HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

AGENDA PACKAGE OCTOBER 19, 2020

210 N. UNIVERSITY DRIVE, SUITE 702 CORAL SPRINGS, FLORIDA 33071

Heritage Springs Community Development District Inframark, Infrastructure Management Services
210 North University Drive, Suite 702 • Coral Springs, Florida 33071 Telephone: (954) 603-0033 • Fax: (954) 345-1292

October 13, 2020

Board of Supervisors
Heritage Springs Community Development District Dear Board Members:
A meeting of the Board of Supervisors of the Heritage Springs Community Development District will be held on Monday, October 19, 2020 at 2:30 p.m. at the Heritage Springs Community Clubhouse, 11345 Robert Trent Jones Parkway, New Port Richey, Florida. Following is the advance agenda for this meeting.

Roll Call
Consent Agenda
Approval of the Minutes of the August 17, 2020 Meeting
Approval of the Financial Statements
Public Comment on Agenda Items
Attorney’s Report
American Ecosystems Contract
Engineer’s Report
Manager’s Report
Resolution 2021-1 – Budget Amendment
Motion Assigning FY 2020 Reserves
Audit Engagement for FY 2020
Maintenance Items
Supervisors’ Requests
Audience Comments
Adjournment

I look forward to seeing you at the meeting. Please call me if you have any questions. Sincerely,
Andrew P. Mendenhall, PMP Secretary
/ms

cc:	John Vericker	Robert Dvorak	Cynthia Wilhelm	Steve Brletic

Second Order of Business

2A.

MINUTES OF MEETING
HERITAGE SPRINGS
COMMUNITY DEVELOPMENT DISTRICT
4
The regular meeting of the Board of Supervisors of the Heritage Springs Community
Development District was held on Monday, August 17, 2020 at 2:30 p.m. via conference call
pursuant to Executive Orders 20-52 and 20-69. 8
9	Present and constituting a quorum were:
10
Steve Wertovitch	Chairman
Joe DePompa	Vice Chairman
George Kachavos	Assistant Secretary
Les Elwonger	Assistant Secretary
Ken McEwan	Supervisor 16
17	Also present were:
18
Andrew Mendenhall	District Manager
John Vericker	District Counsel
Robert Dvorak	District Engineer
Jordan Lansford	Inframark IMS 23
The following is a summary of the minutes and actions taken at the August 17, 2020
Heritage Springs Board of Supervisors meeting.
26
FIRST ORDER OF BUSINESS	Roll Call
Mr. Mendenhall called the meeting to order and identified Board members and staff for the
record.
30
SECOND ORDER OF BUSINESS	Consent Agenda
A.	Approval of the Minutes of the May 18, 2020 Meeting
B.	Approval of the Financial Statements
C.	Meeting Schedule for FY 2021

FOURTH ORDER OF BUSINESS	Public Hearing to Consider the Adoption of
the Budget for Fiscal Year 2021 and Levy  of
Non-Ad Valorem Assessments

On MOTION by Mr. DePompa seconded by Mr. Kachavos, with all in favor, the public hearing was opened.

45
46
47
48

On MOTION by Mr. Wertovitch seconded by Mr. Kachavos, with all in favor, the public hearing was closed.

49	Hearing no public comment, 50
51
52
53
54	A.	Resolution 2020-3 – Annual Appropriation and Adoption of the Budget

Mr. DePompa MOVED to adopt Resolution 2020-3 the annual appropriation resolution of the Heritage Springs Community Development District (the “District”) relating to the annual appropriations and adopting the budget for fiscal year beginning October 1, 2020, and ending September 30, 2021 and Mr. Wertovitch seconded the motion.

55
56
57
58
59
60
61
62
	Mr. McEwan noted he gets questions from residents regarding the HOA being able to
absorb the CDD once all the bonds are paid.
o	Mr. Vericker noted the CDD will be ongoing for maintenance purposes the only
difference will be the lack of debt service assessments.
	Mr. DePompa addressed the Series 2008 Bonds assessment levels for FY 2021.
o	Mr. Mendenhall outlined the assessment schedule within the budget.
	Discussion continued on the CDD dissolving and the HOA taking over maintenance
responsibilities with Mr. Mendenhall and Mr. Vericker noting they have never seen this
happen.
	Mr. DePompa addressed the possibility of the CDD taking on the road paving projects.
o	Mr. Vericker noted if the roads were conveyed to the CDD for maintenance
purposes they would no longer be private roads.
	Mr. DePompa addressed Contracts – Lakes noting this line item most likely will increase.
o	Mr. Mendenhall noted they can make the adjustment as it occurs, or they can do a
budget amendment at the end of the fiscal year.

On VOICE vote, with all in favor, Resolution 2020-3 was adopted.

78
79
80
81	B.	Resolution 2020-4 – Levy of Non-Ad Valorem Assessments

On MOTION by Mr. Wertovitch seconded by Mr. Kachavos with all in favor, Resolution 2020-4 a resolution of the Board of Supervisors of the Heritage Springs Community Development District imposing special assessments and certifying an assessment roll; providing a severability clause; and providing and effective date was adopted.

82
83
84
85
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87
88
89
FIFTH ORDER OF BUSINESS	Attorney’s Report
	Mr. Vericker addressed the current COVID-19 situation noting they are authorized to do
the virtual meetings through the end of September. They are waiting to see if the Governor
extends the order. 94
FIFTH ORDER OF BUSINESS	Engineer’s Report
	Mr. Dvorak noted he has nothing specific. He inquired if the sump pump was ever situated
properly.
o	Mr. Wertovitch noted they came back and added a third rope.
o	Discussion followed on the break in the berm and water levels.
	Mr. DePompa noted long term the whole area is a problem and he would like to pursue a
venting going north. He addressed previous comments on the downstream effect noting
he would like to see a copy of the report. 103
SIXTH ORDER OF BUSINESS	Manager’s Report
A.	Discussion of Pond Maintenance – Blue Water Aquatics
	Mr. Wertovitch addressed the ongoing issues with Blue Water Aquatics.
	Mr. Wertovitch noted they received proposals from SOLitude, American Ecosystems and
Aquagenix have been onsite but have not yet provided a proposal.
	Mr. DePompa inquired if Blue Water has been billing monthly even though they have not
been receiving service.
o	Mr. Wertovitch noted they have.
	Mr. DePompa inquired as to when the contract ends.

o	Mr. Mendenhall noted they are typically constructed as evergreen contracts with
the ability to for either the District or the contractor to get out of the agreement with
a 30- or 60-day notice.
o	Mr. Wertovitch read the early termination clause.
o	Mr. Vericker requested he be provided the agreements with Blue Water for his
review with regard to termination.
	American Ecosystems is $45,000 per year / $3,750 per month.
	Initial clean-up could be an additional cost and should be included in the RFP.
	SOLitude notes ponds will be inspected on a weekly basis. Cost is $53,000 per year.

