Lake Ashton
Communit� Development District
Carol fontious, Chair 5orden Deane, Vice Chair
5renda VanSickle, Assistant Secretar_y 5ob Ference, Assistant Secretar_y  Mike Costello, Assistant Secretar_y

Jul_y  1 ,, 201 8

Lake Ashton
Community Development District
5385 N. Nob Hill Road, Stmrise, Florida 33351 Phone: 954-721-8681 -Fax: 954-721-9202

July 6, 2018

Board of Supervisors Lake Ashton
Community Development District

Dear Board Members:
The regular meeting of the Board of Supervisors of the Lake Ashton Community Development District will be held on July 13, 2018 at 9:00 a.m. at the Lake Ashton Clubhouse Ballroom, 4141 Ashton Club Drive, Lake Wales, Florida 33859.

Roll Call and Pledge of Allegiance

Public Comments on Specific Items on the Agenda (speakers will fill out a card and submit it to the District Manager prior to beginning ofthe meeting)
Approval of the Minutes of the Lake Ashton CDD and Lake Ashton II CDD Joint Meeting held on May 11, 2018 and the Minutes of Lake Ashton CDD Meeting held on June 8, 2018

Engineer's Report

Unfinished Business
Consideration of Amendment to Contract with Community Watch Solutions
Consideration of Agreement with Vivonet for POS System
Discussion on Fiscal Year 2019 Budget
Discussion on Fiscal Year 2019 Capital Projects
Discussion of National Golf Foundation Report - will be provided under separate cover

New Business and Supervisors Requests
Acceptance of Audit for Fiscal Year Ending September 30, 2017
Discussion of Hurricane Prep Plan (requested by Supervisor Costello)
Discussion of Rules Chapter III (requested by Supervisor Pontious)

Monthly Reports
Attorney
Community Director
Monthly Report
Consideration of Quotes for Parking Lot Resurfacing/ Restriping- will be provided under separate cover
Consideration of Quotes for Bowling Alley Scoring System- will be provided under separate cover
Field Operations Manager - Monthly Report
CDD Manager - Discussion of Financial Disclosure Report from the Commission on Ethics - even1one has filed

Financial Reports
Approval of Check Run Summary
Combined Balance Sheet

Public Comments

Adjournment

MINUTES OF MEETING LAKE ASHTON
COMMUNITY DEVELOPMENT DISTRICT
and

LAKE ASHTON II
COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Lake Ashton Community Development District and Lake Ashton II Community Development District was held on Friday, May 11, 2018 at 11:30 a.m. at the Lake Ashton Health & Fitness Center, 6052 Pebble Beach Boulevard, Winter Haven, Florida 33884.

Present and constituting a quorum:

Carol Pontious Borden Deane Brenda VanSickle Bob Ference Mike Costello

Doug Robertson James Mecsics Stanley Williams Carla Wright Daniel Murphey

Also present:

Jillian Burns Darrin Mossing Andrew d'Adesky
Numerous residents

FIRST ORDER OF BUSINESS

Chairman  Vice Chairman
Assistant Secretary Assistant Secretary Assistant Secretary

Chairman  Vice Chairman
Assistant Secretary Assistant Secretary Assistant Secretary

District Manager District Manager District Counsel

Roll	Call	and	Pledge	of Allegiance

Ms. Burns called the roll and everyone recited the Pledge of Allegiance.

 	 	

May 11, 2018

SECOND ORDER

Lake Ashton CDD and Lake Ashton CDD II

BUSINESS	Audience Comments on Specific
Items on the Agenda (speakers willfill out a card and submit it to the District Manager prior to beginning ofthe meeting)
Mr. Robertson: I have one audience comment request form. Mr. Velebir?
Mr. Velebir: I am asserting my ability to speak later.
Mr. Robertson: Ok, thank you. In the West we have a slightly different format than in the East. If someone has a request to speak, they can speak at the beginning and if at some point, if they have done that because they wanted to speak something when we had a vote on that particular item, then they have another two minutes later on once the Board has had their conversation so they have a two minute opportunity to talk before we take a vote on something. That is the only difference. So Mr. Velebir said he wanted to speak at some point possibly on the golf course amenity policy.

THIRD ORDER OF BUSINESS	Discussion	on	Status	of	Golf
Course Negotiations (requested by Supervisor Mecsics)
Mr. Robertson: First subject is the Discussion on the Status of Golf Negotiations,
requested by Supervisor Mecsics.
Mr. Mecsics: I just asked that this be put on our joint agenda because it is a joint thing working as one community to approach this situation we have with the golf course. I know our two Chairpersons have been working diligently to come up with that and I believe there is some paperwork to go with that. At this point I am going to turn it over to both of them for their discussion on it.
Mr. Robertson: Thank you. I am going to go through some of my thoughts here to help people understand the various perspectives. Carol Pontious, Darrin, and I were tasked with getting information from the golf course. We have gone through a process. We had one formal meeting with Jim Lee about a month ago where we discussed pieces.
Ms. Burns: Supervisor Murphey has joined the meeting.
Mr. Robertson: All Board members are present. To try and put things in perspective so people understand when we went through all the pieces it is going to take

