Board of Supervisors Regular Meeting Wednesday, March 20, 2019
8:30 a.m.
505 Whiskey Creek Drive Marco Island, FL 34145

AGENDA

Note: Requests to address the Board on all subjects, which are not on today’s agenda, will be accommodated under “Public Comments”. Public comments are limited to a maximum of three (3) minutes per attendee in order to facilitate orderly and efficient District business.

Any person who decides to appeal a decision of this Board will need a record of the proceedings pertaining there to and may need to ensure that a verbatim record of these proceedings is made at their expense.

Any person requiring special accommodations at this meeting because of a disability of physical impairment should contact the District Office at 239-394-4346 at least five days prior to the meeting.
Call to Order
Roll Call
Approval of Agenda
Audience Questions and Comments on Agenda Items
Approval of Previous Meeting Minutes
January 16, 2019
Florida Fish & Wildlife Presentation
Specific Items of Old Business
Street Light Project
Legal Opinion – Street Lights
Landscape Maintenance Project
Gatehouse
Condition of Plants in Pots (C-3 Maintenance)
Master Gardener Status
Blue Planters
Gatehouse Roof Status

Gate Arms & Control Boxes; Rust
New Construction: CDD / ARC Requirements
Ground Lease Termination
Lease Agreement Termination
Specific Items of New Business
Temporary Speed Bumps
Photography for Interior of Gate House
Gate Staff Post Orders - Summary of Duties
District Counsel – Greg Urbancic, Coleman, Yovanovich & Koester, P.A.
Lease Employees
District Finance
Financial Statement Month Ending January 2019
Annual Financial Audit
Square Update
District Manager
FEMA Update
Statewide Mutual Aid Agreement
Supervisors Request and Comments
Three Way Stop Sign at Blue Hill & Whiskey Creek
Ratify Special Events
Tour De Marco, February 24, 2019
Marco Half Marathon, March 17, 2019
Special Event Limit Policy
Audience Questions and Comments
Schedule Next Meeting Date and Time
a.	April 17, 2019 at 8:30 a.m.
Adjournment

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING
January 16, 2019 (Not Approved)

The Board of Supervisors of the Key Marco Community Development District met at 8:30 a.m. on January 16, 2019, at the Key Marco Community Center, Marco Island, Florida.

ATTENDEES:	Maureen McFarland, Supervisor, Chair and Treasurer
Mary Beth Schewitz, Vice-Chair Corrie Grado, Supervisor
Dawn Aitkenhead, Supervisor Luanne Kerins, Supervisor
Katie Maline, District Manager/Secretary Greg Urbancic, District Counsel

CALL TO ORDER/ROLL CALL

The regular meeting was called to order with all five supervisors in attendance.

APPROVAL OF AGENDA

The revised Agenda was unanimously approved on a MOTION by Mrs. Kerins and a second by Mrs. Aitkenhead.

AUDIENCE QUESTIONS AND COMMENTS ON AGENDA ITEMS

No comments or questions were received from the public.

APPROVAL OF PREVIOUS MEETING MINUTES

As it relates to the October 17, 2018 meeting minutes, on Page 4, under District Finances, the last sentence should be removed.

On a MOTION by Mrs. Grado and a second by Mrs. Schewitz, the October 17, 2018 meeting minutes were unanimously approved by the Board.

As it relates to the November 15, 2018 meeting minutes.

On page 1, Appearances, the Board members should have the word “Supervisor” listed after their names, not “Assistant Secretary”.

On Page 3, Approval for September 7, 2018 minutes, last paragraph, add “Mrs.” in front of “Aitkenhead”.

On page 3, Specific Items of Old Business, Culvert Cleaning, last paragraph, last sentence, change “in” to “on” and after City of Marco change “on” to “all”.

On Page 5, under District Finance, the second sentence starting with “The fund balance…” should be deleted.

On page 5, Item A, Holiday Bonuses, delete “Tommy” and replace with “Crawford Landscaping”.

With those corrections, the November 15, 2018 meeting minutes were unanimously approved on a MOTION by Mrs. Grado and a second by Mrs. Schewitz.

SPECIFIC ITEMS OF OLD BUSINESS

Street Light Project

Two proposals were received for this project, one from Casagrande Electric which was not a detailed proposal, and a second proposal from Simmonds Electric for $393,000. Mrs. Maline has also contacted LCEC for information on disconnecting certain street lights, leaving only certain areas on.

As an option, LCEC offers leased, decorative street lighting. LCEC would be responsible for all of the maintenance for leased street lighting. Mrs. Maline has requested a proposal from LCEC for leased lights.

A credit was received from LCEC of approximately $10,000 for incorrect billing for conductor wire. Solar lighting will also be looked at as an option.
The Board members discussed the options, and the legal responsibility the District has regarding safety and the necessity of warning of potentially hazardous areas.

Landscape Maintenance Project

Four proposals have been received on this project, and Mrs. Maline and Mrs. Kerins will be reviewing the proposals and check references and come back to the board with their findings.

Crawford’s contract ends in February 1, 2018. Keith Mahan, VP of Crawford has agreed to month to month service until the Board makes a decision on a landscape maintenance company.

Mr. Urbancic advised that proposal process is within the threshold amounts for the various areas of work.

SPECIFIC ITEMS OF NEW BUSINESS

C-3 Garden Proposal-Gatehouse Blue Planters

The concrete planter’s irrigation has been re-installed and C3 Gardens will be replanting soon.

The Board agreed that the proposal for new plantings in the blue pots were not the Florida natural look they wanted, nor what was requested and did not approve the proposal. This will be discussed again under Item C.

2019 Holiday Décor Discussion

After a brief discussion by the board, it was agreed that Mrs. Maline will invite new vendors to provide proposals for holiday décor.

Master Gardener Discussion

The Board is disappointed with the work Crawford Landscaping is doing at the entrance and the option of hiring a master gardener on a contract basis for the area around the guardhouse in a natural, native style was discussed.

On a MOTION by Mrs. Aitkenhead and a second by Mrs. Schewitz the Board then authorized Mrs. Maline seek a master gardener proposal for the landscaping the entrance surrounding areas.

Renewal of Management Fee

On a MOTION by Mrs. McFarland and a second by Mrs. Aitkenhead, the Management Fee for Mrs. Maline was renewed on a unanimous vote of the Board.

District Manager Annual Review

The tape was turned off and Mrs. Maline stepped outside building while the review was held.

DISTRICT COUNSEL

A. Key Marco CDD and HOA Land Lease

Mr. Urbancic briefly explained the Ground Lease and how it came into use. Over time various changes were made. Currently the CDD pays taxable rent to the HOA.

A discussion was held concerning terminating the existing Ground Lease as of December 31, 2018, and entering into an agreement for Tract U, which would allow the CDD to continue to use Tract U.

As a governmental entity the CDD cannot expend funds for a private purpose, and leaving it open as to what and where regarding landscaping maintenance could be an issue. Mr. Urbancic suggested that a specific amount of money to be spent over a year should be indicated.

Mrs. Grado suggested that a non-monetary easement be done. This was the original intent in 2011, but did not include the well locations.

After further discussion, Mrs. McFarland moved and Mrs. Grado seconded a MOTION stating that the CDD Board would ask the HOA Board to grant an easement for Tract U, for a nominal amount of money, such as $10.

The Motion passed unanimously. Once the HOA agrees, Mr. Urbancic and Mrs. Maline will put this together for the Boards of the two entities. More discussions will be held on this.

DISTRICT FINANCES

Financial Statement Month Ending November 2018

Mrs. Maline and Mrs. McFarland have been working on some issues with the financials, and will have updated information for the Board at the March 20, 2019 meeting.

Square Update

Mrs. Maline will report to the Board monthly on this credit card system. The implementation of the Road Use Fee began November 1, 2018 and thus far $825 has been received.

A public records request was made by the attorney for the City of Marco Island, asking for a broad range of documents related to the road use fee. Mr. Urbancic will discuss the District’s response with Mrs.
McFarland and Mrs. Maline.

