unrestricted Depository accounts $ 763,039 $ 763,039 $ 779,310 Money market 10,356,218 10,356,218 10,356,218 11,119,257 11,119,257 11,135,528 Restricted Depository accounts 1,460,184 1,460,184 1,460,184 Money market 3,236,792 3,236,792 3,236,792 4,696,976 4,696,976 4,696,976 $ 15,816,233 $ 15,816,233 $ 15,832,504 September 30, 2019 Unrestricted Depository accounts $ 696,192 $ 696,192 $ 708,259 Money market 10,030,003 10,030,003 10,030,003 10,726,195 10,726,195 10,738,262 Restricted Depository accounts 1,355,957 1,355,957 1,355,957 Money market 2,755,710 2,755,710 2,740,710 4,111,667 4,111,667 4,096,667 $ 14,837,862 $ 14,837,862 $ 14,834,929 Unrestricted and Restricted Deposits The District's deposits were categorized to give an indication of the level of risk assumed by the District at year-end. All deposits were fully insured by Federal Depository Insurance or collateral pursuant to the Public Depository Act(Florida Statute 280). As such, the District resolved to abide by Florida Statute 218.415(17). 16I1A3 IMMOKALEE WATER& SEWER DISTRICT Page 19 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 and 2019 NOTE B- CASH AND INVESTMENTS, CONTINUED Restricted Deposits Restricted deposits are required by the District's outstanding debt agreements as well as grant and other agreements. Restricted deposits also include customer deposits. Restricted deposits (carrying amounts) consist of the following at September 30: 2020 2019 Construction account $ 112,310 $ 51,234 Bond sinking fund reserve 2,422,057 2,075,595 Department of Environmental Protection- Deep Well Injection Reserve 239,737 237,687 Customer deposits 1,457,684 1,353,457 Loan debt service 29,397 25,184 Special assessment-ArrowHead 409,735 353,510 Special assessment- SR 29 26,056 - $ 4,696,976 $ 4,096,667 Investments Florida Statutes and the District's investment policy authorize investments in certificates of deposit(CD's). Certificates of deposit whose values exceed the amount of the Federal Depository Insurance are collateralized pursuant to the Public Depository Security Act of the State of Florida. The District had$1,135,999 and $1,110,486 (bank and book balance) invested in certificates of deposit at September 30, 2020 and 2019, respectively. The CDs carried interest rates of 1.51% and 2.96%at September 30, 2020. The CDs mature on July 17, 2021 and December 4, 2022, respectively. NOTE C - ACCOUNTS RECEIVABLE,NET Accounts receivable, net, consist of the following at September 30: 2020 2019 Customer receivables (water/sewer) $ 710,787 $ 780,568 Less allowance for doubtful accounts (69,743) (69,743) Net receivables $ 641,044 $ 710,825 1 6 I 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 20 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE D- GRANT AND ASSESSMENT RECEIVABLES Grant and assessment receivables consisted of the following at September 30: 2020 2019 Grants receivable $ - $ - Special Assessments 1,137,073 1,215,493 $ 1,137,073 $ 1,215,493 The District levied a special assessment of$1,060,900 on system users benefiting from the system improvements (ArrowHead) funded by the $4,932,000 Series 2013 Revenue Bonds during the year ended September 30, 2014. The assessment collections are restricted to principal reduction of the Series 2013 Revenue Bonds. The assessment was initially levied through the Collier County Tax Collector on November 1, 2013. The assessment is a one time assessment payable in full or over 20 years by the affected system users. The special assessment had the following activity for the years ended September 30: 2020 2019 Balance, October 1, as restated $ 743,756 $ 790,275 Assessment levied - - Collections (53,426) (46,519) $ 690,330 $ 743,756 The District levied a special assessment of$496,731 on system users benefiting from system improvements on State Road 29 during the year ended September 30, 2019. The assessment was initially levied through the Collier County Tax Collector on November 1, 2018. The assessment is a one time assessment payable in full or over 20 years by the affected system users. The special assessment had the following activity for the years ended September 30: 2020 2019 Balance, October 1, as restated $ 471,737 $ - Assessment levied - 496,731 Collections (24,994) (24,994) $ 446,743 $ 471,737 1611A3 IMMOKALEE WATER& SEWER DISTRICT Page 21 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE E - CAPITAL ASSET ACTIVITY The following is a summary of changes in capital asset activity for the year ended September 30, 2020: Balance Balance October 1 Adjustments/ September 30 2019 Additions Retirements Reclassifications 2020 Capital Assets Not Being Depreciated: Land $ 2,645,941 $ - $ - $ - $ 2,645,941 Construction in Progress 21,923,826 1,390,104 - (22,349,037) 964,893 Total Capital Assets Not Being Depreciated 24,569,767 1,390,104 - (22,349,037) 3,610,834 Capital Assets Being Depreciated: Buildings&Improvements 1,805,024 - - (134,248) 1,670,776 Water and Wastewater Plant and Systems 63,726,935 589,848 - 22,483,285 86,800,068 Machinery&Equipment 3,513,313 22,915 - - 3,536,228 Total Capital Assets Being Depreciated 69,045,272 612,763 - 22,349,037 92,007,072 Less Accumulated Depreciation: Buildings&Improvements (894,945) (44,210) - 15,765 (923,390) Plant and Systems (31,941,307) (1,908,062) - (925,811) (34,775,180) Machinery&Equipment (3,087,839) (232,057) - 910,046 (2,409,850) Total Accumulated Depreciation (35,924,091) (2,184,329) - - (38,108,420) Capital Assets,Net $ 57,690,948 $ (181,462) $ - $ - 57,509,486 Related debt (31,750,944) Net Investment in Capital Assets $ 25,758,542 1 I1A3 IMMOKALEE WATER& SEWER DISTRICT Page 22 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE E - CAPITAL ASSET ACTIVITY, CONTINUED The depreciation expense for the years ended September 30, 2020 and 2019 was $2,184,329 and$1,875,143, respectively. During the years ended September 30, 2020 and 2019,the District continued construction on its system-wide improvements. During the year ended September 30, 2018, the District early implemented GASB Statement No. 89, "Accounting for Interest Cost Incurred Before the End of a Construction Period". The implementation of the pronouncement requires the interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statement prepared using the economic resources measurement focus. As a result, no interest costs were capitalized on the project for fiscal years ended September 30, 2020 and 2019. NOTE F- RETIREMENT PLANS Plan Description and Provisions Section 401(a) Plan The District historically offered all its employees the opportunity to participate in an individual government employer-sponsored defined contribution 414(h) Money Purchase Pick-Up Retirement Plan and Trust(the "Plan"). Effective January 1, 2009, the District restated its retirement plan. As such, the restated plan qualifies as a 401(a) Money Purchase defined contribution plan. The Plan is administered by a third party administrator. The employer funds substantially all the administrative costs of the Plan. The Plan allows all employees to participate after three(3) months creditable employment. Employees who elect to participate must contribute three (3%)percent of their gross wages, excluding overtime compensation,up to $3,000. If the employee desires to defer more than$3,000 they can defer those amounts into the available IRC Section 457 Plan. The employer is required to contribute six(6%) percent of the respective participating employees' gross wages, excluding overtime compensation. Employer contributions into the 401(a) Plan are only required for those participating employees who contribute three (3%) of their gross wages, as defined. During the years ended September 30, 2020, 2019, and 2018,the District contributed 100% of its required contributions. 161 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 23 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE F- RETIREMENT PLANS, CONTINUED Plan Description and Provisions, continued Section 401(a) Plan The District's gross contributions (employer portion)to the Plan for the years ended September 30, 2020, 2019 and 2018 were $157,046, $142,584, and $132,710 respectively. Employee contributions to the Plan were $78,363, $73,939 and $61,450, respectively for the years ended September 30, 2020, 2019, and 2018, respectively. There were no forfeitures used to reduce employer contributions. Benefits available are limited to the value of the respective employee's individual account. Individuals direct the investment of their individual account. Benefits vest at a rate of twenty (20%)percent per year of creditable service and vest in full after five years of creditable service. A creditable year of service is defined as a year in which an eligible participant completes 1,000 hours of service. Employees immediately vest in their contributions. Normal retirement shall be considered to be attainment of age 55 and completion of five(5) creditable years of service. Employees who fail to complete five (5)years creditable service vest in their respective accounts at twenty (20%)percent per completed year of creditable service. The Plan requires retirement at April 1 following the date the participant reaches age 70 1/2. The Plan provides that forfeitures of employer contributions by non-vested terminated employees are to be used to offset future employer contributions. Therefore, employer contributions made to employee accounts who fail to complete the respective year revert back to the employer. Benefits available to the employee from the Plan are those generated from the respective employees account. The employees account may lose principal. The District has no liability for losses, if any, incurred by the plan. Loans to participants are permitted from the participant's specific account. Participants should refer to the complete plan document for specific detail of the Plan. Section 457 Plan Effective November 1, 2012,the District approved a resolution to establish a Deferred Compensation Plan to be made available to all eligible District employees pursuant to Section 457 of the Internal Revenue Code (IRC). The Plan is administered by a third party administrator. The employer funds substantially all administrative costs of the Plan. All contributions made to the Plan are voluntary deductions from employees' wages,with no contributions to the Plan made by the District. Employees are eligible to participate after 3 months employment and attainment of age 18. Deferral amounts are limited per IRS Code Section 457(e)(15). For the year ended September 30, 2020 the deferral limit to the Plan was $19,500. Employees are immediately vested in their salary deferral amounts. 1 6 I 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 24 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE G- REVENUE BONDS PAYABLE The following is a summary of the District's revenue bonds payable for the years ended September 30: Amount Balances-September 30,2018 $ 32,849,969 Principal retired (868,000) Bonds issued - Balances-September 30,2019 31,981,969 Principal retired (901,000) Bonds issued - Balances-September 30,2020 $ 31,080,969 Revenue Bonds payable is comprised of the following at September 30: 2020 2019 $5,300,000 Series A,Water and Sewer Revenue Bonds, issued July 1981,through USDA Rural Development. Principal is payable annually beginning September 1, 1983 through September 1,2020;interest payable annually at the rate of 5%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. $ - $ 120,000 $722,715 Series B,Water and Sewer Revenue Bonds, issued July 1981,through USDA Rural Development. Principal is payable annually beginning September 1, 1983 through September 1,2020;interest payable annually at the rate of 5%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. - 43,000 $635,000 Series 1985,Water and Sewer Revenue Bonds,issued May 1987,through USDA Rural Development. Principal is payable annually beginning September 1, 1989 through September 1,2026;interest payable annually at the rate of 5%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 165,969 191,969 1 6 I 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 25 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 and 2019 NOTE G- REVENUE BONDS PAYABLE, CONTINUED 2020 2019 $3,750,000 Series 1989,Water and Sewer Revenue Bonds,issued October 1991,through USDA Rural Development. Principal is payable annually beginning September 1, 1994 through September 1,2031;interest payable annually at the rate of 5%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 1,846,000 1,970,000 $250,000 Series 1990,Water and Sewer Revenue Bonds,issued October 1991,through USDA Rural Development. Principal is payable annually beginning September 1, 1994 through September 1,2031;interest payable annually at the rate of 5%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 123,000 131,000 $4,313,200 Series 1996,Water and Sewer Revenue Bonds,issued August 1996,through USDA Rural Development. Principal is payable annually beginning September 1, 1998 through September 1,2035;interest payable annually at the rate of 5.125%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 2,674,000 2,791,000 $802,000 Series 1998,Water and Sewer Revenue Bonds,issued October 1998,through USDA Rural Development. Principal is payable annually beginning September 1,2001 through September 1,2038;interest payable annually at the rate of 4.5%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 541,000 560,000 1 6 I 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 26 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE G- REVENUE BONDS PAYABLE, CONTINUED 2020 2019 $2,252,000 Series 2001,Water and Sewer Refunding Bonds,issued December 2001,through USDA Rural Development. Principal is payable annually beginning September 1,2004 through September 1,2041;interest payable annually at the rate of 4.5%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 1,673,000 1,720,000 $3,366,200 Series 2008,Water and Sewer Revenue Bonds,issued March 28,2008 through USDA Rural Development. Principal is payable annually beginning September 1,2008 through September 1,2047;interest payable annually at the rate of 4.375%;collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 2,869,000 2,924,000 $4,932,000 Series 2013,Water and Sewer Revenue Bonds,issued March 1,2013,through USDA Rural Development. Principal and interest are payable annually beginning September 1,2016 through September 1,2052;interest payable annually at the rate of 2.5%;collateralized by the gross operating revenues of the system and a special assessment levied on the lands benefited by the system. 4,619,000 4,676,000 $17,134,000 Series 2018 A&B,Water and Sewer Revenue Bonds,issued May 3,2018,through USDA Rural Development. Interest only due September 1, 2018,then principal and interest are payable annually beginning September 1,2019 through September 1, 2057;interest payable annually at the rate of 2.25%; collateralized by the gross operating revenues of the system and a special assessments levied on the lands benefited by the system. 16,570,000 16,855,000 31,080,969 31,981,969 Less: current portion (due in one year) (769,000) (901,000) Long-term portion $ 30,311,969 $ 31,080,969 1 6 I 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 27 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE G- REVENUE BONDS PAYABLE, CONTINUED Bond Resolutions The bond resolutions established certain accounts and determined the order in which certain revenues are to be deposited into those accounts. In addition,there are various other covenants established by the official statements and District resolutions, including such items as debt service coverage,reporting requirements, and maintenance of facilities. Management believes that it has complied, in all material respects,with these covenants. All required Reserve balances at September 30, 2020 and 2019,were maintained and are reflected as restricted deposits within these financial statements. A summary of revenue bond debt service requirements to maturity is as follows September 30: Years Ending September 30 Principal Interest Total 2021 $ 769,000 $ 957,240 $ 1,726,240 2022 798,000 928,853 1,726,853 2023 828,000 899,305 1,727,305 2024 859,000 868,496 1,727,496 2025 892,000 836,410 1,728,410 2026 -2030 4,815,969 3,667,640 8,483,609 2031 -2035 5,847,000 2,721,295 8,568,295 2036 - 2040 3,932,000 1,893,116 5,825,116 2041 - 2045 3,908,000 1,319,329 5,227,329 2046 -2050 3,807,000 791,511 4,598,511 2051 -2055 3,339,000 362,188 3,701,188 2056 - 2057 1,286,000 43,560 1,329,560 $ 31,080,969 $ 15,288,943 $ 46,369,912 Revenue bond debt interest expense was $992,500 and$1,026,345 for the years ended September 30, 2020 and 2019,respectively. No revenue bond debt interest expense was capitalized in either year. 1611A3 IMMOKALEE WATER& SEWER DISTRICT Page 28 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE H- LOANS PAYABLE - SRF The following is a summary of the District's loans payable activity for the year ended September 30: DEP.SRF DEP.SRF DW110120 DW110121 Total Balance-September 30,2018 $ 297,668 $ 235,929 $ 533,597 Principal retired (18,855) (15,636) (34,491) Balance-September 30,2019 278,813 220,293 499,106 Principal retired (20,129) (16,018) (36,147) Balance-September 30,2020 $ 258,684 $ 204,275 $ 462,959 The loans payable - SRF activity for the year ended September 30 is as follows: 2020 2019 $419,681 loan payable representing 15%of a grant/loan payable to Florida Department of Environmental Protection.The maximum amount of the loan is $2,735,112,in which the FDEP has forgiven$2,324,845 of the note. The loan also required the District to capitalize interest of$9,414 during the year ended September 30,2011. Interest accrues at 2.71%.Principal and interest is payable in forty(40)semi-annual payments of$13,660 in May and November beginning November 15,2011. Final payment due May 2031.The loan is collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. $ 258,684 $ 278,813 $335,504 loan payable to Florida Department of Environmental Protection. The loan requires forty(40)semi-annual payments of$10,637 in November and May beginning November 15,2011.The loan required the District to capitalize interest of$7,346 during the year ended September 30,2011. Final payment date May 2031. Interest accrues at 2.43%. The loan is collateralized by the gross operating revenues of the system and assessments levied on the lands benefited by the system. 204,275 220,293 Total loans payable 462,959 499,106 Less current portion: (36,864) (35,931) $ 426,093 $ 463,175 1 6 I 1 A 3 IMMOKALEE WATER& SEWER DISTRICT Page 29 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 and 2019 NOTE H- LOANS PAYABLE - SRF, CONTINUED Years Ending September 30 Principal Interest Total 2021 $ 36,866 $ 11,729 $ 48,595 2022 37,825 10,770 48,595 2023 38,810 9,785 48,595 2024 39,820 8,775 48,595 2025 40,856 7,738 48,594 2026-2030 220,799 22,177 242,976 2031 47,983 612 48,595 S 462,959 $ 71,586 S 534,545 Loans payable - SRF related interest expense was $12,448 and$14,105 for the years ended September 30, 2020 and 2019, respectively. No loan interest costs were capitalized in either year. NOTE I- CAPITAL LEASE On October 31, 2018,the District entered into a sixty(60)month, 0%interest capital lease agreement , for the lease of eight(8) vehicles, in the amount of $219,307. Monthly payments are $3,655 plus monthly maintenance fees. Payments began in April, 2019 with final payment due in March 2024. The lease agreement is collateralized by the respective eight(8)vehicles. The following is a summary of the District's capital lease payable for the years ended September 30: Amount Balances-September 30,2018 $ - Proceeds 219,307 Principal payments (21,931) Balances-September 30,2019 197,376 Proceeds - Principal payments (43,861) Balances-September 30,2020 $ 153,515 The cost of capital assets under lease was $219,307 at September 30, 2020. The accumulated depreciation was $65,792 and the current year depreciation expense was $25,586 on those capital assets. 1 bI 1. A3 IMMOKALEE WATER& SEWER DISTRICT Page 30 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE I- CAPITAL LEASE, CONTINUED A summary of capital lease debt service requirements to maturity is as follows at September 30: Years Ending September 30 Principal Interest Total 2021 $ 43,861 $ - $ 43,861 2022 43,861 - 43,861 2023 43,861 - 43,861 2024 21,932 - 21,932 $ 153,515 $ - $ 153,515 Interest expense related to the capital lease was $0 and$0 for the years ended September 30, 2020 and 2019,respectively. NOTE J- LINE OF CREDIT • On October 15, 2018, the District renewed an agreement with a financial institution to establish an uncollateralized$1 million revolving Line of Credit(LOC)to be used for emergency situations. The LOC is available, although the District had not borrowed any funds from the LOC for the years ended September 30, 2020 or 2019. The LOC required interest paid quarterly and principal at maturity. Interest accrues at Prime Rate plus .50%with a floor rate of 3.75%. The LOC was due in full on October 15, 2020 but was renewed through October 15, 2022. Interest rate at September 30, 2020 was 3.75%. NOTE K- BOND ANTICIPATION NOTE On May 4, 2020 the District entered into a Bond Anticipation Note (BAN) with a financial institution to provide interim construction financing for improvements to water facilities, clarifier project, in the amount of$944,000. Interest payable at 2.15% is due every six months. The BAN requires accrued interest and principal payable every six(6)months and upon maturity. The note is collateralized by a commitment from the USDA Rural Development Program. At September 30, 2020 and 2019, the BAN payable balance was $53,501 and$0, respectively. Interest expense for the years ended September 30, 2020 and 2019 was $0 and$0 and no loan interest costs were capitalized. Upon completion of the related construction project, the BAN will be replaced by permanent financing from USDA by the $944,000 Series 2021, Water and Sewer Revenue Bonds. 161 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 31 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE L - ACCRUED COMPENSATED ABSENCES Employees of the District are entitled to paid vacation based on length of service and job classification at termination. Unused accrued sick time is not paid at termination. Accrued compensated absences had the following activity for the year ended September 30: Amount Accrued compensated absences, September 30,2018 $ 127,810 Net Increase 21,264 Accrued compensated absences, September 30,2019 149,074 Net Increase 20,910 Accrued compensated absences, September 30,2020 $ 169,984 NOTE M -CONTINGENCIES Litigation The District, from time to time, is involved as a defendant or a plaintiff in certain litigation and claims arising in the ordinary course of operations. As such, the District maintains third party insurance coverages. In the opinion of legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the District. The District intends to vigorously defend all claims unless first settled. Potential losses, if any, may be recoverable through insurance coverages. Federal Grants Grant monies received by the District are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the District does not believe that such disallowances, if any,would have a material effect on the financial position of the District. The operations of the District are dependent upon the condition of the District's facilities. These facilities are currently being rehabilitated and improved substantially through the receipt of federal funding. Loss or reduction of such funding would have a material effect on the operations of the District. 1611A3 IMMOKALEE WATER& SEWER DISTRICT Page 32 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE N - PRIOR PERIOD ADJUSTMENT Restatement of Net Position The ending net position of the District for the year ended September 30, 2019 was adjusted as follows: Amount Net Position, September 30,2019 as originally stated $ 39,841,973 Adjustment to include refund payable for prior year billing error (182,138) Adjustment to include receivable for assessment made in the prior year 496,731 Net Position,September 30,2019,as restated $ 40,156,566 A correction was posted for a fiscal year 2019 billing system error. A special assessment levied on system users for the year ended September 30, 2019 was not originally recorded during the year ended September 30, 2019. The effect of the prior period adjustment is to increase assets and capital contributions for the fiscal year ended September 30, 2019. NOTE O - NET POSITION (NET ASSETS) Restricted net assets consist of the following at September 30: 2020 2019 Restricted assets $ 5,834,049 $ 5,312,160 Less: liabilities payable from restricted cash (2,512,146) (3,129,580) $ 3,321,903 $ 2,182,580 Unrestricted net assets consist of the following at September 30: 2020 2019 Designated for emergencies $ 841,000 $ 761,000 Designated for operations 4,138,975 3,308,656 Designated for vehicle replacement 464,495 527,483 Designated for capital equipment 337,557 546,416 Designated for maint.reserve-wastewater 3,549,492 3,069,382 Designated for maint.reserve-water 824,480 412,240 Total Designated 10,155,999 8,625,177 Undesignated 2,838,265 4,336,312 Total unrestricted net assets $ 12,994,264 $ 12,961,489 1 6I 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 33 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 and 2019 NOTE P- 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; injuries to employees, and natural disasters. Insurance programs for general/professional liability, automobile, and property are through commercial insurance. The District retains the risk of loss, on insured claims, up to a deductible amount(ranging from 0%to 5% of total insured value depending on the type of loss)with the risk of loss in excess of this amount transferred to the insurance carrier. Limits of general liability are $1,000,000 per occurrence. The District is third party insured for employee health as well as workers' compensation. NOTE Q- COMMITMENT On July 23, 2019, the USDA obligated funds to the District for a$2,760,236 Clarifier Rehabilitation Project to be funded with a$944,000 Series 2021 Water and Sewer Revenue bonds and a $765,000 grant. The remaining funds will be provided by the District. The project began in June 2020 and is estimated to be completed in December 2021. The Project is to be funded initially by the $944,000 BAN. As of September 30, 2020, $53,501 was expended for this project. NOTE R- SUBSEQUENT EVENT Subsequent to year end,the District approved and submitted a proposed local bill (HB1637)to the State of Florida Legislature to amend the Laws of Florida, Chapter 98-495 to clarify that existing Board members whose term has expired may serve until a successor Board member is appointed. 16I1A3 IMMOKALEE WATER& SEWER DISTRICT Page 34 of 55 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 and 2019 NOTE S- COVID 19 In early March 2020,the World Health Organization classified the coronavirus outbreak "COVID-19" as a global pandemic, and it,unfortunately, continues to spread. Business continuity, including supply chains and consumer demand across a broad range of industries and countries, have been severely impacted, as governments and their citizens take significant and unprecedented measures to mitigate the consequences of the pandemic. On April 1, 2020, Florida Governor, Ron DeSantis ordered all Floridians to stay home, to lock down the State against the Coronavirus. Certain governmental activity was cancelled and/or severely limited. The District has adapted its operations to accommodate the current environment. However, the full impact of the COVID-19 outbreak continues to evolve as of the date of this report. This pandemic has adversely affected global economic activity and greatly contributed to instability in financial markets. Management is actively monitoring the local situation on its financial condition, liquidity, operations, donors, industry, and workforce. Given the daily evolution of COVID-19 and the global and local responses to curb its spread,the District is not able to estimate the future effects of COVID-19 on its results of operation, financial condition, or liquidity for fiscal year 2020-21. 6I 1A3 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A 1611A3 IMMOKALEE WATER& SEWER DISTRICT Page 35 of 55 SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND ACTUAL WITH RECONCILIATION TO GAAP BASIS Year ended September 30, 2020 Original Final Budget Budget Actual Variance OPERATING REVENUES Water service $ 3,857,743 $ 4,033,420 $ 3,954,033 $ (79,387) Wastewater service 5,526,180 5,635,837 5,578,513 (57,324) Meter service charge 768,334 790,679 790,679 - Late fees 73,012 71,125 71,125 - Reconnect and transfer fees 111,173 99,205 99,205 - Miscellaneous charges,fees and other income 83,873 161,171 135,117 (26,054) Cross connection control fee 325,004 363,676 363,676 - TOTAL OPERATING REVENUES 10,745,319 11,155,113 10,992,348 (162,765) OPERATING EXPENSES WATER PLANTS/DISTRIBUTION Salaries and wages 781,568 700,109 699,674 435 Overtime 98,990 15,215 15,215 - FICA 67,363 56,828 56,828 - Unemployment taxes 800 796 796 - Employer pension contribution 46,894 41,221 41,221 - Health/life insurance 283,115 224,373 210,215 14,158 Workers'compensation 41,711 23,668 23,668 - Travel and training 26,000 13,958 13,958 - Telephone and fax 7,954 11,432 11,432 - Electric 184,488 173,365 167,121 6,244 General liability insurance 21,635 22,046 22,046 - Comprehensive auto insurance 10,667 8,685 8,685 - Other insurance 84,459 79,191 79,191 - Repairs and maintenance 161,522 154,999 156,234 (1,235) Water meter and register replacements - - 127,509 (127,509) Other contract services 38,433 33,703 29,668 4,035 Vehicle fuel 29,722 29,980 29,980 - Vehicle maintenance 28,020 7,396 7,396 - Vehicle Lease 3,355 6,271 283 5,988 Licenses and permits 300 5,035 5,035 - Chemicals 93,207 90,452 90,452 - Other materials 84,200 176,329 176,329 - Laboratory fees 30,148 21,005 21,005 - Uniforms/clothing allowance 3,900 2,633 2,633 - Memberships/periodicals/books 3,487 2,096 2,096 - SUB-TOTAL WATER PLANTS/DISTRIBUTION 2,131,938 1,900,786 1,998,670 (97,884) The accompanying notes are an integral part of this statement. 161 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 36 of 55 SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED Year ended September 30, 2020 Original Final Budget Budget Actual Variance WASTEWATER PLANT Salaries and wages 610,279 650,583 650,583 - Overtime 28,549 10,439 10,439 - FICA 48,870 50,048 50,048 - Unemployment taxes 760 684 648 36 Employer pension contribution 36,617 32,188 32,188 - Health/life insurance 186,289 162,522 151,686 10,836 Workers'compensation 20,324 12,706 12,706 • - Travel and training 18,000 2,551 2,551 - Telephone and fax 4,177 1,863 1,863 - Electric 238,300 202,416 208,667 (6,251) Section 8 electric 7,410 3,893 3,893 - General liability insurance 21,635 22,046 22,046 - Comprehensive auto insurance 4,572 3,722 3,722 - Other insurance 79,204 74,680 74,680 - Section 8 field maintenance 18,066 - - - Repairs and maintenance 236,011 156,224 188,083 (31,859) Section 8 repairs 39,749 8,400 8,400 - Other contract services 13,288 16,771 25,444 (8,673) Vehicle fuel 8,854 9,303 9,303 - Vehicle maintenance 8,055 1,555 1,555 - Vehicle Lease 2,460 4,570 260 4,310 Licenses and permits 14,003 1,225 1,225 - Chemicals 126,803 104,284 104,284 - Other materials 56,338 32,805 32,805 - Laboratory fees 52,075 50,105 50,105 - Residuals management 241,421 200,042 200,457 (415) Uniforms/clothing allowance 2,400 2,154 2,154 - Memberships/periodicals/books 3,464 1,786 1,786 - SUB-TOTAL WASTEWATER PLANT 2,127,973 1,819,565 1,851,581 (32,016) The accompanying notes are an integral part of this statement. 1 6 1 i A 3 IMMOKALEE WATER& SEWER DISTRICT Page 37 of 55 SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED Year ended September 30, 2020 Original Final Budget Budget Actual Variance WASTEWATER COLLECTION Salaries and wages 394,063 373,109 372,884 225 • Overtime 38,867 25,130 25,130 - FICA 33,119 30,370 30,370 - Unemployment taxes 325 307 307 - Employer pension contribution 23,644 21,811 21,811 - Health/life insurance 110,785 109,376 102,383 6,993 Workers'compensation 13,774 7,822 7,822 - Travel and training 12,000 8,741 8,741 - Telephone and fax 2,009 5,000 5,000 - Electric 34,343 36,059 36,059 - General liability insurance 21,633 22,045 22,045 - Comprehensive auto insurance 6,095 4,963 4,963 - Other insurance 3,227 1,545 1,545 - Repairs and maintenance 105,031 86,781 90,981 (4,200) Other contract services 10,487 8,945 7,265 1,680 Vehicle fuel 15,627 8,294 8,294 - Vehicle maintenance 14,793 4,848 4,848 - Vehicle Lease 8,270 15,415 307 15,108 Licenses and permits 4,000 559 559 - Chemicals - 14,208 14,208 - Other materials 52,879 33,215 33,368 (153) Uniforms/clothing allowance 1,800 1,028 1,028 - Memberships/periodicals/books 718 1,270 1,270 - SUB-TOTAL WASTEWATER COLLECTION 907,489 820,841 801,188 19,653 The accompanying notes are an integral part of this statement. 161 1 A3 IMMOKALEE WATER& SEWER DISTRICT Page 38 of 55 SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED Year ended September 30, 2020 Original Final Budget Budget Actual Variance CUSTOMER SERVICE/ADMIN Salaries and wages 968,905 781,984 781,984 - Overtime 4,927 8,158 8,158 - FICA 74,498 57,790 57,790 - Unemployment taxes 956 1,061 1,061 - Employer pension contribution 56,874 39,764 39,764 - Health/life insurance 196,553 189,427 176,617 12,810 Workers'compensation 2,262 1,142 1,142 - Legal services 43,000 354,422 354,422 - Legal services-sewer assessments - - - - Other professional services 1,500 14,258 14,258 - Accounting/auditing 49,000 50,435 50,435 - Engineering services 137,155 192,842 192,842 - Travel and training 36,000 6,764 7,126 (362) Telephone and fax 4,634 8,312 8,312 - Postage and freight 38,997 33,815 33,815 - General liability insurance 4,526 5,514 4,894 620 Comprehensive auto insurance 762 - 620 (620) Other insurance 45,641 59,211 59,211 - Other contract services 5,329 99,457 66,230 33,227 Repairs and maintenance 39,650 494 494 - Vehicle fuel 308 106 106 - Vehicle maintenance 50 - - - Vehicle Lease 2,146 4,105 260 3,845 Office supplies 32,081 22,823 23,940 (1,117) Miscellaneous office expense 59,831 117,180 117,256 (76) Miscellaneous bank fees 11,831 4,618 12,651 (8,033) Miscellaneous expense 5,330 5,630 5,630 - Arrowhead assessment exp. 3,000 - - - Advertising 3,676 11,141 11,141 - Licenses and permits 1,707 175 175 - Memberships/periodicals/books 13,710 10,156 10,156 - SUB-TOTAL CUSTOMER SERVICE/ADMIN 1,844,839 2,080,784 2,040,490 40,294 The accompanying notes are an integral part of this statement. 1611A3 IMMOKALEE WATER& SEWER DISTRICT Page 39 of 55 SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED Year ended September 30, 2020 Original Final Budget Budget Actual Variance MAINTENANCE Salaries and wages 439,588 225,450 225,210 240 Overtime 29,849 128 128 - FICA 35,912 16,996 16,996 - Unemployment taxes 285 213 213 - Employer pension contribution 26,375 22,062 22,062 - Health/life insurance 141,192 127,758 120,369 7,389 Workers'compensation 14,935 8,507 8,507 - Travel and training 14,000 2,329 2,329 - Telephone and fax 1,923 4,603 4,603 - General liability insurance 2,685 2,457 2,457 - Comprehensive auto insurance 9,143 7,446 7,446 - Repairs and maintenance 23,706 8,846 20,751 (11,905) Other contract services 4,971 6,399 4,719 1,680 Vehicle fuel 13,520 6,804 6,804 - Vehicle maintenance 9,998 19,299 19,299 - Vehicle lease 8,227 15,728 1,118 14,610 Licenses and permits 1,460 - - - Other materials 28,685 15,464 15,624 (160) Uniforms/clothing allowance 2,100 1,547 1,547 - Memberships/periodicals/books 1,944 948 948 - SUB-TOTAL MAINTENANCE 810,498 492,984 481,130 11,854 DEPRECIATION Depreciation 1,925,341 1,925,344 2,184,329 (258,985) SUB-TOTAL DEPRECIATION 1,925,341 1,925,344 2,184,329 (258,985) TOTAL OPERATING EXPENSES 9,748,078 9,040,304 9,357,388 (317,084) OPERATING PROFIT $ 997,241 $ 2,114,809 $ 1,634,960 $ (479,849) The accompanying notes are an integral part of this statement. 1 6 l 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 40 of 55 SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED Year ended September 30, 2020 Original Final Budget Budget Actual Variance OPERATING PROFIT, BROUGHT FORWARD $ 997,241 $ 2,114,809 $ 1,634,960 $ (479,849) NON-OPERATING REVENUES(EXPENSES) Interest income 151,161 127,063 144,795 17,732 Contributed capital-grant-FDEP/EPA - - - - Contributed capital-grant-USDA/FHA 765,000 765,000 778,792 13,792 Contributed capital-customers 59,671 59,671 55,765 (3,906) Contributed capital-developers 70,000 167,300 325,670 158,370 Debt proceeds-Capital lease - - - - Hurricane Irma - 3,458 3,458 - Covid 19 expenses - (16,366) (33,166) (16,800) Bond proceeds-USDA 944,000 944,000 53,501 (890,499) Other non-operating revenue 41,072 6,133 32,187 26,054 Capital outlay (1,838,671) (2,801,190) (2,002,867) 798,323 Principal retirement-bonds (936,931) (936,931) (901,000) 35,931 Principal retirement-SRF - - (36,147) (36,147) Principal retirement-capital lease - - (43,861) (43,861) Net Assets-brought forward 7,151,081 6,930,047 - (6,930,047) Net Assets-carryforward (6,335,002) (6,335,002) - 6,335,002 Maintenance reserve - - - - Interest expense (1,008,622) (1,008,622) (1,004,948) 3,674 Bad debt expense (35,000) (19,370) (19,370) - Gain(Loss)on disposal of assets (25,000) - - - NET NON-OPERATING REVENUES(EXPENSES) (997,241) (2,114,809) (2,647,191) (532,382) NET PROFIT(LOSS) $ - $ - $ (1,012,231) $ (1,012,231) Reconciliation: Net profit(loss)(Non-GAAP Budgetary Basis) $ (1,012,231) Debt proceeds-BAN (53,501) Capital outlay 2,002,867 Principal retirement-bonds 901,000 Principal retirement-SRF 36,147 Principal retirement-Capital lease 43,861 Increase in Net Position(GAAP Basis) 1,918,143 Net position-beginning of the year,as restated 40,156,566 Net position-end of the year $ 42,074,709 The accompanying notes are an integral part of this statement. 1 6 I 1A3 IMMOKALEE WATER& SEWER DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year ended September 30, 2020 Grantor's Program/ Federal Agency/Pass Through Contract Award State Agency/Program Title CFDA# Number Amount FEDERAL AWARDS U.S.Department of Agriculture-Rural Development MAJOR(TYPE A) Water and Waste Disposal Systems for Rural Communities Grant Portion-Water lines 10.760 Grant#26 S 4,063,900 Water and Waste Disposal Systems for Rural Communities Grant Portion-Water lines 10.760 Grant#27 1,547,200 Water and Waste Disposal Systems for Rural Communities Grant Portion-clarifier- Bond Anticipation Loan(BAN) 10.760 Loan#28 BAN 944,000 Water and Waste Disposal Systems for Rural Communities Loan Portion-Clarifier 10.760 Grant#29 765,000 7,320,100 U.S.Department of Homeland Security NONMAJOR(TYPE B) Disaster Grants-Public Assistance-Hurricane Irma 97.036 3,458 TOTAL FEDERAL FINANCIAL AWARDS S 7,323,558 *This amount is reflected as a loan addition and outstanding loan rather than as a revenue since the District is accounted for as an enterprise fund. 1 6 I 1A3 Page 41 of 55 Receipts/ Revenue Disbursements/ Recognized Expenditures Subrecipients $ $ None 778,792 778,792 None 53,501 53,501 * None None 832,293 832,293 3,458 3,458 None $ 835,751 $ 835,751 161 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 42 of 55 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year ended September 30, 2020 NOTE A- BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards has been prepared on an accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America and is in accordance with the provisions of the Uniform Guidance less any unpaid disputed retainage. Expenditures reported on the Schedule of Expenditures of Federal Awards include cash disbursements, whether capitalized or expensed, during the fiscal year as well as loan and grant related amounts recorded as payable at year end. Revenues reported on the Schedule of Expenditures of Federal Awards include income recognized including loan and grant receivables recorded at year end. Cash receipts that were deferred are footnoted as such. NOTE B- INDIRECT COSTS The District did not routinely allocate costs to Federal Awards. Costs charged to such programs were direct costs unless specifically incurred for the program and allowed and indicated as such. The District has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. 161 1 A3 ADDITIONAL REPORTS 161 I A 3 Tusc N Affiliations & Florida Institute of Certified Public AAccouncountants Company, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 43 of 55 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Immokalee Water& Sewer District 1020 Sanitation Road Immokalee, Florida 34142 We have audited, 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 of America,the basic financial statements of the business-type activities of Immokalee Water& Sewer District(the "District") which comprise the statement of net position as of September 30, 2020, and the related statements of revenues, expenses and changes in net position and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated May 19, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements,we considered Immokalee Water & Sewer District's internal control over financial reporting(internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of Immokalee Water& Sewer District's internal control. Accordingly, we do not express an opinion on the effectiveness of the Immokalee Water& Sewer 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 combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the basic financial statements will not be prevented or detected and INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090• Fax: (239)333-2097 6I 1A3 Page 44 of 55 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 and therefore, material weaknesses or significant deficiencies in internal control may exist that have not been identified. We did, however, identify certain deficiencies in internal control,described in the accompanying Schedule of Findings and Questioned Costs, identified as item 2018-1 that we consider to be material weaknesses, as defined previously. Further,we also noted certain other matters that we have reported in our Report to Management dated May 19,2021. Compliance and Other Matters As part of obtaining reasonable assurance about whether Immokalee Water& Sewer District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts and grants,noncompliance with which could have a direct and material effect on the financial statements. 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 that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. \-/,,,,,A144,) A . P TUSCAN& COMPANY, P.A. Fort Myers,Florida May 19,2021 161 1A3 T TuscAN Affiliations Florida Institute of Certified Public Accountants OffipaIly,, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 45 of 55 Independent Auditor's Report on Compliance for Each Major Program/Project and on Internal Control Over Compliance Required by the Uniform Guidance Board of Commissioners Immokalee Water& Sewer District 1020 Sanitation Road Immokalee,Florida 34142 Report on Compliance for Each Major Federal Program We have audited Immokalee Water& Sewer District's compliance with the types of compliance requirements described in the OMB Compliance Supplement as applicable, that could have a direct and material effect on each of Immokalee Water& Sewer District's major federal programs for the year ended September 30, 2020. Immokalee Water& Sewer District's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its major federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of Immokalee Water& Sewer District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance 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 of America; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" ("Uniform Guidance"). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Immokalee Water& Sewer District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. INTEGk1TV SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 •Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239)333-2097 1 6 I 1 A 3 Page 46 of 55 We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Immokalee Water& Sewer District's compliance with those requirements. Opinion on Each Major Federal Program In our opinion,Immokalee Water& Sewer District complied, in all material respects,with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2020. Report on Internal Control Over Compliance Management of Immokalee Water& Sewer District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Immokalee Water& Sewer District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance,but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,we do not express an opinion on the effectiveness of Immokalee Water& Sewer District's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions,to prevent, or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies,material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. 1 6 I 1 A 3 Page 47 of 55 Purpose of the Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,this report is not suitable for any other purpose. L'il,„(Allste24/1) da-t44pil ?, TUSCAN& COMPANY, P.A. Fort Myers, Florida May 19, 2021 161 1A3 IMMOKALEE WATER& SEWER DISTRICT Page 48 of 55 SCHEDULE OF FINDINGS AND QUESTIONED COSTS-FEDERAL AWARDS Year ended September 30, 2020 Section I—Summary of Auditor's Results Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting: Control deficiency(ies) identified? Yes X No Significant deficiency(ies) identified? Yes X No Material weakness(es) identified? X Yes None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Control deficiency(ies) identified? Yes X No Significant deficiency(ies) identified? Yes X No Material weakness(es) identified? Yes X None reported Type of auditors report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR, Section 200.516(a)? Yes X No Identification of major programs (Type A): CFDA Number(s) Name of Federal Program or Cluster 10.760 U.S. Department of Agriculture - Loan - Grants Dollar threshold used to distinguish between Type A and Type B programs Threshold used was $750,000. Auditee qualified as low-risk auditee? Yes X No Listing of Subrecipients and matching amounts passed-through: None -not applicable 161 1 A3 IMMOKALEE WATER& SEWER DISTRICT Page 49 of 55 SCHEDULE OF FINDINGS AND QUESTIONED COSTS-FEDERAL AWARDS, CONTINUED Year ended September 30, 2020 Section II-Financial Statement Findings 2018-1 Condition: The financial reporting of the District related to the construction project and payable was deficient and did not allow for sufficient review of account balances and supervision of data entry. Questioned Costs: None Criteria: Accurate monthly and annual financial information should be prepared and provided to management and the Board on a timely basis. Context: Significant adjustments to the account balances as of and for the year ended September 30, 2018 were required during the audit of the financial statements. The initial trial balance provided for the audit contained incorrect balances for accounts payable, retainage payable, contributed capital,net assets and fixed asset additions. Cause: Turnover of administrative staff and increase in the volume and complexity of financial transaction postings are beyond the experience and training of the current staff. Effect: Material weakness. Financial information provided to stakeholders during the fiscal year ended September 30, 2018 did not accurately reflect the District's financial position as significant adjustments were proposed during the audit process. These adjustments caused the audit process to be more time consuming and therefore delayed. It also makes audit issuance difficult to meet the Federal Single Audit reporting deadlines. Recommendation: We recommend that the District obtain or designate a qualified individual to provide assistance to review monthly account balances and prepare month-end closing adjustments. 16L1A3 IMMOKALEE WATER& SEWER DISTRICT Page 50 of 55 SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL AWARDS, CONTINUED Year ended September 30, 2020 Section II-Financial Statement Findings, continued Fiscal Year 2019 Addendum During fiscal year ended September 30, 2019, the District contracted an accounting professional experienced in governmental accounting to assist in the monthly and annual closing and reconciliation process. As a result significant improvements were made,however not all areas were addressed due to the timing of implementation. As such, several audit adjustments were still proposed. The reconciliations and adjustments caused the audit process to be delayed and time consuming. The District, with the assistance of the contracted accounting professional, has proceeded to implement a systematic process of closing and reconciling and is committed to continuing this service. Current Year Addendum During fiscal year ended September 30, 2020, the District continued to experience turnover in administrative staff A new Executive Director was hired during the fiscal year ended September 30, 2020 and a Finance Director was hired subsequent to year end. Efforts are being focused to systematically review the accounting and operations of the District to improve the closing and reconciling process however, significant audit adjustments were proposed due to the timing of the implementation. Section III-Federal Award Findings and Questioned Costs There were no audit findings related to Federal Awards required to be reported by 2 CFR, Section 200.516(a). Section IV-Status of Federal Prior Year Findings The current status is noted above in Section II. j6I1A3 vUS CAN Affiliations Florida Institute of Certified Public Accountants American Institute of Certified Public Accountants & Company, PA Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 51 of 55 INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SECTION 218.415,FLORIDA STATUTES Board of Commissioners Immokalee Water&Sewer District 1020 Sanitation Road Immokalee,Florida 34142 We have examined Immokalee Water& Sewer District's compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. Management is responsible for Immokalee Water& Sewer District's compliance with those requirements. Our responsibility is to express an opinion on Immokalee Water& Sewer 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 Immokalee Water& Sewer 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 Immokalee Water& Sewer District's compliance with specified requirements. In our opinion,Immokalee Water& Sewer District complied, in all material respects,with the aforementioned requirements for the year ended September 30, 2020. This report is intended solely for the information and use of the Immokalee Water& Sewer District and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. /1,AA.A.4644) A • TUSCAN& COMPANY, P.A. �J Fort Myers,Florida May 19,2021 llti I ,EC�KII SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090• Fax: (239) 333-2097 1611A3 1 -1 U S CAN Affiliations Florida Institute of Certified Public Accountants & Company, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants St Coeuultants Tax Division Page 52 of 55 INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Commissioners Immokalee Water& Sewer District 1020 Sanitation Road Immokalee, Florida 34142 We have audited the accompanying basic financial statements of Immokalee Water& Sewer District(the "District") as of and for the year ended September 30, 2020 and have issued our report thereon dated May 19, 2021. 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 of America and Chapter 10.550, Rules of the Florida Auditor General. 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. Disclosures in that report,which is dated May 19, 2021, should be considered in conjunction with this report to management. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in the State of Florida. This letter included the following information, which is not included in the aforementioned auditor's report: • Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Prior year comments that have not been resolved are repeated and updated below. • Section 10.554(1)(i)2.,Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. No such recommendations were noted to improve financial management except as noted below. INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090• Fax: (239)333-2097 16 1A3 Page 53 of 55 • Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse,that have an effect on the financial statements that is less than material but more than inconsequential. In connection with our audit,we did not have any such findings. • Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter,unless disclosed in the notes to the financial statements. The District discloses this information in the notes to the financial statements. • Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s)met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes. • Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, we have applied financial condition assessment procedures. It is management's responsibility to monitor the District's 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. In connection with our audit,we determined that the District did not meet any of the criteria of a deteriorating financial condition as described in Auditor General Rule Section 10.554(1)(i)(6).c. • Pursuant to Section 10.544(1)(i)5.b.2., Rules of the Auditor General, if a deteriorating financial condition(s) is noted then a statement is so required along with the conditions causing the auditor to make such a conclusion. No such conditions were noted. • Pursuant to Section 10.554(l)(i)5.c., Rules of the Auditor General, requires a statement indicating a failure, if any, of a component unit special district to provide financial information necessary to a proper reporting of the component unit within the audited financial statements of this entity(F.S. Section 218.39(3)(b)). There are no known component special districts required to report within these financial statements. • Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit to determine the entity's compliance with the provisions of Section 218.415, Florida Statutes,regarding the investment of public funds. In connection with our audit, we determined that the District complied with Section 218.415, Florida Statutes as reported in our Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes dated May 19, 2021, included herein. • Section 10.557(3)(m), Rules of the Auditor General, requires a notarized affidavit, related to impact fees, signed and sworn to be the Chief Financial Officer be included in the audit report. No such affidavit is included as the District has not implemented any Impact Fees. I6 1 1A3 Page 54 of 55 PRIOR YEAR COMMENTS: 2018-1 See finding 2018-1 noted in the Schedule of Findings and Questioned Costs - Federal Awards- Material Weakness. 2018-3 Fixed Asset Schedules Should be Complete and Maintained Accurately During the audit, it was noted that the depreciation schedule's beginning accumulated depreciation balance did not reconcile to prior year audited financial statements. It was also noted that the depreciation method used was not consistent between all fixed assets. The District was utilizing straight line and bonus depreciation methods. We recommend the District correct the fixed asset schedule beginning accumulated depreciation and strictly use only the straight line depreciation method for all fixed assets. Fiscal Year 2019 Addendum: The District continued to utilize two different depreciation methods during fiscal year ended September 30, 2019 and the beginning accumulated depreciation did not reconcile to the prior year ending balance. Therefore, the prior year comment is repeated. Current Year Addendum: During the fiscal year ended September 30, 2020, the fixed asset schedule was reconciled and adjusted to agree to the prior year ending balance. In addition,the depreciation methods of all assets were adjusted to the straight line method, therefore the comment is resolved. CURRENT YEAR COMMENTS: 2020-1 Reconciliation of Account Balances Should Be Performed Routinely and Timely During the audit, it was noted that the District was unable to provide an accounts payable listing and fixed asset reconciliation that agreed to the balances recorded at fiscal year-end. We recommend that the accounting staff reconcile all account balances on a monthly basis, ensuring that all balance sheet accounts agree to subsidiary ledgers. These reconciliations should be performed on a monthly basis and any differences or discrepancies investigated and corrected. 1 6 I 1 A 3 Page 55 of 55 2020-2 Recalculation of Billing Rates Should Be Performed During the billing procedures performed, it was noted that eight(8) of the twenty-five (25)commercial accounts selected for testing contained an incorrect billing rate. The error was not discovered for several months as the District did not perform a recalculation of billings for all customer types to verify rates. Upon discovery,the error was corrected by the third party billing company. We recommend that the District recalculate and test billings for all customer types upon implementation of approved rate changes. 2020-3 SR 29 Special Assessment not Recorded During the year ended September 30, 2019,the District levied special assessments on system users benefiting from system improvements on State Road(SR)29. The assessment was initially levied through the Collier County Tax Collector on November 1, 2018.The original assessment was not recorded as a receivable by the District at the time. This resulted in the understatement of net position for the fiscal year ended September 30,2019 and, consequently, a restatement of the ending net position was recorded for the fiscal year ended September 30, 2019 in the amount of$496,731 during the year ended September 30, 2020. Pursuant to Chapter 119, Florida Statutes,this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Board of Commissioners, management,the Auditor General of the State of Florida and other federal and state agencies. This report is not intended to be and should not be used by anyone other than these specified parties. \74:44144944) 41 (161141i I- t"\; TUSCAN & COMPANY, P.A. Fort Myers,Florida May 19,2021 1611A3 EXHIBIT 161 1A3 Immokalee Water &Sewer District 1020 Sanitation Road Immokalee, Florida 34142 (239) 658-3630 FAX(239) 658-3634 Immokalee Water & Sewer District June 10, 2021 Sherrill F. Norman, CPA Auditor General, State of Florida Claude Denson Pepper Building 111 West Madison Street Tallahassee, Florida 32399-1450 Dear Ms. Norman: This letter is in response to the Management Letter in the Immokalee Water and Sewer District's Year Ending September 30, 2020 audit, performed by Tuscan & Company, P.A.; which was presented to and accepted by the Board on June 9, 2021. PRIOR YEAR COMMENTS: 2018-1 See finding 2018-I and related 2019 addendum noted in the Schedule of Findings and Questioned Costs— Federal Awards. 2019 IWSD Response: The District has determined that a full-time accounting professional is necessary to perform balance sheet, revenue, expense, and payroll account reconciliations, as well as executing accounts payable and accounts receivable processes. During the April 15, 2020 meeting, the Board directed the Executive Director to initiate the hiring process of a full-time accounting professional. The hiring of a full-time employee with experience in accounting and governmental accounting practices will address this issue. 2020 1WSD Response: The District established a new position, Finance Director, and hired Mr. Brian Stewart in January 2021. Even though Mr. Stewart did not participate in the initial audit request for data and reports made in September 2020, he reviewed, corrected, and coordinated many issues, comments, and questions between February and May 2021 related to FY2019-20. 2018-3 Fixed Asset Schedules Should be Complete and Maintained Accurately During the audit, it was noted that the depreciation schedule's beginning accumulated depreciation balance did not reconcile to prior year audited financial statements. It was also noted that the depreciation method used was not consistent between all fixed assets. The District was using a straight line and bonus depreciation methods. We recommend the District correct fixed asset schedule beginning accumulated depreciation and strictly use only the straight-line depreciation method for all fixed assets. Ili i11A3 June 4, 2021 I nmokalee Water and Sewer District Response to Management Letter Audit for Year Ended September 30, 2020 Page 2 2019 Addendum: The District continued to utilize two different depreciation methods during the fiscal year ended September 30, 2019 and the beginning accumulated depreciation did not reconcile to the prior year ending balance. Therefore, the prior year comment is repeated. Current Year Addendum: During the fiscal year ended September 30, 2020, the fixed asset schedule was reconciled and adjusted to agree to the prior year ending balance. In addition, the depreciation methods of all assets were adjusted to the straight-line method, therefore the comment is resolved. CURRENT YEAR COMMENTS: 2020-1 Reconciliation of Account Balances Should Be Performed Routinely and Timely During the audit, it was noted that the District was unable to provide an accounts payable listing and fixed asset reconciliation that agreed to the balances recorded at fiscal year-end. We recommend that the accounting staff reconcile all account balances on a monthly basis, ensuring that all balance sheet accounts agree to subsidiary ledgers.These reconciliations should be performed on a monthly basis and any differences or discrepancies investigated and corrected. 2020 IWSD Response: The District is working to implement processes which will ensure balance sheet accounts agree to subsidiary ledgers. 2020-2 Recalculation of Billing Rates Should Be Performed During the billing procedures performed, it was noted that eight(8) of the twenty-five (25) commercial accounts selected for testing contained an incorrect billing rate. The error was not discovered for several months as the District did not perform a recalculation of billings for all customer types to verify rates. Upon discovery, the error was corrected by the third-party billing company. We recommend that the District recalculate and test billings for all customer types upon implementation of approved rate changes. 2020 IWSD Response: The District is currently correcting commercial customer accounts for prior year incorrect billings. In the future, new billing rates will be tested prior to implementation. 1 6 I 1 A 3 June 4, 2021 Immokalee Prater we/Sewer Distort Response to itlanugemeizi Leiter Audit fur Year be/ecl September 30. 2020 ['age 3 2020-3 SR 29 Special Assessment not Recorded During the year ended September 30, 2019, the District levied special assessments on system users benefiting from system improvements on State Road (SR) 29. The assessment was initially levied through the Collier County Tax Collector on November 1, 2018. The original assessment was not recorded as a receivable by the District at the time. This resulted in the understatement of net position for the fiscal year ended September 30, 2019 and, consequently, a restatement of the ending net position was recorded for the fiscal year ended September 30, 2019 in the amount of$496,731 during the year ended September 30, 2020. 