HILLCREST COMMUNITY DEVELOPMENT
DISTRICT

BROWARD COUNTY REGULAR BOARD MEETING OCTOBER 18, 2018
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
Pulte Homes Sales Center 4500 Hillcrest Drive
Hollywood, Florida 33021
REGULAR BOARD MEETING
October 18, 2018
2:00 P.M.

Call to Order
Proof of Publication…	Page 1
Establish a Quorum
Additions or Deletions to Agenda
Comments from the Public for Items Not on the Agenda
Approval of Minutes
July 19, 2018 Regular Board Meeting & Public Hearing Minutes.	Page 2
Old Business
New Business
Consider Resolution No. 2018-07 – Adopting a Fiscal Year 2017/2018 Amended Budget. Page 6
Consider Real Property Contribution Agreement (To Be Provided at the Meeting)
Administrative Matters
Consider Appointment of Audit Committee/Audit Committee Meeting	Page 11
Selection of Criteria to Evaluate Audit Services
Announcement of Request for Proposals to Perform Annual Audits
Board Members Comments
Adjourn

Broward Daily Business Review
Oct. 5, 2018
Miscellaneous Notices

HILLCREST COMMUNITY DEVELOPMENT DISTRICT REVISED FISCAL YEAR 2018/2019 REGULAR MEETING SCHEDULE
NOTICE IS HEREBY GIVEN that the Board of Supervisors of the Hillcrest Community Development District will hold Regular Meetings at 2:00 p.m. at the Pulte Homes Sales Center located at 4000 Large Leaf Lane, Hollywood, Florida 33021 on the following dates:
October 18, 2018
November 15, 2018
December 20, 2018
January 17, 2019
February 21, 2019
March 21, 2019
April 18, 2019
May 16, 2019
June 20, 2019
July 18, 2019
August 15, 2019
September 19, 2019
The purpose of the meetings is to conduct any business coming before the Board. 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.
There may be occasions when one or two Supervisors will participate by telephone; therefore, a speaker telephone will be present at the meeting location so that Supervisors may be fully informed of the discussions taking place. 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 insure 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. HILLCREST COMMUNITY DEVELOPMENT DISTRICT
www.whillcrestcdd.org 10/5 18-41/0000351146B

HILLCREST COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING & REGULAR BOARD MEETING JULY 19, 2018

CALL TO ORDER

The Regular Board Meeting of the Hillcrest Community Development District was called to order at 2:07 p.m. at 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 Broward Daily Business Review on December 11, 2017, as legally required.

ESTABLISH A QUORUM

Present and constituting a quorum were Supervisors Patrick Gonzalez, Brad Hartman and Matthew Nelson.

Also present were: District Managers Jason Pierman & Armando Silva of Special District Services, Inc.; and District Counsel Jonathan Johnson (via telephone) of Hopping, Green & Sams, P.A.

Also present were: Andrew Karmeris of Special District Services, Inc.; and District resident, Ariana Martinez.

Mr. Gonzalez made a motion, seconded by Mr. Hartman and passed unanimously appointing Matthew Nelson as the temporary Chair.

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.

APPROVAL OF MINUTES
April 19, 2018, Regular Board Meeting

Mr. Pierman presented the minutes of the April 19, 2018, Regular Board Meeting. A motion was made by Mr. Hartman, seconded by Mr. Gonzalez and passed unanimously approving the April 19, 2018, Regular Board Meeting minutes, as presented.

The Regular Board Meeting was then recessed and the Public Hearing was called to order.

PUBLIC HEARING
Proof of Publication

Proof of publication was presented which showed that notice of the Public Hearing had been published in Broward Daily Business Review on June 29, 2018, and July 5, 2018, as legally required.

Receive Public Comment on Fiscal Year 2018/2019 Final Budget

Ariana Martinez asked who benefited from the payment of taxes. It was explained to her that all of the homes in the Hillcrest Community Development District benefit. She then asked if this had anything to do with the back gate of the neighborhood. She was told that it did not.

