North Powerline Road Community Development District

Agenda September 17, 2020
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AGENDA
North Powerline Road
Community Development District
219 E. Livingston St., Orlando, Florida 32801 Phone: 407-841-5524 – Fax: 407-839-1526

September 10, 2020

Board of Supervisors North Powerline Road
Community Development District

Dear Board Members:

The regular meeting of the Board of Supervisors of North Powerline Road Community Development District will be held Thursday, September 17, 2020 at 10:00 AM via Zoom Teleconference.

Those wishing to attend the meeting can do so using the information below:

Zoom Video Link: https://zoom.us/j/94197839299

Zoom Call-In Information: 1-646-876-9923
Meeting ID: 941 9783 9299

Following is the advance agenda for the meeting:

Roll Call
Public Comment Period (1Speakers will fill out a card and submit it to the District Manager prior to the beginning of the meeting)
Approval of Minutes of the August 5, 2020 Board of Supervisors Meeting
Review and Ranking of Proposals Received for Phase 2 and 3 Construction RFP and Authorizing Staff to Issue Notice of Intent to Award
Consideration of Engagement Letter with Bond Counsel
Consideration of Engagement Letter with Grau & Associates for Fiscal Year 2020 Audit Services
Staff Reports
Attorney

1 Comments will be limited to three (3) minutes
Engineer
District Manager’s Report
Approval of Check Register
Balance Sheet and Income Statement
Ratification of Kearney CO #1
Other Business
Supervisors Requests and Audience Comments
Adjournment

The second order of business is the Public Comment Period where the public has an opportunity to be heard on propositions coming before the Board as reflected on the agenda, and any other items. Speakers must fill out a Request to Speak form and submit it to the District Manager prior to the beginning of the meeting.

The third order of business is the approval of the minutes from the August 5, 2020 Board of Supervisors Meeting. A copy of the minutes are enclosed for your review.

The fourth order of business is the Review and Ranking of Proposals Received for Phase 2 and 3 Construction RFP and Authorizing Staff to Issue Notice of Intent to Award. The rankings are enclosed for your review.

The fifth order of business is the Consideration Engagement Letter with Bond Counsel. A copy of the letter is enclosed for your review.

The sixth order of business is the Consideration of Engagement Letter with Grau & Associates for Fiscal Year 2020 Audit Services. A copy of the letter is enclosed for your review.

The seventh order of business is Staff Reports. Section C is the District Manager’s report. Sub-Section 1 includes the Check Register for your approval. Sub-Section 2 includes the balance sheet and income statement for your review. Sub-Section 3 is the Ratification of Kearney CO #1. A copy of the change order is enclosed for your review.

The balance of the agenda will be discussed at the meeting. In the meantime, if you should have any questions, please do not hesitate to contact me.
Sincerely, Jill Burns
District Manager

CC: Roy Van Wyk, District Counsel

Enclosures

MINUTES
MINUTES OF MEETING NORTH POWERLINE ROAD
COMMUNITY DEVELOPMENT DISTRICT

The Regular meeting of the Board of Supervisors of the North Powerline Road Community Development District was held on Wednesday, August 5, 2020 at 10:05 a.m. via Zoom Teleconference, pursuant to Executive Order 20-69, issued by Governor DeSantis, as amended and supplemented.

Present via Zoom and constituting a quorum:

Lauren Schwenk	Vice Chairman
Phillip Allende	Assistant Secretary
Kevin Chinoy	Assistant Secretary Also present were:
Jill Burns	District Manager/GMS
Heather Wertz	Absolute Engineering
Roy Van Wyk	HGS
Michelle Rigoni	HGS
April Payeur	Developer’s Office
Patrick Marone	Developer’s Office

FIRST ORDER OF BUSINESS	Roll Call
Ms. Burns called the meeting to order and called the roll. Three board members were present via Zoom constituting a quorum.

SECOND ORDER OF BUSINESS	Public Comment Period
No members of the public were present via Zoom. There being no public comments, the next item followed.

THIRD ORDER OF BUSINESS	Approval of Minutes of the June 18, 2020
Board of Supervisors Meeting
Ms. Burns asked for any questions, comments, or corrections on the minutes. The board had no changes to the minutes.
August 5, 2020	North Powerline Road CDD

FOURTH ORDER OF BUSINESS	Public Hearings
Public Hearing on the Adoption of the Fiscal Year 2021 Budget
Ms. Burns stated this was a public hearing on the adoption of the Fiscal Year 2021 Budget.
The public hearing was advertised in the paper.