In an effort to reduce legal fees, Mrs. McFarland suggested that Mrs. Maline contact the City attorney, and consult with Mr. Urbancic when necessary. Mrs. Maline will contact the City Attorney’s office and ask that a list of specific requests be sent to her, and she will then advise them of any fees that may be charged.

DISTRICT MANAGER

FEMA Update

As of this date, the District has received $20,833.69 from FEMA. There are five projects left in the que to be obligated.

Gate House Roof

Aztec Roofing is waiting for a delivery date from the tile manufacturer. The tile manufacturer is behind and at this time it is taking eight to ten weeks to manufacture.

Fire Hydrants

Fire hydrants were pressure tested by the County the previous week, and Mrs. Maline has submitted a request to them to have the hydrants rust proofed and repainted.

Culvert Maintenance

It has been determined that it is the homeowner’s responsibility to repair their culverts, which is a City of Marco Island ordinance.

SUPERVISORS/AUDIENCE REQUESTS AND COMMENTS

Mrs. McFarland reminded the members in attendance that only Supervisors and the District Manager may contact or communicate with contractors of the Key Marco CDD.

The District Manager should be the main conduit for all non-personal communication with the Gate staff and all Landscaping personnel.

Any issues with contractors should be brought manager’s attention for resolution.

No further requests or comments were received from the other supervisors or the audience.

ADJOURNMENT

The next meeting will be held on March 20, 2019 at 8:30 a.m. The meeting was then adjourned at 9:40 a.m.

Post Orders	Post Duties

-1-

**1.0 Post Duties
Post Duties Key Marco	
Shift: 12 hrs   Monday – Friday:	0630 – 1830 hrs (6:30 AM – 6:30 PM)
Shift: 10 hrs   Saturday – Sunday:  0630 – 1630 hrs (6;30 AM – 4:30 PM)	
Time	Duties
Note this is a CDD
Remember we cannot deny access to any one but we can gather information before giving access, (i.e. Photo ID)	
At Shift Start	Review Log Book, Power up system. Sign in on register sheet.
Review any incident reports and Daily Activity Reports from prior shift.	
	The security officer is expected to be on their post at all times.
You will greet using the following: Good Morning or Good Afternoon, Welcome to Key Marco How may I help you.
When members arrive acknowledge them by waving and being visible at all times. (except for restroom breaks)
Anyone using the guest gate must show photo ID to gain entry. Once verified in Cypress Access, print pass and grant them entry. Tell them to have a nice day.
If a resident does not have a bar code decal, they must also show ID to enter. Instruct them as to how they can obtain a bar code. If you know they are a resident then grant them access. If you are not sure, contact the Manager.
Only the City of Marco Island Police, EMS and Fire, Collier County Sheriff’s office, Lee County Electric, Century Link, Comcast, United States Postal Service, UPS, Federal Express or any other commonly known package delivery service shall be granted access with no pass required.
Security Officer will issue all residents and visitors with Access Decals and Security Cards.
The officer on duty at this post shall comply with any other reasonable request from the client
Each officer on duty will be responsible for keeping the guard
house neat, clean and presentable inside and outside at all times.	

	10. Each officer assigned to this post shall, at all times, conduct themselves in a courteous and professional manner. Officers will not engage in lengthy conversations with the residents or
their guests.	

Post Orders	Post Duties

-2-

	Be Professional. Remember that a major part of the job here is to exercise good judgement. Our goal is to make the environment pleasant for residents and their guests. Our job is to elicit cooperation, not demand compliance.
Officers must park in the assigned spaces.
Update the Daily Activity Report each hour – Please record all activity during the hour. DO NOT write “all secure” or “all normal activity”
Check the exterior of the gate house and gates to ensure the entry ways are free of trash and debris.
When visitors arrive that are not guests or invitees, advise them there is a Road User Fee. $5.00 for bike and walkers,
$10.00 for 2-Axel vehicles, $20.00 for 3+ Axel vehicles. If they would like to pay the fee, obtain a debit or credit card and enter into the Square Reader System. Instruct bicyclists to ride single file.
	Instruct all historical visitors to remain on the main road and to remain in their cars at all times.
Always issue a “do not park in the grass flyer” and remind guests and contractors that the speed limit is 20 mph.
We will attempt to alert the resident of FED/EX, UPS is going to the resident.
If Bikers arrive after 5:30 p.m. we kindly explain they cannot enter Key Marco because the guard house shuts down and
safety becomes a concern.	
End of shift / securing post	Ensure office is clean and remove personal items.
Update pass down log if needed.
Lock gate house if at the end of the shift.	

Coleman, Yovanovich & Koester, P.A. Northern Trust Bank Building
4001 Tamiami Trail North, Suite 300
Naples, Florida 34103-3556
Telephone:  (239) 435-3535
Fax:	(239) 435-1218

Page: 1
Key Marco CDD	January 31, 2019
c/o Katie Maline	File No:	3944-001M
505 Whiskey Creek Drive	Statement No:	121
Marco Island FL 34145 Attn: Katie Maline

Gen Rep

SENT VIA EMAIL TO: katie@managerkeymarcohoa.org

Fees

01/10/2019	GLU	Review email correspondence from Katie Maline regarding license agreement; Review files on same; Draft email correspondence to Katie Maline	
130.00	
01/11/2019	GLU	Telephone conference with Katie Maline regarding license agreement; Draft License Agreement; Draft email correspondence to Katie Maline with initial drafts; Draft email correspondence to group distributing draft documents	

325.00	
01/14/2019	GLU	Review email correspondence from Katie Maline on comments on agreement; Telephone conference with Katie Maline regarding agreement	
81.25	
01/15/2019	GLU

GLU	Draft revisions to license agreement and termination of ground lease; Draft email correspondence circulating same.
Review correspondence from City Attorney on public records request; Draft email
correspondence to Katie Maline and Maureen McFarland on same.	
130.00

65.00	
	GLU	Review agenda and prepare for Board of Supervisors meeting	65.00	
01/16/2019	GLU	Attendance at Board of Supervisors meeting	812.50	
		Professional Fees through 01/31/2019	1,608.75	
		Total Current Work	1,608.75	

Balance Due
$1,608.75

KEY MARCO
Community Development District

Financial Statements
(Unaudited)

January 31, 2019

KEY MARCO
Community Development District

Governmental Funds

Balance Sheet
January 31, 2019

ACCOUNT DESCRIPTION

GENERAL FUND

FIXED ASSETS
FUND	TOTAL

ASSETS

Cash - Checking Account	$	907,067	$	-	$	907,067	
Prepaid Items	250	-	250	
Fixed Assets		
Land	-	1,969,203	1,969,203	
Buildings	-	146,196	146,196	
Accum Depr - Buildings	-	(111,345)	(111,345)	
Improvements	-	882,684	882,684	
Infrastructure	-	6,522,136	6,522,136	
Accum Depr ‐ Improvements	-	(681,688)	(681,688)	
Accum Depr - Infrastructure	-	(4,204,655)	(4,204,655)	
Machinery & Equipment	-	126,860	126,860	
Accum Depr ‐ Mach & Equip	-	(33,006)	(33,006)	
TOTAL ASSETS	$	907,317	$ 4,616,385	$ 5,523,702	
LIABILITIES		
Accounts Payable	$	14,086	$	-	$	14,086	
Accrued Expenses	5,825	-	5,825	
Accrued Taxes Payable	122	-	122	
TOTAL LIABILITIES	20,033	-	20,033	

FUND BALANCES		
Nonspendable:		
Prepaid Items	250	-	250	
Unassigned:	887,034	4,616,385	5,503,419	
TOTAL FUND BALANCES	$	887,284	$ 4,616,385	$ 5,503,669	
		
