KEYS COVE COMMUNITY DEVELOPMENT
DISTRICT

MIAMI-DADE COUNTY REGULAR BOARD MEETING OCTOBER 23, 2024
5:00 P.M.

Special District Services, Inc. 8785 SW 165th Avenue, Suite 200
Miami, FL 33193
www.keyscovecdd.org 786.347.2711 Telephone 877.SDS.4922 Toll Free 561.630.4923 Facsimile

AGENDA
KEYS COVE COMMUNITY DEVELOPMENT DISTRICT
Keys Cove Community Clubhouse 1455 SE 27th Street
Homestead, Florida 33035
REGULAR BOARD MEETING
October 23, 2024
5:00 p.m.

Call to Order
Proof of Publication	Page 1
Establish Quorum
Additions or Deletions to Agenda
Comments from the Public for Items Not on the Agenda
Approval of Minutes
June 26, 2024 Regular Board Meeting & PH Minutes	Page 2
New Business
Consider Resolution No. 2024-05 – Adopting a 2023-2024 Revised Final Budget	Page 7
Consider Resolution No. 2024-06 – Adopting Goals and Objectives	Page 12
Update of the Landshore Enterprises Lake 2 South Shoreline Erosion Control and Maintenance Project
Old Business
Auditor Selection Committee
Ranking of Proposals/Consider Selection of an Auditor	Page 16
Administrative Matters
Financial Report	Page 40
Accept and Receive 2024 Engineers Report	Page 44
Additional Board Member/Staff Comments
District Counsel Update on the 2024 Florida Legislative Session	Page 50
District Counsel Supplement to the Legislative Session	Page 54
Adjourn

Publication Date 2024-10-10

Subcategory Miscellaneous Notices

KEYS COVE COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2024/2025 REGULAR MEETING SCHEDULE
NOTICE IS HEREBY GIVEN that the Board of Supervisors of the Keys Cove Community Development District will hold Regular Meetings at 5:00 p.m. in the meeting room area of the Keys Cove Community Clubhouse located at 1455 SE 27th Street, Homestead, Florida 33035, on the following dates:
October 23, 2024
January 22, 2025
March 26, 2025
May 28, 2025
August 27, 2025
The purpose of the meetings is to conduct any business coming before the Board. The meetings are open to the public and will be conducted in accordance with the provisions of Florida law. Copies of the Agendas for any of the meetings may be obtained from the District's website or by contacting the District Manager at 786- 347-2711 Ext. 2011 and/or toll free at 1-877-737-4922 five (5) days prior to the date of the particular meeting. From time to time one or two Supervisors may participate by telephone; therefore, at the location of these meetings there will be a speaker telephone present so that interested persons can attend the meetings at the above location and be fully informed of the discussions taking place either in person or by telephone communication. Meetings may be continued as found necessary to a time and place specified on the record. If any person decides to appeal any decision made with respect to any matter considered at these meetings, such person will need a record of the proceedings and such person may need to ensure that a verbatim record of the proceedings is made at his or her own expense and which record includes the testimony and evidence on which the appeal is based.
In accordance with the provisions of the Americans with Disabilities Act, any person requiring special accommodations or an interpreter to participate at any of these meetings should contact the District Manager at 786-347-2711 Ext. 2011 and/or toll free at 1-877-737-4922 at least seven (7) days prior to the date of the particular meeting.
Meetings may be cancelled from time to time without advertised notice. KEYS COVE COMMUNITY DEVELOPMENT DISTRICT
www.keyscovecdd.org IPL0197872
Oct 10 2024

Page 1

KEYS COVE COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING & REGULAR BOARD MEETING JUNE 26, 2024

CALL TO ORDER

The June 26, 2024, Regular Board Meeting of the Keys Cove Community Development District (the “District”) was called to order at 5:04 p.m. in the Keys Cove Community Clubhouse located at 1455 SE 27th Street, Homestead, Florida 33035.

PROOF OF PUBLICATION

Proof of publication was presented that notice of the Regular Board Meeting had been published in the Miami Daily Business Review on October 13, 2023, as part of the District’s Fiscal Year 2023/2024 Regular Meeting Schedule, as legally required.

ESTABLISH A QUORUM

It was determined that the attendance of Chairman Carlos Cabezas, Vice Chairman Kenneth Bryant and Supervisor Jeffrey Louis constituted a quorum and it was in order to proceed with the meeting.

Staff in attendance included: District Manager Gloria Perez of Special District Services, Inc.; and General Counsel Ginger Wald of Billing, Cochran, Lyles, Mauro & Ramsey, P.A.

ADDITIONS OR DELETIONS TO AGENDA

There were no additions or deletions to the agenda.

COMMENTS FROM THE PUBLIC FOR ITEMS NOT ON THE AGENDA

There were no comments from the public for items not on the agenda.

F,    APPROVAL OF MINUTES
1. April 24, 2024, Regular Board Meeting

The minutes of the April 24, 2024, Regular Board Meeting were presented, and the Board was asked if they had any comments or corrections.

There being no corrections, a MOTION was made by Supervisor Bryant, seconded by Supervisor Louis and unanimously passed approving the minutes of the April 24, 2024, Regular Board Meeting, as presented.

NEW BUSINESS
Consider Resolution No. 2024-02 Electronic Signature Policy
Mrs. Perez presented Resolution No. 2024-02, entitled:
RESOLUTION 2024-02

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE KEYS COVE COMMUNITY DEVELOPMENT DISTRICT ESTABLISHING AN ELECTRONIC SIGNATURE POLICY, PROVIDING DISTRICT MANAGER WITH AUTHORITY AND RESPONSIBILITY FOR APPROVAL OF ELECTRONIC SIGNATURES AND IMPLEMENTATION OF CONTROL PROCESSES AND PROCEDURES TO ENSURE COMPLIANCE, INTEGRITY, AND SECURITY, IN ACCORDANCE WITH CHAPTER 688, FLORIDA STATUTES; AND PROVIDING FOR SEVERABILITY AND EFFECTIVE DATE.

A MOTION was made by Supervisor Louis, seconded by Supervisor Bryant and unanimously passed to adopt Resolution No. 2024-02, as presented.

Consider Resolution No. 2024-03 – Adopting a Fiscal Year 2024/2025 Meeting Schedule

Mrs. Perez presented Resolution No. 2024-03, entitled:

RESOLUTION NO. 2024-03

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE KEYS COVE COMMUNITY DEVELOPMENT DISTRICT, ESTABLISHING A REGULAR MEETING SCHEDULE FOR FISCAL YEAR 2024/2025 AND SETTING THE TIME AND LOCATION OF SAID DISTRICT MEETINGS; AND PROVIDING AN EFFECTIVE DATE.

Mrs. Perez read the title of the resolution into the record and noted that meetings would remain at the same location with the start time of 5:00 p.m. on the following dates:

October 23, 2024 Amended Budget
January 22, 2025
March 26, 2025 Proposed Budget
May 28, 2025 Final Budget
August 27, 2025

A MOTION was made by Supervisor Louis, seconded by Supervisor Bryant and unanimously passed to adopt Resolution No. 2024-03, approving the Regular Meeting Schedule for Fiscal Year 2024/2025, holding meetings in the Keys Cove Community Clubhouse located at 1455 SE 27th Street, Homestead, Florida 33035, with the start time of 5:00 p.m., and further authorizes the advertisement of same.

Consider Appointment of Audit Committee & Approval of Evaluation Criteria

Ms. Perez stated that the Board needed to begin the auditor selection process once again. This was done years ago. She presented a draft of the RFP Notice to be published and the Evaluation Criteria.

As procedurally done and per Florida Statute, the auditor selection is done by a Committee appointed by the Board. With that being stated:

A MOTION was made by Supervisor Louis, seconded by Supervisor Bryant and unanimously passed to appoint the full District Board as the Auditor Selection Committee.

The Regular Board Meeting was then recessed and the Audit Selection Committee Meeting was convened.

Now sitting as the Auditor Selection Committee, the standard criteria was reviewed, the RFP for proposals was shown and it was noted that it was standard. If approved to move forward, SDS, Inc. will advertise, and the results will be brought back to the Committee for selection. It was noted that approval was needed in order to proceed with the RFP process and use the criteria as presented. Ranking points on the criteria are awarded for each of the 5 criteria. When proposals are brought back, the Committee “ranks” them and an auditor is selected. All five criteria have a maximum award of 10 points each.

A MOTION was made by Supervisor Bryant, seconded by Supervisor Louis and unanimously passed approving the audit selection criteria and for SDS, Inc. to move forward with the RFP process.

The Audit Selection Committee Meeting was then adjourned and the Regular Board Meeting was reconvened.

A MOTION was made by Supervisor Bryant, seconded by Supervisor Louis and unanimously passed approving the Auditor Selection Committee’s recommendation approving the audit selection criteria and directing SDS, Inc. to move forward with the RFP process.

Status of Landshore Enterprises Lake 2 South Shoreline Erosion Control and Maintenance Project

Mrs. Perez provided the information forwarded to her by the District Engineer, Mr. Camacho:

“Notice to Proceed was issued to Landshore Enterprises following the successful completion of Lake 1N. Construction commenced on May 27, 2024.

As of now, we have achieved 100% completion of mobilization, preparation, and preventative measures. Additionally, the project has progressed to 10% completion of the grading and shaping phase.”

OLD BUSINESS
Confirmation of Completion the Landshore Enterprises, Lake 1 North (“Lake 1N”) Shoreline Erosion Control and Maintenance Project

Mrs. Perez provided the information forwarded to her by the District Engineer, Mr. Camacho:

“Lake 1N has been successfully completed and permit was closed on May 16, 2024. Certificate of Completion will be submitted to the District, along with a shoreline maintenance plan.”

Mrs. Perez then recessed the Regular Board Meeting and opened the Public Hearing.

PUBLIC HEARING
Proof of Publication

Proof of publication was presented that notice of the Public Hearing had been published in the Miami Herald
on June 6, 2024, and June 13, 2024, as legally required.

Receive Public Comment on Fiscal Year 2024/2025 Final Budget

Mrs. Perez opened the public comment portion of the Public Hearing to receive comments on the fiscal year 2024/2025 final budget and non-ad valorem special assessments.

There being no comments from the public, the public comment portion of the public hearing was closed.

Consider Resolution No. 2024-04 – Adopting a Fiscal Year 2024/2025 Final Budget

Mrs. Perez presented Resolution No. 2024-04, entitled:

RESOLUTION NO. 2024-04

A RESOLUTION OF THE KEYS COVE COMMUNITY DEVELOPMENT DISTRICT ADOPTING A FISCAL YEAR 2024/2025 BUDGET.