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May 11, 2018	Lake Ashton COD and Lake Ashton COD II

a while to get through all the pieces of it because it is pretty complicated and we don't know all the answers yet. Right now to put a boundary on what we are talking about is if we were to purchase a golf course the financial risk to the individual homeowners within the community at this point in time looks like it might be between nothing and
$20 a month, $250 a year is the limited exposure that we believe we would have if we purchased a golf course. I will get through all the pieces so when we talk about all the different things let's keep in mind that the current risk of buying a golf course from what we have seen is between no annual fees to maybe $250 a year to support golf course operations. That puts things in perspective because I have heard people say I am going to sell and leave this community, I don't want to have anything to do with a golf course. Understanding from what we can see, the total risk right now is about $250 a year if that at the top end. So then one of the things we looked at is what happens to this community if there are no golf courses. We made the analysis of we have all this greenspace in the community, which is currently mostly golf course, what do we do with the greenspace if there is no golfing. We still would have to maintain it in some format. We would still have to have a process of maintaining the bridges so we could turn this into a non-golfing community. Everybody can decide if they care or don't care about any change in their house values, but we got bids from our current company Yellowstone and we put them together. If there is no golf course to support our greenspace maintenance, the cost to live in this community would go up by $750 a year to maintain the greenspace. That is from official bids we have gotten. Obviously we are going to try and would have to try and get a better price if we could, but in the order of magnitude it is about $750 to run this community and maintain our greenspace. I don't think that is an option that I even want to consider from my perspective. Right now the golfers are paying 80 to 90% of the cost and they are doing it, while they don't like the fees necessarily, they are paying 80 to 90% of the cost to run the golf course and have the greenspace for all of us. If we were to change that then we would have no golf course and we would have that expense anyway, so keep that in perspective. I looked at the choice of this again, $250 a year. That's from using let's say 1,650 homes, which is approximately the number, we could generate only
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if we were to take that money and put that as a supplement to how we operate our golf course. I talked to Mr. Maxwell and said if we were to generate that kind of income to support the golf course operation your golf course would not be losing any money, you would not be wanting to sell it. You would want to continue in operation because there are lots of people who said that he wants to stay because of the lots and wants to stay for other reasons. His answer came back very clear. That is a very generous offer. Not that it was an offer because I am not authorized to do that. It was a conversation of what would happen if we could make you this offer. He said that is a very generous offer. The golf course would be profitable but the answer is no, I don't want to run a golf course anymore. I am 73 years old, I have my grandchildren to play with, and I want to do other things. I don't want to be running Lake Ashton's golf course. I am saying but I could give you an opportunity to run this thing where you can actually generate profit rather than generating a loss. He said I understand that thank you very much, but I don't want to run a golf course anymore. That kind of set me back a little bit. I thought we had an opportunity to say let us buy the land so that no one else could come in and try and develop. We could own the land so that we could then protect our community and then you run the golf course for us because I know a lot of people including myself don't want to run a golf course. So would you consider running the golf course for us? His answer was no, I don't want to do that. So I said alright, we are done. I don't have anything else to say.  I do not know how to do anything else but say I am going to walk away.  There is nothing else to offer. This week when I finished playing golf on Tuesday, Jim Lee was in the Eagle's Nest and he said one more thing, we have now gone through our process and we have found a marketing company that will market these golf courses for us. Because it is a golf course that is not earning any money there is two ways to sell a golf course based on multiples of earnings, or if the golf course is not making money and everybody has heard there is lots of golf courses in the country that aren't making money but there is a whole professional business that revolves around that. They sell golf courses as a percentage of gross revenue. So they say 90% of the gross revenue is a reasonable number to sell the golf course because there is still revenue. There are still
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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

opportunities to try and figure out how to work it better. They have already selected the company. They will put this golf course on the market through their marketing company for around $1,800,000. That was the number that was given to me. They will sign that contract in about 45 to 60 days. Like for us we have asked for data. They haven't given us all the data yet. A lot of it is done by Jim Lee, who is an accountant, and he has been busy with tax season. Up until the end of tax season Carol and I only got a couple of pieces of paper from him. He is now saying alright, I will continue to get all this data for you and give it to you but if you can't see your way clear to at least starting negotiations with us, the window closes for us when I put it for sale through this marketing company. That should take 45 to 60 days. That leaves us a window of opportunity to look at whether we want to pursue the opportunity of buying it. The difference between our owning it versus somebody owning it is if somebody else owns it here are things that happen; they continue to pay all the taxes on the land which we would avoid. If they pay in the order of $1,800,000 for the property there is reasonable expectation that they want to generate income off of that and so if we took a number say 10% of just the sales price that is $180,000 that they would hope to siphon out of the community in terms of gross margin to repay their investment.   So they need $180,000 and they also need  about
$150,000 to $200,000 to pay for the taxes that we wouldn't have to pay. So from a standing start between the two sides their expenses are about $400,000 more than ours I am told that somebody is going to buy in that order of magnitude. The marketing company said it takes about 350 days right now. That is the average time it takes to sell a golf course. So that is one offer. We can just say no thank you, pass, and he will go off and sell the golf course. It will take maybe a year to sell the golf course, and he will sell it for some price between $1,500,000 and $2,000,000 depending on what types of bids he gets. That is a professional expectation from the company in Tampa that he is dealing with. I didn't collect the name of the company. He told me the name of the company but it was irrelevant for our conversation at this point in time. Now the third option is what he said to us was I'll still come back and said, I still will offer you which is different from the first thing.   I would agree with you that I would sell the golf course, the Eagle's Nest, all the
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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