Consideration of Resolution 2020-14 Adoption of the District’s Fiscal Year 2021 Budget and Appropriating Funds
Ms. Burns noted that there were no members of the public present. She stated that Resolution 2020-14 adopting the District’s Fiscal Year 2021 budget and appropriating funds was in the agenda package as Exhibit ‘A’. The total budget amount is $202,365. The budget is Developer funded, so the expenses will only be billed as they are incurred. Ms. Burns noted that they do not anticipate the amenity coming online in the next fiscal year, but they do have some field expenses. Based on the current development timeline, they anticipate turning over some landscaping and streetlights to the District during this fiscal year.

Consideration of Developer Funding Agreement
Ms. Burns stated this agreement was with JMBI Real Estate, LLC. The Board had no questions on the agreement.

Ms. Burns asked for a motion to close the Public Hearing.

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August 5, 2020	North Powerline Road CDD

Public Hearing on the Imposition of Special Assessments on Boundary Amendment Parcel
Presentation of Engineer’s Reports
Ms. Burns stated this Public Hearing was set at the last meeting. The mailed notice and published notices were sent to the property owners affected by the assessments for the boundary amendment parcel. Ms. Burns asked for a motion to open the Public Hearing.

Ms. Burns asked Heather to review the Engineer’s Report, which had not changed since the last time Board members reviewed. Ms. Wertz noted that the first supplemental to the second amended and restated Engineer’s Report from March 2020 was an update to revise the Development Plan that is a number of lots per phase. Also, there was an increase of overall units by 16 units. The cost went up by $595,297. The new cost for the total 567 lots is $14,526,296.
Ms. Rigoni asked if the costs estimates were reasonable for the project of this size and scale. Ms. Wertz replied yes. Ms. Rigoni asked if there was any reason to believe that the District cannot carry out the project at this time. Ms. Wertz replied no.

Presentation of Assessment Methodologies
Ms. Burns gave an overview of the Assessment Methodologies that were included in the agenda package, and she noted they had not changed. The Master Assessment Methodology was dated February 2020. The cost described in the Engineer’s Report is broken down by 2 different lot size; the 40’ and 45’ lots, and the 55’ and 65’ lots. There are 6 lots in the annexation parcel. Table 5 shows the par debt per unit with annexation for the 40’ and 45’ lots that totals $31,489. For the 55’ and 65’ lots the total is $39,362. Table 6 outlines the net and gross annual debt assessments with annexation for both product types. The other report is the Supplemental Assessment Methodology for Phase 1. Those tables outline the total for Phase 1 which is 295 units. Table 5 shows the par debt per unit and Table 6 shows the net and gross annual amounts per unit that will be $1,250 for the 40’ lots and $1,350 for the 55’ lots and 65’ lots will be $1,350 as well.

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August 5, 2020	North Powerline Road CDD

Ms. Burns clarified that Table 6 in the Supplemental based on the Phase 1 issuance shows the assessment amounts per unit. Table 7 is the Assessment Roll. Ms. Schwenk stated the Assessment Roll needs to be updated because Astoria had been purchased by JMBI Real Estate, LLC, all of Phase 1, the 295 lots, is now owned by JMBI Real Estate, LLC.
Ms. Rigoni asked if the lands subject to the Special Assessments receive special benefits from this. Ms. Burns replied, yes they do. Ms. Rigoni asked if the special benefits equal or exceed the Special Assessments levied. Ms. Burns replied yes. Ms. Rigoni asked if the Special Assessments are reasonably apportioned of the lands in accordance with the methodology. Ms. Burns replied, yes. Ms. Rigoni asked if it was reasonable, proper, and just to assess the cost of the Capital Improvement Project against the lands in accordance with the Methodology. Ms. Burns replied yes it is. Ms. Rigoni asked is it in the best interest of the District that the Special Assessments be collected in accordance with the methodology in the assessment resolutions. Ms. Burns replied yes.

Consideration of Resolution 2020-15 Levying Special Assessments
Ms. Rigoni stated that Section 1 provides the authority for the Board to levy assessments. Section 2 reflects certain findings made by the Board including the evidence presented at the meeting today. Section 3 authorizes the District project initially described in the previous assessments reports. Section 4 provides the estimated costs of the improvements based on the reports presented today. Section 5 equalizes, approves, confirms, and levies the Special Assessments. Section 6 provides for finalization of the Special Assessments once the District is ready to declare the project complete. Section 7 provides for payment and collection of the method of Special Assessments. Section 8 provides for application for true up when needed and Section 9 provides that certain entities that are exempt from Special Assessments. Section 10 directs staff to record the notice in the Polk County Public Records for the imposition of Special Assessments.