2020 IWSD Response: SR 29 assessments will be recorded in the correct account. The District continues to appreciate the performance of Tuscan & Company staff during the audit to obtain reasonable assurance about the District's basic financial statements as well as their evaluation of the presentation of those statements. Sincerely, Sarah Catala, Executive Director Immokalee Water and Sewer District 1020 Sanitation Road I Immokalee, FL 34142 Phone: 239.658.3630 I Mobile: 239.651.9990 Email: SarahCatala@iw-sd.com Web: www.iw-sd.com 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT BASIC FINANCIAL STATEMENTS TOGETHER WITH ADDITIONAL REPORTS YEAR ENDED SEPTEMBER 30,2020 16I1A4 TABLE OF CONTENTS Page(s) INDEPENDENT AUDITOR'S REPORT 1-4 MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-xi BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS: Statement of Net Position 5 Statement of Activities 6 FUND FINANCIAL STATEMENTS: Governmental Funds: Balance Sheet 7 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 8 Statement of Revenues,Expenditures and Changes in Fund Balance 9 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities 10 Fiduciary Fund-Firefighters'Pension Plan: Statement of Fiduciary Net Position 11 Statement of Changes in Fiduciary Net Position 12 NOTES TO THE FINANCIAL STATEMENTS 13-80 OTHER INFORMATION COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA Governmental Funds Combining Balance Sheet-General Fund-by Service Delivery Area 81 Combining Statement of Revenues,Expenditures,and Changes in Fund Balance- General Fund-by Service Delivery Area 82 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A NORTH NAPLES SERVICE DELIVERY AREA BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds) Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Summary Statement 83 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Detailed Statement 84-86 BIG CORKSCREW ISLAND SERVICE DELIVERY AREA BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds) Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Summary Statement 87 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Detailed Statement 88-90 161 1A4 TABLE OF CONTENTS(CONTINUED) Page(s) COMBINED SERVICE DELIVERY AREAS Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Impact Fee Fund-Combined Service Delivery Areas Summary Statement 91 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Impact Fee Fund-Combined Service Delivery Areas Detailed Statement 92 BUDGET TO ACTUAL COMPARISON-OTHER NON-MAJOR GOVERNMENTAL FUND Special Revenue Fund: Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Inspection Fee Fund-Summary Statement 93 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Inspection Fee Fund-Detailed Statement 94-95 Schedule of Expenditures of Federal Awards - Year Ended September 30, 2020 96 Notes to the Schedule of Expenditures of Federal Awards 97 OTHER REQUIRED SUPPLEMENTARY INFORMATION Schedule of District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS) 98 Schedule of District Contributions-Florida Retirement System Pension Plan(FRS) 98 Schedule of District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS) 99 Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS) 99 Notes to the Required Supplementary Information-FRS/HIS 100-101 Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No. 75 and Related Notes to the Schedule 102 ADDITIONAL REPORTS Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards 103-104 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance 105-107 Schedule of Findings and Questioned Costs-Federal Awards 108-109 Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes 110 Independent Auditor's Report to Management 111-113 Management's Response to Independent Auditor's Report to Management Exhibit 1 Impact Fee Affidavit Exhibit 2 I6IlA4 7-7 . U 4 S CAN Affiliations Florida Institute of Certified Public Accountants Q •LDlnpli�y �A American Institute of Certified Public Accountants ��5 Private Companies Practice Section Certified Public Accountants&Consultants Tax Division INDEPENDENT AUDITOR'S REPORT Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples,Florida 34109-0492 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities,each major fund,the non-major fund and the fiduciary fund type of North Collier Fire Control and Rescue District(the"District")as of and for the year ended September 30,2020,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 an opinion on these financial statements based on our audit.We did not audit the financial statements of North Collier Fire Control and Rescue District Firefighters'Pension Trust Fund("Fiduciary Fund-Pension Fund")as of and for the year ended September 30,2020,which represent 100%of the assets,liabilities and net position as well as 100%of the revenue and expenses of the District's Fiduciary Fund.Those financial statements were audited by other auditors whose report thereon has been furnished to us,and our opinion,insofar as it relates to the amounts included for North Collier Fire Control and Rescue District Firefighters'Pension Trust Fund,is based on the report of the other auditors. We also did not audit the financial statements of the Florida Retirement System Pension Plan(FRS)or Health Insurance Subsidy Pension Plan(HIS)as of and for the year ended June 30,2020. The District is required to record its proportionate share of the FRS and HIS liability in the District's government-wide financial statements as of September 30,2020 and for the year then ended. The Florida Retirement System financial statements were audited by other auditors whose reports have been furnished to us,and our opinion,insofar as it relates to the amounts included for the District's government-wide financial statements,are based on the reports of the other auditors. 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 of America. 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 District's preparation and fair presentation of the financial statements in order to INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 •Fort Myers, FL 33907 • Phone: (239) 333-2090• Fax: (239)333-2097 161 1A4 Board of Commissioners North Collier Fire Control and Rescue District Page 2 design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the District'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 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. Summary of Opinions Opinion Unit Type of Opinion Governmental Activities Unmodified General Fund Unmodified Impact Fee Fund Unmodified Inspection Fee Fund Unmodified Firefighters'Pension Trust Fund Unmodified Opinions Unmodified Opinions In our opinion,based on our audit and the report of other auditors,the financial statements referred to above present fairly,in all material respects,the respective financial position of the governmental activities,each major fund,the non-major fund and the fiduciary fund type of North Collier Fire Control and Rescue District as of September 30,2020,and the respective changes in financial position,for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters During the year ended September 30,2020,the District's unrestricted net asset balance remained a deficit of$(6,627,736),due substantially to recording the current year actuarially determined OPEB liability of$9,980,141 and the District's proportionate share of its pension liability of$19,352,783. This is a non-cash actuarially determined liability related to the future cost of allowing retirees to remain on the District's health care policy and for paying a portion of retiree coverage. The pension liability is a non cash actuarially determined liability for the District's participation in the State's FRS defined benefit retirement system and the District's Firefighters'Retirement Plan.The District's fund balance remains approximately equal to four(4)months budgeted expenditures. Our opinion was not modified for this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages i-xi,Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS),Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No.75 and Related Notes to the Schedule,as listed in the table of contents,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 which 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-management's discussion and analysis(MD&A),Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS), Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS), Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS), Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No.75 and Related Notes to the Schedule,as listed in the table of contents,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 1611A4 Board of Commissioners North Collier Fire Control and Rescue District Page 3 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 required supplementary information-management's discussion and analysis(MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS), Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No.75 and Related Notes to the Schedule,as listed in the table of contents,because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Required Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise North Collier Fire Control and Rescue District's basic financial statements.The required supplementary information other than MD&A-budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic financial statements.The required supplementary information other than MD&A budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the required supplementary information other than MD&A-budgetary comparison information is fairly stated,in all material respects,in relation to the basic financial statements as a whole. Our audit was conducted for the purpose of forming an opinion on the financial statements of North Collier Fire Control and Rescue District that collectively comprise the North Collier Fire Control and Rescue District's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards-year ended September 30,2020 and related notes thereto as required by title 2 U.S.Code of Federal Regulations(CFR Part 200,"Unifrom Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards."is presented for purposes of additional analysis and is not a required part of the financial statements.Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the accompanying Schedule of Expenditures of Federal Awards and related notes thereto for the year ended September 30,2020 is fairly stated,in all material respects,in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The combining financial statements as listed in the table of contents,are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the combining financial statements are fairly stated,in all material respects,in relation to the basic financial statements as a whole. 161 1A4 Board of Commissioners North Collier Fire Control and Rescue District Page 4 Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District's basic financial statements. The Exhibit 1-Management's Response to Independent Auditor's Report to Management and Exhibit 2 Impact Fee Affidavit are not a required part of the basic financial statements but are required by Government Auditing Standards and Rules of the Auditor General,Section 10.557(3)(m),respectively. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements. Other Reporting Required by Section 218.415,Florida Statutes In accordance with Section 218.415,Florida Statutes,we have also issued a report dated May 7,2021,on our consideration of North Collier Fire Control and Rescue District's compliance with provisions of Section 218.415,Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing,and to provide an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415,Florida Statutes in considering North Collier Fire Control and Rescue District's compliance with Section 218.415,Florida Statutes. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated May 7,2021,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,contract and 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 North Collier Fire Control and Rescue District's internal control over financial reporting and compliance. iLfm) /...441p1t A , TUSCAN&COMPANY,P.A. Fort Myers,Florida May 7,2021 161 1A4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) 1A4 Management's Discussion and Analysis of Financial Statements FYE September 30, 2020 This Discussion and Analysis of the North Collier Fire Control & Rescue District's("The District") basic financial statements is provided to assist the reader in understanding the District's financial activities and significant changes in ending financial position for the fiscal year ended September 30, 2020. These statements include the requirements of GASB Statements #34, #68 and#75 incorporate those annual reporting requirements, as well as the financial statement format and presentation. Contained within are the basic financial statements, consisting of the government-wide financial statements, governmental fund and fiduciary fund financial statements and related notes to the financial statements. This Discussion and Analysis will also provide an analytical overview of these statements, including comparisons of the District's financial position at September 30, 2020 versus September 30, 2019. District Highlights 1. At the conclusion of fiscal year 2020, the District's assets exceeded its liabilities, resulting in net assets of$25,511,294 as compared to net assets at September 30, 2019 of$23,115,686. 2. The District had($6,627,736) deficit of unrestricted net assets at September 30, 2020 as compared to ($9,561,300)deficit of unrestricted net assets at September 30, 2019. The amount of unrestricted net assets increased by$2,933,564. 3. Total revenues on the government-wide basis increased $2,164,600 or 5%percent, in comparison to the prior year. 4. Total expenses on the government-wide basis decreased by($2,893,645) or(6%) percent, in comparison to the prior year. Government-wide Financial Statements Government-wide financial statements (Statement of Net Position and Statement of Activities found on pages 5 and 6) are intended to allow a reader to assess a government's operational accountability. Operational accountability is defined as the extent to which the government has met its operating objectives efficiently and effectively,using all resources available for that purpose, and whether it can continue to meet its objectives for the foreseeable future. Government-wide financial statements concentrate on the District as a whole and do not emphasize fund types. The Statement of Net Position(page 5)presents information on all of the District's assets and liabilities,with the difference between the two reported as net assets. The District's capital assets are included in this statement and reported net of their accumulated depreciation. The Statement of Activities (page 6)presents revenue and expense information showing how the District's net assets changed during the fiscal year. Both statements are measured and reported using the economic resource measurement focus (revenues and expenses) and the accrual basis of accounting(revenue recognized when earned and expense recognized when incurred). BRV 5/15/2021 1 6 I 1A4 Governmental Fund Financial Statements The accounts of the District are organized on the basis of governmental funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities,fund equity or retained earnings,revenues and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Governmental fund financial statements (found on pages 7 and 9) are prepared on the modified accrual basis using the current financial resources measurement focus. Under the modified accrual basis of accounting,revenues are recognized when they become measurable and available as net current assets. Fiduciary Fund The fiduciary fund is used to account for resources held for the benefit of retired employees that participated in the District's Firefighters' Pension Plan(Plan 2). The fiduciary funds are not reflected in the government-wide financial statements because the resources of this fund are not available to support the District's programs. The accounting used for the fiduciary fund is much like that used for governmental proprietary funds. The fiduciary fund financial statements can be found on pages 11 and 12. Notes to the Financial Statements The notes to the financial statements explain in detail some of the data contained in the preceding statements and begin on page 13. These notes are essential to a full understanding of the data provided in the government-wide and fund financial statements. Government-Wide Financial Analysis The government-wide financial statements are designed so that the user can determine if the District's financial condition is better or worse than the prior year. BRV 5/15/2021 ii 16i1A4 The following is a Condensed Summary Statement of Net Position for the District (Primary Government) at September 30, 2020 and 2019: Summary Statement of Net Position September 30 Assets: 2020 2019 Current and Other Assets $23,073,068 $16,904,163 Capital Assets 34,692,567 35,585,634 Total Assets 57,765,635 52,489,797 Deferred Outflows - Pensions 16,231,538 16,789,247 Liabilities: Current Liabilities 3,656,402 2,461,122 Non-Current Liabilities 33,800,721 33,099,603 Total Liabilities 37,457,123 35,560,725 Net Position: Deferred Inflows - Pensions 11,028,756 10,602,633 Net Investment in Capital Assets 31,974,210 32,511,144 Restricted 164,820 165,842 Unrestricted (deficit) (6,627,736) (9,561,300) Total Net Position $25,511,294 $23,115,686 Current and other assets represent 40 percent of total assets at September 30, 2020, as compared to 32 percent of total assets at September 30,2019. Current assets at September 30, 2020 are comprised of unrestricted cash balances of $9,154,519, restricted cash of $939,176, investments of$10,159,312, due from other governments of$1,531,607, other receivables of$124,370 and other assets of$1,164,084. The balances of unrestricted cash represent amounts that are available for spending at the discretion of the Board of Fire Commissioners of the District. Restricted cash balances are comprised of the impact fee funds restricted for the purchase of capital assets, and unspent inspections fee revenue restricted to support the inspection of new construction. The net investment in capital assets represent 125 percent of net assets at September 30, 2020, as compared to 141 percent at September 30, 2019. These assets are comprised of land, buildings, improvements, equipment, furniture, and vehicles, net of accumulated depreciation, and the outstanding related debt used to purchase the assets. The assigned fund balance of$18,673,395 represents resources available for spending at September 30, 2020. The District currently has $0 fund balance unassigned by the Board. BRV 5/15/2021 iii 161 1A4 Summary of Revenues,Expenses and Changes in Net Assets For the Years Ended September 30, 2020 and September 30, 2019 Revenues: 2020 2019 General Revenues Ad Valorem Taxes $39,774,303 $37,400,439 Program Revenues Grants 514,324 1,233,337 Charges for Services 2,307,075 2,609,417 Miscellaneous Impact Fees 83,973 97,257 Investment Earnings 372,372 477,427 Gain(Loss) on Disposition of Capital Assets 35,514 1,403 Other financial assistance—CARES Act 1,000,000 0 Other _ 233,516 337,197 Total Revenues 44,321,077 42,156,477 Expenses: Public Safety—Fire/Rescue Service 41,925,469 44,819,114 Increase (Decrease) in Net Position 2,395,608 (2,662,637) Net Position-Beginning of Year 23,115,686 25,778,323 Net Position-End of Year $25,511,294 $23,115,686 BRV 5/15/2021 iv 1 6 I 1 A 4 The assessed value of the property within the North Naples Service Delivery Area increased 4.9 percent for the 2019-2020 fiscal year as compared to the prior year's assessed value while maintaining the millage rate of 1.000 mils, resulting in an increase in Ad Valorem tax revenues of$1,331,256. The property values in the North Naples Service Delivery Area decreased by 25 percent during the fiscal years 2007-2012, resulting in a decrease in Ad Valorem revenue. However,property values have since increased between 2012 and 2020 and have now exceeded the previous high point in value during FYE 9-30-07. The Board adopted a millage rate of 1.000 mils in the North Naples Service.Delivery Area taxing unit, or$1.00 for every $1,000 of taxable property value. This millage rate was 3.12 percent more than the rolled back rate (the taxing rate necessary to generate the same Ad Valorem revenue as was generated during the 2018-2019 fiscal year) of.9697. The assessed value of the property within the Big Corkscrew Island Service Delivery Area increased 10.8 percent for the 2019-2020 fiscal year as compared to the prior year's assessed value,resulting in an increase in Ad Valorem tax revenues of$1,042,608. The property values in the Big Corkscrew Island Service Delivery Area decreased by 66 percent during the fiscal years 2007-2012,resulting in a decrease in Ad Valorem revenue. Although property values have increased between 2012 and 2020,property value in the Big Corkscrew Island Service Delivery Area is still 28 percent lower in FYE 9-30-20 than it was in FYE 9-30-07. The Board adopted a millage rate of 3.75 mils in the Big Corkscrew Island Service Delivery Area taxing unit, or$3.75 for every $1,000 of taxable property value. This was increased from the prior year millage rate of 3.50 mils. This millage rate was 11.40 percent more than the rolled back rate (the taxing rate necessary to generate the same Ad Valorem revenue as was generated during the 2018-2019 fiscal year) of 3.3663. Prior to the 2007-2008 fiscal year,the increase in Ad Valorem revenue resulting from the increase in property value was sufficient to provide adequate funds to support operational, capital and reserve financial requirements in the District without increasing the millage rate. While property values have been on the increase over the last few years, the increases have not been sufficient to prevent the use of reserves to fund capital purchases. The following chart identifies the change in appraised property values in the District by service delivery area and the millage rate maintained by the District. BRV 5/15/2021 V i6I1A4 North Naples SDA Property Value 2003 - 2020 $40,000,000,000 $35,000,000,000 $30,000,000,000 $25,000,000,000 $20,000,000,000 • $15,000,000,000 $10,000,000,000 • $5,000,000,000 $- 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Big Corkscrew SDA Property Value 2003 - 2020 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 BRV 5/15/2021 Vi 11A4 Fund Balance—Governmental Fund Financial Statements The Board of Fire Commissioners' directive is to utilize the fund balance and cash reserves of the General Fund to fund capital purchases and improvements, declared emergency situations, and to maintain the District's financial position. During the 2018- 2019 fiscal year,the District received reimbursement of$843,685 from FEMA for many of the Hurricane Irma expenses incurred. During the 2019-2020 fiscal year, the District received$1,085,818 in reimbursements associated with the COVID-19 pandemic response. Receipt of these reimbursement funds have been used to replenish the District's General Fund reserves. At September 30, 2020, the District had General Fund reserves totaling $19,837,479. This includes the non-spendable amount of$1,164,084 restricted for prepaid expenses, and$18,673,395 for assigned reserves. Assigned reserves have been established and maintained in accordance with anticipated future needs of the District, including operating expenses for the first quarter of the fiscal year prior to the receipt of Ad Valorem revenue, expenditures associated with declared emergencies, and the replacement of capital assets. Additionally, increases in health insurance, and other personnel and operating expenses that require funds to be set aside, or assigned, to prepare for the funding of future expenditures. The following General Fund Assigned Reserves were approved for the fiscal year ended September 30, 2020: Non Spendable Fund Balance Amount General Fund Prepaid Expenses $ 1,164,084 Assigned Fund Balance Amount Operating Reserve—First Quarter $ 9,443,646 Emergency Reserve 8,529,749 Fire Apparatus 700,000 Total Assigned Reserves $ 18,673,395 Unassigned Fund Balance Amount General Fund—Unassigned S 0 Total General Fund Reserves $19,837,479 Impact Fees With the creation of the North Collier Fire Control and Rescue District in January 2015, an impact fee study was performed to establish impact fee rates for the new District. However,that study was not completed and new rates were not adopted until October 1, 2016. Prior year impact fee assessments were based on a structure's square footage. The new rate structure bases fees on structure usage classifications and the methodology utilizes population rather than emergency call volume. These rates using the population- based methodology were updated annually prior to October 1st of each year. However, the impact of the change in methodology overall has resulted in a decrease in impact fee receipts. Total annual impact fee receipts decreased 66 percent from fiscal year 2015- 2016 to 2019-2020 (from$2,674,309 to $911,074). Total Impact Fee Fund expenses for the 19-20 fiscal year were $96,641, consisting of Collier County collection fees, a completed impact fee study, and the annual debt service payment for land purchased in the Big Corkscrew Service Delivery Area. At the September 24, 2020 Board of Fire BRV 5/15/2021 vii 161 1A4 Commissioners meeting,the District approved a new impact fee rate structure methodology based on an incident-based approach for the demand component rather than a population-based approach per the impact fee study produced on August 24, 2020. These new rates per the new rate structure became effective January 1, 2021 via Resolution 20-022. Inspection Fees Inspection fee revenue for the year ended September 30, 2020 was $1,809,386 representing a decrease of$193,224 or-9.6 percent as compared to inspection fee revenue in the prior fiscal year(2019). In June of 2014, the District terminated its Interlocal Agreement with the Fire Code Official's office to provide fire plan review services and assumed the responsibility for those plan reviews. As a result, $876,423 of the fund's revenue was attributable to plan review fees. The Inspection Fee Fund had sufficient revenue in the 2019-2020 fiscal year to support the majority of functions associated with new construction inspections and plan reviews, yet had excess expenditures over revenues by $1,022 during the fiscal year. However,based on receipts for the first half of the 2020-2021 fiscal year for both inspection fees and plan review fees, there will likely be more collected than the previous year. The Board continues to monitor the volume of new construction projects and the fees necessary to support the associated costs. Budgetary Highlights Budget versus actual comparisons are reported in the required supplementary information other than management's discussion and analysis on pages 83 through 95 and are reflected by taxing subunit(service delivery area). The amendments to General Fund revenue were necessary to reflect an increase of $150,000 in grant revenue (Hurricane FEMA reimbursements), a net decrease of ($872,188) in debt proceeds associated with the elimination of($1,080,000) for heart monitor lease-to-purchase agreement that was not executed by the end of the fiscal year and an increase of$207,812 for a lease-to-purchase agreement for Chevrolet trucks. By these amendments, General Fund revenue was decreased by ($702,188). The amendments to the General Fund expenditures were a result of several factors. Budgeted capital outlay decreased by ($1,383,000) including a decrease of($500,000) in Station Improvements and Equipment due to projects not finalized during the year, a decrease of($1,080,000) in medical equipment due to not finalizing the capital lease for the aforementioned heart monitors, and an increase of$197,000 in vehicle purchases associated with the capital lease for the approved purchase of Chevrolet trucks. Capital Assets Non-depreciable capital assets include land and construction in progress. Depreciable assets include buildings, improvements other than buildings, equipment, furniture and vehicles. The following is a schedule of the District's capital assets as of September 30, 2020 and 2019. BRV 5/15/2021 viii 1 6 I 1 A 4 Capital Assets September 30 Capital Assets 2020 2019 Land $15,712,989 $15,712,989 Construction in Progress 1,319,431 _ 1,319,431 Total Capital Assets not Depreciated 17,032,420 17,032,420 Assets Held Under Capital Lease 4,266,045 4,058,233 Buildings 21,283,328 20,799,903 Vehicles 8,476,780 8,788,161 Office Equipment 1,546,311 1,424,716 Equipment&Machinery 3,941,483 3,957,340 Total Capital Assets Being Depreciated 39,513,947 39,028,353 Accumulated Depreciation Assets Held Under Capital Lease (1,412,562) (947,042) Buildings (9,186,739) (8,404,324) Vehicles (7,197,089) (7,188,103) Office Equipment (967,237) (823,007) Equipment&Machinery (3,090,173) (3,112,663) Total Accumulated Depreciation (21,853,800) (20,475,139) Total Capital Assets being Depreciated, Net 17,660,147 18,553,214 Capital Assets—Net of Depreciation 34,692,567 35,585,634 Less: Capital Lease/Note Payables (2,718,357) (3,074,490) Net Assets Invested in Capital Assets Net of Related Debt $31,974,210 $32,511,144 Significant capital asset purchases made during the fiscal year ended September 30, 2020 include: 1. Building improvements (General Fund)totaling $483,425 including the Taylor Rd. site(including the NCFR shop), Station 40, Station 42, Station 43, Station 44, Station 45, Station 46, Station 48 and Station 10. 2. Vehicles (non-capital lease)totaling $34,992 including one(1) Honda ATV and two (2) Inflatable boats including the Yamaha tiller engines. 3. Vehicle(capital lease) totaling $207,812 for six(6) Chevrolet vehicles 4. Fire and Rescue Equipment totaling $210,659 including rescue saws,ball intake valves,thermal imaging cameras, AC-17 auto cribs,mobile radios, mobile routers, etc. 5. Other equipment totaling $133,077 (laptop computers,MDT computers, server and router equipment, ice machines, mobile welding machine, floor cleaning machine, and a refrigerator). BRV 5/15/2021 ix 16I 1A4 6. No capital impact fee eligible expenditures were made during the fiscal year ended September 30, 2020. For additional information on the District's capital assets, see Note E on pages 39 and 40. Debt Administration As of September 30, 2020, the District had long term obligations of$34,386,354, as compared to $33,631,752 at September 30, 2019 an increase of$754,602 or 2 percent. The increase is largely due to the increase in the net OPEB obligation offset with net decreases in the net Pension Liability of the FPT (Firefighter Pension Trust) and FRS (Florida Retirement System). Additionally, the District added a capital lease for the purchase of six(6) staff vehicles during the fiscal year ended September 30, 2020. That debt consists of: 1. Compensated absences (accrued vacation liability) in the amount of$2,335,073, as compared to $2,064,170 at September 30, 2019. 2. Net OPEB obligation of$9,980,141 as compared to $8,893,953 at September 30, 2019, representing post-employment health insurance obligations pursuant to GASB No. 75. 3. Capital lease for fire apparatus, radio equipment, and staff vehicles identified above in the total amount of$2,545,857. This includes the lease to purchase agreement for the three fire engines and one ladder truck was entered into on January 15, 2016,the lease to purchase agreement for one velocity ladder truck was entered into on May 1, 2017,the lease to purchase agreement for radio equipment which was entered into on May 20, 2019, and the lease to purchase agreement for six(6) Chevrolet staff vehicles which was entered into on December 12,2019. 4. Note payable for the purchase of BCI station in the amount of$172,500. 5. Pension liability(FRS) in the amount of$9,403,419 (see Note F). 6. Pension liability(HIS) in the amount of$1,736,428 (see Note F). 7. Pension liability(Ch. 175) in the amount of$8,212,936 (see Note F). Economic Facts and Next Year's Budget Millage Rates The following factors were being taken into consideration when the fiscal year ending September 30, 2021 budget was prepared: 1. Appraised taxable property values increased by$1,985,194,516, or 5.8 percent for tax year 2020 (FY 2021) in the North Naples service delivery area as compared to an increase of 4.9 percent in 2019. In the Big Corkscrew service delivery area,taxable property values increased by $206,337,663, or 11 percent for tax year 2020(FY 2021), similar to the increase of 11 percent in 2019. 2. The Board adopted a millage rate of 1.000 mils in the North Naples service delivery area and 3.75 mils in the Big Corkscrew service delivery area for the fiscal year ending September 30, 2021. The Board believes the increase in valuation(at the same millage rate) is necessary to compensate for future capital funding,personnel growth, and unknown, unreimbursed COVID-related expenditures. The Board has expressed the desire to continue to move towards BRV 5/15/2021 x 1 6 I 1A4 one unified taxing rate District wide. However, the alternative addition of a non- ad valorem fire fee assessment was not approved by local voters as of the November 2017 elections. Funding mechanisms and millage caps will be analyzed and reviewed by the District on a regular basis to ensure adequate funding. 3. No use of General Fund reserves has been budgeted; rather, the Board has provided direction to add over$200,000 to reserves. Limited capital purchases include various station improvements,pumper refurbishment, shop equipment, computer hardware and equipment, radios, and TRT and dive team equipment. 4. The District will continue to monitor the overall cost to respond to the ongoing COVID-19 pandemic and will research all avenues for Federal, State, and local funding to reimburse expenditures. This may have a large impact on the current and subsequent budget. Request for Information This financial report is designed to provide the reader an overview of the District. Questions regarding any information provided in this report should be directed to: Ben Van Klingeren, Chief Financial Officer,North Collier Fire Control& Rescue District, 1885 Veterans Park Drive, Naples, FL 34109, 239-597-1322, e-mail: bvanklingeren(&northcollierfire.com. BRV 5/15/2021 Xi 1 6 1 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 of 113 STATEMENT OF NET POSITION September 30,2020 Governmental Activities ASSETS Current assets: Cash and cash equivalents $ 9,154,519 Restricted cash and cash equivalents 939,176 Investments 10,159,312 Due from other governments 1,531,607 Other receivables,net 124,370 Other assets 1,164,084 Total current assets 23,073,068 Noncurrent assets: Capital assets: Land 15,712,989 Construction in progress 1,319,431 Depreciable buildings,equipment,and vehicles (net of$21,853,800 accumulated depreciation) 17,660,147 Total noncurrent assets 34,692,567 TOTAL ASSETS 57,765,635 DEFERRED OUTFLOWS OF RESOURCES 16,231,538 LIABILITIES Current liabilities: Accounts payable and accrued expenses 1,454,295 Contract deposits 7,500 Unearned revenue 1,608,974 Current portion of long-term obligations 585,633 Total current liabilities 3,656,402 Noncurrent liabilities: Noncurrent portion of long-term obligations _ 33,800,721 TOTAL LIABILITIES 37,457,123 DEFERRED INFLOWS OF RESOURCES 11,028,756 NET POSITION Net investment in capital assets 31,974,210 Restricted 164,820 Unrestricted(deficit) (6,627,736) TOTAL NET POSITION $ 25,511,294 The accompanying notes are an integral part of this statement. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 6 of 113 STATEMENT OF ACTIVITIES Year Ended September 30, 2020 Governmental Activities EXPENSES Governmental Activities Public Safety-Fire Protection Personnel services $ 33,929,303 Operating expenses 5,957,932 Depreciation 1,930,396 Interest and fiscal charges 107,838 TOTAL EXPENSES-GOVERNMENTAL ACTIVITIES 41,925,469 PROGRAM REVENUES Charges for services 2,307,075 Operating grants and contributions 514,324 NET PROGRAM EXPENSES 39,104,070 GENERAL REVENUES Ad Valorem taxes 39,774,303 Impact fees 83,973 Interest 372,372 Gain on disposition of capital assets 35,514 Other financial assistance-CARES Act 1,000,000 Other 233,516 TOTAL GENERAL REVENUES 41,499,678 INCREASE IN NET POSITION 2,395,608 NET POSITION-Beginning of the year 23,115,686 NET POSITION-End of the year $ 25,511,294 The accompanying notes are an integral part of this statement. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 7 of 113 BALANCE SHEET- GOVERNMENTAL FUNDS September 30, 2020 Total General Impact Fee Inspection Fee Governmental Fund Fund Fund Funds ASSETS Cash and cash equivalents $ 9,154,519 $ - $ - $ 9,154,519 Restricted cash and cash equivalents - 865,216 73,960 939,176 Investments 9,451,152 708,160 - 10,159,312 Due from other governments 1,347,075 36,139 148,393 1,531,607 Due from other funds 147,224 - 129,536 276,760 Other receivables,net 124,370 - - 124,370 Prepaid expenses 1,164,084 - - 1,164,084 TOTAL ASSETS $ 21,388,424 $ 1,609,515 $ 351,889 $ 23,349,828 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable and seemed expenses $ 1,413,909 $ 541 $ 39,845 $ 1,454,295 Retainage payable - - - - Due to other funds 129,536 - 147,224 276,760 Contract deposits 7,500 - - 7,500 Unearned revenue - 1,608,974 - 1,608,974 TOTAL LIABILITIES 1,550,945 1,609,515 187,069 3,347,529 FUND BALANCE Nonspendable 1,164,084 - - 1,164,084 Restricted - - 164,820 164,820 Assigned 18,673,395 - - 18,673,395 Unassigned - - - - TOTAL FUND BALANCE 19,837,479 - 164,820 20,002,299 TOTAL LIABILITIES AND FUND BALANCE $ 21,388,424 $ 1,609,515 $ 351,889 $ 23,349,828_ The accompanying notes are an integral part of this statement. 1 6 I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 8 of 113 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2020 Amount Total fund balance of governmental funds $ 20,002,299 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 in the governmental funds. Capital assets not being depreciated: Land 15,712,989 Construction in progress 1,319,431 17,032,420 Governmental capital assets being depreciated: Building,equipment and vehicles 39,513,947 Less accumulated depreciation (21,853,800) 17,660,147 Deferred outflows and deferred inflows related to pensions are applied to future periods and,therefore,are not reported in the governmental funds. Deferred outflows-Net OPEB Liability 1,338,955 Deferred outflows-FRS/HIS 3,618,668 Deferred outflows-FPT 11,273,915 16,231,538 Deferred inflows-Net OPEB Liability (2,226,110) Deferred inflows-FRS/HIS (3,676,171) Deferred inflows-FPT (5,126,475) (11,028,756) Long-term obligations are not due and payable in the current period and,therefore,are not reported in the governmental funds. Net OPEB liability (9,980,141) Net pension liability-FRS (9,403,419) Net pension liability-HIS (1,736,428) Net pension liability-FPT (8,212,936) Capital leases (2,545,857) Note payable (172,500) Compensated absences (2,335,073) (34,386,354) Elimination of interfund amounts: Due to other funds (276,760) Due from other funds 276,760 Total net position of governmental activities $ 25,511,294 The accompanying notes are an integral part of this statement. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 9 of 113 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Year Ended September 30, 2020 Total General Impact Fee Inspection Fee Governmental Fund Fund Fund Funds REVENUES Ad Valorem taxes $ 39,774,303 $ - $ - $ 39,774,303 Intergovernmental revenue: State firefighter supplement 74,700 - - 74,700 Federal grants 419,464 - - 419,464 Other intergovernmental 20,160 - - 20,160 Charges for services: Inspection fees and other 504,119 - 926,533 1,430,652 Plan review fees - - 876,423 876,423 Impact fees - 83,973 - 83,973 Miscellaneous: Interest 353,790 12,668 5,914 372,372 Other 233,000 - 516 233,516 TOTAL REVENUES 41,379,536 96,641 1,809,386 43,285,563 EXPENDITURES Current Public safety Personnel services 30,136,773 - 1,697,963 31,834,736 Operating expenditures 5,815,819 29,668 112,445 5,957,932 Capital outlay 1,069,965 - - 1,069,965 Debt service: Principal reduction 506,445 57,500 - 563,945 Interest and fiscal charges 98,365 9,473 - 107,838 TOTAL EXPENDITURES 37,627,367 96,641 1,810,408 39,534,416 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 3,752,169 - (1,022) 3,751,147 OTHER FINANCING SOURCES AND USES Proceeds from capital lease 207,812 - - 207,812 Proceeds from disposition of capital assets 68,150 - - 68,150 Other financial assistance-CARES Act 1,000,000 - - 1,000,000 Transfers in - - - - Transfers out - - - - TOTAL OTHER FINANCING SOURCES AND USES 1,275,962 - - 1,275,962 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES 5,028,131 - (1,022) 5,027,109 FUND BALANCE-Beginning of the year 14,809,348 - 165,842 14,975,190 FUND BALANCE-End of the year $ 19,837,479 $ - $ 164,820 $ 20,002,299 The accompanying notes are an integral part of this statement. 16I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 10 of 113 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended September 30, 2020 Amount Net change(revenues and other financing sources over(under)expenditures and other financing uses)in fund balance-total governmental funds $ 5,027,109 The increase(change)in net position reported for governmental activities in the Statement of Activities is different because: Governmental funds report capital outlays as expenditures. In the Statement of Activities,however,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The loss on disposition of capital assets decreases the net position. Plus:expenditures for capital assets 1,069,965 Less:proceeds on disposition of capital assets (68,150) Plus:gain on disposition of capital assets 35,514 Less:current year depreciation (1,930,396) (893,067) The issuance of debt is reported as a financing source in governmental funds and thus contributes to the change in fund balance. In the Statement of Net Position,however,issuing debt increases long-term liabilities and does not affect the Statement of Activities. Similarly,repayment of principal is an expenditure in the governmental funds but reduces the liability in the Statement of Net Position. Borrowings(proceeds from issuance): Less: capital lease (207,812) (207,812) Repayments(principal retirement): Plus: capital leases 506,445 Plus:note payable 57,500 563,945 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. (Increase)decrease in Net OPEB liability (1,086,188) (Increase)decrease in net pension liability-FRS (24,632) (Increase)decrease in net pension liability-HIS 124,826 (Increase)decrease in net pension liability-FPT 146,162 (Increase)decrease in compensated absences (270,903) Increase(decrease)in deferred outflows-OPEB 510,545 (Increase)decrease in deferred inflows-OPEB 340,163 Increase(decrease)in deferred outflows-FRS/HIS (762,739) (Increase)decrease in deferred inflows-FRS/HIS 182,314 Increase(decrease)in deferred outflows-FTP (305,515) (Increase)decrease in deferred inflows-FTP (948,600) (2,094,567) Increase in net position of governmental activities $ 2,395,608 The accompanying notes are an integral part of this statement. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 11 of 113 STATEMENT OF FIDUCIARY NET POSITION-FIDUCIARY FUND September 30, 2020 Firefighters' Pension Fund ASSETS Investments,at fair value: Cash and cash equivalents -money market $ 1,253,376 Equity securities 69,857,034 Fixed income mutual funds- international 4,352,358 U.S. Government securities 8,467,945 Corporate bonds 9,572 807 Real estate 6,694,744 100,198,264 Prepaid expenses - Due from other governments- State 1,805,743 Due from District - Due from employees - Due from securities sold 80,792 Accrued investment income 117,083 TOTAL ASSETS 102,201,882 LIABILITIES Accounts payable 78,562 Due for securities purchased 24,228 Unearned Revenue 272,417 TOTAL LIABILITIES 375,207 NET POSITION Restricted for DROP benefits 607,949 Restricted for defined pension benefits 101,218,726 TOTAL NET POSITION $ 101,826,675 The accompanying notes are an integral part of this statement. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 12 of 113 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION-FIDUCIARY FUND Year Ended September 30, 2020 Firefighters' Pension Fund ADDITIONS Contributions: Employer $ 2,306,381 Plan members-employees 1,257,090 Buybacks 31,676 State of Florida, insurance premiums excise tax 1,805,743 Total contributions 5,400,890 Investment income: Net appreciation(depreciation)including realized gains/losses 6,408,982 Interest and dividends 2,591,377 9,000,359 Less: investment expenses (312,620) Net investment income(loss) 8,687,739 Other income - TOTAL ADDITIONS 14,088,629 DEDUCTIONS Benefits paid 967,191 DROP distributions 80,343 Administrative expenses 107,870 TOTAL DEDUCTIONS 1,155,404 NET INCREASE IN NET POSITION 12,933,225 NET POSITION-BEGINNING 88,893,450 NET POSITION-ENDING $ 101,826,675 The accompanying notes are an integral part of this statement. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 13 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization North Collier Fire Control and Rescue District(the "District") is an independent special taxing district located in Collier County, Florida. On January 1, 2015, the North Collier Fire Control and Rescue District was officially formed by merging the North Naples Fire Control and Rescue District and the Big Corkscrew Island Fire Control and Rescue District. On February 6, 2014,the two Districts entered into an Interlocal Agreement to merge. Each Board adopted a resolution identifying their intent to initiate the voluntary merger process pursuant to Florida Statute Chapter 189.074. The two Districts created a proposed Joint Merger Plan which was adopted by both Boards and ultimately put before the voters of each District by referendum. On November 4, 2014,voters from both districts approved the referendum to merge the two districts into one. On June 10, 2015, the Governor signed into legislation the official enabling act of the new District via Laws of Florida (LOF) Chapter 2015-191. The merger is intended to ensure the best possible emergency response times, operational efficiencies and ensure long term sustainability of the combined District. There was no impairment of capital assets as the result of the merger,which was effective as of January 1, 2015 and no significant accounting adjustment other than to combine the assets, liabilities and net position/fund balance at January 1, 2015 of both Districts. The District has the general and special powers prescribed by Florida Statute Chapters 189, 191 and 633.15. The District is governed by a five (5) member elected Board of Commissioners. Commissioners serve on a staggered four(4)year term basis. The North Collier Fire Control and Rescue District provides fire control and protection services, fire safety, inspections, code enforcement, fire hydrant maintenance, firefighter training, and crash and fire rescue services as well as basic and advanced life support services. The District serves a portion of Collier County, Florida. In providing these services,the District operates and maintains ten(10) stations and the related equipment and employs approximately 236 full-time professional firefighters and administrative staff. During the year ended September 30, 2009, the North Naples Fire Control and Rescue District entered into a joint venture agreement with Florida SouthWestern State College (FSW) for the operation of the North Collier Fire Training Center (NCFTC)to educate and train students as State Certified Firefighters. The North Collier Fire Control and Rescue District is now licensed to operate the NCFTC and FSW is the program coordinator. The District provides the training room and training 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 14 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Organization, continued facilities for the NCFTC. FSW, as program coordinator, is responsible for the operations of the NCFTC including but not limited to the screening and enrolling of students and for screening and engaging instructors. Therefore,the activities of the NCFTC are not included in the District's basic financial statements. Reporting Entity The District adheres to Governmental Accounting Standards Board(GASB) Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by GASB Statement Number 39, "Determining Whether Certain Organizations Are Component Units" (GASB 39) and GASB Statement Number 61, "The Financial Reporting Omnibus -An Amendment of GASB Statements No. 14 and No. 34" (GASB 61). This Statement requires the basic financial statements of the District(the primary government)to include its component units, if any. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable. Based on the criteria established in GASB 14, as amended, there are no component units required to be included or included in the District's basic financial statements. Government-wide 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 activities of the District and do not emphasize fund types. These governmental activities comprise the primary government. Fiduciary funds are properly not included in the government-wide financial statements. General governmental and intergovernmental revenues support the governmental activities. The purpose of the government-wide financial statements is to allow the user to be able to determine if the District is in a better or worse financial position than the prior year. The effect of all interfund activity between governmental funds has been removed from the government-wide financial statements. Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the pension fund financial statements. Under the accrual basis of accounting, revenues, expenses, , ol1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 15 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government-wide Financial Statements, continued gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Number 33, "Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33). Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements rather than reported as expenditures. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability in the government-wide financial statements rather than as expenditures. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are 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 or applicants who purchase,use, or directly benefit from goods, services, or privileges provided by a given function, and 2) grants and contributions that are restricted to meeting the operational or capital improvements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Program revenues are considered to be revenues generated by services performed and/or by fees charged such as inspection fees,burn permits, and hydrant tests. Fund Financial Statements The District adheres to GASB Number 54, "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54). Essentially,the implementation resulted in adoption of a fund balance policy and reclassification of the components within fund balance. i611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 16 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Financial Statements, continued The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity or net position,revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the District's governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in aggregate for governmental funds. The fiduciary fund financial statement includes financial information for the Firefighters' Pension Trust Fund. The fiduciary fund represents assets held by the District in a custodial capacity for the benefit of other individuals. Governmental Funds When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, as appropriate, and then from unrestricted resources. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. The District's major funds are presented in separate columns on the governmental fund financial statements. The definition of a major fund is one that meets certain criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments" (GASB 34). The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the governmental fund financial statements. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns on the fund financial statements. 1b11A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 17 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Governmental Funds, continued In accordance with the District's enabling documents, separate budgets within the General Fund are maintained for the North Naples (NN) Service Delivery Area and the Big Corkscrew Island(BCI) Service Delivery Area. Separate budgets are required for each service delivery area until such time as when one consistent millage rate is adopted for both service delivery areas. As such, separate service delivery area budget vs. actual comparison statements are included in the required supplementary information and a combining schedule is included in the other information section as the District must ultimately maintain and report a single General Fund. Fiduciary Fund The Pension Trust Fund accounts for the activities of the Firefighters' Pension Trust (FPT)Fund,which accumulates resources for the pension benefit payments to qualified firefighters. The net position of this fund is not considered to be part of the net position of the District and is not available to the District's creditors. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made,regardless of the measurement focus applied. The government-wide and fiduciary fund 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. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements 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. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 18 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Measurement Focus and Basis of Accounting, continued Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers tax revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues susceptible to accrual are interest on investments, and intergovernmental revenues. Interest on invested funds is recognized when earned. Intergovernmental revenues that are reimbursements for specific purposes or projects are recognized when all eligibility requirements are met. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) principal and interest on long-term debt, if any, is recognized when due; and (2) expenditures are generally not divided between years by the recording of prepaid expenditures. Separate financial statements are provided for governmental funds and the fiduciary fund, even though the latter are excluded from the government-wide financial statements. Non-current Government Assets/Liabilities GASB 34 requires non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as notes payable and capital leases, to be reported in the governmental activities column in the government-wide Statement of Net Position. Major Funds The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District(including both service delivery areas), except those required to be accounted for in another fund. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 19 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Major Funds, continued The Impact Fee Fund(the District has one combined Impact Fee Fund) consists of fees imposed and collected by Collier County based on new construction within each service delivery area of the District. The fees are restricted and can only be used for certain capital expenditures associated with growth within the District. Non-Major Fund The District reports the following non-major fund: The Inspection Fee Fund is used by the District to account for the receipt and expenditures of its Inspection and Plan Review Fee Programs. Fees are charged for the inspection of new building construction and for fire code plan review. The fees are collected by Collier County and are remitted to the District. Fiduciary Fund The Fiduciary Fund is excluded from the government-wide financial statements because the resources of those funds are not available to support the District's programs. The only type of fiduciary fund the District maintains is a Firefighters' Pension Trust Fund,under Florida Statute Chapter 175, which accounts for retirement assets held by the Plan that are payable to qualified firefighters upon retirement. Budgetary Information The District has elected to report budgetary comparisons of its major funds and its non-major fund as required supplementary information(RSI). Investments The District adheres to the requirements of GASB Statement Number 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools," (GASB 31) in which all investments are reported at fair value. Investments, including restricted investments, consist of certificates of deposit,U.S. Government securities, corporate debt and equity securities, and securities of government agencies unconditionally guaranteed by the U.S. Government. 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 20 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Capital Assets Capital assets,which include land, construction in progress,buildings, equipment and vehicles, are reported in the government-wide Statement of Net Position. The District follows a capitalization policy which calls for capitalization of all capital assets that have a cost or donated value of$5,000 or more and have a useful life in excess of one year. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Public domain(infrastructure) capital assets consisting of certain improvements other than building, including curbs, gutters and drainage systems, are not capitalized, as the District generally does not acquire such assets. No debt-related interest expense is capitalized as part of capital assets in accordance with GASB 34. Maintenance, repairs and minor renovations are not capitalized. The acquisition of land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred. Expenditures that materially increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement,the cost is eliminated from the respective accounts. Expenditures for capital assets are recorded in the fund statements as current expenditures. However, such expenditures are not reflected as expenditures in the government-wide statements,but rather are capitalized and depreciated. Depreciable capital assets are depreciated using the straight-line method over the following estimated useful lives: Capital Asset Years Buildings 15-30 Capital Assets acquired under Capital Lease 6 Office Equipment 3-30 Vehicles 3-10 Equipment and Machinery 3-15 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 21 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting The District adopted separate annual General Fund budgets for each of the two (2) service delivery areas within the District's General Fund. The District adopted annual budgets for the Special Revenue Funds, including the Impact Fee Fund and the Inspection Fee Fund. No budget was adopted or required to be adopted for the Firefighters' Pension Trust Fund. The District follows these procedures in establishing budgetary data for the General Fund,the Impact Fee Fund, and the Inspection Fee Fund: 1. During the summer of each year, the District Fire Chief submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing on the upcoming October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain citizen comments. 3. The budget is adopted by approval of the Board of Commissioners. 4. Budget amounts, as shown in these basic financial statements, are as originally adopted or as amended by the Board of Commissioners. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. 6. The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 22 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting, continued Several budget amendments were approved by the Board of Commissioners during the year ended September 30, 2020. Budgeted revenues and expenditures were increased (decreased) as follows: Amount General fund-NN SDA $ 1,400,595 General fund-BCI SDA (1,376,022) Total General Fund $ 24,573 Impact fee fund $ 438,722 Inspection fee fund $ 27,136 Impact Fees/Deferred Revenue The District levies an impact fee on new construction within the District. The intent of the fee is for growth within the District to pay for capital improvements needed due to the growth. The fee is imposed and collected by Collier County and remitted to the District which accounts for impact fees collected by service delivery area. The fee is refundable if not expended by the District within six (6)years from the date of collection. The District, therefore,records this fee as restricted cash and as unearned revenue until the date of expenditure, at which time it is recognized as revenue and charged to capital outlay in the fund financial statements and capital assets in the government-wide financial statements. Net Position In the government-wide financial statements,net position is identified as restricted when there are externally imposed constraints as to its use, such as through debt covenants,by grantors, or by law. 1 6 I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 23 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Balances The governmental fund financial statements the District maintains include nonspendable,restricted, assigned, and unassigned fund balances. Nonspendable fund balances are those that cannot be spent because they are either(a)not in spendable form or(b) legally or contractually required to be maintained intact. Criteria include items that are not expected to be converted into cash, for example prepaid expenses. Restricted fund balances are those that are restricted by a third party such as inspection fees. Restricted fund balances can only be spent for the stipulated purposes. The District's assigned fund balances are a result of official action of the District's Board. The District's intent is to maintain a minimum assigned fund balance level of three (3)months of budgeted total expenditures. The assigned fund balance includes the District's operational and capital reserves as well as its disaster reserve. At September 30, 2020, fund balance is also assigned for a variety of specific items by District Board action. Any use of the assigned fund balance requires the District's Board approval. Due To/From Other Funds Interfund receivables and payables arise from interfund transactions and are recorded by funds affected in the period in which the transactions are executed. Due From Other Governments No allowance for losses on uncollectible accounts has been recorded since the District considers all amounts to be fully collectible. Indirect Costs Expenses are allocated between service delivery areas on the same line item based upon a Board approved cost allocation plan. For the year ended September 30, 2020, the costs were allocated on a percentage basis of 87.78%to NN SDA and 12.22%to BCI SDA. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 24 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Compensated Absences The District's employees accumulate annual leave based on the number of years of continuous service. Upon termination of employment, employees can receive payment of accumulated annual leave if certain criteria are met. The costs of accumulated annual leave benefits (compensated absences) are expended in the respective operating funds when payments are made to employees. However,the liability for all accrued vacation and personal leave benefits is recorded in the government-wide Statement of Net Position. Encumbrances Encumbrance accounting,under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because, at present, it is not necessary in order to assure effective budgetary control or to facilitate effective cash planning and control. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, 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. Interfund Transactions The District considers interfund receivables (due from other funds) and interfund payables (due to other funds)to be loan transactions to and from other funds to cover temporary(three months or less) cash needs. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing funds and as reduction of expenditures/expenses in the fund that is reimbursed. Such amounts are eliminated in the government-wide financial statements. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 25 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Pensions In the government-wide Statement of Net Position, liabilities are recognized for the District's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Firefighters'Pension Fund(FPF),the Florida Retirement System(FRS) and the Health Insurance Subsidy (HIS) defined benefit plan and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose,benefit payments, (including refunds of employees' contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value for the FPF. The District's retirement plans and related amounts are described in a subsequent note. Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Net Position reports 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 future periods and so will not be recognized an as outflow of resources (expense/expenditure)until then. The deferred amount on pensions is reported only in the government-wide Statement of Net Position. The deferred outflows of resources related to pensions and OPEB are discussed in a subsequent note. In addition to liabilities, the statement of net position reports 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 and so will not be recognized as an inflow of resources (revenue)until that time. The deferred amount on pensions is reported only in the government-wide Statement of Net Position. A deferred amount on pension results from the difference in the expected and actual amounts of experience, earnings, and contributions. This amount is deferred and amortized over the service life of all employees that are provided with pensions and OPEB through these plans except earnings which are amortized over five to seven years. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 26 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Reclassifications Certain amounts in the financial statements have been reclassed to conform with the current presentation. These reclassifications had no effect on the results of operations or fund equity. Subsequent Events Subsequent events have been evaluated through May 7, 2021, which is the date the basic financial statements were available to be issued. NOTE B- CASH AND CASH EQUIVALENTS Cash and cash equivalents of the primary government(exclusive of the Firefighters' Pension Trust Fund)were $10,093,695 of which$939,176 was restricted at September 30, 2020. Total cash and cash equivalents included cash on hand of $1,300 at September 30,2020. Deposits The District's deposit policy(exclusive of the Firefighters'Pension Fund) allows deposits to be held in demand deposit and money market accounts and is consistent with Florida Statutes, Chapter 218.415(17). All District depositories are institutions designated as qualified depositories by the State Treasurer at September 30, 2020. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 27 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE B- CASH AND CASH EQUIVALENTS, CONTINUED Deposits, continued Deposits consist of the following at September 30, 2020: District Carrying Bank Amount Balance Unrestricted General Fund Depository Accounts $ 9,064,617 $ 9,405,031 Money Market 88,602 88,602 Total General Fund $ 9,153,219 $ 9,493,633 Restricted General Fund Depository Accounts $ - $ - Special Revenue Funds Impact Fee Depository Accounts $ 865,216 $ 865,216 Inspection Fee Depository Accounts 73,960 73,960 Total Special Revenue Funds 939,176 939,176 Total Restricted Funds $ 939,176 $ 939,176 The District's deposits were entirely covered by federal depository insurance or by collateral pursuant to the Public Depository Security Act(Florida Statute 280) of the State of Florida. Bank balances approximate market value. The District held no other types of deposits during the year ended September 30, 2020. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 28 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE B- CASH AND CASH EQUIVALENTS, CONTINUED Restricted Cash and Equivalents The following is a brief description of the restrictions on cash and cash equivalents: The Impact Fee account is used to account for the deposit of impact fees received by both service delivery areas and are restricted for certain capital asset acquisition associated with growth within the District. Impact fees are collected by Collier County for the District pursuant to County ordinance and District resolution. The Inspection Fee account is used to account for inspection fees collected for performing new construction fire inspections within the District. Such revenue is restricted for inspection service related costs. NOTE C - INVESTMENTS District Florida Statutes and the District's investment policy authorize investments in the Florida Fixed Income Trust(FL FIT). Specifically, the District's investment policy is consistent with Florida Statutes, Chapter 218.415(17). At September 30, 2020, the District's investments in the FL FIT-Cash Pool (CP) consist of the following: Fair Value(NAV)/ Cost Carrying Basis Amount General Fund-NN Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 7,445,923 $ 7,445,923 General Fund-BCI Florida Fixed Income Trust FL FIT-Cash Pool(CP) 2,005,229 2,005,229 $ 9,451,152 $ 9,451,152 Impact Fec Fund Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 708,160 $ 708,160 Total investments $ 10,159,312 $ 10,159,312 The Florida Fixed Income Trust(FL FIT) Cash Pool (CP) was established in accordance with Florida Statute 163.01 to provide local and state government entities access to diversified, high credit quality strategies for their cash reserves. The Florida Fixed Income Trust(FL FIT) Cash Pool is a floating net asset value(NAV)pool, managed to dollar-in/dollar-out and provides same day liquidity for participants. 1 6 I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 29 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED District, continued The Florida Fixed Income Trust(FL FIT) Cash Pool (CP) is an external 2a7-like investment pool, which is self administered. The Florida Fixed Income Trust(FL FIT) Cash Pool (CP) is not categorized as it is not evidenced by securities that exist in physical or book entry form. The Florida Fixed Income Trust(FL FIT) Cash Pool are stated at a net asset value (NAV)which approximates fair value,NAV=$1.00. These investments are subject to the risk that the market value of an investment, collateral protecting a deposit or securities underlying an investment will decline and lose value. FL FIT is not required to register(and has not registered)with the SEC; however, the fund is an external investment pool that has historically adopted operating procedures consistent with those required by Florida Statutes. The District's investment in the Florida Fixed Income Trust(FL FIT) Cash Pool(CP) represented approximately less than 1% of the Fund's total investments. At September 30, 2020,the Cash Pool's investments consisted of the following: 40% with commercial paper; 6%with institutional money market deposits and mutual funds; and 54%with certificates of deposit. These short-term investments are stated at fair value. Investment income is recognized as earned and is allocated to participants of the Fund based on their equity participation. The District adheres to GASB Statement No. 79 and where the Fund meets the criteria to make GASB Statement No. 31 which requires the following disclosures related to its FL FIT Cash Pool investment: Limitation on Participant Contributions and Withdrawals: FL FIT-Cash Pool has no limitations or restrictions on participant withdrawals,does not charge liquidity fees, and has not put in place a redemption gate. Each participant has the ability to withdraw 100 percent of its account balance any business day that the Investment Advisor is open for trading.The Investment Advisor is open for trading,and the funds will settle on the trading date for trades placed prior to 2:00 PM Eastern Time,and trade date plus one business day(T+1)for trades placed after 2:00 PM Eastern Time. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 30 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE C - INVESTMENTS, CONTINUED District, continued Investment Income, Unrealized Gains/Losses, and Realized Gains/Losses: FL FIT-Cash Pool follows industry practice and records security transactions on a trade date basis. Dividend and interest income is recognized on an accrual basis. Net investment income is distributed to participants at least monthly. Unrealized and realized gains and losses, if any, are distributed to participants on a daily and monthly basis. Distributions to participants are recorded on the ex-dividend date. Valuation: Fair value of the investments in the FL FIT-Cash Pool is determined on a daily basis. Fair value increases and decreases are included in the change in unrealized gains and losses during the period. Net realized gains and losses on sales of securities are computed based on specific identification. Mutual fund securities are recorded at fair value as determined by using net position value as furnished by a pricing service and the number of shares owned. Redemption Gates: Per the Administrator there are no redemption gates. Liquidity Fees: Per the Administrator there are no liquidity fees. Redemption Fees: As of September 30, 2020,there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. Fair Value: The carrying value of the investments held by the District approximate fair value. However, it is the opinion of the management of Florida Fixed Income Trust(FL FIT) it is exempt from GASB Statement No.72 financial hierarchy disclosures. Foreign Currency Risk: Florida Fixed Income Trust(FL FIT) Cash Pool is not exposed to foreign currency risk. Securities Lending: Florida Fixed Income Trust (FL FIT) Cash Pool did not participate in securities lending program during the period October 1, 2019 through September 30, 2020. Florida Fixed Income Trust(FL FIT) Cash Pool does provide separate audited financial statements for the year ended June 30, 2020. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 31 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED District, continued At September 30, 2020,the District reported Florida Fixed Income Trust(FL FIT) Cash Pool investments of$10,159,312. The Florida Fixed Income Trust(FL FIT) Cash Pool carried a credit rating of AAAf/S 1+by Fitch Rating and had a dollar weighted average days to maturity (WAM) of 127 days at September 30, 2020. The Cash Pool's duration is as follows: expected target duration 0-.5 years; effective duration of.25 years. Firefighters' Pension Plan-Investments Investments held in the Firefighters' Pension Trust Fund(the "Plan") totaled $100,198,264(including $1,253,376 in cash and cash equivalents, $4,352,358 in mutual funds, $69,857,034 in equity securities, $18,040,752 in fixed income securities, and $6,694,744 in real estate) at September 30, 2020. Such investments are administered in accordance with Firefighters'Pension Board policy. This policy provides for investments in cash and cash equivalents, money markets, mutual funds, equities, treasury notes, federal agency guaranteed securities, corporate bonds,notes and/or equities and real estate. The Firefighters' Pension Trust Fund accounts for resources held to fund the respective firefighter employee pension benefits. The Firefighters' Pension Trust Fund investments were held by a financial and investment institution and are subject to certain insurances up to limits specific to the trustee/custodian institution and retirement trust funds. These assets are subject to loss of principal. Investment Authorization: The Plan's investment policy is determined by the Plan's Board of Trustees. The policy has been designed by the Board to conduct the operations of the Plan in a manner so that the assets will provide the pension and other benefits provided under applicable laws. As such,the policy is designed by the Board to maximize the Plan's asset value,while assuming risk that is consistent with the Board's risk tolerance. The Trustees are authorized to acquire and retain every kind of property(real,personal or mixed) and every kind of investment specifically including, but not by way of limitation, money markets, mutual funds,bonds, debentures, stocks (preferred or common) and other corporate obligations. Investments are carried at fair value and/or NAV at September 30, 2020. Interest and dividend revenues are recorded as earned. Purchases and sales of investments are recorded on the trade-date basis. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 32 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Investment Authorization, continued: Unrealized gains and losses are presented as net appreciation(depreciation) in fair value of investments on the statement of changes in fiduciary net position along with gains and losses realized on sales of investments. Given the inherent nature of investments, it is reasonably possible that changes in the value of those investments will occur in the near term and that such changes could materially affect the amounts reported(loss of principal). Investment in all equity securities shall be limited to those listed on a major U.S. stock exchange and limited to no more than 80% (at market) of the Plan's total asset value. The equity position in any one company shall not exceed 5% of the Plan's total assets at market. Investments in stock of foreign companies shall be limited to 35% of the value of the Plan's total assets at market. The fixed income portfolio shall be compromised of securities with a quality rating of investment grade or higher by a major rating service. Except for Treasury and Agency obligations, the debt portion of the Plan shall contain no more than 10% of a given issuer irrespective of the number of differing issues. The current target allocation at September 30, 2020, of these investments at market is as follows: Investment Long Term Authorized Policy-Target Expected Real Investments Allocation% Rate Return% Domestic Equities 35-55% 7.5% Fixed Income 15-40% 2.5% TIPS 0-10% Not Available Real Estate 0-15% 4.5% International Equities 10-25% 8.5% International Fixed Income 0-10% 3.5% Global Tactical Asset Allocation 0-15% 3.5% Cash and Cash Equivalents Minimal Minimal Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally,the longer the maturity of an investment, the greater the sensitivity of its fair value to change in market interest rates. As a means of 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 33 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan -Investments, continued Interest Rate Risk, continued: limiting its exposure to interest rate risk, the Plan diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer with various durations of maturities. Information about the sensitivity of the fair values of the Plan's fixed income investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Plan's investment by maturity at September 30, 2020: Investment Maturities(in years) Investment Type Fair Value Less than 1 1 to 5 6 to 10 More than 10 Corporate bonds $ 9,572,807 $ 702,992 $ 3,141,938 $ 3,589,420 $ 2,138,457 Mutual funds-Int'l 4,352,358 190,198 973,187 1,711,347 1,477,626 U.S.Agencies 5,750,956 - 5,596 162,319 5,583,041 U.S.Treasuries 2,716,989 - - 751,055 1,965,934 S 22,393,110 $ 893,190 $ 4,120,721 $ 6,214,141 $ 11,165,058 Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The Plan's investment policy utilizes portfolio diversification in an effort to mitigate this risk. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 34 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Credit Risk, continued: The following table discloses credit rating by fixed income investment type at September 30, 2020, if applicable: Fair Percentage of Value Portfolio Quality rating of credit risk debt securities A $ 241,991 0.24 Al 322,389 0.33 A2 1,341,256 1.36 A3 1,895,002 1.92 AA 140,146 0.14 Aal 55,828 0.06 Aa2 170,558 0.17 Aa3 159,208 0.16 AAA 4,638,799 4.69 B 2,437,321 2.46 Bal 26,927 0.03 Baal 2,896,791 2.93 Baa2 1,767,334 1.79 Baa3 748,975 0.76 BB 65,285 0.07 BBB 217,618 0.22 Unrated government securities 5,267,682 5.32 Total credit risk debt securities $ 22,393,110 22.63 % * Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not have purchase limitations. Concentration of Credit Risk: The investment policy of the Plan contains limitations on the amount that can be invested in any one equity issuer as well as maximum portfolio allocation percentages. There were no individual equity investments that represented 5% or more of Plan net position at September 30, 2020. In addition,the Plan contains limitations on the amount that can be invested in any one debt issuer, except for the debt securities issued by the U.S. Government. There were no investments in non-U.S. Government debt securities that represented 10% or more of Plan net position at September 30, 2020. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 35 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Custodial Credit Risk: This is the risk that in the event of the failure of the counterparty, the plan will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. This risk is generally measured by the assignment of a rating by a nationally recognized statistical rating organization. Consistent with the Plan's investment policy,the investments are held by the Plan's custodial bank and registered in the Plan's name. Foreign Currency Risk: This is the risk that fluctuations in currency exchange rate may affect transactions conducted in currencies other than U.S. Dollars and the carrying value of foreign investments. The Plan's primary exposure to foreign currency risk is derived from its direct investments in international equity and fixed income mutual funds. The Plan owns shares in international equity and international bond funds. In accordance with the Plan's investment policy statement, the US equity and fixed income separate account managers may invest in individual securities designated as foreign as part of the normal course of the investment process. The individual foreign securities may be American Depository Receipts, or NYSE common stock, both transacted in US dollars, or foreign ordinary securities transacted in foreign currency. The investment policy limits the foreign investments to no more than 35% of the Plan's investment balance in equities and no more than 10% in fixed income. As of September 30, 2020, the Plan's exposure to foreign currency risk related to foreign equity funds and bonds is as follows: Fair Percentage of Value Portfolio International equity funds and fixed income(bonds) S 22,043,618 22% 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 36 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Fair Value Measurements: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan categorizes its fair value measurements within the fair value hierarchy as established by generally accepted accounting principles. The fail value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market as follows: Level 1 - Inputs to the valuation methodology are based upon quoted prices for identical assets in active markets. Level 2 - Inputs to the valuation methodology are based upon observable inputs for the assets either directly or indirectly, other than those considered Level 1 inputs. which may include quoted prices for identical assets in markets that are not considered to be active, and quoted prices of similar assets in active or inactive markets. Level 3 -Inputs to the valuation methodology are based upon unobservable inputs. Following is a description of the valuation methodologies used for asset measured at fair value. Common stock: Valued at the closing price reported on the New York Stock Exchange. Government securities: Valued using pricing models maximizing the use of observable inputs for similar securities. Mutual funds: Valued at the daily closing price as reported by the Plan. Mutual funds held by the Plan are open-ended mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value(NAV) and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded. Corporate bonds: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing the value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds,the bond is valued under a discounted cash flows approach that maximizes observable inputs, such 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 37 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Fair Value Measurements, continued: as current yield of similar instruments,but included adjustments for certain risks that may not be observable, such as credit and liquidity risks or a broker quote, if available. Real estate: Valued at the net asset value of shares held by the Plan at year end. The Plan has investments in private market real estate investments for which no liquid public market exists. Money market funds: Valued at the floating net asset value (NAV) of shares held by the Plan at year end. The following table presents the Plan's fair value hierarchy for investments at fair value as of September 30, 2020: Fair Value Measurements Using Quoted Prices in Significant Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Investments by fair value level Equity securities: Common stocks $ 20,531,197 $ 20,531,197 $ - $ - Foreign stocks 1,793,102 1,793,102 - - Domestic equity mutual funds 32,938,027 - 32,938,027 - International equity mutual funds 14,594,708 - 14,594,708 - REIT - - - - Total equity securities 69,857,034 22,324,299 47,532,735 - Debt securities U.S.treasury securities 2,716,989 2,716,989 - - U.S.agency securities 5,750,956 - 5,750,956 - Corporate bonds 9,572,807 - 9,572,807 - Fixed income mutual funds 4,352,358 - 4,352,358 - Totaldebtsecurities 22,393,110 2,716,989 19,676,121 - Total investments by fair value 92,250,144 $ 25,041,288 $ 67,208,856 $ - Investments measured at the net asset value(NAV) Real estate fund 6,694,744 Money market funds(exempt) 1,253,376 Total investments $ 100,198,264 * As required by GAAP,certain investments have not been classified in the fair value hierarchy. The fair value amounts presented in the previous table are intended to permit reconciliation for the fair value hierarchy to the total investment line item in the Statement of Fiduciary Net Position. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 38 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Fair Value Measurements, continued: The following table summarizes investment for which fair value is measured using the net asset value per share practical expedient, including their relate unfunded commitments and redemption restrictions: Investments measured at the NAV Redemption Unfunded Frequency(if Redemption Fair Value Commitments Currently Eligible Notice Period Real estate fund $ 6,694,744 $ - Quarterly 90 Days Real estate fund: The fund is an open-ended real estate investment fund investing primarily in core institutional office, retail, industrial, and multi-family properties located throughout the United States. The investment is valued at NAV and its redemption must be received by the fund 90 days prior to quarter end. NOTE D - DUE TO/FROM OTHER FUNDS Interfund receivables and payables at September 30, 2020, are as follows: Due from Due to Fund Other Funds Other Funds General Fund: Impact Fee Fund $ 147,224 $ - Inspection Fee Fund - 129,536 Total General Fund 147,224 129,536 Special Revenue Funds: Impact Fee Fund General Fund - - Inspection Fee fund - Inspection Fee Fund General Fund 129,536 147,224 Impact Fee Fund - - Total Special Revenue Funds 129,536 147,224 Total $ 276,760 $ 276,760 Interfund receivables and payables were eliminated for presentation purposes in the Statement of Net Position at September 30, 2020. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 39 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE E - CAPITAL ASSETS ACTIVITY The following is a summary of changes in capital assets activity for the year ended September 30, 2020: Balance Balance October 1 Increases/ Decreases/ Adjustments/ September 30 2019 Additions Retirements Reclassifications 2020 Capital Assets Not Being Depreciated: Land $ 15,712,989 $ - $ - $ - $ 15,712,989 Construction in progress 1,319,431 - - - 1,319,431 Total Capital Assets Not Being Depreciated 17,032,420 - - - 17,032,420 Capital Assets Being Depreciated: Assets held under capital lease 4,058,233 207,812 - - 4,266,045 Buildings 20,799,903 483,425 - - 21,283,328 Office equipment 1,424,716 133,077 (11,482) - 1,546,311 Vehicles 8,788,161 34,992 (346,373) - 8,476,780 Equipment&machinery 3,957,340 210,659 (226,516) - 3,941,483 Total Capital Assets Being Depreciated 39,028,353 1,069,965 (584,371) - 39,513,947 Less Accumulated Depreciation: Assets held under capital lease (947,042) (465,520) - - (1,412,562) Buildings (8,404,324) (782,415) - - (9,186,739) Office equipment (823,007) (155,324) 11,094 - (967,237) Vehicles (7,188,103) (324,788) 315,802 - (7,197,089) Equipment&machinery (3,112,663) (202,349) 224,839 - (3,090,173) Total Accumulated Depreciation (20,475,139) (1,930,396) 551,735 - (21,853,800) Total Capital Assets being Depreciated,Net 18,553,214 (860,431) (32,636) - 17,660,147 Capital Assets,Net $ 35,585,634 $ (860,431) $ (32,636) $ - 34,692,567 Related Debt (2,718,357) Net investment in capital assets $31,974,210 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 40 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE E - CAPITAL ASSETS ACTIVITY, CONTINUED Depreciation expense was charged to the following functions during the year ended September 30,2020: Amount General Government Total Depreciation Expense $1,930,396 The District has capital assets held under capital leases with a total cost of $4,266,045 at September 30,2020. The capital assets held under capital lease has accumulated depreciation of$1,412,562 and depreciation expense of$465,520 for the year ended September 30,2020. NOTE F- LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30,2020: Balance Retirements Balance Amounts October 1 And September 30 Due Within 2019 Additions Adjustments 2020 One Year Net OPEB Liability $ 8,893,953 $ 1,086,188 $ - $ 9,980,141 $Net Pension Liability-FRS 9,378,787 24,632 - 9,403,419 Net Pension Liability-HIS 1,861,254 - (124,826) 1,736,428 Net Pension Liability-FPT 8,359,098 - (146,162) 8,212,936 - Capital Leases 2,844,490 207,812 (506,445) 2,545,857 528,133 Note Payable-Station 230,000 - (57,500) 172,500 57,500 Compensated Absences 2,064,170 270,903 - 2,335,073 - $33,631,752 $ 1,589,535 $ (834,933) $34,386,354 $ 585,633 The following is a summary of long-term obligations at September 30, 2020: Amount Net OPEB liability-actuarially determined-GASB No.75 $ 9,980,141 Net pension liability-FRS pension plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida FRS Plan. 9,403,419 Net pension liability-HIS plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida FRS Plan. 1,736,428 1b11A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 41 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE F- LONG-TERM OBLIGATIONS, CONTINUED Amount Net pension liability-Firefighters'Pension Trust(FPT)plan. This amount is actuarially determined through calculation based upon the audited financial statements of the FPT Plan. 8,212,936 $445,486 capital lease payable dated May 20,2019,for radio equipment to a financial institution over a 7 year period ending June 1,2026 in equal annual payments of$77,900 at a 5.2%fixed interest rate. 391,312 $207,812 capital lease payable dated December 12,2019,for six staff vehicles to a financial institution over a 5 year period ending December 31,2024 in equal monthly payments of$3,918 at a 5.14%fixed interest rate. 176,015 $2,546,268 capital lease payable dated January 15,2016 for one(1)ladder truck and three(3)pumper trucks payable to a financial institution in ten (10)annual payments of$295,233 ending December 14,2025 including interest at 2.822%. 1,608,807 $888,147 capital lease payable beginning May 1,2018 for a ladder truck payable to a financial institution in five(5)annual payments of$192,494 ending May 1,2022 including interest at 2.74%. 369,723 $1,150,000 note payable dated January 15,2003 for BCI Station to a financial institution over a 20 year period ending November 1,2022 in equal annual principal payments on November 1 of$57,500 plus accrued interest at a variable rate of 120%of the 5 year treasury rate.The note is collateralized by Impact Fees. Interest rate at September 30,2020 was.3894% 172,500 Non-current portion of compensated absences. Employees of the District are entitled to paid vacation based on length of service and job classification.(Combined SDA) 2,335,073 34,386,354 Less Current Portion (585,633) Long-Term Portion $ 33,800,721 The annual debt service requirements at September 30,2020,were as follows: Capital Capital Capital Capital Note Years Ending Leases Payable Leases Payable Leases Payable Leases Payable Payable Total September 30 Principal(1) Principal(1) Principal(1) Principal(1) Principal(2) Principal 2021 $ 57,060 $ 38,879 $ 249,831 $ 182,363 $ 57,500 $ 585,633 2022 60,099 40,925 256,881 187,360 57,500 602,765 2023 63,299 43,079 264,131 - 57,500 428,009 2024 66,671 45,346 271,585 - - 383,602 2025 70,221 7,786 279,249 - - 357,256 2026-2027 73,962 - 287,130 - - 361,092 $ 391,312 $ 176,015 $ 1,608,807 $ 369,723 $ 172,500 2,718,357 Net OPEB Liability 9,980,141 Net Pension Liability-FRS 9,403,419 Net Pension Liability-HIS 1,736,428 Net Pension Liability-FPT 8,212,936 Compensated absences 2,335,073 Total long-term debt $ 34,386,354 (1)Debt service paid through General Fund (2)Debt service paid through Impact Fee Fund Interest expense for the year ended September 30,2020,was$107,838 including interest expense on capital leases of$98,365. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 42 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE G- RETIREMENT PLANS The following three retirement plans have been established by the District: Plan 1 -Florida Retirement System(FRS) including HIS Plan 2 -Firefighters' Pension Trust Fund(Florida Statute 175) Plan 3 -401(a)Plan Employee participation in a specific plan is based on the respective employee's original hire date. General Information about the Florida Retirement System The Florida Retirement System("FRS")was created in Chapter 121, Florida Statutes. The FRS was created to provide a defined benefit pension plan("Pension Plan") for participating public employees. All District employees are participants in the Statewide Florida Retirement System(FRS)under authority of Article X, Section 14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS was amended in 1998 to add the Deferred Retirement Option Program("DROP") under the defined benefit plan and amended in 2000 to provide an integrated defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a separate cost-sharing, multiple-employer defined benefit pension plan to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the District are eligible to enroll as members of the State-administered FRS except those already participating in Plan 2. Provisions relating to the FRS are established by Chapters 121 and 122,Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of two cost-sharing, multiple-employer defined benefit plans (Pension and HIS Plans) and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements,required supplementary information, actuarial report, and other relevant information dated June 30, 2020, is available from the Florida Department of Management Services'Website (www.dms.myflorida.com). i i1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 43 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED General Information about the Florida Retirement System, continued The District's total FRS and HIS pension expense was $1,313,666 for the year ended September 30, 2020 and is recorded in the government-wide financial statements. Total District actual FRS and HIS retirement contribution expenditures were $833,435, $954,512 and$981,054 for the years ended September 30, 2020, 2019 and 2018,respectively. The District contributed 100% of the required contributions. FRS Pension Plan Plan Description. The FRS Pension Plan("Plan") is a cost-sharing,multiple- employer defined benefit pension plan,with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class-Members of the FRS who do not qualify for membership in the other classes. Senior Management Service Class(SMSC)-Members in senior management level positions. Special Risk Class-Members who are employed as certified firefighters and meet the criteria to qualify for this class. Elected Officials-Members who are elected by the voters within the District boundaries. Employees enrolled in the Plan prior to July 1,2011, vest at six years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at eight years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for those members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Members of both Plans (Pension and HIS) may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The Plan provides retirement,disability, death benefits, and annual cost of living adjustments to eligible participants. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 44 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued DROP, subject to provisions of Section 121.091, Florida Statutes,permits employees eligible for normal retirement under the Plan to defer receipt of monthly benefit payments while continuing employment with an FRS employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided. Benefits under the Plan are computed on the basis of age, and/or years of service, average final compensation, and credit service. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011,the average final compensation is the average of the five highest fiscal years' earnings; for the members initially enrolled on or after July 1, 2011,the average final compensation is the average of the eight highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on retirement plan and/or the class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. The following chart shows the percentage value of each year of service credit earned: Class,Initial Enrollment,and Retirement Age/Years of Service %Value Regular Class and elected members initially enrolled before July 1,2011 Retirement up to age 62,or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Regular Class and elected members initially enrolled on or after July 1,2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 Special Risk Regular Service from December 1, 1970 through September 30, 1974 2.00 Service on or after October 1, 1974 3.00 Senior Management Service Class 2.00 Elected Officers'Class 3.00 i 6I 1 A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 45 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. Plan members initially enrolled on or after July 1, 2011,will not have a cost-of-living adjustment after retirement. Contributions. The Florida Legislature establishes contribution rates for participating employers and employees. Contribution rates during the year ended September 30, 2020 were as follows: Percent of Gross Salary* Class Employee Employer(I) Employer(3) Florida Retirement System,Regular 3.00 8.47 10.00 Florida Retirement System,Senior Management Service 3.00 25.41 27.29 Florida Retirement System,Special Risk 3.00 25.48 24.45 Deferred Retirement Option Program-Applicable to Members from All of the Above Classes 0.00 14.60 16.98 Florida Retirement System,Reemployed Retiree (2) N/A N/A Florida Retirement System,Elected Official 3.00 48.82 49.18 Notes: (1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/19-6/30/20. (2) Contribution rates are dependent upon retirement class in which reemployed. (3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/20-6/30/21. * As defined by the Plan. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 46 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Pension Plan. At September 30, 2020, the District reported an FRS pension liability of$9,403,419 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30,2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The District's proportionate share of the net pension liability was based on the District's 2019-20 fiscal year contributions relative to the total 2019-20 fiscal year contributions of all participating members. At September 30, 2020,the District's proportionate share was .021696122 percent, which was a decrease of.005537229 percent from its proportionate share measure as of September 30, 2019. For the year ended September 30, 2020, the District recognized FRS pension expense of$1,221,479. In addition,the District reported deferred outflows of resources and deferred inflows of resources related to the pension from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences between expected and actual experience $ 359,888 $ - Change of assumptions 1,702,319 Net difference between projected and actual earnings on pension plan investments 559,889 - Changes in proportion and differences between District contributions and proportionate share of contributions 359,217 2,876,204 District contributions subsequent to the measurement date 194,254 - Total $ 3,175,567 $ 2,876,204 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 47 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued The deferred outflows of resources related to the FRS pension,totaling $194,254 resulting from District contributions subsequent to the measurement date, will be recognized as a reduction on the net pension liability in the fiscal year ended September 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pension will be recognized in pension expense over the remaining service period of 5.9 years as follows: Fiscal Years Ending September 30 Amount 2021 $ 47,161 2022 47,161 2023 47,161 2024 47,162 2025 (92,811) Thereafter 9,275 Total $ 105,109 Actuarial Assumptions. The total pension liability in the July 1, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Valuation Date July 1, 2020 Measurement date June 30, 2020 Inflation 2.40 percent Real payroll growth 0.85 percent Salary increases 3.25 percent, average, including inflation Investment rate of return 6.80 percent, net of pension plan investment expense, including inflation Actuarial cost method Individual entry age Mortality rates were based on the Generational PUB-2010 with Projection Scale MP-2018. The actuarial assumptions used in the July 1, 2020, valuation were based on the results of an actuarial experience study for the period July 1, 2013 through June 30, 2018. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 48 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued The long-term expected rate of return on pension plan investments was not based on historical returns,but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation(1) Return Return Deviation Cash 1.0% 2.2% 2.2% 1.2% Fixed income 19.0% 3.0% 2.9% 3.5% Global equity 54.2% 8.0% 6.7% 17.1% Real estate(property) 10.3% 6.4% 5.8% 11.7% Private equity 11.1% 10.8% 8.1% 25.7% Strategic investments 4.4% 5.5% 5.3% 6.9% Total 100.0% Assumed inflation-Mean 2.4% 1.7% (1)As outlined in the Plan's investment policy Money-weighted Rate of Return.The annual money-weighted rate of return on FRS Pension Plan investments for the year ended September 30, 2020 was 3.35%. Discount Rate. The discount rate used to measure the total pension liability was 6.80 percent. The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 49 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net pension liability calculated using the discount rate of 6.80 percent which was reduced from 6.90%, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower(5.80 percent) or 1-percentage-point higher(7.80 percent)than the current rate: 1% Current 1% Decrease Discount Rate Increase (5.80%) (6.80%) (7.80%) District's proportionate share of the net pension liability $ 15,015,680 S 9,403,419 $ 4,716,034 Pension Plan Fiduciary Net Position. Detailed information about the pension plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report(FRS "CAFR") dated June 30, 2020. The FRS CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http://www.dms.myflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30, 2020,the District reported a payable of$0 for the outstanding amount of contributions in the Pension Plan. lei - A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 50 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED HIS Plan Plan Description.The Health Insurance Subsidy Plan("HIS Plan") is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Division of Retirement within the Florida Department of Management Services. Benefits Provided. For the year ended September 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by $5. The payments are at least$30 but not more than $150 per month,pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which can include Medicare. Contributions. The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the year ended September 30, 2020, the contribution rate ranged between 1.66 percent and 1.66 percent of payroll pursuant to Section 112.363,Florida Statutes. The District contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which HIS payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants,benefits may be reduced or cancelled. Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to the HIS Plan. At September 30, 2020,the District reported a HIS liability of$1,736,428 for its proportionate share of the net HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability was used to calculate the net pension liability determined by an actuarial valuation as of July 1, 2020. The District's proportionate share of the net HIS liability was based on the District's 2019-20 fiscal 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 51 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED HIS Plan, continued year contributions relative to the total 2019-20 fiscal year contributions of all participating members. At September 30, 2020, the District's proportionate share was .014221549 percent, which was a decrease of.002413129 percent from its proportionate share measured as of September 30, 2019. For the fiscal year ended September 30, 2020, the District recognized HIS expense of$92,187. In addition, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences between expected and actual experience $ 71,030 $ 1,340 Change of assumptions 186,717 100,967 Net difference between projected and actual earnings on HIS pension plan investments 1,386 _ Changes in proportion and differences between District HIS contributions and proportionate share of HIS contributions 162,965 697,660 District contributions subsequent to the measurement date 21,003 Total $ 443,101 $ 799,967 The deferred outflows of resources related to HIS, totaling $21,003 resulting from District contributions subsequent to the measurement date,will be recognized as a reduction on the net pension liability in the year ended September 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense over the remaining service period of 7.2 years as follows: Fiscal Years Ending September 30 Amount 2021 $ (60,823) 2022 (60,823) 2023 (60,823) 2024 (60,825) 2025 (61,170) Thereafter (73,405) Total $ (377,869) 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 52 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED HIS Plan, continued Actuarial Assumptions. The total pension liability in the July 1, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40 percent Real Payroll Growth 0.85 percent Salary Increases 3.25 percent,average,including inflation Municipal Bond Rate 2.21 percent Actuarial Cost Method Individual entry age Mortality rates were based on the Generational PUB-2010 with Projected Scale MP-2018. Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has been completed for the Plan. Discount Rate. The discount rate used to measure the total HIS liability was decreased from 3.50 %to 2.21%. In general, the discount rate for calculating the total HIS liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Sensitivity of the District's Proportionate Share of the Net HIS Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net HIS liability calculated using the discount rate of 2.21 percent, as well as what the District's proportionate share of the net HIS liability would be if it were calculated using a discount rate that is 1-percentage-point lower(1.21 percent) or 1-percentage-point higher(3.21 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase (1.21%) (2.21%) (3.21%) District's proportionate share of the net HIS liability $ 2,007,233 S 1,736,428 $ 1,514,775 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 53 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED HIS Plan, continued Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Comprehensive Annual Financial Report(FRS "CAFR") dated June 30, 2020. The FRS CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http://www.dms.myflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30, 2020, the District reported a payable of$0 for the outstanding amount of contributions to the HIS plan. FRS -Defined Contribution Pension Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. District employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law,but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.) as the FRS defined benefit plan. Contributions 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 54 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS-Defined Contribution Pension Plan, continued are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Allocations to the investment member's accounts during the 2019-20 fiscal year were as follows: Percent of Gross Salary* Class Employee Employer(1) Employer(3) Florida Retirement System,Regular 3.00 8.47 10.00 Florida Retirement System,Senior Management Service 3.00 25.41 27.29 Florida Retirement System,Special Risk 3.00 25.48 24.45 Deferred Retirement Option Program-Applicable to Members from All of the Above Classes 0.00 14.60 16.98 Florida Retirement System,Reemployed Retiree (2) N/A N/A Florida Retirement System,Elected Official 3.00 48.82 49.18 Notes: (1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/19-6/30/20. (2) Contribution rates are dependent upon retirement class in which reemployed. (3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/20-6/30/21. * As defined by the Plan. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds)to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5 year period,the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2020,the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any,would be immaterial to the District. 1 6 I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 55 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED FRS-Defined Contribution Pension Plan, continued After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. The District's Investment Plan pension expense included within the FRS expense totaled $95,758 for the year ended September 30, 2020. Payables to the Investment Plan. At September 30, 2020, the District reported a payable of$0 for the outstanding amount of contributions to the Plan. Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund The following brief description of the North Collier Fire Control and Rescue District Firefighters' Pension Plan(originally known as the North Naples Firefighters' Pension Plan) (the "Plan") is provided for general information purposes only. The Plan's name changed effective January 1, 2015 with the District's merger. Participants should refer to the Plan agreement for a more complete description of the Plan. On July 11, 1996, under the authority of Florida Statute 175 and Laws of Florida, Chapter 95-338, the District's Board of Commissioners passed Resolutions 96-004 and 96-005,providing for the establishment and funding of a single employer defined benefit retirement plan and trust for newly hired fire suppression personnel effective January 1, 1996. The resolutions establish that certified firefighters hired on or after January 1, 1996 are to become participants in the District's Firefighters' Pension Trust (FPT) Fund. The Plan is totally administered, including all investment management, by a third party administrator and the Plan's appointed 5 member Pension Board of Trustees. Effective October 1, 2011, employee participants were required to contribute 3% (similar to FRS) of compensation(an increase from .5% of compensation)per Resolution 11-031. Effective January 1, 2019, employee participants are required to contribute 8.48%of their compensation to the Plan. 1 6I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 56 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund, continued Effective January 1, 2015, employees of the Big Corkscrew Island (BCI) Fire District merged with those of North Naples Fire District. As such, five employees of BCI joined Plan 2, the Firefighters' Pension Trust Fund. During the year ended September 30, 2015, the District adopted Governmental Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting for Pensions" (GASB 68). As such, the Plan's beginning net position was restated and the net pension liability was recorded in the government-wide financial statements. During the years ended September 30, 2020, 2019, and 2018 there were employee contributions in the amount of$1,257,090, $1,027,420, and $412,640, respectively,to the Plan. The employer contributed 100% of its required contributions, as well as those required contributions of the participating firefighters (0.5%pick-up). The Plan provides for full-time firefighting personnel to become eligible to participate in the Plan immediately upon hire. Under District resolution 96-005,the District elected to pay the 0.5% (1%prior to December 9, 2004) employee required contribution on behalf of the employee. Effective December 9, 2004,the employee contribution was reduced to 0.5% (employee pick up). Effective July 1, 2001 (per resolution 01-01),benefits under the Plan vest after six years of creditable service. Employees who elect normal retirement at or after age 55 with 6 years of creditable service, or 25 years of service regardless of age, are entitled to a retirement benefit. Effective October 1, 2011, required employee contributions increased to 3% of compensation. Employees may elect early retirement after 6 years of creditable service with a reduction in benefit not to exceed 3% for each year before normal retirement. The Plan also includes certain disability and death benefits. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 57 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2-Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Contributions - Contributions to the Plan are derived from three sources: the Plan's participants are required to contribute to the Plan in the amount of 3% of their covered wages and pursuant to resolution 11-031 the District has elected to increase the affected employees' salary by 0.5% (employer pick-up), State funds (fire [hazard] insurance premium excise tax per Florida Statute Chapter 175) and employer(remaining amount necessary to meet actuarial requirement). For the period from January 1, 1996 through September 30, 1996, no employer contributions were required. Employer contributions were required beginning October 1, 1996. The State contributions under Chapter 175 began in June 1997. This revenue is based on property hazard insurance premium excise tax paid within the District and is applied up to an approved"frozen" limit of$1,746,716. The District(employer) is required to fund the difference each year between the total contributions from all other sources for the year and the total cost for the year pursuant to the most recent actuarial valuation of the Plan. The total cost for any year equals total normal cost plus the additional amounts sufficient to amortize the unfunded past service liability over a 30 year period commencing the first year of the Plan's inception. Effective January 1, 2019, Resolution 18-031 was adopted,which implemented and increase in the benefit multiplier to 3.53% for all years of service for all active members and an increase in the member contribution rate to 8.48% (3.0%prior to January 1, 2019). The District shall pay 0.5% of the member contributions. Pursuant to Florida law, the District is ultimately responsible for making sure the Plan remains actuarially sound. Therefore, each year, the District must contribute an amount determined by the Board in conjunction with their actuary to be sufficient, along with the participant's contribution and the State contribution, to fund the benefits under the Plan. The employer's contribution will vary from year to year. Pursuant to Chapter 175,Florida Statutes,the District imposed a 1.85% excise tax on property hazard insurance premiums paid to insure real or personal property within the District. The proceeds of this tax are contributed to this Plan as are of the District's contribution. 1 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 58 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2- Plan Description and Provisions-Firefithters' Pension Trust Fund, continued Pursuant to the actuarial study dated October 1,2019 for the year ended September 30, 2020,the District's contribution(District only) requirement was 35.89%of the actuarially determined covered payroll. Actual District contributions to the Plan for the years ended September 30, 2020, 2019 and 2018, were $2,306,381, (includes cash of$2,041,502 and application of unearned revenue of$264,879), $2,769,139 and$2,990,030, respectively. The State contributions (excise tax) for the years ended September 30, 2020, 2019 and 2018 were $1,805,743, $1,874,326, and $1,741,988,respectively. Employees contributed(3%prior to January 1, 2019 and 8.48% after December 31, 2018) $1,257,090, $1,027,420 and$412,640 to the Plan for the years ended September 30, 2020, 2019 and 2018,respectively. At September 30, 2020, the Plan's total net position was restricted for retiree benefits. Payables to the Pension Plan. At September 30, 2020, the District reported a payable of$0 for the outstanding amount of contributions payable to the pension plan. Pension Benefits -Effective July 1, 2001, employees with 6 or more years of service are entitled to monthly pension benefits,beginning at the earlier of age 55 with 6 years of credited service or 25 years credited service regardless of age. Benefit is equal to 3.53% of their average final compensation(AFC) times credited service prior to October 1, 2013 plus 3% of average final compensation times credited service on and after October 1, 2013. AFC means the average of the highest five (5) years within the last ten(10) years of service. Maximum benefit is 100% of AFC. The Plan permits early retirement with 6 years (10 years prior to July 2, 2001) of credited service. Members hired after December 31, 2014 must have 10 years of credited service to qualify for early retirement. Employees may elect to receive their pension benefits in the form of a 10 year certain and life annuity. If employees terminate before rendering 10 years of credited service,they forfeit the right to receive the portion of their accumulated Plan benefits. All retirement benefits are annually increased for cost of living at 3%. 1 6 1 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 59 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Death and Disability Benefits -Upon the death of any vested member, whether or not still in active employment, a survivor benefit is payable to the beneficiary starting when the member would have reached retirement age. The benefit is equal to the vested pension benefit and is payable for 10 years. The Minimum line of duty death benefit is 50% of the participant's salary, which is payable either to the participant's spouse or minor children. This line of duty death benefit is payable to the spouse for life, or to age 18 for the children. Effective July 1, 2019 and in accordance with Chapter 2019-21, Laws of Florida, the Plan must consider a firefighter to have died in the line of duty if he or she dies as a result of cancer or circumstances that arise out of the treatment of cancer. Employees who become totally disabled receive the greater of the accrued pension benefit or 25%of AFC, if non-service incurred, or 42% of AFC, if active service incurred. Effective December 9, 2004, the active service related benefit was increased to 65%. Effective July 1, 2019 and in accordance with Chapter 2019-21, Laws of Florida, the Plan must consider a firefighter totally and permanently disabled in the line of duty if he or she meets the Plan's definition of totally and permanently disabled due to the diagnosis of cancer or circumstances that arise out of the treatment of cancer. Supplemental Benefits -Effective December 31, 2004, each service and disability retiree and their joint pensioners or beneficiaries and vested terminated members shall receive a supplemental payment to be used as a health insurance subsidy payment. The amount shall be five dollars ($5) for each full year of credited service for life. The maximum monthly supplement is one hundred fifty dollars ($150) and the minimum thirty dollars ($30). DROP -Effective December 12, 2013, Resolution 13-034 was adopted, which established a Deferred Retirement Option Plan("DROP"). An"eligible participant" of the pension plan, which is defined as an individual currently on full-time work status, may elect to participate in the DROP on the first day of the month coincident with or 1 6 I I A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 60 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued next following either, attainment of age fifty-five (55) and the completion of ten(10) years of credited service,or the completion of twenty-five(25) years of credited service, which date shall constitute the "initial date of eligibility". An eligible participant electing to participate in DROP must complete and execute such forms as may be required by the District and supplied by the Board of Trustees not less than thirty(30) days prior to entering the DROP. The forms shall include,but not limited to, an irrevocable letter of resignation effective no later than the conclusion of the maximum period of DROP participation. Election into the DROP is irrevocable provided there shall be no minimum period of participation; however in the event of a voluntary termination prior to the maximum period, any DROP participant termination prior to such maximum DROP period shall submit a written notice at least thirty(30) days prior to such early termination of DROP participation. An eligible participant may elect to participate in the DROP only once. After commencement of participation in DROP, a participant shall no longer earn, accrue or purchase additional service credits towards retirement benefits or later enhancements to the firefighters' pension plan. Upon the effective date of an eligible participant's participation in DROP, all contributions by and on behalf of the participant to the plan shall be discontinued. For all plan purposes, service and vesting credits of an eligible participant electing DROP shall be fixed as of the effective date of commencement of DROP participation. Any services as a firefighter after entry into DROP shall not be used for calculation or determination of benefits payable by the pension plan. The average final compensation of a participant, as defined in this plan shall be determined as of the effective date of commencement of DROP participation and other subsequent earnings shall not be used for calculation or determination of benefits payable by the pension plan. Income Recognition - Interest income is recorded on the accrual basis. Investments are reported at market value. Short-term investments are reported at cost, which approximates market value. Actuarial Present Value of Accumulated Plan Benefits-Accumulated plan benefits are those future periodic payments, including lump-sum distributions, that 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 61 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions -Firefighters' Pension Trust Fund, continued are attributable under the Plan's provisions to the service employees have rendered. Accumulated plan benefits include benefits expected to be paid to (a)retired or terminated employees or their beneficiaries, (b)beneficiaries of employees who have died, and(c)present employees or their beneficiaries. Benefits under the Plan are based on employees' age at entry to the Plan and are based upon the current starting salary for firefighters at entry level. Benefits payable under all circumstances, retirement, death, disability and termination of employment, are included, to the extent they are deemed attributable to employee service rendered to the valuation date. The actuarial present value of accumulated plan benefits is determined by an actuary and is the amount that results from applying actuarial assumptions to adjust the accumulated plan benefits to reflect the time value of money(through discounts for interest) and the probability of payment(by means of decrements such as for death, disability,withdrawal, or retirement)between the valuation date and the expected date of payment. The significant actuarial assumptions used in the valuations as of October 1, 2019 were (a) life expectancy of participants -MP 2018 (combined healthy, sex distinct) Mortality Table was used, (b)retirement age assumptions (the assumed average retirement age was 55), (c) annual investment return of 7.2% (net of fees) and(d) the rate of inflation at 2.5%. The actuarial valuation reflected assumed average rates of return of 7.2% (net of fees). The foregoing actuarial assumptions are based on the presumption that the Plan will continue. If the Plan terminated, different actuarial assumptions and other factors might be applicable in determining the actuarial present value of accumulated plan benefits. The actual money-weighted rate of return on Plan assets was 9.4%. Payment of Benefits -Benefit payments to participants are recorded upon distribution. The District contributed 100% of the required contributions. A summary of certain Plan details and trend information is included below. A copy of the Plan and Plan audit as of and for September 30, 2020 can be obtained by writing to the District at 1885 Veterans Park Drive,Naples, Florida 34109-0492, or by calling(239) 597-3222. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 62 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued The following is a summary of the Single-Employer Defined Benefit Pension Plan (Florida Statutes Chapter#175), including funding policies, contribution methods, benefit provisions and trend information: Firefighters'Pension Trust Fund-Plan 2 Year established and governing authority District Resolution 96-004(July 11, 1996) Governing body Board of Trustees of Plan Determination of contribution requirements: Actuarially determined Employer(District) Amount required in excess of Member and applicable State contributions needed in order to pay current costs and amortize any unfunded past service cost over 30 years Plan members 3.0%of covered payroll-prior to 1/1/19 8.48%of covered payroll-after 12/31/18 Funding of administrative costs: Employer Period required to vest 10 years Annual salary increase Graduated Scale based on Credited Service(see below) Post retirement benefit increase Cost of living increase of 3%each year Eligibility for distribution Earlier of 55 with 6 years of credited service or (Normal retirement) 25 years credited service regardless of age Provisions for: Disability benefits Yes Death benefits Yes Early retirement Yes Assumed inflation 2.5% Actuarial assumption/method changes since prior valuation: Actuarial Cost Method Entry Age Normal actuarial cost method.Prior valuations utilized Frozen Amortization Method Level Dollar Amount,Closed Remaining Amortization Period 27 years(as of 10/1/17) Net-of-Fees Investment Return 7.20% Annual Salary Increase Flat 6%per year to graduated scale(9%per year for first 10 years&3%per year for 10+years) Actuarial valuation date October 1,2019 Measurement date September 30,2020 Actuarial Experience Study July 1,2018 16l1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 63 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2-Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Net Pension Liability of the Fund-The components of the actuarially determined net pension liability of the District at September 30, 2020 were as follows: Amount Total pension liability $ 110,312,027 Plan fiduciary net position (102,099,091) District's net pension liability $ 8,212,936 Plan fiduciary net position as a percentage of the total pension liability 92.55% The total pension liability was determined by an actuarial valuation as of October 1, 2019 and updated to the measurement date of September 30, 2020 using certain actuarial assumptions,the most significant of which were 7.2 percent for the investment rate of return(net of fees), 3.0-9.0 percent for projected salary increases and 2.5 percent for inflation. Mortality rates were based on the MP-2018 Combined Healthy Mortality Table. Disabled lives are set forward two years for females and set back four years for males. The Plan's policy with regards to the allocation of invested assets is established and may be amended by the Pension Board. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the Plan. The investment policy was last amended in February 2014. The following table summarizes the Board's adopted allocation policy and the long-term expected real rates of return for each major asset class: Long-Term Target Actual Expected Real Asset Class Allocation Allocation Rate of Return* Domestic equities 45% 53.37% 7.5% International equities 15% 16.36% 8.5% Fixed income 15% 16.47% 2.5% International fixed income 5% 5.87% 3.5% Global Tactical Asset Allocation 10% 0.00% 3.5% Real estate 10% 6.68% 4.5% Cash and cash equivalents minimal 1.25% not available *annual arithmetic return 100% 100% 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 64 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund. continued The long-term expected rate of return on Plan assets was determined using a building-block method in which best-estimate ranges of expected future real rates of return(expected returns,net of Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Discount Rate. The discount rate used to measure the total pension liability was 7.2 percent. The projection of cash flows used to determine the discount rate assumed that plan participant contributions will be made at the current contribution rate and that District contributions will be made at rates equal to the difference between actuarially determined contribution rates and the participant rate. Based on those assumptions,the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan participants. Therefore,the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Rate of Return Sensitivity. The sensitivity of the net pension liability to changes in the discount rate was measured as follows. The net pension liability of the District was calculated using the discount rate of 7.2 percent. It was also calculated using a discount rate that was 1-percentage-point lower(6.2 percent) and 1-percentage-point higher(8.2 percent)than the current rate: 1% Current 1% Decrease Discount Rate Increase 6.2% 7.2% 8.2% Net pension liability(asset) $ 25,506,443 $ 8,212,936 $ (5,841,698) Deferred Inflows/Outflows of Resources Related to Pensions On September 30, 2020,the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 16I1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 65 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2-Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 4,454,983 $ 3,887,115 Change of assumptions 2,444,529 1,239,360 Net difference between projected and actual earnings on plan investments 527,160 - Contributions subsequent to the measurement date 3,847,243 - $ 11,273,915 $ 5,126,475 For the year ended September 30, 2020,the District recognized pension expense of $10,286,794 related to this Plan. The deferred outflows of resources related to the pension, resulting from District contributions subsequent to the measurement date, will be recognized as a reduction on the net pension liability in the fiscal year ended September 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pension will be recognized in pension expense as follows: Years Ending September 30 Amount 2021 $ (10,251) 2022 (48,359) 2023 635,109 2024 842,213 2025 670,947 Thereafter 210,538 Total $ 2,300,197 Memberships of the Plan consisted of the following at October 1, 2020: Firefighters'Pension Trust Fund-Plan 2 Active plan members 156 Inactive plan members or beneficiaries currently receiving benefits 20 Inactive plan members entitled to but not yet receiving benefits 11 Total 187 Number of participating employers 1 Number of participating state agencies 1 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 66 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund, continued The following is a schedule of changes in net pension liability for the fiscal year ended September 30, 2020: Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) Balances at September 30,2019 $ 97,252,548 $ 88,893,450 $ 8,359,098 Changes for the fiscal year: Service cost 5,214,372 - 5,214,372 Interest 7,583,575 - 7,583,575 Differences between expected and actual experience 16,869 - 16,869 Changes of assumptions 722,935 - 722,935 Changes in benefit terms - - - Adjustment* 537,587 537,587 - Contributions-Employer - 2,041,500 (2,041,500) Contributions-State - 1,805,743 (1,805,743) Contributions-Employee - 1,256,800 (1,256,800) Contributions-Buy Back 31,676 31,676 Net investment income - 8,687,741 (8,687,741) Benefit payments,including refunds of employee contributions (1,047,535) (1,047,535) - Administrative expense - (107,871) 107,871 Net changes 13,059,479 13,205,641 _ (146,162) Balances at September 30,2020 $ 110,312,027 $ 102,099,091 $ 8,212,936 *Includes$537,296 unearned revenue and$291 employee contribution receivable. Annual Pension Cost,Net Pension Obligation and Reserves Current year annual pension costs for the Firefighters' Pension Trust Fund are shown in the trend information provided. The Firefighters' Pension Trust Fund had a net unfunded actuarial accrued liability at October 1, 2020 of$8,902,058. The Plan assets are legally reserved for the payment of the respective plan member benefits within the Plan. There are no assets legally restricted for plan benefits other than these assets within the Plan. The Firefighters' Pension Trust Fund held certain investments at year end. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 67 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund, continued Trend Information Firefighters'Pension Trust Fund Total(1) Required Contributions Net Annual District State State Pension Fiscal Pension Required(2) Required Frozen Actual Percentage Obligation Year Contribution Contribution Contribution Contribution Contribution Contributed (NPO) 2020 $ 4,112,124 $ 2,306,381 $ 1,805,743 $ 1,746,716 $ 4,112,124 100% - 2019 $ 4,643,465 $ 2,769,139 $ 1,874,326 $ 1,746,716 $ 5,180,761 112% - 2018 $ 4,732,018 $ 2,990,030 $ 1,741,988 $ 1,746,716 $ 4,732,018 100% - 2017 $ 4,302,560 $ 2,933,393 $ 1,369,167 $ 1,746,716 $ 4,302,560 100% - 2016 $ 3,146,984 $ 1,735,437 $ 1,411,547 $ 1,746,716 $ 3,146,984 100% - 2015 $ 2,594,733 $ 1,107,133 $ 1,487,600 $ 1,746,716 $ 2,594,733 100% - 2014 $ 2,896,024 $ 1,518,926 $ 1,377,098 $ 1,746,716 $ 2,896,024 100% - 2013 $ 3,386,733 $ 2,127,828 $ 1,314,064 $ 1,746,716 $ 3,441,892 102% - 2012 $ 3,283,811 $ 2,166,246 $ 1,214,214 $ 1,746,716 $ 3,380,454 103% - 2011 $ 3,473,598 $ 2,333,799 $ 1,139,799 $ 1,746,716 $ 3,626,125 104% - 2010 $ 3,190,997 $ 2,170,443 $ 1,020,554 $ 1,746,716 $ 3,200,901 100% - 2009 $ 2,796,158 $ 1,756,228 $ 1,039,931 $ 1,746,716 $ 3,079,738 110% - 2008 $ 2,211,933 $ 1,009,715 $ 1,485,798 $ 1,485,798 $ 2,495,513 113% - (1) The District considers its annual pension cost to be its actuarially determined required annual pension contribution including the employer and state contribution. Fy 2018 required contribution reduced by$0 excess State money reserve. (2) For 2020 the District contributions include application of$264,879 of prepaid contributions. Pension Trust Required Supplementary Information Schedule of Funding Progress Firefighters' Pension Trust Fund: Unfunded Actuarial Actuarial Actuarial UAAL as Value of Accrued Accrued Annual a%of Actuarial Assets** Liability(AAL) Liability Funded Covered Covered Valuation (AVA) -Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) (b-a)/c 10/01/20 $ 102,099,091 $ 111,001,149 $ 8,902,058 92.0% $ 14,829,151 60.0% 10/01/19 $ 88,893,030 $ 98,664,952 $ 9,771,922 90.1% $ 14,434,146 67.7% 10/01/18 $ 80,928,687 $ 84,102,348 $ 3,173,661 96.2% $ 13,739,853 23.1% 10/01/17 $ 70,747,813 $ 73,738,012 $ 2,990,199 95.9% $ 13,771,976 21.7% 10/01/16 $ 58,512,948 $ 61,707,055 $ 3,194,107 94.8% $ 11,890,295 26.9% 10/01/15 $ 51,534,195 $ 51,541,750 $ 7,555 100.0% $ 9,671,942 0.1% 10/01/14 $ 49,189,571 $ 47,467,581 $ (1,721,990) 103.6% $ 8,770,495 -19.6% 10/01/13 $ 42,143,137 $ 41,366,768 $ (776,369) 101.9% $ 9,092,235 -8.5% 10/01/12 $ 33,983,491 $ 33,924,855 $ (58,636) 100.2% $ 8,254,150 -0.7% 10/01/11 $ 26,196,164 $ 26,153,965 $ (42,199) 100.2% $ 8,291,830 -0.5% 10/01/10 $ 22,990,534 $ 23,284,830 $ 294,296 98.7% $ 7,737,940 3.8% 10/01/09 $ 17,833,111 $ 18,108,267 $ 275,156 98.5% $ 7,522,834 3.7% 10/01/08 $ 16,719,426 $ 16,890,153 $ 170,727 99.0% $ 7,082,194 2.4% ** reflected by actuary as Plan Fiduciary Net Position 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 68 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund, continued Firefighters' Pension Trust Fund Valuation date 10/01/18 Actuarial cost method Entry Age Normal Amortization method Level dollar, closed Mortality table MP-2018 Combined Healthy Remaining amortization period 27 years (as of 10/1/17) Actuarial asset valuation method 5 Year Smoothed Market Actuarial assumptions: Investment rate 7.2% (net of fees) Projected salary increase Graduated based on Service (9%per year for first 10 years & (3%per year for 10 or more years) Inflation 2.5% Post retirement cost of living adjustment 3% Measurement date September 30, 2019 Changes of Assumptions Member contribution rate changed effective January 1, 2019 from 3%to 8.48%. District still pays .5% of member contribution. Benefit changes effective January 1, 2019: Increased benefit multiplier to 3.53% for all years of service. Effective July 1, 2019, the Plan must consider a firefighter permanently and totally disabled if diagnosed with cancer per Laws of Florida, Chapter 2019-21. For the year ended September 30, 2020,the following changes to assumptions occurred: 1)mortality tables changed from RP-2000 to MP-2018, and 2) investment rate changed from 7.4%to 7.2%. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 69 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE G- RETIREMENT PLANS, CONTINUED Plan 3 -Plan Description and Provisions -401(a) The Board of Fire Commissioners established the 401(a) Plan for the general employees and elected officials who are ineligible to participate in the Florida Retirement System. The Plan was effective on January 1, 2013. At September 30, 2020,the Plan had two (2) active participants. The Plan allows for employer contributions. Amounts contributed by the employer correspond to the percentage of contributions by class, established for participants of the Florida Retirement System. Employee contributions are prohibited. Employer contributions are 100%vested after completion of one year of service. A year of service is based on an employee completing at least 1,000 hours of service during a plan year. Total District contributions to the Plan for the years ended September 30, 2020, 2019 and 2018 were $7,956, $1,098 and $1,174,respectively. NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB) The District formally established two (2) OPEB Plans to provide its retirees the opportunity to obtain insurance (medical, dental and life)benefits. All retired full-time employees are eligible for OPEB benefits if actively employed by the District immediately before retirement. As such, active employees with at least twenty five (25)years of service as of September 30, 2010 were allowed to elect to remain in the Defined Benefit Plan or to enter the Post Employment Health Plan(PEHP), a defined contribution Plan. The defined benefit Plan provides a$5,000 life insurance benefit fully paid by the District. All retirees and Early Retirement Incentive Program (ERIP)participants, who were eligible,remained in the Defined Benefit Plan. All other active employees at that time, September 30, 2010, as well as future employees entered the PEHP. Retirees under the PEHP Plan are responsible for the full cost of coverage. 16I1A , NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 70 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED The benefits are provided both with and without contractual or labor agreements. The benefits may require contribution from the retirees, depending on certain specified criteria and, in particular, length of creditable employment. The District finances the benefits on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due for both Plans. Effective January 1, 2015, all active employees of the merged District are covered with the same post retirement health benefits. Effective May 1, 2017 the District offered a post-employment health insurance supplementation for eligible retirees who have completed fifteen(15)years of service including three (3) years as a Chief Officer. Under this plan, the District shall contribute 100%toward the cost of the retiree's participation in the District's health insurance program for the retiree and qualifying spouse/dependent until the employee reaches the age of 65 or is eligible for Medicare,whichever occurs first. This benefit is provided in lieu of contributions to the PEHP. Defined Benefit Plan Specifically,the Defined Benefit Plan provides that the District will pay a portion of medical and dental premiums for retirees depending on their years of credited service starting with the completion of fifteen(15)years of credited service. As such, the District pays 50% of the employee's premium and 25% of the spouse's premium at completion of 15 years of service progressing to 100% of the employee's premium and 100%of the spouse's premium upon completion of 25 years of service for certain employees based on final rank at date of retirement. The retiree can buy dependent coverage as part of the Plan. The District also pays the premium associated with a$5,000 life insurance benefit. During fiscal years 2009 and 2010, the District offered two (2) separate Early Retirement Incentive Programs (ERIP)to a number of active employees. A portion of the programs includes full payment of premiums associated with medical, dental, vision and life insurance coverage, including dependent coverage for a period of 3 years. After the 3 year period ends, the ERIP participants receive the Defined Benefit Plan benefits they had been eligible for at termination. During the year ended September 30, 2014, the District paid the final amounts due on the ERIP Plans. Note that the projected premiums for the dental and life benefits were assumed to cover the entire cost of the program. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 71 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Post Employment Health Plan (PEHP) The PEHP is a defined contribution plan administered by the District. All employees who did not elect to remain in the Defined Benefit Plan, and all future active employees are participants in the PEHP. Originally participants in the PEHP had $7,000 deposited on their behalf into an account on the 20th anniversary of their date of hire and on each subsequent anniversary. Additionally, those participants having over 20 years of credited service at their date of retirement also received a$30,000 deposit on their behalf at date of separation. Effective October 1, 2012, the Plan was changed to limit District total contributions to $50,000 per employee. Effective October 1, 2015, participants in the PEHP will have $2,500 deposited into a trust account following the 5th anniversary of their date of hire and on each subsequent year. Additionally, those participants having over 20 years of credited service at their date of retirement will receive a maximum contribution ranging from $37,000 to $50,000 depending on length of service. The PEHP is designed to offer similar benefits to those offered under the Defined Benefit Plan. The District, as part of the PEHP, entered a group variable annuity contract. As such,the PEHP Plan's asset custodian and third party administrator is the insurance company through which the annuity is contracted. General -Funding Policy The District paid$270,650 for retiree's and ERIP participants'health care premiums as part of the Defined Benefit Plan on a pay-as-you-go basis for the year ended September 30, 2020. The District also contributed$309,000 to the PEHP Plan for the year ended September 30, 2020. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 72 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Post Employment Health Plan (PEHP), continued General-Funding Policy, Continued No separate trust has been established for either Plan. No separate financial statement is issued for either OPEB Plan. All required disclosures are presented herein. The District obtained an actuarial valuation for its defined benefit OPEB Plan to measure the current year's subsidies and project these subsidies into the future, making an allocation of that cost to different years. The following schedule of funding progress presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Plan Description-Defined Benefit The year ended September 30, 2018 was the District's transition year and now adheres to GASB No. 75 "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions." GASB No. 75 requires the District record its actuarially determined total OPEB liability. All retired full-time employees are eligible for OPEB benefits if actively employed by the District immediately before retirement. As of September 30, 2020, there were forty-three (48)retirees eligible to receive benefits. At September 30, 2020 there were two hundred thirty four(236) active District employees. The benefits are provided both with contractual or labor agreements. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by the employer and plan members) and include types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 73 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Actuarial Methods and Assumptions, continued At September 30, 2020,the District's Net OPEB Liability of$9,980,141 was measured as of September 30, 2019, and was determined by an actuarial valuation as of October 1, 2018 using the alternate measurement method. OPEB expense for the year ended September 30, 2020 was $723,646. The following actuarial assumptions and other inputs were applied to all periods included in the measurement: The following simplifying assumptions were made: Mortality-Life expectancies were based on RP2000 Mortality Tables for Males and Females projected 10 years. Annual healthcare cost trend using the Society of Actuaries Long-Run Medical Cost Trend Model baseline assumptions with an initial rate of 8.00%per year trending to 4.00%by 2073. Turnover-Non-group-specific age-based turnover data from GASB Statement 45 were used as the basis for assigning active members a probability of remaining employed until the assumed retirement age and for developing an expected future working lifetime assumption for purposes of allocating to periods the present value of total benefits paid. Amortization Period: Rolling 20 year amortization Amortization Method: level percentage of payroll The discount rate was 3.58%(for 2020)(4.18%for 2019)(3.64%for 2018)and was based on the 20 Year Municipal Bond Rate with AA/Aa2 or higher. Entry age normal cost method was used. Inflation Rate 2.50% Salary Increases 6.00% Discount Rate 3.58% Initial Trend Rate 8.00% Ultimate Trend Rate 4.00% Years to Ultimate 56 The FRS salary scale was used Participation percentage: 50% The actuarial assumptions used in the valuation reported for September 30,2019 were based on results of an actuarial experience study performed for the FRS Retirement Plan for July 1,2018. The rationales for selecting each of the assumptions used in the financial accounting valuation and for the assumptions changes summarized above are to best reflect the current market conditions and recent plan experience. 1611At� NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 74 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability Amount Balance at September 30,2019 $ 8,893,953 Changes for the Year: Service Cost 557,861 Interest Cost on Total OPEB Liability 385,797 Change in Benefit Terms - Difference Between Expected and Actual Experience - Changes in Assumptions 591,573 Benefit Payments (449,043) Net Changes 1,086,188 Balance at September 30,2020 $ 9,980,141 The following presents the net OPEB liability of the District as well as what the District's net OPEB liability would be if it were calculated using a discount rate that is 1 percent higher or 1 percent lower than the current discount rate. I%Decrease Current Rate 1%Increase 2.58% 3.58% 4.58% Net OPEB Liability $ 11,100,367 $ 9,980,141 $ 9,023,294 The following presents the net OPEB liability of the District as well as what the District's net OPEB liability would be if it were calculated using healthcare trend rates that are 1 percent higher or 1 percent lower than the current healthcare trend rate. 1%Decrease Trend Rate 1%Increase 3.00-7.00% 4.00-8.00% 5.00-9.00% Net OPEB Liability $ 8,776,252 $ 9,980,141 $ 11,438,189 1 61 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 75 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability, continued For the year ended September 30, 2020,the District recognized OPEB expense credit of$723,646. At September 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources* Resources* Differences Between Expected and Actual Experience $ 324,946 $ - Changes in Assumptions 525,843 2,226,110 Employer contribution subsequent to measurement date 488,166 - Total $ 1,338,955 $ 2,226,110 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended September 30: Amount 2021 $ (228,012) 2022 (228,012) 2023 (228,012) 2024 (228,012) 2025 (228,009) Thereafter (235,264) Total $ (1,375,321) Changes in Assumptions: • Decreased discount rate from 4.18%to 3.58% 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 76 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE I- RISK MANAGEMENT During the year ended September 30, 2020,the District provided health benefits as follows: The District continued the use of a high deductible health plan offered to employees and retirees of the District. The District does not offer vision coverage to the employees of the District. The District offers a HSA plan for its employees. The District contributes $5,000 for those eligible participants who have met the family deductible and$3,000 for those eligible participants who have to meet the individual deductible to the HSA plan annually. Participants may also elect to contribute to the respective plan on a pre-tax basis. HSA amounts that are not utilized by the year end are carried over and are the property of the participant per IRS regulation. The District's HSA contributions for the year ended September 30, 2020 were $1,131,209. The District incurred $5,309,208 in health related claims, third party administration costs, disability, premiums and reinsurance premiums including HSA contributions (noted above) and workers compensation insurance during the year ended September 30, 2020, for the self-insurance and fully-funded insurance programs. It is the policy of the District to purchase third party commercial insurance for other remaining forms of potential risks to which it is exposed. The District's risk management activities are reported in the General Fund. No accrual has been recorded for claims and incidents not reported to the insurer. The District paid $472,669 for building, auto and other liability insurances for the year ended September 30, 2020. The District had no significant reductions in insurance coverage from the prior year. Reported claims have not exceeded the insurance coverage for the years ended September 30, 2011 through September 30, 2020. NOTE J - PROPERTY TAXES Property taxes are levied after formal adoption of the District's budget and become due and payable on November 1 of each year and are delinquent on April 1 of the following year. Discounts on property taxes are allowed for payments made prior to the April 1 delinquent date. Tax certificates are sold to the public for the full amount 16I1A ,� NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 77 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE J - PROPERTY TAXES, CONTINUED of any unpaid taxes and must be sold not later than June 1 of each year. The billing, collection, and related record keeping of all property taxes is performed for the District by the Collier County Tax Collector. No accrual for the property tax levy becoming due in November 2020 is included in the accompanying basic financial statements, since such taxes are collected to finance expenditures of the subsequent period. Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is approximately two years after taxes become delinquent and occurs only upon request of a holder of a delinquent tax certificate. As of September 30, 2020, $180,896 was recorded in the General Fund and was due from the Collier County Tax Collector to the District for ad valorem taxes and excess fees, and interest. Important dates in the property tax cycle are as follows: Assessment roll certified July 1 Millage resolution approved No later than 93 days following certification of assessment roll. Taxes due and payable(Levy date) November/with various discount provisions through March 31. Property taxes payable-maximum discount(4 percent) 30 days after levy date Beginning of fiscal year for which taxes have been levied October 1 Due date March 31 Taxes become delinquent(lien date) April 1 Tax certificates sold by the Collier County Tax Collector Prior to June 1 For the year ended September 30, 2020, the Board of Commissioners of the District levied ad valorem taxes at a millage rate of$1.00 per$1,000 (1.0 mills) of the 2019 net taxable value of real property located within the North Naples Service Delivery Area. For the year ended September 30, 2020,the Board of Commissioners of the District levied ad valorem taxes at a millage rate of$3.75 per$1,000(3.75 mills) of the 2019 net taxable value of real property located within the Big Corkscrew Island Service Delivery Area. 1 61 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 78 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE K- IMPACT FEE FUND ACTIVITY During the year ended September 30, 2020, the Impact Fee Fund had the following activity: Amount Unearned revenue,October 1,2019 $ 745,734 Impact fee receipts 911,074 Impact fee refunds _ Due from other Governments 36,139 Interest and other income 12,668 Operating expenses (29,668) Principal reduction (57,500) Loan interest (9,473) Capital outlay _ Transfers in(out) _ Unearned revenue,September 30,2020 $ 1,608,974 NOTE L- FUND BALANCE/NET POSITION ALLOCATIONS Fund Balance/Net Position were allocated for the following purposes at September 30, 2020: NN BCI Total Nonspendable-General Fund Amount Amount Amount Nonspendable fund balance-General Fund prepaid expenses $ 1,164,084 $ - $ 1,164,084 NN BCI Total Assigned fund balance-General Fund Amount Amount Amount General Fund-Expenses-Oct-Dec $ 8,289,632 $ 1,154,014 $ 9,443,646 General Fund-Emergency reserve 6,779,691 1,750,058 8,529,749 General Fund-Fire apparatus 700,000 - 700,000 Total General Fund $ 15,769,323 $ 2,904,072 $ 18,673,395 NN BCI Total Unassigned-General Fund Amount Amount Amount General Fund $ - $ - $ Total Restricted Fund Balance/Net Position-Inspection Fee Fund Amount Inspection Fee Fund $ 164,820 1 61 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 79 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE M-LEASED VEHICLES On October 13, 2016, the District leased seventeen(17) vehicles under a forty eight (48) month operating lease agreement with a monthly payment of$7,583 beginning March 2017. The minimum annual lease payments are as follows: Year Ending September 30 Amount 2021 $ 37,915 $ 37,915 Lease expense for the year ended September 30, 2020 was $80,964 NOTE N- COMMITMENTS AND CONTINGENCIES The District is involved from time to time in certain routine litigation, the substance of which either as liabilities or recoveries,would not materially affect the financial position of the District. Although the final outcome of the lawsuits, assertions, and claims or the exact amount of costs and/or potential recovery is not presently determinable, in the opinion of the District's legal counsel,the resolution of these matters will not have a materially adverse affect on the financial condition of the District. As a general policy, the District plans to vigorously contest any such matters. In September 2020,the Board Approved a capital lease in the amount of $1,106,574 for the purchase of twenty-three (23) cardiac monitors not yet received at September 30, 2020. These monitors nor the lease payable are recorded at September 30, 2020 as the monitors were delivered in January 2021 and as of May 7, 2021 have yet to be operational. The lease requires sixty(60)monthly payments of approximately$19,347 including interest at 2.75%beginning January 28, 2021. NOTE O- DEFICIT UNRESTRICTED NET POSITION (NET ASSETS) During the year ended September 30, 2020,the District's unrestricted net position (net assets)balance was a deficit of$(6,627,736), due substantially to recording the current year actuarially determined net pension liability of$19,352,783. The District's total available fund balance at September 30, 2020 remains approximately equal to four(4)months of actual expenditures. However, the Board assigned available fund balance of$18,673,395 to fund operations for the first quarter of the subsequent fiscal year. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 80 of 113 NOTES TO THE FINANCIAL STATEMENTS September 30, 2020 NOTE O - DEFICIT UNRESTRICTED NET POSITION (NET ASSETS), CONTINUED During the year ended September 30, 2019, the District's unrestricted net position (net assets)balance was a deficit of$(9,561,300), due substantially to recording the current year actuarially determined net pension liability of$19,599,139 and the net OPEB liability of$8,893,953. The District's total available fund balance at September 30, 2019 remains approximately equal to four(4)months of actual expenditures. However, the Board assigned fund balance of$13,786,863 to fund operations for the first quarter of the subsequent fiscal year. NOTE P- COVID 19 In early March 2020, the World Health Organization classified the coronavirus outbreak"COVID-19" as a global pandemic, and it,unfortunately, continues to spread. Business continuity, including supply chains and consumer demand across a broad range of industries and countries, have been severely impacted, as governments and their citizens take significant and unprecedented measures to mitigate the consequences of the pandemic. On April 1, 2020, Florida Governor, Ron DeSantis ordered all Floridians to stay home, to lock down the State against the Coronavirus. Certain governmental activity was cancelled and/or severely limited. The District has adapted its operations to accommodate the current environment. However,the full impact of the COVID-19 outbreak continues to evolve as of the date of this report. This pandemic has adversely affected global economic activity and greatly contributed to instability in financial markets. Management is actively monitoring the local situation on its financial condition, liquidity, operations, donors, industry, and workforce. Given the daily evolution of COVID-19 and the global and local responses to curb its spread, the District is not able to estimate the future effects of COVID-19 on its results of operation, financial condition, or liquidity for fiscal year 2020-21. NOTE Q - SUBSEQUENT EVENT On March 24, 2021, the District approved the sale of the Yarberry Lane property as surplus land for$3,505,000. l6I 1A4 COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 81 of 113 COMBINING BALANCE SHEET - GENERAL FUND -BY SERVICE DELIVERY AREA September 30, 2020 North Naples Big Corkscrew Total Service Island Service General Delivery Area Delivery Area Eliminations Fund ASSETS Cash and cash equivalents $ 7,612,117 $ 1,542,402 $ - $ 9,154,519 Restricted cash and cash equivalents - - - - Investments 7,445,923 2,005,229 - 9,451,152 Due from other governments 1,312,585 34,490 - 1,347,075 Due from other funds 827,001 - (679,777) 147,224 Other receivables,net 122,642 1,728 - 124,370 Prepaid expenses 1,164,084 - - 1,164,084 TOTAL ASSETS $ 18,484,352 $ 3,583,849 $ (679,777) $ 21,388,424 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable and accrued expenses $ 1,413,909 $ - $ - $ 1,413,909 Rctainage payable - - - - Due to other funds 129,536 679,777 (679,777) 129,536 Contract deposits 7,500 - - 7,500 Unearned revenue - - - - TOTAL LIABILITIES 1,550,945 679,777 (679,777) 1,550,945 FUND BALANCE Nonspendable 1,164,084 - - 1,164,084 Restricted - - - - Assigned 15,769,323 2,904,072 - 18,673,395 Unassigned - - - - TOTAL FUND BALANCE 16,933,407 2,904,072 - 19,837,479 TOTAL LIABILITIES AND FUND BALANCE $ 18,484,352 $ 3,583,849 $ (679,777) $ 21,388,424 The accompanying notes are an integral part of this statement. 1 6 I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 82 of 113 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND - BY SERVICE DELIVERY AREA Year Ended September 30, 2020 General Fund North Naples Big Corkscrew Total Service Island Service General Delivery Area Delivery Area Fund REVENUES Ad Valorem taxes $ 32,932,850 $ 6,841,453 $ 39,774,303 Intergovernmental revenue: State firefighter supplement 74,700 - 74,700 Federal grants 419,464 - 419,464 Other Intergovernmental 20,160 - 20,160 Charges for services 502,318 1,801 504,119 Miscellaneous: Interest 257,962 95,828 353,790 Other 212,264 20,736 233,000 TOTAL REVENUES 34,419,718 6,959,818 41,379,536 EXPENDITURES Current Public safety Personnel services 26,454,059 3,682,714 30,136,773 Operating expenditures 5,081,454 734,365 5,815,819 Capital outlay 939,215 130,750 1,069,965 Debt service: Principal reduction 444,557 61,888 506,445 Interest and fiscal charges 86,345 12,020 98,365 Reserves - - - TOTAL EXPENDITURES 33,005,630 4,621,737 37,627,367 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 1,414,088 2,338,081 3,752,169 OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 207,812 - 207,812 Proceeds from disposition of capital assets 68,150 - 68,150 Other financial assistance-CARES Act 1,000,000 - 1,000,000 Transfer in - - - Transfer out - - - TOTAL OTHER FINANCING SOURCES AND(USES) 1,275,962 - 1,275,962 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES 2,690,050 2,338,081 5,028,131 FUND BALANCE-Beginning 14,243,357 565,991 14,809,348 FUND BALANCE-Ending $ 16,933,407 $ 2,904,072 $ 19,837,479 The accompanying notes are an integral part of this statement. 1 6 I 1 A 4 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 83 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL- GENERAL FUND- SUMMARY STATEMENT-NN Year Ended September 30, 2020 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 32,319,165 $ 32,319,165 $ 32,932,850 $ 613,685 Intergovernmental revenue: State firefighter supplement 63,202 63,202 74,700 11,498 Federal grants 54,720 203,946 419,464 215,518 Other Intergovernmental 28,441 28,441 20,160 (8,281) Charges for services 564,601 564,601 502,318 (62,283) Miscellaneous: Interest 267,553 267,553 257,962 (9,591) Other 277,676 277,677 212,264 (65,413) Subtotal-revenues 33,575,358 33,724,585 34,419,718 695,133 Cash brought forward 12,226,382 14,243,357 - (14,243,357) TOTAL REVENUES 45,801,740 47,967,942 34,419,718 (13,548,224) EXPENDITURES Current Public safety Personnel services 27,809,619 27,809,619 26,454,059 1,355,560 Operating expenditures 5,348,909 5,348,909 5,081,454 267,455 Capital outlay 2,536,819 1,322,822 939,215 383,607 Debt service: Principal reduction 416,646 416,646 444,557 (27,911) Interest and fiscal charges 79,861 79,861 86,345 (6,484) Reserves 10,563,177 13,177,769 - 13,177,769 TOTAL EXPENDITURES 46,755,031 48,155,626 33,005,630 15,149,996 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (953,291) (187,684) 1,414,088 1,601,772 OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 948,024 182,417 207,812 25,395 Proceeds from disposition of capital assets 5,267 5,267 68,150 62,883 Other financial assistance-CARES Act - - 1,000,000 1,000,000 Transfer in - - - - Transfer out - - - - TOTAL OTHER FINANCING SOURCES AND(USES) 953,291 187,684 1,275,962 1,088,278 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $_ - $ - 2,690,050 $ 2,690,050 FUND BALANCE-Beginning 14,243,357 FUND BALANCE-Ending $ 16,933,407 The accompanying notes are an integral part of this statement. 1 6 I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 84 of 113 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND -DETAILED STATEMENT-NN Year Ended September 30, 2020 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 32,319,165 $ 32,319,165 $ 32,932,850 $ 613,685 Intergovernmental revenue: State firefighter supplement 63,202 63,202 74,700 11,498 Federal grants 54,720 203,946 419,464 215,518 Other Intergovernmental 28,441 28,441 20,160 (8,281) Charges for services 564,601 564,601 502,318 (62,283) Miscellaneous: Interest 267,553 267,553 257,962 (9,591) Other 277,676 277,677 212,264 (65,413) Subtotal-revenues 33,575,358 33,724,585 34,419,718 695,133 Cash brought forward 12,226,382 14,243,357 - (14,243,357) TOTAL REVENUES 45,801,740 47,967,942 34,419,718 (13,548,224) EXPENDITURES Current Public safety Personnel services: Salaries Firefighters&Admin. 15,928,540 15,928,540 15,687,651 240,889 Commissioners 26,334 26,334 26,334 - Overtime 647,563 647,563 544,378 103,185 Vacation pay 158,004 158,004 89,107 68,897 Sick leave 680,594 680,594 688,833 (8,239) Professional/Incentives and holiday pay 738,577 738,577 748,852 (10,275) Payroll taxes Social Security 1,391,890 1,391,890 1,325,368 66,522 Benefits Retirement 2,699,102 2,699,102 2,402,758 296,344 Health insurance(including HSA) 4,565,958 4,353,969 3,718,553 635,416 Disability insurance 87,654 87,654 57,538 30,116 Unemployment - - - - Workers compensation 653,327 653,327 696,981 (43,654) Medical clinic/employee physicals 220,665 220,665 191,638 29,027 Post employment health plan(PEHP) 8,778 220,767 271,240 (50,473) Retirement recognition 2,633 2,633 4,828 (2,195) Subtotal-Personnel services 27,809,619 27,809,619 26,454,059 1,355,560 The accompanying notes are an integral part of this statement. 16I 1At! NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 85 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND -DETAILED STATEMENT-NN (CONTINUED) Year Ended September 30, 2020 General Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Insurance 429,030 429,030 414,909 14,121 Uniforms 123,436 123,436 101,039 22,397 Communications 28,090 28,090 37,530 (9,440) Telephone 362,531 362,531 306,380 56,151 Utilities 242,273 242,273 244,249 (1,976) Maintenance Vehicle 410,235 410,235 360,833 49,402 Equipment 67,592 67,592 1,539 66,053 Computer 549,236 549,236 478,301 70,935 Hydrant 42,134 42,134 38,487 3,647 Building 386,960 386,960 365,188 21,772 Supplies Office 57,935 57,935 65,050 (7,115) Protective gear 96,014 96,014 208,779 (112,765) Station 52,861 52,861 84,959 (32,098) Emergency medical 190,000 190,000 280,799 (90,799) Enterprise Lease/Rental 110,542 110,542 80,964 29,578 Hurricane/emergency - - - - Equipment Office 22,823 22,823 17,661 5,162 Fire 125,756 125,756 168,544 (42,788) Shop 24,008 24,008 20,899 3,109 Warehouse/logistics 4,389 4,389 4,920 (531) Professional and other fees Legal and professional 389,831 389,831 295,170 94,661 Property appraiser fees 229,164 229,164 268,330 (39,166) Tax collector fees 690,373 690,373 654,134 36,239 Accounting 70,224 70,224 56,004 14,220 Miscellaneous Travel 72,419 72,419 21,054 51,365 Water/sewer fee St.44 8,778 8,778 - 8,778 Public information officer 1,492 1,492 8,651 (7,159) Fuel and oil 257,634 257,634 166,319 91,315 Legal advertisements 8,427 8,427 10,553 (2,126) Dues and subscriptions 28,485 28,485 8,245 20,240 CERT team 5,267 5,267 5,354 (87) Dive team 5,355 5,355 3,057 2,298 Fire prevention - - 4,131 (4,131) Training 217,519 217,519 119,582 97,937 Hazardous materials 12,070 12,070 6,008 6,062 Technical rescue 10,226 10,226 25,438 (15,212) Boat team 4,213 4,213 3,597 616 K-9 search and rescue - - - - Honor guard - - - - OPS - - - - Peer fitness - - _ - Bad Debt Expense - - 120,000 (120,000) Miscellaneous 11,587 11,587 24,797 (13,210) Operational Reserves Contingency - - - - Subtotal-Operating expenditures 5,348,909 5,348,909 5,081,454 267,455 The accompanying notes are an integral part of this statement. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 86 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND-DETAILED STATEMENT-NN(CONTINUED) Year Ended September 30, 2020 General Fund Variance Original Final Favorable Capital outlay: Budget Budget Actual (Unfavorable) - Land - Station improvements 782,647 343,747 424,350 (80,603) Fire&rescue equipment 126,710 126,710 76,665 50,045 Protective gear 151,530 151,530 - 151,530 Medical equipment 1,024,832 76,808 33,849 42,959 Station equipment - - 14,126 (14,126) Communication equipment 27,826 27,826 47,953 (20,127) Office equipment Computers 87,780 87,780 96,697 (8,917) TRT 3,072 3,072 14,485 (11,413) Vehicle purchase 11,411 184,338 213,133 (28,795) Shop equipment 29,406 29,406 5,994 23,412 Hazardous materials equipment 2,633 2,633 6,861 (4,228) Fire apparatus 285,285 285,285 - 285,285 Dive equipment 3,687 3,687 5,102 (1,415) Subtotal-Capital outlay 2,536,819 1,322,822 939,215 383,607 Debt service: Principal reduction 416,646 416,646 444,557 (27,911) Interest and fiscal charges 79,861 79,861 86,345 (6,484) Subtotal-Debt service 496,507 496,507 530,902 (34,395) Reserves: Reserves 10,563,177 13,177,769 - 13,177,769 TOTAL EXPENDITURES 46,755,031 48,155,626 33,005,630 15,149,996 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (953,291) (187,684) 1,414,088 1,601,772 OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 948,024 182,417 207,812 25,395 Proceeds from disposition of capital assets 5,267 5,267 68,150 62,883 Other financial assistance-CARES Act - - 1,000,000 1,000,000 Transfers in - - - - Transfers out TOTAL OTHER FINANCING SOURCES AND(USES) 953,291 187,684 1,275,962 1,088,278 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES $ - $ - 2,690,050 $ 2,690,050 FUND BALANCE-Beginning 14,243,357 FUND BALANCE-Ending $ 16,933,407 The accompanying notes are an integral part of this statement. 1 6 I 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 87 of 113 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND- SUMMARY STATEMENT-BCI Year Ended September 30, 2020 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 6,704,907 $ 6,704,907 $ 6,841,453 $ 136,546 Intergovernmental revenue: State firefighter supplement 8,798 8,798 - (8,798) Federal grants 7,618 28,392 - (28,392) Other intergovernmental 3,959 3,959 - (3,959) Charges for services 78,599 78,599 1,801 (76,798) Miscellaneous: Interest 37,247 37,247 95,828 58,581 Other 38,656 38,657 20,736 (17,921) Subtotal-revenues 6,879,784 6,900,559 6,959,818 59,259 Cash brought forward 1,856,207 565,991 - (565,991) TOTAL REVENUES 8,735,991 7,466,550 6,959,818 (506,732) EXPENDITURES Current Public safety Personnel services 3,871,421 3,871,421 3,682,714 188,707 Operating expenditures 744,633 744,633 734,365 10,268 Capital outlay 353,157 184,154 130,750 53,404 Debt service: Principal reduction 58,002 58,002 61,888 (3,886) Interest and fiscal charges 11,118 11,118 12,020 (902) Reserves 3,830,369 2,623,350 - 2,623,350 TOTAL EXPENDITURES 8,868,700 7,492,678 4,621,737 2,870,941 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (132,709) (26,128) 2,338,081 2,364,209 OTHER FINANCING SOURCES AND USES Proceeds from capital lease 131,976 25,395 - (25,395) Proceeds from disposition of capital assets 733 733 - (733) Transfer in/(out) - - - - TOTAL OTHER FINANCING SOURCES AND USES 132,709 26,128 - (26,128) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - 2,338,081 $ 2,338,081 FUND BALANCE-Beginning 565,991 FUND BALANCE-Ending $ 2,904,072 The accompanying notes are an integral part of this statement. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 88 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL- GENERAL FUND -DETAILED STATEMENT-BCI Year Ended September 30, 2020 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 6,704,907 $ 6,704,907 $ 6,841,453 $ 136,546 Intergovernmental revenue: State firefighter supplement 8,798 8,798 - (8,798) Federal grants 7,618 28,392 - (28,392) Other intergovernmental 3,959 3,959 - (3,959) Charges for services 78,599 78,599 1,801 (76,798) Miscellaneous: Interest 37,247 37,247 95,828 58,581 Other 38,656 38,657 20,736 (17,921) Subtotal-revenues 6,879,784 6,900,559 6,959,818 59,259 Cash brought forward 1,856,207 565,991 - (565,991) TOTAL REVENUES 8,735,991 7,466,550 6,959,818 (506,732) EXPENDITURES Current Public safety Personnel services: Salaries Firefighters&Admin. 2,217,438 2,217,438 2,183,904 33,534 Salaries-harmonization - - Commissioners 3,666 3,666 3,666 - Overtime 90,147 90,147 75,784 14,363 Vacation pay 21,996 21,996 12,405 9,591 Sick leave 94,747 94,747 95,894 (1,147) Incentives and holiday pay 102,819 102,819 104,248 (1,429) Payroll taxes Social Security 193,767 193,767 184,507 9,260 Benefits Retirement 375,746 375,746 334,492 41,254 Health insurance 635,634 606,123 517,666 88,457 Disability insurance 12,202 12,202 8,010 4,192 Benefits harmonization _ - - Unemployment - - - - Workers compensation 90,951 90,951 97,028 (6,077) Medical clinic/employee physicals 30,719 30,719 26,678 4,041 Post employment health plan(PEHP) 1,222 30,733 37,760 (7,027) Retirement recognition 367 367 672 (305) Subtotal-Personnel services 3,871,421 3,871,421 3,682,714 188,707 The accompanying notes are an integral part of this statement. 16J144 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 89 of 113 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL- GENERAL FUND -DETAILED STATEMENT-BCI (CONTINUED) Year Ended September 30, 2020 General Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Insurance 59,726 59,726 57,760 1,966 Uniforms 17,184 17,184 14,066 3,118 Communications 3,910 3,910 5,225 (1,315) Telephone 50,469 50,469 42,652 7,817 Utilities 33,727 33,727 34,002 (275) Maintenance Vehicle 57,110 57,110 50,232 Equipment 6,878 9,410 9,410 214 9,196 Computer 76,460 76,460 66,585 9,875 Hydrant 5,866 5,866 5,358 508 Building 53,871 53,871 50,839 3,032 Supplies Office 8,065 8,065 9,056 (991) Protective gear 13,366 13,366 29,064 (15,698) Station 7,359 7,359 11,828 (4,469) Emergency medical 26,450 26,450 39,091 (12,641) Enterprise Lease/Rental 15,389 15,389 11,271 4,118 - Hurricane/emergency - - - Equipment Office 3,177 3,177 2,459 718 Fire 17,507 17,507 23,463 (5,956) Shop 3,342 3,342 2,909 433 Warehouse/logistics 611 611 685 (74) Professional and other fees Legal and professional 54,269 54,269 41,091 13,178 Property appraiser fees 31,902 31,902 37,355 (5,453) Tax collector fees 96,108 96,108 134,552 (38,444) Accounting 9,776 9,776 7,796 1,980 Miscellaneous Travel 10,082 10,082 2,931 7,151 Water/sewer fee St.44 1,222 1,222 1,222 - Public information officer 208 208 1,204 (996) Public education officer - - Fuel and oil 35,866 35,866 23,153 12,713 Legal advertisements 1,173 1,173 1,469 (296) Dues and subscriptions 3,965 3,965 1,148 2,817 CERT team 733 733 745 (12) Dive team 745 745 426 319 Fire prevention - - 575 (575) Training 30,281 30,281 16,647 13,634 Hazardous materials 1,680 1,680 836 844 Technical rescue 1,424 1,424 3,541 (2,117) Boat team 587 587 501 86 K-9 search and rescue - - - - Miscellaneous 1,613 1,613 3,636 (2,023) Operational Reserves - Contingency - Subtotal-Operating expenditures 744,633 744,633 734,365 10,268 The accompanying notes are an integral part of this statement. 1 6I 1 A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 90 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL- GENERAL FUND -DETAILED STATEMENT-BCI (CONTINUED) Year Ended September 30,2020 General Fund Variance Original Final Favorable Capital outlay: Budget Budget Actual (Unfavorable) - - Land - - Station improvements 108,954 47,854 59,075 (11,221) Fire&rescue equipment 17,639 17,639 10,673 6,966 Protective gear 21,095 21,095 - 21,095 Medical equipment 142,669 10,693 4,712 5,981 Station equipment 1,966 (1,966) Communication equipment 3,874 3,874 6,676 (2,802) Computers 12,220 12,220 13,461 (1,241) TRT 428 428 2,017 (1,589) Hazardous material equipment 367 367 955 (588) Vehicle purchase 1,589 25,662 29,671 (4,009) Fire apparatus 39,715 39,715 - 39,715 Shop equipment 4,094 4,094 834 3,260 Dive equipment 513 513 710 (197) Subtotal-Capital outlay 353,157 184,154 130,750 53,404 Debt service: Principal reduction 58,002 58,002 61,888 (3,886) Interest and fiscal charges 11,118 11,118 12,020 (902) Subtotal-Debt service 69,120 69,120 73,908 (4,788) Reserves: Reserves 3,830,369 2,623,350 - 2,623,350 TOTAL EXPENDITURES 8,868,700 7,492,678 4,621,737 2,870,941 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (132,709) (26,128) 2,338,081 2,364,209 OTHER FINANCING SOURCES AND USES Proceeds from capital lease 131,976 25,395 - (25,395) Proceeds from disposition of capital assets 733 733 - (733) - Transfer in/(out) - TOTAL OTHER FINANCING SOURCES AND USES 132,709 26,128 - (26,128) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES $ - $ - 2,338,081 $ 2,338,081 FUND BALANCE-Beginning 565,991 FUND BALANCE-Ending $ 2,904,072 The accompanying notes are an integral part of this statement. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 91 of 113 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -COMBINED SERVICE DELIVERY AREAS- BUDGET AND ACTUAL-IMPACT FEE FUND -SUMMARY STATEMENT Year Ended September 30,2020 Impact Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Fees: Impact fees $ 500,000 $ 706,500 $ 83,973 $ (622,527) Miscellaneous: Interest 24,000 12,500 12,668 168 Transfer from General Fund - - - Other Subtotal-revenues 524,000 719,000 96,641 (622,359) Cash brought forward 502,012 745,734 - (745,734) TOTAL REVENUES 1,026,012 1,464,734 96,641 (1,368,093) EXPENDITURES Current Public safety Operating expenditures 7,922 31,122 29,668 1,454 Capital outlay _ - - - Debt service: Principal 57,500 57,500 57,500 - Interest and fiscal charges 8,625 9,473 9,473 - Reserves 951,965 1,366,639 - 1,366,639 TOTAL EXPENDITURES 1,026,012 1,464,734 96,641 1,368,093 EXCESS OF REVENUES - OVER(UNDER)EXPENDITURES - - OTHER FINANCING SOURCES AND(USES) - Transfers in(out) - - - TOTAL OTHER FINANCING SOURCES AND(USES) - - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ - FUND BALANCE-Beginning FUND BALANCE-Ending $ - The accompanying notes are an integral part of this statement. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 92 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -COMBINED SERVICE DELIVERY AREAS- BUDGET AND ACTUAL-IMPACT FEE FUND -DETAILED STATEMENT Year Ended September 30, 2020 Impact Fee Fund Variance Original Final Favorable REVENUES Budget Budget Actual (Unfavorable) Fees: Impact fees $ 500,000 $ 706,500 $ 83,973 $ (622,527) Miscellaneous: Interest 24,000 12,500 12,668 168 Transfer from General Fund - - - _ - Other Subtotal-revenues 524,000 719,000 96,641 (622,359) Cash brought forward 502,012 745,734 - (745,734) TOTAL REVENUES 1,026,012 1,464,734 96,641 (1,368,093) EXPENDITURES Operating expenditures: Impact fee collection 7,922 16,122 14,939 1,183 Professional fees - 15,000 14,729 271 Subtotal-Operating expenditures 7,922 31,122 29,668 1,454 Capital outlay: - - Preplanning - - Construction in progress - _ _ - - Emergency signal-station#42 - - - Temporary station lease - Subtotal-Capital outlay - - - - Debt service: Principal 57,500 57,500 57,500 - Interest and fiscal charges 8,625 9,473 9,473 - Subtotal-Debt service 66,125 66,973 66,973 - Reserves: 951,965 1,366,639 - 1,366,639 TOTAL EXPENDITURES 1,026,012 1,464,734 96,641 1,368,093 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES - - OTHER FINANCING SOURCES AND(USES) - - Transfers in(out) - TOTAL OTHER FINANCING SOURCES AND(USES) - - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ - FUND BALANCE-Beginning - FUND BALANCE-Ending $ - The accompanying notes are an integral part of this statement. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 93 of 113 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -COMBINED SERVICE DELIVERY AREA- INSPECTION FEE FUND-SUMMARY STATEMENT Year Ended September 30,2020 Inspection Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Charges for services Inspection fees $ 880,000 $ 880,000 $ 926,533 $ 46,533 Plan review fees 1,150,000 1,150,000 876,423 (273,577) Miscellaneous: Interest 20,000 4,500 5,914 1,414 Other - 1,000 516 (484) Subtotal-revenues 2,050,000 2,035,500 1,809,386 (226,114) Cash brought forward 124,206 165,842 - (165,842) TOTAL REVENUES 2,174,206 2,201,342 1,809,386 (391,956) EXPENDITURES Current Public safety Personnel services 1,892,818 1,892,818 1,697,963 194,855 Operating expenditures 144,500 144,500 112,445 32,055 Capital outlay - - - - Reserves 136,888 164,024 - 164,024 TOTAL EXPENDITURES 2,174,206 2,201,342 1,810,408 390,934 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES $ - $ - (1,022) $ (1,022) FUND BALANCE-Beginning 165,842 FUND BALANCE-Ending $ 164,820 The accompanying notes are an integral part of this statement. 1b11A4 • NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 94 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -COMBINED SERVICE DELVERY AREA-INSPECTION FEE FUND -DETAILED STATEMENT Year Ended September 30,2020 Inspection Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Charges for services: Inspection fees $ 880,000 $ 880,000 $ 926,533 $ 46,533 Plan review fees 1,150,000 1,150,000 876,423 (273,577) Miscellaneous: Interest 20,000 4,500 5,914 1,414 Other - 1,000 516 (484) Subtotal-revenues 2,050,000 2,035,500 1,809,386 (226,114) Cash brought forward 124,206 165,842 - (165,842) TOTAL REVENUES 2,174,206 2,201,342 1,809,386 (391,956) EXPENDITURES Current Public safety Personnel services: Salaries Regular 1,151,485 1,151,485 1,096,709 54,776 Overtime 45,000 45,000 46,886 (1,886) Sick leave 54,108 54,108 35,998 18,110 Vacation pay - - - - Professional/Incentives and holiday pay 9,600 9,600 8,350 1,250 Payroll taxes Social Security 92,993 92,993 90,878 2,115 Benefits Retirement 143,674 143,674 145,642 (1,968) Post employment health plan(PEHP) - 26,500 - 26,500 Health insurance 324,686 313,705 222,609 91,096 Disability insurance 6,689 6,689 - 6,689 Medical clinic/employee physicals 15,519 - - - Unemployment compensation - - - - Workers compensation 49,064 49,064 50,891 (1,827) Subtotal-Personnel services 1,892,818 1,892,818 1,697,963 194,855 The accompanying notes are an integral part of this statement. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 95 of 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - COMBINED SERVICE DELVERY AREA- INSPECTION FEE FUND-DETAILED STATEMENT (CONTINUED) Year Ended September 30, 2020 Inspection Fee Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Uniforms 1,000 1,000 2,606 (1,606) Telephone 1,000 1,000 - 1,000 Utilities 2,500 2,500 - 2,500 Rent 50,000 50,000 50,000 - Maintenance Computer software&supplies 50,000 50,000 43,541 6,459 Hydrant - - - - Supplies Office 2,000 2,000 263 1,737 Miscellaneous Dues&subscriptions 6,000 6,000 4,477 1,523 Fire prevention 4,000 4,000 2,712 1,288 Training 20,000 20,000 6,845 13,155 Travel 8,000 8,000 2,001 5,999 Subtotal-Operating expenditures 144,500 144,500 112,445 32,055 Capital outlay: Office facility - - - - Vehicles - - - - Subtotal-Capital outlay - - - - Debt service: Principal reduction - Interest and fiscal charges - - - - Subtotal-Debt service - - - - Reserves: 136,888 164,024 - 164,024 TOTAL EXPENDITURES 2,174,206 2,201,342 1,810,408 390,934 EXCESS OF REVENUES OVER(UNDER) EXPENDITURES $ - $ - (1,022) $ (1,022) FUND BALANCE-Beginning 165,842 FUND BALANCE-Ending $ 164,820 The accompanying notes are an integral part of this statement. 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2020 Federal CFDA/ Grantor's Grantor Agency/Program Title Number Number FEDERAL AGENCY U.S.Department of Treasury TYPE A-MAJOR Passed through Collier County Board of County Commissioners Coronavirus Relief Fund-CARES Act 21.019 FAIN#Y2265 U.S.Department of Homeland Security TYPE B-NON MAJOR Passed through the Florida Department of Financial Services from Federal Emergency Management Agency(FEMA) Disaster Grant-Public Assistance-Hurricane Michael 97.036 DR4399 Disaster Grant-Public Assistance-Hurricane Dorian 97.036 EM3419 Disaster Grant-Public Assistance-Hurricane Irma 97.036 DR4337/Z0400 Passed through State of Florida Division of Emergency Management Hazard Mitigation Grant Program 97.039 19-HM-4377-1 1 BF/H014S Federal Emergency Management Agency(FEMA) Assistance to Firefighters Grant(AFG)- COVID-19 Supplemental Grant 97.044 EMW-2020-FG-01554 Staffing of Adequate Fire and Emergency Response SAFER-Assistance to Firefighters Grants 97.083 EMW-2015-FF-00426 Total TOTAL FEDERAL FINANCIAL AWARDS (1)Recorded as due from other governments at 9/30/2020. 1 6 I 1 A 4 Page 96 of 113 Program or Award Receipts/ Disbursements/ Pass through Amount Revenue Expenditures to Subrecipients $ 1,000,000 $ 1,000,000 (1) $ 1,000,000 $ - 208,394 208,394 208,394 - 23,512 23,512 23,512 - 902,850 2,625 2,625 - 1,134,756 234,531 234,531 - 75,396 75,396 (1) 75,396 - 85,818 85,818 (1) 85,818 - 527,473 23,719 23,719 - 1,823,443 419,464 419,464 - $ 2,823,443 $ 1,419,464 $ 1,419,464 $ - l6J1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 97 of 113 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2020 NOTE A- BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America and is in accordance with the provisions of the OMB Uniform Guidance. Expenditures reported on the Schedule of Expenditures of Federal Awards include cash disbursements, whether capitalized or expensed, during the fiscal year as well as grant related amounts recorded as payable at year end. Revenues reported on the Schedule of Expenditures of Federal Awards include cash receipts,whether recognized or deferred, as well as grant receivables recorded at year end. NOTE B - INDIRECT COSTS The District did not routinely allocate indirect costs to Federal Awards. Costs charged to such programs were direct costs. The District has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. 1 6 I 1 A 4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM(FRS) PENSION PLAN(1) Fiscal year ending September 30: 2020 2019 2018 2017 District's proportion of the net pension liability 0.021696122% 0.027233351% 0.031414516% 0.038802719% District's proportionate share of the net pension liability $ 9,403,419 $ 9,378,787 $ 9,462,215 $ 11,477,584 District's covered-employee payroll $ 4,887,399 $ 5,436,629 $ 5,753,921 $ 6,933,311 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 192.40% 172.51% 164.45% 165.54% Plan fiduciary net position as a percentage of the total pension liability 78.85% 82.61% 84.26% 83.89% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. SCHEDULE OF DISTRICT CONTRIBUTIONS- FLORIDA RETIREMENT SYSTEM (FRS)PENSION PLAN(1) 2020 2019 2018 2017 Contractually required contribution $ 775,095 $ 887,696 $ 912,380 $ 1,119,238 Contributions in relation to the contractually required contribution 775,095 887,696 912,380 1,119,238 Contribution deficiency(excess) $ - $ - $ - $ - District's covered-employee payroll $ 4,887,399 $ 5,436,629 $ 5,753,921 $ 6,933,311 Contributions as a percentage of covered-employee payroll 15.86% 16.33% 15.86% 16.14% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. GASB 68 requires information for 10 years. However,until a full 10-year trend is compiled, governments should present information for only those years for which information is available. Note: Measurement date was June 30 within the respective fiscal year. 1 6 I 1 A Page 98 of 113 2016 2015 2014 0.040983896% 0.038209683% 0.041592399% $ 10,348,466 $ 4,935,293 $ 2,537,748 $ 6,745,995 $ 6,326,722 $ 6,293,887 153.40% 78.01% 40.32% 84.88% 92.00% 96.09% 2016 2015 2014 $ 1,099,170 $ 967,270 $ 971,792 1,099,170 967,270 971,792 $ - $ - $ $ 6,745,995 $ 6,326,722 $ 6,293,887 16.29% 15.29% 15.44% 161 1Ak NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -HEALTH INSURANCE SUBSIDY(HIS) PENSION PLAN (1) Fiscal year ending September 30: 2020 2019 2018 2017 District's proportion of the net pension liability 0.014221549% 0.016634678% 0.019013168% 0.021233558% District's proportionate share of the net pension liability $ 1,736,428 $ 1,861,254 $ 2,012,375 $ 2,270,390 District's covered-employee payroll $ 4,887,399 $ 5,436,629 $ 5,753,921 $ 6,933,311 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 35.53% 34.24% 34.97% 32.75% Plan fiduciary net position as a percentage of the total pension liability 3.00% 2.63% 2.15% 1.64% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. SCHEDULE OF DISTRICT CONTRIBUTIONS - HEALTH INSURANCE SUBSIDY(HIS) PENSION PLAN (1) 2020 2019 2018 2017 Contractually required contribution $ 58,340 $ 66,816 $ 68,674 $ 84,244 Contributions in relation to the contractually required contribution 58,340 66,816 68,674 84,244 Contribution deficiency(excess) $ - $ - $ - $ - District's covered-employee payroll $ 4,887,399 $ 5,436,629 $ 5,753,921 $ 6,933,311 Contributions as a percentage of covered-employee payroll 1.19% 1.23% 1.19% 1.22% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. GASB 68 requires information for 10 years. However,until a full 10-year trend is compiled, governments should present information for only those years for which information is available. Note: Measurement date was June 30 within the respective fiscal year. 1 6 I 1A4 Page 99 of 113 2016 2015 2014 0.021530658% 0.02 1 13 8780% 0.021145042% $ 2,509,309 $ 2,155,823 $ 1,977,113 $ 6,745,995 $ 6,326,722 $ 6,293,887 37.20% 34.07% 31.41% 0.97% 0.50% 0.99% 2016 2015 2014 $ 87,198 $ 78,787 $ 65,973 87,198 78,787 65,973 $ - $ - $ $ 6,745,995 $ 6,326,722 $ 6,293,887 1.29% 1.25% 1.05% 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 100 of 113 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION-FRS/HIS September 30, 2020 Changes of Assumptions Actuarial assumptions for both cost-sharing defined benefit plans are reviewed annually by the Florida Retirement System Actuarial Assumptions Conference. The FRS Pension Plan has a valuation performed annually. The HIS Program has a valuation performed biennially that is updated for GASB reporting in the year a valuation is not performed. The most recent experience study for the FRS Pension Plan was completed in 2019 for the period July 1, 2013 through June 30, 2018. Because the HIS Program is funded on a pay-as-you-go basis,no experience study has been completed for that program. The actuarial assumptions that determined the total pension liability for the HIS Program were based on certain results of the most recent experience study for the FRS Pension Plan. The total pension liability for each cost-sharing defined benefit plan was determined using the individual entry age actuarial cost method. Inflation increases for both plans is assumed at 2.40%. Payroll growth, including inflation, for both plans is assumed at 3.25%. Both the discount rate and the long-term expected rate of return used for FRS Pension Plan investments was reduced from 6.90% to 6.80%. The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond rate was decreased from 3.50%to 2.21% and was used to determine the total pension liability for the program (Bond Buyer General Obligation 20-Bond Municipal Bond Index). Mortality assumptions for both plans were based on the Generational PUB-2010 with Projection Scale MP-2018. Florida Retirement System Pension Plan There were changes in actuarial assumptions. As of June 30, 2020, the inflation rate assumption decreased to 2.40 percent from 2.60,the real payroll growth assumption was increased to .85 percent from .65, and the overall payroll growth rate assumption remained at 3.25 percent. The long-term expected rate of return was reduced from 6.90 percent to 6.80 percent. Health Insurance Subsidy Pension Plan The municipal rate used to determine total pension liability decreased from 3.50 percent to 2.21 percent. 161lA � NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 101 of 113 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION-FRS/HIS September 30, 2020 Pension Expense and Deferred Outflows/Inflows of Resources In accordance with GASB 68,paragraphs 54 and 71, changes in the net pension liability are recognized in pension expense in the current measurement period, except as indicated below. For each of the following, a portion is recognized in pension expense in the current reporting period, and the balance is amortized as deferred outflows or deferred inflows of resources using a systematic and rational method over a closed period, as defined below: • Differences between expected and actual experience with regard to economic and demographic factors -amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan(active and inactive employees) • Changes of assumptions or other inputs- amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan(active and inactive employees) • Changes in proportion and differences between contributions and proportionate share of contributions - amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan(active and inactive employees) • Differences between expected and actual earnings on pension plan investments -amortized over five years Employer contributions to the pension plans from employers are not included in collective pension expense. However, employee contributions are used to reduce pension expense. The average expected remaining service life of all employees provided with pensions through the pension plans at June 30, 2020 was reduced from 6.4 to 5.9 years for FRS and remained at 7.2 years for HIS. 161 1A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 102 of 113 SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS GASB 75 Changes in Employer's Net OPEB Liability and Related Ratios as of September 30: Net OPEB Liability 2020 2019 2018 Service Cost $ 557,861 $ 684,930 $ 723,937 Interest Cost on Total OPEB Liability 385,797 387,918 326,072 Changes in Benefit Terms - - - Differences Between Expected and Actual Experience - 417,788 - Changes in Assumptions 591,573 (2,363,827) (620,125) Benefit Payments (449,043) (406,464) (373,760) Net Change in net OPEB Liability 1,086,188 (1,279,655) 56,124 Net OPEB Liability-Beginning of Year 8,893,953 10,173,608 10,117,484 Net OPEB Liability-End of Year $ 9,980,141 $ 8,893,953 $ 10,173,608 Measurement Date 9/30/2019 9/30/2018 9/30/2017 NOTE: Information for FY 2017 and earlier is not available. Plan Fiduciary Net Position as of September 30: 2020 2019 2018 Contributions-Employer(including PEHP) $ 449,043 $ 406,464 $ 373,760 Net Investment Income - - - Benefit Payments (449,043) (406,464) (373,760) Administrative Expense - - - Net Change in Fiduciary Net Position - - - Fiduciary Net Position-Beginning of Year - - - Fiduciary Net Position-End of Year $ - $ - $ - Net OPEB Liability 9,980,141 8,893,953 10,173,608 Fiduciary Net Position as a%of Net OPEB Liability 0.00% 0.00% 0.00% Covered-Employee Payroll* Net OPEB Liability as a%of Payroll* *Because this OPEB plan does not depend of salary,no information is provided. NOTE: Information for FY 2017 and earlier is not available. Notes to the Schedule: Benefit Changes None Changes of Assumptions The discount rate was changed as follows: 9/30/18 3.64% 9/30/19 4.18% 9/30/20 3.58% Population covered by Plan:278 Plan has no specific trust established.