machinery and everything for $470,000. If you recall if you were in the last meeting I netted that with these costs and he said I am going to get all the revenue from the other courses, I want $3,000,000 for my golf course. I immediately subtracted all those things I am not paying for that. I netted that out. So he came back and said $470,000 is a reasonable number that I would accept. I will also give you a long term lease on the building which is where the maintenance shed is where we do the maintenance. Without owning or having access to that maintenance is hard to run the golf course. He would include that. Once this whole place is built out he will change that building into self­ storage which he will rent to people who choose to use it. The part that is currently used for golf course maintenance would be leased to us at no charge or included in the price. So basically he said I will give you the land for nothing if you pay me $470,000 for the Eagle's Nest building and all the machinery I have, or I will go and sell it to somebody else at a higher price and once I sign the contract with another company my offer to you is off the table because I have a contract with another company. Just like when we sell our houses, if you find the buyer on your own once you sign the contract you still have to pay the real estate fees and everything else. Not trying to do anything nefarious, but in about 45 days to 60 days I will have all my documentation to give to this other company and I will sign a contract. If on the other hand you want to work with us I will still honor this lower price and I will work with you. I will give you all the same details that I would give the other company I will give you. I will give you all those details back to you so you can do your evaluation as well. That is what he told me on Tuesday. There was no formal meeting. He caught me basically in the hallway. He took me off from my buddies when everybody was having a beer. I wasn't. I have kidney stones. That is how he got a hold of me. I share this information with the community. So the way my perspective in looking at it, he considered $250,000 a year more than enough to augment his golf course operations to make it successful. More than enough. If we were to do the same thing with an outside company or if we were to open it up and try and solicit outside memberships from Traditions and other places, legally we have an obligation that anybody in the public can come in and sign a contract with either CDD and become a member of Lake
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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

Ashton. It is required by public law. Though we live here and we don't pay that fee there is a fee to be paid so that you can become a member of Lake Ashton. There is a public component to our community. If we are to go and try and get 50 new members from the outside we could make up the difference. We could have the money with  added numbers. We could have enough money to not increase anybody's fees at all. As it gets built out we also have the opportunity for more members to come in. In my head I am trying to figure out what is fair for the whole community. If the whole community chipped in to pay the initial down payment or the initial price for the thing, then I would expect the golf course operations to reimburse the two CDDs for all the money that we would spend to buy the golf course. I would then expect them to set a goal of creating a goal of $100,000 reserves. I have many people in my conversations, I have had open meetings in the public where people were worried to set a reserve in case a golf course green goes bad orsomethinghappens or some catastrophic event comes in the golf course I don't want you coming back to the CDD asking for money, create your own reserve to handle that and do that from your dues that you are collecting. Once that is accomplished, the CDDs are paid, there is $100,000 in reserves, and then why don't you reduce your dues and look at other ways to generate revenue. There are a lot of people who go out of this community. I am told that there is one list that is 120 that leave this community to go somewhere else to play golf because they think it is too expensive to play here. We have an opportunity to change our fee structure to try and encourage our own members to come back and play here. I don't think like anything else we are not trying to earn money off the golf course, we would just like it to be an amenity that is available to as many people as possible. So if we could reduce the fees because we have better participation in general that would be better for our community. That is how I looked at the three options at this point in time. So we can say we are not interested, please go ahead and sign your marketing agreement and we will take the risk downstream. We will take the risk of what some new company will do. They may make money which would be nice for them or they may lose some money.   I don't know the answer to that.  I can't forecast that. The other option is for us to take that opportunity. We would then
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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