Mr. Wertovitch MOVED to move forward with an RFP for aquatic services and provide termination notice of the contract with Blue Water Aquatics on September 30, 2020 and Mr. McEwan seconded.

	Aquagenix has not provided pricing. 123
124
125
126
127

On VOICE vote with all in favor, the motion was approved.

128
129
**	Banking / Credit Card
	Mr. Mendenhall addressed the summary he provided regarding banks and fees.

On MOTION by Mr. Wertovitch seconded by Mr. DePompa, with all in favor, to move accounts to Valley Bank and obtain district credit card was approved.

	Interest rates, CDs and Money Markets were discussed. 133
134
135
136
137
SEVENTH ORDER OF BUSINESS	Maintenance Items
	Mr. DePompa reviewed the FY 2020 Maintenance plan
	Mr. DePompa noted he will start the FY 2021 Maintenance Plan with the clean-ups. 141
NINTH ORDER OF BUSINESS	Supervisors’ Requests
	Mr. Wertovitch addressed the clubhouse being closed noting they have a new General
Manager and the challenges associated with that.
	Mr. Elwonger addressed the sump skimmer off the entrance to Rain Hollow / Garden
Lakes. It sits back into the wetlands and has been engulfed by the Brazilian Pepper trees.

o	Mr. DePompa addressed the drawings for Village 1. They would like Mr. Dvorak
to identify from the manhole if there is a pipe going in that direction. Is there a
pipe that looks like it is physically entering from the street?
o	Mr. DePompa noted it is Village 1 – Section 1A.
o	Mr. Elwonger noted on the drawing it appears to be skimmer 355.
	Mr. Elwonger reviewed the water level monitoring reports.
	Mr. Elwonger addressed maintenance issues and possibly drafting a letter of understanding
between the CDD and HOA.
	Mr. Kachavos reported when he was out about one month ago all of the pond banks
appeared to be stable. Water levels are low due to the lack of rainfall.
	Mr. McEwan noted most of his issues have been spoken to already. He circulated a resident
complaint regarding 191-F. The resident and next-door neighbor had a drain put in to take
the gutter water away from the houses and into 191-F. The contractor did a poor job. What
they are looking for is a letter from the CDD saying you messed up the bank, fix it.
	Mr. DePompa addressed the sump skimmers in Arlington Oaks noting they seem to have
a developing problem where they were originally with geo-web filled with sand/dirt.
o	To be placed on the maintenance list for Bio-Mass. Mr. Dvorak noted as long as
the geo-web is not ripped, they can reset it, regrade it and back fill it with whatever
they want.
	Mr. Wertovitch addressed the request for a letter from the CDD regarding the lake bank at 167		191-F.
168	o	Mr. McEwan clarified that the letter would be to the resident not the contractor.
169
TENTH ORDER OF BUSINESS	Audience Comments
None.
172
ELEVENTH ORDER OF BUSINESS	Adjournment

On MOTION by Mr. McEwan seconded by Mr. Wertovitch, with all in favor, the meeting was adjourned.

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179
Steve Wertovitch
Chairman

2B.

Heritage Springs
Community Development District

Financial Report

September 30, 2020

Prepared by

Community Development District

Table of Contents

FINANCIAL STATEMENTS

Balance Sheet - All Funds	………………………………………………….	Page 1 Statement of Revenues, Expenditures and Changes in Fund Balances
General Fund	………………………………………………….	Page 2	
Debt Service Fund(s)	………………………………………………….	Page 3 - 4	

SUPPORTING SCHEDULES

Non-Ad Valorem Special Assessments	………………………………………………….	Page 5	

Investment and Cash Balance Report	
………………………………………………….	
Page 6	

SunTrust Bank Reconciliation	
………………………………………………….	
Page 7-8	

Check Register	
………………………………………………….	
Page 9	

Heritage Springs
Community Development District

Financial Statements
(Unaudited)

September 30, 2020

ACCOUNT DESCRIPTION

ASSETS
Cash - Checking Account Due From Other Funds Investments:
Money Market Account Prepayment Account A Redemption Fund Reserve Fund Revenue Fund
TOTAL ASSETS

LIABILITIES
Accounts Payable Due To Other Funds
TOTAL LIABILITIES	Balance Sheet
September 30, 2020

SERIES 2006 DEBT
GENERAL	SERVICE
FUND	FUND

$	176,925	$	-
-	2,144

1,052,747	-
-	2,494
-	-
-	60,034
-	64,110

$	1,229,672	$	128,782

$		6,940	$	- 3,574		-
10,514	-	

SERIES 2008 DEBT SERVICE FUND (REFUNDING)

$	-
1,430

-
- 1
8,888
44,014

$	54,333

$	-
-

-	

TOTAL

$	176,925
3,574

1,052,747
2,494
1
68,922
108,124

$	1,412,787

$	6,940
3,574

10,514	

FUND BALANCES		
Restricted for:		
Debt Service	-	128,782	54,333	183,115	
Assigned to:					
Operating Reserves	87,947	-	-	87,947	
Reserves - Ponds	867,458	-	-	867,458	
Unassigned:	263,753	-	-	263,753	
TOTAL FUND BALANCES	$	1,219,158	$	128,782	$	54,333	$	1,402,273	
					
TOTAL LIABILITIES & FUND BALANCES	$	1,229,672	$	128,782	$	54,333	$	1,412,787	

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending September 30, 2020	

ACCOUNT DESCRIPTION	
ANNUAL ADOPTED
BUDGET	

YEAR TO DATE ACTUAL	
YTD ACTUAL AS A % OF
ADOPTED BUD	

SEP-20 ACTUAL	

REVENUES						
Interest - Investments
Special Assmnts- Tax Collector Special Assmnts- Discounts	$	4,000
399,429
(15,977)	$	12,673
399,429
(14,881)	316.83%
100.00%
93.14%	$	260
-
-	
TOTAL REVENUES	387,452	397,221	102.52%		260	

