HILLCREST COMMUNITY DEVELOPMENT
DISTRICT

BROWARD COUNTY REGULAR BOARD MEETING MARCH 21, 2019
2:00 P.M.

Special District Services, Inc.
The Oaks Center 2501A Burns Road
Palm Beach Gardens, FL 33410

www.hillcrestcdd.org 561.630.4922 Telephone 877.SDS.4922 Toll Free 561.630.4923 Facsimile

AGENDA HILLCREST
COMMUNITY DEVELOPMENT DISTRICT
Parkview at Hillcrest Clubhouse 4600 Hillcrest Drive
Hollywood, Florida 33021
REGULAR BOARD MEETING
March 21, 2019
2:00 P.M.

A. Call to Order
B. Proof of Publication……………………………………………………………………………...Page 1
Establish a Quorum
Consider Resignation of Matt Nelson – Effective December 31, 2018.........................................Page 2
Additions or Deletions to Agenda
Comments from the Public for Items Not on the Agenda
Approval of Minutes
1. October 18, 2018 Regular Board Meeting Minutes.................................................................Page 3
Old Business
New Business
Consider Resolution No. 2019-01 – Adopting a Fiscal Year 2019/2020 Proposed Budget...Page 6
Administrative Matters
Audit Committee Meeting
Waiver of Three (3) Audit Proposer Rule
Ranking of Auditor Proposal and Selection of Audit Firm...............................................Page 15
Discussion Regarding Board Vacancy
Board Members Comments
Adjourn

BROWARD DAILY BUSINESS REVIEW
Published Daily except Saturday, Sunday and Legal Holidays
Ft. Lauderdale, Broward County, Florida

STATE OF FLORIDA COUNTY OF BROWARD:

Before the undersigned authority personally  appeared BARBARA  JEAN  COOPER,   who  on  oath   says  that  he  or   she is  the  LEGAL  CLERK,  of  the  Broward  Daily  Business  Review f/k/a  Broward  Review,  a  daily  (except  Saturday,  Sunday  and Legal Holidays) newspaper, published at  Fort  Lauderdale,  in Broward  County,  Florida;  that  the  attached   copy   of advertisement, being  a  Legal  Advertisement  of  Notice  in  the matter of

HILLCREST COMMUNITY DEVELOPMENT DISTRICT - REVISED FISCAL YEAR 2018/2019 REGULAR MEETING SCHEDULE

in the XXXX Court,
was published in said newspaper in the issues of 01/07/2019
Affiant further says that the said Broward Daily Business
Review is a newspaper published at Fort  Lauderdale,  in  said Broward County, Florida and  that  the  said  newspaper  has heretofore   been   continuously   published   in   said   Broward County,   Florida   each   day   (except   Saturday,   Sunday    and Legal Holidays)  and  has  been  entered  as  second  class  mail matter at the post  office  in  Fort  Lauderdale  in  said  Broward County,  Florida,  for  a  period  of  one  year   next   preceding   the first  publication  of  the  attached  copy  of  advertisement;   and  affiant  further  says  that  he  or  she  has   neither   paid   nor promised   any   person,   firm   or   corporation   any   discount,  rebate, commission or refund for the purpose of securing this

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December 31, 2018

Jason Pierman
Special District Services, Inc. The Oaks Center
2501A Burns Road
Palm Beach Gardens, Florida 33410

SUBJECT: Resignation from COD Boards

Dear Jason,

As discussed previously, I am resigning from the following Community Development District Boards effective Monday, December 31, 2018:

Veranda Community Development District
Hillcrest Community Development District
Gulfstream Polo Community Development District
Please contact me if you need any additional information. Sincerely,
.1(11AJ--
Matt Nelson 561-602-3253

HILLCREST COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING
OCTOBER 18, 2018

CALL TO ORDER

District Manager Armando Silva called the October 18, 2018, Regular Board Meeting of the Hillcrest Community Development District (the “District”) to order at 2:01 p.m. in the Pulte Group Sales Center located at 4000 Large Leaf Lane, Hollywood, Florida 33021.

PROOF OF PUBLICATION

Proof of publication was presented which showed that notice of the Regular Board Meeting had been published in the Broward Daily Business Review on October 5, 2018, as legally required.