TOTAL LIABILITIES & FUND BALANCES	$	907,317	$ 4,616,385	$ 5,523,702	

KEY MARCO

Community Development District	General Fund

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending January 31, 2019

ACCOUNT DESCRIPTION	ANNUAL ADOPTED
BUDGET	
JAN-19 ACTUAL	
JAN-19 BUDGET	
VARIANCE ($) FAV(UNFAV)	
YEAR TO DATE ACTUAL	
YEAR TO DATE BUDGET	
VARIANCE ($) FAV(UNFAV)	

REVENUES								
Interest - Investments	$	8,000	$	1,837	$	667	$	(1,170)	$	5,509	$	2,667	$	(2,842)	
Hurricane Irma FEMA Refund	-	-	-	-	20,834	-	(20,834)	
Interest - Tax Collector	-	226	-	(226)	226	-	(226)	
Special Assmnts- Tax Collector	629,800	28,200	48,694	20,494	526,400	527,054	654	
Special Assmnts- Discounts	(25,192)	(799)	(1,948)	(1,149)	(20,445)	(21,082)	(637)	
Other Miscellaneous Revenues	-	(2,028)	-	2,028	-	-	-	
User Facility Revenue	-	406	-	(406)	1,236	-	(1,236)	
TOTAL REVENUES	612,608	27,842	47,413	19,571	533,760	508,639	(25,121)	

EXPENDITURES								

Administration								
P/R-Board of Supervisors	9,600	800	800	-	2,400	3,200	(800)	
FICA Taxes	734	-	61	(61)	184	245	(61)	
ProfServ-Engineering	5,000	-	417	(417)	-	1,667	(1,667)	
ProfServ-Legal Services	25,000	195	2,083	(1,888)	11,022	8,333	2,689	
ProfServ-Mgmt Consulting Serv	72,000	6,000	6,000	-	25,000	24,000	1,000	
ProfServ-Property Appraiser	9,447	-	-	-	567	9,447	(8,880)	
ProfServ-Special Assessment	1,000	-	-	-	1,000	1,000	-	
ProfServ-Tax Collector	12,596	548	974	(426)	10,119	10,542	(423)	
Accounting Services	14,150	1,179	1,179	-	4,717	4,717	-	
Auditing Services	5,000	-	-	-	-	2,500	(2,500)	
Postage	150	12	13	(1)	49	50	(1)	
Rentals & Leases	300	25	25	-	100	100	-	
Insurance - General Liability	29,926	-	-	-	26,788	29,926	(3,138)	
Legal Advertising	4,000	-	333	(333)	1,743	1,333	410	
Miscellaneous Services	750	68	63	5	243	250	(7)	

KEY MARCO

Community Development District	General Fund

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending January 31, 2019

ACCOUNT DESCRIPTION	ANNUAL ADOPTED
BUDGET	
JAN-19 ACTUAL	
JAN-19 BUDGET	
VARIANCE ($) FAV(UNFAV)	
YEAR TO DATE ACTUAL	
YEAR TO DATE BUDGET	
VARIANCE ($) FAV(UNFAV)	

Transcript Cost	
2,400	
165	
200	
(35)	
660	
800	
(140)	
Computer Support	600	50	50	-	200	200	-	
Office Supplies	500	110	42	68	110	167	(57)	

Dues, Licenses, Subscriptions	 	275 	- 	- 	- 	175 	175 	- 	
Total Administration	 	193,428 	9,152 	12,240 	(3,088) 	85,077 	98,652 	(13,575)	
Maintenance and Landscaping		
Contractual Services	140,000	11,734	11,667	67	47,254	46,667	587	
R&M-Trees and Trimming	15,000	2,258	1,250	1,008	2,258	5,000	(2,742)	
R&M-Pressure Washing	-	-	-	-	3,165	-	3,165	
Plant Replacement Program	10,000	-	833	(833)	8,966	3,333	5,633	
Exotic Maintenance	13,000	-	1,083	(1,083)	12,232	4,333	7,899	
Flower Program	5,000	270	417	(147)	2,415	1,667	748	
Mulch Program	9,000	-	750	(750)	484	3,000	(2,516)	
Misc-FEMA Expense	 	- 	- 	- 	- 	5,000 	- 	5,000 	
Total Maintenance and Landscaping	 	192,000 	14,262 	16,000 	(1,738) 	81,774 	64,000 	17,774 	
Irrigation Services		
Contractual Services	6,100	16	508	(492)	499	2,033	(1,534)	
Utility - Water	15,000	6,079	1,250	4,829	15,821	5,000	10,821	
Utilities-Electric	5,000	528	417	111	2,441	1,667	774	
Repairs & Maintenance	20,000	272	1,667	(1,395)	7,612	6,667	945	
Land Lease	 	31,000 	2,553 	2,583 	(30) 	10,212 	10,333 	(121)	
Total Irrigation Services	 	77,100 	9,448 	6,425 	3,023 	36,585 	25,700 	10,885 	
Capital Expenditures & Projects
Cap Outlay-Roads	

 	50,000 	- 	- 	- 	5,375 	- 	5,375 	
Total Capital Expenditures & Projects	 	50,000 	- 	- 	- 	5,375 	- 	5,375 	

KEY MARCO

Community Development District	General Fund

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending January 31, 2019

	ANNUAL		
	ADOPTED	JAN-19	JAN-19	VARIANCE ($)	YEAR TO DATE	YEAR TO DATE	VARIANCE ($)	
ACCOUNT DESCRIPTION	BUDGET	ACTUAL	BUDGET	FAV(UNFAV)	ACTUAL	BUDGET	FAV(UNFAV)	

Lighting

Utilities-Electric	24,000	(1,944)	2,000	(3,944)	2,384	8,000	(5,616)	
R&M-General	6,000	1,235	500	735	3,649	2,000	1,649	
Misc-Holiday Lighting	 	3,000 	- 	- 	- 	250 	3,000 	(2,750)	
Total Lighting	 	33,000 	(709) 	2,500 	(3,209) 	6,283 	13,000 	(6,717)	

Access Control		
Contractual Services	86,520	7,122	7,210	(88)	29,014	28,840	174	
Utilities-Electric	10,000	434	833	(399)	2,197	3,333	(1,136)	
R&M-Gate	3,580	291	298	(7)	2,157	1,193	964	
R&M-Gatehouse	5,000	115	417	(302)	1,210	1,667	(457)	
Op Supplies - General	 	250 	- 	21 	(21) 	1,104 	83 	1,021 
Total Access Control	 	105,350 	7,962 	8,779 	(817) 	35,682 	35,116 	566 

TOTAL EXPENDITURES	650,878	40,115	45,944	(5,829)	250,776	236,468	14,308

Excess (deficiency) of revenues
Over (under) expenditures	(38,270)	(12,273)	1,469	13,742	282,984	272,171	(10,813)

OTHER FINANCING SOURCES (USES)

Contribution to (Use of) Fund Balance	(38,270)	-	-	-	-	-	-
TOTAL FINANCING SOURCES (USES)	(38,270)	-	-	-	-	-	-	

Net change in fund balance	
$	(38,270)	
$	(12,273)	
$	1,469	
$	13,742	
$	282,984	
$	272,171	
$	(10,813)	

FUND BALANCE, BEGINNING (OCT 1, 2018)	
604,300				
604,300	
604,300		
FUND BALANCE, ENDING	  $	566,030 				$	887,284	$	876,471		

CRAWFORD
LANDSCAPING

HORTICULTURAL MANAGEMENT PROPOSAL
PREPARED FOR: KEY MARCO COD

Submitted to: Property Name: Property Location:

KATIE MALINE KEY MARCO MARCO ISLAND

Date: Address: City/St/Zip:

1/2/2019
505 WHISKEY CREEK MARCO ISLAND, FL.

lscoPE OF SERVICES	4 man crew, 96 hrs./wk. includes travel	ANN AL SERVICEI

Mowing, edging, forced air clean up and weed control Selective pruning of shrubs and ground covers Selective pruning of palms (up to 12')
Fertilization of turf grass
Fertilization of shrubs and ground covers Fertilization of palms and trees

Lawn and ornamental pest and disease control
lrri ation system schedulin and monitorin

ONTHLY PAYMENT BREAKDOWN	COST	
Monthly Horiculture Maintenance	10316	
Monthly Irrigation Monitoring	1176	
Pest Control	1885	
Fertilization	3625	

•
IM

52
CONTINUOUS CONTINUOUS 4
3
3

Crawford Landscaping Group:
,{,.Q. /4c/[

Mike McNeil!, Sales Manager Crawford Landscaping Group
2360 Catawba Street, Naples, FL 34120
(888) 581-5151 (P) (239) 594-9832 (F)
mmcneill@discovercrawford.com

Future Client:

Signature	Date

Contract Effective Date

CRAWFORD
LANDSCAPING

ARBOR WORK PROPOSAL FOR KEY MARCO

Hourly Rate for Arbor Work is $70 per hour per man which includes man and equipment. The cost for stump grinding is $85 per hour which includes the machine and the man.