EXPENDITURES
Administration

P/R-Board of Supervisors	9,000	5,800	64.44%	-	
FICA Taxes	689	444	64.44%	-	
ProfServ-Dissemination Agent	1,000	1,000	100.00%	1,000	
ProfServ-Engineering	55,000	14,143	25.71%	-	
ProfServ-Legal Services	5,000	3,813	76.26%	715	
ProfServ-Mgmt Consulting Serv	36,950	36,950	100.00%	3,079	
ProfServ-Property Appraiser	150	150	100.00%	-	
ProfServ-Special Assessment	7,500	7,500	100.00%	-	
ProfServ-Trustee Fees	9,108	9,541	104.75%	-	
ProfServ-Web Site Maintenance	750	138	18.40%	-	
Auditing Services	5,500	5,500	100.00%	-	
Postage and Freight	400	202	50.50%	4	
Insurance - General Liability	5,841	5,708	97.72%	-	
Printing and Binding	1,000	191	19.10%	4	
Legal Advertising	1,800	1,509	83.83%	-	
Miscellaneous Services	600	585	97.50%	51	
Misc-Assessmnt Collection Cost	7,989	7,759	97.12%	-	
Office Supplies	175	266	152.00%	-	
Annual District Filing Fee	 	175 	175 	100.00% 	- 	
Total Administration	148,627	101,374	68.21%	4,853	
Field
Contracts-Lakes	

40,000	

23,200	

58.00%	

-	
Electricity - Streetlighting	60,000	58,173	96.96%	4,862	
R&M-Aquascaping	3,892	-	0.00%	-	
R&M-Ponds	75,000	165,566	220.75%	-	
R&M-Stormwater System	15,000	52,187	347.91%	-	
Misc-Contingency	10,000	339	3.39%	68	
Reserve - Ponds	34,933	-	0.00%	-	
Total Field	238,825	299,465	125.39%	4,930	

TOTAL EXPENDITURES
Net change in fund balance	

$	387,452
-	

$	400,839
(3,618)	103.46%
0.00%	

$	9,783
(9,523)	
FUND BALANCE, BEGINNING (OCT 1, 2019) FUND BALANCE, ENDING	

$	1,222,776

1,222,776	

$	1,222,776

1,219,158				

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending September 30, 2020	

ACCOUNT DESCRIPTION	
ANNUAL ADOPTED
BUDGET	

YEAR TO DATE ACTUAL	
YTD ACTUAL AS A % OF
ADOPTED BUD	

SEP-20 ACTUAL	

REVENUES								
Interest - Investments
Special Assmnts- Tax Collector Special Assmnts- Discounts	$	- 141,027
(5,641)	$	932
141,027
(5,254)	0.00%
100.00%
93.14%	$	1
-
-	
TOTAL REVENUES		135,386		136,705	100.97%		1	

EXPENDITURES

Administration

Misc-Assessmnt Collection Cost	 	2,821 	2,739 	97.09%	 	- 	
Total Administration	 	2,821 	2,739 	97.09%	 	- 	

Debt Service			
Debt Retirement Series A	90,000	90,000	100.00%	-	
Prepayments Series A	-	10,000	0.00%	-	
Interest Expense Series A	 	37,538 	37,406 	99.65%	 	- 	
Total Debt Service	 	127,538 	137,406 	107.74%	 	- 	

TOTAL EXPENDITURES

Excess (deficiency) of revenues Over (under) expenditures		130,359		140,145	107.51%		-	
		
5,027		
(3,440)	
0.00%		
1	

OTHER FINANCING SOURCES (USES)	

$		

$			

$	

-
-

1	
Contribution to (Use of) Fund Balance
TOTAL FINANCING SOURCES (USES)		5,027
5,027		-
-	0.00%
0.00%			
Net change in fund balance		5,027		(3,440)	0.00%			

FUND BALANCE, BEGINNING (OCT 1, 2019)		
132,222		
132,222				
FUND BALANCE, ENDING	  $		137,249 	  $		128,782 				

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending September 30, 2020

	

ACCOUNT DESCRIPTION	ANNUAL ADOPTED
BUDGET	
YEAR TO DATE ACTUAL	YTD ACTUAL AS A % OF
ADOPTED BUD	
SEP-20 ACTUAL	

REVENUES						

Interest - Investments	
$	-	
$	450	
0.00%	
$	
-	
Special Assmnts- Tax Collector	94,045	94,045	100.00%		-	
Special Assmnts- Discounts	(3,762)	(3,504)	93.14%		-	
TOTAL REVENUES	90,283	90,991	100.78%		-	

EXPENDITURES						

Administration
Misc-Assessmnt Collection Cost	

 	1,881 	1,827 	97.13%	

 	- 	
Total Administration	 	1,881 	1,827 	97.13%	 	- 	

Debt Service			
Principal Debt Retirement	80,000	80,000	100.00%	-	
Interest Expense	 	7,871 	7,871 	100.00%	 	- 	
Total Debt Service	 	87,871 	87,871 	100.00%	 	- 	
TOTAL EXPENDITURES	89,752	89,698	99.94%	-	

Excess (deficiency) of revenues Over (under) expenditures	

531	

1,293	

0.00%	

-	

OTHER FINANCING SOURCES (USES)					
Contribution to (Use of) Fund Balance	531	-	0.00%	-	

TOTAL FINANCING SOURCES (USES)

Net change in fund balance	

$	531

531	

$	-

1,293	0.00%

0.00%	

$	-

-	
FUND BALANCE, BEGINNING (OCT 1, 2019) FUND BALANCE, ENDING	

  $		
53,040

53,571 	

  $		
53,040

54,333 				

Agenda Page #18

Heritage Springs
Community Development District

Supporting Schedules

September 30, 2020

Community Development District

Non-Ad Valorem Special Assessments - Pasco County Tax Collector (Monthly Collection Distributions)
For the Fiscal Year Ending September 30, 2020

	ALLOCATION BY FUND	

Date Received	
Net Amount Received	Discount / (Penalties)
Amount	
Collection Costs	Gross Amount
Received	
General Fund	
Series 2006
Debt Service	
Series 2008
Debt Service	

Assessments Levied			
$	634,501	
$	399,429	
$	141,027	
$	94,045	
Allocation %			100%	63%	22%	15%	
11/08/19	$	13,877	$	766	$	283	$	14,926	$	9,396	$	3,317	$	2,212	
11/15/19	99,663	4,237	2,034	105,934	66,687	23,545	15,701	
11/22/19	104,499	4,443	2,133	111,075	69,923	24,688	16,463	
11/25/19	99,176	4,217	2,024	105,416	66,361	23,430	15,625	
12/06/19	189,736	8,067	3,872	201,675	126,958	44,825	29,892	
12/13/19	24,339	977	497	25,813	16,250	5,737	3,826	
12/20/19	10,505	328	214	11,047	6,954	2,455	1,637	
01/10/20	15,235	481	311	16,026	10,089	3,562	2,375	
02/10/20	11,718	250	239	12,207	7,685	2,713	1,809	
03/10/20	5,582	62	114	5,758	3,625	1,280	853	
04/06/20	14,563	5	297	14,865	9,358	3,304	2,203	
05/08/20	3,730	(14)	76	3,792	2,387	843	562	
06/05/20	1,978	(59)	40	1,959	1,233	436	290	
06/15/20 *	3,938	(120)	190	4,008	2,523	891	594	
TOTAL	$	598,538	$	23,639	$	12,325	$	634,501	$	399,429	$	141,027	$	94,045	