$0 assigned for OPEB. 1611A ADDITIONAL REPORTS 1 6 I 1 A 4 TuscAN Affiliations & Florida Institute of Certified Public Accountants on psanv PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 103 of 113 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 We have audited, 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 of America, the basic financial statements of the governmental activities and each major and non-major fund of North Collier Fire Control and Rescue District(the "District") as of and for the year ended September 30, 2020, and the related notes to the financial statements which collectively comprise the District's basic financial statements as listed in the table of contents and have issued our report thereon dated May 7, 2021. 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion 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 combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the basic financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090 • Fax: (239)333-2097 1 6 1 1 A 4 Page 104 of 113 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, as defined previously. However,material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether North Collier Fire Control and Rescue District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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 that are required to be reported under Government Auditing Standards. 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 District'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 District's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. TUSCAN& COMPANY,P.A. Fort Myers, Florida May 7,2021 1 6 I 1 A 4 TU S CAN Affiliations & Florida Institute of Certified Public Accountants Company, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Page 105Toptvi T Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 Report on Compliance for Each Major Federal Program We have audited North Collier Fire Control and Rescue District's compliance with the types of compliance requirements described in the OMB Compliance Supplement Supplement, as applicable, that could have a direct and material effect on each of North Collier Fire Control and Rescue District's major federal programs for the year ended September 30, 2020. North Collier Fire Control and Rescue District's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its major federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of North Collier Fire Control and Rescue District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance 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 of America; and audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" ("Uniform Guidance"). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about North Collier Fire Control and Rescue District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. INTEGRITV SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090• Fax: (239)333-2097 1611A4 Page 106 of 113 We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of North Collier Fire Control and Rescue District's compliance with those requirements. Opinion on Each Major Federal Program In our opinion,North Collier Fire Control and Rescue District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2020. Report on Internal Control Over Compliance Management of North Collier Fire Control and Rescue District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered North Collier Fire Control and Rescue District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance,but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of North Collier Fire Control and Rescue District's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance,yet important enough to merit attention by those charged with governance. 1 bI A Page 107 of 113 Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies,material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of the Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,this report is not suitable for any other purpose. -74"1//U 444 P 6 � TUSCAN&COMPANY, P.A. Fort Myers,Florida May 7, 2021 1 6 I lAi1 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 108 of 113 SCHEDULE OF FINDINGS AND QUESTIONED COSTS-FEDERAL AWARDS Year ended September 30, 2020 Section I—Summary of Auditor's Results Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting: Control deficiency(ies) identified? Yes X No Significant deficiency(ies) identified? Yes X No Material weakness(es) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Control deficiency(ies) identified? Yes X No Significant deficiency(ies) identified? Yes X No Material weakness(es) identified? Yes X None reported Type of auditors report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR, Section 200.5 16(a)? Yes X No Identification of major programs (Type A): CFDA Number(s) Name of Federal Program or Cluster U.S. Department Treasury 21.019 Coronavirus Relief Fund Dollar threshold used to distinguish between Type A and Type B programs Threshold used was $750,000. Auditee qualified as low-risk auditee? Yes X No 1611A4 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 109 of 113 SCHEDULE OF FINDINGS AND QUESTIONED COSTS-FEDERAL AWARDS Year ended September 30, 2020 Listing of Subrecipients and matching amounts passed-through: None -not applicable Section II-Financial Statement Findings There were no deficiencies, material weaknesses, or instances of noncompliance related to the financial statements. Section III-Federal Award Findings and Questioned Costs There were no audit findings related to Federal Awards required to be reported by 2 CFR, Section 200.516(a). Section IV-Status of Federal Prior Year Findings There were no prior year findings. I 11A , Pri' TUSCAN Affiliations Florida Institute of Certified Public Accountants Company, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 110 of 113 INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SECTION 218.415,FLORIDA STATUTES Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples,Florida 34109-0492 We have examined North Collier Fire Control and Rescue District's compliance with Section 218.415, Florida Statutes,regarding the investment of public funds during the year ended September 30, 2020. Management is responsible for North Collier Fire Control and Rescue District's compliance with those requirements. Our responsibility is to express an opinion on North Collier Fire Control and Rescue 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 North Collier Fire Control and Rescue 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 North Collier Fire Control and Rescue District's compliance with specified requirements. In our opinion,North Collier Fire Control and Rescue District complied, in all material respects, with the aforementioned requirements for the year ended September 30,2020. This report is intended solely for the information and use of the North Collier Fire Control and Rescue District and the Auditor General, State of Florida,and is not intended to be and should not be used by anyone other than these specified parties. /Akkit9/4 A • TUSCAN&COMPANY, P.A. Fort Myers,Florida May 7, 2021 INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 •Fort Myers, FL 33907 • Phone: (239)333-2090 • Fax: (239)333-2097 16J1A7r , T US(\(LiANAffiliations & Florida Institute of Certified Public Accountants ~®tllpaIl`'r PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 111 of 113 INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 We have audited the accompanying basic financial statements of North Collier Fire Control and Rescue District(the "District") as of and for the year ended September 30, 2020 and have issued our report thereon dated May 7, 2021. 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 of America and Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports, which are dated May 7, 2021, should be considered in conjunction with this report to management. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,which governs the conduct of local governmental entity audits performed in the State of Florida. This letter included the following information, which is not included in the aforementioned auditor's report: • Section 10.554(1)(i)1., Rules of the Auditor General,requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The prior year report contained no financially significant comments. • Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. No such recommendations were noted to improve financial management. INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090• Fax: (239)333-2097 61 1A4 Page 112 of 113 • Section 10.554(1)(i)3., Rules of the Auditor General,requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have an effect on the financial statements that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. • Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter,unless disclosed in the notes to the financial statements. The District discloses this information in the notes to the financial statements. • Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit,we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes. • Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, we have applied financial condition assessment procedures. It is management's responsibility to monitor the District's 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. In connection with our audit, we determined that the District did not meet any of the criteria of a deteriorating financial condition described in Auditor General Rule Section 10.554(1)(i)(6).c. • Pursuant to Section 10.554(1)(i)5b.2, Rules of the Auditor General, if a deteriorating financial condition(s) is noted then a statement is so required along with the conditions causing the auditor to make such a conclusion. No such conditions were noted. • Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General, requires a statement indicating a failure, if any, of a component unit Special District to provide financial information necessary to a proper reporting of the component unit within the audited financial statements of this District(F.S. Section 218.39(3)(b)). There are no known component special districts required to report within these financial statements. I6J1Ail Page 113 of 113 • Section 10.556(10)(a), Rules of the Auditor General,requires that the scope of our audit to determine the District's compliance with the provisions of Section 218.415, Florida Statutes,regarding the investment of public funds. In connection with our audit, we determined that the District complied with Section 218.415, Florida Statutes as reported in our Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes dated May 7, 2021, included herein. • Section 10.557(3)(m), Rules of the Auditor General,requires a notarized affidavit, related to impact fees, signed and sworn to by the Chief Financial officer be included in the audit report. Such affidavit is included as Exhibit 2. PRIOR YEAR COMMENTS: There were no financially significant prior year comments. CURRENT YEAR COMMENTS: There were no financially significant comments noted. Pursuant to Chapter 119, Florida Statutes,this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Board of Commissioners, management,the Auditor General of the State of Florida and other federal and state agencies. This report is not intended to be and should not be used by anyone other than these specified parties. 7vAii,0241l.) 4-vt,iin TUSCAN& COMPANY, P.A. Fort Myers, Florida May 7, 2021 1611A4 EXHIBIT 1 ,.„, ,,,,; ..,. ..„0„......,,,.. . . ,Iftr-itrl, „,,, 4 °v ,Nmm, 4' Y . ,,r ,,. 1 6 I 1 A 4 June 24, 2021 Auditor General's Office Local Government Audits/342 Claude Pepper Building, Room 401 111 West Madison Street Tallahassee, FL 32399-1450 We are pleased to note that the audit report for the fiscal year 2019/2020 for the North Collier Fire Control and Rescue District reflected no current or prior year comments which require management's response. The Board of Fire Commissioners and management staff of the North Collier Fire Control & Rescue District maintain their commitment to create and maintain internal controls, and policy and procedures to insure accurate reporting, accountability and provide for the financial stability of the District. Sincerely, NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT 1885 Veterans Park Drive Naples, FL 34109.(239)597-3222•northcollierfire.com BOARD OF FIRE COMMISSIONERS M.James Burke•James A.Calamari.Christopher L.Crossan•Norman E. Feder.J. Christopher Lombardo 1611A4 EXHIBIT 2 1611A4 IMPACT FEE AFFIDAVIT BEFORE ME, the undersigned authority, personally appeared Ben Van Klingeren, who being duly sworn, deposes and says on oath that: 1. I am the Chief Financial Officer of the North Collier Fire Control and Rescue District (NCFR), which is an independent special district of the State of Florida; 2. NCFR adopted Resolution No. 19-023 implementing an impact fee; and 3. NCFR has complied and, as of the date of this Affidavit, remains in compliance with Section 163.31801, Florida Statutes. FURTHER AFFIANT SAYETH NAUGHT. Ben Van Klingeren, Chi Financial Officer STATE OF FLORIDA COUNTY OF COLLIER SWORN TO AND SUBSCRIBED before me this 1st day of April, 2021. NOTARY PUBLIC Print Name LORI F e B u- Personally known or produced identification Type of identification produced: My Commission Expires: Lori L Freiburg �I(� � NOTARY PUBLIC d`� O c��j 9�i: _CommitGG9455222'9DA ie Expires 1/8/2024 The Quarry Community Development District 1 6 I 1 A 5 Board of Supervisors District Staff Stanley T.Omland,Chairman Justin Faircloth,District Manager Lloyd Schliep,Vice Chairman Wes Haber,District Counsel Timothy B.Cantwell,Assistant Secretary Albert Lopez,District Engineer William G.Flister,Assistant Secretary Dean Britt,Assistant Secretary Meeting Agenda Monday May 17, 2021 @ 1:00 pm The Quarry Beach Club 8975 Kayak Drive Naples,FL 1. Call to Order 2. Pledge of Allegiance 3. Approval of Agenda 4. Public Comments on Agenda Items 5. Engineer's Report A. Engineer's Written Report B. CPH Water Quality Monitoring Proposal v.1 C. CPH Water Quality Monitoring Proposal v.2 D. CPH Buoys Coordinates Exhibit E. CPH Preserve Inspection Proposal F. CPH QE Phase II&III Warranty Inspection Report G. CPH Exiting Stormwater Management Lakes Assessment&Maintenance Advisement H. Quarry Golf Course Lake 47 Test Case Discussion I. FY2021 Additional Lake Bank Restoration Recommendations J. CPH CES Landing Sites Permitting/Design Proposal 6. District Manager's Report A. Approval of the April 19, 2021 Minutes B. Acceptance of the Financial Report,and Approval of the Check Register and Invoices of April 2021 C. Follow-up Items i. Status of Resident Complaints ii. Variance Easement Report Update iii. Letter from Berger, Toombs,Elam, Gaines & Frank 7. Presentation of the Fiscal Year 2022 Financial Budget A. Consideration of Resolution 2021-06, Approving the FY2022 Budget and Setting the Public Hearing 8. Attorney's Report A. Attorney's Written Report B. License Agreement for Installation of Improvements Discussion The Quarry CDD Meeting Agenda �Pa A 5 May 17, 2021 9. Old Business Items A. FEMA Update B. Assessment Methodology—Golf Course Report 10.New Business Items A. QCA Land Swap Request B. Florida Reserve Study and Appraisal 11. Supervisor Requests A. Reports i. Chairman's Report: Mr. Omland ii. Lake &Preserve: Mr. Flister 1. CES Preserve Maintenance Contract Amendment Discussion 2. Inframark Monthly Inspection Report Proposal iii. Illinois Pondweed Lake Survey: Mr. Schliep iv. Heritage Bay Umbrella Association Update: Mr. Cantwell 12. Audience Comments 13. Adjournment Next meeting: Monday June 21, 2021 If you require a meeting package please access it via the Dropbox: www.dropbox.com Login: quarrvCDD(i,gmail.com Pswd: Collier2004 Meeting Location: The Quarry Beach 8975 Kayak Drive Naples,FL -4.. 4 I 6 I 1 A 5 Al- iaitj ? riu PART OF THE USA TODAY NETWORK Published Daily Naples, FL 34110 QUARRY CDD % INFRAM ARK 210 N UNIVERSITY DR CORAL SPRINGS, FL 33071-7394 Affidavit of Publication STATE OF WISCONSIN COUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, Florida; distributed in Collier and Lee counties of Florida; that the attached copy of the advertising was published in said newspaper on dates listed. Affiant further says that the said Naples Daily News is a newspaper published at Naples, in said Collier County, Florida, and that the said newspaper has heretofore been continuously published in said Collier County, Florida; distributed in Collier and Lee counties of Florida, each day and has been entered as second class mail matter at the post office in Naples, in said Collier County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he has neither paid nor promised any person, or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. Published: 09/15/2020 ......--"L—In_ Subscribed and sworn to before on September 15,2020: Notary,State of WI,County of Brown r— 1 TARP. MONDLOCH Notary Public l ;Jtate of Wisconsin My commission expires August 6,2021 Publication Cost:$343.00 Ad No:0004356332 Customer No: 1307330 PO#: FY2021 Meetings #of Affidavits1 This is not an invoice 1 6 I 1 A 5 NOTICE OF MEETINGS THE QUARRY COMMUNITY DEVELOPMENT DISTRICT The Board of Supervisors of The Quarry Community Devel- opment District will hold their meetings for Fiscal Year 2021 on the third Monday of every month at 1:00 p.m. *at The Quarry Beach Club located at 8975 Kayak Drive, Naples, Florida 34120, on the follow- ing dates: October 19,2020 November 16,2020 December 14,2020 January 18,2021 February 15,2021 March 15,2021 April 19,2021 May 17, 2021 - Tentative Budget Presentation June 21,2021 July 19,2021 August 16,2021 September 20,2021 *Please note that due to the ongoing nature of the COVlD- 19 public health emergency, it may be necessary to hold the above referenced meetings utilizing communications me- dia technology in order to protect the health and safety of the public or held at an al- ternative physical location other than the location indi- cated above. To that end, anyone wishing to participate in such meetings should con- tact the District Manager's Of- fice prior to each meeting to confirm the applicable meet- ing access and/or location in- formation. Additionally, in- terested parties may refer to the District's website for the latest information:https://ww w.quarrycdd.org/. There may be occasions when one or more Supervisors may participate via telephone. Any interested person can at- tend the meeting at the above location and be fully in- formed of the discussions tak- ing place. Meetings may be continued to a date, time and location to be specified on the record at the meetings with- out additional publication of notice. Any person requiring special accommodations at these meetings because of a disabil- ity or physical impairment • should contact the District Of- fice at (954) 603-0033 at least 48 hours prior to the meeting. If you are hearing or speech impaired, please contact the • Florida Relay Service at 7-1-1, or 800-955-8771 (TTY)/800- 955-8770 (Voice), for aid in contacting the District Office. • • Each person who decides to • appeal any action taken by the Board at these meetings is advised that person will need a record of the proceedings and accordingly, the person may need to ensure a verba- • tim record of the proceedings is made, including the testi- mony and evidence upon which such appeal is to be • based. Bob Koncar Manager September 15,2020#4356332 161 1A pa 2216 Altamont Avenue Fort Myers,Florida 33901 Phone:239.332.5499 Fax:239.332.2955 wunu.cphcorp.com The Quarry CDD - Engineer's Report May 2021 Variance Approvals • 9237 Gypsum Way Dock-Anchor Inspection o CPH submitted opinion letter for potential anchor alternative based on similar dock installation detail provided for 9273 Quarry Dr. Home Owners Issues • 9160 Flint Ct—Resident expressed concerns with recently repaired rip rap area. CPH inspected the area and provided a written report for the Board's discussion. Existing stacked pavers are not placed within the LME. SFWMD Coordination • CPH has cancelled this inspection per the Board's request. Pending Contracts/Proposals • Water Quality Monitoring Report o Two different proposals were submitted for the Board's consideration and approval. • Preserve Maintenance Inspection o Proposal for up to (4) events was submitted for the Board's consideration and approval. • Weed Storage Ramp o CPH currently working on this proposal. • Lake Stabilization Test Spot—Inspection proposal o CPH currently working on this proposal Agenda�ag #7 A 5 Current Projects • Stormwater System Annual Report- completion expected 5/7/2021 • Golf Course Lakes Assessment-completion expected 5/7/2021 • QE's Warranty Inspection-completion expected 5/7/2021 Agenda Page#9 • I1AS AGREEMENT FOR PROFESSIONAL SERVICES @ 0 uu BETWEEN CPH, INC. AND INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. FOR THE QUARRY COMMUNITY DEVELOPMENT DISTRICT WATER QUALITY MONITORING COLLIER COUNTY, FLORIDA May 3,2021 CPH, Inc., Environmental Services (CPH) has prepared a proposal of services and fees to provide certain professional consultant services for the above referenced project. CPH, Inc. hereinafter known as CPH or CONSULTANT proposes to furnish Inframark Infrastructure Management Services, Inc., hereinafter known as the Client, the professional services described below for the fees stipulated herein. PROJECT DESCRIPTION CPH, Inc. has been requested to perform two (2) monitoring events to collect water quality data within approximately 31 lakes/stormwater management ponds with the community development district boundary. The first monitoring event will include all the CDD lakes and the second monitoring event will include 15 lakes. The 2 monitoring events shall occur in October 2021 and April 2022. A report of results shall be prepared summarizing each monitoring event for a total of 2 reports and each report will be provided to the Client. The lake monitoring shall include grab samples for each of the 31 lakes. The lakes proposed for sampling are numbered as 30,31,32,33, 34, 35, 36, 37, 38, 40, 41, 42, 44, 45, 46, 47, 48, 50, 53, 54, 55, 56, 57, 58, 59, 61, 62, 63, 63A, 63B and 64 (See Attached Sheet EX-1 for lake numbering). The lakes selected for the second monitoring event are to be determined. The Quarry CDD desires to assess and maintain the lakes/stormwater ponds and lake littoral zones in the above referenced lakes. CPH shall evaluate the existing conditions of the accessible stormwater infrastructure and lake/pond areas to identify vegetation within the littoral zones. CPH shall prepare a report documenting the existing conditions for the CDD and to provide recommendations for improvements need to maintain compliance with using SFWMD permit. The proposed scope of work includes items that are required as part of the SFWMD permit and discretionary to determine the quality of the lake/pond habitats. The water quality monitoring is not required by the SFWMD permit. However, water quality data gathered will assist with determining the functionality and health of the stormwater system. The CDD is required to maintain the stormwater system for the system to operate per the designed and permitted function. The evaluation and report will provide the CDD with the existing condition of the system and assist with budgeting improvements. 1 Proposal to Inframark Infrastructure Management Services,Inc. 1 6 1 The Quarry Community Development District Agenda Page e#10 Water Quality Sampling May 3,2021 Page 2 of 6 1.0 SCOPE OF SERVICES 1.1 Basic Services CPH shall provide, or obtain from others, all labor, material and equipment to perform the following services: ENV-1 October 2021 Water Sampling Event& Report ✓ CPH shall notify the CCD at least two (2)weeks prior the scheduled water quality sampling event. CPH shall sample salinity, conductivity, temperature, dissolved oxygen, pH for one (1) event within approximately 31 lakes within the development boundaries. CPH shall collect one (1) sample for each parameter to include Chlorophyll a, Total Nitrogen and Total Phosphorus within approximately 31 lakes. • CPH shall coordinate with the analytical laboratory to obtain sampling materials for collection of Chlorophyll a, TN and TP as needed. Once samples area collected, CPH shall deliver samples to the laboratory for analysis. • Water quality sampling shall be located within the deep part of the lake within the photic zone. The sample depth and time will be recorded and identified within the report. CPH anticipates two to three days to sample lakes. y During water quality sampling, CPH scientists shall photograph lakes, document the aquatic vegetation observed and additional observations that may affect water quality. These observations shall also be recorded and photographed as deemed necessary. • CPH shall report any issues observed during the sampling events to the Client via email. • CPH shall report the monitoring event results to the Client within two (2) weeks of receipt of the laboratory sampling results. A location map of the sampling areas shall also be provided in the report. • FDEP Standard Operating Procedures (SOP) shall be followed with sample collection, handling and laboratory analysis. • CPH shall address comments or issues brought forth by the CDD regarding the report. CPH shall revise the report as needed. ENV-2 April 2022 Water Sampling Event& Report • CPH shall notify the CCD at least two (2)weeks prior the scheduled water quality sampling event. • CPH shall sample salinity, conductivity, temperature, dissolved oxygen, pH for one (1) event within approximately 15 lakes within the development boundaries. CPH shall collect one (1) sample for each parameter to include Chlorophyll a, Total Nitrogen and Total Phosphorus within approximately 15 lakes. • CPH shall coordinate with the analytical laboratory to obtain sampling materials for collection of Chlorophyll a, TN and TP as needed. Once samples area collected, CPH shall deliver samples to the laboratory for analysis. y- Water quality sampling shall be located within the deep part of the lake within the photic zone. The sample depth and time will be recorded and identified within the report. CPH anticipates two to three days to sample lakes. • During water quality sampling, CPH scientists shall photograph lakes, document the aquatic vegetation observed and additional observations that may affect water quality. These observations shall also be recorded and photographed as deemed necessary. Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda PTe#ti1 5 Water Quality Sampling 6 May 3,2021 Page 3 of 6 • CPH shall report any issues observed during the sampling events to the Client via email. • CPH shall report the monitoring event results to the Client within two (2) weeks of receipt of the laboratory sampling results. A location map of the sampling areas shall also be provided in the report. FDEP Standard Operating Procedures (SOP) shall be followed with sample collection, handling and laboratory analysis. • CPH shall address comments or issues brought forth by the CDD regarding the report. CPH shall revise the report as needed. 1.2 Additional Services Provide other professional and technical services not specifically identified in Sections ENV-1 and ENV-2. 2.0 COST AND COMPENSATION 2.1 Basic Services Services under Basic Services, Task ENV-1 above shall be provided as a Fixed Fee of$14,100 for one (1) sampling event to monitor approximately 31 water bodies including report preparation. Services under Basic Services, Task ENV-2 above shall be provided as a Fixed Fee of$11,340 for one (1) sampling event to monitor approximately 15 water bodies including report preparation. 3.0 RESPONSIBILITIES OF OTHERS > The Client shall guarantee access to and make provisions for CPH to enter public or private lands as required by CPH to perform their work under this Agreement. > It is understood that CPH, Inc. will perform services under the sole direction of the Client or his designated representative. In the performance of these services, CPH will coordinate its efforts with those of other project team members and consultants as required. The Client shall provide CPH with all project related information available including the existing land plan, property legal description, title work, boundary and topographic surveys, geotechnical investigation reports, etc. CPH will rely upon the accuracy and completeness of all Client furnished information in connection with the performance of services under this agreement. > The CDD shall provide CPH with any reports prepared previously within information on the stormwater management system, any homeowner complaints regarding erosion or other issues related to the lakes/ponds and any information on infrastructure improvements performed by the CDD. 4.0 SERVICES NOT INCLUDED The following services are not anticipated and, therefore, not included in this Agreement at this time: > Environmental studies and coordination of environmental issues with the regulatory agencies. Proposal to Inframark Infrastructure Management Services,Inc. Agenda Page#12 The Quarry Community Development District Water Quality Sampling May 3, of 6 1 6 I 1 A 5 Page 4 of 6 • Wetlands Permitting Wildlife Assessments and Permitting • Review of an alternative product in lieu of the product called for on the plans and specifications • Services resulting from changes made by client following the completion of specific project tasks that require re-work by CPH • Special meetings with agencies, other consultants or Client not normally required to perform the work described in the Scope of Services, except those meetings specifically identified in the above Scope of Work - Phase II and remediation • Any other issues not specifically described in this proposal Should work be required in any of these areas, or areas not previously described, CPH will prepare a proposal or amendment, at the CLIENT's request, that contains the Scope of Services, fee, and schedule required to complete the additional work item. 5.0 SCHEDULE CPH will work expeditiously to complete the scope of services in a timely manner. The estimated schedule for services is attached to the proposal. The schedule may be adjusted if there are weather delays. 6.0 AUTHORIZATION Should the agreement be acceptable, please sign, retain a copy for your records, and return a copy to CPH as our notice to proceed. We look forward to working with you on this endeavor. Should you have any questions, please call me at(407) 399-0840. CPH, INC AUTHORIZATION t , By: Amy E. Daly, LEED AP Title: Vice President/Director of Environmental Services Date: May 3, 2021 Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda Page#13 Water Quality Sampling May 3,2021 Page 5 of 6 1 6 I 1 A 5 CLIENT AUTHORIZATION INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. agrees with the Scope of Services, Compensation, and Standard Provisions Exhibit A (attached hereto and acknowledged as being received). Together they constitute the entire Agreement between CPH, INC. and INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. The fees for Basic Services proposed herein are estimated at$25,440 It is understood that fees for the subject project, including but not limited to, application fees, impact fees, utility connection fees, review fees, etc., will be paid directly by the CLIENT. Payment for services rendered will be due within forty-five (45) days of invoicing. Should the CLIENT choose to not complete the project at any phase of the project, CPH will be due any fees for services up to the time the CLIENT informs CPH in writing to stop work. Payment for services up to the time of the CLIENT'S notice will be due within thirty (30) days of the final invoice. Invoice payments must be kept current for services to continue. CPH reserves the right to terminate or suspend work when invoices become ninety (90) days past due. In event that the work is suspended or terminated as a result of non-payment, CLIENT agrees that CPH will not be responsible for CLIENT'S failure to meet project deadlines imposed by governments, lenders, or other third parties. Neither is CPH responsible for other adverse consequences as a result of termination or suspension of work for nonpayment of the invoices. This proposal is void if not executed and returned to the CONSULTANT within 60 days of the CONSULTANTS execution of the proposal. By: INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. Print Name: Date: Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda Page#14 Water Quality Sampling May 3,20of 6 1 6 I 1 A 5 Page 6 of 6 The Quarry CDD Preliminary Schedule Water Quality Monitoring Task# Activity Date Fixed Fee Sampling—October 2021 ENV-1 Water Quality Sampling and Report Report—November 2021 $14,100 Sampling -April 2022 ENV-2 Water Quality Sampling and Report Report- May 2022 $11,340 TOTAL FEE $25,440 Agenda Page#15 1611A5 EXHIBIT A Standard Provisions to Agreement Agreement between Inframark Infrastructure Management Services, Inc. (hereinafter referred to as "OWNER/CLIENT") and CPH, Inc. (hereinafter referred to as "CPH") for professional services which may include engineering, surveying, architecture, landscape architecture, environmental, forestry, planning, transportation/traffic, etc. dated May 3, 2021. Standard of Care CPH will endeavor to provide services in a manner consistent with the level of care and skill ordinarily exercised by other professionals under similar circumstances practicing in the same or similar locality. The standard of care shall be exclusively judged at the time services are rendered and not according to later standards. CPH makes no express or implied warranty with regard to its services. Compensation, Out of Pocket and Subcontract Expenses "Compensation" as used in the Agreement includes those costs which are connected with the conditions of employment and pay of the employees and include salaries of those employees directly engaged in the performance of the requested services and employer contributions for social security, workers compensation, unemployment and payroll taxes, medical and insurance benefits, retirement benefits, holiday and sick leave pay and other allowed benefits. "Out of Pocket Expenses" as used in the Agreement include such items as travel and subsistence, printing and reproduction, telephone/communications charges, freight, postage, computer and similar costs. "Subcontract Expenses" as used in this Agreement include subcontracts for special consultants such as licensed land surveyors, soils borings and geotechnical and geohydrological services, laboratory services, environmental scientist services and other professional scientific or technical service organizations. Invoice payments are due upon receipt of the invoice and must be kept current for services to continue. Payment should be mailed to CPH, Inc. at 500 West Fulton Street, Sanford, FL 32771. If the OWNER/CLIENT fails to pay any invoice due within 45 days of the date of the invoice, CPH may, without waiving any other claim or right against OWNER/CLIENT, suspend services under this agreement until CPH has been paid in full all amounts due CPH and/or any of its consultants and subconsultants. OWNER/CLIENT shall pay CPH interest at 12% per annum on all invoices that remain unpaid for more than 45 days. Additional Services "Additional Services" of CPH are services which are not considered normal or customary basic services, except to the extent provided in the basic Agreement, and may include such items as preparation of grant or funding applications and supporting documents; additional services or costs resulting from significant changes in the scope or extent of the project or its design or project delays; providing renderings or models for the OWNER/CLIENT's use; preparing documents for alternate bids; furnishing the services of special consultants; resident project representation or resident inspection; services resulting from the award of additional separate contracts; special field surveys; reproducible Record Drawings or original Drawings; providing "as-built" drawings; additional services during construction; serving as a consultant or witness for the OWNER/CLIENT during any litigation, public hearing, etc.; and services normally furnished by the OWNER/CLIENT; or other services not otherwise specifically provided for in the Agreement. Additional services are not included in the basic payment provisions of the Agreement except to the extent specifically provided herein. Opinions of Cost Since CPH has no control over the cost of labor, materials, equipment or services furnished by others, or over the CONTRACTOR(s)' methods of determining prices, or over competitive bidding or market conditions, our opinions of probable project cost and construction cost are made on the basis of our experience and qualifications and represent our best judgment as an experienced and qualified professional, familiar with the construction industry; Exhibit A Page 1 of 5 CPH, Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Agenda Page#16 1 6 I 1 A 5 but CPH cannot and does not guarantee that proposals, bids, or actual project costs or construction costs will not vary from opinions of probable cost prepared by us. Use of Documents All documents including Drawings and Specifications prepared by CPH pursuant to this Agreement belong to CPH and are instruments of our service in respect to the project. They are not intended or represented to be suitable for reuse by the OWNER/CLIENT on another project or any extension of this project, or for use by others on this project, any extension, or any other project. Rights to use of the documents by Owner/Client shall terminate in the event that Owner/Client fails to pay invoices as outlined herein. Underground Utilities and Structures The locations of all existing utilities shown on the drawings prepared by CPH will be based on surveys of at-grade or above grade physical culture (such as valve boxes, hydrants, utility poles, permanent markers) and surveying to pick up temporary utility locate markings provided by the utility. CPH assumes no responsibility for the accuracy of utilities shown by temporary markings provided by the utility or the locations of utilities based on other non-physical features (such as plans prepared by others including mark-ups of locations provided by the utility). The below grade vertical and horizontal locations of utilities will not be required to be surveyed by CPH, and consequently, CPH assumes no responsibility for the location of below grade utilities. The OWNER/CLIENT agrees to release CPH from any liability to OWNER/CLIENT for the failure to locate any existing utility where its physical location could not have reasonably been known based on the above. Termination The obligation to provide further services under this Agreement, may be terminated by either party upon fifteen (15) days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of the Agreement through no fault of the terminating party. If the Agreement is terminated during prosecution of the services and prior to the completion of services, CPH shall be compensated by the OWNER/CLIENT for all services performed under this Agreement to the date of termination. In addition, CPH will be paid for all reasonable expenses resulting from such termination. Construction Administration Where construction administration is provided as a part of the basic services as outlined in the Agreement, CPH shall not be required to make exhaustive or continuous on-site inspections, but shall make periodic observations as may be outlined in more detail in the basic Agreement. CPH shall not be responsible for the means, methods, techniques, procedures of construction, or schedules selected by the CONTRACTOR or the safety precautions and programs incident to the work of the CONTRACTOR. CPH will periodically visit the site at intervals outlined in the Agreement to become generally familiar with the progress of the work to keep the Owner advised of the work. CPH will observe the work of the CONTRACTOR to endeavor to determine if the work is in general conformance with the project documents. CPH shall not be responsible for the failure of the CONTRACTOR to perform the construction work in accordance with the Documents. CPH shall provide the OWNER/CLIENT with written notice of any uncorrected defects or deficiencies coming to its attention in the course of the periodic visits above-mentioned. During such visits and on the basis of its on-site observations, CPH may recommend to the OWNER that the CONTRACTOR's work be disapproved or rejected as failing to conform to the Documents. CPH shall not have the right or duty to stop the CONTRACTOR's work. Professional Services Provided by Others Surveying, soils, planning, architecture, landscape architecture, legal, accounting, construction inspection and other services may be provided by the OWNER/CLIENT or others on this project and the results furnished to CPH. It is agreed that CPH may rely upon the results of those services by others in performing its work without verification of same. CPH assumes no responsibility for the accuracy or technical adequacy of such professional services provided by others. Exhibit A Page 2 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Agenda Page#17 161 1A5 CPH's Approval for Payment Approval of a CONTRACTOR's application for payment is an expression of opinion by CPH and shall at no time be considered as legal obligation on the part of CPH. Neither shall same be considered as an acceptance of any work or materials furnished. CPH's approval for payment is an expression of opinion by CPH that to the best of our knowledge, information and belief, the quality of the work included for payment is in general accordance with the Contract Documents (subject to an evaluation of the work as a functioning improvement upon substantial completion and to the results of any subsequent tests or inspection made). By approving an application for payment, CPH will not be deemed to have represented that we have made any examination of how or for what purpose any CONTRACTOR has used the money paid on any of the CONTRACTOR's work or that title to any of the CONTRACTOR's work, materials or equipment has passed to the OWNER/CLIENT, free and clear of any liens, claims, security interests or encumbrances. Checking of Shop Drawings Checking of shop drawings is only for general conformance with the design concept of the project and general compliance with the information given in the Contract Documents. Any action shown is subject to the requirements of the Plans and Specifications. It is the CONTRACTOR's responsibility and not that of the CPH, for dimensions which shall be confirmed and correlated at the job site; fabrication processes and techniques of construction; coordination of his work with that of all other trades and the satisfactory performance of his work. Pre-existing Contaminants CPH shall not be considered a generator, transporter, or disposer of materials affected by regulated contaminants. Because involvement with OWNER/CLIENT's contaminated substances can expose CPH to severe risks, OWNER/CLIENT shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless from any claim or liability for injury or loss allegedly arising from CPH's involvement with OWNER/CLIENT's contaminated substances. OWNER/CLIENT shall also compensate CPH for any time spent or expense incurred by CPH in defense of any such claim. Such compensation shall be based on CPH's prevailing fee schedule and expense reimbursement policy. Site Safety Responsibilities CPH's site responsibilities are limited solely to the activities of CPH and CPH's employees on the site. These responsibilities shall not be inferred by any party to mean that CPH has responsibility for site safety for any reason. Safety in, on, or about the site is the sole and exclusive responsibility of the Contractor alone. The Contractor's methods of work performance, superintendence of the contractor's employees and subcontractors, and sequencing of construction are also the sole and exclusive responsibility of the Contractor alone. OWNER/CLIENT warrants that:1) these responsibilities will be made clear in OWNER/CLIENT's agreement with the Contractor; 2) OWNER/CLIENT's agreement with the Contractor shall require the Contractor, to the extent of Contractor's negligence, to indemnify, defend, and hold OWNER/CLIENT and CPH harmless up to a limit of $1,000,000 from any fine, penalty, claim, or liability for injury or loss arising from OWNER/CLIENT'S or CPH's alleged failure to exercise site safety responsibility; and 3) OWNER/CLIENT's agreement with the Contractor shall require the Contractor to make OWNER/CLIENT and CPH additional insureds under the Contractor's general liability insurance policy, which insurance protection shall be primary protection for OWNER/CLIENT and CPH, and shall hold OWNER/CLIENT and CPH harmless from claims, losses, and defense cost arising from the negligence of contractor or subcontractor on any tier up to a limit of $1,000,000. Given the foregoing, OWNER/CLIENT also shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless up to a limit of$1,000,000 from any claim or liability for injury or loss arising from CPH's alleged failure to exercise site safety responsibility. OWNER/CLIENT also shall compensate CPH for any time spent and attorney fees and expenses incurred by CPH in defense of any such claim. Such compensation shall be based upon CPH's prevailing fee schedule and expense reimbursement policy. (The term "any claim" above referenced shall include, but not limited to, any claim for breach of contract, tort, or statute alleging negligence, errors, omissions, strict liability, statutory liability, breach of warranty, negligent misrepresentation, or other acts giving rise to liability.) Exhibit A Page 3 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Agenda Pie ktiI 1 A 5 Governing Law,Venue, Jurisdiction This instrument is to be interpreted and construed according to the laws of the State of Florida. It is agreed between the parties to this contract that any litigation, lawsuit or court action of any character arising from this agreement shall be filed and/or defended in Seminole County, Florida. All parties under this contract hereby voluntarily submit to the exclusive jurisdiction of the Florida Courts and the exclusive venue in Seminole County, Florida and do hereby waive any objections to either personal or subject matter jurisdiction of the Florida Courts or to said venue. Attorney Fees and Costs In connection with any dispute arising out of this Contract, each party shall be responsible for their own attorney's fees and costs incurred for services rendered in connection with such dispute, including appellate proceedings and post judgment proceedings. Waiver of Consequential Damages OWNER/CLIENT and CPH mutually agree to waive all claims for consequential damages against each other an each other's respective officers, directors, and employees from any and all claims arising out of the project, including, but not limited to, loss of use, lost profits, and delay damages, against each other, arising from disputes, claims, or other matters relating to this Agreement. Delay In Performance Neither the OWNER/CLIENT nor CPH shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. Such circumstances shall include, but are not limited to, abnormal weather conditions, floods, earthquakes, fire, epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and delay in or inability to procure permits, licenses, and authorizations from any local, state or federal agency; for any supplies, materials, accesses, or services required to be provided by either the OWNER/CLIENT or CPH under this Agreement. A reasonable extension of time for delay in performance caused by any such circumstances shall be granted. Should such circumstances occur the non-performing party shall within a reasonable time of being prevented from performing give written notice to the other party describing the circumstances preventing continued performance and efforts being made to resume performance under this Agreement. Project Development, Approvals and Scheduling CPH will, in the course of its work, attempt to generally identify issues that would adversely affect the development of the site for use as proposed by the Owner/Developer. However, CPH cannot control the regulatory process, actions of others, or unforeseen conditions and does not guarantee that the project can be developed for use as proposed, nor does CPH guarantee the timing of or ultimate regulatory approval of the site for development as proposed. The local, state, and federal entities and authorities ("Authorities") having jurisdiction over the project may or may not approve the proposed use of the project. Additionally, it is uncertain how long those Authorities will take to consider and to take action on the applications for the proposed use of the project. Said decisions and approvals are subject to the decision making process of those Authorities. Therefore, CPH cannot represent or guarantee that said Authorities will approve, in whole or in part, the requested use of the project or that the decision making process will be timely for the project's use, or that the Authorities will grant variances applicable to the project. Therefore, the OWNER/CLIENT bears the risk of non-approval of the proposed use and the timing thereof. The OWNER/CLIENT needs to consider the ramifications to it if the project is not approved or only approved in part. Exhibit A Page 4 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 1611A5 Agenda Page#19 Limitation of Liability: Site Check Studies OWNER/CLIENT acknowledges that CPH's Site Check Studies pursuant to this Agreement are general in nature and are performed before design is started or completed. OWNER/CLIENT acknowledges the recommendation of CPH that the OWNER/CLIENT should not close on the subject property unless and until all applicable agency approvals are obtained and the permitting process is completed. If OWNER/CLIENT elects to close on the subject property prior to that time, OWNER/CLIENT accepts all risks and liability arising from closing prior to obtaining all applicable agency approvals and completion of the permitting process and releases CPH and CPH's officers, directors, and employees from all claims thereof. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity relating to CPH's Site Check Studies under this contract such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee for the Site Check Study paid by OWNER/CLIENT to CPH under this Agreement or$10,000, whichever is greater. Design And Other Professional Services OWNER/CLIENT acknowledges that CPH's services pursuant to this Agreement are to assist the client and are for the scope of services as outlined in the attached contract. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity, such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee paid by OWNER/CLIENT to CPH under this Agreement or$50,000, whichever is greater. PURSUANT TO FLORIDA STATUTE 558.0035, DESIGN PROFESSIONALS; CONTRACTUAL LIMITATION ON LIABILITY - AN INDIVIDUAL EMPLOYEE OR AGENT MAY NOT BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE Construction Defects on Florida Projects ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES Exhibit A Page 5 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 1 6 I 1A5 a [( . E i v"N LL [6 tlOMOId/A1Nf102 33111001 S31dVN IQ ``1Z !s �' t VIII O a„m'< alt 'r v w v d v o aao Adavnt)3H1 lt4 i z 1 n u 2111'1 a- €w -g' S311111f31SNOdS3N 3ONVN3INIVIN Y " 'W�:Jv v ag$E ANNVMD 3H1 h a z a I. F - � c Z S F 6 K a ---z- a a e c U 0 0 8U H 6 ? Q O O F Q R a 0 0 0 0 0 2 T, U F ,T. w 6 /�' _ _ l it l lil I' ,J ',T-----------1 II II q W 'I' ��/1/11 ' ) a d________:\,`,....___ _...—- , \-,,,.\-- Lill 1 /n is 1` -- I/ A. 3 1U _a4, �• �• +llj - '. I' J w w c - 10 o 1-3 ffilpy �I �� JI■1111111►�; + ii �� , f will � � � 1 -m !Ai k�rrilnb✓ ,t t , �::::,....:.4.: W 1 1 1dwl1 D a �1 wi w ''it ,- -------_,..L.,„,. ,(\__ill_A„, "911117_1y, i, 1,V,. , . 11,i/3' , E.•-- a i (4.Am 'tie& :7.. (-)A c,) — ."....1.., Av. . ,, , .Ito 1 ...4.. ii.-aillr • ( ((._, 1 a_'I =; ■I i■i ;`% �_UIIIIIIIIIII� , i 1ir II it Of G 1�' [I ,� „my*, 4Q►►►►►►ttlItI► I / + . 1k ♦ I_� 1b ;.�I r� . . 2��►►►►1►�"1►//r 01:3��° S -1r ani ism ma � ... II ,- 1 i f 1 I l Agenda Page#22 1 6 I 1 A 5 AGREEMENT FOR PROFESSIONAL SERVICES 0 Th BETWEEN CPH, INC. AND INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. FOR THE QUARRY COMMUNITY DEVELOPMENT DISTRICT WATER QUALITY MONITORING COLLIER COUNTY, FLORIDA May 3, 2021 CPH, Inc., Environmental Services (CPH) has prepared a proposal of services and fees to provide certain professional consultant services for the above referenced project. CPH, Inc. hereinafter known as CPH or CONSULTANT proposes to furnish Inframark Infrastructure Management Services, Inc., hereinafter known as the Client, the professional services described below for the fees stipulated herein. PROJECT DESCRIPTION CPH, Inc. has been requested to perform two (2) monitoring events to collect water quality data within approximately 15 lakes/stormwater management ponds with the community development district boundary. The 2 monitoring events shall occur in October 2021 and April 2022. A report of results shall be prepared summarizing each monitoring event for a total of 2 reports and each report will be provided to the Client. The lake monitoring shall include grab samples from 15 of the 31 lakes. The15 lakes to be sampled will be selected from the numbered lakes of 30,31,32,33, 34, 35, 36, 37, 38, 40, 41, 42, 44, 45, 46, 47, 48, 50, 53, 54, 55, 56, 57, 58, 59, 61, 62, 63, 63A, 63B and 64 (See Attached Sheet EX-1 for lake numbering). The Quarry CDD desires to assess and maintain the lakes/stormwater ponds and lake littoral zones in the above referenced lakes. CPH shall evaluate the existing conditions of the accessible stormwater infrastructure and lake/pond areas to identify vegetation within the littoral zones. CPH shall prepare a report documenting the existing conditions for the CDD and to provide recommendations for improvements need to maintain compliance with using SFWMD permit. The proposed scope of work includes items that are required as part of the SFWMD permit and discretionary to determine the quality of the lake/pond habitats. The water quality monitoring is not required by the SFWMD permit. However, water quality data gathered will assist with determining the functionality and health of the stormwater system. The CDD is required to maintain the stormwater system for the system to operate per the designed and permitted function. The evaluation and report will provide the CDD with the existing condition of the system and assist with budgeting improvements. 1.0 SCOPE OF SERVICES 1.1 Basic Services CPH shall provide, or obtain from others, all labor, material and equipment to perform the following services: 1 Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda Page#23 Water Quality Sampling May 3,2021 Page 2 of 6 I1A5 ENV-1 October 2021 Water Sampling Event& Report CPH shall notify the CCD at least two (2)weeks prior the scheduled water quality sampling event. :- CPH shall sample salinity, conductivity, temperature, dissolved oxygen, pH for one (1) event within approximately 15 lakes within the development boundaries. CPH shall collect one (1) sample for each parameter to include Chlorophyll a, Total Nitrogen and Total Phosphorus within approximately)5 lakes. • CPH shall coordinate with the analytical laboratory to obtain sampling materials for collection of Chlorophyll a, TN and TP as needed. Once samples area collected, CPH shall deliver samples to the laboratory for analysis. r Water quality sampling shall be located within the deep part of the lake within the photic zone. The sample depth and time will be recorded and identified within the report. CPH anticipates two to three days to sample lakes. y During water quality sampling, CPH scientists shall photograph lakes, document the aquatic vegetation observed and additional observations that may affect water quality. These observations shall also be recorded and photographed as deemed necessary. CPH shall report any issues observed during the sampling events to the Client via email. • CPH shall report the monitoring event results to the Client within two (2)weeks of receipt of the laboratory sampling results. A location map of the sampling areas shall also be provided in the report. • FDEP Standard Operating Procedures (SOP) shall be followed with sample collection, handling and laboratory analysis. • CPH shall address comments or issues brought forth by the CDD regarding the report. CPH shall revise the report as needed. ENV-2 April 2022 Water Sampling Event& Report - CPH shall notify the CCD at least two (2)weeks prior the scheduled water quality sampling event. CPH shall sample salinity, conductivity, temperature, dissolved oxygen, pH for one (1) event within approximately 15 lakes within the development boundaries. CPH shall collect one (1) sample for each parameter to include Chlorophyll a, Total Nitrogen and Total Phosphorus within approximately 15 lakes. • CPH shall coordinate with the analytical laboratory to obtain sampling materials for collection of Chlorophyll a, TN and TP as needed. Once samples area collected, CPH shall deliver samples to the laboratory for analysis. >- Water quality sampling shall be located within the deep part of the lake within the photic zone. The sample depth and time will be recorded and identified within the report. CPH anticipates two to three days to sample lakes. .- During water quality sampling, CPH scientists shall photograph lakes, document the aquatic vegetation observed and additional observations that may affect water quality. These observations shall also be recorded and photographed as deemed necessary. • CPH shall report any issues observed during the sampling events to the Client via email. • CPH shall report the monitoring event results to the Client within two (2) weeks of receipt of the laboratory sampling results. A location map of the sampling areas shall also be provided in the report. • FDEP Standard Operating Procedures (SOP) shall be followed with sample collection, handling and laboratory analysis. Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda Page#24 Water Quality Sampling May 3,2021 Page 3 of 6 CPH shall address comments or issues brought forth by the CDD regarding the report. CPH shall revise the report as needed. 1.2 Additional Services Provide other professional and technical services not specifically identified in Sections ENV-1 and ENV-2. 2.0 COST AND COMPENSATION 2.1 Basic Services Services under Basic Services, Task ENV-1 above shall be provided as a Fixed Fee of$11,340 for one (1) sampling event to monitor approximately 15 water bodies including report preparation. Services under Basic Services, Task ENV-2 above shall be provided as a Fixed Fee of$11,340 for one (1) sampling event to monitor approximately 15 water bodies including report preparation. 3.0 RESPONSIBILITIES OF OTHERS • The Client shall guarantee access to and make provisions for CPH to enter public or private lands as required by CPH to perform their work under this Agreement. It is understood that CPH, Inc. will perform services under the sole direction of the Client or his designated representative. In the performance of these services, CPH will coordinate its efforts with those of other project team members and consultants as required. The Client shall provide CPH with all project related information available including the existing land plan, property legal description, title work, boundary and topographic surveys, geotechnical investigation reports, etc. CPH will rely upon the accuracy and completeness of all Client furnished information in connection with the performance of services under this agreement. • The CDD shall provide CPH with any reports prepared previously within information on the stormwater management system, any homeowner complaints regarding erosion or other issues related to the lakes/ponds and any information on infrastructure improvements performed by the CDD. 4.0 SERVICES NOT INCLUDED The following services are not anticipated and, therefore, not included in this Agreement at this time: • Environmental studies and coordination of environmental issues with the regulatory agencies. Y Wetlands Permitting • Wildlife Assessments and Permitting • Review of an alternative product in lieu of the product called for on the plans and specifications • Services resulting from changes made by client following the completion of specific project tasks that require re-work by CPH Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda Page#25 Water Quality Sampling May 3,2021 1 6 I 1 A 5 Page 4 of 6 fr Special meetings with agencies, other consultants or Client not normally required to perform the work described in the Scope of Services, except those meetings specifically identified in the above Scope of Work Phase II and remediation Any other issues not specifically described in this proposal Should work be required in any of these areas, or areas not previously described, CPH will prepare a proposal or amendment, at the CLIENT's request, that contains the Scope of Services, fee, and schedule required to complete the additional work item. 5.0 SCHEDULE CPH will work expeditiously to complete the scope of services in a timely manner. The estimated schedule for services is attached to the proposal. The schedule may be adjusted if there are weather delays. 