Mrs. Perez read the title of the resolution into the record and stated that it provides for approving and adopting the fiscal year 2023/2024 Final Budget and the non-ad valorem special assessment tax roll (Assessment Levy).

A MOTION was made by Supervisor Bryant, seconded by Supervisor Louis and unanimously passed to adopt Resolution No. 2024-04, approving the Fiscal Year 2024/2025 Final Budget, as presented and setting the fiscal year 2024/2025 Final Budget and non-ad valorem special assessment tax roll (Assessment Levy).

Mrs. Perez then closed the Public Hearing and reconvened the Regular Board Meeting.

ADMINISTRATIVE MATTERS
Financial Update

Mrs. Perez presented the financial statement in the meeting book for Board review. She also noted that available funds as of May 31, 2024, were $727,269.39.

A MOTION was made by Supervisor Bryant, seconded by Supervisor Louis and passed unanimously ratifying and approving the financials, as presented.

SDS Ethics Training Memo

Mrs. Perez provided an overview of the Memorandum Regarding Required Ethics Training and Financial Disclosure that was presented in the meeting book. She further noted the recent changes to the Form 1 submittal currently being an online process and directing the Board to the provided links for their convenience.

2023 – Form 1 – Statement of Financial Interests

Mrs. Perez advised that this year’s filing requirement for the completed 2023 Form 1 must be submitted prior to July 1, 2024, using the Electronic Filing System of the Florida Commission on Ethics, which can be accessed via a link at Login - Electronic Financial Disclosure Management System floridaethics.gov. as previously noted by District Counsel and emphasizing that you will no longer be able to file your completed Form 1 through your local Supervisor of Elections’ office.

2024 General Election and Candidate Qualifying Period

Mrs. Perez advised the Board that pursuant to the Miami-Dade County, Supervisor of Elections Website https://www.voterfocus.com/CampaignFinance/candidate_pr.php?c=miamidade no one qualified for Seats 3 and 4. The Seats are currently held by the following:

AS	Seat 3 Jeffrey Louis	Expires 2024	
AS	Seat 4 Clarence McNish	Expires 2024	

ADDITIONAL BOARD MEMBER/STAFF COMMENTS
Supervisor Louis noted that the Landshore Enterprises company working on site had done a great job with the staging area.
ADJOURNMENT

There being no further business to come before the Board, a MOTION was made by Supervisor Cabezas, seconded by Supervisor Louis adjourning the Regular Board Meeting at 5:2243 p.m. The MOTION carried unanimously.

ATTESTED BY:

Secretary/Assistant Secretary	Chairman/Vice-Chair

RESOLUTION NO. 2024-05

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE KEYS COVE COMMUNITY DEVELOPMENT DISTRICT AUTHORIZING AND ADOPTING AN AMENDED FINAL FISCAL YEAR 2023/2024 BUDGET (“AMENDED BUDGET”), PURSUANT TO CHAPTER 189, FLORIDA STATUTES; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the Board of Supervisors of the Keys Cove Community Development District (“District”) is empowered to provide a funding source and to impose special assessments upon the properties within the District; and,

WHEREAS, the District has prepared for consideration and approval an Amended Budget.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE KEYS COVE COMMUNITY DEVELOPMENT DISTRICT, THAT:

Section 1.  The Amended Budget for Fiscal Year 2023/2024 attached hereto as Exhibit “A” is hereby approved and adopted.

Section 2.  The Secretary/Assistant Secretary of the District is authorized to execute any and all necessary transmittals, certifications or other acknowledgements or writings, as necessary, to comply with the intent of this Resolution.

PASSED, ADOPTED and EFFECTIVE this 23rd day of October, 2024.

ATTEST:	KEYS COVE
COMMUNITY DEVELOPMENT DISTRICT

By:			By:		 Secretary/Assistant Secretary			Chairperson/Vice Chairperson

Keys Cove Community Development District

Amended Final Budget For Fiscal Year 2023/2024
October 1, 2023 - September 30, 2024

CONTENTS

AMENDED FINAL OPERATING FUND BUDGET

AMENDED FINAL DEBT SERVICE FUND BUDGET

AMENDED FINAL BUDGET
KEYS COVE COMMUNITY DEVELOPMENT DISTRICT OPERATING FUND
FISCAL YEAR 2023/2024 OCTOBER 1, 2023 - SEPTEMBER 30, 2024

REVENUES	FISCAL YEAR 2023/2024 BUDGET 10/1/23 - 9/30/24	AMENDED FINAL BUDGET
10/1/23 - 9/30/24	YEAR TO DATE ACTUAL
10/1/23 - 9/29/24	
Administrative Assessments	88,422	93,760	93,760	
Maintenance Assessments	375,000	375,001	375,001	
Debt Assessments	613,370	613,377	613,377	
Other Revenues	0	0	0	
Interest Income	480	52,550	52,496	
			.	
Total Revenues	$	1,077,272	$	1,134,688	$	1,134,634	
				
ADMINISTRATIVE EXPENDITURES				
Supervisor Fees	6,000	1,800	1,800	
Payroll Taxes - Employer	480	138	138	
Management	34,032	34,032	34,032	
Reimbursables (Postage/Office Supplies)	1,050	400	371	
Legal	12,000	10,500	8,423	
Assessment Roll	7,500	7,500	7,500	
Audit Fees	3,800	3,800	3,800	
Arbitrage Rebate Fee	650	650	650	
Insurance	8,310	8,147	8,147	
Legal Advertisements	750	3,700	2,569	
Miscellaneous	2,000	2,800	2,521	
Dues & Subscriptions	175	175	175	
Trustee Fees	4,500	4,246	4,246	
Website Management	2,000	2,000	2,000	
Continuing Disclosure Fee	350	350	350	
TOTAL ADMINISTRATIVE EXPENDITURES	$	83,597	$	80,238	$	76,722	
				
MAINTENANCE EXPENDITURES				
Maintenance Contingency	55,000	55,000	0	
Storm Drainage Maintenance	30,000	30,000	3,348	
Roadway Resurfacing Project	60,000	60,000	0	
Maintenance Reserve	25,000	25,000	0	
Fountain Maintenance	18,000	14,000	11,505	
Holiday Contribution	2,500	2,500	0	
Engineering/Inspections	12,000	9,000	6,902	
North Lake Erosion Project	150,000	161,335	161,335	
South Lake Erosion Project	0	400,000	336,004	
TOTAL MAINTENANCE EXPENDITURES	$	352,500	$	756,835	$	519,094	
				
TOTAL EXPENDITURES	$	436,097	$	837,073	$	595,816	
				
EXCESS/ (SHORTFALL)	$	641,175	$	297,615	$	538,818	
				
Bond Payments	(576,568)	(587,720)	(587,720)	
				
Balance	$	64,607	$	(290,105)	$	(48,902)	
				
County Appraiser & Tax Collector Fee	(21,535)	(10,459)	(10,459)	
Discounts For Early Payments	(43,072)	(34,623)	(34,623)	
				
Excess/ (Shortfall)	$	-	$	(335,187)	$	(93,984)	
				
Carryover From Prior Year	0	0	0	
				
Net Excess/ (Shortfall)	$	-	$	(335,187)	$	(93,984)	

FUND BALANCE AS OF 9/30/23	
FY 2023/2024 ACTIVITY	
FUND BALANCE AS OF 9/30/24	

$1,638,838	
($335,187)	
$1,303,651	

Notes
Fund Balance Includes Maintenance, Storm Drainage, Roadway Resurfacing And Improvements (Erosion Project) Reserves.
Reserve Funds Balance As Of 9/30/2024 is $1,110,718 - Maintenance (150,000), Storm Drainage (114,015), Roadways (175,530), Erosion (671,173). Unspent Maintenance, Storm Drainage Maintenance & Roadway Resurfacing To Be Added To Reserves On 10/1/24.
Erosion Expenditures (Over Budget) To Be Deducted From Erosion Reserve On 10/1/24.

AMENDED FINAL BUDGET
KEYS COVE COMMUNITY DEVELOPMENT DISTRICT DEBT SERVICE FUND
FISCAL YEAR 2023/2024 OCTOBER 1, 2023 - SEPTEMBER 30, 2024

REVENUES	FISCAL YEAR 2023/2024 BUDGET
10/1/23 - 9/30/24	AMENDED FINAL BUDGET
10/1/23 - 9/30/24	YEAR TO DATE ACTUAL
10/1/23 - 9/29/24	
Interest Income	100	21,800	21,767	
NAV Tax Collection	576,568	587,720	587,720	
Total Revenues	$	576,668	$	609,520	$	609,487	
				
EXPENDITURES				
Principal Payments	424,000	424,000	424,000	
Interest Payments	142,558	148,070	148,070	
Bond Redemption	10,110	0	0	
Total Expenditures	$	576,668	$	572,070	$	572,070	
				
EXCESS/ (SHORTFALL)	$	-	$	37,450	$	37,417	

FUND BALANCE AS OF 9/30/23	
FY 2023/2024 ACTIVITY	
FUND BALANCE AS OF 9/30/24	

$390,444	
$37,450	
$427,894	

Note*: Reserve Fund Balance = $109,446. Revenue Fund Balance = $318,448. Revenue Fund Balance To Be Used To Make 11/1/2024 Interest Payment Of $68,523.
* Approximate Amounts

Series 2019 Bond Refunding Information
Original Par Amount =	$7,322,000	Annual Principal Payments Due:
Interest Rate =	2.60%	May 1st
Issue Date =	December 2019	Annual Interest Payments Due:
Maturity Date =	May 2035	May 1st & November 1st

Par Amount As Of 9/30/24 =	$5,271,000

10/11/2024 11:33 AM	II

RESOLUTION 2024-06

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE KEYS COVE COMMUNITY DEVELOPMENT DISTRICT ADOPTING GOALS, OBJECTIVES, AND PERFORMANCE MEASURES AND STANDARDS; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the Keys Cove Community Development District (the “District”) is a local unit of special-purpose government created and existing under and pursuant to Chapters 189 and 190, Florida Statutes, as amended; and

WHEREAS, effective July 1, 2024, the Florida Legislature adopted House Bill 7013, codified as Chapter 2024-136, Laws of Florida (“HB 7013”) and creating Section 189.0694, Florida Statutes; and

WHEREAS, pursuant to HB 7013 and Section 189.0694, Florida Statutes, beginning October 1, 2024, the District shall establish goals and objectives for the District and create performance measures and standards to evaluate the District’s achievement of those goals and objectives; and

WHEREAS, the District Manager has prepared the attached goals, objectives, and performance measures and standards and presented them to the Board of the District; and

WHEREAS, the District’s Board of Supervisors (“Board”) finds that it is in the best interests of the District to adopt by resolution the attached goals, objectives and performance measures and standards.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE KEYS COVE COMMUNITY DEVELOPMENT DISTRICT:

SECTION 1. The recitals so stated are true and correct and by this reference are incorporated into and form a material part of this Resolution.

