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: Alvarez@AlvarezEng.com

June 26, 2025
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 2025 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 2.
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 2.

Water Distribution System
The system has been conveyed to the City of Homestead for ownership and maintenance.

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 has 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 is 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 projects for the North and South lakes have been completed.

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
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 seem to be functioning well. 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 the District’s records for complete details.

District Budget
We think that for Fiscal Year 2025-2026, the District proposed amounts for field operations are adequate to properly maintain, repair and operate the public infrastructure for which the District is currently responsible. (Refer to http://keyscovecdd.org/financials/ for the FY 2025-2026 Proposed Budget).

Roads
The FY 2025-2026 budget takes into consideration the recommendation of creating a sinking fund to finance the future capital expense of milling and resurfacing the pavement and pavement markings of the District roads at the end of their service life, which is estimated to be in 10 years for the pavement and 5 for the pavement markings.

The table below provides an estimate of the future replacement costs and the estimated minimum annual contributions over the remaining service life to fund the future expenses, taking into consideration that as of this year, the District has accumulated about $235,530 in reserves for such purpose, as reported by the District Manager to the District Engineer.

ESTIMATE OF COSTS FOR RESURFACING ROADS IN "n" YEARS	
Analysis and Annuity Recommendation		

Pavement Service Life (30 Years Estimated)	
Present Year	
Remaining Service Life (Yrs)	
Present Year Cost (PC) of Pavement Replacement (Mill and Resurface 3/4" Thick)	Future Replacement Cost @ End of Service Life* For 2.5%
Inflation Rate (r)	
Annual Interest Rate	Annuity to Finance (FC) in (n) Years given (i)	

From	
To		
(n)	
Quantity (SY)	Unit Cost ($/SY)	(PC) -
$235.53K
In
Reserves	
FC= (PC)(1+r/100)^n	
(i)	
FCi/((1+i)^n-1)	
PAVEMENTS	
2005	2035	2025	10	50,989	$10.00	$274,360	$351,204	0.25%	$34,727	
PAVEMENT MARKINGS AND SIGNING	
2020	2030	2025	5	50,989	$2.50	$127,473	$144,224	0.25%	$28,701	

Stormwater Management System
The FY 2025-2026 budget takes into consideration the suggested creation of a 5-year cyclical program for servicing the inlets, manholes, pipes, and French drains of the stormwater 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 be serviced. The tables below show the estimated amount that would need to be budgeted yearly to service the approximately 120 drainage structures and 10,555 Linear Feet of pipes in the District. It is also estimated that 3-4 baffles will need to be replaced yearly. The program may be financed yearly or in one lump sum when needed, or at any other period combination, at the discretion of the Board of Supervisors.

5-YEAR CYCLE ESTIMATE OF YEARLY COSTS FOR SERVICING THE STORMWATER DRAINAGE	

Total No. Structures in CDD	

Total LF Pipes	No. Structures with Pipes Serviced per Year	Avg. Cost/EA Structure. Assume 2.5%
Annual Inflation
Rate (1)	Avg. Cost/LF Pipe. Assume 2.5%
Inflation Rate (2)	

Total Budget Amount Per Year	

Year 1
(2025)	

Year 2
(2026)	

Year 3
(2027)	

Year 4
(2028)	

Year 5
(2029)				
120	10555	24					$230.00	$6.75	$19,800	
			24				$236.00	$6.92	$20,300	
				24			$242.00	$7.09	$20,800	
					24		$248.00	$7.27	$21,300	
						24	$254.00	$7.45	$21,900	
(1) Includes the cost of vacuuming the sump of the drainage structure and the cost of removing and reinstalling the baffle if the baffle is in good condition.

(2) Includes the cost of pressure spraying and videoing the pipes and of dewatering with plugs at the end of the pipes when the pipes are submerged.

5-YEAR CYCLE ESTIMATE OF YEARLY COSTS FOR BAFFLE REPLACEMENTS	
Estimated Number of Baffles to be Replaced
(1)	No. Structures with Pipes Serviced per Year	Estimated Cost Per Baffle For 2.5% Inflation Rate	Total Budget Amount
Per Year	
	Year 1
(FY 25-26)	Year 2
(FY 26-27)	Year 3
(FY 27-28)	Year 3
(FY 28-29)	Year 2
(FY 29-30)			
18	4					$600	$2,400	
		4				$615	$2,500	
			4			$630	$2,600	
				3		$646	$2,000	
					3	$662	$2,000	

(1) The estimate assumes that 25% of the 70 baffles in the District will need replacement in the next five years.

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. 100124043 for the period between October 1, 2024 and October 1, 2025. The District has budgeted enough funds to cover the $8,602 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 us at 305-640-1345 or at Alvarez@Alvarezeng.com.
Sincerely,
Alvarez Engineers, Inc.

Juan R Alvarez

Digitally signed by Juan R Alvarez
Date: 2025.06.26
08:17:06 -04'00'

This item has been digitally signed and sealed by Juan R. Alvarez, PE on June 26, 2025.

Juan R. Alvarez, PE District Engineer Date: June 26, 2025

cc.	Michael Pawelczyk, District Counsel, mjp@bclmr.com

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