Routine Palm Maintenance

Trim all Sabal Palms, Queen Palms, Chinese Fan, Coconut and Phoenix(sp.) Palms in accordance to specification provided.
$4,200

Hardwood Tree Trimming will be done as necessary to accomplish contract specification.

$4,340

Exotic Maintenance

Prune back the exotics along the front wall and the Right Of Way along Whiskey Creek and Blue Hill Creek Road twice yearly to maintain a border that does not impede mowing and other maintenance activity. This work will be performed on trees above the 12 foot height line trimmed by ground crews.
$41,600

Vine Management
Remove vines from the canopy of trees growing al.ong Whiskey Creek and Blue Hill Creek above the 12 foot height maintained by ground crews. This is to be done twice yearly.
$52,000

2360 Catawba St.	Naples, FL 34120
O:  (888) 581-5151    F: (239) 594-9832	www.discovercrawford.com

ADDENDUM A

ADDITIONAL SERVICES
If additional services are required, Contractor will submit a proposal reflecting the services requested. Upon completion of this work, the client will receive an invoice reflecting the completed work per the approved proposal. Payment for all completed addltlonal services will be due upon receipt of invoice. After thirty (30) days past due, interest will accrue at 1.5% per month.

The following is a list of many of the services available above and beyond this maintenance contract. Additional services not appearing on this list may also be available. (prices may very):

-
SERVICE	COST	
Turf maintenance application	INCLUDED	
Shrub Prunina aoolication	INCLUDED	
♦:♦ Weed application	INCLUDED	
Fertilization of turf arass, shrubs, palms trees and oround covers	INCLUDED	
lrriaation svstem wet check	INCLUDED	
•!• Annual flower installation and soil amendments	TBD	
•!• Mulchina material installation ( $2.00 PER INSTALLED BAG SUPPLIED BY COD)	$2.00/BAG	
•:• Palm prunina above 12'	SEE PROPOSAL	
•:• Hardwood tree trimmina	SEE PROPOSAL	
•:• Liauid root feedina of trees	TBD	
Liauid root feeding of palms	TBD	
•!• Tree and palm stakinQ and auvinQ	TBD	
Tree stake removal	TBD	
•!• Freeze and frost protection of plants and annual plantings	TBD	
•!• Weed control on patios or streets	TBD	
•!• Lanai service	TBD	
♦:♦ Espalier of any type of plant material or vine	TBD	
•!• Landscape liahtina installation or maintenance	TSO	
•!• Hand waterina	TBD	
•:• Leaf removal from planting beds, drainaae areas, parkinQ lots, gutters, etc.	TBD	
•!• Native area clean up	TBD	
•:• Preventative blanket application.	1PM	
•:• Downy mildew preventative aoolication	TBD	
!• Crab Grass, Torpedo Grass, Sedae aoolication	TBD	

ADDENDUM B

QSD-045
Date rt!Yfsed : 1/1/18

Page 9 of 12	I niait  _l:s     _	_	_

INSECT OR DISEASE NOT COVERED IN THIS AGREEMENT

There are a few occasions where the Contractor cannot control Insect or disease damage. The following is a list of insects or disease where the Contractor is not responsible for any resulting damage unless contracted to manage by a separate agreement or addendum:

Downie MIidew

Lethal Yellow

Ganoderma Bud Rot

Fusarium Wilt

Bud Rot

Mole Crickets

Texas Phoenix Palm Decline

Sedge

Pine Beatie Species Infestations

Large scale outbreaks of turf fungus(s) due to weather events

Correciton of large scale soil deficiencies

Palm Weevil

Royal Palm Bug

ADDENDUMC

QSD-045
Date revised: 1/1/18

Page 10of 12	Initials: _

_ _ _

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,,,, ATIONAL
;'.l.  0( 11-\ 11( ,.N OF
LANDSCAPE
,	,,	'	PROFESSIONALS
. ---- - - ---	-	., -
2017GflAND AWARD WINNER
for
Blue Cross SlueShield of Flor.ida DeerwoodPark Campus
Duval Landscape Maintenanc ltC

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Duval Landscape
MAINTENANCE

-

'l'il!Z:

Prepared By
MARK A BODKIN
V1CE PRESIDENf OF SALES & MARKEflNG

LANDSCAPE MAINTENANCE SERVICES PROPOSAL

We Care About I Your Landscape IYour Prio rit ies I Your Sat isfact ion

January 2, 2019
Key Marco Community Development District

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505 Whiskey Creek Drive Marco Island, FL 34145 Katie Maline, CAM Manager

Mark A. Bodkin Vice President of Sales & Marketing
Ph.: 941-706-5062
Email:  mark@duvallandscape.com
www.duvallandscape.com

Katie,

Thank you in advance for considering Duval Landscape Maintenance as your future landscape management services contract provider. The possibility of partnering with you is exciting! We'll ensure you the convenience of a single source provider for all your landscape needs while our commitment to high integrity and emphasis on safety and compliance completes the foundation on which our culture is built.

Estimating/Initial Assessment are critical best practices for Duval. Our team of experts spend significant time on site, utilize sophisticated measuring software, estimating/budgeting software and rely on -validation with hundreds of years of field experience to ensure we get it right and understand the current agronomic and horticulture challenges. Our precise quantifying process is our approach for each job to ensure (accurate hours & crew size, right type & size of equipment, clear defined specifications, which sets up our daily, weekly & annual work process(s.)Then we manage "conformance to established requirements" which is the definition of Quality.

In the following pages you will learn that Duval Landscape Maintenance why we are the best choice as a healthy "growing" organization dedicated to building partnership style relationships with long term customers. Our commitment to the long term success of our customers allows us to take a different approach to your needs, as our goal is to have you as a customer indefinitely. This approach allows us to make great decisions daily, as we look to earn your business every day on your site. We would appreciate the opportunity to discuss our proposal with your entire team, as we believe we developed a service platform for Key Marco Community Development District that are second to none.

Sincerely,
Mark A. Bodkin
Vice President of Sales & Marketing
[fJ We Care About I Your Landscape IYour Prio r it ie s I Your Sat isfact ion [f]

MAINTENANCE PRICING PER SCOPE IN CONTRACT PRICING

Key Marco Pricing

Mowing, edging, trimming of ornamentals up to 12 feet
Fert ilization, insect (all inclusive, including chinch bug, scale, whitefly) and fungi treatments
I Annual Mulching of all beds in area 1,2,3 outined below in January

Work Area 1 I	Work Area 2I	Work Area 3I	Grand San Marco Road   Whiskey Creek   Blue Hill Creek		Total
$	18 ,908.00	$ 109,881.00	$	52,780.00	$ 181,569.00 ls2mows
$	1,933.00	$	13,044.00	$	7,092.00	$	22,069 .00

I

$	4,s4s.oo  I $
$	3,s7o.oo I s	14,sso.oo I $
7,6 20.00 I $	s,sso.oo I$
14,280.00 I$	2s,24s.oo

2s,4?0.oo	
		
$	
11,829.00	

Irrigation Repairs, Maintenance, routine wet checks, water quality testing
Arbor - Over 12 feet
Routine Palm Trimming (all Plams as needed)
Hardwood Tree trimming as needed

IExotic Maintenance
Below 12 feet
Above 12 feet
!Vine Management
Below 12 feet
Above 12 feet
Services for mowing, edging, trimming and pruning shrubs below 12 ft
will be provided three times per week, M onday, Wednesday, Friday.