control our own destiny. We would own our own land basically for no dollars we could own the land. If we own the land that prevents anybody else from trying to come in, rezoning it, redeveloping it or doing any crazy other things that people have talked about. We have talked about the opportunity for someone to rezone this is minuscule. I have said that people in the community and I have had counter arguments coming back to me saying if someone really wanted to come in and build condo's by the lake they could take the golf course. It is wide enough to build a condo and build their own retention pond. I think that is kind of crazy, but that is some of the arguments. We don't have any of those problems if we own the land, there is no risk of rezoning, there is no risk of anything else. Our risk is how well could we utilize and maintain the greenspace that we already own. Right now the best way to do that is through two golf courses. The golfers enjoy that amenity and they will pay the lion's share if not 100% of the cost of running the golf course. So from my perspective if we were to go forward, all I would want from this joint meeting is the Board to look at it and say tell us and decide if you want me or somebody else to continue doing the negotiation. That is one issue. The second issue, do we just say no thank you, go sell it to somebody else, or do we say yes, we are interested. We certainly don't have enough information yet and how do we then go and try to collect that information going forward. I am not asking for a decision to buy the golf course at this point in time. We don't know enough details. We don't have a clue what all the numbers are. I do know that there is a commitment now to assemble all those numbers so that an outside corporation could then market it. I have a commitment from them to give us that same information. So what we need from the Board is a direction to say we don't want to do this anymore, let's just let an outside company come in and buy it. We will live with the consequences, or do we want to pursue the opportunity to buy it at a significantly different price then what someone else would get it at. Those are our choices. If an outside vendor buys it and is successful then we are fine, the golf course continues to operate. We all have enjoyed maintaining our property values and the people that want to play golf. They will pay the added costs of having to run a course with higher costs than we have. If we decide to do it, we end up reducing some of the risk. We can't reduce
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all the risks but that land is in our community. Whether we like it or not, that land is in our community and somehow it has to be maintained. So we could give somebody on the outside, they could try and get $400,000 in income to pay the taxes and pay the return on their investment, or we could risk the same $400,000 that we wouldn't have to spend to supplement the golf course. To me I would continue to try and negotiate with them and work out all the details. That would be my preferred course of action. It doesn't mean by saying that we would are committed to buy it. We just say yes, we are interested and we will go through the due diligence process. We would have to come up with all the dates and all the information as other Board members have said, what the salaries were and all the information. All that stuff has to come. The question is whether we want to do that or do we just want to let them go off and sell the golf course to somebody else. I came to the conclusion that he was serious when I made the suggestion that we could pay him $400,000 a year to support the golf course operations. He acknowledged that was more than enough money and he said very nice deal, but I am leaving. That surprised me. I thought we might have makings of a deal that had some less risk for us, but he said no thank you. He really wants to be done with golf operations. So there is no motion on the Board. That is my report from what I have learned. Carol went to the first formal meeting we had. There is more data that is in this thing that talks about that. I guess we throw it out to discussion of how we want to go from here.
Mr. Deane: I think the benefit for us to own the golf course is there, but until we have the information to do it, I am for telling Mr. Lee or Mr. Maxwell orwhoever it is that we are interested, I agree with that. We are interested, but we need all the information before any decision of any sort can be made.
Mr. Robertson: We have already made that commitment to the community before. We said we would hold public meetings with the community to explain everything.  This is just an example. We would have open public meetings about what are our costs, what are our circumstances and do all that and solicit feedback from the community at large before we took a vote. You could put a motion on the floor to say let's buy it and I would vote against it because that would violate what we have already set up with the
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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