Consideration of Second Amended and Restated Notice of Special Assessments

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August 5, 2020	North Powerline Road CDD

Ms. Burns stated this would include the boundary amendment parcel that they just levied assessments on. Ms. Burns asked for a motion to open the Public Hearing.

Ms. Burns stated there were no member of the public present at this time.

Ms. Burns asked for a motion to close the Public Hearing.

Public Hearing on the District’s Use of the Uniform Method of Levying, Collection & Enforcement of Non Ad-Valorem Assessments
Ms. Burns stated this Public Hearing was for the boundary amendment parcel they just levied the assessments on.

Consideration of Resolution 2020-16 Expressing the District’s Intent to Utilize the Uniform Method of Collection
Ms. Burns stated that there were no members of the public present, and the ads to notice the Public Hearing was placed in the paper according to statute. Resolution 2020-16 was included in the package for review. The Board had no questions on the resolution.

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August 5, 2020	North Powerline Road CDD

Ms. Burns asked for a motion to close the Public Hearing.

FIFTH ORDER OF BUSINESS	Consideration	of	Resolution	2020-17
Directing the Chairman and District Staff to File a Petition Amending District Boundaries (2020 Boundary Amendment 2)
Ms. Burns noted that the parcel information was listed as an exhibit to the resolution and this would authorize staff to put together a petition for the boundary amendment and get that filed.

SIXTH ORDER OF BUSINESS	Consideration  of  Boundary Amendment
Funding	Agreement	(2020	Boundary Amendment Number 2)
Ms. Burns noted that this agreement was with JMBI Real Estate, LLC. This agreement states that they will fund all expenses related to the boundary amendment.

SEVENTH ORDER OF BUSINESS	Consideration Notice of Phase 2 and Phase
3 RFP for Construction Services and Approval of Evaluation Criteria
Ms. Burns stated that the ad listed contemplates a due date of September 10th which is at
least 30 days out from today. The ad will run on Monday and questions will be due by Thursday, September 3rd, with proposals due by Thursday, September 10th. This would authorize staff to issue the RFP.

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August 5, 2020	North Powerline Road CDD

EIGHTH ORDER OF BUSINESS	Consideration	of	Resolution	2020-18
Designation of Regular Monthly Meeting Date, Time, and Location for Fiscal Year 2021
Ms. Burns noted the dates, times, listed in the package are the same as the current fiscal year. The Board had no changes to the meeting schedule.

NINTH ORDER OF BUSINESS	Staff Reports
Attorney
Ms. Rigoni had nothing further to report.

Engineer
Ms. Wertz had nothing further for the board.

District Manager’s Report
Approval of Check Register
Ms. Burns stated that the check register was included in the agenda package and totaled
$1,616.97 from April 29th through July 26th.

Balance Sheet and Income Statement
Ms. Burns stated that the financials were in the package and there was no action required.
She asked for any questions. Hearing none,

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August 5, 2020	North Powerline Road CDD

TENTH ORDER OF BUSINESS	Other Business
There being none, the next item followed.

ELEVENTH ORDER OF BUSINESS	Supervisors Requests and Audience
Comments
Ms. Schwenk asked what the timing was on bringing all the lands to the south end. Ms. Rigoni noted that it would depend on how quickly they could get on the County Commissions agenda. Ms. Rigoni stated that they would need to get consent from the city, since some of the parcels are located in the city of Davenport. Ms. Rigoni clarified that they will need the city’s consent to have the boundary amendment processed by the county.
Ms. Schwenk asked for more clarification regarding roadway costs.

TWELTH ORDER OF BUSINESS	Adjournment
Ms. Burns stated that there was no further business and asked for a motion to adjourn.

Secretary / Assistant Secretary	Chairman / Vice Chairman

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(·

S ECT-I ON IV
Powerline Road Phase 1B‐2 & 2 Bid Rankings																	
CDD Board Presentation Thursday September 17, 2020 10:00 A.M.																	
									
25	
25	
10	
20	
15	
5	
100		

Company	

Original Bid Price	

Adjusted Bid Price	
Days to Substantial Completion	Adjusted Days to Substantial Completion	

Price Rank	

Percent over Low	

Schedule Rank	

Percent over Low	

Price	

Schedule	

Financial Capability	

Understanding of Work	

Experience	

Personnel	

Total	

Overall Rank	
QGS	$4,904,982.00	$4,515,405.26	235	
195	1	100.00%	1	100.00%	25.00	25.00	10	18	15	5	
98.00	
2	
RIPA	$4,891,132.10	$4,851,638.75	218	
218	3	107.45%	3	111.79%	23.25	22.00	10	20	15	5	
95.25	
3	
KEARNEY	$5,345,678.90	$5,049,140.65	245	
224	4	111.82%	4	114.87%	22.00	21.25	10	20	15	5	
93.25	
4	
TUCKER PAVING	$4,383,496.70	$4,521,540.29	246	
201	2	100.14%	2	103.08%	25.00	24.25	10	20	15	5	
99.25	
1	