SECTION 2. The District Board of Supervisors hereby adopts the goals, objectives and performance measures and standards as provided in Exhibit “A”. The District Manager shall take all actions to comply with Section 189.0694, Florida Statutes, and shall prepare an annual report regarding the District’s success or failure in achieving the adopted goals and objectives for consideration by the Board of the District.

SECTION 3. If any provision of this resolution is held to be illegal or invalid, the other provisions shall remain in full force and effect.

SECTION 4. This resolution shall become effective upon its passage and shall remain in effect unless rescinded or repealed.

PASSED AND ADOPTED this _23rd	day of 	October	, 2024.

ATTEST:	KEYS COVE COMMUNITY DEVELOPMENT DISTRICT

Secretary/Assistant Secretary	Chair/Vice Chair

Exhibit “A”: Performance Measures/Standards and Annual Reporting

EXHIBIT “A”

Program/Activity:	District Administration
Goal:	Remain compliant with Florida Law for all District meetings

Objectives:
Notice all District regular meetings, special meetings, and public hearings
Conduct all post-meeting activities
District records retained in compliance with Florida Sunshine Laws

Performance Measures:
All Meetings publicly noticed as required.
Achieved: Yes ☐ No ☐
Meeting minutes and post-meeting action completed.
Achieved: Yes ☐ No ☐
District records retained as required by law.
Achieved: Yes ☐ No ☐

Program/Activity:	District Finance
Goal:	Remain Compliant with Florida Law for all district financing activities

Objectives:
District adopted fiscal year proposed budget and the final fiscal year budget.
District amended fiscal year budget within 60 days following the end of the fiscal year.
Process all District finance accounts receivable and payable
Support District annual financial audit activities

Performance Measures:
District adopted fiscal year proposed budget and the final fiscal year budget.
Achieved: Yes ☐ No ☐
District amended budget within 60 days following the end of the fiscal year.
Achieved: Yes ☐ No ☐
District accounts receivable/payable processed for the year.
Achieved: Yes ☐ No ☐
“No findings” for annual financial audit (yes/no)
Achieved: Yes ☐ No ☐
If “yes” explain: 	

Program/Activity:	District Operations
Goal:	Insure, Operate and Maintain District owned Infrastructure & assets

Objectives:
Annual renewal of District insurance policy(s).
Obtain all necessary contracted services for District operations and infrastructure.
Determine all vendors are in compliance with District contracts.

Performance Measures:
District insurance policies reviewed and in place.
Achieved: Yes ☐ No ☐
Contracted Services obtained for all District operations.
Achieved: Yes ☐ No ☐
All District contracts in compliance.
Achieved: Yes ☐ No ☐

October 23, 2024

RE: Keys Cove Community Development District

The Keys Cove Community Development District is required to select an auditor to perform the audit for the district for the years ending September 30, 2024, September 30, 2025 and September 30, 2026; with an option for an additional two-year renewal.

In accordance with the Auditor Selection procedures as outlined by Florida Statute 218.391, the District has established the auditor selection criteria and has placed a legal advertisement requesting proposals from qualified audit firms.

The current auditor for the Keys Cove Community Development District is the firm of Grau & Associates.
Grau & Associates was the only firm to respond to the legal advertisement requesting proposals to perform the fiscal year ending September 30, 2024, September 30, 2025 and September 30, 2026 audits. The proposed fee for the audit for fiscal year ending September 30, 2024 is $3,500.00. The proposed fee for the audit for fiscal year ending September 30, 2025 is $3,600.00. The proposed fee for the audit for fiscal year ending September 30, 2026 audit is $3,700.00. The proposed fee for the audit for fiscal year ending September 30, 2027 (option year) is $3,800.00. And the proposed fee for the audit for fiscal year ending September 30, 2028 (option year) is $3,900.00. The approved fee for the fiscal year ending September 30, 2023 audit, which Grau & Associates has completed, was $3,800.00. The proposed Audit Fee budget for Fiscal Year 2024/2025 is
$3,900.00.

Management would like to report that it is pleased with the professionalism and the competence of the Grau and Associates, partners and supporting staff.

It is recommended at this time that Grau & Associates be hired to perform the September 30, 2024, September 30, 2025 and September 30, 2026 annual government audits and also be selected, subject to fee adjustments for inflation, to perform the fiscal year end audits for the following two years (FYE 9/30/27 and 9/30/28).

Special District Services, Inc.

Proposal to Provide Financial Auditing Services:
KEYS COVE
Community Development District

Proposal Due: August 22, 2024 4:00PM
Submitted to:
Keys Cove
Community Development District c/o SDS
2501A Burns Road
Palm Beach Gardens, Florida 33410
Submitted by:
Antonio J. Grau, Partner Grau & Associates
951 Yamato Road, Suite 280 Boca Raton, Florida 33431 Tel	(561) 994-9299
(800) 229-4728
Fax	(561) 994-5823
tgrau@graucpa.com www.graucpa.com

Table of Contents

PAGE

EXECUTIVE SUMMARY / TRANSMITTAL LETTER	1
FIRM QUALIFICATIONS	3
FIRM & STAFF EXPERIENCE	6
REFERENCES	11
SPECIFIC AUDIT APPROACH	13
COST OF SERVICES	17
SUPPLEMENTAL INFORMATION	19

August 22, 2024

Keys Cove Community Development District C/o SDS
2501A Burns Road
Palm Beach Gardens, Florida 33410
Re:	Request for Proposal for Professional Auditing Services for the fiscal year ended September 30, 2024-2026, with an option for two (2) additional annual renewals.

Grau & Associates (Grau) welcomes the opportunity to respond to the Keys Cove Community Development District’s (the “District”) Request for Proposal (RFP), and we look forward to working with you on your audit. We are an energetic and robust team of knowledgeable professionals and are a recognized leader of providing services to Community Development Districts. As one of Florida’s few firms to primarily focus on government, we are especially equipped to provide you an effective and efficient audit.
Special district audits are at the core of our practice: we have a total of 360 clients, 329 or 91% of which are special districts. We know the specifics of the professional services and work products needed to meet your RFP requirements like no other firm. With this level of experience, we are able to increase efficiency, to provide immediate and continued savings, and to minimize disturbances to client operations.

Why Grau & Associates:

Knowledgeable Audit Team
Grau is proud that the personnel we assign to your audit are some of the most seasoned auditors in the field. Our staff performs governmental engagements year round. When not working on your audit, your team is refining their audit approach for next year’s audit. Our engagement partners have decades of experience and take a hands-on approach to our assignments, which all ensures a smoother process for you.
Servicing your Individual Needs
Our clients enjoy personalized service designed to satisfy their unique needs and requirements. Throughout the process of our audit, you will find that we welcome working with you to resolve any issues as swiftly and easily as possible. In addition, due to Grau’s very low turnover rate for our industry, you also won’t have to worry about retraining your auditors from year to year.

Developing Relationships
We strive to foster mutually beneficial relationships with our clients. We stay in touch year round, updating, collaborating and assisting you in implementing new legislation, rules and standards that affect your organization. We are also available as a sounding board and assist with technical questions.

Maintaining an Impeccable Reputation
We have never been involved in any litigation, proceeding or received any disciplinary action. Additionally, we have never been charged with, or convicted of, a public entity crime of any sort. We are financially stable and have never been involved in any bankruptcy proceedings.

Complying With Standards
Our audit will follow the Auditing Standards of the AICPA, Generally Accepted Government Auditing Standards, issued by the Comptroller General of the United States, and the Rules of the Auditor General of the State of Florida, and any other applicable federal, state and local regulations. We will deliver our reports in accordance with your requirements.
This proposal is a firm and irrevocable offer for 90 days. We certify this proposal is made without previous understanding, agreement or connection either with any previous firms or corporations offering a proposal for the same items. We also certify our proposal is in all respects fair, without outside control, collusion, fraud, or otherwise illegal action, and was prepared in good faith. Only the person(s), company or parties interested in the project as principals are named in the proposal. Grau has no existing or potential conflicts, and anticipates no conflicts during the engagement. Our Federal I.D. number is 20-2067322.
We would be happy to answer any questions or to provide any additional information. We are genuinely excited about the prospect of serving you and establishing a long-term relationship. Please do not hesitate to call or email either of our Partners, Antonio J. Grau, CPA (tgrau@graucpa.com) or David Caplivski, CPA (dcaplivski@graucpa.com) at 561.994.9299. We thank you for considering our firm’s qualifications and experience.

Very truly yours, Grau & Associates
Antonio J. Grau

Firm Qualifications

9/15
Employees are CPAS

3

11

2

Grau’s Focus and Experience

Our Team

Year founded

Partners

Professional Staff

Administrative Professionals

Properly registered and licensed professional corporation by the state of FLORIDA

We are proud Members of the American Institute of Certified Public Accountants
&

9
Professional Groups

the Florida Institute of Certified Public Accountants

Services Provided

See next page for report and certificate

 External quality review program: consistently receives a pass
 Internal: ongoing monitoring to maintain quality

AICPA | FICPA | GFOA | FASD | FGFOA

Program

•

PA	,-.AICPA	Peer Review

Florida Institute of Certified Public Accountants

FICPA Peer Review Program Administered in Florida
bv The Florida Institute of CPAs

AICPA Peer Review Program Administered in Florida
by the Florida Institute of CPAs

March 17, 2023

Antonio Grau Grau & Associates
951 Yamato Rd Ste 280
Boca Raton, FL 33431-1809 Dear Antonio Grau:
It is my pleasure to notify you that on March 16, 2023, the Florida Peer Review Committee accepted the report on the most recent System Review of your firm. The due date for your next review is December 31,
2025. This is the date by which all review documents should be completed and submitted to the administering entity.

As you know, the report had a peer review rating of pass. The Committee asked me to convey its congratulations to the firm.