Consider Resolution No. 2018-03 – Adopting a Fiscal Year Final Budget

Resolution No. 2018-03 was presented, entitled:

RESOLUTION 2018-03

THE ANNUAL APPROPRIATION RESOLUTION OF THE HILLCREST COMMUNITY DEVELOPMENT DISTRICT (“DISTRICT”) RELATING TO THE ANNUAL APPROPRIATIONS AND ADOPTING THE BUDGETS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2018, AND ENDING SEPTEMBER 30, 2019; AUTHORIZING BUDGET AMENDMENTS; AND PROVIDING AN EFFECTIVE DATE.

A motion was made by Mr. Gonzalez, seconded by Mr. Hartman and passed unanimously to adopt Resolution No. 2018-03, as presented.

Receive Public Comment on Fiscal Year 2018/2019 Annual Assessment Roll

Ariana Martinez asked questions about the final assessment numbers and what the taxes would cover. It was explained that taxes fund the Community Development District, which is responsible for maintaining the storm drainage and flood prevention of the District. She then asked if the assessment amount could change. Mr. Pierman explained that the assessment could vary year to year, depending on the needs of the District. He explained that residents would receive letters if assessments were to ever increase.

Consider Resolution No. 2018-04 – Adopting a Fiscal Year 2018/2019 Annual Assessment
Roll

Resolution No. 2018-04 was presented, entitled:

RESOLUTION 2018-04

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HILLCREST COMMUNITY DEVELOPMENT DISTRICT MAKING A DETERMINATION OF BENEFIT AND IMPOSING SPECIAL ASSESSMENTS FOR FISCAL YEAR 2018/2019; PROVIDING FOR THE COLLECTION AND ENFORCEMENT OF SPECIAL ASSESSMENTS; CERTIFYING AN ASSESSMENT ROLL; PROVIDING FOR AMENDMENTS TO THE ASSESSMENT ROLL; PROVIDING A SEVERABILITY CLAUSE;

AND PROVIDING AN EFFECTIVE DATE.

A motion was made by Mr. Gonzalez, seconded by Mr. Hartman and passed unanimously to adopt Resolution No. 2018-04, as presented.

The Public Hearing was closed and the Regular Board Meeting was reconvened.

OLD BUSINESS

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

NEW BUSINESS
Consider Resolution No. 2018-05 – Adopting a Fiscal Year 2018/2019 Meeting Schedule
Resolution No. 2018-05 was presented, entitled:

RESOLUTION NO. 2018-05

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HILLCREST COMMUNITY DEVELOPMENT DISTRICT, ESTABLISHING A REGULAR MEETING SCHEDULE FOR FISCAL YEAR 2018/2019 AND SETTING THE TIME AND LOCATION OF SAID DISTRICT MEETINGS; AND PROVIDING AN EFFECTIVE DATE.

A motion was made by Mr. Hartman, seconded by Mr. Gonzalez and passed unanimously to adopt Resolution No. 2018-01, as presented.

Consider Resolution No. 2018-06 – Adopting a Statewide Mutual Aid Agreement

Resolution No. 2018-06 was presented, entitled:

RESOLUTION NO. 2018-06

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HILLCREST COMMUNITY DEVELOPMENT DISTRICT, STATE OF FLORIDA, APPROVING THE REVISED FLORIDA STATEWIDE MUTUAL AID AGREEMENT; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.

A motion was made by Mr. Gonzalez, seconded by Mr. Hartman and passed unanimously approving the Resolution No. 2018-06, as presented.

Consider Approval of Property Appraiser Agreement between the County and the District

A motion was made by Mr. Hartman, seconded by Mr. Gonzalez and passed unanimously approving the Property Appraiser Agreement between the County and the District, as presented.

ADMINISTRATIVE MATTERS

Mr. Pierman reminded the Board to complete their Financial Disclosure form (Form 1).