6.0 AUTHORIZATION Should the agreement be acceptable, please sign, retain a copy for your records, and return a copy to CPH as our notice to proceed. We look forward to working with you on this endeavor. Should you have any questions, please call me at(407) 399-0840. CPH, INC AUTHORIZATION By: Amy E. Daly, LEED AP Title: Vice President/Director of Environmental Services Date: May 3, 2021 Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda Page#26 Water Quality Sampling May 3,2021 Page 5 of 6 CLIENT AUTHORIZATION INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. agrees with the Scope of Services, Compensation, and Standard Provisions Exhibit A (attached hereto and acknowledged as being received). Together they constitute the entire Agreement between CPH, INC. and INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. The fees for Basic Services proposed herein are estimated at $22,680 It is understood that fees for the subject project, including but not limited to, application fees, impact fees, utility connection fees, review fees, etc., will be paid directly by the CLIENT. Payment for services rendered will be due within forty-five (45) days of invoicing. Should the CLIENT choose to not complete the project at any phase of the project, CPH will be due any fees for services up to the time the CLIENT informs CPH in writing to stop work. Payment for services up to the time of the CLIENT'S notice will be due within thirty (30) days of the final invoice. Invoice payments must be kept current for services to continue. CPH reserves the right to terminate or suspend work when invoices become ninety (90) days past due. In event that the work is suspended or terminated as a result of non-payment, CLIENT agrees that CPH will not be responsible for CLIENT'S failure to meet project deadlines imposed by governments, lenders, or other third parties. Neither is CPH responsible for other adverse consequences as a result of termination or suspension of work for nonpayment of the invoices. This proposal is void if not executed and returned to the CONSULTANT within 60 days of the CONSULTANTS execution of the proposal. By: INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES, INC. Print Name: Date: Proposal to Inframark Infrastructure Management Services,Inc. The Quarry Community Development District Agenda Page#27 Water Quality Sampling May 3,2021 Page 6 of 6 6f 1A5 The Quarry CDD Preliminary Schedule Water Quality Monitoring Task# Activity Date Fixed Fee Sampling—October 2021 ENV-1 Water Quality Sampling and Report Report—November 2021 $11,340 Sampling -April 2022 ENV-2 Water Quality Sampling and Report Report- May 2022 $11,340 TOTAL FEE $22,680 Agenda Page#28 161 1A5 EXHIBIT A Standard Provisions to Agreement Agreement between Inframark Infrastructure Management Services, Inc. (hereinafter referred to as "OWNER/CLIENT") and CPH, Inc. (hereinafter referred to as "CPH") for professional services which may include engineering, surveying, architecture, landscape architecture, environmental, forestry, planning, transportation/traffic, etc. dated May 3, 2021. Standard of Care CPH will endeavor to provide services in a manner consistent with the level of care and skill ordinarily exercised by other professionals under similar circumstances practicing in the same or similar locality. The standard of care shall be exclusively judged at the time services are rendered and not according to later standards. CPH makes no express or implied warranty with regard to its services. Compensation, Out of Pocket and Subcontract Expenses "Compensation" as used in the Agreement includes those costs which are connected with the conditions of employment and pay of the employees and include salaries of those employees directly engaged in the performance of the requested services and employer contributions for social security, workers compensation, unemployment and payroll taxes, medical and insurance benefits, retirement benefits, holiday and sick leave pay and other allowed benefits. "Out of Pocket Expenses" as used in the Agreement include such items as travel and subsistence, printing and reproduction, telephone/communications charges, freight, postage, computer and similar costs. "Subcontract Expenses" as used in this Agreement include subcontracts for special consultants such as licensed land surveyors, soils borings and geotechnical and geohydrological services, laboratory services, environmental scientist services and other professional scientific or technical service organizations. Invoice payments are due upon receipt of the invoice and must be kept current for services to continue. Payment should be mailed to CPH, Inc. at 500 West Fulton Street, Sanford, FL 32771. If the OWNER/CLIENT fails to pay any invoice due within 45 days of the date of the invoice, CPH may, without waiving any other claim or right against OWNER/CLIENT, suspend services under this agreement until CPH has been paid in full all amounts due CPH and/or any of its consultants and subconsultants. OWNER/CLIENT shall pay CPH interest at 12% per annum on all invoices that remain unpaid for more than 45 days. Additional Services "Additional Services"of CPH are services which are not considered normal or customary basic services, except to the extent provided in the basic Agreement, and may include such items as preparation of grant or funding applications and supporting documents; additional services or costs resulting from significant changes in the scope or extent of the project or its design or project delays; providing renderings or models for the OWNER/CLIENT's use; preparing documents for alternate bids; furnishing the services of special consultants; resident project representation or resident inspection; services resulting from the award of additional separate contracts; special field surveys; reproducible Record Drawings or original Drawings; providing "as-built" drawings; additional services during construction; serving as a consultant or witness for the OWNER/CLIENT during any litigation, public hearing, etc.; and services normally furnished by the OWNER/CLIENT; or other services not otherwise specifically provided for in the Agreement. Additional services are not included in the basic payment provisions of the Agreement except to the extent specifically provided herein. Opinions of Cost Since CPH has no control over the cost of labor, materials, equipment or services furnished by others, or over the CONTRACTOR(s)' methods of determining prices, or over competitive bidding or market conditions, our opinions of probable project cost and construction cost are made on the basis of our experience and qualifications and represent our best judgment as an experienced and qualified professional, familiar with the construction industry; Exhibit A Page 1 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 1 6 I 1 A 5 Agenda Page#29 but CPH cannot and does not guarantee that proposals, bids, or actual project costs or construction costs will not vary from opinions of probable cost prepared by us. Use of Documents All documents including Drawings and Specifications prepared by CPH pursuant to this Agreement belong to CPH and are instruments of our service in respect to the project. They are not intended or represented to be suitable for reuse by the OWNER/CLIENT on another project or any extension of this project, or for use by others on this project, any extension, or any other project. Rights to use of the documents by Owner/Client shall terminate in the event that Owner/Client fails to pay invoices as outlined herein. Underground Utilities and Structures The locations of all existing utilities shown on the drawings prepared by CPH will be based on surveys of at-grade or above grade physical culture (such as valve boxes, hydrants, utility poles, permanent markers) and surveying to pick up temporary utility locate markings provided by the utility. CPH assumes no responsibility for the accuracy of utilities shown by temporary markings provided by the utility or the locations of utilities based on other non-physical features (such as plans prepared by others including mark-ups of locations provided by the utility). The below grade vertical and horizontal locations of utilities will not be required to be surveyed by CPH, and consequently, CPH assumes no responsibility for the location of below grade utilities. The OWNER/CLIENT agrees to release CPH from any liability to OWNER/CLIENT for the failure to locate any existing utility where its physical location could not have reasonably been known based on the above. Termination The obligation to provide further services under this Agreement, may be terminated by either party upon fifteen (15) days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of the Agreement through no fault of the terminating party. If the Agreement is terminated during prosecution of the services and prior to the completion of services, CPH shall be compensated by the OWNER/CLIENT for all services performed under this Agreement to the date of termination. In addition, CPH will be paid for all reasonable expenses resulting from such termination. Construction Administration Where construction administration is provided as a part of the basic services as outlined in the Agreement, CPH shall not be required to make exhaustive or continuous on-site inspections, but shall make periodic observations as may be outlined in more detail in the basic Agreement. CPH shall not be responsible for the means, methods, techniques, procedures of construction, or schedules selected by the CONTRACTOR or the safety precautions and programs incident to the work of the CONTRACTOR. CPH will periodically visit the site at intervals outlined in the Agreement to become generally familiar with the progress of the work to keep the Owner advised of the work. CPH will observe the work of the CONTRACTOR to endeavor to determine if the work is in general conformance with the project documents. CPH shall not be responsible for the failure of the CONTRACTOR to perform the construction work in accordance with the Documents. CPH shall provide the OWNER/CLIENT with written notice of any uncorrected defects or deficiencies coming to its attention in the course of the periodic visits above-mentioned. During such visits and on the basis of its on-site observations, CPH may recommend to the OWNER that the CONTRACTOR's work be disapproved or rejected as failing to conform to the Documents. CPH shall not have the right or duty to stop the CONTRACTOR's work. Professional Services Provided by Others Surveying, soils, planning, architecture, landscape architecture, legal, accounting, construction inspection and other services may be provided by the OWNER/CLIENT or others on this project and the results furnished to CPH. It is agreed that CPH may rely upon the results of those services by others in performing its work without verification of same. CPH assumes no responsibility for the accuracy or technical adequacy of such professional services provided by others. Exhibit A Page 2 of 5 CPH, Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 1 6 I 1 A 5 Agenda Page#30 CPH's Approval for Payment Approval of a CONTRACTOR's application for payment is an expression of opinion by CPH and shall at no time be considered as legal obligation on the part of CPH. Neither shall same be considered as an acceptance of any work or materials furnished. CPH's approval for payment is an expression of opinion by CPH that to the best of our knowledge, information and belief, the quality of the work included for payment is in general accordance with the Contract Documents (subject to an evaluation of the work as a functioning improvement upon substantial completion and to the results of any subsequent tests or inspection made). By approving an application for payment, CPH will not be deemed to have represented that we have made any examination of how or for what purpose any CONTRACTOR has used the money paid on any of the CONTRACTOR's work or that title to any of the CONTRACTOR's work, materials or equipment has passed to the OWNER/CLIENT, free and clear of any liens, claims, security interests or encumbrances. Checking of Shop Drawings Checking of shop drawings is only for general conformance with the design concept of the project and general compliance with the information given in the Contract Documents. Any action shown is subject to the requirements of the Plans and Specifications. It is the CONTRACTOR's responsibility and not that of the CPH, for dimensions which shall be confirmed and correlated at the job site; fabrication processes and techniques of construction; coordination of his work with that of all other trades and the satisfactory performance of his work. Pre-existing Contaminants CPH shall not be considered a generator, transporter, or disposer of materials affected by regulated contaminants. Because involvement with OWNER/CLIENT's contaminated substances can expose CPH to severe risks, OWNER/CLIENT shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless from any claim or liability for injury or loss allegedly arising from CPH's involvement with OWNER/CLIENT's contaminated substances. OWNER/CLIENT shall also compensate CPH for any time spent or expense incurred by CPH in defense of any such claim. Such compensation shall be based on CPH's prevailing fee schedule and expense reimbursement policy. Site Safety Responsibilities CPH's site responsibilities are limited solely to the activities of CPH and CPH's employees on the site. These responsibilities shall not be inferred by any party to mean that CPH has responsibility for site safety for any reason. Safety in, on, or about the site is the sole and exclusive responsibility of the Contractor alone. The Contractor's methods of work performance, superintendence of the contractor's employees and subcontractors, and sequencing of construction are also the sole and exclusive responsibility of the Contractor alone. OWNER/CLIENT warrants that:1) these responsibilities will be made clear in OWNER/CLIENT's agreement with the Contractor; 2) OWNER/CLIENT's agreement with the Contractor shall require the Contractor, to the extent of Contractor's negligence, to indemnify, defend, and hold OWNER/CLIENT and CPH harmless up to a limit of $1,000,000 from any fine, penalty, claim, or liability for injury or loss arising from OWNER/CLIENT'S or CPH's alleged failure to exercise site safety responsibility; and 3) OWNER/CLIENT's agreement with the Contractor shall require the Contractor to make OWNER/CLIENT and CPH additional insureds under the Contractor's general liability insurance policy, which insurance protection shall be primary protection for OWNER/CLIENT and CPH, and shall hold OWNER/CLIENT and CPH harmless from claims, losses, and defense cost arising from the negligence of contractor or subcontractor on any tier up to a limit of $1,000,000. Given the foregoing, OWNER/CLIENT also shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless up to a limit of$1,000,000 from any claim or liability for injury or loss arising from CPH's alleged failure to exercise site safety responsibility. OWNER/CLIENT also shall compensate CPH for any time spent and attorney fees and expenses incurred by CPH in defense of any such claim. Such compensation shall be based upon CPH's prevailing fee schedule and expense reimbursement policy. (The term "any claim" above referenced shall include, but not limited to, any claim for breach of contract, tort, or statute alleging negligence, errors, omissions, strict liability, statutory liability, breach of warranty, negligent misrepresentation, or other acts giving rise to liability.) Exhibit A Page 3 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer I 6 1 1A5 Agenda Page#31 Governing Law,Venue,Jurisdiction This instrument is to be interpreted and construed according to the laws of the State of Florida. It is agreed between the parties to this contract that any litigation, lawsuit or court action of any character arising from this agreement shall be filed and/or defended in Seminole County, Florida. All parties under this contract hereby voluntarily submit to the exclusive jurisdiction of the Florida Courts and the exclusive venue in Seminole County, Florida and do hereby waive any objections to either personal or subject matter jurisdiction of the Florida Courts or to said venue. Attorney Fees and Costs In connection with any dispute arising out of this Contract, each party shall be responsible for their own attorney's fees and costs incurred for services rendered in connection with such dispute, including appellate proceedings and post judgment proceedings. Waiver of Consequential Damages OWNER/CLIENT and CPH mutually agree to waive all claims for consequential damages against each other an each other's respective officers, directors, and employees from any and all claims arising out of the project, including, but not limited to, loss of use, lost profits, and delay damages, against each other, arising from disputes, claims, or other matters relating to this Agreement. Delay In Performance Neither the OWNER/CLIENT nor CPH shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. Such circumstances shall include, but are not limited to, abnormal weather conditions, floods, earthquakes, fire, epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and delay in or inability to procure permits, licenses, and authorizations from any local, state or federal agency; for any supplies, materials, accesses, or services required to be provided by either the OWNER/CLIENT or CPH under this Agreement. A reasonable extension of time for delay in performance caused by any such circumstances shall be granted. Should such circumstances occur the non-performing party shall within a reasonable time of being prevented from performing give written notice to the other party describing the circumstances preventing continued performance and efforts being made to resume performance under this Agreement. Project Development, Approvals and Scheduling CPH will, in the course of its work, attempt to generally identify issues that would adversely affect the development of the site for use as proposed by the Owner/Developer. However, CPH cannot control the regulatory process, actions of others, or unforeseen conditions and does not guarantee that the project can be developed for use as proposed, nor does CPH guarantee the timing of or ultimate regulatory approval of the site for development as proposed. The local, state, and federal entities and authorities ("Authorities") having jurisdiction over the project may or may not approve the proposed use of the project. Additionally, it is uncertain how long those Authorities will take to consider and to take action on the applications for the proposed use of the project. Said decisions and approvals are subject to the decision making process of those Authorities. Therefore, CPH cannot represent or guarantee that said Authorities will approve, in whole or in part, the requested use of the project or that the decision making process will be timely for the project's use, or that the Authorities will grant variances applicable to the project. Therefore, the OWNER/CLIENT bears the risk of non-approval of the proposed use and the timing thereof. The OWNER/CLIENT needs to consider the ramifications to it if the project is not approved or only approved in part. Exhibit A Page 4 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer - 6l1A5 Agenda Page#32 Limitation of Liability: Site Check Studies OWNER/CLIENT acknowledges that CPH's Site Check Studies pursuant to this Agreement are general in nature and are performed before design is started or completed. OWNER/CLIENT acknowledges the recommendation of CPH that the OWNER/CLIENT should not close on the subject property unless and until all applicable agency approvals are obtained and the permitting process is completed. If OWNER/CLIENT elects to close on the subject property prior to that time, OWNER/CLIENT accepts all risks and liability arising from closing prior to obtaining all applicable agency approvals and completion of the permitting process and releases CPH and CPH's officers, directors, and employees from all claims thereof. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity relating to CPH's Site Check Studies under this contract such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee for the Site Check Study paid by OWNER/CLIENT to CPH under this Agreement or$10,000, whichever is greater. Design And Other Professional Services OWNER/CLIENT acknowledges that CPH's services pursuant to this Agreement are to assist the client and are for the scope of services as outlined in the attached contract. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity, such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee paid by OWNER/CLIENT to CPH under this Agreement or$50,000, whichever is greater. PURSUANT TO FLORIDA STATUTE 558.0035, DESIGN PROFESSIONALS; CONTRACTUAL LIMITATION ON LIABILITY - AN INDIVIDUAL EMPLOYEE OR AGENT MAY NOT BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE Construction Defects on Florida Projects ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES Exhibit A Page 5 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer c p a V I •tland/AINN003001531dtli y . ^ , ® ,I..! ..€ aa G.ie 0o 1'yWse t! aa3 AaaVllD 3H1 Ilia I °3°�#i f 0 ® 3YY S31111IBISNOdS3a 30NVN31NIVV a ® d$ b 1 a naavno 3H1 x � f - U F ' y � 3' m T a --z—CM g 0 0 ¢ n 0 JQ _ U 0 0 ou o 0 w U 0 O 0 h n 0 0 0 0 0 0 III— ———n - 11111 ,.....\I, _ r =-_--- - =-__-.,__ r- _rill,: f41 )1 PE 1111 P till i 1 x o 11 —/1 )r \\ WW I it �� i .Jl C`� \ 1 i, i ]n ;ilj m ,, it ,. n' ATr if -- --h Mt 41,-- ,, A... -137_, 1. 1. 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'r THE QUARRY CDD LAKE 30 BUOYS COORDINATES i . ► Ag: AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN CPH, INC. AND THE QUARRY COMMUNITY DEVELOPMENT DISTRICT SPECIAL DISTRICT SERVICES, INC. FOR THE QUARRY COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA May 5, 2021 CPH, Inc., Environmental Services (CPH) has prepared a proposal of services and fees to provide certain environmental consultant services for the above referenced project. CPH, Inc. hereinafter known as CPH or CONSULTANT proposes to furnish The Quarry Community Development District (CDD), Special District Services, Inc., hereinafter known as the Client, the professional services described below for the fees stipulated herein. PROJECT DESCRIPTION The Quarry CDD desires to supervise the maintenance efforts to document results of the maintenance contractor's efforts on approximately 860 acres. CPH, Inc. has been requested to provide a proposal to supervise maintenance efforts. SCOPE OF SERVICES BASIC SERVICES 1.0 Maintenance Checks CPH shall perform up to four (4) field inspections to advise the CDD regarding the effectiveness of the maintenance work conducted. CPH shall prepare a memorandum report with accompanying graphic discussing field observations. CPH shall provide the memorandum report within one (1) week of the field inspection. CPH shall conduct the field inspections as the request of the CDD. 1.1 Additional Services Provide other professional and technical services not specifically identified in Section 1.0 a bove. 2.0 COST AND COMPENSATION 2.1 Basic Services Services under Basic Services, Task 1.0 above shall be provided as a Fixed Fee per event of$1,810 for a total of$7,240 for four (4) events. This cost shall not be exceeded without Client authorization. Invoices for Basic Services will be submitted monthly based on percent complete. Proposal to The Quarry Community Development District Special District Services, Inc. Agenda Page#38 May 5, 20of 4 16 11 A 5 Page 2 of 4 2.2 Additional Services Invoices for Additional Services will be provided on an hourly plus expense reimbursement basis. Invoices for Additional Services will be submitted monthly. 3.0 RESPONSIBILITIES OF OTHERS • The Client shall guarantee access to and make provisions for CPH to enter public or private lands as required by CPH to perform their work under this Agreement. • It is understood that CPH, Inc. will perform services under the sole direction of the Client or his designated representative. In the performance of these services, CPH will coordinate its efforts with those of other project team members and consultants as required. The Client shall provide CPH with all project related information available including the existing land plan, property legal description, title work, boundary and topographic surveys, geotechnical investigation reports, etc. CPH will rely upon the accuracy and completeness of all Client furnished information in connection with the performance of services under this agreement. 4.0 SERVICES NOT INCLUDED The following services are not anticipated and, therefore, not included in this Agreement at this time: y- Environmental studies and coordination of environmental issues with the regulatory agencies. • Agency Coordination Permitting y- Review of an alternative product in lieu of the product called for on the plans and specifications • Services resulting from changes made by client following the completion of specific project tasks that require re-work by CPH ✓ Special meetings with agencies, other consultants or Client not normally required to perform the work described in the Scope of Services, except those meetings specifically identified in the above Scope of Work. ✓ Phase II and remediation ✓ Any other issues not specifically described in this proposal Should work be required in any of these areas, or areas not previously described, CPH will prepare a proposal or amendment, at the CLIENT's request, that contains the Scope of Services, fee, and schedule required to complete the additional work item. 5.0 SCHEDULE CPH will work expeditiously to complete the scope of services in a timely manner. The estimated completion date from Notice to Proceed is 2 weeks. The schedule may be adjusted if there are weather delays. Proposal to The Quarry Community Development District Special District Services, Inc. Agenda Page#39 May 5, 2021 Page 3 of 4 1 6 I 1 A 5 6.0 AUTHORIZATION Should the agreement be acceptable, please sign, retain a copy for your records, and return a copy to CPH as our notice to proceed. We look forward to working with you on this endeavor. Should you have any questions, please call me at(407) 399-0840. CPH, INC AUTHORIZATION By: Amy E. Daly, LEED AP Title: Vice President/Director of Environmental Services Date: May 5, 2021 CLIENT AUTHORIZATION THE QUARRY CDD, SPECIAL DISTRICT SERVICES, INC. agrees with the Scope of Services, Compensation, and Standard Provisions Exhibit A (attached hereto and acknowledged as being received). Together they constitute the entire Agreement between CPH, INC. and THE QUARRY CDD, SPECIAL DISTRICT SERVICES, INC. The fees for Basic Services proposed herein are estimated at$7,240. It is understood that fees for the subject project, including but not limited to, application fees, impact fees, utility connection fees, review fees, etc., will be paid directly by the CLIENT. Payment for services rendered will be due within forty-five (45) days of invoicing. Should the CLIENT choose to not complete the project at any phase of the project, CPH will be due any fees for services up to the time the CLIENT informs CPH in writing to stop work. Payment for services up to the time of the CLIENT'S notice will be due within thirty (30) days of the final invoice. Invoice payments must be kept current for services to continue. CPH reserves the right to terminate or suspend work when invoices become ninety (90) days past due. In event that the work is suspended or terminated as a result of non-payment, CLIENT agrees that CPH will not be responsible for CLIENT'S failure to meet project deadlines imposed by governments, lenders, or other third parties. Neither is CPH responsible for other adverse consequences as a result of termination or suspension of work for nonpayment of the invoices. Agenda Page#40 Proposal to The Quarry Community Development District Special District Services, Inc. May 5, 2021 Page 4 of 4 1 6 I 1 A 5 This proposal is void if not executed and returned to the CONSULTANT within 60 days of the CONSULTANTS execution of the proposal. By: THE QUARRY CDD, SPECIAL DISTRICT SERVICES, INC. Print Name: Date: Agenda Page#41 EXHIBIT A 1 6 ' 1 A 5 Standard Provisions to Agreement Agreement between The Quarry CDD, Special District Services, Inc. (hereinafter referred to as "OWNER/CLIENT") and CPH, Inc. (hereinafter referred to as "CPH") for professional services which may include engineering, surveying, architecture, landscape architecture, environmental, forestry, planning, transportation/traffic, etc. dated May 5, 2021. Standard of Care CPH will endeavor to provide services in a manner consistent with the level of care and skill ordinarily exercised by other professionals under similar circumstances practicing in the same or similar locality. The standard of care shall be exclusively judged at the time services are rendered and not according to later standards. CPH makes no express or implied warranty with regard to its services. Compensation.Out of Pocket and Subcontract Expenses "Compensation" as used in the Agreement includes those costs which are connected with the conditions of employment and pay of the employees and include salaries of those employees directly engaged in the performance of the requested services and employer contributions for social security, workers compensation, unemployment and payroll taxes, medical and insurance benefits, retirement benefits, holiday and sick leave pay and other allowed benefits. "Out of Pocket Expenses" as used in the Agreement include such items as travel and subsistence, printing and reproduction, telephone/communications charges, freight, postage, computer and similar costs. "Subcontract Expenses" as used in this Agreement include subcontracts for special consultants such as licensed land surveyors, soils borings and geotechnical and geohydrological services, laboratory services, environmental scientist services and other professional scientific or technical service organizations. Invoice payments are due upon receipt of the invoice and must be kept current for services to continue. Payment should be mailed to CPH, Inc. at 500 West Fulton Street, Sanford, FL 32771. If the OWNER/CLIENT fails to pay any invoice due within 45 days of the date of the invoice, CPH may, without waiving any other claim or right against OWNER/CLIENT, suspend services under this agreement until CPH has been paid in full all amounts due CPH and/or any of its consultants and subconsultants. OWNER/CLIENT shall pay CPH interest at 12% per annum on all invoices that remain unpaid for more than 45 days. Additional Services "Additional Services" of CPH are services which are not considered normal or customary basic services, except to the extent provided in the basic Agreement, and may include such items as preparation of grant or funding applications and supporting documents; additional services or costs resulting from significant changes in the scope or extent of the project or its design or project delays; providing renderings or models for the OWNER/CLIENT's use; preparing documents for alternate bids; furnishing the services of special consultants; resident project representation or resident inspection; services resulting from the award of additional separate contracts; special field surveys; reproducible Record Drawings or original Drawings; providing "as-built" drawings; additional services during construction; serving as a consultant or witness for the OWNER/CLIENT during any litigation, public hearing, etc.; and services normally furnished by the OWNER/CLIENT; or other services not otherwise specifically provided for in the Agreement. Additional services are not included in the basic payment provisions of the Agreement except to the extent specifically provided herein. Opinions of Cost Since CPH has no control over the cost of labor, materials, equipment or services furnished by others, or over the CONTRACTOR(s)' methods of determining prices, or over competitive bidding or market conditions, our opinions of probable project cost and construction cost are made on the basis of our experience and qualifications and represent our best judgment as an experienced and qualified professional, familiar with the construction industry; Exhibit A Page 1 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer Agenda Page#42 1 6 I 1 A 5 but CPH cannot and does not guarantee that proposals, bids, or actual project costs or construction costs will not vary from opinions of probable cost prepared by us. Use of Documents All documents including Drawings and Specifications prepared by CPH pursuant to this Agreement belong to CPH and are instruments of our service in respect to the project. They are not intended or represented to be suitable for reuse by the OWNER/CLIENT on another project or any extension of this project, or for use by others on this project, any extension, or any other project. Rights to use of the documents by Owner/Client shall terminate in the event that Owner/Client fails to pay invoices as outlined herein. Underground Utilities and Structures The locations of all existing utilities shown on the drawings prepared by CPH will be based on surveys of at-grade or above grade physical culture (such as valve boxes, hydrants, utility poles, permanent markers) and surveying to pick up temporary utility locate markings provided by the utility. CPH assumes no responsibility for the accuracy of utilities shown by temporary markings provided by the utility or the locations of utilities based on other non-physical features (such as plans prepared by others including mark-ups of locations provided by the utility). The below grade vertical and horizontal locations of utilities will not be required to be surveyed by CPH, and consequently, CPH assumes no responsibility for the location of below grade utilities. The OWNER/CLIENT agrees to release CPH from any liability to OWNER/CLIENT for the failure to locate any existing utility where its physical location could not have reasonably been known based on the above. Termination The obligation to provide further services under this Agreement, may be terminated by either party upon fifteen (15) days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of the Agreement through no fault of the terminating party. If the Agreement is terminated during prosecution of the services and prior to the completion of services, CPH shall be compensated by the OWNER/CLIENT for all services performed under this Agreement to the date of termination. In addition, CPH will be paid for all reasonable expenses resulting from such termination. Construction Administration Where construction administration is provided as a part of the basic services as outlined in the Agreement, CPH shall not be required to make exhaustive or continuous on-site inspections, but shall make periodic observations as may be outlined in more detail in the basic Agreement. CPH shall not be responsible for the means, methods, techniques, procedures of construction, or schedules selected by the CONTRACTOR or the safety precautions and programs incident to the work of the CONTRACTOR. CPH will periodically visit the site at intervals outlined in the Agreement to become generally familiar with the progress of the work to keep the Owner advised of the work. CPH will observe the work of the CONTRACTOR to endeavor to determine if the work is in general conformance with the project documents. CPH shall not be responsible for the failure of the CONTRACTOR to perform the construction work in accordance with the Documents. CPH shall provide the OWNER/CLIENT with written notice of any uncorrected defects or deficiencies coming to its attention in the course of the periodic visits above-mentioned. During such visits and on the basis of its on-site observations, CPH may recommend to the OWNER that the CONTRACTOR's work be disapproved or rejected as failing to conform to the Documents. CPH shall not have the right or duty to stop the CONTRACTOR's work. professional Services Provided by Others Surveying, soils, planning, architecture, landscape architecture, legal, accounting, construction inspection and other services may be provided by the OWNER/CLIENT or others on this project and the results furnished to CPH. It is agreed that CPH may rely upon the results of those services by others in performing its work without verification of same. CPH assumes no responsibility for the accuracy or technical adequacy of such professional services provided by others. Exhibit A Page 2 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 1 6 I 1 A 5 Agenda Page#43 CPH's Aooroval for Payment Approval of a CONTRACTOR's application for payment is an expression of opinion by CPH and shall at no time be considered as legal obligation on the part of CPH. Neither shall same be considered as an acceptance of any work or materials furnished. CPH's approval for payment is an expression of opinion by CPH that to the best of our knowledge, information and belief, the quality of the work included for payment is in general accordance with the Contract Documents (subject to an evaluation of the work as a functioning improvement upon substantial completion and to the results of any subsequent tests or inspection made). By approving an application for payment, CPH will not be deemed to have represented that we have made any examination of how or for what purpose any CONTRACTOR has used the money paid on any of the CONTRACTOR's work or that title to any of the CONTRACTOR's work, materials or equipment has passed to the OWNER/CLIENT, free and clear of any liens, claims, security interests or encumbrances. Checkina of Shoo Drawings Checking of shop drawings is only for general conformance with the design concept of the project and general compliance with the information given in the Contract Documents. Any action shown is subject to the requirements of the Plans and Specifications. It is the CONTRACTOR's responsibility and not that of the CPH,for dimensions which shall be confirmed and correlated at the job site; fabrication processes and techniques of construction; coordination of his work with that of all other trades and the satisfactory performance of his work. pre-existina Contaminants CPH shall not be considered a generator, transporter, or disposer of materials affected by regulated contaminants. Because involvement with OWNER/CLIENT's contaminated substances can expose CPH to severe risks, OWNER/CLIENT shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless from any claim or liability for injury or loss allegedly arising from CPH's involvement with OWNER/CLIENT's contaminated substances. OWNER/CLIENT shall also compensate CPH for any time spent or expense incurred by CPH in defense of any such claim. Such compensation shall be based on CPH's prevailing fee schedule and expense reimbursement policy. Site Safety Responsibilities CPH's site responsibilities are limited solely to the activities of CPH and CPH's employees on the site. These responsibilities shall not be inferred by any party to mean that CPH has responsibility for site safety for any reason. Safety in, on, or about the site is the sole and exclusive responsibility of the Contractor alone. The Contractor's methods of work performance, superintendence of the contractor's employees and subcontractors, and sequencing of construction are also the sole and exclusive responsibility of the Contractor alone. OWNER/CLIENT warrants that:1) these responsibilities will be made clear in OWNER/CLIENT's agreement with the Contractor; 2) OWNER/CLIENT's agreement with the Contractor shall require the Contractor, to the extent of Contractor's negligence, to indemnify, defend, and hold OWNER/CLIENT and CPH harmless up to a limit of $1,000,000 from any fine, penalty, claim, or liability for injury or loss arising from OWNER/CLIENT'S or CPH's alleged failure to exercise site safety responsibility; and 3) OWNER/CLIENT's agreement with the Contractor shall require the Contractor to make OWNER/CLIENT and CPH additional insureds under the Contractor's general liability insurance policy, which insurance protection shall be primary protection for OWNER/CLIENT and CPH, and shall hold OWNER/CLIENT and CPH harmless from claims, losses, and defense cost arising from the negligence of contractor or subcontractor on any tier up to a limit of $1,000,000. Given the foregoing, OWNER/CLIENT also shall, to the fullest extent permitted by law, waive any claim against CPH, and indemnify, defend, and hold CPH harmless up to a limit of$1,000,000 from any claim or liability for injury or loss arising from CPH's alleged failure to exercise site safety responsibility. OWNER/CLIENT also shall compensate CPH for any time spent and attorney fees and expenses incurred by CPH in defense of any such claim. Such compensation shall be based upon CPH's prevailing fee schedule and expense reimbursement policy. (The term "any claim" above referenced shall include, but not limited to, any claim for breach of contract, tort, or statute alleging negligence, errors, omissions, strict liability, statutory liability, breach of warranty, negligent misrepresentation, or other acts giving rise to liability.) Exhibit A Page 3 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 1 6 I 1 A 5 Agenda Page#44 Governing Law.Venue.Jurisdiction This instrument is to be interpreted and construed according to the laws of the State of Florida. It is agreed between the parties to this contract that any litigation, lawsuit or court action of any character arising from this agreement shall be filed and/or defended in Seminole County, Florida. All parties under this contract hereby voluntarily submit to the exclusive jurisdiction of the Florida Courts and the exclusive venue in Seminole County, Florida and do hereby waive any objections to either personal or subject matter jurisdiction of the Florida Courts or to said venue. Attorney Fees and Costs In connection with any dispute arising out of this Contract, each party shall be responsible for their own attorney's fees and costs incurred for services rendered in connection with such dispute, including appellate proceedings and post judgment proceedings. Waiver of Conseauential Damaaes OWNER/CLIENT and CPH mutually agree to waive all claims for consequential damages against each other an each other's respective officers, directors, and employees from any and all claims arising out of the project, including, but not limited to, loss of use, lost profits, and delay damages, against each other, arising from disputes, claims, or other matters relating to this Agreement. Delay In Performance Neither the OWNER/CLIENT nor CPH shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. Such circumstances shall include, but are not limited to, abnormal weather conditions, floods, earthquakes, fire, epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and delay in or inability to procure permits, licenses, and authorizations from any local, state or federal agency; for any supplies, materials, accesses, or services required to be provided by either the OWNER/CLIENT or CPH under this Agreement. A reasonable extension of time for delay in performance caused by any such circumstances shall be granted. Should such circumstances occur the non-performing party shall within a reasonable time of being prevented from performing give written notice to the other party describing the circumstances preventing continued performance and efforts being made to resume performance under this Agreement. Project Development.Approvals and Scheduling CPH will, in the course of its work, attempt to generally identify issues that would adversely affect the development of the site for use as proposed by the Owner/Developer. However, CPH cannot control the regulatory process, actions of others, or unforeseen conditions and does not guarantee that the project can be developed for use as proposed, nor does CPH guarantee the timing of or ultimate regulatory approval of the site for development as proposed. The local, state, and federal entities and authorities ("Authorities") having jurisdiction over the project may or may not approve the proposed use of the project. Additionally, it is uncertain how long those Authorities will take to consider and to take action on the applications for the proposed use of the project. Said decisions and approvals are subject to the decision making process of those Authorities. Therefore, CPH cannot represent or guarantee that said Authorities will approve, in whole or in part, the requested use of the project or that the decision making process will be timely for the project's use, or that the Authorities will grant variances applicable to the project. Therefore, the OWNER/CLIENT bears the risk of non-approval of the proposed use and the timing thereof. The OWNER/CLIENT needs to consider the ramifications to it if the project is not approved or only approved in part. Exhibit A Page 4 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 1 6 I 1 A 5 Agenda Page#45 Limitation of Liability: Site Check Studies OWNER/CLIENT acknowledges that CPH's Site Check Studies pursuant to this Agreement are general in nature and are performed before design is started or completed. OWNER/CLIENT acknowledges the recommendation of CPH that the OWNER/CLIENT should not close on the subject property unless and until all applicable agency approvals are obtained and the permitting process is completed. If OWNER/CLIENT elects to close on the subject property prior to that time, OWNER/CLIENT accepts all risks and liability arising from closing prior to obtaining all applicable agency approvals and completion of the permitting process and releases CPH and CPH's officers,directors, and employees from all claims thereof. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity relating to CPH's Site Check Studies under this contract such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee for the Site Check Study paid by OWNER/CLIENT to CPH under this Agreement or$10,000, whichever is greater. Desian And Other Professional Services OWNER/CLIENT acknowledges that CPH's services pursuant to this Agreement are to assist the client and are for the scope of services as outlined in the attached contract. In order to allocate the relative risks and benefits of the project between the parties, the OWNER/CLIENT agrees to limit the liability of CPH and CPH's officers, directors, and employees for any and all claims arising from CPH's or CPH's officers', directors', and employees' professional acts, negligence, errors, omissions, breach of this contract, or indemnity, such that the total aggregate liability of CPH and CPH's officers, directors, and employees to the OWNER/CLIENT shall not exceed the fee paid by OWNER/CLIENT to CPH under this Agreement or$50,000,whichever is greater. PURSUANT TO FLORIDA STATUTE 558.0035, DESIGN PROFESSIONALS; CONTRACTUAL LIMITATION ON LIABILITY - AN INDIVIDUAL EMPLOYEE OR AGENT MAY NOT BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE Construction Defects on Florida Projects ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES Exhibit A Page 5 of 5 CPH,Inc.-FL Rev 6/2013 Owner/Client Initials CPH is an Equal Opportunity/Affirmative Action Employer 161 1 A 5 Agenda Page#46 Rates & Reimbursables Exhibit B CPH STANDARD RATES CPH STANDARD RATES Category Rate Category Rate Principal $190 Principal Landscape Architect $170 Senior Project Manager $180 Senior Landscape Architect $140 Project Manager $160 Landscape Architect $105 Senior Project Engineer $140 Senior Landscape Designer $100 Project Engineer $120 Landscape Designer $85 Principal Traffic Engineer $180 Project Coordinator $90 Senior Traffic Engineer $135 Traffic Engineer $120 Senior Project Designer $135 Traffic Analyst $115 Project Designer $115 Senior Design Technician $105 Principal Environmental Scientist $175 Design Technician $95 Senior Environmental Scientist $135 CADD Technician $75 Lead Environmental Scientist $105 Environmental Scientist $95 Administrative GIS Analyst $105 $70 Clerical $60 Arborist $125 Network Admin.(I) $80 Principal Planner $170 Senior Planner $140 Senior Construction Manager $120 Planner $100 Construction Manager $105 Construction Field Representative II $110 Principal Architect $180 Construction Field Representative I $80 Senior Architect $160 Architect $140 Principal Surveyor $170 Senior Architectural Manager $130 Senior Professional Surveyor $130 Architectural Manager $125 Professional Surveyor and Mapper $125 Senior Architectural Designer $120 Field Technician/Designer $105 Architectural Designer $105 Surveyor in Training $100 Interior Designer $115 Survey Project Manager/CADD $120 Architectural CADD Technician $85 Field Crew Coordinator $110 Survey Party Chief $85 Principal Structural Engineer $180 Survey Instrument Man $70 Senior Structural Engineer $150 Senior Survey CADD Technician $110 Structural Engineer $120 Survey CADD Technician $75 Survey Crew(2 Man) $155 Principal MEP Engineer $180 Survey Crew(Construction Staking-2 Mani$180 Senior MEP Project Engineer $155 Survey Crew(3 Man) $225 MEP Project Engineer $125 GPS(1 Man)/Robotics $145 GPS(2 Man) $180 Senior Graphic Designer $140 1 Man Scanner/Laser Survey Crew $265 Graphic Designer $80 2 Man Scanner/Laser Survey Crew $290 Schedule of Reimbursable Charges USB/Thumb Drive Plots(B&W) Mileage At Current IRS $15.00 Each 11 X 17 $0.21 Each Rates Copies(B&W) 12 X 18 $0.24 Each Phone At Cost 8.5 x 11 15 X 21 Postage At Cost $O.OS Each $0.35 Each Outside Reimbursables At Cost 8.5 x 14 $0.10 Each 34 X 22 $0.83 Each 11 x 17 $0.20 Each 24 X 36 $0.96 Each 30 X 42 $ 1.42 Each Copies(Color) 36 X 48 8.5 x 11 $1.92 Each $0.25 Each Billing and Reimbursable 8.5 x 14 $0.30 Each Rates Are Subject To Periodic 11 x 17 $0.35 Each Review and Adjustment. Plots(Color/Bond) Updated:October 9,2019 Mylars 24 x 36 $24.00 Each 24 x 36 $9.00 Each 30 x 42 $35.00 Each 32 x 42 $13.00 Each 36 x 48 $48.00 Each oal <Q}}} , H h ~ ct /' ° 2 .'I 1A5 j ` �a }z�: k8% \- o ° 2LU j z t Z% %/. 0 . & 3 4 )) . /9 : < )} } ,, / } , y'' t •Pill | , / )] 2 ! §( . \\ . u_w0 2/( ` F/§ �� 'S \/ } }/§ ry 4\ /. }j® % E\§ % }j . k \ ¥ \\ .;-I / ` o§ /\ - r, \� / \ /\ W : a - `~ _/2•\j S \ )§ (§ L /i (I) ! /< k/ ., 6 _ �; ` « <j i a - § a G, = , - \ % as^ ^ .-1- y }� L. \ /( \ \\\ !§r { '- \ \ \ op \ . j \ m a±&c.+a 0 $ co 0 16I1A5 Agenda Page#61 The Quarry Community Development District Financial Report April 30,2021 INFRAMARK THE QUARRY Agendalag662 j 1 A 5 Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet-All Funds Page 1 Statement of Revenues, Expenditures and Changes in Fund Balance General Fund Pages 2-3 Debt Service Fund Page 4 Trend Report-General Fund Pages 5-6 Notes to the Financial Statements Page 7 SUPPORTING SCHEDULES Special Assessments-Collection Schedule Page 8 Cash and Investment Report Page 9 Bank Reconciliation Page 10 QCA Lawsuit Page 11 Payment Register by Bank Account Page 12 Agenda Page#63 1 6 I 1A5 The Quarry Community Development District Financial Statements (Unaudited) April 30, 2021 The QUARRY Agenda Page#64 Community Development District Governmental Funds Balance Sheet 1 6 1 1 A 5 April 30, 2021 204-SERIES 2020 DEBT GENERAL SERVICE ACCOUNT DESCRIPTION FUND FUND TOTAL ASSETS Cash-Checking Account $ 459,651 $ - $ 459,651 Allow-Doubtful Accounts (829) (2,940) (3,769) Assessments Receivable 829 2,940 3,769 Due From Other Gov't! Units 214 - 214 Due From Other Funds - 38,699 38,699 Investments: Money Market Account 96,299 - 96,299 Revenue Fund - 1,436,103 1,436,103 TOTAL ASSETS $ 556,164 $ 1,474,802 $ 2,030,966 LIABILITIES Accounts Payable $ 429 $ - $ 429 Accrued Expenses 11,910 - 11,910 Due To Other Funds 38,699 - 38,699 TOTAL LIABILITIES 51,038 - 51,038 FUND BALANCES Restricted for: Debt Service - 1,474,802 1,474,802 Unassigned: 505,126 - 505,126 TOTAL FUND BALANCES $ 505,126 $ 1,474,802 $ 1,979,928 TOTAL LIABILITIES&FUND BALANCES $ 556,164 $ 1,474,802 $ 2,030,966 Page 1 The QUARRY Agenda Page#65 Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances 1 6 I 1 A 5 For the Period Ending April 30, 2021 ANNUAL YTD ACTUAL ADOPTED YEAR TO DATE AS A%OF APR-21 ACCOUNT DESCRIPTION BUDGET ACTUAL ADOPTED BUD ACTUAL REVENUES Interest-Investments $ 400 $ 150 37.50% $ 16 Golf Course Revenue 18,000 - 0.00% - Interest-Tax Collector - 239 0.00% 32 Special Assmnts-Tax Collector 579,497 574,909 99.21% 11,854 Special Assmnts-Discounts (23,180) (21,510) 92.80% 68 Other Miscellaneous Revenues 40,000 3,000 7.50% - TOTAL REVENUES 614,717 556,788 90.58% 11,970 EXPENDITURES Administration P/R-Board of Supervisors 12,000 5,200 43.33% 800 FICA Taxes 918 398 43.36% 61 ProfServ-Arbitrage Rebate 600 - 0.00% - ProfServ-Engineering 45,000 13,515 30.03% 2,996 ProfServ-Legal Services 30,000 6,297 20.99% 1,546 ProfServ-Legal Litigation 25,000 27,387 109.55% 12,391 ProfServ-Mgmt Consulting Sery 57,000 33,250 58.33% 4,750 ProfServ-Other Legal Charges - 4,269 0.00% 210 ProfServ-Property Appraiser 8,000 14,453 180.66% - ProfServ-Trustee Fees 9,000 7,189 79.88% - ProfServ-Consultants 20,000 5,000 25.00% - Auditing Services 4,900 - 0.00% - Contract-Website Hosting 1,550 - 0.00% - Website Compliance 1,515 1,164 76.83% 388 Postage and Freight 750 687 91.60% 6 Insurance-General Liability 6,655 6,064 91.12% - Printing and Binding 750 273 36.40% 31 Legal Advertising 4,000 350 8.75% - Miscellaneous Services 2,000 - 0.00% - Misc-Bank Charges 50 247 494.00% 19 Misc-Special Projects 20,000 2,500 12.50% 2,500 Misc-Assessmnt Collection Cost 11,590 11,068 95.50% 238 Misc-Contingency 1,000 1,591 159.10% - Office Supplies 800 - 0.00% - Annual District Filing Fee 175 175 100.00% - Total Administration 263,253 141,077 53.59% 25,936 Page 2 The QUARRY Agenda Page#66 Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances I For the Period Ending April 30, 2021 A 5 ANNUAL YTD ACTUAL ADOPTED YEAR TO DATE AS A%OF APR-21 ACCOUNT DESCRIPTION BUDGET ACTUAL ADOPTED BUD ACTUAL Field Contracts-Preserve Maintenance - 25,958 0.00% 25,958 Lake&Preserve Maintenance 140,000 59,654 42.61% 5,417 Miscellaneous Maintenance 111,464 4,720 4.23% 4,720 Capital Projects 50,000 - 0.00% - Total Field 301,464 90,332 29.96% 36,095 Reserves Reserve-Other 50,000 - 0.00% - Total Reserves 50,000 - 0.00% - TOTAL EXPENDITURES&RESERVES 614,717 231,409 37.64% 62,031 Excess(deficiency)of revenues Over(under)expenditures - 325,379 0.00% (50,061) Net change in fund balance $ - $ 325,379 0.00% $ (50,061) FUND BALANCE,BEGINNING(OCT 1,2020) 179,747 179,747 FUND BALANCE,ENDING $ 179,747 $ 505,126 Page 3 The QUARRY Agenda Page#67 Community Development District 204-Series 2020 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances 1 6 I 1 A 5 For the Period Ending April 30, 2021 ANNUAL YTD ACTUAL ADOPTED YEAR TO DATE AS A% APR-21 ACCOUNT DESCRIPTION BUDGET ACTUAL ADOPTED BUD ACTUAL REVENUES Interest-Investments $ - $ 15 0.00% $ 6 Special Assmnts-Tax Collector - 235,786 0.00% 39,265 Special Assmnts- Discounts - (4,561) 0.00% 224 TOTAL REVENUES - 231,240 0.00% 39,495 EXPENDITURES Administration Misc-Assessmnt Collection Cost - 4,625 0.00% 790 Total Administration - 4,625 0.00% 790 Debt Service Cost of Issuance - 274,006 0.00% - Total Debt Service - 274,006 0.00% - TOTAL EXPENDITURES - 278,631 0.00% 790 Excess (deficiency) of revenues Over(under)expenditures - (47,391) 0.00% 38,705 OTHER FINANCING SOURCES (USES) Interfund Transfer- In - 1,244,820 0.00% - Proceeds of Refunding Bonds - 277,373 0.00% - TOTAL FINANCING SOURCES (USES) - 1,522,193 0.00% - Net change in fund balance $ - $ 1,474,802 0.00% $ 38,705 FUND BALANCE, BEGINNING (OCT 1, 2020) - - FUND BALANCE, ENDING $ - $ 1,474,802 Page 4 a - 000 e u, eo . ° 000 ° oo . 00 oO . oO � - g 1A5 -o o o co 00 o m co o co m o o rn o o o coo ua co Lo II o g ' r o o o 0 0 0 • o 0 0 o o o o o 0 0 0 0 0 0 ^ CO o a co o o o 0 0 o po 0 0 0 0 v> in o 0o u-, o o v� CM v o v o r o rn co 0 0 0 0 0 o rn zn n co r o 0 o coo N. co 0 9 r co: O .or- R 00, N N m O. 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N w c . . y Q Q CO a W o L_ ;D 2 2 2 2 N O y N q) 0 a J ._ Q ■ ■ ■ J is lb C 0 Cy Q d d 0_ d d C rL rL U E .� > O. d > CC u� s O — H U 1 6I 1A5 Agenda Page#71 The Quarry Community Development District Supporting Schedules April 30, 2021 The QUARRY Agenda Pagi#745 I 1 A 5 Community Development District All Funds Non-Ad Valorem Special Assessments-Collier County Tax Collector (Monthly Collection Distributions) For the Fiscal Year Ending September 30,2021 ALLOCATION BY FUND Discount/ Gross Series 2015 Series 2018 Series 2019 Series 2020 Date Net Amount (Penalties) Collection Amount General Debt Service Debt Service Debt Service Debt Service Received Received Amount Cost Received Fund Fund Fund Fund Fund Assessments Levied $ 2,498,960 $ 579,501 $ 1,239,461 $ 322,125 $ 357,873 $ - Allocation% 100.00% 23.19% 49.60% 12.89% 14.32% 0.00% Real Estate-Installment 10/29/20 $ 12,923 $ 731 $ 264 $ 13,918 $ 3,227 $ 6,903 $ 1,794 $ 1,993 $ - 12/22/20 1,860 59 38 1,957 454 - - - 1,503 01/22/21 4,724 149 96 4,970 1,152 - - - 3,817 03/22/21 2,872 - 59 2,930 680 - - - 2,251 04/22/21 3,937 (21) 80 3,996 927 - - - 3,069 Real Estate-Current 11/16/20 22,268 947 454 23,669 5,489 11,740 3,051 3,390 - 11/20/20 567,893 24,145 11,590 603,628 139,979 299,394 77,810 86,445 - 11/27/20 622,386 26,462 12,702 661,549 153,411 328,122 85,276 94,740 - 12/10/20 818,188 34,536 16,698 869,422 201,616 431,225 112,072 124,509 - 12/22/20 64,575 2,176 1,318 68,070 15,785 - - - 52,284 01/22/21 95,287 2,795 1,945 100,027 23,196 - - - 76,831 02/19/21 46,743 889 954 48,585 11,267 - - - 37,319 03/22/21 28,570 161 583 29,314 6,798 - - - 22,516 04/22/21 46,446 (270) 948 47,123 10,928 - - - 36,196 TOTAL $2,338,672 $ 92,758 $ 47,728 $ 2,479,158 $ 574,909 $ 1,077,384 $ 280,003 $ 311,076 $ 235,786 %COLLECTED 99.21% 99.21% 86.92% 86.92% 86.92% 0.00% TOTAL OUTSTANDING $ 19,802 $ 4,592 $ 162,077 $ 42,122 $ 46,797 $ (235,786) Note: Assessements collected after 12/21/20 bond refinance will be transferred to Series 2020 Revenue Account at U.S.Bank. Page 8 The QUARRY Agenda Page 6 ! 1 A 5 Community Development District Cash &Investment Report April 30, 2021 ACCOUNT NAME BANK NAME YIELD BALANCE OPERATING FUND Operating-Checking Account Hancock Whitney 0.00% $ 459,651 Public Funds MMA Variance Account BankUnited 0.20% 96,299 DEBT SERVICE AND CAPITAL PROJECT FUNDS Series 2020 Revenue Fund U.S. Bank 0.01% 1,436,103 Subtotal 1,436,103 Total $ 1,992,053 Page 9 The Quarry CDD Agenda Page 746 1 1 A 5 Bank Reconciliation Bank Account No. 3489 Hancock&Whitney Bank General Fund Statement No. 04-21 Statement Date 4/30/2021 GIL Balance(LCY) 459,650.75 Statement Balance 494,022.68 GIL Balance 459,650.75 Outstanding Deposits 0.00 Positive Adjustments 0.00 Subtotal 494,022.68 Subtotal 459,650.75 Outstanding Checks 34,371.93 Negative Adjustments 0.00 Differences 0.00 Ending G/L Balance 459,650.75 Ending Balance 459,650.75 Difference 0.00 Posting Document Document Cleared Date Type No. Description Amount Amount Difference Outstanding Checks 4/21/2021 Payment 8246 PENINSULA IMPROVEMENT CORP. 25,957.50 0.00 25,957.50 4/27/2021 Payment 8251 TIMOTHY B.CANTWELL 184.70 0.00 184.70 4/27/2021 Payment 8252 LLOYD SCHLIEP 184.70 0.00 184.70 4/27/2021 Payment 8253 STANLEY 9.OMLAND 184.70 0.00 184.70 4/27/2021 Payment 8254 DEAN A.BRITT 184.70 0.00 184.70 4/28/2021 Payment 8255 INFRAMARK LLC 4,787.50 0.00 4,787.50 4/28/2021 Payment 8256 INNERSYNC STUDIO,LTD 388.13 0.00 388.13 4/28/2021 Payment 8257 REAL ESTATE ECONOMETRICS 2,500.00 0.00 2,500.00 Total Outstanding Checks 34,371.93 34,371.93 Page 10 The QUARRY Agenia P6e 175 1 A 5 Community Development District QCA Lawsuit April 30, 2021 Date Vendor Inv# Check# Amount Hours Description 2/29/2020 HGS 113982 8081 $ 728.00 2.8 Wes Haber hours 6/30/2020 HGS 116536 8140 156.00 0.6 Wes Haber hours 8/31/2020 HGS 117756 8165 234.00 0.9 Wes Haber hours 9/30/2020 HGS 118420 8187 78.00 0.3 Wes Haber hours 12/30/2020 HGS 119562 8211 156.00 0.6 Wes Haber hours 1/29/2021 HGS 120217 8223 78.00 0.3 Wes Haber hours 3/1/2021 HGS 121097 8242 78.00 0.3 Wes Haber hours Total $ 1,508.00 5.8 Hopping Green Sams 9/4/2020 GFP 113081 8146 700.00 2.5 Michael Traficante hours 10/8/2020 GFP 113350 8161 814.00 2.2 Michael Traficante hours 11/6/2020 GFP 113573 8177 455.00 1.3 Michael Traficante hours 12/7/2020 GFP 113774 8192 1,290.00 4.8 Michael Traficante hours 1/9/2021 GFP 113909 8234 1,500.00 11.5 Michael Traficante hours 4/10/2021 GFP 114541 8241 210.00 0.6 Michael Traficante hours Total $ 4,969.00 22.9 Grant, Fridkin, Pearson Grand Total $ 6,477.00 28.7 Page 11 LOo � o0000 � oo �oyoocoCV � 0 1 6 I 1 A 5 O a 42 N La ozi - N Q CV T au co CO co LO th K CCO 0 Lri E 4") M CO, . co Q CV a w u� w «n w co CO N n # To 0 art 1-- 13) Ca.ct .. 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LA CV CNO CO CO CON CNO CO CO CO CO CON CNO CON CO CV W CO CNO CO U 0 U Y a r Q L' t = r r d, ti t t i t °' d -re ri z t d t c t 2 U U U U U U U U U U U U U U 0 U 0 U 16I 1Ag 17,7 as a' a a a a a fi a 3 r3 a a. a o z z 0 l' t Y a a m o' m o 0 0 _ o o ' o z z Ga - a .. 72 r, n m .. r z Z _ E Igl,',-_ m ❑ >- ma o 0 V z o0 a - a - _g az .. .. . N z a ❑ 2 z 0 ,16 0 o o ' ° g 2 s - 13 a• ' 3 '3 E o Y — — Y > 3 ' 3 1— n 3 ^ 3 - 3 Y - '-` 3 3 r 3 Y _ _ 3 E n_ m ._ u .. m s 0 m e _3 m E E O. u 'a 3 :i t Y — a 3 2 6 — a i' = 6 a z 0. o n 22 r, E > U ` O LL 1 T. z V E;- an Q 0 2 ❑ l7 ❑ Y Y H U' F- ce e Agery1ia P�e i80 r Berger, Toombs, Elam, - Gaines & Frank Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce,Florida 34950 772/461-6120//461-1155 FAX:772/468-9278 April 9, 2021 To the Board of Supervisors Quarry Community Development District Collier County, Florida This letter is intended to communicate certain matters related to the planned scope and timing of our audit of Quarry Community Development District's (the "District") financial statements as of and for the year ending September 30, 2020. Communication Effective two-way communication between our firm and the Board of Supervisors is important to understanding matters related to the audit and developing a constructive working relationship. Your insights may assist us in understanding the District and its environment, identifying appropriate sources of audit evidence and providing information about specific transactions or events. We will discuss with you your oversight of the effectiveness of internal control and any areas where you request additional procedures to be undertaken. We expect that you will communicate to us any matters you consider relevant to the audit in a timely manner. Such matters might include strategic decisions that may significantly affect the nature, timing and extent of audit procedures, your suspicion or detection of fraud, or any concerns you may have about the integrity or competence of senior management. We will communicate to you, in timely manner, any fraud involving senior management and other fraud that causes a material misstatement of the financial statements, instances of noncompliance with laws and regulations that come to our attention (unless they are clearly inconsequential), and disagreements with management and other serious difficulties encountered in performing the audit. We also will communicate to you and to management any significant deficiencies or material weaknesses in internal control that become known to us during the course of the audit. Other matters arising from the audit that are, in our professional judgment, significant and relevant to you in your oversight of the financial reporting process will be communicated to you in writing after the audit. Fort Pierce/Stuart Member AICPA Member AICPA Division for CPA Firms Member FICPA Private Companies practice Section Agenda Page#81 Berger,bombs, Elam, Gaines& Frank 1 b I 1 A 5 C.N4d Pak MIAnts N Board of Supervisors Quarry Community Development District April 9, 2021 Page 2 Independence Our independence policies and procedures are designed to provide reasonable assurance that our firm and its personnel comply with applicable professional independence standards. Our policies address financial interests, business and family relationships, and non-audit services that may be thought to bear on independence. Also, if an immediate family member or close relative of a partner or professional employee is employed by a client in a key position, the incident must be reported and resolved in accordance with firm policy. In addition, our policies restrict certain non-audit services that may be provided by Berger, Toombs, Elam, Gaines, and Frank and require audit clients to accept certain responsibilities in connection with the provision of permitted non-attest services. The Audit Planning Process Our audit approach places a strong emphasis on obtaining an understanding of how your organization functions. This enables us to identify key audit components and tailor our procedures to the unique aspects of your operations. The development of a specific audit plan will begin by meeting with you and with management to obtain an understanding of your organization's objectives, strategies. risks and performance. As part of obtaining an understanding of your organization and its environment, we will obtain an understanding of internal control. We will use this understanding to identify risks of material misstatement, which will provide us with a basis for designing and implementing responses to the assessed risks of material misstatement. We will also obtain an understanding of the users of the financial statements in order to establish an overall materiality level for audit purposes. We will conduct formal discussions among engagement team members to consider how and where your financial statements might be susceptible to material misstatement due to fraud or error. The Concept of Materiality in Planning and Executing the Audit We apply the concept of materiality in both planning and performing the audit; evaluating the effect of identified misstatements on the audit and the effect of uncorrected misstatements, if any, on the financial statements; and forming the opinion in our report on the financial statements, and determining or reporting in accordance with Government Auditing Standards and other compliance reporting requirements. Our determination of materiality is a matter of professional judgment and is affected by our perception of the financial information needs of users of the financial statements. We establish performance materiality at an amount less than materiality for the financial statements as a whole to allow for the risk of misstatements that may not be detected by the audit. We use performance materiality for purposes of assessing the risks of material misstatement and determining the nature, timing and extent of further audit procedures. Agenda Page#82 Berger,Toombs, Elam, 'r' Gaines& Frank ` °°b ` " 1 b I 1 A 5 Board of Supervisors Quarry Community Development District April 9, 2021 Page 3 The Concept of Materiality in Planning and Executing the Audit(Continued) Our assessment of materiality throughout the audit will be based on both quantitative and qualitative considerations. Because of the interaction of quantitative and qualitative considerations, misstatements of a relatively small amount could have a material effect on the current financial statements as well as financial statements of future periods. We will accumulate misstatements identified during the audit, other than those that are clearly trivial. At the end of the audit, we will inform you of all individual uncorrected misstatements aggregated by us in connection with our evaluation of our audit test results. Our Approach to Internal Control Relevant to the Audit Our audit of the financial statements will include obtaining an understanding of internal control sufficient to plan the audit and determine the nature, timing and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal control or identify significant deficiencies or material weaknesses. Our review and understanding of the District's internal control is not undertaken for the purpose of expressing an opinion on the effectiveness of internal control. We will issue a report on internal control related to the financial statements. This report describes the scope of testing of internal control and the results of our tests of internal control. Our report on internal control will include any significant deficiencies and material weaknesses in internal controls of which we become aware of as a result of our understanding and testing of internal controls consistent with the requirements of Government Auditing Standards issued by the Comptroller General of the United States. Timing of the Audit We have scheduled preliminary audit field work for April 2021. Management's adherence to its closing schedule and timely completion of information used by us in performance of the audit is essential to timely completion of the audit. Closing We will be pleased to respond to any questions you have about the foregoing. We appreciate the opportunity to continue to be of service to the District. Agenda Page#83 Berger, &Frank Elam, r Gaines Gated Pubic Aoloweangs 1 6 I 1A5 Board of Supervisors Quarry Community Development District April 9, 2021 Page 4 This communication is intended solely for the information and use of the Board of Supervisors and is not intended to be, and should not be, used by anyone other than this specified party. JAMIAd \lOti7 a& A114)- BERGtrx, TOOMBS, ELAM, GAINES & FRANK J W. GAINES, CPA BEACON LAKES Community Development District Annual Operating and Debt Service Budget Fiscal Year 2022 Modified Tentative Budget (Printed on 6/23121 at 12:26 PM) Prepared by INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES BEACON LAKES 1 6 1 1 A 5 Community Development District Table of Contents Page# OPERATING BUDGET General Fund Summary of Revenues, Expenditures and Changes in Fund Balances 1-2 Budget Narrative 3-6 Exhibit A-Allocation of Fund Balances 7 DEBT SERVICE BUDGETS Series 2003 Summary of Revenues, Expenditures and Changes in Fund Balances 8 Series 2007 Summary of Revenues, Expenditures and Changes in Fund Balances 9 Amortization Schedule 10 Budget Narrative 11 SUPPORTING BUDGET SCHEDULE Comparison of Assessment Rates 12 Annual Operating and Debt Service Budget Fiscal Year 2022 1 6 I 1 A 5 Beacon Lakes Community Development District Operating Budget Fiscal Year 2022 BEACON LAKES ' f A y Community Development District General fi.inu 1 Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Modified Tentative Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU JUNE PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 MAY-2021 SEPT-2021 FY 2021 FY 2022 REVENUES Interest-Investments $20,877 $10,240 $ 7,000 $ 1,863 $ 932 $ 2,795 $ 1,500 Interest-Tax Collector 792 610 . 