Thank you for your cooperation. Sincerely,

Peer Review Team
FICPA Peer Review Committee 850.224.2727, x5957
cc: Daniel Hevia, Racquel McIntosh
Firm Number: 900004390114	Review Number: 594791

119 S Monroe Street, Suite 121 I Tallahassee, FL 323011 850.224.2727, in Florida I www.ficpa.org

Firm & Staff Experience

GRAU AND ASSOCIATES COMMUNITY
DEVELOPMENT DISTRICT EXPERIENCE BY MANAGEMENT COMPANY

OTHER
19

PFM
12

WRATHELL
30

GMS
78

INFRAMARK
38

SDS
60

RIZZETTA
47

MERITUS
23

Profile Briefs:
Antonio J GRAU, CPA (Partner)
Years Performing Audits: 35+
CPE (last 2 years): Government Accounting, Auditing: 32 hours; Accounting, Auditing and Other: 58 hours
Professional Memberships: AICPA, FICPA, FGFOA, GFOA

David Caplivski, CPA (Partner)
Years Performing Audits: 13+
CPE (last 2 years): Government Accounting, Auditing: 48 hours; Accounting, Auditing and Other: 33 hours
Professional Memberships: AICPA, FICPA, FGFOA, FASD

“Here at Grau & Associates, staying up to date with the current technological landscape is one of our top priorities. Not only does it provide a more positive experience for our clients, but it also allows us to perform a more effective and efficient audit. With the every changing technology available and utilized by our clients, we are constantly innovating our audit process.”
-	Tony Grau
“Quality audits and exceptional client service are at the heart of every decision we make. Our clients trust us to deliver a quality audit, adhering to high standards and assisting them with improvements for their organization.”
- David Caplivski

YOUR ENGAGEMENT TEAM

Grau’s client-specific engagement team is meticulously organized in order to meet the unique needs of each client. Constant communication within our solution team allows for continuity of staff and audit team.

The Certified Information Technology Professional (CITP) Partner will bring a unique blend of IT expertise and understanding of accounting principles to the financial statement audit of the District.

Advisory Consultant

An advisory consultant will be available as a sounding board to advise in those areas where problems are encountered.

CITP Partner

Your Successful Audit

Engagement Partner

Audit Senior

Audit Manager

The assigned personnel will work closely with the partner and the District to ensure that the financial statements and all other reports are prepared in accordance with professional standards and firm policy.
Responsibilities will include planning the audit; communicating with the client and the partners the progress of the audit; and
determining that financial statements and all reports issued by the firm are accurate, complete and are prepared in accordance with professional standards and firm policy.

The Engagement Partner will participate extensively during the various stages of the engagement and has direct responsibility for engagement policy, direction, supervision, quality control, security, confidentiality of information of the engagement and communication with client personnel. The engagement partner will also be involved directing the development of the overall audit approach and plan; performing an overriding review of work papers and ascertain client satisfaction.

Antonio ‘Tony ‘J. Grau, CPA
Partner
Contact: tgrau@graucpa.com | (561) 939-6672
Experience
For over 30 years, Tony has been providing audit, accounting and consulting services to the firm’s governmental, non-profit, employee benefit, overhead and arbitrage clients. He provides guidance to clients regarding complex accounting issues, internal controls and operations.
As a member of the Government Finance Officers Association Special Review Committee, Tony participated in the review process for awarding the GFOA Certificate of Achievement in Financial Reporting. Tony was also the review team leader for the Quality Review of the Office of Management Audits of School Board of Miami-Dade County. Tony received the AICPA advanced level certificate for governmental single audits.
Education
University of South Florida (1983) Bachelor of Arts
Business Administration

Clients Served (partial list)

(>300) Various Special Districts, including:		
Bayside Improvement Community Development District Dunes Community Development District
Fishhawk Community Development District (I, II, IV) Grand Bay at Doral Community Development District Heritage Harbor North Community Development District	St. Lucie West Services District
Ave Maria Stewardship Community District Rivers Edge II Community Development District Bartram Park Community Development District
Bay Laurel Center Community Development District	
Boca Raton Airport Authority Greater Naples Fire Rescue District
Key Largo Wastewater Treatment District Lake Worth Drainage District
South Indian River Water Control		

Professional Associations/Memberships
American Institute of Certified Public Accountants Florida Government Finance Officers Association Florida Institute of Certified Public Accountants Government Finance Officers Association Member City of Boca Raton Financial Advisory Board Member

Professional Education (over the last two years)
Course	Hours
Government Accounting and Auditing	32
Accounting, Auditing and Other	58
Total Hours	90 (includes of 4 hours of Ethics CPE)

David Caplivski, CPA/CITP, Partner
Contact : dcaplivski@graucpa.com / 561-939-6676
Experience
Grau & Associates	Partner	2021-Present	
Grau & Associates	Manager	2014-2020	
Grau & Associates	Senior Auditor	2013-2014	
Grau & Associates	Staff Auditor	2010-2013	

Education
Florida Atlantic University (2009) Master of Accounting
Nova Southeastern University (2002) Bachelor of Science
Environmental Studies

Certifications and Certificates
Certified Public Accountant (2011)
AICPA Certified Information Technology Professional (2018) AICPA Accreditation COSO Internal Control Certificate (2022)

Clients Served (partial list)
(>300) Various Special Districts	Hispanic Human Resource Council	
Aid to Victims of Domestic Abuse	Loxahatchee Groves Water Control District	
Boca Raton Airport Authority	Old Plantation Water Control District	
Broward Education Foundation	Pinetree Water Control District	
CareerSource Brevard	San Carlos Park Fire & Rescue Retirement Plan	
CareerSource Central Florida 403 (b) Plan	South Indian River Water Control District	
City of Lauderhill GERS	South Trail Fire Protection & Rescue District	
City of Parkland Police Pension Fund	Town of Haverhill	
City of Sunrise GERS	Town of Hypoluxo	
Coquina Water Control District	Town of Hillsboro Beach	
Central County Water Control District	Town of Lantana	
City of Miami (program specific audits)	Town of Lauderdale By-The–Sea Volunteer Fire Pension	
City of West Park	Town of Pembroke Park	
Coquina Water Control District	Village of Wellington	
East Central Regional Wastewater Treatment Facl.	Village of Golf	
East Naples Fire Control & Rescue District		
Professional Education (over the last two years)
Course	Hours
Government Accounting and Auditing	48
Accounting, Auditing and Other	33
Total Hours	81 (includes 4 hours of Ethics CPE)
Professional Associations
Member, American Institute of Certified Public Accountants Member, Florida Institute of Certified Public Accountants Member, Florida Government Finance Officers Association Member, Florida Association of Special Districts

References

We have included three references of government engagements that require compliance with laws and regulations, follow fund accounting, and have financing requirements, which we believe are similar to the District.

 Dunes Community Development District		
Scope of Work	Financial audit	
Engagement Partner	Antonio J. Grau	
Dates	Annually since 1998	
Client Contact	Darrin Mossing, Finance Director 475 W. Town Place, Suite 114
St. Augustine, Florida 32092
                    904-940-5850		

 Two Creeks Community Development District		
Scope of Work	Financial audit	
Engagement Partner	Antonio J. Grau	
Dates	Annually since 2007	
Client Contact	William Rizzetta, President 3434 Colwell Avenue, Suite 200
Tampa, Florida 33614
                   813-933-5571		

 Journey’s End Community Development District		
Scope of Work	Financial audit	
Engagement Partner	Antonio J. Grau	
Dates	Annually since 2004	
Client Contact	Todd Wodraska, Vice President 2501 A Burns Road
Palm Beach Gardens, Florida 33410
                   561-630-4922		

Specific Audit Approach

AUDIT APPROACH
Grau’s Understanding of Work Product / Scope of Services:
We recognize the District is an important entity and we are confident our firm is eminently qualified to meet the challenges of this engagement and deliver quality audit services. You would be a valued client of our firm and we pledge to commit all firm resources to provide the level and quality of services (as described below) which not only meet the requirements set forth in the RFP but will exceed those expectations. Grau & Associates fully understands the scope of professional services and work products requested. Our audit will follow the Auditing Standards of the AICPA, Generally Accepted Government Auditing Standards, issued by the Comptroller General of the United States, and the Rules of the Auditor General of the State of Florida and any other applicable Federal, State of Local regulations. We will deliver our reports in accordance with your requirements.

Proposed segmentation of the engagement
Our approach to the audit engagement is a risk-based approach which integrates the best of traditional auditing techniques and a total systems concept to enable the team to conduct a more efficient and effective audit. The audit will be conducted in three phases, which are as follows:

PHASE I:
Preliminary Planning

PHASE II:
Execution of the Audit Plan

PHASE III:
Completion and Delivery

Phase I - Preliminary Planning
A thorough understanding of your organization, service objectives and operating environment is essential for the development of an audit plan and for an efficient, cost-effective audit. During this phase, we will meet with appropriate personnel to obtain and document our understanding of your operations and service objectives and, at the same time, give you the opportunity to express your expectations with respect to the services that we will provide. Our work effort will be coordinated so that there will be minimal disruption to your staff.
During this phase we will perform the following activities:
» Review the regulatory, statutory and compliance requirements. This will include a review of applicable federal and state statutes, resolutions, bond documents, contracts, and other agreements;
» Read minutes of meetings;
» Review major sources of information such as budgets, organization charts, procedures, manuals, financial systems, and management information systems;
» Obtain an understanding of fraud detection and prevention systems;
» Obtain and document an understanding of internal control, including knowledge about the design of relevant policies, procedures, and records, and whether they have been placed in operation;
» Assess risk and determine what controls we are to rely upon and what tests we are going to perform and perform test of controls;
» Develop audit programs to incorporate the consideration of financial statement assertions, specific audit objectives, and appropriate audit procedures to achieve the specified objectives;
» Discuss and resolve any accounting, auditing and reporting matters which have been identified.

Phase II – Execution of Audit Plan
The audit team will complete a major portion of transaction testing and audit requirements during this phase. The procedures performed during this period will enable us to identify any matter that may impact the completion of our work or require the attention of management. Tasks to be performed in Phase II include, but are not limited to the following:
» Apply analytical procedures to further assist in the determination of the nature, timing, and extent of auditing procedures used to obtain evidential matter for specific account balances or classes of transactions;
» Perform tests of account balances and transactions through sampling, vouching, confirmation and other analytical procedures; and
» Perform tests of compliance.
Phase III - Completion and Delivery

In this phase of the audit, we will complete the tasks related to year-end balances and financial reporting. All reports will be reviewed with management before issuance, and the partners will be available to meet and discuss our report and address any questions. Tasks to be performed in Phase III include, but are not limited to the following:

» Perform final analytical procedures;
» Review information and make inquiries for subsequent events; and
» Meeting with Management to discuss preparation of draft financial statements and any potential findings or recommendations.