BOARD MEMBER COMMENTS

There were no comments from the Board Members.

ADJOURNMENT

There being no further business to come before the Board, a motion was made by Mr. Gonzalez, seconded by Mr. Hartman and passed unanimously to adjourn the meeting at 2:28 p.m.

ATTESTED BY:

Secretary/Assistant Secretary	Chairperson/Vice-Chair

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.

WHEREAS, the Board of Supervisors of the Hillcrest 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 HILLCREST COMMUNITY DEVELOPMENT DISTRICT, THAT:

Section 1. The Amended Budget for Fiscal  Year  2017/2018  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 18th day of October, 2018.

ATTEST:	HILLCREST
COMMUNITY DEVELOPMENT DISTRICT

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

Hillcrest
Community Development District

Amended Final Budget For Fiscal Year 2017/2018
October 1, 2017	- September 30, 2018

CONTENTS

AMENDED FINAL OPERATING FUND BUDGET

AMENDED FINAL DEBT SERVICE FUND BUDGET

AMENDED FINAL BUDGET
HILLCREST COMMUNITY DEVELOPMENT DISTRICT OPERATING FUND
FISCAL YEAR 2017/2018 OCTOBER 1, 2017 - SEPTEMBER 30, 2018

REVENUES	FISCAL YEAR 2017/2018 BUDGET 10/1/17 - 9/30/18	AMENDED FINAL BUDGET
10/1/17 - 9/30/18	YEAR TO DATE ACTUAL
10/1/17 - 9/29/18	
O & M Assessments	0	0	0	
Developer Contribution	77,725	77,725	77,725	
Other Revenues	0	0	0	
Interest Income	0	0	0	
				
Total Revenues	$	77,725	$	77,725	$	77,725	
				
EXPENDITURES				
Supervisor Fees	0	0	0	
Engineering/Inspections	2,500	10,000	6,415	
Management	33,000	33,000	33,000	
Legal	24,000	11,000	6,714	
Assessment Roll	5,000	5,000	5,000	
Audit Fees	0	0	0	
Arbitrage Rebate Fee	0	0	0	
Insurance	6,000	6,719	6,719	
Legal Advertisements	5,000	4,000	3,346	
Miscellaneous	1,000	1,800	1,649	
Postage	300	390	374	
Office Supplies	750	1,775	1,729	
Dues & Subscriptions	175	175	175	
Trustee Fees	0	0	0	
Continuing Disclosure Fee	0	1,000	1,000	
TOTAL EXPENDITURES	$	77,725	$	74,859	$	66,121	
				
Excess/ (Shortfall)	$	-	$	2,866	$	11,604	
				
Bond Payments	0	0	0	
				
Balance	$	-	$	2,866	$	11,604	
				
County Appraiser & Tax Collector Fee	0	0	0	
Discounts For Early Payments	0	0	0	
				
Net Excess/ (Shortfall)	$	-	$	2,866	$	11,604	

FUND BALANCE AS OF 9/30/17	
FY 2017/2018 FUND BALANCE ACTIVITY	
FUND BALANCE AS OF 9/30/18	

$774	
$2,866	
$3,640	

I

AMENDED FINAL BUDGET
HILLCREST COMMUNITY DEVELOPMENT DISTRICT DEBT SERVICE FUND
FISCAL YEAR 2017/2018 OCTOBER 1, 2017 - SEPTEMBER 30, 2018

REVENUES	FISCAL YEAR 2017/2018 BUDGET 10/1/17 - 9/30/18	AMENDED FINAL BUDGET
10/1/17 - 9/30/18	YEAR TO DATE ACTUAL
10/1/17 - 9/29/18	
Interest Income	0	810	799	
NAV Assessment Collection	0	0	0	
Bond Proceeds (Debt Service)	0	676,550	676,550	
Miscellaneous Revenue	0	2,907	2,907	
Total Revenues	$	-	$	680,267	$	680,256	
				