ESTABLISH A QUORUM

Mr. Silva determined that the attendance of Chairman Andrew Maxey, Vice Chairman David Kanarek and Supervisors Matthew Nelson and Brad Hartman constituted a quorum and it was in order to proceed with the meeting.

Also in attendance were: District Manager Armando Silva of Special District Services, Inc.; and General Counsel Jonathan Johnson (via telephone) of Hopping, Green & Sams, P.A.

Also present was: Millie Whitehead of Castle Group, Plantation, Florida.

ADDITIONS OR DELETIONS TO THE 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.

APPROVAL OF MINUTES
July 19, 2018, Regular Board Meeting & Public Hearing Minutes

Mr. Silva presented the minutes of the July 19, 2018, Regular Board Meeting & Public Hearing and asked if there were any corrections and/or revisions. There being none, a MOTION was made by Mr. Hartman, seconded by Mr. Kanarek and passed unanimously approving the minutes of the July 19, 2018, Regular Board Meeting & Public Hearing, as presented.

OLD BUSINESS

There were no Old Business items to come before the Board.

NEW BUSINESS

Consider Resolution No. 2018-07 – Adopting a Fiscal Year 2017/2018 Amended Budget

Mr. Silva presented Resolution No. 2018-07, entitled:

RESOLUTION NO. 2018-07

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HILLCREST	COMMUNITY	DEVELOPMENT	DISTRICT AUTHORIZING AND ADOPTING AN AMENDED FINAL FISCAL YEAR 2017/2018 BUDGET (“AMENDED BUDGET”), PURSUANT TO CHAPTER
189, FLORIDA STATUTES; AND PROVIDING AN EFFECTIVE DATE.

Mr. Silva read the title of the resolution into the record and provided an explanation for the document. He indicated that there was a fund balance of approximately $3,640 at the end of the fiscal year and reminded the Board that the District was currently developer funded. A discussion ensued after which:

A MOTION was made by Mr. Kanarek, seconded by Mr. Maxey and unanimously passed to adopt Resolution No. 2018-07, as presented, thereby setting the amended/revised budget for the 2017/2018 fiscal year.

Consider Real Property Contribution Agreement

Mr. Johnson provided an explanation for the document, highlighting that Pulte Homes Company (the “Developer”) would be contributing approximately 1.138 +/- acres of real property to the District in order to provide a reduction or corresponding credit to special assessments to be levied upon certain commercial uses as set forth in the Master Special Assessment Methodology Report Special Assessment Bonds, dated September 14, 2017. A discussion ensued after which;

A MOTION was made by Mr. Nelson, seconded by Mr. Hartman and unanimously passed authorizing the execution of the Real Property Contribution Agreement between Pulte Homes Company, LLC and the Hillcrest Community Development District; and further authorizing District Staff to execute any documents relating to the Real Property Contribution Agreement on behalf of the District.

ADMINISTRATIVE MATTERS
Consider Appointment of Audit Committee/Audit Committee Meeting
Selection of Criteria to Evaluate Audit Services
Announcement of Request for Proposals to Perform Annual Audits

Mr. Silva stated that an audit was required for the year ending September 30, 2018, and it would be in order for the Board to appoint an Audit Committee to commence the auditor selection process, pursuant to Chapter 218.391, Florida Statutes.

A MOTION was made by Mr. Kanarek, seconded by Mr. Hartman and unanimously passed appointing the entire Board of Supervisors and the District Manager as the District’s Audit Committee.

At approximately 2:07 p.m., Mr. Silva recessed the Regular Board Meeting and simultaneously called to order a meeting of the Audit Committee.

Mr. Silva presented the evaluation criteria information and an outline of material for the Request for Proposals. A discussion ensued after which:

A MOTION was made by Mr. Kanarek, seconded by Mr. Hartman and unanimously passed approving the evaluation criteria for audit services, as presented, instructing the District Manager to proceed, as required, to advertise for requests for proposals for the fiscal years September 30, 2018, 2019, and 2020; and to include in the proposal package a 2-year renewal option (FY 2021 & 2022).