You should expect more from your accounting firm than a signature in your annual financial report. Our concept of truly responsive professional service emphasizes taking an active interest in the issues of concern to our clients and serving as an effective resource in dealing with those issues. In following this approach, we not only audit financial information with hindsight but also consider the foresight you apply in managing operations.

Application of this approach in developing our management letter is particularly important given the increasing financial pressures and public scrutiny facing today’s public officials. We will prepare the management letter at the completion of our final procedures.
In preparing this management letter, we will initially review any draft comments or recommendations with management. In addition, we will take necessary steps to ensure that matters are communicated to those charged with governance.
In addition to communicating any recommendations, we will also communicate the following, if any:

» Significant audit adjustments;
» Significant deficiencies or material weaknesses;
» Disagreements with management; and
» Difficulties encountered in performing the audit.

Is the recommendation cost effective?
Is the recommendation the simplest to effectuate in order to correct a problem?

Is the recommendation at the heart of the problem and not just correcting a symptomatic matter?

Is the corrective action taking into account why the deficiency occurred?

Our findings will contain a statement of condition describing the situation and the area that needs strengthening, what should be corrected and why. Our suggestions will withstand the basic tests of corrective action:

To assure full agreement with facts and circumstances, we will fully discuss each item with Management prior to the final exit conference. This policy means there will be no “surprises” in the management letter and fosters a professional, cooperative atmosphere.

Communications
We emphasize a continuous, year-round dialogue between the District and our management team. We regularly communicate through personal telephone calls and electronic mail throughout the audit and on a regular basis.
Our clients have the ability to transmit information to us on our secure client portal with the ability to assign different staff with separate log on and viewing capability. This further facilitates efficiency as all assigned users receive electronic mail notification as soon as new information has been posted into the portal.

Cost of Services

Our proposed all-inclusive fees for the financial audit for the fiscal years ended September 30, 2024-2028 are as follows:

  Year Ended September 30,			Fee		
2024	$3,500	
2025	$3,600	
2026	$3,700	
2027	$3,800	
2028	$3,900	
TOTAL (2024-2028)	$18,500	

The above fees are based on the assumption that the District maintains its current level of operations. Should conditions change or additional debt is issued the fees would be adjusted accordingly upon approval from all parties concerned.

Supplemental Information

PARTIAL LIST OF CLIENTS

 	Governmental Audit	Single Audit	Utility Audit	
Current Client	
Year End	
Boca Raton Airport Authority					9/30	
Captain's Key Dependent District					9/30	
Central Broward Water Control District					9/30	
Coquina Water Control District					9/30	
East Central Regional Wastewater Treatment Facility					9/30	
Florida Green Finance Authority					9/30	
Greater Boca Raton Beach and Park District					9/30	
Greater Naples Fire Control and Rescue District					9/30	
Green Corridor P.A.C.E. District					9/30	
Hobe-St. Lucie Conservancy District					9/30	
Indian River Mosquito Control District					9/30	
Indian Trail Improvement District					9/30	
Key Largo Wastewater Treatment District					9/30	
Lake Asbury Municipal Service Benefit District					9/30	
Lake Padgett Estates Independent District					9/30	
Lake Worth Drainage District					9/30	
Loxahatchee Groves Water Control District					9/30	
Old Plantation Control District					9/30	
Pal Mar Water Control District					9/30	
Pinellas Park Water Management District					9/30	
Pine Tree Water Control District (Broward)					9/30	
Pinetree Water Control District (Wellington)					9/30	
Port of The Islands Community Improvement District					9/30	
Ranger Drainage District					9/30	
Renaissance Improvement District					9/30	
San Carlos Park Fire Protection and Rescue Service District					9/30	
Sanibel Fire and Rescue District					9/30	
South Central Regional Wastewater Treatment and Disposal Board					9/30	
South-Dade Venture Development District					9/30	
South Indian River Water Control District					9/30	
South Trail Fire Protection & Rescue District					9/30	
Spring Lake Improvement District					9/30	
St. Lucie West Services District					9/30	
Sunrise Lakes Phase IV Recreation District					9/30	
Sunshine Water Control District					9/30	
Sunny Hills Units 12-15 Dependent District					9/30	
West Villages Independent District					9/30	
Various Community Development Districts (452)					9/30	
TOTAL	490	5	4	484		

ADDITIONAL SERVICES

CONSULTING / MANAGEMENT ADVISORY SERVICES
Grau & Associates also provide a broad range of other management consulting services. Our expertise has been consistently utilized by Governmental and Non-Profit entities throughout Florida. Examples of engagements performed are as follows:

Accounting systems
Development of budgets
Organizational structures
Financing alternatives
IT Auditing	Fixed asset records
Cost reimbursement
Indirect cost allocation
Grant administration and compliance	

ARBITRAGE

The federal government has imposed complex rules to restrict the use of tax-exempt financing. Their principal purpose is to eliminate any significant arbitrage incentives in a tax-exempt issue. We have determined the applicability of these requirements and performed the rebate calculations for more than 150 bond issues, including both fixed and variable rate bonds.

73

Current Arbitrage Calculations

We look forward to providing Keys Cove Community Development District with our resources and experience to accomplish not only those minimum requirements set forth in your Request for Proposal, but to exceed those expectations!

For even more information on Grau & Associates please visit us on www.graucpa.com.

Keys Cove Community Development District

Financial Report For September 2024

Keys Cove Community Development District
Budget vs. Actual
October 2023 through September 2024

Oct 23 - Sept 24	23/24 Budget	$ Over Budget	% of Budget
			
Income

363.100 ꞏ Admin Assessment Income	93,759.57		88,422.00		5,337.57		106.04%	
363.101 ꞏ Maint Assessment Income	375,001.05		375,000.00		1.05		100.0%	
363.810 ꞏ Debt Assessment	613,377.10		613,370.00		7.10		100.0%	
363.820 ꞏ Debt Assessment-Paid To Trustee	-587,720.05		-576,568.00		-11,152.05		101.93%	
363.830 ꞏ Assessment Fees	-10,458.67		-21,535.00		11,076.33		48.57%	
363.831 ꞏ Assessment Discounts	-34,622.52		-43,072.00		8,449.48		80.38%	
369.401 ꞏ Interest Income	52,495.48		480.00		52,015.48		10,936.56%	
Total Income	501,831.96		436,097.00		65,734.96		115.07%	
Gross Profit	501,831.96		436,097.00		65,734.96		115.07%	
Expense								
511.122 ꞏ Payroll Expense	137.70		480.00		-342.30		28.69%	
511.131 ꞏ Supervisor Fees	1,800.00		6,000.00		-4,200.00		30.0%	
511.301 ꞏ Maintenance/Contingency	0.00		55,000.00		-55,000.00		0.0%	
511.302 ꞏ Storm Drainage Maintenance	3,348.00		30,000.00		-26,652.00		11.16%	
511.303 ꞏ Roadway Resurfacing Project	0.00		60,000.00		-60,000.00		0.0%	
511.304 ꞏ Maintenance Reserve	0.00		25,000.00		-25,000.00		0.0%	
511.307 ꞏ Fountain Maintenance	11,505.00		18,000.00		-6,495.00		63.92%	
511.308 ꞏ Holiday Lighting	0.00		2,500.00		-2,500.00		0.0%	
511.310 ꞏ Engineering	6,901.21		12,000.00		-5,098.79		57.51%	
511.311 ꞏ Management Fees	34,032.00		34,032.00		0.00		100.0%	
511.315 ꞏ Legal Fees	8,422.50		12,000.00		-3,577.50		70.19%	
511.318 ꞏ Assessment/Tax Roll	7,500.00		7,500.00		0.00		100.0%	
511.320 ꞏ Audit Fees	3,800.00		3,800.00		0.00		100.0%	
511.330 ꞏ Arbitrage Rebate Fee	650.00		650.00		0.00		100.0%	
511.450 ꞏ Insurance	8,147.00		8,310.00		-163.00		98.04%	
511.480 ꞏ Legal Advertisements	2,569.77		750.00		1,819.77		342.64%	
511.512 ꞏ Miscellaneous	2,521.56		2,000.00		521.56		126.08%	
511.515 ꞏ Reimbursables	370.68		1,050.00		-679.32		35.3%	
511.540 ꞏ Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
511.733 ꞏ Trustee Fees	4,246.25		4,500.00		-253.75		94.36%	
511.734 ꞏ Continuing Disclosure Fee	350.00		350.00		0.00		100.0%	
511.737 ꞏ North Lake Restoration Project	161,335.00		150,000.00		11,335.00		107.56%	
511.738 ꞏ South Lake Restoration Project	336,004.55		0.00		336,004.55		100.0%	
511.750 ꞏ Website Management	1,999.92		2,000.00		-0.08		100.0%	
Total Expense	595,816.14		436,097.00		159,719.14		136.63%	
Net Income	-93,984.18		0.00		-93,984.18		100.0%	

KEYS COVE COMMUNITY DEVELOPMENT DISTRICT MONTHLY FINANCIAL REPORT
SEPTEMBER 2024

REVENUES	
Annual Budget
10/1/23 - 9/30/24	

Actual Sep-24	Year To Date Actual
10/1/23 - 9/30/24	
ADMINISTRATIVE ASSESSMENTS	88,422	0	93,760	
MAINTENANCE ASSESSMENTS	375,000	0	375,001	
DEBT ASSESSMENTS	613,370	0	613,377	
OTHER REVENUES	0	0	0	
INTEREST INCOME	480	0	52,496	
Total Revenues	$	1,077,272	$	-	$	1,134,634	
				
EXPENDITURES				
MAINTENANCE EXPENDITURES				
MAINTENANCE CONTINGENCY	55,000	0	0	
STORM DRAINAGE MAINTENANCE	30,000	0	3,348	
ROADWAY RESURFACING PROJECT	60,000	0	0	
MAINTENANCE RESERVE	25,000	0	0	
FOUNTAIN MAINTENANCE	18,000	885	11,505	
HOLIDAY CONTRIBUTION	2,500	0	0	
ENGINEERING/INSPECTIONS	12,000	0	6,902	
NORTH LAKE RESTORATION PROJECT	150,000	0	161,335	
SOUTH LAKE RESTORATION PROJECT	0	46,927	336,004	
TOTAL MAINTENANCE EXPENDITURES	$	352,500	$	47,812	$	519,094	
				