EXPENDITURES				
Principal Payments	0	0	0	
Interest Payments	0	139,293	139,293	
				
Total Expenditures	$	-	$	139,293	$	139,293	
				
Excess/ (Shortfall)	$	-	$	540,974	$	540,963	

FUND BALANCE AS OF 9/30/17	
FY 2017/2018 ACTIVITY	
FUND BALANCE AS OF 9/30/18	

$0	
$540,974	
$540,974	

Notes
Capital Projects Debt Proceeds = $9,128,450. Total Bond Proceeds = $9,805,000. Reserve Fund Balance = $311,786*. Interest Fund Balance = $228,788*
Interest Fund Balance To Be Used To Make 11/1/18 Interest Payment Of $225,881.
FY 2017/2018 Capital Outlays = $8,973,489. FY 2017/2018 Cost Of Issuance = $385,750.
* Approximate Amounts

Series 2018 Bond Information

Original Par Amount =	$9,805,000	Annual Principal Payments Due:	
Interest Rate =	3.625% - 5.0%	November 1st	
Issue Date =	January 2018	Annual Interest Payments Due:	
Maturity Date =

Par Amount As Of 9/30/18 =	November 2048

$9,805,000	May 1st & November 1st	

HILLCREST COMMUNITY DEVELOPMENT DISTRICT AUDITOR SELECTION
EVALUATION CRITERIA

Ability of Personnel (10 Points).

(E.g., geographic locations of the firm’s headquarters or permanent office in relation to the project; capabilities and experience of key personnel; evaluation of existing work load; proposed staffing levels, etc.)

Proposer’s Experience (10 Points).

(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 of Proposer, etc.)

Understanding of Scope of Work (10 Points).

Extent to which the proposal demonstrates an understanding of the District’s needs for the services requested.

Ability to Furnish the Required Services (10 Points).

Present ability to manage this project and the 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 (E.g. the existence of any natural disaster plan for business operations).

Price (10 Points).

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

HILLCREST COMMUNITY DEVELOPMENT DISTRICT REQUEST FOR PROPOSALS

District Auditing Services for Fiscal Years 2017/2018, 2018/2019 and 2019/2020 With Two Year Option (2020/2021 and 2021/2022)
Broward County, Florida

HILLCREST COMMUNITY DEVELOPMENT DISTRICT AUDITOR SELECTION INSTRUCTIONS TO PROPOSERS

SECTION 1. DUE DATE. Sealed proposals must be received no later than November 27, 2018 at 4:00 p.m., at the offices of District Manager, located at 2501A Burns Road, Palm Beach Gardens, Florida 33410.

SECTION 2. FAMILIARITY WITH THE LAW. By submitting a proposal, the Proposer is affirming its familiarity and understanding with all federal, state, and local laws, ordinances, rules and regulations that in any manner affect the work. Ignorance on the part of the Proposer will in no way relieve it from responsibility to perform the work covered by the proposal in compliance with all such laws, ordinances and regulations.

SECTION 3. QUALIFICATIONS OF PROPOSER. The contract, if awarded, will only be awarded to a responsible Proposer who is qualified by experience and licensing to do the work specified herein. The Proposer shall submit with its proposal satisfactory evidence of experience in similar work and show that it is fully prepared to complete the work to the satisfaction of the District.

SECTION 4. REJECTION OF PROPOSAL. Proposers shall be disqualified and their proposals rejected if the District has reason to believe that collusion may exist among the Proposers, the Proposer has defaulted on any previous contract or is in arrears on any previous or existing contract, or for failure to demonstrate proper licensure and business organization.

SECTION 5. SUBMISSION OF PROPOSAL. Submit five (5) copies of the Proposal Documents and one digital copy, and other requested attachments at the time and place indicated herein, which shall be enclosed in an opaque sealed envelope, marked with the title “Auditing Services – Hillcrest Community Development District” on the face of it.