% COLLECTED
TOTAL OUTSTANDING

* Tax Certificate Sales		
$	100%
(0)	
$	100%
(0)	
$	100%
(0)	
$	100%
(0)	

Pasco County Postage Billing	
$	
107								

HERITAGE SPRINGS
Community Development District

Agenda Page #20

Cash and Investment Report	
September 30, 2020	

General Fund							

Account Name
Checking Acct - Operating Checking Acct - Operating	
Bank Name	Investment Type
SunTrust Bank Public Funds NOW Valley Bank	Gov't Interest Checking	
Maturity	Yield
n/a	0.01%
n/a	0.00%
Operating Subtotal	

$	
Balance
146,925
30,000
176,925	

Public Funds Money Market	
Bank United	
MMA - #0143	
n/a	
0.30%		
1,052,747	
				GF Total	$	1,229,672	

Debt Service Funds

Account Name
Series 2006 Reserve Fund Series 2006 Prepayment Fund Series 2006 Revenue Fund

Bank Name
US Bank US Bank US Bank

Investment Type
US Bank Open-End CP Government Obligation Fund US Bank Open-End CP

Maturity	Yield
4/1/2021	0.00%	$

n/a	0.01%

4/1/2021	0.00%
DS 202 subtotal

Balance
60,034

2,494

64,110
126,638

DS 203 subtotal	52,903	
DS Total	$	179,541	
		
Total Cash & Investments	$ 1,409,213	

Series 2008A Redemption Series 2008A Debt Svc Rsrv Series 2008A Revenue Fund

US Bank US Bank US Bank

US Bank Open-End CP Government Obligation Fund US Bank Open-End CP

4/1/2021	0.00%

n/a	0.01%

4/1/2021	0.00%

1

8,888

44,014

Heritage Springs CDD
Bank Reconciliation

Agenda Page #21

Bank Account No. Statement No.
Statement Date	1900
09-2020
9/30/2020	SunTrust Bank N.A.				

G/L Balance (LCY)	
146,925.22	
Statement Balance	
146,925.22			
G/L Balance	146,925.22	Outstanding Deposits	0.00			
Positive Adjustments	0.00		

	Subtotal	146,925.22			
Subtotal	146,925.22	Outstanding Checks	0.00			
Negative Adjustments	0.00	Differences	0.00			

Ending G/L Balance	
146,925.22	
Ending Balance	
146,925.22			
	
Difference	
0.00					

Posting Date	
Document Type	
Document No.	

Description	

Amount	
Cleared Amount	

Difference	

Heritage Springs CDD
Bank Reconciliation

Agenda Page #22

Bank Account No. Statement No.
Statement Date	0655
09-2020
9/30/2020	Valley Bank				

G/L Balance (LCY)	
30,000.00	
Statement Balance	
30,000.00			
G/L Balance	30,000.00	Outstanding Deposits	0.00			
Positive Adjustments	0.00		

	Subtotal	30,000.00			
Subtotal	30,000.00	Outstanding Checks	0.00			
Negative Adjustments	0.00	Differences	0.00			

Ending G/L Balance	
30,000.00	
Ending Balance	
30,000.00			
	
Difference	
0.00					

Posting Date	
Document Type	
Document No.	

Description	

Amount	
Cleared Amount	

Difference	

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

Payment Register by Fund
For the Period from 8/1/20 to 9/30/20 (Sorted by Check / ACH No.)

Agenda Page #23

Fund No.	Check / ACH No.	
Date	
Payee	
Invoice No.	
Payment Description	
Invoice / GL Description	
G/L Account #	Amount Paid	

GENERAL FUND - 001

001	002314	08/20/20	BLUE WATER AQUATICS, INC	26893	08/10/20 AQUATIC SVC	Contracts-Lakes	534084-53901	$2,900.00	
001	002315	08/20/20	INFRAMARK, LLC	54342	AUGUST MNGT SRVCS	ProfServ-Mgmt Consulting	531027-51201	$3,079.17	
001	002315	08/20/20	INFRAMARK, LLC	54342	AUGUST MNGT SRVCS	Postage and Freight	541006-51301	$3.00	
001	002315	08/20/20	INFRAMARK, LLC	54342	AUGUST MNGT SRVCS	Printing and Binding	547001-51301	$3.75	
001	002316	08/20/20	TIMES PUBLISHING COMPANY	0000097756	8/17/20 PUBLIC HEARING MTG ADV	Legal Advertising	548002-51301	$892.00	
001	002322	08/27/20	HERITAGE SPRINGS CDD	082020-1900	OPEN NEW BU OP ACCT	Cash with Fiscal Agent	103000	$30,000.00	
001	002323	08/27/20	TIMES PUBLISHING COMPANY	0000097849	NOTICE OF PH MTG- 8/17/20	Legal Advertising	548002-51301	$187.50	
001	002324	09/03/20	JMT	44-160850	06/28-07/25/20 GEN ENG	ProfServ-Engineering	531013-51501	$925.00	
001	002325	09/03/20	STRALEY ROBIN VERICKER	18709	7/16 -8/15/20 Gen Counsel	ProfServ-Legal Services	531023-51401	$817.70	
001	002326	09/17/20	INFRAMARK, LLC	55323	SEPT MNGT SRVCS	ProfServ-Mgmt Consulting	531027-51201	$3,079.17	
001	002326	09/17/20	INFRAMARK, LLC	55323	SEPT MNGT SRVCS	Postage and Freight	541006-51301	$4.00	
001	002326	09/17/20	INFRAMARK, LLC	55323	SEPT MNGT SRVCS	Printing and Binding	547001-51301	$3.75	
001	002326	09/17/20	INFRAMARK, LLC	55323	SEPT MNGT SRVCS	ProfServ-Dissemination	531012-51301	$1,000.00	
001	DD168	08/05/20	DUKE ENERGY - ACH	071420-5492 ACH	06/12/20-07/14/20 STREET LIGHTS	Electricity - Streetlighting	543013-53901	$4,861.56	
001	DD169	08/17/20	DUKE ENERGY - ACH	072420-46318 ACH	06/24-07/24/20 ELECTRIC UTILITIES	Misc-Contingency	549900-53901	$25.36	
001	DD170	09/04/20	DUKE ENERGY - ACH	081220-5492 ACH	07/14/20-08/12/20 STREET LIGHTS	Electricity - Streetlighting	543013-53901	$4,861.56	
001	DD171	09/04/20	DUKE ENERGY - ACH	082420-6318 ACH	7/24-8/24/18 PUMP ELEC ACH	Misc-Contingency	549900-53901	$38.40	
001	002317	08/20/20	STEVEN WERTOVITCH	PAYROLL	August 20, 2020 Payroll Posting			$184.70	
001	002318	08/20/20	JOSEPH V. DE POMPA	PAYROLL	August 20, 2020 Payroll Posting			$184.70	
001	002319	08/20/20	GEORGE KACHAVOS	PAYROLL	August 20, 2020 Payroll Posting			$184.70	
001	002320	08/20/20	KENNETH MCEWAN	PAYROLL	August 20, 2020 Payroll Posting			$184.70	
001	002321	08/20/20	LESLIE C. ELWONGER	PAYROLL	August 20, 2020 Payroll Posting			$154.70	
							Fund Total	$53,575.42	