At approximately 2:08 p.m., with there being no further business to conduct at this time, the Audit Committee meeting was adjourned the Regular Board Meeting was reconvened.

Mr. Silva stated that it would now be appropriate for the Board to accept the actions of the Audit Committee, as outlined hereinabove. A discussion ensued after which;

A MOTION was made by Mr. Hartman, seconded by Mr. Kanarek and unanimously passed to accept the recommendations of the Audit Committee, as outlined above.

BOARD MEMBER COMMENTS

There were no comments from the Members of the Board.

ADJOURNMENT

There being no further business to come before the Board, a MOTION was made by Mr. Maxey, seconded by Mr. Kanarek and unanimously passed to adjourn the Regular Board Meeting at 2:13 p.m.

Secretary/Assistant Secretary	Chairperson/Vice-Chairperson

RESOLUTION 2019-01

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HILLCREST COMMUNITY DEVELOPMENT DISTRICT APPROVING A PROPOSED BUDGET FOR FISCAL YEAR 2019/2020 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW; ADDRESSING TRANSMITTAL, POSTING AND PUBLICATION REQUIREMENTS; ADDRESSING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the District Manager has heretofore prepared and submitted to the Board of Supervisors (“Board”) of the Hillcrest Community Development District (“District”) prior to June 15, 2019, a proposed budget (“Proposed Budget”) for the fiscal year beginning October 1, 2019 and ending September 30, 2020 (“Fiscal Year 2019/2020”); and

WHEREAS, the Board has considered the Proposed Budget and desires to set the required public hearing thereon.

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

PROPOSED BUDGET APPROVED. The Proposed Budget prepared by the District Manager for Fiscal Year 2019/2020 attached hereto as Exhibit A is hereby approved as the basis for conducting a public hearing to adopt said Proposed Budget.

SETTING A PUBLIC HEARING. A public hearing on said approved Proposed Budget is hereby declared and set for the following date, hour and location:

DATE:	 	June 20, 2019	

HOUR:	 	2:00 p.m.	

LOCATION:	Hillcrest Clubhouse	     4600 Hillcrest Drive		 Hollywood, Florida 33021	

TRANSMITTAL OF PROPOSED BUDGET TO LOCAL GENERAL PURPOSE GOVERNMENT. The District Manager is hereby directed to submit a copy of the Proposed Budget to Broward County and the City of Hollywood, Florida at least 60 days prior to the hearing set above.

POSTING OF PROPOSED BUDGET. In accordance with Section 189.016, Florida Statutes, the District’s Secretary is further directed to post the approved Proposed Budget on the District’s website at least two days before the budget hearing date as set forth in Section 2, and shall remain on the website for at least 45 days.

PUBLICATION OF NOTICE. Notice of this public hearing shall be published in the manner prescribed in Florida law.

SEVERABILITY. The invalidity or unenforceability of any one or more provisions of this Resolution shall not affect the validity or enforceability of the remaining portions of this Resolution, or any part thereof.

EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED THIS 21st DAY OF March, 2019.

ATTEST:	HILLCREST COMMUNITY
DEVELOPMENT DISTRICT

By: 	
Secretary	Its: 	

EXHIBIT A PROPOSED BUDGET

Hillcrest
Community Development District

Proposed Budget For Fiscal Year 2019/2020
October 1, 2019 - September 30, 2020

CONTENTS

PROPOSED BUDGET

DETAILED PROPOSED BUDGET

DETAILED PROPOSED DEBT SERVICE FUND BUDGET IV	ASSESSMENT COMPARISON

PROPOSED BUDGET
HILLCREST COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2019/2020
OCTOBER 1, 2019 - SEPTEMBER 30, 2020

REVENUES	
FISCAL YEAR 2019/2020
BUDGET	
O&M Assessments	87,521	
Developer Contribution	0	
Debt Assessments	662,543	
Interest Income	0	
		
TOTAL REVENUES	$	750,064	
		
EXPENDITURES		
Supervisor Fees	0	
Engineering/Inspections	2,500	
Management	34,320	
Legal	20,000	
Assessment Roll	5,000	
Audit Fees	3,500	
Arbitrage Rebate Fee	650	
Insurance	7,250	
Legal Advertisements	1,750	
Miscellaneous	1,300	
Postage	300	
Office Supplies	725	
Dues & Subscriptions	175	
Trustee Fees	3,800	
Continuing Disclosure Fee	1,000	
		