																	

Adjustments																	
																	
QGS	$4,904,982.00																
deduct clearing	‐$198,291.74																
deduct ALT Limerock Base	‐$160,000.00																
deduct Shallow up FPMIT Ponds	‐$31,285.00																
Total	$4,515,405.26																
																	
RIPA	$4,891,132.10																
deduct clearing	‐$215,911.20																
deduct ALT Limerock Base	‐$29,294.10																
add FP Pond U1	$69,144.70																
add RCP difference	$136,567.25																
Total	$4,851,638.75																
																	
KDC	$5,345,678.90																
deduct clearing	‐$231,145.33																
deduct ALT Limerock Base	‐$65,392.92																
Total	$5,049,140.65																
																	
Tucker	$4,383,496.70																
deduct clearing	‐$155,200.00																
deduct ALT Limerock Base	$0.00																
add seed and mulch lots	$55,710.93																
add retaining wall	$150,248.00																
add FP Pond U1	$87,284.66																
Total	$4,521,540.29																

S	ECTION V

Robert C. Gang Tel: 305.579.0886
Fax: 305.961.5586
gangr@gtlaw.com

August 12, 2020

North Powerline Road Community Development District c/o Government Management Services-Central Florida LLC 219 East Livingston Street
Orlando, Florida 32801

Attention:	Jill Burns, District Manager Re:	Bond Counsel Engagement
Ladies and Gentlemen:

On June 20, 2018 the Board of Supervisors engaged Greenberg Traurig P.A. (“GT”) to serve as bond counsel for the issuance of special assessment bonds which were expected to be issued in 2018. We quoted a fee of $45,000, which could be raised as a result of “unusual circumstances”, subject to Board approval. The bonds were validated on September 25, 2018. The first delegation resolution was adopted after an 11-month delay, then rescinded a month after that in order to wait to encompass an annexed parcel. We then submitted a second delegation resolution with revised documents which was approved on February 5, 2020. It is now expected that the bonds will be issued in late September or early October, approximately 27 months after our initial engagement and fee proposal were approved. We feel that the delays, the adoption, rescission and re-adoption of resolutions, all together constitute “unusual circumstances”, and consequently we are requesting approval of a $10,000 increase in the fee for this initial issuance.

Please submit this modification to our initial engagement letter at the September meeting of the Board of Supervisors. If this proposal is acceptable to the Board, please so indicate by executing this letter and emailing a copy back to me. Thank you very much.

Yours sincerely,
Robert C. Gang

Accepted and agreed to this 	day of September, 2020

Chairman, Board of Supervisors

Greenberg Traurig, P.A. ׀ Attorneys at Law
333 SE 2nd Avenue ׀ Suite 4400 ׀ Miami, FL 33131 ׀ Tel 305.579.0500 ׀ Fax 305.579.0717

www.gtlaw.com

SECTION VI

August 24, 2020 Board of Supervisors
North Powerline Road Community Development District c/o GMS, LLC
219 E. Livingston Street Orlando, FL 32801
951 Yamato Road ▪ Suite 280 Boca Raton, Florida  33431 (561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

We are pleased to confirm our understanding of the services we are to provide North Powerline Road Community Development District, Polk County, Florida (the “District”) for the fiscal year ended September 30, 2020. We will audit the financial statements of the governmental activities and each major fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of North Powerline Road Community Development District for the fiscal year ended September 30, 2020. In addition, we will examine the District’s compliance with the requirements of Section 218.415 Florida Statutes. This letter serves to renew our agreement and establish the terms and fee for the 2020 audit.
Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the District’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the District’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited:
Management’s Discussion and Analysis.
Budgetary comparison schedule
Audit Objectives
The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the District and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the District’s financial statements. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of- matter or other-matter paragraphs. If our opinion on the financial statements is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report, or may withdraw from this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements.
North Powerline Road Community Development District	Page 2