[f'J We Care About I Your Landscape ! You r Pr io rit ies I Your Sat isfact ion	tJ

$	12,500.00

$ 278,685.00

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ADMINISTRATIVE/ORGANIZATIONAL/KEY MANAGEMENT PERSONNEL
Number of years in business and corporate office location; Eight (8) years, Incorporated 8/12/ 09, Charter No. L 09000077374

_./

/ FEIN 27-0877531. Corporate office location 7011Business Park Blvd N, Jacksonville FL 32256

Organizational structure names of the officers, owners;
President/Owner: Robin S. Bullock

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N aples: 1961Rock Road I Naples FL 34120

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CFO: Edwin Cintron
VP Sales & Marketing: Mark A. Bodkin
Office Manager: Madeline Cintron
Administrative Assistant: Joyce Parsons

Sarasota: 1661 W. University Parkway I Sarasota FL 34243
Jacksonville: 7011 Business Park Blvd N I Jacksonville 32256
Tampa: 4501Ulmerton Road, Suite 7 I Clearwater FL 33762
Orlando: 2423 S Orange Avenue, Suite 117 I Orlando FL 32800
West Palm Beach: 12875 Bryan Road I Loxahatchee Groves FL 33470
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Size of company, detailing number of employees; Total Duval Employee	{ (341)fi. President, 1 CFO, 1 Vice President of Sales, 1 Region Manager, 6 Branch Managers, 4 Business Development Managers, 1fAC{ountManagers, 4 accounting/administrative, 310 field employees including Irrigation Techs, Lawn and Ornamental Techs, Arborist, Supervisors, Field/crew lab.o-F'.c----
Percentage of Residential and Commercial Businesses that are currently being serviced by your compa/,y; (100 % Commercial)
'--------	-

fJ We Care About I Your Landscape IYour Priorit ies I Your Satisfaction	f]

OPERATIONS
Typical Crew composition;

Site Manager will handle the direction of 1 production manager

Product ion manager handles the directi on of (5 man) crew

Each crew consists of

Supervisor- Bilingual (Speak, comprehend, read and write Engli sh)

Mower operators - single or multiple depending on site size

Small equipment operators handle the edging, string trimming and blowing of debris.
Detail specialists - police grounds prior to mowing activities, handle hedge trimming , weed spraying and light treeraising.

All services are scheduled for each quarter based on contract requirements. We maintain both cloud and live scheduling for all supervisors and managers alike. Each division manager is aware of each crew planned activities. Additional weekly staff meetings cover unexpected weather or special event schedule changes t hat may arise. Daily supervisor meeting prior to all crews leaving each day reinfo rce the activities that are planner for any given day. Real time GPS reporting of each crews' location allows us to track, monitor and adjust schedules on the fly.
By proper training and supervi sor accountability, we insure asset damage is minimalized, but in this business, there are times when small rocks, or debris damage windows or sid ing.

We maintain a staff repair team that can assist in quickly rectifying these issues. If the issue falls outside our "comfort level" for repair, we have contracts in place with glass repai r, painters, handy men and others who quickly respond to our needs. The process is speedy, seamless and cost effective.
Quality Control and Communication is often the single greatest frustration. Our QC program and communication work hand in hand to provide each client with the information they need to make informed and educated decisions.
Daily service reports outline what each crew did on each property in any given day. These are sent directly to the client and maintained in our cloud-based storage.

Fertilization and pest control reports outline what, where and how much was applied, what the pest were, any issues that remain and need retreats. Again, these are sent directly to the client and uploaded to the cloud.
LQA- Landscape quality assessments are performed on all properties each month. These assessments cover turf, shrubs, trees and other horticulturally related issues. It is our "report card", and we utilize it to make program changes and tweaks.

t]	We Care About I Your Lan dscape  IYour Priorities I Your Sat isfa ct ion	tJ

January 2, 2019

12745 Livingston Roact Napl es, Florida 34105
\2391643-6124

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Katie Maline
CAM, Manager Key Marco 505 Whiskey Creek Drive Marco Island, FL 34135

RE: Enclosed Bid Package for Key Marco Katie,
Thank you again for the opportunity to review Key Marco and present this to you. After a detailed review we have prepared the attached information. It includes some details reflecting our review, approach and questions uncovered within the RFP vs what we have spoken about on site.

Attached you will find our package, a copy of your RFP, licensing &
insu rance information and additional pricing information.

Th e over all price for our full-service package is $11,575.00 for all the routine services and programs (mowing, edging, blowing, weed management, trimming & pruning, fertilizer program, pest management program, irrigation inspections & testing)

The pricing for the mulch program and tree and palm trimming program (above 12 feet) have been included separately. We have approached the tree and palm information from the perspective of current conditions and a program moving forward. Details are included in that part of the package.
Additionally , we are happy to prepare pricing on request for other enhancements and renovations to the com munit y.

We would also like to share that we are very interested in talking with you further about an all-natural, biological growth enhancement program we recommend to our clients. We are very aware of the sensitive nature of the Key Marco surroundings and think that you would be interested in hearing more about our program. It can ultimately help to reduce the application rates of your traditional fertilizer products, which is very good for the local
env ironment!

Sincerely,

I am available at your convenience to meet to review, answer questions and tell you more about how we can help you and Key Marco!

The Landscape Florida 'Ldge'

Communic,ition & Technology : Our management team is provided with all the latest in communication and technolog y, making it possible for us to respond to our
clients needs quickly, efficiently and with the highest leve ls of service possible. Each of our crew leaders and technicians have smart phones for communication. Our Operations Managers are equipped with tablets that work in real time to manage our resources and respond to client requests through our " live" work order system. We also deploy specialized cameras for "Remote Property Tours" that are uploaded  to our own YouTube channel for seasonal clients and utilize aerial imaging in much of our work.

Needs Assessment Review and Program: This customized, unique and exclusive Landscape Florida program begins with complete photo docwnentation of our new client's landscape and is followed by a detailed analysis and report of the existing conditions of the landscape and irrigation system. Once complete we review all items with our client and initia te the ne xt phase of the program involv ing landsca pe improvement s, design and enhancement projects to add beauty and value to the property. This detailed and extensive process is a  very effective tool in our relationship witJ1 our cl ie nt and in caring for their liv ing assets! This service is a value added offering that we do not charge a fee to provide.

Propcrtv Inspections & Client Request Svstcm: Completed by our Management Team, our weekly property inspect ion s allow us to provide for more attention to quality and the ear ly id e ntificat io n of potential issues. These reviews tie directly into our 'Live Client Request System" & Custom Landscape Florida APP using our Management Team's devices to log items from landscape needs to ir rig at ion and pest work logs. These  items then appear on our crew leader' s smart phones as their "to do" list. Because this system  is operating in  real time we are able to respond quickly to needs and requests.

UF FLoR'iDA

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Exp rts in Our \;l.o rk: Landscape Florida clients benefit from the knowledge ,
/	ex perience and certifications of our Management Team. We are FNGLA (Florida Nurseryman , Growers & Landscape Association) Certified Horticulture
Professionals , we members of the ISA (International Society of Arbor icu lture), we have a State of Florida Licensed Pest Control Operator on Staff, we participate in
co ntinuin g education programs offered by the University of Florida and The Rooke1y Bay Foundation and  paiticipate  in a wide variety  of  indust1y  related events.  If your are looking for the highest levels  of  Service, Quality &  Expertise  Landscape  Florida is here for you.

R, . o , recs:

Unlike some of our competitors, Landscape Florida ' s Managers are in direct control of all of their resources. We have structured our company to cater specifically to tJ1e needs of professionally managed prope1ties and all aspects of the work provided to our contracted landsca pe management services is handled in house  and unde r our direct control.