community. We have told the community you need to know, you need to know the risks, you need to know all the pieces and so we are that point where he is saying if you are interested, I would like to go further and if you are not interested I am pursuing another path. It doesn't mean that we have to even buy it at the end of the process, we are just saying we are willing to invest our time to see if that a viable solution.
Ms. VanSickle: I think one of the things we were going to talk about today is the consultant, most importantly obtaining a consultant to get us that information. I think we also made a promise to the community that they were going to get a chance to weigh in on it. So I want us to be very cautious.
Mr. Costello: I agree that until we have a study done it is pretty hard to go forward with the decision. When you enter in a contract for a house you have somebody come in and do a home appraisal on it and everything else. I am not saying that I want to walk away from it, but by the same token I don't want to run into it. I want to go into it with a lot more knowledge then we have right now. I think like you said we want the input of the community also because they are the ones that are either going to benefit or suffer for it. I think that to give him any kind of a commitment other than we would like time to look into it I think would be wrong.
Mr. Robertson: Do we just walk away from it or continue the discussion? That is where we are. If they continue to do all these things we will have a good result.
Mr. Ference: There is no doubt about that. I ditto what everyone has said. We are going to ask for input and support from the community, but we are not going to send out a questionnaire out to every household and the majority wins. That is not the way you get input for any amenity in our community. Input is important but majority does not win. The majority of the people don't belong to the golf course. The responsibility is ours. That does not say that we do not encourage input because of other ideas, possibilities, etc. etc., but let's not forget we are in charge of making the decision not the majority of the members. It is not a popularity contest. So while we encourage input, we have to be mindful of the fact that we are not sending a questionnaire and the majority wins. We do or we do not, but the majority wants or does not want. Are we clear on that?
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Mr. Costello: I am not saying every negotiation should be done by a referendum but I think the major part of our job here is to listen to what the people are saying. I think that we do have to find out what they are saying. Maybe I am wrong.
Mr. Mecsics: Mike, I agree with you. We made a commitment to this community when this first started going that we were going to listen and take in their advice and their feelings. I agree with you Bob that yes ultimately it is our decision but each and every one of these people out here voted for us to do the right thing. I think we owe it and are duty bound to give them that information.
Ms. VanSickle: I think it is very important because this could go either way. It could be a big risk, or you could be looking at quite an assessment to support this or as you are saying hopeful that it might cover itself but we don't know. There is a fear of the unknown so I think we have to listen to ourpeople because they are ones paying for this.
Mr. Murphey: I think Brenda also mentioned about hiring the outside consultant to do a feasibility study. Are we still considering doing that? If we are would they be able to get us in this 45 day period?
Mr. Mecsics: I would like since we are discussing it and we're going to talk specifically about that because that is a crux of information that we need, I am not an expert in golf courses and if you saw my golf scores you would know that I am not an expert with golf. However, we need some experts to come in here and we talked about this as a joint meeting then maybe we need to have a motion for that to go forward with getting a consultant that will come, allocate or authorize the funding for that, then give them some parameters. They are going to be our contractors. We don't work for them they work for us. We give them a parameter of when we need it back and then we go forth with that. If you need a motion I will make that motion.
Mr. Robertson: Not yet. I think if we were to indicate that we are interested in continuing this process and that 45 day would expire. He would be willing to work with us. You will still do the same work over the next 45 days to get the information from an outside bidder. He has already agreed to give the same information to us. So if we were to say we were interested we would have I think more than 45 days because as we said
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we have more things to do. If they were to give it to an outside person it still takes a year to sell the golf course so there is some time of a window in there. If we say no right now, in 45 days it goes for sale. If we say yes we are interested I think the deadline goes away. Mr. Deane: I would like to make a motion that you tell Mr. Maxwell that we are interested in the golf courses. I believe that alleviates the time limits. Then we can do our due diligence and get the studies and the figures and everything else that we need to
make a decision.  I make that motion.
Mr. Mecsics: I second.
Mr. Robertson: There is definitely more discussion. Did you want to add in that motion that because we have already done the homework, Carol and Darrin, too, have the National Golf Association, have they given us a quote? Do we want to include the expenditure of those funds by separate motion?
Mr. Deane:  Separate motion.
Mr. Robertson: Ok, we will leave that as a separate motion. Ok then is there any further discussion?
Mr.  Williams:    So  far  I  agree  with  everything.    The  45  to  60  days  that  was mentioned if we indicate that we want to go forward you said you yield, if we don't come to a decision within the 45 to 60 days will he pass that then onto the marketing company?
Mr. Robertson: Yes.
Mr. Williams: I don't know if it is possible, as you said it is probably another year before a sale would actually happen, I had a real estate license in a prior life in another state. I don't know what Florida state laws are, but I know that in some commercial real estate transactions we were able to put clauses in there that said he has a buyer at a given price and that no fees would be paid by that buyer or him if in fact it sold to that buyer. Something to that effect. Maybe Andrew can clarify that for me, I don't know, but we have had those kinds of clauses in those real estate deals. I would suggest that if we talk to him at the same time if Florida law allows that kind of thing that we put some kind of clause in there. That would be to me, would give us more time to evaluate and look at what is going on. It might be another way.
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Ms. Pontious:  Sounds similar to a right of first refusal.
Mr. d'Adesky: That is permissible under Florida law. If he is willing to give us a right of first refusal that is on his end. Also a standard thing in purchasing the sale of commercial versus the sale is the due diligence period. There is usually in most big deals I have worked on for example for Universat there is a 90 day, sometimes even more of a due diligence period to investigate the deal and title and feedback information on that so that is also standard.
Ms. Pontious: I am somewhat offended by the 45 day thing. We have been trying to work with him for months now to get information to be able to assemble the facts and figures and he is the one that has been withholding the information. Been busy, I get that but it has been on his side not ours that the lack of cooperation has been there. So I think he needs to back away from 45 days and if we are interested we need whatever time we need to get it worked out and if that expires then when we decide we are no longer interested in when he takes the ball from there.
Mr. Robertson: I understand that. I think we are misinterpreting the 45 days. It seems as though I wrote that into this documentation, my fault for not being accurate in what I am saying. He has said that is how long it is going to take for him to write a contract with an outside company. That doesn't mean that we have 45 days and that is it. Once he sends a contract then it is a done deal at that point, but if we express interest in doing something else I think that the window would definitely open. It is not a hard 45 days, more of a, that is what it is going to take to close this other deat but if you are working with me on this deal I think that number instantly goes away. That is what he needs to make a deal with another company not with us. Now back to what Stan said we could tell him that we want to, in process with the other company that he has one bidder that is already available that the fees would be paid and I think that we could negotiate something like that. I did ask him in the same process, a term that is called a stocking horse, where you try and find the bidder on the outside to give you a price then you go underneath that.  He said that he was not going to do anything like that.  What I think is if we express interest he would work with us. He would give us the documentation
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information and that could take a lot more than 45 days to go through up until the time that we are satisfied that we have done our part. We can't just string him along for a year to see what happens. He would give us time to go through our proper analysis.
Mr. Costello: Can I ask one question? Precisely what is included in the price of the $470,000?
Mr. Robertson: From my understanding and again we have to go through the pieces. Included in the price of $470,000 would be the Eagle's Nest, all the mowing machinery and equipment, all the golf course property, and a long term lease. He said 99 but that was Jim Lee just throwing it off the top of his head. He said a 99 year lease that is typical in some businesses. To take the piece of the maintenance building right now, there is the developer's offices and other things, there is a wood shop. No discussion of the woodshop at this point but the piece of that building that is used to maintain the golf course he would include that. He would not sell it to us because that is part of a different parcel of land but he would give us a long term lease on that so that we could then maintain the golf course. So you could partition off, people know over there that there is a gate that is kept locked right now right at the end of the building, they could make their access to the golf course through that gate as opposed to the other way. So if someone
owns the land in the other direction and they are doing something else we would still
!    I

: !

have  access  to the golf course through a different gate.   He has already thought those	'  I
things through for us.	i Mr. Williams: Other than the $470,000 there would be no additional yearly fees for
the maintenance?
Mr. Robertson: Correct.

Mr. Williams: Going back to the clause that I was talking about, even if we procrastinate and he decides in 60 days he is going to go, the clause goes with what he enters into that agreement so we wouldn't pay any fees. As far as I am concerned, there are other things in this document that I have concerns about or don't necessarily agree with, but until we have the other information there is no reason to go into all of this. There is no reason to discuss the document. It is just one person's thoughts.

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Mr. Costello: The one thing I am trying to determine here is exactly what in the beginning, I was under the impression that it was going to include the sales office. What happened with that?
Mr. Robertson: I am sorry you got that wrong. Mr. Costello: I may have, I make mistakes.