Examination Objective
The objective of our examination is the expression of an opinion as to whether the District is in compliance with Florida Statute 218.415 in accordance with Rule 10.556(10) of the Auditor General of the State of Florida. Our examination will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and will include tests of your records and other procedures we consider necessary to enable us to express such an opinion. We will issue a written report upon completion of our examination of the District’s compliance. The report will include a statement that the report is intended solely for the information and use of management, those charged with governance, and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of-matter or other- matter paragraphs. If our opinion on the District’s compliance is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the examination or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report, or may withdraw from this engagement.
Other Services
We will assist in preparing the financial statements and related notes of the District in conformity with U.S. generally accepted accounting principles based on information provided by you. These non-audit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.
Management Responsibilities
Management is responsible for the financial statements and all accompanying information as well as all representations contained therein. Further, management is responsible for compliance with Florida Statute 218.415 and will provide us with the information required for the examination. The accuracy and completeness of such information is also management’s responsibility. As part of the audit, we will assist with preparation of your financial statements and related notes in conformity with U.S. generally accepted accounting principles based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. In addition, you will be required to make certain representations regarding compliance with Florida Statute 218.415 in the management representation letter. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.
Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management is reliable and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.
Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements,
additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. As part of our engagement, we may propose standard adjusting, or correcting journal entries to your financial statements. You are responsible for reviewing the entries and understanding the nature of the proposed entries and the impact they have on the financial statements.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we report.
North Powerline Road Community Development District	Page 3

Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information.

With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards.
Audit Procedures—Internal Control
Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing.
The audit documentation for this engagement is the property of Grau & Associates and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a cognizant or oversight agency or its designee, a federal
North Powerline Road Community Development District	Page 4

agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Grau & Associates personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. Notwithstanding the foregoing, the parties acknowledge that various documents reviewed or produced during the conduct of the audit may be
public records under Florida law. The District agrees to notify Grau & Associates of any public record request it receives that involves audit documentation.

Furthermore, Grau & Associates agrees to comply with all applicable provisions of Florida law in handling such records, including but not limited to Section 119.0701, Florida Statutes. Auditor acknowledges that the designated public records custodian for the District is the District Manager (“Public Records Custodian”). Among other requirements and to the extent applicable by law, Grau & Associates shall 1) keep and maintain public records required by the District to perform the service; 2) upon request by the Public Records Custodian, provide the District with the requested public records or allow the records to be inspected or copied within a reasonable time period at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes; 3) ensure that public records which are exempt or confidential, and exempt from public records disclosure requirements, are not disclosed except as authorized by law for the duration of the contract term and following the contract term if Auditor does not transfer the records to the Public Records Custodian of the District; and 4) upon completion of the contract, transfer to the District, at no cost, all public records in Grau & Associate’s possession or, alternatively, keep, maintain and meet all applicable requirements for retaining public records pursuant to Florida laws. When such public records are transferred by Grau & Associates, Grau & Associates shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the District in a format that is compatible with Microsoft Word or Adobe PDF formats.

IF GRAU & ASSOCIATES HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO ITS DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE PUBLIC RECORDS CUSTODIAN.

Our fee for these services will not exceed $3,000 for the September 30, 2020 audit, unless there is a change in activity by the District which results in additional audit work or if Bonds are issued.

We will complete the audit within prescribed statutory deadlines, which requires the District to submit its annual audit to the Auditor General no later than nine (9) months after the end of the audited fiscal year, with the understanding that your employees will provide information needed to perform the audit on a timely basis.

The audit documentation for this engagement will be retained for a minimum of five years after the report release date. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.

Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Invoices will be submitted in sufficient detail to demonstrate compliance with the terms of this agreement. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate.

We will provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2019 peer review report accompanies this letter.
North Powerline Road Community Development District	Page 5

We appreciate the opportunity to be of service to North Powerline Road Community Development District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.

Very truly yours, Grau & Associates

Antonio J. Grau RESPONSE:
This letter correctly sets forth the understanding of North Powerline Road Community Development District.

By:	 		
Title:	 		
Date:		
North Powerline Road Community Development District	Page 6

SECTION VII

SECT1·0	-C

S ECTION 1
North Powerline Road
Community Development District
Summary of Checks

July 29, 2019 to August 24, 2020

	Bank	Date	Check No.'s	Amount		
General Fund		7/30/20	91-100	$	40,999.27	
		8/7/20	101	$	682.50	
				$	41,681.77	

*** CK #94 VOID

North Powerline Road
Community Development District
Summary of Checks

August 25, 2020 to September 08, 2020

	Bank	Date	Check No.'s	Amount		
General Fund		9/2/20	102-103	$	3,000.00	
				$	3,000.00	
				$	3,000.00	

S ECTION 2

NORTH POWERLINE ROAD
Community Development District

Unaudited Financial Reporting

August 31, 2020

Table of Contents

 	Balance Sheet

 	General Fund Income Statement

 	Capital Projects Fund Income Statement

 	Month to Month

 	Developer Contribution Schedule
NORTH POWERLINE ROAD
COMMUNITY DEVELOPMENT DISTRICT BALANCE SHEET
August 31, 2020