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LANDSCAPE
FLORIDA

l;nificd Crews: Landscape Florida sets itself apa1t operationally from some of our large r competitors by deploying what we refer to as Unified Crews. This ap proach commits our resources to our client's properties on an ongoing basis and allows us to continually provide services like pruning of plant materials to eliminate the need for the dreaded property-wide _gas sheari ng of all plants on a rotating baili. It also enables us to be more responsive to client requests and needs.

}		Uniforms ,,ith a Purpm,c: A benefit  of our Senior Management Team's experience with the Walt Disney Company is our approach to the way we uniform our crews and technicia ns. Each team member is uniformed based on the task they perfom1. Crew leaders are dressed in tan so they can be easily ide ntified by clients by compa riso n to the crew members in blue. lrrigat io n technicia ns are dressed in orange so clients can visually recognize when an inspection or repa ir is being perfonn ed. Pest technicians dress is g reen so its apparent that chemical treatments are happening. We have found this unifonn system to be very helpful and appreciated by our clie nts for on more added level to our services!

Special Services and  Projects:  Landscape Florida believes  in  qualit y and providing our clie nts the best value for their mon ey. And beca use of thi s we have our Specia l Se rvices Team that is dedicated to our design, enhan ceme nt  and project offerings fo r our clients. This team can provide everything from annual bedding plants to large scale projects and everything in between.

Clipping !.' J cwslettu·: Many times throughout the year we produce our widely acclaimed ' Clippings" Company Newsletter. We have  been  produc ing  this pub!icat ion fo r more than a decade now and focu s on a wide  range of subjects from projects we are working on to the latest information on invas ive pests, new plant materials, landscape tips, iITigat ion componen ts and gener ally just about anything landscape related that you would want to know about!

"°''"' . LarH.b ca peFlor ida.com: Our home on the internet! Continua lly upd ated our website serves as a great resource fo r our clients. Of particular  interest  to  most,  is our ' Publicat ions' page that serves as a vi1t ual lib rary containing information on a wide variety of subjects from turf grass to pest manage ment. Check it out!

Page IS

KEY MARCO COD REQ UEST FOR QUOTATION
RFQ Number 001

PRICING INFORM ATION
r,wwtv
LANDSCAPE
FLORIDA

Monthly Landscape Management Program M owing, Edging, Blowing, Trimming & Pruning, Weed Management, Fertilizer
& Pest M anagement Program, Irrigation Management Testing & Repairs, Exotic and Vine Management * Below 12 feet):

San Marco Area:	$3,356.75	
Whiskey Creek Drive Area	$4,745.75	
Blue Hill Cr eek Drive Area	$3,472.50	
TOTAL:	$11,575 .00 Per M onth	
Mulch Program (At 2" depth)	$15,361.50	
Tree, Palm and Exotics Above 12feet (see notes)	$25,300.00	

*Exotic & Vine Management Below 12 feet refers to the road ways sides only for the purposes of keep growth back away from the manicured landscape in common areas.

Date	January 2, 2019	
Client	Kev Marco	
Project	Mulch Proqram	
Name	#	Specification	Unit Cost	Tota!	
NOTE: Client RFP provides 3 depth specifications.
Based on our measurements of ALL planting beds identified as Common Areas, we have prepared tl1e following pricing & quantities for the 3 depths of
ann/ication			
Cypress Mulch - 100% Orqanic	2170	Bags, Installed in Planting Beds at a Death of aaproximatelv 1 Inch	$3.95	$8,571.50 °'	
Cypress Mulch - 100%
Orqanic	3990	Bags, Installed in Planting Beds at a
Death of aooroximatelv 2 Inches	$3.85	$15,361.50	
Cypress Mulch - 100% Orqanic	6860	Bags, Installed in Planting Beds at a Depth of aooroximatelv 3 Inches	$3.85	$26,411.00	
					
Pine Straw Available as an Alternate at $8.50/bale					

					

					

					

			TOTAL
BUDGE T		

,ltt/ltv
LANDSCAPE
FLORIDA

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All Material 1s guar a nteed   to be as specified.All work to be compleled in a workmanllke manner according to standard practices. Any alteration or deviationfrom the abo11e specificalions involvingextra costs will be executed only upon written orders and will become an extra charge over and above the estimate. All agreements contingent upon sLik es,accidents and delays beyond our control. Owner to carry fire, tornado,hurricane and other necessary insuranc.eOur workers are f,Jlly covered b y Workme'ns CompensationInsurance. Landscape Floridaisnot responsiblefor any cut cables, lines, pipesor wires. Owner isresponsible for contacting" No-Cutspersonnel. All sod, soiland mulch amounts are estimated quan tities. Final sod, soli and mulch pricing contingent on final fieldmeasurement.sWarranty contingentupon proper care and maintenance, including irrigation. M aterialsnot properly cared for in accordance with FNGLA Standards and Practices, or based on evaluationby Landscape Florida,resultingin plant decline or failureare not covered under warranty. Landscape Floridais not
respons ible fo r 'Acts of God' impacting plant materials. Design providedby Landscape Florida to be "field fit" for best results.

Note:	This Proposal May Be Withdrawn By Us if Not Accepted Within 15 Days.
A	The above prices, specifications and conditionsare satisfactoryand herebyaccepted. You are authorizedto do the work
as specified.Payment will be made within 30 days or all warranties are null and void.

Client

L	Acceptance of Proposal: _ _ _ _

_ _ _

_ _ _ Dat,e: -- - - - -

Date	January 2, 2019	
Client	Key Marco	
Project	Tree & Palm Program
San Marco, Whiskey Creek and Blue Hill Creek Locations	
Name	#	Specification	Unit Cost	Total	
NOTE Based on our detailed review with our Arbor Care Provider we c.re
reco mme nd ing a cha ng e to the specifica tio ns in o r<fe , t o address faten! hurricane  damage, correction and removal in some cases. The program •·.e
h a v e  la i d  out here would accommodate pruning of /raes and palms only 1x
this year and spend the balance oi the work performing the required hardwood tree corTecti on , remova l & rejuvenation cuts {Many han;1,.·oods have expired or are cutTently in decline due to storm damage or work that was done to them) Landscape Florida Strongly Recomme nds a moro
detailed review \vith the client to establish a clear program as the cu,rant needs are not routine.			
S"r l,la·co A ea					
Trim, Clean and Correctively Prune as Needed	1	Sabal Palms, Medjool Date Palms, Large Ficus, Medium Ficus, Oaks &
Brazilian Pepper Hanging Over Fence Line Banyan Trees	$3,400.00	$3,400.00	
\;'   11   sl·e:, C ·;;	Ares					
Trim, Clean and Correctively Prune as Needed	1	Small Banyan Trees, Coconut Palms, Queen Palms, Oak Trees, Sabal
Palms Banyan Trees	$5,800.00	$5,800.00	
B e H: Cr e Area					
Trim, Clean and Correctively Prune as Needed	1		$7,300.00	$7,300.00	
					
Various Locations on
Whiskey Creek Drive and Blue Hill Creek	1	Trim Back Vines & Exotics at Sides of
Roadway l andscapes Above-\ HeiQhts. PR ICE PER OCCURANCE	$8,800.00	$8,800.00	

					
					
			TOTAL	$25,300.00	

p R 0
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0
s

A

All Material is guaranteed to be as specified. All work to be completed,n a workmanlike manner according to standard practices. Any alteration or deviation from the above specfiicationsinvolvingextra costs will be executed only upon written orders and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents anddelays beyond our control. Owner to carry fire. tornado, hurricane and other necessary insurance. Our workers are Jlly covered by Workmen's Compensation Insurance. Landscape Florida is not responsible for any a.itcables, lines, pipes°' wires. Chme< 1sresp:x1sible for contacint g·No -Cuts· personnel. All sod, soil and mulch amounts are estimated quantities. Final sod, soil and mulch pr1cing contingent on final field measurements. Warrantycontingent upon proper care and maintenance,including irrigation. Materials not properly cared for in accordance with FNGLA Standardsand Practices, or

L

based on evaluation by LandscapeFlorida,resulting in plant decline or failure are not covered under warranty. Landscape Floridais not respcnsible for 'Acts of God' impacting plantmaterials. Design provided byLandscape Florida to be "field fit" for best results.