SECTION 6. MODIFICATION AND WITHDRAWAL. Proposals may be
modified or withdrawn by an appropriate document duly executed and delivered to the place where proposals are to be submitted at any time prior to the time and date the proposals are due. After proposals are opened by the District, no proposal may be withdrawn for a period of ninety (90) days.

SECTION 7. PROPOSAL DOCUMENTS. The proposal documents shall consist of the notice announcing the request for proposals, these instructions, the Evaluation Criteria Sheet and a proposal with all required documentation pursuant to Section 12 of these instructions (the “Proposal Documents”).

SECTION 8. PROPOSAL. In making its proposal, each Proposer represents that it has read and understands the Proposal Documents and that the proposal is made in accordance therewith.

SECTION 9. BASIS OF AWARD/RIGHT TO REJECT. The District reserves the right to reject any and all proposals, make modifications to the work, and waive any informalities or irregularities in proposals as it is deemed in the best interests of the District.

SECTION 10. CONTRACT AWARD. Within fourteen (14) days of receipt of the Notice of Award from the District, the Proposer shall enter into and execute a Contract (engagement letter) with the District.

SECTION 11. LIMITATION OF LIABILITY. Nothing herein shall be construed as or constitute a waiver of District’s limited waiver of liability contained in section 768.28, Florida Statutes, or any other statute or law.

SECTION 12. MISCELLANEOUS. All proposals shall include the following information in addition to any other requirements of the proposal documents.

List position or title of all personnel to perform work on the District audit. Include resumes or each person listed; list years of experience in present position for each party listed and years of related experience.

Describe proposed staffing levels, including resumes with applicable certifications.

Three references from projects of similar size and scope. The Proposer should include information relating to the work it conducted for each reference as well as a name, address and phone number of a contact person.

SECTION 13. PROTESTS. Any protest regarding the Proposal Documents, must be filed in writing, at the offices of the District Manager, within seventy-two (72) hours after receipt of the Request for Proposals and Evaluation Criteria or other contract documents. The formal protest setting forth with particularity the facts and law upon which the protest is based shall be filed within seven (7) calendar days after the initial notice of protest was filed. Failure to timely file a notice of protest or failure to timely file a formal written protest shall constitute a waiver of any right to object or protest with respect to the aforesaid Request for Proposals, Evaluation Criteria, or other contract documents.

SECTION 14. EVALUATION OF PROPOSALS. The criteria to be used in the evaluation are presented in the Evaluation Criteria Sheet, contained within the Proposal Documents.

SECTION 15. REJECTION OF ALL PROPOSALS. The District reserves the right to reject any and all bids, with or without cause, and to waive technical errors and informalities, as determined to be in the best interests of the District.

FINANCIAL RISK MANAGEMENT POLICY
(Fiscal Year 2017/2018)
Special District Services, Inc. (“SDS, Inc.”), acting in the capacity of District Manager, as part of good management  practices  and  to  satisfy  annual  audit  requirements  does  implement certain measures and procedures to identify and mitigate financial mismanagement/fraud risks, as follows:
Each month the District’s operating/checking bank account is reconciled by an authorized person who has not deposited funds to, processed expenditures or written checks from, that particular operating/checking account; and

Each expenditure from the District’s operating/checking account requires a minimum of two (2) approvals from authorized staff and/or District officials and the respective approvals are provided by persons other than the preparer of the expenditure(s); and

All financial transactions are logged and maintained by the District Manager for record keeping purposes; and

A designated member of the Board (by an electronic approval procedure) has an opportunity to review the District’s expenditure(s) prior to the payment(s) being released; and

The District engages an independent firm, pursuant to Chapter 218.391, Florida Statutes, to audit the prior year’s financial activities (October 1st through September 30th) from which an independent fiscal year annual audit is prepared; and

Within sixty (60) days of the end of each fiscal year (September 30th) the District’s Board of Supervisors reviews, pursuant to Chapter 189.418(5), Florida Statutes, the prior year’s budget relative to actual revenues and expenditures and adopts by resolution an amended/revised final budget.

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