	General
Fund		Capital Projects
Fund		Totals
FY20	

ASSETS:
CASH
OPERATING ACCOUNT	

$7,018		

---		

$7,018	
TOTAL ASSETS	 	$7,018 		 	$0 		 	$7,018 	

LIABILITIES:
ACCOUNTS PAYABLE	
$19,878		
---		
$19,878	
DUE TO DEVELOPER	---		$117,510		$117,510	
FUND EQUITY:
FUND BALANCES: UNASSIGNED	

($12,860)		

---		

($12,860)	
RESERVED FOR CAPITAL PROJECTS	---		($117,510)		($117,510)	
TOTAL LIABILITIES & FUND EQUITY	 	$7,018 		 	$0 		 	$7,018 	

1
NORTH POWERLINE ROAD
COMMUNITY DEVELOPMENT DISTRICT GENERAL FUND
Statement of Revenues & Expenditures
For The Period Ending August 31, 2020

	ADOPTED
BUDGET	PRORATED BUDGET
THRU 08/31/20	ACTUAL
THRU 08/31/20	
VARIANCE	
REVENUES:					
DEVELOPER CONTRIBUTIONS	$131,025	$60,000	$60,000	$0	
BOUNDARY AMENDMENT CONTRIBUTIONS	$0	$0	$9,347	$9,347	
INTEREST	$0	$0	$2	$2	
TOTAL REVENUES	$131,025	$60,000	$69,349	$9,349	
EXPENDITURES:					
ADMINISTRATIVE:					
SUPERVISORS FEES	$12,000	$11,000	$7,800	$3,200	
ENGINEERING	$20,000	$18,333	$1,470	$16,863	
ATTORNEY	$25,000	$22,917	$12,156	$10,761	
ANNUAL AUDIT	$2,900	$2,900	$2,900	$0	
ASSESSMENT ADMINISTRATION	$5,000	$0	$0	$0	
ARBITRAGE	$650	$0	$0	$0	
DISSEMINATION	$5,000	$0	$0	$0	
TRUSTEE FEES	$3,550	$0	$0	$0	
MANAGEMENT FEES	$35,000	$32,083	$32,083	($0)	
INFORMATION TECHNOLOGY	$2,100	$1,925	$825	$1,100	
TELEPHONE	$250	$229	$28	$201	
POSTAGE & DELIVERY	$850	$779	$197	$582	
INSURANCE	$5,500	$5,500	$5,125	$375	
PRINTING & BINDING	$1,000	$917	$196	$720	
LEGAL ADVERTISING	$10,000	$9,167	$16,427	($7,260)	
OTHER CURRENT CHARGES	$1,000	$917	$0	$917	
BOUNDARY AMENDMENT EXPENSES	$0	$0	$12,347	($12,347)	
OFFICE SUPPLIES	$500	$458	$23	$435	
TRAVEL & PER DIEM	$550	$504	$0	$504	
DUES, LICENSES, & FEES	$175	$175	$175	$0	
TOTAL ADMINISTRATIVE:	$131,025	$107,804	$91,753	$16,051	
					
TOTAL EXPENDITURES	$131,025	$107,804	$91,753	$16,051	
					
EXCESS REVENUES (EXPENDITURES)	$0		($22,404)		
					
FUND BALANCE - BEGINNING	$0		$9,544		
					
FUND BALANCE - ENDING	$0		($12,860)		

2
NORTH POWERLINE ROAD
COMMUNITY DEVELOPMENT DISTRICT CAPITAL PROJECTS FUND
Statement of Revenues & Expenditures
For The Period Ending August 31, 2020

	ADOPTED
BUDGET		PRORATED BUDGET
THRU 08/31/20		ACTUAL
THRU 08/31/20	
VARIANCE	
REVENUES:							
DEVELOPER CONTRIBUTIONS		$0		$0	$0	$0	
TOTAL REVENUES		$0		$0	$0	$0	
EXPENDITURES:							
CAPITAL OUTLAY		$0		$0	$21,207	($21,207)	
CAPITAL OUTLAY - COSTS OF ISSUANCE		$0		$0	$0	$0	
TRANSFER OUT		$0		$0	$0	$0	
TOTAL EXPENDITURES		$0		$0	$21,207	($21,207)	
							
EXCESS REVENUES (EXPENDITURES)		$0			($21,207)		
							
FUND BALANCE - BEGINNING		$0			($96,304)		
							