Note:	This Proposal May Be Withdrawn By Us if Not Accepted Within 15 Days.

The above prices, specificationsand conditions are satisfactory and hereby accepted. You are authorized to do the work as specified. Paym ent will be made within 30 days or all warranties are null and void.

Acceptance of Proposal: _ _

_ _ _ _
Client

_ _ _

_ Date: _ _ _ _

	Crawford	Duval	Landscape Florida	TruGreen	
	LLC 2005	INC 2009	LLC 1999		
Mowing Weeding Edging Ornamental Pruning below 12 feet and blowing	$	123,792.00	$	181,569.00	$	138,900.00		
Insecticide, Fungicide, and Fertilizer	$	66,120.00	$	22,069.00	Included	$	32,000.00	
Irrigation (Wetchecks and Repairs, Parts not included)	$	14,112.00	$	25,470.00	Included		
Exotic and Vine Management (Below 12 feet)	Included	$	12,500.00	Included		
Monthly Routine Costs	$	17,002.00	$	19,092.00	$	11,575.00		
Frequency	3 times per week	3 times per week	3 times per week		
Number of Crew Members	3 crew 1 site mgr	4 crew 1 site mgr	4 crew 1 site mgr		
					
Tree & Palms (Arbor above 12 feet)	$	8,540.00	$	11,829.00	$	16,500.00		
Exotic and Vine Management (Above 12 feet)	$	93,600.00	included above	$	8,800.00		
Mulching	$	15,000.00	$	25,248.00	$	15,361.00		
Notes on	Trees & Palms	Exotic & Vine Removal over 12 feet					
Crawford:	As needed	As needed					
Duval:	As needed	As needed					
Landscape Florida:	As needed	Per Occurance					

		
					
Pest Control & Fertilization Services Included:					
Pest Control-Turf Damaging:					
Fungi	Yes	Yes	Yes	Yes	
Chinch Bugs	No	Yes	Yes	Yes	
Scale	Yes	Yes	Yes	Yes	
Fire Ants	Yes	Yes	Yes	No	
White Fly	No	No	No	No	
Mole Crickets	Yes	Yes	Yes	Yes	
Liquid Fertilizers	No	No	No	No	
Biological Fertilizers	No	No	Yes	No	
					
What Services are Subcontracted:			
Arbor above 12 feet	No	No	Yes (Anchor Tree Svc)		

Pest Control	No	Yes (TruGreen)	No		
Irrigation	No	No	No		
					
Number of Employees (total)	250	341	26		
Professional Appearance/Uniforms/Dress Code/Equipment	Yes	Yes	Yes		
Certificate of Insurance	Yes	Yes	Yes		
Business License	Yes	Yes	Yes		
Arbor License	Yes	Yes	No		
Pest Control Operators License	Yes	Yes	Yes		
					
What is not included :					
Annuals and New Plant Materials					
Soil Amendments					
Hurricane and Storm Clean up					
Freeze and Frost Protection					
Tree and Palm Staking/guying					
Weed control on patios, sidewalks and streets					
Irrigation Parts					
Irrigation Pump Systems (Hoover)					

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA

TABLE OF CONTENTS

	    Page		
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-5	
BASIC FINANCIAL STATEMENTS		
Government-Wide Financial Statements:		
Statement of Net Position	6	
Statement of Activities	7	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	8	
Reconciliation of Balance Sheet – Governmental Funds
to Statement of Net Position	
9	
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	
10	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
11	
Notes to the Financial Statements	12-17	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund	
18	
Notes to Required Supplementary Information	19	
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	

20-21	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	

22	
MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
23-24	

INDEPENDENT AUDITOR’S REPORT

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

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

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the major fund of Key Marco Community Development District, Collier County, Florida (“District”) as of and for the fiscal year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the District as of September 30, 2018, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 11, 2019, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Report on Other Legal and Regulatory Requirements

We have also issued our report dated March 11, 2019, on our consideration of the District’s compliance with the requirements of Section 218.415, Florida Statutes, as required by Rule 10.556(10) of the Auditor General of the State of Florida. The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

March 11, 2019

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Key Marco Community Development District, Collier County, Florida (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2018. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $4,977,960.

The change in the District’s total net position in comparison with the prior fiscal year was ($433,336), a decrease. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2018, the District’s governmental fund reported an ending fund balance of
$604,301, a decrease of ($206,022) in comparison with the prior fiscal year. The total fund balance is non-spendable for prepaid items and the remainder is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance functions.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: governmental funds.

OVERVIEW OF FINANCIAL STATEMENTS (Continued)

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains one governmental fund for external reporting. Information is presented in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund. The general fund is considered a major fund.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year.

Key components of the District’s net position are reflected in the following table:

NET POSITION SEPEMBER 30,
 	2018	2017	
Current and other assets	$	646,822   $	887,074	
Capital assets, net of depreciation	 	4,373,659	4,600,973 	
Total assets	 	5,020,481	5,488,047 	
Current liabilities	 	42,521	76,751 	
Total liabilities	 	42,521	76,751 	
Net position		
Investment in capital assets	4,373,659	4,600,973	
Unrestricted	 	604,301	810,323 	
Total net position	  $ 4,977,960 $ 5,411,296 	

The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure) less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending.

The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

The District’s net position decreased during the most recent fiscal year. The majority of the decrease represents the extent to which the cost of operations and depreciation expense exceeded ongoing program revenues.

Key elements of the change in net position are reflected in the following table:

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
 	2018	2017	
Revenues:

Program revenues Charges for services

$	611,423 $

586,260

General revenues	 	85,426	12,474 
Total revenues	 	696,849	598,734 Expenses:
General government	192,078	164,128
Maintenance and operations	 	938,107	722,158 
Total expenses	 	1,130,185	886,286 
Change in net position	(433,336)	(287,552)
Net  position - beginning	 	5,411,296	5,698,848 
Net  position - ending	 $ 4,977,960 $ 5,411,296 
As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2018 was $1,130,185. The costs of the District’s activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, increased during the current fiscal year as a result of an increase in the per unit assessment. In total, expenses, including depreciation, increased from the prior fiscal year. The majority of the increase was the result of an increase in hurricane related expenses and landscape maintenance and repairs.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2018.

CAPITAL ASSETS

At September 30, 2018, the District had $9,630,805 invested in in capital assets for its governmental activities. In the government-wide financial statements depreciation of $5,257,146 has been taken, which resulted in a net book value of $4,373,659. More detailed information about the District’s capital assets is presented in the notes of the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, taxpayers, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Key Marco Community Development District’s management at 505 Whiskey Creek Drive, Marco Island, FL 34145.