ADMINISTRATIVE EXPENDITURES				
SUPERVISOR FEES	6,000	0	1,800	
EMPLOYER TAXES	480	0	138	
MANAGEMENT	34,032	2,836	34,032	
REIMBURSABLES (POSTAGE/OFFICE SUPPLIES)	1,050	10	371	
LEGAL	12,000	0	8,423	
ASSESSMENT ROLL	7,500	7,500	7,500	
AUDIT FEES	3,800	0	3,800	
ARBITRAGE REBATE FEE	650	0	650	
INSURANCE	8,310	0	8,147	
LEGAL ADVERTISING	750	0	2,569	
MISCELLANEOUS	2,000	0	2,521	
DUES & SUBSCRIPTIONS	175	0	175	
TRUSTEE FEES	4,500	0	4,246	
WEBSITE MANAGEMENT	2,000	167	2,000	
CONTINUING DISCLOSURE FEE	350	350	350	
TOTAL ADMINISTRATIVE EXPENDITURES	$	83,597	$	10,863	$	76,722	
				
Total Expenditures	$	436,097	$	58,675	$	595,816	
				
REVENUES LESS EXPENDITURES	$	641,175	$	(58,675)	$	538,818	
				
BOND PAYMENTS	(576,568)	0	(587,720)	
				
BALANCE	$	64,607	$	(58,675)	$	(48,902)	
				
COUNTY APPRAISER & TAX COLLECTOR FEE	(21,535)	0	(10,459)	
DISCOUNTS FOR EARLY PAYMENTS	(43,072)	0	(34,623)	
				
EXCESS/ (SHORTFALL)	$	-	$	(58,675)	$	(93,984)	
				
CARRYOVER FROM PRIOR YEAR	0	0	0	
				
NET EXCESS/ (SHORTFALL)	$	-	$	(58,675)	$	(93,984)	

Note: Reserves To Be Adjusted On 10/1/24

Bank Balance As Of 9/30/24	$	1,602,416.76	
Accounts Payable As Of 9/30/24	$	59,562.20	
Accounts Receivable As Of 9/30/24	$	-	
Maintenance Reserve As Of 9/30/24	$	150,000.00	
Reserve For Storm Drainage Maintenance As Of 9/30/24	$	114,015.00	
Reserve For Roadway Resurfacing Project As Of 9/30/24	$	175,530.00	
Reserve For Improvements (Restoration Project) As Of 9/30/24	$	671,173.00	
Available Funds As Of 9/30/24	$	432,136.56	

KEYS COVE CDD TAX COLLECTIONS 2023-2024

#	

ID#	

PAYMENT FROM	

DATE	

FOR	

Tax Collect Receipts	

Interest Received	

Commissions Paid	

Discount	

Net From Tax Collector	Admin Assessment Income (Before Discounts & Fees)	Maint Assessment Income (Before Discounts & Fees)	Debt Assessment Income (Before Discounts & Fees)	Admin Assessment Income (After Discounts & Fees)	Maint Assessment Income (After Discounts & Fees)	Debt Assessment Income (After Discounts & Fees)	

Debt Assessment Paid to Trustee	
									$	1,076,792	$	88,422	$	375,000	$	613,370	$	88,422	$	375,000	$	613,370		
									$	1,012,665	$	83,597	$	352,500	$	576,568	$	83,597	$	352,500	$	576,568	$	576,568	
1	1	Miami-Dade Tax Collector	12/11/23	NAV Taxes	$	188,367.86		$  (1,808.24)	$  (7,544.63)	$	179,014.99	$	15,464.96	$	65,608.55	$  107,294.35	$ 14,697.04	$	62,350.95	$ 101,967.00	$  101,967.00	
2	2	Miami-Dade Tax Collector	12/11/23	NAV Taxes	$	168,045.12		$  (1,613.24)	$  (6,721.44)	$	159,710.44	$	13,800.08	$	58,523.04	$	95,722.00	$ 13,115.69	$	55,620.15	$  90,974.60	$	90,974.60	
3	3	Miami-Dade Tax Collector	01/08/24	NAV Taxes	$	392,681.54		$  (3,769.82)	$ (15,698.13)	$	373,213.59	$	32,239.09	$	136,771.00	$  223,671.45	$ 30,640.74	$  129,990.30	$ 212,582.55	$  212,582.55	
4	4	Miami-Dade Tax Collector	01/24/24	NAV Taxes	$	43,116.84		$	(415.81)	$  (1,536.73)	$	41,164.30	$	3,540.81	$	15,015.78	$	24,560.25	$  3,380.40	$	14,335.75	$  23,448.15	$	23,448.15	
5	5	Miami-Dade Tax Collector	02/07/24	NAV Taxes	$	67,900.37		$	(659.04)	$  (1,996.18)	$	65,245.15	$	5,574.62	$	23,649.70	$	38,676.05	$  5,356.55	$	22,724.90	$  37,163.70	$	37,163.70	
6	6	Miami-Dade Tax Collector	02/15/24	NAV Taxes	$	29,850.12		$	(292.31)	$	(619.10)	$	28,938.71	$	2,451.33	$	10,395.54	$	17,003.25	$  2,376.41	$	10,078.15	$  16,484.15	$	16,484.15	
7	Int -1	Miami-Dade Tax Collector	03/08/24	Interest		$	907.04			$	907.04	$	907.04			$	907.04			$	-	
8	7	Miami-Dade Tax Collector	04/08/24	NAV Taxes	$	40,905.72		$	(404.19)	$	(486.48)	$	40,015.05	$	3,359.23	$	14,245.74	$	23,300.75	$  3,286.05	$	13,935.55	$  22,793.45	$	22,793.45	
9	Int - 2	Miami-Dade Tax Collector	04/08/24	Interest		$	63.76			$	63.76	$	63.76			$	63.76			$	-	
10	8	Miami-Dade Tax Collector	04/22/24	NAV Taxes	$	47,990.04		$	(479.70)	$	(19.83)	$	47,490.51	$	3,939.94	$	16,714.95	$	27,335.15	$  3,898.86	$	16,541.00	$  27,050.65	$	27,050.65	
11	Int - 3	Miami-Dade Tax Collector	04/12/24	Interest		$	300.32			$	300.32	$	300.32			$	300.32			$	-	
12	9	Miami-Dade Tax Collector	05/12/24	NAV Taxes/Interest	$	23,216.76	$	907.75	$	(237.48)		$	23,887.03	$	2,813.81	$	8,086.40	$	13,224.30	$  2,789.38	$	8,005.55	$  13,092.10	$	13,092.10	
13	10	Miami-Dade Tax Collector	06/12/24	NAV Taxes/Interest (TC)	$	60,076.36	$  2,703.43	$	(627.80)		$	62,151.99	$	7,635.69	$	20,924.60	$	34,219.50	$  7,559.24	$	20,715.40	$  33,877.35	$	33,877.35	
14	11	Miami-Dade Tax Collector	07/12/24	NAV Taxes/Interest	$	14,664.71	$	439.98	$	(151.04)		$	14,953.65	$	1,668.89	$	5,065.75	$	8,370.05	$  1,652.20	$	5,015.10	$	8,286.35	$	8,286.35	
15									$	-							$	-	
16									$	-							$	-	
					$ 1,076,815.44	$ 5,322.28	$ (10,458.67)	$ (34,622.52)	$ 1,037,056.53	$  93,759.57	$  375,001.05	$ 613,377.10	$ 90,023.68	$ 359,312.80	$ 587,720.05	$ 587,720.05	

Roll:  613,376.50

Total Assessment Roll = 1,076,815.44	Note: $1,076,792, $88,422, $375,000 and $613,370 are 2023/2024 Budgeted assessments before discounts and fees.
Debt Assessments	Note: $1,012,665, $83,597, $352,500 and $576,568 are 2023/2024 Budgeted
On Roll = 613,376.50	assessments after discounts and fees.

$  1,076,815.44		
$	5,322.28	$ 1,037,056.53	
$	(93,759.57)	$	(90,023.68)	
$	(375,001.05)	$  (359,312.80)	
$	(613,377.10)	$  (587,720.05)	
$	-	$	-

FL Certificate of Authorization No. 7538 8935 NW 35 Lane, Suite 101
Doral, FL 33172
Tel. (305) 640-1345 Fax (305) 640-1346
E-Mail: Juan.Alvarez@AlvarezEng.com

June 14, 2024

Ms. Gloria Perez District Manager
Keys Cove Community Development District Special District Services, Inc.
The Oaks Center 2501A Burns Road
Palm Beach Gardens, FL 33410

Re: Year 2024 Keys Cove Community Development District Report

Dear Ms. Perez:

The intent of this report is fourfold: 1) To inform as to the status of ownership of the infrastructure that was financed or constructed by the District; 2) To describe the state, working order and condition of the infrastructure still owned by the District; 3) To give recommendations as to the funds estimated necessary for the proper maintenance, repair and operation of the District’s infrastructure and; 4) To report on the insurance being carried by the District.

The District is in Section 29, Township 57 South, Range 39 East, in the City of Homestead, Miami-Dade County, Florida. It is bounded by SW 344 Street, SW 163 Avenue, SW 346 Lane, SW 162 Avenue, SW 350 Terrace and Valencia Gardens Drive (SE 13 Avenue). The development is located within Zip Code 33035. Refer to Exhibit 1.

Infrastructure Ownership

 Roads
Shoma Homes at Keys Gate, Inc. granted an easement to Keys Cove Community Development District (the “District”, or “CDD”) for the District to construct, own and maintain roadways, which include the onsite stormwater drainage system, the public parking, sidewalks, curbs, planters and landscaping, all located within the granted easement area (the “Roadway Easement”). The Roadway Easement was recorded at ORB 23148, PG 4183 of the public records of Miami-Dade County. The extent of the easement area is depicted in Exhibit 1.

Stormwater Management System
Shoma Homes at Keys Gate, Inc. granted an easement to the District for the District to construct, own and maintain two lakes and related stormwater management facilities (the “Lakes Easement”). The Lakes Easement was recorded at ORB 23148, PG 4170 of the public records of Miami-Dade County. The location of the easement area is depicted in Exhibit 1.
Water Distribution System
The system has been conveyed to the City of Homestead for ownership and maintenance.

Keys Cove CDD 2024 Report

Sanitary Sewer System
The system has been conveyed to the City of Homestead for ownership and maintenance.
Security System
Starting in May of 2017, the District installed and completed a security system within the District boundaries. The system consisted of cameras, network recorders, antennas, cables, conduits, computer hardware, software, support and appurtenant equipment. The security system is described in more detail in the agreement between the District and Regions Security Services, Inc. dated May 5, 2017. Most of the security system is located within the Roadway Easement, with portions located in adjacent land belonging to the Association. The District entered into a “Revocable License Agreement” with the Association on September 20, 2017 for installing those portions.