Mr. Robertson: Me, too. He put a different sales price on the sales office and on the RV storage. There was a separate price for each one of those entities. At our last Board meeting, we agreed that we could not buy the sales business because the resale business is a business. We shouldn't be in commercial business as a CDD. That brings me to one thing that helps, I have been told and I believe it to be true, that if you buy a resale house with their office they offer one year free golf membership. That is an opportunity because they are going to continue to run that business. If we said ok just for argument sake, say we agree to the $470,000, but we say you know what, why don't we donate a portion of that in reserve and then as you sell houses you deduct. We will allow to add one more member to our golf course because it won't cost us anything to have an extra golf cart on the golf course, but we can compensate you by your free golf memberships as a way of us not giving you cash. So he still has that marketing opportunity which he likes to win the sales contracts. So there is a way of generating some revenue for us that way, as well.
Mr. Costello: Andrew, as our attorney, what is your legal opinion on this?
Mr. d'Adesky: You did include this speculated information in the report, which is very important and a pertinent factor. However, the x-factor is the bond debt in the O&M allocation. So if you have currently between two CDD's $500,000 in par debt which is remaining debt which would need to be settled or reallocated. In addition you have
$50,000 in O&M debt, which would need to be reallocated and once again could be reallocated amongst commercial parcels or perhaps reallocated amongst the community at large which would involve an assessment increase.
Mr. Robertson: We are pretty stingy on how we spend money and Andrew has agreed that he doesn't want to spend any billable hours working on this unless it is a real thing. There are lots of questions that Andrew and I have and Carol have, but we are not
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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

spending our money to have him research them unless we see that there is a reasonable thing going forward.  That is why all of those questions aren't answered.  We know that they are there, but they are waiting for the appropriate time to work on them.

Mr. d'Adesky: Until we have a deal and a structure, it is really not productive for me to go to research and say is this permissible, is this not permissible because let's say we were issuing additional debt or taking out a note that may or may not be permissible under certain indenture requirements of Lake Ashton or Lake Ashton IL We would have to investigate that but because we are fiscally responsible, we haven't done any of that work yet for either CDD.
Mr. Robertson: In the initial information that was given to us the very first meeting, there was an indication that if we wanted to go forward there was some flexibility on how this thing gets paid for.  Why is he offering us a better deal than the outside?  Well everybody has different opinions about him but I think that this is one of his major projects and he would rather look at it as being a success rather than a failure.  He doesn't need all the money. He is one of those people that doesn't care how much money he has in one sense. He would rather leave a community that was successful and he can say, look at how beautiful it is. It is still that way even after I left the premises. I can't tell you how much, but there is some amount of that he is willing to let us to take over the golf course and make this a long going successful community without his involvement.
Mr. Williams: Can we clarify the motion and give him a chance to speak?
Mr.  Robertson: The motion that we recommunicated with Mr. Maxwell, saying that we are interested in pursuing the idea of buying the golf course. We want all the due diligence information would be due to us to come to that and then a further commitment that we would all share that information with the community through public meetings before we make any formal decision. Is that fair?
Mr. Williams: And that was already seconded right?
Mr. Robertson:  That was already seconded.  I haven't heard from Ms. Wright yet. Ms. Wright: I thought we were already at that point a long time ago.

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Mr. Robertson: Ok, so Carla is ok. As a joint meeting we vote as separate Boards, two votes, same motion.  Before we vote, we have to give Mr. Velebir a chance to talk.
Mr. Velebir: First of all, I think your Option 3 is terrific.  Turns things around and to buy the golf course for virtually nothing is a good deal. As you said we are stuck with this big chunk of land one way or the other. It is going to cost us money and the golf course seems to be the best way. I think most people are not concerned about the purchase assuming you are going to take that out of reserves.
Mr. Robertson: That is one possibility yes.
Mr. Velebir: It has always been an ongoing maintenance.   When you originally, when we were talking about this you were saying that the current agreement that the golf course has with the developer, I guess is that for every new home that is sold he gives the golf course $9,250, which includes that one year golf membership, so what I wanted to know is in this deal what happens to that $9,250 and are we still going to be obligated to provide a free year of golf?  Thank you.
Mr. Robertson: Correct, good question. He would keep the reason we would get it for that price is that he would keep all those dollars going forward. The $9,250 between the developer is not forever, that is just for the new house sales. Once they are sold that money goes away. For us as an entity if we own it having new members play for a year to see if they want to continue to play golf here is probably a good thing. It wouldn't cost us anything from a cash flow point-of-view. It is how it has worked always. That is how we get the price down from $3,000,000 down to $470,000. I will recognize you because you didn't know our rules, so please. You have two minutes.
Mr. Scali:  Tom Scali, Dunmore Drive.  Do we know what the current maintenance expenses are with the current developer? For the golf course?
Mr. Robertson: Yes, pretty much.
Mr. Scali:    One of the concerns seems to be that you didn't want to run it.  Is it possible that the CDD purchases the land and the people who are employed there want to continue to work here? Why not as a plan, let them continue to run it, just know what the costs are and go forward from there?
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Mr. Robertson: Absolutely. That is clearly one our options. It is a complicated conversation. IMG is in here right now, International Golf Management. They do the maintenance. Their current contract is about $100,000 a month to do their part of the deal. That is a piece right now. That goes up or down depending on what is going on. That doesn't prevent us from going continuing with IMG.  We could go to Bill DeCasper Golf. We could go to other golf course operators and operate with them. That is still an option that we would have. We could use that as part of our due diligence to see where we wanted to go. None of those things are off the table. To me this issue is if we can end up owning the land and then that takes all the bad side risks away from us. Then as a community we try and figure out what is the best way to generate income from that land that keeps all of our maintenance fees down. Opening it up to more members on the outside, things like that, and reducing the membership dues to get more volume. We know that there is certainly more room on the golf course. Those are all things that we could do to make it nicer for people so that they wouldn't have to leave the community to play golf. They could play right here. We could have daily fees and stuff like that. The people who are avid golfers, they make their reservations a head of time and the people who are just walk-in golfers, they just come on the slots that are available on a daily basis. There are many ways to get maximum use of the golf course and for us to generate income so that it doesn't become any form of a burden on the entire community.
A resident:  Do we know what his annual revenue is because in here we say that if a golf course is not making money, the normal sale is 90 % of the annual?
Mr. Robertson: Correct.
A resident: How could we even be thinking about buying something unless we know the cost of what the money is bringing in? Anytime you go buy a commercial piece of real estate they know. I feel that this company that told him the golf course could sell for $1,800,000, they have to know what his income is before they even come up with that. So right now they are on a better footing then we are. I don't believe the figures you have here are near correct. I can support it, but we need to know what his annual income is.