TOTAL EXPENDITURES	$	82,270	
		
REVENUES LESS EXPENDITURES	$	667,794	
		
Bond Payments	(622,790)	
		
BALANCE	$	45,004	
		
County Appraiser & Tax Collector Fee	(15,001)	
Discounts For Early Payments	(30,003)	
		
EXCESS/ (SHORTFALL)	$	-	

DETAILED PROPOSED BUDGET
HILLCREST COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2019/2020
OCTOBER 1, 2019 - SEPTEMBER 30, 2020

REVENUES	
FISCAL YEAR 2017/2018 ACTUAL	
FISCAL YEAR 2018/2019 BUDGET	
FISCAL YEAR 2019/2020 BUDGET	

COMMENTS	
O&M Assessments	0	87,615	87,521	Expenditures/.94	
Developer Contribution	83,991	0	0		
Debt Assessments	0	662,543	662,543	Bond Payments/.94	
Interest Income	5	0	0		
					
TOTAL REVENUES	$	83,996	$	750,158	$	750,064		
					
EXPENDITURES					
Supervisor Fees	0	0	0		
Engineering/Inspections	12,681	2,500	2,500	No Change From 2018/2019 Budget	
Management	33,000	33,684	34,320	CPI Adjustment	
Legal	7,933	20,000	20,000	Fiscal Year 2018/2019 Expenditure Thorough January 2019 Was $7,082	
Assessment Roll	5,000	5,000	5,000	As Per Contract	
Audit Fees	0	4,000	3,500	$500 Decrease From 2018/2019 Budget	
Arbitrage Rebate Fee	0	650	650	No Change From 2018/2019 Budget	
Insurance	6,719	7,500	7,250	Fiscal Year 2018/2019 Expenditure Was $6,655	
Legal Advertisements	3,346	2,000	1,750	Costs Were Higher In 2017/2018 Due To Bond Issue	
Miscellaneous	1,666	1,000	1,300	$300 Increase From 2018/2019 Budget	
Postage	375	300	300	No Change From 2018/2019 Budget	
Office Supplies	1,729	750	725	Costs Were Higher In 2017/2018 Due To Bond Issue	
Dues & Subscriptions	175	175	175	No Change From 2018/2019 Budget	
Trustee Fees	0	3,800	3,800	No Change From 2018/2019 Budget	
Continuing Disclosure Fee	1,000	1,000	1,000	No Change From 2018/2019 Budget	
					
TOTAL EXPENDITURES	$	73,624	$	82,359	$	82,270		
					
REVENUES LESS EXPENDITURES	$	10,372	$	667,799	$	667,794		
					
Bond Payments	0	(622,790)	(622,790)	2020 P & I Payments Less Earned Interest	
					
BALANCE	$	10,372	$	45,009	$	45,004		
					
County Appraiser & Tax Collector Fee	0	(15,003)	(15,001)	Two Percent Of Total Assessment Roll	
Discounts For Early Payments	0	(30,006)	(30,003)	Four Percent Of Total Assessment Roll	
					
EXCESS/ (SHORTFALL)	$	10,372	$	-	$	-		

DETAILED PROPOSED DEBT SERVICE FUND BUDGET
HILLCREST COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2019/2020
OCTOBER 1, 2019 - SEPTEMBER 30, 2020

REVENUES	

FISCAL YEAR

2017/2018

ACTUAL	

FISCAL YEAR

2018/2019

BUDGET	

FISCAL YEAR

2019/2020

BUDGET	

COMMENTS	

Interest Income	
937	
0	
50	
Projected Interest For 2019/2020	

Capitalized Interest	
139,293	
0	
0	

Capitalized Interest Set-Up Through Nov 2018	

NAV Tax Collection	
0	
622,790	
622,790	
Maximum Debt Service Collection	

Total Revenues	
$	140,230	
$	622,790	
$	622,840		

EXPENDITURES					

Principal Payments	
0	
170,000	
175,000	
Principal Payment Due In 2020	

Interest Payments	
139,293	
451,763	
445,600	
Interest Payments Due In 2020	

Bond Redemption	
0	
1,027	
2,240	
Estimated Excess Debt Collections	

Total Expenditures	
$	139,293	
$	622,790	
$	622,840		

Excess/ (Shortfall)	