Lake Fountains
The District installed, and owns, two lake fountains. They are described in more detail in the installation agreement between the District and DeAngelo Brothers, LLC dated June 29, 2015.

State, Working Order and Condition of the Infrastructure Currently Owned by the District
Alvarez Engineers, Inc. conducted a field inspection to determine the current state, working order and condition of the infrastructure owned by the District and reports the following regarding the CDD Roads and drainage system:

Roads
The roads inside the District are in fair to poor conditions. Pavement of CDD Roads are damaged from wear and ponding due to poor grading and surface drainage. Pavement will need to be repaired at several locations including near inlets, intersections, entrance, and along the roads. Repairs may include overbuild to correct the grading. The public parking spaces, sidewalks, curbs, planters and landscaping within the CDD roadway easements are in good working order and condition.

Stormwater Management System
The water portions of the lakes are well maintained and in good working order and condition.

The shoreline erosion project for the North Lake has been completed and construction has commenced for the South Lake with an expected completion date of October 2024.

Water and Sewer Systems
The water and sewer systems are in good working order and condition, the District Engineer is not aware of complaints. Issues may be reported to the City of Homestead at telephone number: 305-224-4770.

Security System

Keys Cove CDD 2024 Report

The security system appears to be working well. The District Engineer has not received complaints and is not aware of any issues.
Lake Fountains
The lake fountains are functioning well. The fountain in the South Lake has been turned off due to ongoing shoreline construction and will be reactivated upon the completion of the South Lake. The District Engineer has not received any complaints and is unaware of any issues.

Estimated Maintenance Costs for District-Owned Infrastructure

On September 20, 2017, the District entered into a maintenance agreement with the Association (the “2017 Maintenance Agreement”) under which the Association agrees to maintain the CDD roads, stormwater management system, security system and lake fountains, as well as, funding the electrical power consumption of the security system and lake fountains. On August 26, 2020 the CDD Board of Supervisors approved the first amendment to the 2017 Maintenance Agreement (the “2020 Amended Maintenance Agreement”) by which maintenance of the storm pipes and exfiltration systems were removed from Association’s responsibility, and the extent of the roadways maintenance responsibility was further clarified. Refer to the agreement in District’s records for complete details.

District Budget
The proposed CDD 2024-2025 Fiscal Year budget has the following amounts for maintenance expenditures:

2024-2025 Proposed Budget for Maintenance	
Maintenance Contingency	$52,500	
Storm Drainge Maintenance	$35,000	
Roadway Resurfacing Project	$85,000	
Maintenance Reserve	$25,000	
Fountain Maintenance/Reserve	$25,000	
Holiday Lighting Contribution	$2,500	
Engineering/Inspections	$12,000	
Lake Bank Erosion Project	$0	
Total	$237,000	

For more detailed information regarding the proposed 2024-2025 Fiscal Year Budget please visit the District’s website at the following link:
http://keyscovecdd.org/financials/
Alvarez Engineers finds the District’s proposed maintenance budget for Fiscal Year 2024- 2025 adequate, and recommends considering the following suggestions for future budgets:

Keys Cove CDD 2024 Report

Estimated Future Expenditures for District Roads
It is proposed to create a fund for the future milling and resurfacing of the roadway asphalt layer in approximately 10 years, when the asphalt reached its estimated 30-year service life. However, based on this year’s inspection of the roads, it is recommended to make repairs at the inlets, entrance, and other places as mentioned in Section 2 above. In addition, funds will be needed to update signs and markings on the roadways when the asphalt is replaced and subsequently every 10 years. The District Board of Supervisors may decide whether to continue with the sinking fund to finance the future capital expense over the next 10 years or to pay the lump sum amount at the end of the asphalt service life. The tables below provide the estimated future replacement costs and the estimated annual contributions over the remaining service life to fund the expenses. The calculations below assume an annual interest rate of 0.25%.

Pavement Service Life
(30 Years Estimated)	

Present Year	
Remaining Service Life (Yrs)	
Present Year Cost (PC) of Pavement Replacement (Mill unit price $2 and Resurface 3/4" Thick unit price $6)	Future Replacement Cost @ End of Service Life*	
Annual Interest Rate	
Annuity to Finance (FC) in
(n) Years given (i)	
From	To		(n)	Quantity
(SY)	Unit Cost
($/SY)	(PC)	(FC)	(i)	FCi/((1+i)^n-1)	
2004	2034	2024	10	50,990	$8.00	$407,920	$560,074	0.25%	$55,380	
* Using Florida Department of Transportation Inflation Factors					

Signs & Marking Service Life (10 Years Estimated)	

Present Year	
Remaining Service Life (Yrs)	

Present Year Cost (PC) of Signs & Marking	Future Replacement Cost @ End of Service Life*	
Annual Interest Rate	
Annuity to Finance (FC) in
(n) Years given (i)	
From	To		(n)	Quantity
(SY)	Unit Cost
($/SY)	(PC)	(FC)	(i)	FCi/((1+i)^n-1)	
2022	2034	2024	10	50,990	$1.00	$50,990	$70,009	0.25%	$6,923	
* Using Florida Department of Transportation Inflation Factors					

Stormwater Drainage System
The following is a suggested 5-year cyclical program for servicing the inlets, manholes, pipes and French drains of the drainage system. The program consists of servicing 20% of the system every year so that at the end of the fifth year, 100% of the system will have been serviced. The table below shows the estimated amount that would need to be budgeted yearly to service the 118 drainage structures and 10,555 Linear Feet of pipes in the District. The program may be financed yearly or in one lump sum when needed, at the discretion of the Board of Supervisors.

Keys Cove CDD 2024 Report

Total No. Structures in CDD	
Total LF Pipes	No. Structures with Pipes Serviced per Year	Cost/EA Structure (Includes Cleaning, and Baffle
Replacement)	Cost/LF Pipe (Includes Cleaning, Video, Dewatering,
and Root Removal)	Total Budget Amount Per Year	
		Year 1	Year 2	Year 3	Year 4	Year 5				
118	10555	24					$225.00	$6.70	$19,600	
			24				$230.00	$6.90	$20,100	
				24			$235.00	$7.40	$21,300	
					24		$240.00	$8.10	$22,900	
						24	$245.00	$9.20	$25,400	

Water and Sewer Systems
The water and sewer systems are maintained, operated and funded by the City of Homestead, which may be contacted at telephone number: 305-224-4770.
Insurance

Alvarez Engineers has reviewed the District’s general liability, property, inland marine, hired non-owned auto, employment practices liability, public officials’ liability and deadly weapon protection coverage insurance policy proposed by Florida Insurance Alliance under Agreement No. 100123043 for the period between October 1, 2023 and October 1, 2024. The District has budgeted enough funds to cover the $8,147 proposed insurance premium.

This report was prepared to the best of my knowledge and belief and is based on field observations conducted by Alvarez Engineers personnel, the District Engineer’s Report and public documents available.
If you have any questions, please do not hesitate to contact me at 305-640-1345 or at Juan.Alvarez@Alvarezeng.com.

Sincerely,
Alvarez Engineers, Inc.

Juan R Alvarez

Digitally signed by Juan R Alvarez
Date: 2024.06.14 17:55:22
-04'00'
Juan R. Alvarez, PE District Engineer Date: June 14, 2024

This item has been digitally signed and sealed by Juan R. Alvarez, PE on June 14, 2024.

Printed copies of this document are not considered signed and sealed and the signature must be verified on any electronic copies.

PORTION OF TRACT A (PB 163, PG 15) FOLIO: 10-7929-012-0010
OWNER: SHOMA HOMES AT KEYS GATE INC ESMT: COD; ORB 23148, PG 4170 CATEGORY: LAKE AND FOUNTAINS.

PORTION OF TRACT A (PB 163, PG 15) FOLIO: 10-7929-012-0010
OWNER: SHOMA HOMES AT KEYS GATE INC ESMT: CDD; ORB 23148, PG 4183

l

CATEGORY: ROADWAYS, PUBLIC PARKING, SIDEWALKS,
CURBS, PLANTERS, LANDSCAPING, SECURITY SYSTEM ALL INSIDE THE CDD EASEMENT.

.
''''

COD BOUNDARY

I

·-.----------------------------------------------- -------
:7

►
IcIc:

,-'

Cl
z
:,
0
ID
Cl Cul

._   _

cc
Czl
:,
0
ID
Cl Cul

PORTION OF TRACT A (PB 163, PG 15) FOLIO: 10-7929-012-0010
OWNER: SHOMA HOMES AT KEYS GATE INC ESMT: CDD; ORB 23148, PG 4170
CATEGORY: LAKE AND FOUNTAINS.	]·"
COD BOUNDARY

I

LEGEND:
ESMT: EASEMENT
ORB: OFFICIAL RECORD BOOK PB: PLAT BOOK
PG: PAGE

ALVAREZ ENGINEERS, INC.
KEYS COVE CDD
CDD LAND OWNERSHIP AND EASEMENTS
EXHIBIT 1

0-50' 150'

350'

5117/2024 \\Aes-dc-12\dataS\Alvarez Dala\PR0JECTS\040.J0J - Keys Co..,e CDD\Year/y report\2024 Report\001-CADD\EXHIBIT-02.dgn

Page 49

MEMORANDUM
TO:	District Manager

FROM:	Billing, Cochran, Lyles, Mauro & Ramsey, P.A. District Counsel

DATE:	July 12, 2024

RE:	2024 Legislative Update

As District Counsel, throughout the year we continuously monitor pending legislation that may be applicable to the governance and operation of our Community Development District and other Special District clients. It is at this time of year that we summarize those legislative acts that have become law during the most recent legislative session, as follows:

Chapter 2024 – 136, Laws of Florida (HB 7013). The legislation establishes a 12- year term limit for members of popularly elected bodies governing independent special districts, excluding terms starting before November 5, 2024, and excluding certain districts. Supervisors of Community Development Districts (CDDs) do not have term limits. The act provides that the boundaries of independent special districts may only be changed by general law or special act. The law revises criteria for declaring special districts inactive, to include those with no revenue, expenditures, or debt for five consecutive fiscal years, and extends the objection period for proposed inactive status declarations from 21 to 30 days. The law stipulates that a special district deemed inactive can only use funds to service outstanding debt and fulfill existing bond covenants and contractual obligations. Additionally, the law repeals section 163.3756, F.S., to align the regulations for Community Redevelopment Agencies (CRAs) with those applicable to other special districts. The bill repeals sections 165.0615 and 190.047, F.S., which allow independent special districts and CDDs, respectively, to convert to a municipality without legislative approval.