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Mr. Robertson: I agree. There is an estimate that they gave to them that had the same kind of conversation that they have had with us. That is just the ball park. That is what the 45 days for them is to give them all that data that they are also going to give us.
A resident: So I estimate my house is worth $500,000 and I know well that it is not
worth $500,000. Until we get that figure we can tell him yes, we are interested but we want to have the facts in front of us.
Mr. Robertson: Thank you. The way we get that figure is to say yes we are going to continue to negotiate but no one in this room wants us to buy the golf course today based on the facts we have. Not a single soul in this room. Does anybody want to buy the golf course today with the facts that we know? Great, we got not a single hand up that wants to do that. We want to get the data and we want to not let this opportunity pass by if it is a good opportunity.  If it turns out to be a sour deal that won't work for us then we just take the chance of him selling it to somebody else and wish for the best.
Ms. Pontious:  I think where he is getting these numbers is just round figures.  This is not accurate. If you have 400 members and they are paying approximately $5,000 a year that generates $2,000,000. Now you have $100,000 plus in just IMG fees, so you take that
$1,200,000 right there which gives us $800,000 left.  Now we have to pay salaries.  Is that included in the IMG contract? We have to pay maintenance on the Eagle's Nest. We have to pay ponds, we have to pay bridges, and we have to pay expenses of operations, water, sewer, electric and all those things. There are just so many unanswered questions that you don't know if they are included in there or anywhere.
Mr. Mecsics: I think that is why we have a motion on the table. We need a motion from Mr. Deane who has put in that we do this and then we can take another motion as far as who we want to study for that. But let's get this thing going.
Mr. Costello:   One of the things that you told me, Doug, was that us buying the golf course as a government entity we don't pay taxes on it. Now due to the fact that we are collecting money and dues, does this become taxable at that point?
Mr. Robertson: I don't believe so.  Andrew agrees with me.

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Mr. d' Adesky: No, once again, the CDD can't collect O&M on our own property.
That is not a factor.
Mr. Ference:   We talked about needing more information.  Can we move on and make a motion? Let's move on get the information.
Mr. Robertson: CDD II, all those in favor of pursuing the motion as stated?

On MOTION by Mr. Deane seconded by Mr. Mecsics with all in favor the Lake Ashton II CDD Board authorized continuing to obtain information with Mr. Maxwell to purchase the golf course.

l
Ms. Pontious:  And those in favor of continuing to pursue as getting information

I

only for CDD I?

On MOTION by Mr. Deane seconded by Mr. Mecsics with all in favor the Lake Ashton CDD Board authorized continuing to obtain information with Mr. Maxwell to purchase the golf course.

Mr. Robertson: Ok, so I guess the next item would be to look at the contract.
Ms. Burns:  Everybody should have a copy in front of them handed out to all the Supervisors. If you look on page 5 there is a breakdown of the fees. The total cost for all the expenses is $30,000. It would come out to $15,000 per District. There are task orders I have listed on here as optional. If we did want to pursue those the total cost would be

$16,000 or $8,000 per District. You can see the breakdown. We were discussing earlier the timing of this report and how long it would take. What they have listed here is about 60 days. They handed in their proposal in March. It was authorized April 2nd. They have to report to us by June 1st and 60 days is about their timeline to complete this report.

Mr. d' Adesky:  Just an antidote, we had a golf course in another community and it was $35,000 so this is a comparable rate.
Mr. Robertson:  So then we have a motion for each Board to split the cost of $30,000 to undertake a study by NGF to help us in our evaluation of this purchase.
Mr. Mecsics:  Mr. Chairman, I make a motion that we undertake the study with NGF to split the cost and get all the information so that we can make a fact based decision.
Mr. Ference: I second that motion.