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
STATEMENT OF NET POSITION SEPTEMBER 30, 2018

	Governmental
 	Activities		
ASSETS		
Cash	$	641,355	
Accounts receivables	338	
Assessments receivable	4,979	
Prepaids	150	
Capital assets:		
Depreciable	2,404,456	
Nondepreciable	 	1,969,203 	
Total assets	 	5,020,481 	
LIABILITIES
Accounts payable	
 	42,521 	
Total liabilities	 	42,521 	
NET POSITION		
Investment in capital assets	4,373,659	
Unrestricted	 	604,301 	
Total net position	  $ 4,977,960 	

See notes to the financial statements

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

Program

Net (Expense) Revenue and Changes in Net

 	Revenues	Position	 Charges
for	Governmental
Functions/Programs	Expenses	Services	Activities Primary government:
Governmental activities:

General government

$	192,078	$

192,078	$	-

Maintenance and operations	 		938,107	419,345	(518,762) Total governmental activities	 	1,130,185	611,423	(518,762) 

General revenues:
Interest and other revenues	 	85,426 	
Total general revenues	 	85,426 	
Change in net position	(433,336)	
Net position - beginning	 	5,411,296 	
Net position - ending	  $	4,977,960 	

See notes to the financial statements

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2018

   Major Fund 

Total Governmental

 	General	Funds	
ASSETS		
Cash	$	641,355	$	641,355	
Account receivable	338	338	
Assessments receivable	4,979	4,979	
Prepaids	 	150	150 
Total assets	 $	646,822	$	646,822 

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued expenses

  $	42,521	$	42,521 

Nonspendable:		
Prepaids	150	150	
Unassigned	 	604,151	604,151 	
Total fund balances	 	604,301	604,301 	
Total liabilities and fund balances	  $	646,822	$	646,822 	

Total liabilities	 	42,521	42,521 Fund balances:

See notes to the financial statements

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
RECONCILIATION OF BALANCE SHEET – GOVERNMENTAL FUNDS TO STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS SEPTEMBER 30, 2018

Total fund balances - governmental funds	$	604,301 Amounts reported for governmental activities in the statement
of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore, are not reported as assets in the governmental funds. The statement of net position includes
those capital assets, net of any  accumulated the net position of the government as a whole.
Cost of capital assets	depreciation,	in	

9,630,805	
Accumulated depreciation			    (5,257,146)	4,373,659 	
Net position of governmental activities			  $ 4,977,960 	

See notes to the financial statements

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

REVENUES

Total
   Major Fund Governmental
 	General	Funds	

Assessments

$	611,423	$

611,423

Interest and other revenues	 		85,426		85,426 Total revenues	 	696,849	696,849 

EXPENDITURES
Current:
General government	192,078	192,078
Maintenance and operations	700,793	700,793
Capital outlay	 	10,000	10,000 
Total expenditures	 	902,871	902,871 

Excess (deficiency) of revenues
over (under) expenditures	(206,022)	(206,022)

Fund balances - beginning	 	810,323	810,323 

Fund balances - ending	 $	604,301	$	604,301 

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

activities are different because:		
Governmental funds report capital outlays as expenditures, However, in the statement of activities, the cost of those assets is are eliminated and capitalized as capital assets.	

10,000	
Depreciation on capital assets is not recongnized in the governmental fund financial statement but is reported as an expense in the statement of activities.	

 	(237,314) 	
Change in net position of governmental activities	  $ (433,336) 	

Net change in fund balances   - total governmental funds	$ (206,022) Amounts reported for governmental activities in the statement of

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Key Marco Community Development District ("District") was created on July 7, 1992 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, under Collier County Ordinance 92-45. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors ("Board") which is composed of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. Ownership of land within the District entitles the owner to one vote per acre. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final responsibility for:
Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment (Operating-type special assessments for maintenance and debt service are treated as charges for services.) and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments
Assessments are non-ad valorem assessments on benefited lands within the District. Assessments are levied to pay for the operations and maintenance of the District. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. The District’s annual assessments for operations and debt service are billed and collected by the County Tax Assessor/Collector. The amounts remitted to the District are net of applicable discounts or fees and include interest on monies held from the day of collection to the day of distribution.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

The District reports the following major governmental fund:

General Fund
The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.

Assets, Liabilities and Net Position or Equity

Restricted Assets
These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

Deposits and Investments
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing).

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section
218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:

The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Deposits and Investments (Continued)
Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured.

The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.

Inventories and Prepaid Items
Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than
$5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years	
Building and improvements Infrastructure assets Machinery and equipment	10 – 30
10 – 40
20	

In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Fund Equity/Net Position
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

The District can establish limitations on the use of fund balance as follows:

Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

Other Disclosures

Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 3 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 – DEPOSITS

The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

NOTE 5 – CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2018 was as follows:

	Beginning	Ending
Balance	Additions	Reductions	Balance	
Governmental activities
Capital assets, not being depreciated Land and land improvements	

  $	1,969,203   $	-	$	-	$	1,969,203 	
Total capital assets, not being depreciated	 	1,969,203	-	-	1,969,203 	
Capital assets, being depreciated Buildings	
143,369	-	-	143,369	
Improvements	882,684	10,000	9,387	883,297	
Infrastructure	6,511,876	-	-	6,511,876	
Machinery & Equipment	 	123,060	-	-	123,060 	
Total capital assets, being depreciated	 	7,660,989	10,000	9,387	7,661,602 	
Less accumulated depreciation for: Buildings	
111,087	4,779	-	115,866	
Improvements	681,689	21,108	9,387	693,410	
Infrastructure	4,203,627	205,274	-	4,408,901	
Machinery & Equipment	 	32,816	6,153	-	38,969 	
Total accumulated depreciation	 	5,029,219	237,314	9,387	5,257,146 	
Total capital assets, being depreciated, net	 	2,631,770	(227,314)	-	2,404,456 	
Governmental activities capital assets, net	  $	4,600,973   $	(227,314)  $	-	$	4,373,659 	
Depreciation expense was charged to maintenance and operations.

NOTE 6 – LICENSE AGREEMENT

In October 2010, the District entered into an initial five year license agreement with Key Marco Community Association (“KMCA”) wherein the District will have exclusive right and privilege to utilize KMCA’s maintenance building as defined for a monthly license fee of $1,433.33. In connection with this agreement, KMCA’s is solely responsible for the overall maintenance of such property and related insurance coverage. In December 2015, the District and KMCA entered into a new lease agreement whereby the District will pay $2,553 monthly as a lease payment. The District paid $30,636 for the current fiscal year.

NOTE 7 – MANAGEMENT AGREEMENT

In February 2017, the District entered into an agreement with the KMCA regarding District management services. Per the agreement, the HOA Manager will provide District management services and will report to both the KMCA Board and the District Board. The District has agreed to pay KMCA an annual management fee of $72,000. The agreement is for a one year term and is automatically renewed for successive one year periods.

For the fiscal year ended September 30, 2018, the District paid the KMCA $76,750 for these services.

NOTE 8 – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years.

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

REVENUES

 		Budgeted			Actual Original & Final		Amounts

Variance with Final Budget - Positive (Negative)

Assessments

$	629,800	$

611,423	$

(18,377)

Interest and other revenues	 	4,100	85,426	81,326 
Total revenues	 	633,900	696,849	62,949 

EXPENDITURES
Current:
General government	184,345	192,078	(7,733)	
Maintenance and operations	468,800	700,793	(231,993)	
Capital outlay	 	303,000	10,000	293,000 	
Total expenditures	 	956,145	902,871	53,274 	

Excess (deficiency) of revenues over (under) expenditures

$	(322,245) $

(206,022) $

116,223

OTHER FINANCING SOURCES (USES)
Use of fund balance	 	322,245	-	(322,245) Total other financing sources	 	322,245	-	(322,245) 

Net change in fund balances	  $	-		(206,022)	$	(206,022)	

Fund balance - beginning	

 	810,323 		
Fund balance - ending	  $	604,301 		

See notes to required supplementary information

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2018.

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

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of Key Marco Community Development District, Collier County, Florida (“District”) as of and for the fiscal year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated March 11, 2019.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, and contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

March 11, 2019

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

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

We have examined Key Marco Community Development District, Collier County, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2018. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2018.

This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, management, and the Board of Supervisors of Key Marco Community Development District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

March 11, 2019

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

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Key Marco Community Development District ("District") as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated March 11, 2019.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General.

Other Reports and Schedule

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 11, 2019, should be considered in conjunction with this management letter.

Purpose of this Letter

The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following:

Current year findings and recommendations.
Status of prior year findings and recommendations.
Compliance with the Provisions of the Auditor General of the State of Florida.

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of Key Marco Community Development District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Key Marco Community Development District, Collier County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements and the courtesies extended to us.

March 11, 2019

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS

None

PRIOR YEAR FINDINGS AND RECOMMENDATIONS 2017-01 Budget:
Current status: Matter has not recurred.

COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following:

A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2017, except as noted above.

Any recommendations to improve the local governmental entity's financial management.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2018.

Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2018.

The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.

We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2018. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.