FUND BALANCE - ENDING		$0			($117,510)		

3
NORTH POWERLINE ROAD
Community Development District

	Oct	Nov	Dec	Jan	Feb	March	April	May	June	July	Aug	Sept	Total	
REVENUES:														
DEVELOPER CONTRIBUTIONS	$0	$20,000	$0	$0	$20,000	$20,000	$0	$0	$0	$0	$0	$0	$60,000	
BOUNDARY AMENDMENT CONTRIBUTIONS	$0	$0	$0	$0	$888	$0	$0	$0	$8,459	$0	$0	$0	$9,347	
INTEREST	$0	$0	$0	$0	$1	$0	$0	$0	$0	$0	$0	$0	$2	
TOTAL REVENUES	$0	$20,000	$0	$0	$20,889	$20,000	$0	$0	$8,459	$0	$0	$0	$69,349	

EXPENDITURES:														
ADMINISTRATIVE:														
SUPERVISORS FEES	$1,000	$800	$800	$0	$800	$1,000	$0	$2,000	$800	$0	$600	$0	$7,800	
ENGINEERING	$118	$353	$0	$1,000	$0	$0	$0	$0	$0	$0	$0	$0	$1,470	
ATTORNEY	$2,549	$897	$897	$1,657	$0	$0	$924	$2,629	$2,603	$0	$0	$0	$12,156	
ANNUAL AUDIT	$500	$0	$0	$2,400	$0	$0	$0	$0	$0	$0	$0	$0	$2,900	
ASSESSMENT ADMINISTRATION	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
ARBITRAGE	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
DISSEMINATION	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
TRUSTEE FEES	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
MANAGEMENT FEES	$2,917	$2,917	$2,917	$2,917	$2,917	$2,917	$2,917	$2,917	$2,917	$2,917	$2,917	$0	$32,083	
INFORMATION TECHNOLOGY	$75	$75	$75	$75	$75	$75	$75	$75	$75	$75	$75	$0	$825	
TELEPHONE	$5	$23	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$28	
POSTAGE & DELIVERY	$4	$23	$4	$5	$4	$18	$54	$21	$36	$21	$9	$0	$197	
INSURANCE	$5,125	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$5,125	
PRINTING & BINDING	$54	$41	$16	$9	$7	$34	$26	$0	$1	$6	$0	$0	$196	
LEGAL ADVERTISING	$1,540	$0	$0	$267	$0	$4,593	$1,300	$0	$683	$8,045	$0	$0	$16,427	
OTHER CURRENT CHARGES	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
BOUNDARY AMENDMENT EXPENSES	$0	$758	$131	$410	$3,962	$4,087	$0	$0	$0	$0	$3,000	$0	$12,347	
OFFICE SUPPLIES	$3	$3	$3	$3	$0	$3	$3	$0	$4	$3	$0	$0	$23	
TRAVEL & PER DIEM	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
DUES, LICENSES, & FEES	$175	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$175	
TOTAL ADMINISTRATIVE	$14,064	$5,889	$4,841	$8,742	$7,765	$12,726	$5,298	$7,642	$7,118	$11,066	$6,601	$0	$91,753	
														
TOTAL EXPENDITURES	$14,064	$5,889	$4,841	$8,742	$7,765	$12,726	$5,298	$7,642	$7,118	$11,066	$6,601	$0	$91,753	
														
EXCESS REVENUES/(EXPENDITURES)	($14,064)	$14,111	($4,841)	($8,742)	$13,124	$7,274	($5,298)	($7,642)	$1,341	($11,066)	($6,601)	$0	($22,404)	

4
North Powerline Road Community Development District Developer Contributions/Due from Developer

Funding Request
#	Prepared Date	Payment Received
Date	
Check/Wire Amount	Total Funding
Request	General Fund
Portion (FY18)	General Fund
Portion (FY19)	General Fund
Portion (FY20)	Over and (short)
Balance Due	
FY18-1	6/5/18	10/11/18	$ 25,000.00	$ 25,000.00	$	25,000.00	$	-	$	-	$	-			
2	9/21/18	10/11/18	$ 20,000.00	$ 20,000.00	$	20,000.00	$	-	$	-	$	-			
FY19-01	12/12/18	4/16/19	$ 20,000.00	$ 20,000.00	$	-	$  20,000.00	$	-	$	-				
2	5/15/19	8/12/19	$ 20,000.00	$ 20,000.00	$	-	$  20,000.00	$	-	$	-				
3
FY20 1	7/26/19