$	937	

$	-	

$	-		

Series 2018 Bond Information

Original Par Amount =	$9,805,000	Annual Principal Payments Due =	November 1st	
Interest Rate = Issue Date = Maturity Date =	3.625% - 5.000%
January 2018
November 2048	Annual Interest Payments Due =	May 1st & November 1st	

Par Amount As Of 1/1/19 =	
$9,805,000			

HILLCREST COMMUNITY DEVELOPMENT DISTRICT ASSESSMENT COMPARISON

Original	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year
Projected	2016/2017	2017/2018	2018/2019	2019/2020
    Assessment* 	Assessment*	 	Assessment*	 	Assessment*	 Projected Assessment* 

O & M For Single Familys	$	-	$	-	$	-	$	135.85	$	135.70	
Debt For Single Familys	$	1,146.80	$	-	$	-	$	1,146.80	$	1,146.80	
Total For Single Family	$	1,146.80	$	-	$	-	$	1,282.65	$	1,282.50	

O & M For Townhomes	
$	-	$	-	$	-	$	135.85	
$	135.70	
Debt For Townhomes	$	938.29	$	-	$	-	$	938.29	$	938.29	
Total For Townhomes	$	938.29	$	-	$	-	$	1,074.14	$	1,073.99	

* Assessments Include the Following: 4% Discount for Early Payments
1% County Tax Collector Fee
1% County Property Appraiser Fee

Community Information:
Single Familys:	275 Units Townhomes:	370 Units
Total:	645 Units

HILLCREST COMMUNITY DEVELOPMENT DISTRICT RANKING OF AUDITOR PROPOSALS
FOR FISCAL YEAR ENDING 9/30/18

	Audit Firms	

Criteria	
Point Range	Carr Riggs & Ingram	Grau & Associates	

Ability of Personnel: (E.g., geographic locations of the firms headquarters of permanent office in relation to the project; capabilities and experience of key personnel; present ability to manage this project; evaluation of existing work load).	

1-10	

9	

9	

Proposer's Experience: (E.g. past record and experience of the Proposer in similar projects; volume of work previously performed by the firm; past performance for other Community Development Districts in other contracts; character, integrity, reputation).	

1-10	

8	

9	

Understanding of Scope of Work: Extent to which the proposal demonstrates an understanding of the District's needs for the services requested.	

1-10	

9	

9	

Ability to Furnish the Required Services:  Extent to which the proposal demonstrates the adequacy of Proposer's financial resources and stability as a business entity necessary to complete the services required.	

1-10	

8	

9	

Price: Points will be awarded based upon the price bid for the rendering of the services and reasonableness of the price to the services.	

1-10	

7	

9	

TOTAL POINTS	
50	
41	
45	
				
BID PRICE - 2017/2018 AUDIT		$4,000.00	$3,400.00	
BID PRICE - 2018/2019 AUDIT		$4,250.00	$3,500.00	
BID PRICE - 2019/2020 AUDIT		$4,500.00	$3,600.00	
BID PRICE - 2020/2021 AUDIT		$4,750.00	$3,700.00	
BID PRICE - 2021/2022 AUDIT		$5,000.00	$3,800.00	
	
COMMENTS:	Currently the auditing firm for	Currently the auditing firm for	
	more than 60 CDD's.	more than 200 CDD's.	

	
RECOMMENDATION:	Both firms have the capacity to perform the audit.	
	Management recommends that Grau & Associates, the low bidder and the firm with the most experience,	
	be selected to perform the September 30, 2018, 2019 and 2020 annual audits, with an option subject to fee	
	adjustments for inflation, to perform the fiscal year end audits for the two following years (FYE 9/30/21, FYE 9/30/22).	

Note: 2018/2019 Budget For Audit Services is $4,000.00