Total Cks Paid

$53,575.42

Page 9

Fourth Order of Business

4A.

Aquatic Management Agreement

This Aquatic Management Agreement (this “Agreement”) is entered into as of November 1, 2020, between the Heritage Springs Community Development District, whose mailing address is 2654 Cypress Ridge Blvd., Suite 101, Wesley Chapel, Florida 33743 (the “District”), and American Ecosystems, Inc. a Florida corporation, whose mailing address is P.O. Box 40517, St. Petersburg, Florida 33743 (the “Contractor”).

Background Information:

The District is responsible for the operation and maintenance of the ponds within the boundaries of the District. The Contractor provides pond monitoring and maintenance services and the District desires to retain the Contractor to provide pond monitoring and maintenance services as described in this Agreement.

Operative Provisions:

Incorporation of Background Information. The background information stated above is true and correct and by this reference is incorporated by reference as a material part of this Agreement.

Scope of Services. The Contractor shall perform the specific water management services described in the Contractor’s Aquatic Maintenance Proposal (the “Proposal”) attached as Exhibit “A” and made a part hereof.

Manner of Performance and Care of the Property.
The work shall be done, furnished, and performed in a workmanlike manner to the satisfaction of the District and shall be in accordance with the best management practices in the industry.
Contractor agrees to keep property clean and orderly during the course of the work and to remove all materials, debris, equipment, and machinery at the completion of each work day.
Contractor shall use all due care to protect the property of the District, its residents and landowners from damage. Contractor agrees to repair or replace, to the District’s satisfaction, any damage resulting from Contractor's activities and work within 24 hours. In the event Contractor does not repair or replace the damage to District’s satisfaction, Contractor shall be responsible for reimbursing District for such damages or the District may elect to deduct the costs of the repair from the payment to Contractor for the work under this Agreement.

Compensation. The District agrees to compensate the Contractor for the work described in the Proposal at the rate of $3,575.00 per month. Each month the Contractor shall submit an invoice for the work performed the previous month. The District shall pay the Contractor within 45 days of receipt of the invoice.

Additional Services. The services to be provided by Contractor are set forth in the Proposal.

Term of this Agreement. The initial term of this Agreement shall be for one year from the date of this Agreement. At the end of the initial term, the Agreement shall automatically renew for the same term and contract provisions as the initial term, until terminated by either party pursuant to the termination provision below.

Termination. Either party may at any time terminate this Agreement without cause with 30 days written notice to the other party. Upon termination of this Agreement, the Contractor shall be entitled to payment for all work and/or services rendered up until the effective termination of this Agreement, subject to whatever claims or off-sets the District may have against the Contractor.

Notice. Any notice, request, demand or other communication given by either party to the other shall be deemed to have been properly sent or given when delivered by U.S. mail, hand delivery, certified mail or overnight courier service, to the addresses above. In the event that the Contractor or the District undergoes a change in address, notification to the other party shall be made by first class mail or email.

Relationship Between the Parties. It is understood that the Contractor is an independent  contractor and shall perform the services contemplated under this Agreement. As an independent contractor, nothing in this Agreement shall be deemed to create a partnership, joint venture, or employer-employee relationship between the Contractor and the District. The Contractor shall not have the right to make any contract or commitments for, or on behalf of, the District without the prior written approval of the District. The Contractor assumes full responsibility for the payment and reporting of all local, state, and federal taxes and other contributions imposed or required of the Contractor during the performance of services to the District.

Compliance with Governmental Regulation. The Contractor shall keep, observe, and perform all requirements of applicable local, State, and Federal laws, rules, regulations, or ordinances,  including conservation easements applicable to the District. If the Contractor fails to notify the District in writing within 5 days of the receipt of any notice, order, required to comply notice, or a report of a violation or an alleged violation, made by any local, State, or Federal governmental body or agency or subdivision thereof with respect to the services being rendered under this Agreement or any action of the Contractor or any of its agents, servants, employees, or material men, or with respect to terms, wages, hours, conditions of employment, safety appliances, or any other requirements applicable to provision of services, or fails to comply with any requirement of such agency within 5 days after receipt of any such notice, order, request to comply notice, or report of a violation or an alleged violation, the District may terminate this Agreement, such termination to be effective immediately upon the giving of notice of termination.

Insurance. The Contractor or any subcontractor performing the work  described  in  this  Agreement shall maintain throughout the term of this Agreement the following insurance:

Worker’s Compensation Insurance in accordance with the laws of the State of Florida.
Commercial General Liability Insurance covering the Contractor’s legal liability for bodily injuries, with limits of not less than $1,000,000 combined single limit bodily injury and property damage liability and covering at least the following hazards: Independent Contractors Coverage for bodily injury and property damage in connection with subcontractors’ operation.
Employer’s Liability Coverage with limits of at least $1,000,000 per accident or disease.
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 the Contractor of any owned, non-owned, or hired automobiles, trailers, or other equipment required to be licensed.

The District, its staff, consultants and supervisors shall be named as an additional insured. The Contractor shall furnish the District with the Certificate of Insurance evidencing compliance with this requirement. No certificate shall be acceptable to the District unless it provides that any change or termination within the policy periods of the insurance coverage, as certified, shall not be effective within 30 days of prior written notice to the District. Insurance coverage shall be from a reputable insurance carrier, licensed to conduct business in the State of Florida.