61 - 61 - Special Assmnts-Tax Collector 791,885 759,787 794,659 756,595 39,248 795,843 795,843 Special Assmnts-Discounts (30,219) (29,117) (31,786) (29,969) - (29,969) (31,834) Other Miscellaneous Revenues 202 3,600 - - - - - TOTAL REVENUES 783,537 745,120 769,873 728,550 40,180 768,730 765,510 EXPENDITURES Administrative ProfServ-Dissemination Agent 1,500 1,500 1,500 - 1,500 1,500 1,500 ProfServ-Engineering 21,291 43,101 23,000 12,019 8,585 20,604 23,000 ProfServ-Legal Services 22,570 24,743 27,700 10,098 7,213 17,311 27,700 ProfServ-Mgmt Consulting Sery 56,348 58,038 59,779 39,853 19,926 59,779 61,572 ProfServ-Special Assessment 8,842 9,107 9,380 9,380 - 9,380 9,661 ProfServ-Trustee Fees - - 9,106 9,616 - 9,616 9,106 Auditing Services 5,000 5,000 5,000 3,600 - 3,600 5,000 Postage and Freight 381 309 400 241 121 362 400 Insurance-General Liability 11,286 11,286 12,415 12,909 - 12,909 14,200 Printing and Binding 956 603 1,200 147 74 221 500 Legal Advertising 969 1,405 1,000 87 913 1,000 1,000 Misc-Admin Fee(%) 3,734 - - - - - - Misc-Property Taxes 3,087 5,828 5,850 5,896 - 5,896 5,900 Misc-Assessmnt Collection Cost 7,617 7,283 7,947 7,266 392 7,659 7,958 Misc-Contingency 776 113 250 70 180 250 250 Misc-Web Hosting 1,699 5,456 6,000 1,553 - 1,553 6,000 Office Supplies 220 164 330 120 60 180 330 Annual District Filing Fee 175 175 175 175 - 175 175 Total Administrative 146,451 174,111 171,032 113,030 38,964 151,994 174,253 Field ProfServ-Field Management 48,000 48,000 48,000 32,000 16,000 48,000 48,000 Contracts-Janitorial Services 51,660 72,960 90,900 51,480 25,740 77,220 77,220 Contracts-Other Services 1,701 1,701 1,701 1,701 - 1,701 1,701 Contracts-Water Analysis 14,355 729 - 27,913 12,100 40,013 - Contracts-Wetland Mitigation 31,235 31,235 35,676 19,050 4,590 23,640 35,676 Contracts-Landscape 178,452 191,852 190,452 127,768 63,884 191,652 191,652 Contracts-Canal Maint/Cleaning 39,255 82,676 91,360 64,773 45,680 110,453 91,360 Contracts-Rail Road Crossing 18,552 18,552 18,552 12,368 6,184 18,552 18,552 Electricity-General 8,345 11,833 12,500 7,050 3,525 10,575 12,500 R&M-General - 2,233 - 830 - 830 2,000 R&M-Fertilizer - - 6,000 - - - 6,000 R&M-Grounds 45,687 28,818 1,700 8,317 - 8,317 10,000 R&M-Irrigation 31,751 41,385 30,000 11,251 25,317 36,568 37,000 R&M-Mulch - - 25,000 - - - 25,000 R&M-Trees and Trimming 8,290 39,840 8,500 11,140 5,570 16,710 38,000 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 1 BEACON LAKES 1 6 I 1 A 5 Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Modified Tentative Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU JUNE PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 MAY-2021 SEPT-2021 FY 2021 FY 2022 R&M-Mitigation 4,500 22,540 12,500 6,468 3,234 9,702 22,000 R&M-Rail Road Crossing 515 14,161 15,000 2,041 2,959 5,000 10,000 Misc-Hurricane Expense - - 11,000 - - - 5.470 Misc-Contingency - - - 1,000 - 1,000 2,000 Total Field 482,298 608,515 598,841 385,150 214,783 599,933 634,131 TOTAL EXPENDITURES 628,749 782,626 769,873 498,180 253,747 751,927 808,384 Excess(deficiency)of revenues Over(under)expenditures 154,788 (37,506) - 230,370 (213,567) 16,803 (42,875) OTHER FINANCING SOURCES(USES) Contribution to(Use of)Fund Balance - - - - - - (42,875) TOTAL OTHER SOURCES(USES) - - - - - - (42,875) Net change in fund balance 154,788 (37,506) - 230,370 (213,567) 16,803 (42,875) FUND BALANCE,BEGINNING 849,207 1,003,995 966,489 966,489 - 966,489 983,292 FUND BALANCE,ENDING $ 1,003,995 $ 966,489 $ 966,489 $ 1,196,859 $ (213,567) $ 983,292 $ 940,417 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 2 BEACON LAKES 1 6 1 1 A 5 Community Development District General Fund Budget Narrative Fiscal Year 2022 REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their operating, money market and certificates of deposit accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all the assessable property within the District to pay for the operating expenditures during the Fiscal Year. Special Assessments-Discounts Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4%of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative Professional Services-Dissemination Agent The District is required by the Securities and Exchange Commission to comply with Rule 15c2-12(b)-(5), which relates to additional reporting requirements for unrelated bond issues. The budgeted amount for the fiscal year is based on standard fees charged for this service. Professional Services-Engineering The District's engineer provides general engineering services to the District, i.e. attendance and preparation for monthly board meetings when requested, review of invoices, and other specifically requested assignments. Professional Services-Legal Services The District's Attorney, Billing, Cochran, Heath provides general legal services to the District, i.e., attendance and preparation for monthly Board meetings, review of contracts, review of agreements and resolutions, and other research as directed or requested by the Board of Supervisors and the District Manager. Professional Services-Management Consulting Services The District receives Management, Accounting and Administrative services as part of a Management Agreement with Inframark Infrastructure Management Services, LLC. Also included are costs for Information Technology charges to process all the District's financial activities, i.e. accounts payable, financial statements, budgets, etc., on a main frame computer owned by Inframark in accordance with the management contract and the charge for rentals. The budgeted amount for the fiscal year is based on the contracted fees outlined in Exhibit "A" of the Management Agreement, with a moderate 3%proposed increase. Professional Services-Special Assessment Administrative costs to put the District's assessments on the Tax Roll. A moderate 3%proposed increase. Professional Services-Trustee The District issued the Series 2007 Special Assessment Bonds that is deposited with a Trustee to handle all trustee matters.The annual trustee fees are based on standard fees charged plus any out-of-pocket expenditures. Auditing Services The District is required to conduct an annual audit of its financial records by an Independent Certified Public Accounting Firm. The budgeted amount for the fiscal year is based on contracted fees from an existing engagement letter. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 3 BEACON LAKES 1 6 I 1 A 5 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES Administrative (continued) Postage and Freight Actual postage and/or freight used for District mailings including agenda packages, vendor checks and other correspondence. Insurance-General Liability The District's Property Insurance policy is with Public Risk Insurance Agency. They specialize in providing insurance coverage to governmental agencies. The coverage includes business auto and general/public officials' liability. The projected budgeted amount will remain the same as FY 2017 budget amount. Printing and Binding Copies used in the preparation of agenda packages, required mailings, and other special projects. Legal Advertising The District is required to advertise various notices for monthly Board meetings and other public hearings in a newspaper of general circulation. Miscellaneous-Property Taxes This represents billing from Miami-Dade Tax Collector on eleven portfolios. Miscellaneous-Assessment Collection Costs The District reimburses the Miami-Dade County Tax Collector for her or his necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 1%on the amount of special assessments collected and remitted,whichever is greater. The budget for collection costs was based on a maximum of 1%of the anticipated assessment collections. Miscellaneous-Contingency This represents any additional expenditure that may not have been provided for in the budget. Miscellaneous-Web Hosting Per Florida Statute,the District is required to have and maintain a website. Office Supplies Supplies used in the preparation and binding of agenda packages, required mailings,and other special projects. Annual District Filing Fee The District is required to pay an annual fee of$175 to the Department of Economic Opportunity. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 4 BEACON LAKES 1 6 1 1 A 5 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES Field Professional Services-Field Management The District will be managed by Prologis for the operation of the Property and its contractors @$4,000 per month. Contracts-Janitorial Services The District will contract with Facility Pro-Sweep, Inc. for power sweeping services, day porter services. Total of$4,305 per month. Contracts-Other Services The District will contract with CSX Transportation, Inc. for crossing signal maintenance. Class III Located at SXL 48.51. NW 137th Avenue, Hialeah, Florida. Contract No. DOT631054X01. Contracts-Wetland Mitigation The District will contract with Greensleeves, Inc. for maintenance @$2,973 per month. Contracts-Landscape The District will contract with GreenScape, Inc. for landscape maintenance; common area roads on west side of 129th Ave; common area roads Phase I; and common area roads Phase II. Landscape of$15,871. Contracts-Canal Maintenance/Cleaning The District will contract with Superior Landscaping, Inc for the canal maintenance for a monthly service of$4,101.83 & $5,444.67 per month. District is also reimbursed every quarter by Pan American West POA 20.25% of quarterly expenditures. The reimbursement is applied back to this expenditure. Contracts-Railroad Crossing The District will contract with American Track Generations, LLC for the monthly signal maintenance. The amount is $1,546 per month. Electricity-General The District will incur electrical usage of entrance, crossings, lift stations and pumps. R&M-General Other repairs and maintenance not in the budget.. R&M-Fertilizer Greenscape Landscape Maintenance, Inc.will provide fertilization services. R&M-Grounds The District will incur landscape replacement/enhancements, debris removal, guardrails, roads, drainage landscaping, irrigation and any additional work needed. The vendor is Greenscape Landscape Maintenance, Inc. R&M-Irrigation Greenscape Landscape Maintenance, Inc.will provide irrigation services. R&M-Mulch Greenscape Landscape Maintenance, Inc.will provide mulch services. R&M-Trees and Trimming The District has an agreement with Greenscape Landscape Maintenance, Inc.to provide and trim trees for main roads Annual Operating and Debt Service Budget Fiscal Year 2022 Page 5 BEACON LAKES 1 6 I 1 A 5 Community Development District General Fund Budget Narrative Fiscal Year 2022 EXPENDITURES Field (continued) R&M-Mitigation The District will incur other non-contractual mitigation expenditures. Environmental and permitting consultant. R&M-Railroad Crossing The District will incur other non-contractual railroad expenditures. Miscellaneous-Hurricane Expense The District may incur other field expenses during the hurricane season. Miscellaneous-Contingency The District may incur unforeseen field expenses not particularly under anyone category.. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 6 BEACON LAKES 1 6 I 1 A 5 Community Development District General Fund Exhibit"A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance-Fiscal Year 2022 $ 983,390 Net Change in Fund Balance-Fiscal Year 2022 (42,875) Reserves-Fiscal Year 2021 Additions - Total Funds Available(Estimated) -9/30/2022 940,516 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve-First Quarter Operating Capital 201,596 (1) Reserves-Irrigation System 72,277 Subtotal 273,873 Total Allocation of Available Funds 273,873 Total Unassigned(undesignated)Cash $ 666,643 Notes (1)Represents approximately 3 months of operating expenditures Annual Operating and Debt Service Budget Fiscal Year 2022 Page 7 lb ! 1 A 5 Beacon Lakes Community Development District Debt Service Budgets Fiscal Year 2022 BEACON LAKES 1 6 1 1 A 5 Community Development District Series 2003 Debt Service Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Modified Tentative Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU JUNE PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 MAY-2021 SEPT-2021 FY 2021 FY 2022 REVENUES Special Assmnts-Tax Collector $ 217,556 $ 217,512 $ 217,556 $ 206,827 $ 10,729 $ 217,556 $ 217,556 Special Assmnts-Discounts (8,302) (8,336) (8,702) (8,193) - (8,193) (8,702) TOTAL REVENUES 209,254 209,176 208,854 198,634 10,729 209,363 208,854 EXPENDITURES Administrative Misc-Assessmnt Collection Cost 2,093 2,085 2,176 1,986 107 2,093 2,176 Total Administrative 2,093 2,085 2,176 1,986 107 2,093 2,176 Debt Service Debt Retirement-Other 210,044 207,092 206,678 - 204,387 204,387 206,679 Total Debt Service 210,044 207,092 206,678 - 204,387 204,387 206,679 TOTAL EXPENDITURES 212,137 209,177 208,854 1,986 204,494 206,480 208,854 Excess(deficiency)of revenues Over(under)expenditures (2,883) (1) 196,648 (193,765) 2,883 - OTHER FINANCING SOURCES(USES) Contribution to(Use of)Fund Balance - - - - - - TOTAL OTHER SOURCES(USES) - - - - - - - Net change in fund balance (2,883) (1) - 196,648 (193,765) 2,883 - FUND BALANCE,BEGINNING 2,884 1 (2,883) (2,883) - (2,883) - FUND BALANCE,ENDING $ 1 $ - $ (2,883) $ 193,765 $ (193,765) $ - $ - Annual Operating and Debt Service Budget Fiscal Year 2022 Page 8 161 1A5 BEACON LAKES Community Development District Series 2007 Debt Service Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2022 Modified Tentative Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU JUNE PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2019 FY 2020 FY 2021 MAY-2021 SEPT-2021 FY 2021 FY 2022 REVENUES Interest-Investments $ 46 $ 72 $ - $ - $ - $ - $Special Assmnts-Tax Collector 96,718 96,698 96,718 91,948 4,770 96,718 96,718 Special Assmnts-Discounts (3,691) (3,706) (3,869) (3,642) - (3,642) (3,869) TOTAL REVENUES 93,073 93,064 92,849 88,306 4,770 93,076 92,849 EXPENDITURES Administrative ProfServ-Trustee Fees 9,106 9,616 - - - - - Misc-Assessmnt Collection Cost 930 927 967 883 48 931 967 Total Administrative 10,036 10,543 967 883 48 931 967 Debt Service Debt Retirement Series B 5,000 5,000 5,000 5,000 - 5,000 5,000 Debt Retirement-Other 69,422 69,709 79,442 - 94,485 94,485 79,442 Interest Expense Series B 8,060 7,750 7,440 7,440 - 7,440 7,130 Total Debt Service 82,482 82,459 91,882 12,440 94,485 106,925 91,572 TOTAL EXPENDITURES 92,518 93,002 92,849 13,323 94,533 107,856 92,539 Excess(deficiency)of revenues Over(under)expenditures 555 62 - 74,983 (89,763) (14,780) 310 OTHER FINANCING SOURCES(USES) Operating Transfers-Out (407) (429) - - - - - Contribution to(Use of)Fund Balance - - - - - 310 TOTAL OTHER SOURCES(USES) (407) (429) - - - - 310 Net change in fund balance 148 (367) - 74,983 (89,763) (14,780) 310 FUND BALANCE,BEGINNING 14,688 14,836 14,469 14,469 - 14,469 (311) FUND BALANCE,ENDING $ 14,836 $ 14,469 $ 14,469 $ 89,452 $ (89,763) $ (311) $ - Annual Operating and Debt Service Budget Fiscal Year 2022 Page 9 BEACON LAKES Community Development District 1 6 ` 1 A 5 AMORTIZATION SCHEDULE SERIES 2007 B SPECIAL ASSESSMENT BONDS DEBT SERVICE SCHEDULE DATE BALANCE RATE PRINCIPAL INTEREST TOTAL 11/1/2021 $115,000 6.200% $3,565 5/1/2022 $115,000 6.200% $5,000 $3,565 $12,130 11/1/2022 $110,000 6.200% $3,410 5/1/2023 $110,000 6.200% $5,000 $3,410 $11,820 11/1/2023 $105,000 6.200% $3,255 5/1/2024 $105,000 6.200% $5,000 $3,255 $11,510 11/1/2024 $100,000 6.200% $3,100 5/1/2025 $100,000 6.200% $5,000 $3,100 $11,200 11/1/2025 $95,000 6,200% $2,945 5/1/2026 $95,000 6,200% $5,000 $2,945 $10,890 11/1/2026 $90,000 6.200% $2,790 5/1/2027 $90,000 6.200% $5,000 $2,790 $10,580 11/1/2027 $85,000 6.200% $2,635 5/1/2028 $85,000 6.200% $5,000 $2,635 $10,270 11/1/2028 $80,000 6.200% $2,480 5/1/2029 $80,000 6.200% $5,000 $2,480 $9,960 11/1/2029 $75,000 6.200% $2,325 5/1/2030 $75,000 6.200% $5,000 $2,325 $9,650 11/1/2030 $70,000 6.200% $2,170 5/1/2031 $70,000 6.200% $5,000 $2,170 $9,340 11/1/2031 $65,000 6.200% $2,015 5/1/2032 $65,000 6.200% $5,000 $2,015 $9,030 11/1/2032 $60,000 6.200% $1,860 5/1/2033 $60,000 6.200% $10,000 $1,860 $13,720 11/1/2033 $50,000 6.200% $1,550 5/1/2034 $50,000 6.200% $10,000 $1,550 $13,100 11/1/2034 $40,000 6.200% $1,240 5/1/2035 $40,000 6.200% $10,000 $1,240 $12,480 11/1/2035 $30,000 6.200% $930 5/1/2036 $30,000 6.200% $10,000 $930 $11,860 11/1/2036 $20,000 6.200% $620 5/1/2037 $20,000 6.200% $10,000 $620 $11,240 11/1/2037 $10,000 6.200% $310 5/1/2038 $10,000 6.200% $10,000 $310 $10,620 $115,000 $74,400 $189,400 Annual Operating and Debt Service Budget Fiscal Year 2022 Page 10 BEACON LAKES 1 S 1 1 A Community Development District Debt Service Fund Budget Narrative Fiscal Year 2022 REVENUES Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all the assessable property within the District to pay for the debt service expenditures during the Fiscal Year. Special Assessments-Discounts Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4%of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative Miscellaneous-Assessment Collection Cost The District reimburses the Miami-Dade County Tax Collector for her or his necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 1%on the amount of special assessments collected and remitted,whichever is greater. The budget for collection costs was based on a maximum of 1%of the anticipated assessment collections. Debt Retirement Series B The District pays an annual principal amount on 5/1 of each fiscal year. Debt Retirement-Other Because of excess special assessments prepayments by landowners, the District owes landowners in assessments related to the Series 2003A Special Assessment bond and in assessments related to the Series 2007 Special Assessment bond. Payments to landowners to end in FY 2024 for Series 2003A Special Assessment bond and FY 2030 for Series 2007 Special Assessment bond. Interest Expense Series B The District pays semi-annual interest amounts on 5/1 and 11/1 of each fiscal year. Annual Operating and Debt Service Budget Fiscal Year 2022 Page 11 1611A5 Beacon Lakes Community Development District Supporting Budget Schedule Fiscal Year 2022 1611A5 RESOLUTION 2021-06 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE QUARRY COMMUNITY DEVELOPMENT DISTRICT APPROVING THE BUDGET FOR FISCAL YEAR 2022 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW WHEREAS, the District Manager has heretofore prepared and submitted to the Board a proposed operating and/or debt service budget for Fiscal Year 2022; a copy of which is attached hereto, and WHEREAS, the Board of Supervisors has considered said proposed budget and desires to set the required public hearing thereon; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE QUARRY COMMUNITY DEVELOPMENT DISTRICT; 1. The operating budget proposed by the District Manager for Fiscal Year 2022 is hereby approved as the basis for conducting a public hearing to adopt said budget. 2. A public hearing on said approved budget is hereby declared and set for the following date, hour and place: Date: August 16, 2021 Hour: 2:00 p.m. Place: Quarry Beach Club 8975 Kayak Drive Naples, Florida Notice of this public hearing shall be publish the r prescribed in Fl i Law. Adopted this 17th day of May 2021 Cha. on/Vice-Chairp rs reta Assistant/ Secre taryetary Agenda Page#105 THE QUARRY COMMUNITY DEVELOPMENT 6 I 1 A 5 DISTRICT DISTRICT COUNSEL REPORT May 17, 2021 MEETING 1. Confer with Omland and counsel for QCA regarding QCA capital project and request for property. 2. Confer with Faircloth regarding agreement for resident impact on CDD easements and prepare draft of same. Agenda Pa 1#107 6 1 1 A 5 geAfter recording,please return to: District Manager The Quarry CDD c/o Inframark 210 N.University Drive Suite 702 Coral Springs,FL 33071 Parcel ID# LICENSE AGREEMENT FOR INSTALLATION OF IMPROVEMENTS THIS LICENSE AGREEMENT FOR INSTALLATION OF IMPROVEMENTS ("Agreement") is entered into as of this day of , 2021, by and among "Owner") residing at , and the QUARRY COMMUNITY DEVELOPMENT DISTRICT ("CDD"), a local unit of special-purpose government created pursuant to Chapter 190, Florida Statutes, with a mailing address of 210 N. University Drive Suite 702, Coral Springs,Florida 33071. RECITALS WHEREAS, Owner is the owner of Lot as per the plat ("Plat") of recorded in Plat Book , Page et seq., of the Official Records of Collier County, Florida("Property");and WHEREAS, Owner desires to install and related appurtenances ("Improvements") within the_-foot easement("Easement") located on said Property and as shown on the Plat("License Area"); and WHEREAS, due to the CDD's legal interests in the Easement, among other reasons, Owner requires the CDD's consent before constructing improvements within any portion of the Easement; and WHEREAS, the CDD has agreed to consent to the installation of the Improvements within the License Area, subject to the terms and conditions set forth in this Agreement. Now, THEREFORE, in consideration of Ten and No/100 Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is understood and agreed as follows: 1. RECITALS. The recitals set forth above are acknowledged as true and correct and are incorporated herein by reference. 2. LICENSE FOR IMPROVEMENTS INSTALLATION AND MAINTENANCE; LIMITATION. Subject to the terms of this Agreement, the CDD hereby grants Owner the right, privilege, and permission to install and maintain removable Improvements on the License Area. 3. OWNER RESPONSIBILITIES. The Owner has the following responsibilities: 1 6 I 1 A 5 Agenda Page#108 a. The Owner shall be fully responsible for the installation and maintenance of the Improvements. b. The Owner shall be responsible for ensuring that the installation and maintenance of the Improvements are conducted in compliance with all applicable laws (including but not limited to building codes, set back requirements,etc.). c. CDD, by entering into this Agreement, does not represent that CDD has authority to provide all necessary approvals for the installation of the Improvements. Instead, the Owner shall be responsible for obtaining any and all applicable permits and approvals relating to the work (including but not limited to any approvals of the Quarry Community Association, Inc. ("Association"), as well as any other necessary legal interests and approvals). d. The Owner shall ensure that the installation and maintenance of the Improvements does not damage any property of CDD or any third party's property, and, in the event of any such damage, the Owner shall immediately repair the damage or compensate the CDD for such repairs, at the CDD's option. e. Owner's exercise of rights hereunder shall not interfere with CDD's rights under the Easement, or with any other applicable rights. Owner agrees that CDD, in its sole and absolute discretion, shall determine whether any such interference exists. Further, the Improvements shall be installed in such a manner as to not interfere with or damage any improvements, whether above or below ground, that may be located within the Easement, or any utilities within the public utility easement, if any. It shall be Owner's responsibility to locate and identify any such improvements and/or utilities. Further, the Owner shall pay a licensed and insured professional contractor to mark any existing improvements and/or utilities prior to installation of the Improvements. f. Upon completion of the installation, the Improvements will be owned by the Owner. Owner shall be responsible for the maintenance and repair of the Improvements, and agrees to maintain the Improvements in good and working condition. g. Additionally,the Owner shall keep the License Area free from any materialmen's or mechanic's liens and claims or notices in respect to such liens and claims, which arise by reason of the Owner's exercise of rights under this Agreement, and the Owner shall immediately discharge any such claim or lien. 4. REMOVAL AND/OR REPLACEMENT OF IMPROVEMENTS. The permission granted herein is given to Owner as an accommodation and is revocable by the CDD at any time. Owner acknowledges the legal interest of the CDD in the Easement and agrees never to deny such interest or to interfere in any way with CDD's use. Owner will exercise the privilege granted herein at Owner's own risk, and agrees that Owner will never claim any damages against CDD for any injuries or damages suffered on account of the exercise of such privilege, regardless of the fault or negligence of the CDD. Owner further acknowledges that, without notice,the CDD may remove all, or any portion or portions, of the Improvements installed upon the License Area at Owner's expense, and that the CDD is not obligated to re-install the Improvements to its original location and is not responsible for any damage to the Improvements, or its supporting structure as a result of the removal. 5. INDEMNIFICATION. Owner agrees to indemnify, defend and hold harmless the CDD, as well as any officers, supervisors, staff, agents and representatives, and successors and assigns, of the foregoing, against all liability for damages and expenses resulting from, arising out of, or in any way connected with,this Agreement or the exercise of the privileges granted hereunder. Page 2 of 6 Agenda Page#�9 it 6. COVENANTS RUN WITH THE LAND. This Agreement, and all rights and obligations contained herein, shall run with the land and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and assigns, including, but without limitation, all subsequent owners of any portions of the property described herein and all persons claiming under them. Whenever the word "Owner" is used herein, it shall be deemed to mean the current owner of the Property and its successors and assigns. Upon the sale of the Property, the Owner shall advise the subsequent owner of the terms and conditions of this Agreement. 7. SOVEREIGN IMMUNITY. Nothing in this Agreement shall be deemed as a waiver of immunity or limits of liability of the CDD beyond any statutory limited waiver of immunity or limits of liability which may have been adopted by the Florida Legislature in section 768.28, Florida Statutes, or other statute, and nothing in this Agreement shall inure to the benefit of any third party for the purpose of allowing any claim which would otherwise be barred under the doctrine of sovereign immunity or by operation of law. 8. ATTORNEY'S FEES AND COSTS. The prevailing party in any litigation to enforce the terms of this Agreement shall be entitled to reasonable attorney's fees and costs. 9. COUNTERPARTS. This Agreement may be executed in any number of counterparts. Any party hereto may join into this Agreement by executing any one counterpart. All counterparts when taken together shall constitute but one and the same instrument constituting this Agreement. [Signature pages follow] Page 3 of 6 Agenda Page#110 0 I 1 A 5 IN WITNESS WHEREOF, the parties have caused these presents to be executed on the day and year first above written. WITNESSES: OWNER By: By: Print Name Print Name By: Print Name STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me this day of , 2021, by . She/He [ ] is personally known to me or [ ] produced as identification. NOTARY PUBLIC (Print,Type or Stamp Commissioned Name of Notary Public) [signatures continue on following page] Page 4 of 6 Agenda Page#111 1 6 I 1 A 5 [SIGNATURE PAGE TO LICENSE AGREEMENT FOR INSTALLATION OF IMPROVEMENTS] WITNESSES: OWNER By: By: Print Name Print Name By: Print Name STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me this day of , 2021, by . She/He [ ] is personally known to me or [ ] produced as identification. NOTARY PUBLIC (Print,Type or Stamp Commissioned Name of Notary Public) [signatures continue on following page] Page 5 of 6 Agenda Page#112 [SIGNATURE PAGE TO LICENSE AGREEMENT FOR INSTALLATION OF IMPROVEMENTS]1 A 5 WITNESSES: THE QUARRY COMMUNITY DEVELOPMENT DISTRICT By: By: ,Board of Supervisors Print Name By: Print Name STATE OF FLORIDA ) COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2021, by ,as of the Board of Supervisors of the Quarry Community Development District, on behalf of said district. She/He [ ] is personally known to me or [ ] produced as identification. NOTARY PUBLIC (Print,Type or Stamp Commissioned Name of Notary Public) [End of signature pages] Page 6 of 6 -----��„ Agenda Page#115 1111111111111111111111 FLORIDA RESERVE STUDY I AND APPRAISAL 1 6 1 A 5 April 28,2021 The Quarry CDD do Inframark LLC 210 N University Drive Coral Springs, FL 33071 RE: Reserve Study with Site Inspection The Quarry CDD Quarry Drive Naples,FL 34120 Dear Board of Supervisors: We are very appreciative for the opportunity to perform a full reserve study with site inspection and recommendations for The Quarry CDD. We are a team of knowledgeable reserve analysts with extensive experience and take pride in performing reserve studies. The reserve study will project costs and funding for a 30 year time frame for all common areas and improvements. The Quarry CDD commenced operations in 2004. The District is comprised of 900 units total which consist primarily of single family homes with a much smaller portion of multifamily homes. Home construction in the community occurred from 2005-2017. The community consists of 860 acres and is located in Naples, Collier County, Florida. After a review of plats, aerials, and county records, we recommend the following reserve items be included in the report: • Lakes and Banks • Stormwater Drainage • Any Other Items Specified by You The physical analysis portion of the reserve study will include a reserve item component list, remaining life, useful life, current cost, future cost of all reserve items as well as any site recommendations. The financial analysis portion of the study will include allowances for your interest income, taxes and projected changes in building costs. The pooled method and component method(if applicable) will be used and presented to derive the funding schedules. 1 PHONE: 813.932.1588 WEB : www.reservestudyfl.com FAX : 813.388.4189 ADDRESS : 12407 N Florida Ave, Tampa, FL 33612 Agenda Page#116 IS FLORIDA RESERVE STUDY 1 6 1 1 A 5 AND APPRAISAL Scope of Service Our scope of service for a full reserve study with site inspection that includes all expenses consists of: • Site inspection of common areas and improvements with both a Certified General Contractor and a CAI-designated Reserve Specialist (Both are'degreed engineers). • Our user-friendly reserve study report that includes narrative, photographs, pooled method cash flow plan, component method plan (if applicable), reserve item component cost, remaining life, and useful life inventory. The report projects costs and funding for 30 years using localized costs. • Percent Funded Analysis. This compares what you have in reserve funds to what the ideal amount should be, something many reserve studies do not include. • One site meeting with management or the board, if requested. • Electronic copies of the report. Electronic copies can also be requested any time in the future by email. A hard copy is available free of charge upon request. • Revisions or amendments of reports for up to 90 days from the first submission of the report. We welcome all feedback. (It is not uncommon for there to be one or two refinements of the report to meet your specific requirements). • Accessibility. Call, write, or email us any time and you will receive prompt follow-up. We aim to exceed expectations and consider customer service our top priority. • 30 year cash flow plan in the report. • Review of plats, drawings, and site aerials. 2 PHONE: 813.932.1588 WEB : www.reservestudyfl.com FAX :813.388.4189 ADDRESS : 12407 N Florida Ave,Tampa, FL 33612 FLORIDA RESERVE STUDY "11:1 1611A5 AND APPRAISAL Qualifications Paul Gallizzi and Steven Swartz are professionals in the business of preparing reserve studies and insurance appraisals for community associations. We both inspect all properties and have provided detailed analysis of over 300,000 single family, apartment, villa, townhome, and condominium units. Our high repeat customer rate indicates high customer satisfaction. We have prepared reserve studies and insurance appraisals for all types of community associations including high rise condominiums, mid-rise condominiums, garden-style condominiums, office condominiums, medical condominiums, townhouse developments, single family residential homeowners associations, community development districts, and special use facilities. We both hold engineering degrees from fully accredited universities. Paul is a State Certified General Real Estate Appraiser License Number RZ 110 and a State Certified General Contractor License Number CGC 019465 with over 30 years of experience in each. Steven is one of approximately only 200 people nationwide that have earned the designation of Reserve Specialist (RS) from the Community Associations Institute and is a State Certified General Real Estate Appraiser License Number RZ 3479. He has also been a speaker at CAI functions discussing reserves and budgeting. To learn more, please visit us on the web at www.reservestudyfl.com and visit our articles section for more than 50 articles about reserves, funding, and budgeting. A partial list of our clients include: • Greenacre Properties • The Mahaffey Apartment Company • Standard Pacific Homes • Rizzetta& Company • Leland Management • First Service Residential • M/I Homes • Brown &Brown Insurance • Associa Gulf Coast • Taylor Morrison Homes • Sentry Management • Vanguard Management Group • Starwood Land Ventures • Lennar Homes • Management&Associates • McNeil Management Services • Resource Property Management • Development Planning and Financing Group • Condominium Associates • Qualified Property Management • Insurance Office of America • Avid Property Management • Argus Property Management • Southshore Property Management • Creative Management • Terra Management Services • Many Other Individually Managed Associations 3 PHONE: 813.932.1588 WEB : www.reservestudyfl.com FAX : 813.388.4189 ADDRESS : 12407 N Florida Ave,Tampa,FL 33612 Agenda Page#118 iiiiiiiimmmii. OrA* 1611A5 FLORIDA RESERVE STUDY AND APPRAISAL Experience Here is a short list of communities we have conducted reserve studies for, showing experience with various construction types, building systems, and community amenities: Fishhawk CDD I, CDD II, CDD III, & CDD IV,Lithia,Florida Fishhawk Ranch is a large planned community consisting of approximately 3000 acres in Lithia, Florida. It is comprised of numerous single family home subdivisions as well as a few townhome subdivisions. There are many community amenities including swimming pools, clubhouses, tennis courts, playgrounds, fitness centers, a banquet center, running trails, parks, and various others. The District also maintains the ponds, stormwater drainage, and the entry areas. There are a total of 6,286 members. Heritage Harbour South CDD,Bradenton,Florida Heritage Harbour South CDD is comprised of single family residential and multifamily residences. The community started construction in 2002 and construction finished in 2006. Overall, there are 1,523 units. The CDD maintains the baseball field and recreation area. The District also maintains the streets, ponds, stormwater drainage, and the entry areas. The CDD encompasses a total site size of 980.79 acres in Bradenton, Florida. Venetian CDD,Venice, FL Venetian CDD commenced operations in September 2002. The Venetian Golf and River Club has 1,377 lots planned primarily for single family residential development as well as a small amount of multi-family development. The River Club recreation area was built in 2004 and includes a clubhouse, kitchen and banquet facilities, fitness center, pool area, tennis courts, as well as other amenities. The District also maintains the streets, ponds, stormwater drainage, and the entry areas. The CDD encompasses a total site size of 964 acres. Riverwood CDD,Port Charlotte,FL Riverwood CDD started development in the mid 1990s and most of the construction was complete over the next decade. The District maintains an amenity campus with a clubhouse/athletic center, pool area, tennis, and shuffleboard courts. The district also owns an off-site Beach Club on Manasota Key in Englewood. The Beach Club was built in 2003 and acquired in 2014. Additionally, the District also maintains the streets, potable water system, re- claimed water system, sewer system (and plant), and stormwater drainage. Two Creeks CDD,Middleburg,FL Two Creeks has 624 platted lots planned for single family residential development and encompasses 625 acres. The community was platted in June 2007. Within the district, there is a recreation comprised of a clubhouse, pool area, 2 tennis courts, a basketball court, playgrounds, and a volleyball court. The community also maintains the ponds, stormwater drainage, and the entry areas. 4 PHONE : 813.932.1588 WEB : www.reservestudyfl.com FAX :813.388.4189 ADDRESS : 12407 N Florida Ave,Tampa, FL 33612 FLORIDA RESERVE STUDY 1 6 11 A 5 AND APPRAISAL Services The fee schedule for the current assignment is as follows, please sign below to confirm your acceptance: Full Reserve Study with Site Inspection (Level-1) $2,800 We will provide you with electronic copies of the report. Payment will be due at the first submission of the report. The report will be completed within eight weeks of our firm receiving this engagement letter signed and faxed or emailed to our office. Thank you again for the opportunity to present our proposal to you. Sincerely, 144iteM Paul Gallizzi Steven Swartz, RS Florida General Contractor#CGC-019465 Reserve Specialist Designation No. 214 State-Certified General Appraiser RZ110 State-Certified General Appraiser RZ3479 Accepted by Signature: Date Accepted by Printed Name: 5 PHONE : 813.932.1588 WEB : www.reservestudyfl.com FAX : 813.388.4189 ADDRESS : 12407 N Florida Ave,Tampa, FL 33612 Agenda Page#122 1 6 I 1 A 5 THE QUARRY COMMUNITY DEVELOPMENT DISTRICT CHAIRMAN'S ACTIVITY REPORT SINCE LAST MEETING FOR MAY 17, 2021 MEETING 1. FEMA Update: a. Numerous email communications with FEMA and Tony Ettore, Esq. , our specialized attorney. b. Expect to submit final (hopefully) package of additionally requested information Monday, May 10t''to FEMA c. Expect positive feedback from FEMA this upcoming month 2. Resident issues: a. None to Chair 3. Review and process invoices through AVID 4. Meeting with Golf Club, Justin Faircloth, Albert Lopez, Jeffrey Satfield and its engineer on May 29th 5. Numerous meetings with QCA on potential swap of land necessary to implement their Beach Club Master Plan. 6. Discussions with Wes Haber on requirements and procedure of potential land swap with QC 7. Discussions with CPH and Inframark on budget 8. Discussions and meeting with Ed Hubbard, Chair of HBCDD on 05.11 Stanley T. Omland, PE, PP, CME, LEED AP 05.10.21 Agenda Page#124 The Quarry Community i 6 I 1 A 5 Development District • v TL 4 r. I x m r. rni' . . ::mot .Q 1 t i Y , `~ _. Tt�F QUARRY ,' :~ •1 i 1 -- - .060..'L 't 4' iii+7't* t 1.* 6 4. ,,,,,,, i , ,,. . , . , „.,...4 .:4.. .„..„ ,.„ .,t,.., .,.. .4gigive4 • ,.., ,.:4t.s. .•A. . . 4 Proposal for Field Inspection Services May 10, 2021 OUR MISSION: INFRAMARK TO BE THE ARTNER AND PROTECTOR INFRASTRUCTURE MANAGEMENT SERVICES OF THE "T CRITICAL RESOURCE THAT HELPS COMMUNITIES PROSPER 16I1A5 Agenda Page#125 6INFRAMARK IMivASTR,:CTRC 5.1ANAC.CMCNT:CR VIL.C'. May 10, 2021 Re: Proposal for The Quarry Community Development District - Field Inspection Services Inframark — Infrastructure Management Services is excited and pleased to provide a proposal for Field Inspection Services for The Quarry Community Development District. Our Mission is: "To be the Partner and Protector of the Most Critical Resource that helps Communities Prosper." We do this through our 3 Principles of Pure Partnership We strongly believe in our people and ability to exceed our client's expectations. These beliefs are rooted in some of the following: • Experience: o Providing District Management, Field Services and Amenity Center Services to the Florida Region for nearly 40 years. PURE PARTNERSHIP ion% 00 Pure Alignment Pure Accessibility Pure Accountability We connect with clients on their terms, We are open and transparent with our We hold ourselves accountable to our on a foundation of clarity trust and mutual clients and each other We make information clients.through continuous measurement understanding We make their goals our and insights easy to see understand and and improvement.to our environment goals tailoring the right mix of skills and share We re always available and open to through rigorous compliance,and to each resources to every project share our skills ideas and thinking other,through ongoing safety,training and professional development We are committed to providing the best service possible while overcoming any obstacles that may arise. We look forward to hearing from you concerning our proposal and further discussing these plans, along with your vision, for your community. Respectfully, . 40 Chris Tarase , 1Y: :` � Vice President '1�EaR�f''�` Inframark Infrastructure Management Services Fk f H— 1 6 I 1A5 Agenda Page#126 Table of Contents 1 Pricing & Business Considerations 1 2 Sample Field Report 2 i may, i"� .11e:''''' .:d _. l i i el 1 , . I - 4 i T7 / ` •1. 111bf 'A 161 1A5 Agenda Page#127 The Quarry Community Development District 1 Pricing & Business Considerations Proposed Monthly Proposed Annual Pricing Category Pricing Pricing Field Inspection Services $ 1,250.00 $15,000.00 Total $ 1,250.00 $15,000.00 NOTES: • Pricing is good for 30 days and is contingent upon a mutually agreed scope and contract. • Pricing does not include inspections of the preserves as this area would require additional time and equipment to inspect. INCLUDES: • Conduct a visual monthly inspection of the community • Prepare and present a monthly field report summary for the board to review including any recommended actions Proposal for Field Inspection Services Page 1 Agenda Page#128 The Quarry Community Development District 2 Sample Field Report 1 6 1 1 A 5 ( INFRAMARK Sample CDD April 30, 2021 — Field Management Report Inctr. tot!by )u-.ttn t,pesi_Icai Proposal for Field Inspection Services Page 2 Agenda P ge#129 The Quarry Community Development DiIIC16 I 1 A 5 1. Aeration The new electric services have been installed on Blue Way and Red Drive. The sites are ready for the next phase of the project with the installation of the aeration equipment. The Board may wish to install plantings around the new posts to shield the equipment from view. The breaker panel was found open for the lake 6 aeration compressor. The outlet cover was also found broken and should likely be replaced. All cabinets were reviewed and all compressors were running without any apparent issues. t s� i 4 y..=.f' f ii Y �=k.*- ` * x ..fit € a P , i• s 1. 's + 4 it' 1 '. . - Proposal for Field Inspection Services Page 3 1611A5 Agenda Page#130 The Quarry Community Development District weir - . Fountain The fountain was observed flowing and spinning as designed. The fountain control panel was found loose and the mechanism holding the panel securely in place appears to be broken. The vendor will be contacted to have this addressed so there is no safety issue. .. :•'4. • Gatehouse/Monuments The gatehouse at the front entrance has recently been repainted along with the surrounding monuments. Some electrical repairs have been completed, however, there are still various electrical items that should be addressed to avoid safety issues. 'Oh y Inframark Annual Management Report 2 Proposal for Field Inspection Services Page 4 5 Agenda Page#131 I The Quarry Community Development District hi,t An irrigation leak was possibly discovered by unknowingly driving through a saturated area around the western monument sign. A blanket was observed amongst the hedge behind the gatehouse and should likely be removed. • E • •, • The rear gatehouse has also been repainted. The fire extinguisher inside the gatehouse was found with an expired inspection tag and should be put on a regular inspection cycle once again. Exposed wires were visible behind the structure and can likely be fixed by repositioning the conduit and re-tightening the end connector. Inframark Annual Management Report 3 Proposal for Field Inspection Services Page 5 AgeLa 4e I131 A 5 The Quarry Community Development District IIII " Lake Management The lake water levels are very low currently as we are nearing the end of the dry season. As found with previous inspections during this particular time of year, there were heavy amounts of dead floating vegetation in some, but certainly not all, of the lakes. Additional lake maintenance information is found below, all lake issues were low density unless otherwise noted. a. Algae on Lakes: 1, 2, 4, 5, 9. 11, & 15. Medium to high density on lakes 4 & 9 (pictured). r 111.11 b. Grass Clippings in Lakes No issues observed. Inframark Annual Management Report 4 Proposal for Field Inspection Services Page 6 Agend1Pa§#113 1 A 5 The Quarry Community Development District itto;1k Littorals throughout the lakes were found to have section of healthy littorals such as canna. spikerush. and thalia. New plantings were also observed on the homeowner side of lake 2. • • lee pee, •Tt ..'• s r aor 0. e d. Trash in Lakes: No issues observed. The Board may wish to have a fallen tree removed from the north bank of lake 5 east of the#3 green• . ;t p.. • ,�' • e. Weeds: i. Alligator Weed in Lakes No issues observed. intramark Annual Management Report 5 Proposal for Field Inspection Services Page 7 1 6 I 1A5 Agenda Page#134 The Quarry Community Development District ii. Brazilian Pepper: No issues observed. iii. Cattails in Lakes: No issues observed. iv. Climbing Hemp Vine in Lakes: No issues observed. v. Dollar Weed in Lakes• No issues observed. vi. Hydrilla in Lakes: 2 & 13. tio . 4 „ : ......,.. 0- ..er . , ... . , . ,, , , „„, 1, ' , ,. Y 4 vii. Illinois Pond Weed in Lakes No issues observed. viii. Muskgrass (Chara) 4 & 7. Medium to high density. ix. Palms: 3. Unwanted palms should likely be sprayed out before they become mature and a future maintenance issue for the District. airy ..,.,,.„.„,„ . ..,. ..... ,'f .+�',4y' Y Nam' ...... ...o. ,:A,,r..„,,, . 7::-#0 x. Red Ludwigia in Lakes: No issues observed. xi. Spatterdock/Lily Pads in Lakes: No issues observed. xii. Torpedo Grass in Lakes: No issues observed. xiii. Widgeon Grass. 3& 7. Medium to high density. 5. Perimeter Fence The fence on the western boundary of tract Al adjacent to the south bank of lake 3 continues to have debris on it that should likely be removed to prevent damage to the fencing. The fencing along Clearview Way has been removed during the exotic species removal of the new designated conservation areas by the vendor. The District may wish to consider adding additional fencing to secure the boundaries of the community, and this may very well be a possible requirement. A portion of fence was found falling over on the Inframark Annual Management Report F Proposal for Field Inspection Services Page 8 6 1A5 Agenda Page#135 The Quarry Community Development District southern boundary of tract B3 where the border is shared with Colony Golf that should be repaired. • ''•` ..¢. 4 of J{�" i '7 _g y^ r .�' _ y�[y —.ate • ~ e y -4"4 , °: ' "4a; !i »i4.• L. ` 1. The wooden fencing between the District and Colony Golf on the southern boundary of tract B12 seemed to be in good condition with no apparent issues. The fence on the western boundary of tract All adjacent to lake 2 and Red Drive have heavy vegetation growin* on it in 'laces that should be sera ed out. . , 4 , .. r t • N. Pre: , . y Invasives are beginning to gain a foothold in many of the conservation areas and should be addressed soon to avoid further dispersion. Invasive exotic Long Ear Leaf Acacia trees were noted along the western boundary of tract A10 and should be removed to avoid further development of an ongoing seed source for future growth within the conservation areas. Young saplings were also observed in tract B12 north and east of lake 12. Removal of invasives in the perimeter boundaries is an important measure to help keep additional new growth from spreading into interior conservation areas. Inframark Annual Management Report 7 Proposal for Field Inspection Services Page 9 16L1Ay Agenda Page#136 The Quarry Community Development District !iv• a � • til _ • w..... y*.,. r:. . Even more Long Ear Leaf Acacia trees were found in H4 on west bank of Lake 4. With the development of the adjacent parcel to the west, now is likely a great time to have any juvenile plants to be addressed before they mature. The exotic species removal by the vendor on the new parcel along Colonial Court appears to be complete. The District may wish to develop a plan to help native plants become established and prevent exotics from taking hold in the area once again. . a. ,G. it l`,`. � 1 r_ ... ... 1 mo It �S t,S� � ♦.: - - Sightings of Long Ear Leaf Acacia in a section of tract B1 between holes 7 and 12 are increasing due to seed source on neighboring property of Colony Golf and should be addressed. The number of fruit pods on these trees help this plant to easily develop in new areas. 7 ..sk 4, I . t \ i�f .• % lei. . q \ �! r e }� "f �� N� .err 0 . ,''' i itip- ; Inframark Annual Management Report 8 Proposal for Field Inspection Services Page 10 1611A5 Agenda Page#137 The Quarry Community Development District Various small Long Ear Leaf Acacia and Brazilian pepper trees were observed south of building 14 and lake 19. Saplings were also noted along the wooden fence in tract A2. pia+ a y t #, *`i•` . to ` • . • • It • t t idts' R�.` ♦ V f e',a, M 't' o-b . 1 brJ \ 1'`��,j,, 1. 'yfp�j'q�,�5'.' y • 4y, Stl�l �` Y.{. .�' }}� ' is 7. Roadways/Gutters Minor .utter crackin., but no other issues observed. 8. Sidewalks The cart path behind the gatehouse off of Blue Boulevard appears to have a lip adjacent to both street gutters and should likely be ground down to avoid a trip hazard. a • w zed Inframark Annual Management Report 9 Proposal for Field Inspection Services Page 11 161 1A5 Agenda Page#138 The Quarry Community Development District 9. Stormwater System Control Structures Control structure C remains to be cleaned out to ensure proper flow to Tract B2. • . _ , . � : -: . x,t f r 7+.f . wr, April 2019 April 2021 Drains The vegetation growing out of C-11 should be sprayed out to ensure proper flow. t '..1, . :'..'„-,".1 -;',Sy;.. cr.. . t. 1' ' 4 . , J ,M S. Drain structure C-111 on the SW corner of Lake 3 continues to be monitored. The roots are continuing to grow inside the drain and could cause damaged to the structure. r r ri 4 0‹: i Ta7Y, y p � ...: %it i 1‘‘,1 Ob..\, *..%.\t\o.\\*..1 Inframark Annual Management Report Io Proposal for Field Inspection Services Page 12 1 6 I 1 A 5 Agenda Page#139 The Quarry Community Development District t: Erosion: No issues observed. d, Lake Drainage Pipes. No issues observed. e. Inter-Connect/Drain Pipes: R-6 should be cleaned out prior to the rainy season to ensure no blockages form as a result of the debris held back from the carp grating. 1 iJ • .ti soh- 11 The carp barrier on interconnect G-6 remains broken and needs to be repaired to keep the carp from moving to lake 3. The plastic tubing should be replaced with more substantial material as observed above. 4 J. f Roadway Catch Basins: No new issues observed. 1p. Residential ComplaintslConcems No issues reported. 11. Fish/Wildlife Observations ^] Bass ❑ Bream L Catfish `J Gambusia Egrets ® Herons _ Coots (— Gallinules 2Anhinga n Cormorant n Osprey ❑ Ibis Woodstork Otter ❑ Alligators ❑ Snakes ❑ Turtles — Other: Ducks Inframark Annual Management Report 11 Proposal for Field Inspection Services Page 13 I Agenda Page#1406 1 A 5 6INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES Sample CDD April 30, 2021 — Field Management Report www.inframarkims.com Inspected by:Justin Faircloth Agenda Itge6411 1 A 5 1. Aeration The new electric services have been installed on Blue Way and Red Drive. The sites are ready for the next phase of the project with the installation of the aeration equipment. The Board may wish to install plantings around the new posts to shield the equipment from view. The breaker panel was found open for the lake 6 aeration compressor. The outlet cover was also found broken and should likely be replaced. All cabinets were reviewed and all compressors were running without any apparent issues. 0 440-, '41.14,, :':141", --`.,,' " v.:'Aktit ,,,i- 1' ..'' , -:, - ' •111114 '' d ill II •yam' 4" 1Y '14$04 �• 4 , lx.41 ,... , 1 v r a' I, f4t- ;- 3, ,, . 3.,. _ - Pj WNW 6 ' •• \ 1 qe:1.iiismihookiererilfill1Rk \ OW f 4* . 3y tI 11/ ) Inframark Annual Management Report 1 1611A5 Agenda Page#142 • go 4 dolook • 2. Fountain The fountain was observed flowing and spinning as designed. The fountain control panel was found loose and the mechanism holding the panel securely in place appears to be broken. The vendor will be contacted to have this addressed so there is no safety issue. r. tr ::44 It 1 ELN ems"' 3. Gatehouse/Monuments The gatehouse at the front entrance has recently been repainted along with the surrounding monuments. Some electrical repairs have been completed, however, there are still various electrical items that should be addressed to avoid safety issues. r ' \4*_ Inframark Annual Management Report 2 Agenda Pagel 436 I 1 " ' 5 ■ A Y } An irrigation leak was possibly discovered by unknowingly driving through a saturated area around the western monument sign. A blanket was observed amongst the hedge behind the gatehouse and should likely be removed. ir The rear gatehouse has also been repainted. The fire extinguisher inside the gatehouse was found with an expired inspection tag and should be put on a regular inspection cycle once again. Exposed wires were visible behind the structure and can likely be fixed by repositioning the conduit and re-tightening the end connector. Inframark Annual Management Report 3 i611A5 Agenda Page#144 1 IIlII , i 4. Lake Management The lake water levels are very low currently as we are nearing the end of the dry season. As found with previous inspections during this particular time of year, there were heavy amounts of dead floating vegetation in some, but certainly not all, of the lakes. Additional lake maintenance information is found below; all lake issues were low density unless otherwise noted. a. Algae on Lakes: 1, 2, 4, 5, 9, 11, & 15. Medium to high density on lakes 4 & 9 (pictured). -tom 741440 17. b. Grass Clippings in Lake- No issues observed. Inframark Annual Management Report 4 161 1A5 Agenda Page#145 C. Littorals: Littorals throughout the lakes were found to have section of healthy littorals such as canna, spikerush, and thalia. New plantings were also observed on the homeowner side of lake 2. • , . `y d. Trash in Lakes: No issues observed. The Board may wish to have a fallen tree removed from the north bank of lake 5 east of the#3 green. m C s. y, ,may: +. e. Weeds: i. Alligator Weed in Lakes: No issues observed. Inframark Annual Management Report 5 1 6 I 1 A 5 Agenda Page#146 ii. Brazilian Pepper: No issues observed. iii. Cattails in Lakes: No issues observed. iv. Climbing Hemp Vine in Lakes: No issues observed. v. Dollar Weed in Lakes: No issues observed. vi. Hydrilla in Lakes: 2 & 13. _.._ • • 1. r ° - vii. Illinois Pond Weed in Lakes: No issues observed. viii. Muskgrass (Chara): 4 &7. Medium to high density. ix. Palms: 3. Unwanted palms should likely be sprayed out before they become mature and a future maintenance issue for the District. x. Red Ludwigia in Lakes: No issues observed. xi. Spatterdock/Lily Pads in Lakes: No issues observed. xii. Torpedo Grass in Lakes: No issues observed. xiii. Widgeon Grass: 3 &7. Medium to high density. 5. Perimeter Fence The fence on the western boundary of tract Al adjacent to the south bank of lake 3 continues to have debris on it that should likely be removed to prevent damage to the fencing. The fencing along Clearview Way has been removed during the exotic species removal of the new designated conservation areas by the vendor. The District may wish to consider adding additional fencing to secure the boundaries of the community, and this may very well be a possible requirement. A portion of fence was found falling over on the Inframark Annual Management Report 6 Agenda Page#147 1611A5 southern boundary of tract B3 where the border is shared with Colony Golf that should be repaired. p • Ito fl .r • The wooden fencing between the District and Colony Golf on the southern boundary of tract B12 seemed to be in good condition with no apparent issues. The fence on the western boundary of tract Al 1 adjacent to lake 2 and Red Drive have heavy vegetation growin• on it in 'laces that should be s•ra ed out. tit .4 Y•.1•+J ' '.F•.' t Ci A r • is E' �}Y� ' x • s i} •t 6. Preserves Invasives are beginning to gain a foothold in many of the conservation areas and should be addressed soon to avoid further dispersion. Invasive exotic Long Ear Leaf Acacia trees were noted along the western boundary of tract A10 and should be removed to avoid further development of an ongoing seed source for future growth within the conservation areas. Young saplings were also observed in tract B12 north and east of lake 12. Removal of invasives in the perimeter boundaries is an important measure to help keep additional new growth from spreading into interior conservation areas. Inframark Annual Management Report 7 1 6 I 1 A 5 Agenda Page#148 • K4w ... , , , Even more Long Ear Leaf Acacia trees were found in H4 on west bank of Lake 4. With the development of the adjacent parcel to the west, now is likely a great time to have any juvenile plants to be addressed before they mature. The exotic species removal by the vendor on the new parcel along Colonial Court appears to be complete. The District may wish to develop a plan to help native plants become established and prevent exotics from taking hold in the area once again. • . • i a , • is 1 Pip, , - .fit Sightings of Long Ear Leaf Acacia in a section of tract B1 between holes 7 and 12 are increasing due to seed source on neighboring property of Colony Golf and should be addressed. The number of fruit pods on these trees help this plant to easily develop in new areas. •'tee.. •, �,� '�.•, � � ., r -�I�y' .• +4,, - ,, yir'. Inframark Annual Management Report 8 1 6 I 1 A 5 Agenda Page#149 Various small Long Ear Leaf Acacia and Brazilian pepper trees were observed south of building 14 and lake 19. Saplings were also noted along the wooden fence in tract A2. 644 • viiM fi t � ' ' • ' t 4 r v • 7. Roadways/Gutters Minor 'utter crackin•, but no other issues observed. 4 , 8. Sidewalks The cart path behind the gatehouse off of Blue Boulevard appears to have a lip adjacent to both street gutters and should likely be ground down to avoid a trip hazard. to -1111.11104E- Inframark Annual Management Report 9 1611A5 Agenda Page#150 9. Stormwater System a. Control Structures: Control structure C remains to be cleaned out to ensure proper flow to Tract B2. rr5 k t ?C' ,:- ,wit,, -� rNr fAif t '- 1 ia.' �3�\ .4.,;~, /ate .. .q #fi/1llll l l t AI 9 r iiiritifliniii • April 2019 April 2021 Drain . The vegetation growing out of C-11 should be sprayed out to ensure proper flow. , :, l..• .d 'fir tte4 �F $ •% y?"r'. `R tl 't lit C W r l Drain structure C-111 on the SW corner of Lake 3 continues to be monitored. The roots are continuing to grow inside the drain and� could cause damaged to the structure. g JA-,),A.;f,:s,i1.--,-±„.3,4:1\" ' ,, -...--, _ .,= '''\N .1/4,N, - ,« *".,..‘ f.',.\\ 4. ;4:414116, ,__ + r Ni. L.'Atk\ \ ,‘‘k\,, Inframark Annual Management Report 10 1611A5 Agenda Page#151 C. Erosion: No issues observed. d, Lake Drainage Pipes: No issues observed. e. Inter-Connect/Drain Pipes: R-6 should be cleaned out prior to the rainy season to ensure no blockages form as a result of the debris held back from the carp grating. ., >3 1 '�... , -.. ` �. ' J ..mil, o ,,. ! ; ,,,3 , : . r `fir i 4 yy .., a 1 ‘ . i - .„ .,. , . c, . , ._ „... , .i.... .; ...... =, , ,, , , . . , I -,4 yrir.,,. - The carp barrier on interconnect G-6 remains broken and needs to be repaired to keep the carp from moving to lake 3. The plastic tubing should be replaced with more substantial material as observed above. NN r*** .: .!,y ZV.ce+ f. Roadway Catch Basins: No new issues observed. 10. Residential Complaints/Concerns No issues reported. 11. Fish/Wildlife Observations: ❑ Bass ❑ Bream ❑ Catfish ❑ Egrets ❑ Gambusia ® Herons ❑ Coots ❑ Gallinules ®Anhinga ❑ Cormorant ❑ Osprey ❑ Ibis ❑ Woodstork ❑ Otter ❑ Alligators ❑ Snakes ❑ Turtles ❑ Other: Ducks Inframark Annual Management Report 11 The Quarry Community Development District 1 6 I 1 A 5 Inframark,Infrastructure Management Services 210 N.University Drive,Suite 702,Coral Springs,Florida 33071 Tel.(954)603-0033•Fax(954)345-1292 DATE: June 30, 2021 Mr. Derrick Johnssen CLERK OF THE CIRCUIT COURT Finance Department Derek.johnssen@collierclerk.com FROM: Alison Bruce Recording Secretary RE: Minutes of: May 17, 2021 approved at June 21, 2021 meeting Enclosed for your records is a copy of the minutes of the above referenced meeting of the Quarry Community Development District, which are to be kept on file for public access. Encl: Cc: Mr. Wes Haber 1 6 I 1 A 5 MINUTES OF MEETING THE QUARRY COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Quarry Community Development District was held Monday May 17, 2021 at 1:00 p.m. at the Quarry Beach Club, 8975 Kayak Drive, Naples, FL. Present and constituting a quorum were: Stanley T. Omland Chairman Lloyd Schliep Vice-Chairman Timothy B. Cantwell Assistant Secretary William Flister Assistant Secretary Dean Britt Assistant Secretary Also present were: Justin Faircloth District Manager Wes Haber (via phone) District Counsel Albert Lopez District Engineer Scott Garvin Quarry Community Association Billie Jo Parker Quarry Community Association Bob Radunz Quarry Golf Club Rodney Whisman Quarry Golf Club Various residents The following is a summary of the discussions and actions taken at the May 17, 2021 Meeting of The Quarry Community Development District's Board of Supervisors. FIRST ORDER OF BUSINESS Call to Order • Mr. Omland called the meeting to order and Mr. Faircloth called the roll, and a quorum was established. 1 1611A ! May 17,2021 Quarry CDD SECOND ORDER OF BUSINESS Pledge Allegiance • The Pledge of Allegiance was recited. THIRD ORDER OF BUSINESS Approval of Agenda • CPH items were handed out to the Board which were listed on the agenda but not presented in the agenda package. • Mr. Flister's report was emailed out to the Board • The Quarry Golf Club presented a proposal from Glase Golf, Inc to repair lake 47/hole 14. On MOTION by Mr. Schliep seconded by Mr. Britt with all in favor the agenda was approved as amended with the items noted above. 