Performance Measures and Standards

The legislation also mandates special districts to establish goals, objectives, performance measures, and standards for each program and activity they undertake by October 1, 2024, or the end of their first full fiscal year, and to report annually on their achievements and performance. Furthermore, by December 1 of each subsequent year, each district must produce an annual report detailing the goals and objectives it has accomplished, the performance measures and standards used for evaluation, and any goals or objectives that were not met. The annual report must be published on the District’s website.

For independent special fire control districts, the bill requires reporting on volunteer firefighter training by October 1 annually.

The legislation reduces the maximum ad valorem millage rate for mosquito control districts from 10 mills to one mill, allowing an increase to two mills via referendum, and requires submission of work plans and budgets to receive state funds. Lastly, the law prohibits the creation of new Neighborhood Improvement Districts (NIDs) after July 1, 2024, and mandates a performance review of existing NIDs by September 30, 2025.

The effective date of this act is July 1, 2024.

Chapter 2024 – 80, Laws of Florida (HB 433). The legislation prohibits political subdivisions from establishing, mandating, or requiring employers, including those contracting with political subdivisions, to meet heat exposure requirements not mandated by state or federal law. The law clarifies that it does not limit the authority of political subdivisions to establish heat exposure requirements1 for their direct employees. Effective September 30, 2026, the law amends Florida’s wage and employment benefits law, prohibiting political subdivisions from controlling or affecting wages or employment benefits provided by vendors, contractors, service providers, or other parties through purchasing or contracting procedures. In addition the law prohibits using wages or employment benefits as evaluation factors or awarding preferences based on them. The law removes the ability of local governments to require a minimum wage for certain employees under contract terms and states that these revisions do not impair contracts entered into before September 30, 2026. Lastly, this act prohibits local governments from adopting or enforcing regulations on employee scheduling, including predictive scheduling, by private employers except as expressly authorized or required by state or federal law, rule, regulation, or federal grant requirements. Except as otherwise provided, the effective date of this act is July 1, 2024.

Chapter 2024 – 204, Laws of Florida (HB 149). The legislation raises the maximum limit for continuing contracts under the Consultants' Competitive Negotiation Act (CCNA) from an estimated per-project construction cost of $4 million to $7.5 million, with an annual adjustment based on the Consumer Price Index (CPI). Starting July 1, 2025, and annually thereafter, the Department of Management Services (DMS) is mandated to adjust the maximum allowable amount for each project in a continuing contract according to the change in the June-to-June CPI for All Urban Consumers, as issued by the Bureau of Labor Statistics. DMS is required to publish the adjusted amount on its website. The effective date of this act is July 1, 2024.

Chapter 2024 – 202, Laws of Florida (HB 59). The legislation amends section 720.303, F.S., requiring Homeowner Associations (HOAs) to provide a physical or digital copy of the HOA’s rules and covenants to all members by October 1, 2024. This requirement extends to all new members upon joining and includes providing updated copies whenever amendments to the rules or covenants occur. HOAs are authorized to set standards for the distribution method and timing for these documents. The law also stipulates that HOAs maintain certain official records, such as the HOA’s declaration of covenants and any amendments, within the state for at least seven years. These records must be accessible to parcel owners for inspection or copying, either physically or electronically. The effective date of this act is July 1, 2024

1 A standard to control an employee’s exposure to heat or sun and mitigate its effects. This includes employee monitoring, water consumption, cooling measures, acclimation periods, informational notices, heat exposure programs, first-aid measures, protections for reporting heat exposure, and related reporting and recordkeeping.

Chapter 2024 – 221, Laws of Florida (HB 1203). The legislation establishes educational requirements for community association managers (CAMs) and HOA directors. By January 1, 2025, HOAs with 100 or more parcels must post certain official records on their website or application. It allows parcel owners to request a detailed accounting of any amounts owed to the HOA, and if not provided, the board forfeits any outstanding fine under specific conditions. The bill prohibits HOAs and their committees from imposing requirements on the interior of structures not visible from the frontage, adjacent property, common areas, or golf courses. The law also forbids the need for HOA or committee approval for central air-conditioning, heating, or ventilating systems if not visible from the frontage, adjacent property, common area, or golf course, and if they are similar to approved systems. Criminal penalties are introduced for HOA officers, directors, or managers accepting kickbacks. Additionally, HOAs cannot prevent homeowners from installing vegetable gardens and clotheslines in non-visible areas, and certain HOA election voting activities are classified as a first-degree misdemeanor. The effective date of this act is July 1, 2024.

Chapter 2024 – 44, Laws of Florida (HB 621). The legislation establishes section 82.036, F.S., creating a process for removing unauthorized persons (squatters) from residential property. Property owners or their authorized agents can file a verified complaint with the county sheriff, who, upon verifying the complainant's identity and ownership, must serve notice to the occupants to vacate immediately. The law grants immunity to the sheriff and property owner for any property loss or damage unless the removal is wrongful. It also establishes a civil cause of action for wrongful removal, allowing the wrongfully removed party to seek damages, court costs, and attorney fees. The effective date of this act is July 1, 2024.

Chapter 2024 – 147, Laws of Florida (SB 7020). The legislation amends section 1.01, F.S., the statute defining “registered mail,” to broaden the range of acceptable delivery services for meeting statutory registered mail requirements in the state. The new definition of "registered mail" now explicitly includes any delivery service by the U.S. Postal Service or a private delivery service that provides proof of mailing or shipping and proof of delivery, confirmed by a receipt signed by the addressee or a responsible person at the delivery address. Additionally, "return receipt requested" is defined to encompass delivery confirmation services by the U.S. Postal Service or private delivery services that offer similar proof of delivery. These amendments are remedial in nature and apply retroactively. The effective date of this act is May 6, 2024.

Chapter 2024 – 263, Laws of Florida (HB 321). This legislation specifies that any individual who intentionally releases, organizes the release of, or causes the release of balloons inflated with lighter-than-air gas commits an act of littering and is subject to corresponding penalties2. However, children aged six or younger who engage in such activities are exempt from noncriminal littering infractions and associated penalties. The bill removes the exemption for balloons deemed biodegradable or photodegradable by Florida Fish and Wildlife Conservation rules. It also eliminates the provision allowing citizens to petition a circuit court to prevent the release of ten or more balloons. Additionally, the bill revises definitions in section 403.413, F.S., the Florida Litter Law, to include:

2 The penalty for littering generally corresponds to the amount of litter discarded. ≤ 15 pounds or ≤ 27 cubic feet = Noncriminal infraction, punishable by a civil penalty of $150. > 15 pounds but ≤ 500 pounds or > 27 cubic feet but ≤ 100 cubic feet = First-degree misdemeanor, punishable by up to one year in jail and a $1,000 fine. > 500 pounds or > 100 cubic feet = Third-degree felony, punishable by up to five years’ imprisonment and a $5,000 fine. It is the duty of all law enforcement officers to enforce Florida’s Litter Law.

“Dump,” specifying that it encompasses the intentional release, organization of the release, or causation of the release of balloons.
“Litter,” explicitly adding balloons to the definition.
The effective date of this act is July 1, 2024.

For convenience, we have included copies of the legislation referenced in this memorandum. We request that you include this memorandum as part of the agenda packages for upcoming meetings of the governing boards of those special districts in which you serve as the District Manager and this firm serves as District Counsel. For purposes of the agenda package, it is not necessary to include the attached legislation, as we can provide copies to anyone requesting the same. Copies of the referenced legislation are also accessible by visiting this link: http://laws.flrules.org/.

MEMORANDUM
TO:	District Manager

FROM:	Billing, Cochran, Lyles, Mauro & Ramsey, P.A. District Counsel

DATE:	August 9, 2024

RE:	2024 Legislative Update – Supplemental Information

As District Counsel, throughout the year we continuously monitor pending legislation that may be applicable to the governance and operation of our Community Development District and other Special District clients. Below is a summary of an additional law that was not included in the 2024 Legislative Update.

Chapter 2024 – 184, Laws of Florida (HB 7063). The legislation, among other things, amends section 787.06, F.S., to require nongovernmental entities, when a contract is executed, renewed, or extended, with a governmental entity, to provide an affidavit, signed by an officer or a representative of the nongovernmental entity under penalty of perjury, attesting that the nongovernmental entity does not use coercion for labor or services. Special districts, including community development districts, are defined as governmental entities under this statute. The effective date of this act is July 1, 2024.

For convenience, we have included a copy of the legislation referenced in this memorandum. In addition, attached is a form of the affidavit that nongovernmental entities will need to execute when entering, renewing, or extending a contract with a community development district or special district. We request that you include this supplemental memorandum as part of the agenda packages for upcoming meetings of the governing boards of those special districts in which you serve as the District Manager and this firm serves as District Counsel.

Enclosures (2)

AFFIDAVIT OF COMPLIANCE WITH ANTI-HUMAN TRAFFICKING LAWS
In compliance with Section 787.06 (13), Florida Statutes, this attestation must be completed by an officer or representative of a nongovernmental entity that is executing, renewing, or extending a contract with 	Community Development District (the “Governmental Entity”).

The undersigned, on behalf of the entity listed below (the “Nongovernmental Entity”), hereby attests under penalty of perjury as follows:

Neither the Nongovernmental Entity nor any of its subsidiaries or affiliates uses coercion for labor or services, as such italicized terms are defined in Section 787.06, Florida Statutes, as may be amended from time to time.
If, at any time in the future, the Nongovernmental Entity uses coercion for labor or services, it will immediately notify the Governmental Entity, and no contracts may be executed, renewed, or extended between the parties.
I understand that I am swearing or affirming under oath to the truthfulness of the claims made in this affidavit and that the punishment for knowingly making a false statement includes fines and/or imprisonment.
The Affiant is authorized to execute this Affidavit on behalf of the Nongovernmental Entity.

FURTHER AFFIANT SAYETH NAUGHT.

NONGOVERNMENTAL ENTITY:		 NAME: 	
TITLE: 			 SIGNATURE: 				 DATE: 	, 20	

STATE OF FLORIDA
COUNTY OF 	

SWORN TO (or affirmed) and subscribed before me by means of [	] physical presence or [		] online	notarization,	this			day	of				20	,	by
	 in his/her capacity as 	 for
	(name of Nongovernmental Entity).

NOTARY PUBLIC

	Personally Known	OR
	Produced Identification

Type of Identification Produced