Indemnification. Contractor agrees to indemnify and hold the District and its officers, agents and employees harmless from any and all liability, claims, actions, suits, demands and obligations by any person, corporation or other entity for injuries, death, property damage or of any nature, arising out of, or in connection with, the work to be performed by Contractor. Obligations shall include the payment of all settlements, judgments, damages, penalties, forfeitures, back pay, court costs, arbitration and/or mediation costs, litigation expenses, attorney’s fees and paralegal fees (whether in court, out of court, on appeal or in bankruptcy proceedings).

Limitations on Governmental Liability. Nothing in this Agreement shall be deemed as a waiver of immunity or limits of liability of the District 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.

Responsibilities of the District. The District shall inform Contractor of any and all work areas that are required mitigation sites in which desirable plants have been or are to be installed. The District agrees to provide Contractor with copies of mitigation permits, site plans, and plant species relating to contracted work areas.

Public Entity Crimes. Pursuant to Section 287.133(3)(a), Florida Statutes:

A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid, proposal, or reply on a contract to provide any goods or services to a public entity; may not submit a bid, proposal, or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit bids, proposals, or replies on leases of real property to a public entity; may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity; and may not transact business with any public entity in excess of the threshold amount provided in s. 287.017 for CATEGORY TWO for a period of 36 months following the date of being placed on the convicted vendor list.

Contractor represents that in entering into this Agreement, the Contractor has not been placed on the convicted vendor list within the last 36 months and, in the event that the Contractor is placed on the convicted vendor list, the Contractor shall immediately notify the District whereupon this Agreement may be terminated by the District.

Scrutinized Companies. Pursuant to Section 287.135, Florida Statutes, Contractor represents that in entering into this Agreement, the Contractor has not been designated as a “scrutinized company” under the statute and, in the event that the Contractor is designated as a “scrutinized company”, the

Contractor shall immediately notify the District whereupon this Agreement may be terminated by the District.

Public Records. As required under Section 119.0701, Florida Statutes, Contractor shall (a) keep and maintain public records required by the District in order to perform the service, (b) upon request from the District’s custodian of public records, provide the District with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided by law, (c) ensure 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 this Agreement term and following completion of this Agreement if the Contractor does not transfer the records to District, (d) meet all requirements for retaining public records and transfer, at no cost, to the District all public records in possession of the Contractor upon termination of this Agreement and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the District 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 AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT	813-991-4014,	OR	BY	EMAIL	AT ANDY.MENDENHALL@INFRAMARK.COM OR BY REGULAR MAIL AT 2654 CYPRESS RIDGE BLVD., SUITE 101, WESLEY CHAPEL, FLORIDA
33544.

Controlling Law and Venue. This Agreement shall be governed under the laws of the State of Florida, with venue in the county where the District is located.

Enforcement of Agreement. Neither party shall be responsible in damages, penalties or otherwise for any failure or delay in the performance of any of its obligations hereunder caused by fire, floods, strikes, riots, war, acts of God, accidents, material unavailability, governmental order and/or regulations. In the event it shall become necessary for either party to institute legal proceedings in order to enforce the terms of this Agreement, the prevailing party shall be entitled to all costs, including reasonable attorney’s fees at both trial and appellate levels against the non-prevailing party.

Severability. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and eﬀect.

Amendment. Amendments to and waivers of the provisions contained in this Agreement may be made only by an instrument in writing which is executed by both of the parties hereto.

Assignment. This Agreement is not transferrable or assignable by either party without the written approval of both parties.

 Arm’s Length Transaction. This Agreement has been negotiated fully between the District and the Contractor as an arm's length transaction. In the case of a dispute concerning the interpretation of

any provision of this Agreement, the parties are each deemed to have drafted, chosen, and selected the language, and any doubtful language will not be interpreted or construed against any party.

Counterparts. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original; however, all such counterparts together shall constitute, but one and the same instrument.

Authorization. The execution of this Agreement has been duly authorized by the appropriate body or official of all parties hereto, each party has complied with all the requirements of law, and each party has full power and authority to comply with the terms and provisions of this instrument.

Entire Agreement. This Agreement contains the entire agreement and neither party is to rely upon any oral representations made by the other party, except as set forth in this Agreement. To the extent that any provisions of this Agreement conflict with the provisions in any exhibit, the provisions in this Agreement shall control over provisions in any exhibit.

American Ecosystems, Inc.	Heritage Springs
a Florida corporation	Community Development District

Name: 		Name:	 Title: 		Chair of the Board of Supervisors

Exhibit “A” – Scope of Work.

American Ecosystems, Inc.®
AQUATIC MANAGEMENT SYSTEMS
P.O.Box40517
St. Petersburg, FL 33743-05 I 7
Phone(727) 545-4404 • Fax (727) 545-0770

AQUATIC MANAGEMENT AGREEMENT

This Agreement. made this_ _  _  _  _ ctay of	, 20 Corporation. hereafter called "Contractor" nd- - - - - -

, is between AMERICAN ECOSYSTEMS. INC.. a Florida

NAME	­
ADDRESS	­

CI TY- - - - - - - - - - - - - - -
hercinafi:er called ''Customer"
The parties hereto agree as follows:

STATE	ZJp  	

PHONE - - - - - - - - - - -

Contractor agrees to  manage certain lakes and /or waterways for a period of	T welve_	(	12	} months

from the date of execution of this Agreement in accordance with the terms and conditions of this Agreement in the follow i ng location(s ):
Forty-Six (46) ponds and twenty- eight (28) sump areas under the control and supervision of Heritage Springs in Trinity, FL
Treatment program includes a minimum of twelve treatments as needed for the control of nusisance
aquatic vegetation.

CU TOMER agrees to pay CONTRACTOR its agents or assigns, the following sum for specified aquatic management
services:

Shoreline Grass and Brush Control Program
u nde rwater and Floating Vegetation Control Program
Gall back service at no extra cost
Additional treatments if needed
Two million dollars liability insurance
r. All services performed by licensed biologist
g. Treatment reports issued after each visit

TOTAL Of SERVICES TO BE PERFORMED

$ 3,575.00 Monthly
$ Included

s   Included	
$ Included

s  Included	
$    Included	
$    Included	
$ 3,575.00 Monthly

S	3,575.00	of the above sum total shall be due and payable upon execution of this Agreement, the balance shall be payable in advance of services being perfonncd in _ j 1 monthly installments of S 3,.,575.00 plus any sale s or use tax In cluding wilhout lim itat io n, fees or charges thut are  imposed  by any go...-em   men tal authority relating to the  service provid ed   under this Ag reeme n. t
CONTRACTOR agrees to use products ,, hich have demonstrated a wide margin of safety  to fish and wildlife and  which are generally used in the State of Flor ida.
CO. "TR.ACTOR agrees to commence treatment within	30	days, weather pem1itting from the date of receipt of this
, g.reement and/or required government permits.
The offer contained herein shall terminate automatically unless executed and retumed by CUSTOMER to CONTRACTOR on or before
_ _ _ October 31 . 20_2.Q     
The tenns and conditions appearing on the reverse side shall be made part hereof and are inc01porated herein by reference.
CONTRACTOR:	CUSTOMER;
s;"""'"'" ,s'.,,,,.;,, ,e t@p7" JJ	Signatu_re_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Printed Name Kevin R. ngberg. President

Dated	09/14/2020

Printed Nam_ e _   _   _   _   _   _   _   _   _   _   _   _   _   _   _
Date_d  _    _    _    _    _    _    _    _    _    _    _    _    _    _    _    _    _

Yello\, - Customer	Pi nk - Fil.:

Sixth Order of Business

6A.