5-0 FOURTH ORDER OF BUSINESS Public Comments on Agenda Items • No public comments were received on agenda items. FIFTH ORDER OF BUSINESS Engineer's Report A. Engineer's Written Report • Mr. Lopez presented his monthly report to the Board. • He mentioned the concerns raised by the resident and he visited the property at 9160 Flint Court. Mr. Lopez agreed that minimal remedial work was required by Quality Enterprises under their warranty. B. CPH Lake Assessment and Water Quality Monitoring Proposal —v.1 C. CPH Lake Assessment and Water Quality Monitoring Proposal —v.2 • Item was tabled for the June meeting. The Board requested further revisions be made. 2 1 6 I 1 A 5 May 17,2021 Quarry CDD D. CPH Buoys Coordinates Exhibit • The on land property corners have been installed and the coordinates for water bound property corners have been provided to the District Manager for future buoy installation. E. CPH Preserve Inspection Proposal • The Board approved the CPH Preserve Inspection proposal in the amount of $7,240 for four inspections. A MOTION by Mr. Flister seconded by Mr. Schliep for approval of the CPH Preserve Inspection Proposal in the amount of$7,240 for four inspections, vote was not called. • The Board agreed that the inspection would only occur at the direction of Mr. Flister. F. CPH QE Phase II and III Warranty Inspection Report • The CPH QE Phase II warranty review was discussed. • One more inspection by boat will be performed with Mr. Schliep • CPH will reach out to QE for any necessary repairs. G. CPH Existing Stormwater Management Lakes Assessment & Maintenance Advisement • The Board requested the document be posted to the website. • The Board requested CPH come up with design options for various situations and pricing estimates for such solutions. H. Quarry Golf Course Lake 47 Test Case Discussion • The test case was reviewed and discussed by the Board. 3 161 1A5 May 17,2021 Quarry CDD On MOTION by Mr. Cantwell seconded by Mr. Schliep with all in favor authorizing the Chair to develop and agreement to reimburse Quarry Golf Course for lake restoration expenses on Lake 47/Hol3 14 which is subject to the Golf Course clarifying tonnage/load quantities and having CPH having oversite of the work in the amount not to exceed $75,000 was approved. 5-0 I. FY2021 Additional Lake Bank Restoration Recommendations • This item was tabled, but the Chairman requested CPH begin to develop the necessary actions to develop a program of repairs over the next five years. J. CPH CES Landing Sites Permitting/Design Proposal • This item was tabled. The Board requested CPH, CES and Mr. Schliep work together on this item. SIXTH ORDER OF BUSINESS District Manager's Report A. Approval of the April 19, 2021 Minutes • The Board requested the following changes to the minutes: o "for variances" was added at the end of the first sentence of line 104. o The following sentence should read "As the QCA has a process to attach documentation of historical approvals on each parcel/home" o reqeust on line 165 was corrected to "request". o lake trimmings was changed to "weed harvesting" on line 208. On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor the minutes of the April 19, 2021 meeting were approved as amended. 5-0 B. Acceptance of the Financial Report and Approval of the Check Register and Invoices of April 2021 4 1 61 1A5 May 17,2021 Quarry CDD • Mr. Faircloth presented the financial report and check register and invoices for April 2021. He asked if there were any questions as it relates to the financials. On MOTION by Mr. Britt seconded by Mr. Cantwell with all in favor the financial report of April 2021 was accepted, and the check register and invoices of April 2021 were approved. 5-0 • The Board requested Inframark adjust the trend report to only reflect actual and contracted expenditures planned at the time of the reporting period. C. Consideration of Resolution 2021-06, Approving the FY2022 Tentative Budget and Setting the Public Hearing for August 16, 2021 On MOTION by Mr. Schliep seconded by Mr. Flister with all in favor resolution 2021-06 approving the FY2022 tentative budget and setting the public hearing for August 16, 2021 was adopted. 5-0 • The Board requested Field- R&M — Lake Trimming be changed to Weed Harvesting. D. Follow-up Items a. Status of Resident Complaints b. Variance Easement Report Update c. Letter from Berger, Toombs, Elam, Gaines & Frank SEVENTH ORDER OF BUSINESS Attorney's Report A. Attorney's Written Report • Mr. Haber reviewed his report with the Board. 5 May 17,2021 QUPry DIi 1 A 5 B. License Agreement for Installation of Improvement Discussion On MOTION by Mr. Cantwell seconded by Mr. Flister with all in favor the Board agreed to proceed with recording of any future variance easements granted by the Board was approved. 5-0 • The Board requested that previous approvals be placed on the next agenda for discussion by the Board if recorded agreements are necessary. EIGHTH ORDER OF BUSINESS Old Business Items A. FEMA Update • Mr. Chairman provided an update on FEMA. B. Assessment Methodology — Golf Course Report • This item was tabled. NINTH ORDER OF BUSINESS New Business Items A. QCA Land Swap Request On MOTION by Mr. Cantwell seconded by Mr. Britt with all in favor the Board voted to approve the request from the Quarry Community Association and allow the chairman to execute the Owner's Consent to File working with the District and County Staff as limited in the Owner's Consent to File document was approved. 5-0 • The Chairman requested CPH look into the LME and its impact to Collier County. • Parcels to possibly transition between QCA/QCDD will need to be identified. • Mr. Schliep will work with CPH/CES to identify areas to be considered. 6 1611A5 May 17,2021 Quarry CDD B. Florida Reserve Study and Appraisal Mr. Schliep MOVED seconded by Mr. Cantwell to table the reserve study discussion. On VOICE vote Mr. Schliep, Mr. Britt, Mr. Cantwell and Mr. Flister voting AYE and Mr. Omland voting NAY to table the reserve study discussion was approved. 4-1 • Mr. Cantwell noted that reserves must be in the budget to maintain the assets of the District. TENTH ORDER OF BUSINESS Supervisor Request/Report A. Reports i. Chairman's Report: Mr. Omland • None. ii. Lake & Preserve: Mr. Flister i. CES Preserve Maintenance Contract Amendment Discussion • Mr. Flister provided a report and commented on the Willows which do not need to be removed in conservation area #2 and requested staff to work with CES to reduce the contract correspondingly ii. Inframark Monthly Inspection Report Proposal On MOTION by Mr. Flister seconded by Mr. Britt with all in favor to have Inframark perform quarterly inspections at a cost of$1,250 per inspection was approved. 5-0 ELEVENTH ORDER OF BUSINESS Audience Comments • Audience comments were received. 7 161 1A5 May 17,2021 Quarry CDD • Mr. Garvin commented on his previous comments regarding the QCA land swap request and apologized to the Board for any misunderstanding. TWELFTH ORDER OF BUSINESS Adjournment • There being no further business, On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor the meeting was adjourned at 4:19 p.m. 5-0 /' - /2G _ —re,4.0%-e, ecretary/Assistant Secretary C auperson/Vice-Chairperson v 8 1 61 13 1 cKA 2112111411 CLERK OF COURTS PUBLIC RISK MANAGEMENT OF FLORIDA 3434 Hancock Bridge Parkway, Suite 203 Fort Myers, Florida 3903 Telephone: 800-367-1705 Facsimile: 239-656-1066 MEMORANDUM June 8, 2021 To: Collier County Clerk of Court Attention-Minutes Department From: Mary Ann Whitney Secretary, PRM Board of Directors Re: Filing of Intergovernmental Cooperative Agreement for City of Naples Airport Authority [joined PRM Property & Casualty Pool effective 6/1/21] ****************************************************************************** This memorandum accompanies a copy of an Intergovernmental Cooperative Agreement, together with an Affidavit regarding authenticity, executed by several different governmental agencies throughout the State of Florida for the purpose of providing insurance through Public Risk Management of Florida. This Agreement, together with the Affidavit of Authenticity, is being delivered to you for filing by your Minutes Department in compliance with Florida Statute Section 163.01,the Florida Interlocal Cooperation Act of 1969. A copy of the relevant section of that statute is attached for your reference. As you will note,the Statute does not define what filing is,for the purposes of this provision. Our research has indicated that because this Agreement is not directly related to real or personal property,that filing is appropriate with your Minutes Department. It is requested that this document, together with the Affidavit as to authenticity, be accepted by the Minutes Department and "filed" pursuant to the Statute. Should there be any questions or comments regarding this request,please do not hesitate to contact me at 239-314-8739. Attachments 161 1B 1 AFFIDAVIT STATE OF FLORIDA COUNTY OF LEE BEFORE ME, the undersigned authority, duly authorized to take acknowledgments and administer oaths,personally appeared MARY ANN WHITNEY,who after being first duly sworn, deposes and says 1. I, Mary Ann Whitney, am the Secretary of Public Risk Management of Florida, an association of governmental agencies,pursuant to Florida Statute section 163.01,the Florida Interlocal Cooperation Act of 1969. 2. I am the Secretary of said Association and responsible for maintenance of all Association documents. 3. Attached hereto is the true and correct copy of the Intergovernmental Cooperative Agreement that is signed by the parties therein and identified on the signature page attached thereto. 4. This affidavit is made for the purpose of accompanying the Agreement and is provided to Clerk of Courts for the purpose of filing in the public records of the county in which the agencies who are signatories to the Agreement are located, in compliance with Florida Statute section 163.01 (11). FURTHER AFFIANT SAYETH NOT. L., 4 MARY N WHITNEY Secretary, Public Risk Management of Florida SWORN AND SUBSCRIBED before me this 8th day of June , 2021 , by MARY ANN WHITNEY, Secretary of Public Risk Management of Florida, who is persona o njto me or who has produced as identification. My Commission Expires: i0\-t J,) -) ffi :vvupcy. cam" Notary Public eft,. DORIS EBERNARD Doris E. Bernard Commission t GG 192894 Type/Print Name of Notary • i,v 7 Expires M'6,2022 ''FOF r. Bawd n.0 Mgt wiry Sonia' Commission No. GG192894 161181 Florida Statutes Title XI COUNTY ORGANIZATION AND INTERGOVERNMENTAL RELATIONS Chapter 163 INTERGOVERNMENTAL PROGRAMS 163.01 Florida Interlocal Cooperation Act of 1969.— Su bsection: (11) Prior to its effectiveness, an interlocal agreement and subsequent amendments thereto shall be filed with the clerk of the circuit court of each county where a party to the agreement is located. However, if the parties to the agreement are located in multiple counties and the agreement under subsection (7) provides for a separate legal entity or administrative entity to administer the agreement, the interlocal agreement and any amendments thereto may be filed with the clerk of the circuit court in the county where the legal or administrative entity maintains its principal place of business. 1611B1 THE INTERGOVERNMENTAL COOPERATIVE AGREEMENT A CONTRACT AND BY-LAWS FOR PUBLIC RISK MANAGEMENT OF FLORIDA S ( MANS kiC jz CL Ft ---1 4, m * °PFLoilvo-P' (PRM) AS AMENDED AND RESTATED THROUGH APRIL 27, 2018 I6I1 B 1 THE INTERGOVERNMENTAL COOPERATIVE AGREEMENT (A CONTRACT AND BY-LAWS FOR PUBLIC RISK MANAGEMENT OF FLORIDA) (PRM) INDEX ARTICLE # DESCRIPTION PAGE # Article 1 Name and Duration 1 Article 2 Definitions and Purpose l - 3 Article 3 Power and Duties 3 - 4 Article 4 Participation and Term 5 - 6 Article 5 Commencement of the Pool 6 Article 6 Board of Directors of the Pool 6 - 9 Article 7 Board of Directors Meetings 9 - 10 Article 8 Pool Officers 10 - 11 Article 9 Finances and Risk Management Pool 11 - 12 Article 10 Excess Insurance 13 Article 11 Obligations of Members 13 - 15 Article 12 Liability of Board of Directors or 15 Officers of the Pool Article 13 Additional Insurance 15 Article 14 Settlements 15 Article 15 Coverage& Indemnity Dispute Resolution 16 Article 16 Contractual Obligation 16 - 17 Article 17 Expulsion or Termination of Members 17 - 18 Article 18 Special Provisions for Deferred Funding 18 Article 19 Termination of Pool 18 1611B1 ARTICLES OF ASSOCIATION AND BY-LAWS OF PUBLIC RISK MANAGEMENT OF FLORIDA (PRM) BE IT KNOWN THAT: The below named public agency or agencies of the State of Florida for the purpose of forming a risk management and self-insurance association pursuant to the terms of Florida Statutes Sections 768.28(16)(a), 440.57, and 163.01, Florida Interlocal Cooperation Act of 1969, do bind themselves contractually to and adopt these Articles of Association and By-Laws. Article 1 - Name and Duration 1.1 Name. The name of this association shall be Public Risk Management of Florida, referred to hereinafter as the Pool. Article 2 - Definitions and Purpose 2.1. Definitions. As used in this agreement, the following terms shall have the meaning hereinafter set out: "Annual Payments": The amount each Member must annually pay to fully fund the costs of the full operation of the Pool. "Aggregate Excess Insurance": Stop Loss Insurance purchased by the Pool from insurance companies and/or Lloyd's of London, or other similar entities, approved by the Board of Directors, or any committee appointed by the Board for such purpose, to protect the Pool from an accumulation of losses in any policy year should the "Loss Fund" be exhausted. Once the "Aggregate Excess Insurance" is triggered, any further losses within the "Self Insured Retention" will be paid by this coverage. "Fiscal Year": The fiscal year of the Pool shall begin on October 1st and end on September 30th. "Joint Self-Insurance" or "Self-Funded": A self-insurance or self-funded program in which Members agree to annual payments to fully fund the operations of the Risk Management Pool. "Loss Fund": The fund established to pay claims occurring within the "Self Insured Retention." The "Loss Fund" represents the maximum amount for which the Pool is exposed in a single policy period. 2 � 61181 "Maintenance Deductible": The amount paid by the "Member"before the loss is paid by the "Self Insured Retention." This is a nominal amount designed to protect the "Loss Fund" from small claims. The "Maintenance Deductible" applies only to property, automobile physical damage and crime losses." "Member Deductible": The portion or monetary amount that PRM will invoice member as mutually agreed. "Member Self-Insured Retention": A layer of assumed risk where the Member self- insures a pre-determined amount of loss per occurrence. "Members": The public agencies of the State of Florida which initially or later enter into the intergovernmental association established by this Intergovernmental Agreement. "Multi-Loss Coverage": This multiple loss protection limits a loss involving more than one line of coverage from one occurrence (i.e. property, liability, workers' compensation) to one "Self Insured Retention." "Policy Year": The policy year of the Pool shall be from the date of inception of coverage to the termination of said coverage, or on other dates as approved by the membership in attendance at a scheduled meeting of the membership. "Pool": Public Risk Management of Florida established pursuant to the Constitution and the Statutes of the State of Florida by this Intergovernmental Agreement. "Preferred Member/membership": A Member with the Pool, who finds several benefits in pooling, including the multiple benefits to be achieved in participating in all available lines of coverage. "Risk Management": A program attempting to reduce or limit casualty and property losses to Members and injuries to employees caused by or arising out of the operations of Members. Where claims arise the Pool will provide processing of claims, investigation, defense and settlement within the financial limits of the Pool as established in accordance with this Intergovernmental Agreement and will tabulate such claims, costs and losses. "Risk Management Pool": A fund of public monies established by the Pool to jointly self-insure and self-fund property coverages, general liability, automobile liability, professional liability, public officials' liability and workers' compensation, and any other coverage lines approved by the Board of Directors. "Self-Insurance": The decision by a public agency not to purchase insurance coverage for risks below certain limits; to seek and maintain immunities provided by law for a noninsured public agency; to rely upon its financial capabilities to pay covered losses which occur in case third-party claims are held valid and not barred or capped by available immunities: and to purchase some insurance to protect against catastrophic or aggregate losses. The purchase of liability insurance by the Pool or any of its Members is not intended to, and does not, waive sovereign immunity. Purchase of liability insurance shall only be pursuant to Florida Statutes, which allow for the purchase of insurance by the Pool without the waiver of sovereign immunity 3 161 1B 1 by the Pool or any of the Pool's Members and is not pursuant to any other statute of the State of Florida. "Self Insured Retention": A layer of assumed risk where the pool or Member self-insures a pre-determined amount of loss per occurrence. "Specific Excess Insurance": Insurance purchased by the Pool from insurance companies and/or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, that provides catastrophe coverage up to the limit(s) chosen by the Pool. "Standard Member/membership": A Member with the Pool, who finds several benefits in pooling and who values pricing and the ability to not participate in all available lines of coverage. 2.2. Purpose: The Pool is a cooperative agency voluntarily established by Members as set forth in Florida Statutes Sections 163.01, 768.28 and 440.57 for the purpose of seeking the prevention or lessening of casualty and property losses to Members and injuries to persons or employees which might result in claims being made against Members. The purpose of this Pool is to carry out and effect the agreed upon functions and purposes of this Intergovernmental Agreement as stated herein. It is the intent of the Members of this Pool to create an entity, which will administer a Risk Management Pool and utilize such funds to defend and protect, in accordance with this Intergovernmental Agreement, any Member of the Pool against liability for a covered loss. This Agreement shall constitute the substance of a contract among the Members. All funds contained within the Risk Management Pool are funds directly derived from its Members who are public agencies of the State of Florida. It is the intent of the Members in entering into this Intergovernmental Agreement that, to the fullest extent possible, the scope of Risk Management undertaken by them through a Joint Self-Insurance or Self-funded program using governmental funds shall not waive, on behalf of any Member or such Member's employees as defined in Florida Statutes Section 768.28, any defenses or immunities therein provided, or provided by the laws of the State of Florida. The Pool and the Members of this Pool intend to effect no waiver of sovereign immunities through their use of public funds retained within the Risk Management Pool. Such funds being utilized to protect against risks in accordance with Florida Statutes Section 768.28 are not intended to constitute the existence, issuance or purchase of a policy for insurance. This Intergovernmental Agreement is not to be considered such as would cause this Pool to be treated as an "insurer" within the meaning of any legislation giving risk to liability or applicability to "insurer", for damages, costs, fees or expenses, etc., under Florida Statutes Sections 624.155, 626.9541, 626.9561, 627.426, 627.428, or other statutes applicable to Public Entity Self Insurance in the State of Florida. 2.3 Non-Assessable: Public Risk Management is a non-assessable pool. 4 161181 Article 3 - Power and Duties 3.1. Powers: The powers of the Pool to perform and accomplish the functions and purposes set forth herein, within the budgetary limits and procedures set forth in this Intergovernmental Agreement, shall be as follows: 3.1.1. To establish By-Laws and Amendments to By-Laws, and operational procedures governing the operations of the Pool which are consistent with this Intergovernmental Agreement as set forth in Florida Statutes Sections 768.28, 163.01 and 440.57, and to not waive any sovereign immunity not waived statutorily under Florida Law, and to expressly negate any past, present, or future waiver of sovereign immunity under Florida Statutes, and to continue to negate any waiver of sovereign immunity for discretionary and planning functions of government. 3.1.2. To employ agents and independent contractors and approve the rate of compensation, benefits and/or contracts that apply to Pool employees, Pool officers and service providers, and to ensure all benefits of Florida Statutes Section 163.01(9)(a) and all other applicable Florida Statutes. 3.1.3. To lease real property and to purchase or lease equipment, machinery or personal property necessary for the carrying out of the purpose of the Pool. 3.1.4. To carry out educational and other programs relating to risk reductions. 3.1.5. To cause the creation of this Pool and see to the collection of funds for the continued administration of the Risk Management Pool. 3.1.6. To purchase Aggregate Excess Insurance, Reinsurance, Excess Property Insurance, Excess Workers' Compensation Insurance, Excess Liability Insurance, Pollution Insurance, Boiler & Machinery Insurance and Specific Excess Insurance, and any other form of insurance deemed reasonable and necessary by the Board of Directors to promote or serve the powers and duties of the Pool to supplement the Risk Management Pool without such being a waiver of sovereign immunity under Florida Law. 3.1.7. To establish reasonable and necessary loss reduction and prevention procedures, which shall be followed by the Members. 3.1.8. To provide Risk Management services including the defense of and settlement of claims and to have the authority granted by Florida Statutes Section 768.28(16). 3.1.9. To negate, pursuant to Florida Statutes, any implication of a waiver of sovereign immunity, and to negate any waiver of sovereign immunity other than to the extent required under Florida Statutes Section 768.28. 3.1.10. To act solely within the budgetary limits established by the Members to carry out such other activities as are necessarily implied or required to carry out the purposes of the Pool. 5 1611B1 3.1.11. To sue or be sued as a separate legal entity. Article 4 - Participation and Term 4.1. Term: The initial term of the Pool shall be from 12:01 a.m. on October 1, 1987 to 12:01 a.m. September 30, 1989. After the initial two (2) year term of the Pool, the term shall automatically be renewed for an additional term of one (1) year each. Provided, however, the Members may, through the manner provided in Section 6.9.4., terminate the Pool as of the end of the initial or any additional term during which such action is taken. 4.2. Notice of Intent to Withdraw: So long as the Pool shall continue in existence, any current or new Preferred Member joining the Pool shall remain a Member for an initial two-year term, except a new Member coming into the Pool after the first day of the policy year shall be obligated to be a member for not less than eighteen (18) months. A new Preferred Member's rates will be guaranteed for their initial term. Any Member may withdraw from the Pool at the end of the policy year upon serving on the Pool at least forty-five (45) days prior with a written Notice of Intent to Withdraw. Such notice shall be addressed to the Executive Director of the Pool and shall be accompanied by a resolution of the governing body of the Member with intent to withdraw from the Pool. 4.3. Actual Withdrawal/Required Withdrawal. Any Member who has served the Executive Director with prior written notice of its intent to withdraw at least forty-five (45) days prior to the beginning of the policy year for which the notice to withdraw is applicable, shall serve in writing to the Executive Director, no later than ten (10) days prior to the beginning of such policy year, a verification as to whether the Member intends to actually withdraw from the Pool at the end of the current policy year. Failure to serve such verification no later than ten(10) days prior to the beginning of the policy year for which notice of intent to withdraw is applied, shall be deemed a revocation of the prior notice of intent to withdraw; thus, binding the Member to the Pool for the ensuing policy year. An action to expel a Member shall be taken by the Executive Board in the manner described in Article 17 hereafter. 4.4. Admission of New Members: The Pool's Executive Board shall establish and periodically review standards and the approval process for the admission of new Members. Upon approval of these standards and of the approval process for admission by the Board of Directors, the Pool's Executive Board may grant or deny admission to proposed new Members based upon such criteria. Consideration of new Members may be communicated to all PRM Board Members by the Executive Director for any information or feedback that a Member may have regarding the prospective member. Article 5 - Commencement of the Pool 5.1. Commencement Date: The Pool shall commence operations on October 1, 1987. 6 1611B1 Article 6 - Board of Directors of the Pool 6.1. The Board: There is hereby established a Board of Directors (sometimes hereinafter referred to as the "Board") of the Pool. Each Member shall appoint one (1) person to represent that body(the "Representative") on the Board of Directors along with another person to serve as an alternate representative (the "Alternate") when the Representative is unable to carry out that Representative's duties. The Representative and Alternate shall be appointed in writing by the governing body of the Member and a copy of the written appointment shall be provided to the Executive Director of the Pool. Once such appointments are made known to the Pool, the persons appointed shall remain in office until the Pool receives evidence in writing of the appointment of other persons by the Member's governing body. The Representative and Alternate selected must be an employee, an appointed official or elected official of the entity. 6.2. The Chair and Vice Chair: The Board of Directors shall, commencing the 2003 fiscal year, select a Chair for a three year term. Thereafter, the Board of Directors shall bi-annually select a Chair to serve a two year term. The term of office for the Chair shall begin on the 1 St day of a fiscal year and expire on the last day of a fiscal year. The Chair shall preside at all meetings of the Board. The Chair shall vote on all matters that come before the Board. The Chair shall have such other powers as may be given from time to time by action of the Board. The Board of Directors shall bi-annually select a Vice Chair during the final quarter of each two-year term to serve during the subsequent two-year term. The term of office for the Vice Chair shall begin on the first day of a fiscal year and expire on the last day of a fiscal year. The Vice Chair shall carry out all duties of the Chair of the Board during the absence or inability of the Chair to perform such duties and shall carry out such other functions as are assigned from time to time by the Chair or the Board of Directors. The Board of Directors may from time to time appoint other officers of the Board. 6.3. Board Responsibilities. The Board of Directors shall have the responsibility for: (1) hiring of Pool officers, agents/brokers, and independent contractors; (2) setting of compensation for Executive Director, agents/brokers and all persons, firms and corporations employed by the Pool; (3) approval of amendments to the Intergovernmental Agreement; (4) approval of the expulsion of Members, except that the approval may be delegated to the Executive Board under Article 4 above, or by such procedures as are contained in the motion making delegation; (5) approval and amendment of the annual budget of the Pool; (6) approval of the operational procedures developed by the Executive Director; (7) approval of educational and other programs relating to risk reduction; (8) approval of reasonable and necessary loss reduction and prevention procedures which shall be followed by all Members; and (9) termination of the Pool in accordance with this Intergovernmental Agreement. 6.4. Voting: Each Preferred Member shall be entitled to one (1) vote on the Board of Directors. Standard Members have no entitlement to any vote on the Board of Directors, or otherwise. Such vote by each Preferred Member may be cast only by the Representative of the Preferred Member or in the Representative's absence by the Alternate. No proxy votes or absentee votes shall be permitted. Voting shall be conducted by show of hands or any method established by the Board that is consistent with Florida law. A simple majority vote of those Representatives present shall be required to pass on any motion. On such matters, the Chair and 7 1611B1 the Executive Director of the Pool shall cause each Member's Representative and Alternate to receive the proposed ballot which will include at a minimum the text of the motion to be voted upon and the purpose of such motion. Only the Representative or the Alternate may vote on such ballots (not both). If both the Alternate and Representative submit ballots, only the Representative's ballot will be counted. Favorable votes by a majority of the Members' Representatives (or Alternates in their absence) entitled to vote shall pass any action unless an action is taken which is subject to 6.9 below, in which case passage will be based on the required number of votes as if each Member's Representative or Alternate was present at a regular or special meeting called to decide such question. 6.5. Representatives: The Representative selected by the Member shall serve until a successor has been selected. The Representative chosen by the Member may be removed at any time by the vote of the Member's governing body. In the event that a vacancy occurs in the position of Representative or Alternate selected by the governing body of a Member, that body shall appoint a successor in writing within 60 days of such vacancy occurring. The failure of a Member to select a Representative or the failure of that person to participate shall not affect the responsibilities or duties of a Member under this Intergovernmental Agreement. 6.6. The Executive Board and other Committees: The Board of Directors shall establish an Executive Board (known previously in this Agreement as Executive Committee). That Executive Board shall consist of the Chair of the Board of Directors, the Vice Chair of the Board of Directors, the Treasurer and four (4) Representatives elected by the Board of Directors. The Executive Board shall have the power to establish both standing and ad hoc committees to further the functions and purpose of this Pool. Unless the Board of Directors establishes some other procedure, the authority for selection of Representatives or Alternates serving on the Executive Board who shall serve on such committees and chair them shall reside with the Chair of the Board of Directors. The Chair of the Board of Directors may appoint non-voting and non- paid persons who are not Members of the Board of Directors to serve on committees of the Pool. The Board of Directors shall, bi-annually select the four (4) Representatives during the final quarter of each two-year term to serve during the subsequent two year term. The term of office for the four (4) Representatives shall begin on the first day of a fiscal year and expire on the last day of a fiscal year. The Executive Board shall have the specific authority and power, as afforded herein by the Board of Directors, to grant binding approval for, and on behalf of, the Pool to bind any and all coverages for both Preferred Members and Standard Members with excess insurers, reinsurers, specific excess insurers, insurance underwriters, insurance wholesalers, insurance brokers and/or intermediaries, and with independent insurance contractors providing and/or affording both insurance and self-insurance coverages to the Pool Members. The Board of Directors shall grant to the Executive Board the authority to approve expenditures, authorize a settlement of claims and suits and take such other action as shall be specifically delegated to the Executive Board. The Executive Board may from time to time appoint interim replacements for any Executive Board member or Pool Officer who vacates their position on the Executive Board, who shall serve until the next scheduled election of such Executive Board member. 6.7. Operating Rules: The Board of Directors may establish rules governing its own conduct and procedure not inconsistent with this Intergovernmental Agreement. 6.8. Quorum: A quorum shall consist of a majority of the Representatives (or in their absence their Alternates) serving on the Board of Directors, or serving on the Executive Board. 8 1611B1 Except as provided in Section 6.9 herein, or elsewhere in this Intergovernmental Agreement, a simple majority of a quorum shall be sufficient to pass upon all matters. 6.9. Super-Majority Voting: A greater vote than a majority of a quorum shall be required to approve the following matters: 6.9.1. Such matters as the Board of Directors shall establish within its rules as requiring for passage a vote greater than a majority of a quorum, provided, however, that such a rule can only be established by a greater than a majority vote at least equal to the greater than majority vote required by the proposed rule. 6.9.2. (Deleted effective June 19, 2009). 6.9.3. Any amendment of this Intergovernmental Agreement, except as provided in Subsection 4 below, shall require two-thirds (2/3) vote of all the Representatives serving on the Board of Directors. 6.9.4. The amendment of this Intergovernmental Agreement to cause a reduction or elimination in the scope of loss protection set out in Article 10 to be furnished by the self-insurance pool derived from payments from the Members, shall require that specific written notice of the proposed change be sent by registered or certified mail to the governing body of the Member and to the Representative serving on the Board of Directors, no less than ten (10) days prior to a meeting of the Executive Board at which this matter is proposed and the amendment as proposed or as amended must receive the approval of at least five (5) out of seven (7) Representatives of the then current Executive Board representing the then Members of the Pool. 6.9.5. In the event of a reduction or elimination in the scope of loss protection as set forth in Article 10 of this Intergovernmental Agreement receives the approval of at least five (5) out of the seven (7) Representatives of the then-current Executive Board as set forth in section 6.9.4, any Member may request, within twenty (20) days of the Executive Board voting to approve such reduction or elimination in the scope of loss protections as set forth in Article 10 of this Intergovernmental Agreement, in writing to the Chair of the Board of Directors that the Executive Board, at a special meeting, take official action to affirm, modify or reverse a decision of the Executive Board affecting the reduction or elimination in the scope of loss protection as set forth in section 6.9.4. The Member shall be provided a full opportunity to explain their position to the Executive Board. The Executive Board,by majority vote, may affirm, modify,reverse or defer the matter to the Board of Directors. Any Member who disagrees with the Executive Board's final determination may request in writing, within twenty (20) days of the Executive Board's final determination, that the Board of Directors take action to affirm, modify or reverse the decision of the Executive Board. The Member shall be provided a full opportunity at a special, or regular, meeting to explain their position to the Board of Directors. The Board of Directors, by majority vote of the Members,may affirm, modify or reverse the final determination or decision of the Executive Board. Failure on the part of any Member to comply timely with the requirements for appealing the determination by the Executive Board to the Board of 9 1611E1 Directors within twenty (20) days thereof shall be deemed to be a waiver of any contractual, legal or other rights of appeal by, or on the part of, that Member. 6.10. Compensation of Board of Directors: No Representative or Alternate serving on the Board of Directors shall receive any salary from the Pool. 6.11 Conflict of Interest: Representatives and Alternates shall abide by the guidelines established by the State Ethics Commission in the performance of their duties, particularly as it applies to conflicts of interest and financial disclosure. Article 7 - Board of Directors Meetings 7.1. Meetings: The Executive Board will establish regular meetings, which shall be held at least three (3)_times a year. Regular meetings of the Board of Directors may be held up to four (4) times a year. The tentative times, dates, and locations of regular meetings of the Board shall be established at the beginning of each fiscal year, and the Executive Board will establish the tentative times, dates and locations of its regular meetings, and give timely and appropriate prior notice of said meetings to all Preferred and Standard Members. Any item of business may be considered at a regular meeting, including the scheduling of future regular meetings. The Executive Director shall attend all Board meetings and Executive Board meetings to serve as an advisor and to report as the administrative officer of the Pool. 7.2. Special Meetings: Special meetings of the Board of Directors or the Executive Board may be called by its Chair, or by any three Representatives (or in their absence their Alternates), with no less than 48 hours prior written notice. The Chair or in their absence, the Vice Chair, shall give ten (10) days written notice of regular or special meetings to the Representative and Alternate of each Member and an agenda specifying the subject of any special meeting shall accompany such notice. Business conducted at special meetings shall be limited to those items specified in the agenda. The time, date and location of special meetings of the Board of Directors shall be determined by the Chair of the Board of Directors, or in their absence, by the Vice Chair. The Executive Board shall have the authority to call such special meetings when: (1) a threatened or actual natural disaster or other emergency exists which requires the scheduling of a special meeting; (2) it is substantially certain that a quorum of voting members will not be present for a scheduled, or upcoming,regular meeting of either the Board of Directors or Executive Board, such that consideration should be given to cancelling or rescheduling said meeting, and/or; (3) the Executive Board is requested to authorize the renegotiation of existing excess, reinsurance and any and all other coverages which occur or take place because of a significant reduction in the availability of existing capacity due to market conditions at that time. 7.3. Conduct of Meetings: To the extent not contrary to this Intergovernmental Agreement and except as modified by the Board of Directors, Robert's Rules of Order, latest edition, shall govern all meetings of the Board of Directors. Minutes of all regular and special meetings of the Board of Directors shall be sent to all Representatives (or in their absence their Alternates) serving on the Board of Directors. 10 161181 Article 8 - Pool Officers 8.1. Officers: Officers of the Pool shall consist of an Executive Director, a Treasurer, a Secretary and such other officers as are established from time to time by the Board of Directors. All Pool officers, with the exception of the Board Secretary who is hired by and reports directly to the Executive Director, shall be appointed by the Board of Directors. 8.2. Executive Director: The Executive Director shall be the chief administrative officer of the Pool and shall in general supervise and control the day to day operations of the Pool and shall carry out the policy and operational procedures of the Pool as established in this Intergovernmental Agreement and by the Board of Directors. Among the Executive Director's duties shall be the following: 8.2.1. The Executive Director may sign, with such other person authorized by the Board of Directors or by the Executive Board, any instruments which the Board of Directors or Executive Board have authorized to be executed and, in general, shall perform all duties incident to the office of Executive Director and such other duties as may be prescribed by the Board of Directors. 8.2.2. The Executive Director shall prepare a proposed annual budget and shall submit such proposals to the Board of Directors, and to the Executive Board. 8.2.3. The Executive Director shall, where necessary, make recommendations regarding policy decisions, the creation of other Pool officers and the employment of agents and independent contractors. At each regular meeting of the Board of Directors and at such other times, as shall be required to do so, shall present a full report of activities and the fiscal condition of the Pool. 8.2.4. The Executive Director shall report annually to all Members on all claims filed and payouts made. 8.2.5. The Executive Director shall, within the constraints of the approved or amended budget, employ all secretarial, clerical and other similar help and expend funds for administrative expenses. 8.3. Treasurer: The Treasurer shall: 8.3.1. Provide general financial oversight of the pool; shall have the authority and shall perform the duties prescribed by the Board of Directors or by direction of any Officer authorized by the by laws or the Board of Directors; shall be selected by the Board of Directors; 8.3.2. In general, perform all duties incident to the office of Treasurer and such other duties as from time to time may be assigned to that individual by the Board of Directors. The Board of Directors shall bi-annually select a Treasurer to serve a two year term. The term of office for the Treasurer shall begin on the 1st day of a fiscal year and expire on the last day of a fiscal year. 11 1611B1 8.4. Secretary: The Secretary shall issue notices of all Board meetings, and shall attend and keep the minutes of same. The Secretary shall have charge of all corporate books, records and papers; shall be custodian of the corporate seal; and shall keep all written contracts of the Pool. In general, the Secretary shall perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned by the Executive Director or the Board of Directors. 8.5. Third Party Delegations: The Board may select a financial institution or certified public accountant to carry out some or all of the functions which would otherwise be assigned to a Treasurer and may select a risk management company or agent to serve as claims administrator or to carry out some or all of the functions which would otherwise be assigned to the Executive Director. The Board may also employ persons or companies as independent contractors to carry out some or all of the functions of officers of the Pool. 8.6. Officer Vacancies: In the absence of the Executive Director, Treasurer or Secretary, or in the event of the inability or refusal of such officers to act, the Chair of the Board of Directors may perform the duties of the Executive Director, Treasurer or Secretary, and, when so acting, shall have all of the powers of and be subject to all of the restrictions upon the Executive Director, Treasurer or Secretary. Article 9 - Finances and Risk Management Pool 9.1. Fiscal Year: The fiscal year of the Pool shall commence on October 1, and end on September 30, of each year. 9.2. Budget: The Board of Directors shall approve a preliminary budget for the administration of the Pool. Copies of all preliminary and final budgets shall be provided to each Member of the Board of Directors. The Board of Directors shall adopt a final budget. 9.3. Annual Payment Factors: In determining the amount of the Annual Payment due from each Member, the Executive Director may consider some or all of the following factors: 9.3.1. Number of employees; 9.3.2. Property values of the Member; 9.3.3. Number and type of vehicles owned by the Member and the use made of the vehicles; 9.3.4. Population of the geographic area represented by the Member; 9.3.5. The payrolls of the Member; 9.3.6. Any unusual exposures presented by the Member; 9.3.7. The operating expenditures of the Member; and 9.3.8. The claims and loss experience of the Member. 12 1611E31 9.3.9 Member Deductible 9.3.10 Member Self-Insured Retention 9.4. Budget Amendments: Budgets may be amended at any time by majority vote of the Board of Directors. 9.5. Payments — Timing: In subsequent years, the Board of Directors may permit the Annual Payments to be made on a monthly or quarterly basis. 9.6. Retirement Fund Obligations: Members shall be both severally and jointly liable to the State of Florida Department of Administration, Division of Retirement for any Florida Retirement Systems' contributions, which are owed by the Pool for Pool employees. Each member shall be responsible for expenses incurred which are attributable to the years of membership as outlined in the Intergovernmental Agreement, Article 11. 9.7. Distribution of Surplus Upon Cessation of the Pool: If in the event that the Pool ceases to exist or operate for any year during which the Pool was in existence, all claims known or unknown have either been paid or provision has been made for such payment, the Board of Directors as then constituted shall distribute surplus funds to the Members who constituted the membership of the Pool in that prior year, after first deducting there from reasonable administrative and other non-allocated costs incurred by the Pool in the processing of the claims in years other than the one in which the claim was made. The distribution among the Members shall be in the same proportion to the total as was their Annual Payment for that year to the Annual Payments of all Members for such year. 9.8. Audit: The Board of Directors shall provide to the Members an annual audit of the financial affairs of the Pool to be made by a certified public accountant at the end of each fiscal year in accordance with generally accepted auditing principles. Article 10 - Excess Insurance 10.1. Specific Excess Insurance: The Pool may purchase Specific Excess Insurance from underwriters of insurance, insurance companies and/or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, in such amounts which shall be approved by the Board of Directors and underwriters, based upon but not limited to the current assets, risk analysis, and loss history of the Pool. The purchase of Specific Excess Insurance does not, and is not, intended to waive sovereign immunity under Florida law. 10.2. Aggregate Excess Insurance: The Pool may purchase Aggregate Excess Insurance from underwriters of insurance, insurance companies and/or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, in such amounts which shall be approved by the Board of Directors and underwriters,based upon but not limited, to the current assets, risk analysis, and loss history of the Pool. The purchase of Aggregate Excess Insurance does not, and is not, intended to waive sovereign immunity under Florida law. 13 1611B1 10.3. Multiple Loss Coverage: The Pool may purchase Multiple Loss Coverage in the event a single occurrence involves more than one line of coverage, limiting the occurrence to a single "Self Insured Retention." 10.4. Losses: The Risk Management Pool (Loss Fund), the Specific Excess Insurance and any optional Aggregate Excess Insurance purchased, shall provide payment for covered losses in any one policy year for members up to the limits approved by the Board of Directors. Should losses in any one policy year extinguish all available funds provided by the Pool then the individual Member or Members whose judgment or settlement of claim has been perfected by Florida law shall be responsible for any additional payment. The Pool shall make payments in the order in which the judgments against the Pool have been entered or settlement of claims have been reached or other manner established at a meeting by the Board. Membership in the Pool shall not preclude any Member from purchasing any insurance coverage above those amounts purchased by the Pool. Article 11 - Obligations of Members 11.1. Member Obligations: The obligations of Members of the Pool shall be as follows: 11.1.1. To budget for, where necessary, to levy for and to promptly pay all payments to the Risk Management Pool at such times and in such amounts as shall be established by the Board of Directors within the scope of this Intergovernmental Agreement. Any delinquent payments shall be paid with a penalty, which shall be set by the Board, but such rate shall not exceed the highest interest rate allowed by statute to be paid by a Florida public agency. 11.1.2. To select, in writing, a Representative to serve on the Board of Directors and to select an Alternate Representative. 11.1.3. To allow the Pool reasonable access to all facilities of the Member and all records including, but not limited to, financial records, which relate to the purpose or powers of the Pool. 11.1.4. To allow attorneys employed by the Pool to represent the Member in investigation, settlement discussions and all levels of litigation arising out of any claim made against the Member within the scope of loss protection furnished by the Pool. 11.1.5. To furnish full cooperation with the Pool attorneys, claims adjusters, the Executive Director and any agent, employee, officer or independent contractor of the Pool relating to the purpose or powers of the Pool. 11.1.6. To follow in its operations all loss reduction and prevention procedures established by the Pool within its purpose or powers. 11.1.7. To report to the Executive Director or their designee within the time limit specified the following items: 14 . 1 61 1B 1 11.1.7.1. To provide on or before November 1 of each policy year of the Pool, the Member's renewal application shall be completed by the member as required by the Underwriters. 11.1.7.2. To report, within five (5) days of receipt, any and all statutory notices of claims, as well as summons and complaint or other pleading before a court or agency involving any claim for which Pool coverage is sought. 11.1.7.3. To report, within ten (10) days of receipt, any oral or written demand for monetary relief for which coverage is sought to the Pool Executive Director. 11.1.7.4. To report to the Executive Director at the earliest practicable moment any information of an occurrence, claim or incident received by the Member and from which the Member could reasonably conclude that coverage will be sought by said Member for such an occurrence, claim or incident. In the event that the items set forth above are not submitted to the Executive Director within the time periods set forth above, the Board of Directors of the Pool, by a vote of a majority of a quorum of the Board, at a regular or special meeting, may in whole or part decline to provide a defense to the Member or to extend the funds of the Pool for the payment of losses or damages incurred. In reaching its decision, the Board shall consider whether and to what extent the Pool was prejudiced in its ability to investigate and defend the claim due to the failure of the Member to promptly furnish timely notice of the occurrence, claim or incident to the Executive Director. The decision of the Board of Directors shall be final. Failure of a Member to abide by these requirements shall also be grounds for expulsion from the Pool. 11.1.8. To make Payment of any required Deductible(s). 11.2. Cancellation/Suspension of Coverage: In the event that a Member has made a material misstatement or failed to comply with an underwriting requirement that created a substantial change in risk exposure, the Executive Board has the authority to cancel or suspend coverage. The Member shall be notified of the reason in writing by the Executive Director and given a reasonable time to take corrective measure prior to the Executive Board's action. Article 12 - Liability of Board of Directors or Officers of the Pool 12.1. Liability of Directors and Officers: The Representatives (or in their absence their Alternates) serving on the Board of Directors or officers of the Pool should use ordinary care and reasonable diligence in the exercise of their power and in the performance of their duties hereunder; they shall not be liable for any mistake of judgment or other action made, taken or omitted by them in good faith; nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care; nor for loss incurred through investment of Pool funds, or failure to invest. No Representative shall be liable for any action taken or omitted by any other Representative. Representatives shall have the immunities provided by law and in particular Florida Statutes Section 163.01. The Pool may purchase insurance providing liability coverage for such Representatives or officers. 15 1611B1 Article 13 -Additional Insurance 13.1. Member's Option to Purchase Additional Insurance: The Pool, through the distribution of the minutes of the Board of Directors or through other means shall inform all Members of the scope and amount of Specific Excess and Aggregate Excess Insurance in force at all times. Membership in the Pool shall not preclude any Member from purchasing any insurance coverage above those amounts purchased by the Pool. Such purchase shall not be construed to waive sovereign immunity of the Members of the Pool or the Pool. The Pool shall make its facilities available to advise Members of the types of additional or different coverages available to Pool Members. Article 14 - Settlements 14.1. Settlement/Advance Notice: Whenever the Pool proposes to settle any pending claim or suit where the amount of that proposed settlement shall exceed Ten Thousand Dollars ($10,000.00), the Member shall be given advance notice of that settlement. Such notice may be given by the establishment of a reserve amount in excess of Ten Thousand Dollars ($10,000.00), provided that the amount of the settlement does not exceed the amount reserved. The officers and employees of the Pool shall, however, endeavor to give specific oral or written notice to the Member's Representative or Alternate of the exact amount of any proposed settlement in excess of Ten Thousand Dollars ($10,000.00) prior to the date at which the Pool proposes to bind itself to pay such settlement amount. The officers, employees or independent contractors of the Pool shall attempt to give the Members, as much notice of the settlement negotiations as is possible under the circumstances of each case. Article 15 -Coverage& Indemnity Dispute Resolution 15.1. After having reviewed a claim forwarded to the Pool, the Executive Director, officer, employee or independent contractor shall, in writing, be permitted to decline to provide coverage or indemnification for such claim not believed to be within-the scope of coverage provided by the Pool. The claim may also be accepted and defense provided but the Pool may reserve the right to withdraw from the defense or to refuse to provide indemnification against the claim in the event that it is later determined that the claim is not properly within the scope of coverage afforded by the Pool. Any Member may request in writing to the Chair of the Board of Directors, that the Executive Board, at a regular scheduled meeting, take official action to affirm, modify or reverse a decision that a particular matter is or is not within the scope of coverage or indemnification provided by the Pool. The Member shall be provided a full opportunity to explain their position to the Executive Board. The Executive Board, by majority vote, may affirm, modify, reverse or defer the matter to the Board of Directors, subject to any insurance or reinsurance contractual obligations. Any Member who disagrees with the Executive Board's determination may request in writing that the Board of Directors, at a regular scheduled meeting, take action to affirm, modify or reverse the decision of the Executive Board. The Member shall be provided a full opportunity to explain their position to the Board of Directors. The Board of Directors, by majority vote of 16 1611B1 the Members, may affirm, modify or reverse the decision of the Executive Board, subject to any insurance or reinsurance contractual obligations. Any Member may seek binding arbitration, if available, pursuant to the Pool's General Coverage Document and, is not required to appeal a coverage or indemnification declination to either the Executive Board or Board of Directors. Article 16 - Contractual Obligation 16.1. Enforcement: This document shall constitute a binding contract under the Florida Interlocal Cooperation Act of 1969 among those public agencies, which become Members of the Pool. The obligations and responsibilities of the Members set forth herein, including the obligation to take no action inconsistent with this Intergovernmental Agreement as originally written or validly amended, shall remain a continuing obligation and responsibility of the Member. The terms of this Intergovernmental Agreement may be enforced in a court of law by the Pool. The consideration for the duties herewith imposed upon the Members to take certain actions and to refrain from certain other actions shall be based upon the mutual promises and agreements of the Members set forth herein. This Intergovernmental Agreement may be executed in duplicate originals and its passage by the Member's governing body shall be evidenced by a certified copy of a resolution passed by the members of the governing body in accordance with the rules and regulations of such public agency, provided, however, that except to the extent of the limited financial contributions to the Pool agreed to herein or such additional obligations as may come about through amendments to this Intergovernmental Agreement no Member agrees or contracts herein to be held responsible for any claims in tort or contract made against any other Member. The Members intend in the creation of the Pool to establish an organization for Risk Management only within the scope herein set out and have not herein created as between Member and Member any relationship of surety, indemnification or responsibility for the debts of or claims against any Member. 16.2. Attorneys' Fees: In any legal action between the parties arising out of this Agreement, any attempts to enforce this Agreement, or any breach of this Agreement, the prevailing party may recover its expenses of such legal action including, but not limited to, its costs of litigation (whether taxed by the court or not) and its reasonable attorneys' fees (including fees generated on appeals) from the other party. Article 17 - Expulsion or Termination of Members 17.1. Expulsion. By the vote of two-thirds (2/3) of the Directors serving on the Board of Directors, and by a vote of at least five (5) out of the seven(7) Members serving on the Executive Board on decisions, determinations or issues involving section 4.3 of this Intergovernmental Agreement, any Member may be expelled. Such expulsion may be carried out for one or more of the following reasons: 17 1611B1 17.1.1. Failure to make any timely payments due to the Pool. 17.1.2. Failure to undertake or continue loss reduction and prevention procedures adopted by the Pool. 17.1.3. Failure to allow the Pool reasonable access to all facilities of the Member and all records which relates to the purpose,powers or functioning of the Pool. 17.1.4. Failure to furnish full cooperation with the Pool's attorneys, claims adjusters, the Executive Director and any agent, employee, officer or independent contractor of the Pool relating to the purpose,powers and proper functioning of the Pool. 17.1.5. Failure to carry out any obligation of a Member which impairs the ability of the Pool to carry out its purpose or powers or functions. 17.1.6. The Preferred Member has given the forty-five (45) days notice described in Section 4.2 and 4.3 above. 17.2. Notice: No Member may be expelled except after notice from the Pool of the alleged failure along with a reasonable opportunity of not less than thirty (30) days to cure the alleged failure. The Member may request a hearing before the Board before any decision is made as to whether the expulsion shall take place. The Board shall set the date for a hearing which shall not be less than fifteen(15) days after the expiration of the time to cure has passed. A decision by the Board to expel a Member after notice and hearing and a failure to cure the alleged defect shall be final. The Board of Directors may establish the date at which the expulsion of the Member shall be effective at any time not less than sixty (60) days after the vote expelling the Member has been made by the Board of Directors. If the motion to expel the Member made by the Board of Directors or a subsequent motion does not state the time at which the expulsion shall take place, such expulsion shall take place-sixty (60) days after the date of the vote by the Board of Directors expelling the Member. 17.3. Responsibilities of Terminated Member: A former Member shall only continue to be fully responsible only for its' portion of any obligations incurred but not satisfied during the period of time they were a Member of the Pool. Such obligations may include, but not be limited to, premiums, loss fund payments, maintenance deductibles, workers' compensations, final audit and administrative fees, etc., owed or unpaid by the former Member. The former Member shall no longer be entitled to participate or vote on the Board of Directors. Article 18 - Special Provisions for Deferred Funding During the fiscal years commencing on October 1, 1987 and ending on September 30, 1990, the entire Annual "Loss Fund" Contribution was not required by the Board of Directors to be paid within the fiscal year to which it was applicable. The difference between the Annual "Loss Fund" Contribution and the amount required by the Board of Directors to actually be paid to the Pool during such year by a Member is referred to herein as Deferred Funding. Members and former Members during any year for which there existed Deferred Funding may be required by the Board of Directors upon recommendation of the Executive Director to pay their applicable 18 • 1611131 portion of the Deferred Funding in subsequent years. Members or former members will be allowed forty-five (45) days after notification to make any payments of Deferred Funding. The amount of any payments required for Deferred Funding as to each Member shall be based upon the same formula as was used in establishing the Annual "Loss Fund" Contribution for that year. Article 19 - Termination of the Pool 19.1. Termination: If, at the conclusion of any term of the Pool, the Board of Directors votes to discontinue the existence of the Pool in accordance with Section 6.9.4., then the Pool shall cease its existence at the close of the then current fiscal year. Under those circumstances, the Board of Directors shall continue to meet on such a schedule as shall be necessary to carry out the termination of the affairs of the Pool. It is contemplated that the Board of Directors may be required to continue to hold meetings for some substantial period of time in order to accomplish this task, including the settlement of all covered claims incurred during the term of the Pool. The Pool shall continue to be fully responsible and obligated to pay covered claims and expenses owed by the Pool, which accrued before the Pool's termination. The money used to pay such covered claims and expenses shall remain with the Pool until such claims are settled and expenses are paid. 19.2. Post-Termination Responsibilities of Member: After termination of the Pool, the Member shall continue to hold membership on the Board of Directors but only for the purpose of voting on matters affecting their limited continuing interest in the Pool for such years as they were Members of the Pool. 19 16I1B1 In witness whereof, this agreement has been executed by the Entity: Naples Airport Authority. The approval of the foregoing agreement was passed by the Entity: Naples Airport Authority on the 2o-th day of "'APB , 2021, and attached hereto, I do hereby execute and the NSA does hereby attest to my signature as evidence that the Naples Airport Authority has approved and hereby becomes a bound signatory member of the "Intergovernmental Cooperative Agreement" for Public Risk Management of Florida, a copy of which is attached hereto, and which is pursuant to Florida Statutes Section 163.01, which commenced its term on October 1, 1987. Naples Airport Authority Ct4Ect ri✓E O,aE L =-"Ztsa /4? - , /— Chair, Public Risk Management of Florida ATTEST: This iQ ' day of rvw{ , 2021 . 20