11/5/19	9/13/19

12/16/19	$  20,000.00

$  20,000.00	$  20,000.00

$  20,000.00	$	-	$  20,000.00	$	-	$	-

$	-	$	-	$	20,000.00	$	-				
2	2/24/20	3/20/20	$ 20,000.00	$ 20,000.00	$	-	$	-	$	20,000.00	$	-				
BA1-1	2/24/20	3/20/20	$	888.00	$	888.00	$	-	$	-	$	888.00	$	-				
3	3/26/20	7/1/20	$ 20,000.00	$ 20,000.00	$	20,000.00	$	-				
BA1-2	6/10/20	7/1/20	$	8,458.88	$	8,458.88	$	8,458.88	$	-				

5

SECTION 3
THE KEARNEY COMPANIES, LLC.
K.FA lfllilE'V	9625 Wes Kearney Way, Riverview FL 33578
C O M PA N IE S
Office (813) 421-6601
Fax (813) 421-6701

Underground Utilities	Site Development

PROJECT: NORTH POWERLINE ROAD CHANGE ORDER NO. 1
THE KEARNEY COMPANIES PROJECT NO. 0074-01

Conditions: The changes described herein shall be governed by the tenns and conditions of the Contract,
Date:   
3_1_-A_u...,.g-_2_0  

and ohA11 nn• ;n anv u m, ,	1• • the te~• of 1he C onirnct b u • shall b	-	ne	a	nart	of	the	f'nntract.	
INV.NO.	DESCRIPTION	Invoice
Amount	Sales Tax	TOTAL
COST					
									
130743	ATLANTIC TNG 7/20/2020	$	474.00							
130821	ATLANTIC TNG 7/20/2020	$	2,929.00							
130753	ATLANTIC TNG 7/23/2020	$	2,157.00							
130782	ATLANTIC TNG 7/24/2020	$	2,047.00							
130797	ATLANTIC TNG 7/27/2020	$	2,318.00							
130800	ATLANTIC TNG 7/27/2020	$	1,982.00							
130801	ATLANT IC TNG 7/27/2020	$	2,337.00							
130802	ATLANTIC TNG 7/27/2020	$	1,112.00							
130838	AH .ANTIC TNG 7/28/2020	$	9,412.00							
130862	ATLANTIC TNG 7/29/2020	$	789.00							
130880	ATLANTIC TNG 7/30/2020	$	5,591.50							
130881	ATLANTIC TNG 7/30/2020	$	3,430.00							
130897	ATLANTIC TNG 7/31/2020	$	4,334.50							
130898	ATLANTIC TNG 7/31/2020	$	4.251.00							
130931	ATLANTIC TNG 8/3/2020	$	7,888.00							
130953	ATLANTIC TNG 8/4/2020	$	3,604.00							
130974	ATLANTIC TNG 8/5/2020	$	4,899.50							
130975	ATLANTIC TNG 8/5/2020	$	3,607.00							
131054	ATLANTIC TNG 8/10/2020	$	5,246.00							
131055	ATLANTIC TNG 8/10/2020	$	2,871.00							
131088	ATLANTIC TNG 8/11/2020	$ 12,546.00							
131090	ATLANTIC TNG 8/11/2020	$	3,084.00							
131094	ATLANTIC TNG 8/12/2020	$	3,084.00							
131129	ATLANTIC TNG 8/13/2020	$	4,074.00							
131157	ATLANTIC TNG 8/14/2020	$	3,930.00							
131248	ATLANTIC TNG 8/14/2020	$ 28,108.00							
131181	ATLANTIC TNG 8/17/2020	$	5,338.00							
131208	ATLANTIC TNG 8/18/2020	$	4 229.00							
131225	ATLANTIC TNG 8/19/2020	$	4,648.00							
131249	ATLANTIC TNG 8/20/2020	$	5,279.00							
131271	ATLANTIC TNG 8/21/2020	$	5,005.00							
131293	ATLANTIC TNG 8/24/2020	$	3,524.00							
131345	ATLANTIC TNG 8/26/2020	$	3,861.00							
131423	ATLANTIC TNG 8/31/2020	$	4,852.00							
		$ 162,841.50	$ 8,142.08	$	170,983.58					
									
TOTAL		$	(170 983.581							

0074-01 North Powerline  Road COl  - COD Purchase Materials	Page 1 of2
The Kearney Companies LLC hereby requests an extension of
--0--day(s) to the original contract deadline for this work.
REASON FOR CHANGE: DIRECT PURCHASE OF MATERIALS BY CDD

ACCEPTABLE TO:

DATE:	3_1_-..Ag., 2-u_0

Owner
DATE:-------
DATE:-------

0074-01 North Powerline Road COi - COD Purchase Materials	Page 2 of2