RESOLUTION 2021-1
A BUDGET AMENDMENT AMENDING THE HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT GENERAL FUND BUDGET FOR FISCAL YEAR 2020

WHEREAS, the Board of Supervisors, hereinafter referred to as the “Board”, of Heritage Springs Community Development District, hereinafter referred to as “District”, adopted a General Fund Budget for Fiscal Year 2020, and
WHEREAS, the Board desires to reallocate funds budgeted to reappropriate General Funds approved during the Fiscal Year.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF HERITAGE SPRINGS COMMMUNITY DEVELOPMENT DISTRICT THE FOLLOWING:
The General Fund Budget is hereby amended in accordance with Exhibit “A” attached.
This resolution shall become effective this 19th day of October 2020 and be reflected in the monthly and Fiscal Year End 9/30/2020 Financial Statements and Audit Report of the District.

Heritage Springs Community Development District

Attest:

By:		 Chairman

By:	Andrew Mendenhall, Secretary

EXHIBIT A
HERITAGE SPRINGS

Agenda Page #35

Community Development District	General Fund
Proposed Budget Amendment
For the Period Ending September 30, 2020

CURRENT	
PROPOSED	
FINAL	YEAR TO DATE	VARIANCE ($)	
ACCOUNT DESCRIPTION		BUDGET	AMENDMENT	BUDGET	ACTUAL	FAV(UNFAV)

$	4,000	$	12,673	$	8,673
399,429	399,429	-
(15,977)	(14,881)	1,096	

REVENUES			

$	-
-
-		
Interest - Investments	$	4,000			
Special Assmnts- Tax Collector		399,429			
Special Assmnts- Discounts		(15,977)			
TOTAL REVENUES		387,452	-	387,452	397,221	9,769	

EXPENDITURES

Administration
P/R-Board of Supervisors	9,000
FICA Taxes	689
ProfServ-Dissemination Agent	1,000
ProfServ-Engineering	55,000
ProfServ-Legal Services	5,000
ProfServ-Mgmt Consulting Serv	36,950 ProfServ-Property Appraiser		150
ProfServ-Special Assessment	7,500
ProfServ-Trustee Fees	9,108
ProfServ-Web Site Maintenance	750
Auditing Services	5,500
Postage and Freight	400
Insurance - General Liability	5,841
Printing and Binding	1,000
Legal Advertising	1,800
Miscellaneous Services	600
Misc-Assessmnt Collection Cost	7,989
Office Supplies	175
Annual District Filing Fee	175

Total Administration	148,627

Field
Contracts-Lakes	40,000
Electricity - Streetlighting	60,000
R&M-Aquascaping	3,892
R&M-Ponds	75,000
R&M-Stormwater System	15,000
Misc-Contingency	10,000
Reserve - Ponds	34,933

Total Field	238,825	

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-	

9,000	5,800	3,200
689	444	245
1,000	1,000	-
55,000	14,143	40,857
5,000	3,813	1,187
36,950	36,950	-
150	150	-
7,500	7,500	-
9,108	9,541	(433)
750	138	612
5,500	5,500	-
400	202	198
5,841	5,708	133
1,000	191	809
1,800	1,509	291
600	585	15
7,989	7,759	230
175	266	(91)
175	175	-
148,627	101,374	47,253

40,000	23,200	16,800
60,000	58,173	1,827
3,892	-	3,892
175,000	165,566	9,434
90,000	52,187	37,813
10,000	339	9,661
34,933	-	34,933
413,825	299,465	114,360	
	-		

-
-
- 100,000
75,000
-
-		
	175,000		
			
TOTAL EXPENDITURES	387,452	175,000	562,452	400,839	161,613	

Net change in fund balance	
-	
(175,000)		
(175,000)		
(3,618)		
171,382	

FUND BALANCE, BEGINNING (OCT 1, 2019)		
1,222,776	
-		
1,222,776		
1,222,776		
-	
FUND BALANCE, ENDING	$	1,222,776	$	(175,000)	$	1,047,776	$	1,219,158	$	171,382	

Report Date: 10/7/2020

HERITAGE SPRINGS

Agenda Page #36

Community Development District	General Fund

Proposed Budget Amendment
For the Period Ending September 30, 2020

CURRENT	
PROPOSED	
FINAL	YEAR TO DATE	VARIANCE ($)	
ACCOUNT DESCRIPTION		BUDGET	AMENDMENT	BUDGET	ACTUAL	FAV(UNFAV)

$	4,000	$	12,673	$	8,673
399,429	399,429	-
(15,977)	(14,881)	1,096	

REVENUES			

$	-
-
-		
Interest - Investments	$	4,000			
Special Assmnts- Tax Collector		399,429			
Special Assmnts- Discounts		(15,977)			
TOTAL REVENUES		387,452	-	387,452	397,221	9,769	

EXPENDITURES

Administration
P/R-Board of Supervisors	9,000
FICA Taxes	689
ProfServ-Dissemination Agent	1,000
ProfServ-Engineering	55,000
ProfServ-Legal Services	5,000
ProfServ-Mgmt Consulting Serv	36,950 ProfServ-Property Appraiser		150
ProfServ-Special Assessment	7,500
ProfServ-Trustee Fees	9,108
ProfServ-Web Site Maintenance	750
Auditing Services	5,500
Postage and Freight	400
Insurance - General Liability	5,841
Printing and Binding	1,000
Legal Advertising	1,800
Miscellaneous Services	600
Misc-Assessmnt Collection Cost	7,989
Office Supplies	175
Annual District Filing Fee	175

Total Administration	148,627

Field
Contracts-Lakes	40,000
Electricity - Streetlighting	60,000
R&M-Aquascaping	3,892
R&M-Ponds	75,000
R&M-Stormwater System	15,000
Misc-Contingency	10,000
Reserve - Ponds	34,933

Total Field	238,825	

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-	

9,000	5,800	3,200
689	444	245
1,000	1,000	-
55,000	14,143	40,857
5,000	3,813	1,187
36,950	36,950	-
150	150	-
7,500	7,500	-
9,108	9,541	(433)
750	138	612
5,500	5,500	-
400	202	198
5,841	5,708	133
1,000	191	809
1,800	1,509	291
600	585	15
7,989	7,759	230
175	266	(91)
175	175	-

148,627	101,374	47,253

40,000	23,200	16,800
60,000	58,173	1,827
3,892	-	3,892
175,000	165,566	9,434
90,000	52,187	37,813
10,000	339	9,661
34,933	-	34,933

413,825	299,465	114,360	
	-		

-
-
- 100,000
75,000
-
-		
	175,000		
			
TOTAL EXPENDITURES	387,452	175,000	562,452	400,839	161,613	

Net change in fund balance	
-	
(175,000)		
(175,000)		
(3,618)	171,382	

FUND BALANCE, BEGINNING (OCT 1, 2019)		
1,222,776	
-		
1,222,776		
1,222,776	-	
FUND BALANCE, ENDING	$	1,222,776	$	(175,000)	$	1,047,776	$	1,219,158	$	171,382	

Report Date: 10/9/2020

6B.

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

Motion: Assigning Fund Balance as of 9/30/20
The Board hereby assigns the FY 2020 Reserves per the FY20 Adopted Budget. Operating Reserve	$  88,130
Reserves-Ponds	$902,391

*To be approved at 10/19/20 meeting.

6C.

August 25, 2020

To Board of Supervisors
Heritage Springs Community Development District 210 N. University Drive, Suite 702
Coral Springs, FL 33071

951 Yamato Road ▪ Suite 280 Boca Raton, Florida  33431 (561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

We are pleased to confirm our understanding of the services we are to provide Heritage Springs Community Development District, Pasco County, Florida (“the District”) for the fiscal year ended September 30, 2020. We will audit the financial statements of the governmental activities and each major fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of Heritage Springs Community Development District as of and for the fiscal year ended September 30, 2020. In addition, we will examine the District’s compliance with the requirements of Section 218.415 Florida Statutes. This letter serves to renew our agreement and establish the terms and fee for the 2020 audit.
Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the District’s 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. As part of our engagement, we will apply certain limited procedures to the District’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding 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 will 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.
The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited:
Management’s Discussion and Analysis.
Budgetary comparison schedule
Audit Objectives
The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the District and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the District’s financial statements. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of-matter or other-matter paragraphs. If our opinion on the financial statements is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report, or may withdraw from this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of 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 on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements.

Examination Objective
The objective of our examination is the expression of an opinion as to whether the District is in compliance with Florida Statute
218.415 in accordance with Rule 10.556(10) of the Auditor General of the State of Florida. Our examination will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and will include tests of your records and other procedures we consider necessary to enable us to express such an opinion. We will issue a written report upon completion of our examination of the District’s compliance. The report will include a statement that the report is intended solely for the information and use of management, those charged with governance, and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of-matter or other-matter paragraphs. If our opinion on the District’s compliance is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the examination or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report, or may withdraw from this engagement.
Other Services
We will assist in preparing the financial statements and related notes of the District in conformity with U.S. generally accepted accounting principles based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.
Management Responsibilities
Management is responsible for compliance with Florida Statute 218.415 and will provide us with the information required for the examination. The accuracy and completeness of such information is also management’s responsibility. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. In addition, you will be required to make certain representations regarding compliance with Florida Statute 218.415 in the management representation letter. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.
Management is responsible for designing, implementing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.
Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we report.
Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information.

With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. 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 will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards.
Audit Procedures—Internal Control
Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all confirmations we request and will locate any documents selected by us for testing.
The audit documentation for this engagement is the property of Grau & Associates and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a cognizant or oversight agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Grau & Associates personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. Notwithstanding the foregoing, the parties acknowledge that various documents reviewed or produced during the conduct of the audit may be public records under Florida law. The District agrees to notify Grau & Associates of any public record request it receives that involves audit documentation.

Our fee for these services will not exceed $5,600 for the September 30, 2020 audit.

We will complete the audit within prescribed statutory deadlines, with the understanding that your employees will provide information needed to perform the audit on a timely basis.

The audit documentation for this engagement will be retained for a minimum of five years after the report release date. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.

Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Invoices will be submitted in sufficient detail to demonstrate compliance with the terms of this agreement. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate.

This agreement may be renewed each year thereafter subject to the mutual agreement by both parties to all terms and fees. The fee for each annual renewal will be agreed upon separately.

The District has the option to terminate this agreement with or without cause by providing thirty (30) days written notice of termination to Grau & Associates. Upon any termination of this agreement, Grau & Associates shall be entitled to payment of all work and/or services rendered up until the effective termination of this agreement, subject to whatever claims or off-sets the District may have against Grau & Associates.

We will provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2019 peer review report accompanies this letter.

We appreciate the opportunity to be of service to Heritage Springs Community Development District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.

Very truly yours, Grau & Associates

Racquel McIntosh

RESPONSE:
This letter correctly sets forth the understanding of Heritage Springs Community Development District. By:   	
Title:   	

Date:   	

•

Program

PA	@	AICP A'	PtttP.mew

Flond.l ln,tltute ol C.,Ulod l'llbllcAc<ou•tani,

FICPA Peer Review Program
Admlnlstei ed In Florida
bv The Florida 'l n sill ule of CPAs

AICPA Peer Review Program
Administered rn Florida by lhe Florida lnsUlule of CPAs

February 20, 2020

Antonio Grau
Grau & Associates
951 Yamato Rd Ste 280
BocaRaton, FL 33431-1009 Dear Antonio Grau:
It is my pleasure to notify you that on Febmary 20, 2020, the Florida Peer Review Committee accepted the repcrt on the most recent Sys tem Review of your· rm. The due date for your next review is December 31,
2022. This is the date by which all re,iew documents shouldbe completed andsubmitted to the administering entity.

As yoo !mow, the report had a peer review rating of pass The Committee asl<.ed me to convey its congratulations to the firm.

Thank you for your cooperation. Sincerely,
ffCPA f>"4 R
Peer Review Team
FICPA Peer Review Committee paul@ficpa org
800-342-3197 ext 251

Florida Institute of CPAs

cc: Daniel Hevia, Racquel McIntosh

Firm Number: 900004390114	Review Number: 571202