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Mr. Robertson: We have a motion. I don't know if there is any more discussion that we need to have on this.
Ms. Pontious: On the closed golf course real estate value impact, I am wondering if the O'Reilys out of the kindness of their hearts didn't give us enough information that we could eliminate that $4,000 and do the first review and the second comprehensive physical review which is going to tell us I am sure what happens in the other part.
Mr. Mossing: I believe that you could lower that fee by that amount because there was a very comprehensive report behind it. It really did spell out that if the golf course closes, the results are going to negatively impact property values.
Mr. Robertson: So that is an option that we could take out so we can work out. The only other thing is, is the Board willing to have Carol and I and Darrin continue in this process to be the point people are involved. Do we wish to change it around at all? I don't see anything on that so you don't need a motion on that. Before we spend the money to execute the contract I would suggest that we contact Mr. Maxwell and tell him this is what we want to do so that he will give us time to do this evaluation. I don't want to spend the money unless he is cooperating. I am assuming he will, but I just want to make sure that is clear. We will not spend this money unless we get an agreement from Mr. Maxwell that this is appropriate. If he says no that tells us something too.
Mr. Deane: Can we get this agreement in writing? Mr. Robertson: Yes.
Ms. VanSickle: I'd never agree to anything that wasn't in writing.
Mr. Robertson: This whole process of this information that we have that I shared today I made sure that I communicated to Mr. Lee based on what he gave me. I won't even present this unless you give me an email back verifying that is what you believe. We are writing all of this down to written communication so that it can't be confused.
Mr. d'Adesky: Supervisor Ference and Supervisor Mecsics, do you agree to the revised motion?
Mr. Mecsics: Yes, I do.
Mr. Robertson: Ok, Lake Ashton IL All those in favor?

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On MOTION by Mr. Mecsics seconded by Mr. Ference with all in favor proposal from National Golf Foundation for an acquisition feasibility study was approved by the Lake Ashton II CDD Board.

Mr.  Robertson:  Everyone is in favor.  Carol? Ms. Pontious: Lake Ashton I, those in favor?
On MOTION by Mr.  Mecsics  seconded by Mr. Ference with all in favor proposal from National Golf Foundation for an acquisition feasibility study was approved by the Lake Ashton CDD Board.
: :

FOURTH ORDER OF BUSINESS	Discussion	of
Amenities	Policy
Supervisor Robertson)

Common
(requested	by

Mr. Robertson: I have a discussion of our common amenity policy. We have two amenity policies that are fairly close and we have always said that we are trying to operate as one community. I will take the opportunity now to add a little extra seriousness. If you notice the difference in how Mr. Mecsics is dressing and how I am dressing he is running for re-election folks. I am not, but I am wearing my t-shirt that we are one. West and East are one community. I would like to suggest that we create a committee that works out our amenity policies. We have a joint amenity p olicy. There is some things that are exclusive to either side, but that can be an addendum that says these are all the common things so everybody reads one amenity policy. If there is something that applies just to the East it is in Addendum 1 and if it is just the West, it is Addendum
2. That way we again are telling the community, one amenity policy, one community, so I would like to do that if I can get support from the two Boards.
Mr. Mecsics: Cooperativeness and working as one community, I think we appoint a member from each one of our Boards to sit down. You don't have to worry about the Sunshine laws and then work with the amenity p olicies with the two community directors and come up with one community amenity policy for both Boards that we agree on then work out whatever. One of the things that you would have to talk about is we

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have to define what a guest is for this community because there is some concern about folks that do not have a buy in or are not a resident or a renter and we need to define what truly a guest is so we don't run into any problems. I will make a motion that we appoint from each one of our Boards to discuss this, work with the community directors and then come up with a draft common amenity policy for the Board's consideration.
Mr. Costello: Second it.
Mr. d'Adesky: Do you want to make that designation as part of the motion?
Mr. Robertson: Sure let's do the vote and then we can assign someone to do it.
You want it in the motion?
Mr. d'Adesky: It makes it easier if it is part of the motion.
Mr. Robertson: Do we have a volunteer from CDD II to work on the amenity policy? Mr. Williams:  Let's everybody look down this way.
Mr. Mecsics:  Congratulations.  You noticed he wasn't looking at me. Mr. Robertson: Mr. Williams has graciously offered.
Ms. Pontious: Do we have an offer from the East side? Mr. Costello: Sure why not.
Ms. Pontious: Ok, Mike has volunteered to do it as well.

Mr. Robertson: Ok so we now have our two Board members.  On CDD II, all those in favor of the motion?

On MOTION by Mr. Mecsics seconded by Mr. Costello with all in favor Lake Ashton II CDD designated Mr. Stan Williams from Lake Ashton II CDD to meet with the
community directors from both CDDs to discuss a common amenity policy for both CDDs .

Ms. Pontious: On the East all those in favor?

On MOTION by Mr. Mecsics seconded by Mr. Costello with all in favor Lake Ashton CDD designated Mr.  Stan Williams from Lake Ashton II CDD to meet with the community directors from both CDDs to discuss a common amenity policy for both CDDs.

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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II Mr. Robertson:  Thank you very much.
FIFTH ORDER OF BUSINESS	Discussion on Amenity Policies
and Definition of What a Guest is and Propriety of Recurring Guests (requested by Supervisor Mecsics)
Mr. Robertson: Discussion of Amenity Policy and Definition of what is a guest.
Mr. Mecsics:  I think we covered that.
Mr. Robertson: That is going to be includedas part of the discussion between Stan, Mike, Mary, and Christine.  So Mr. Mecsics is happy with that.

SIXTH ORDER OF BUSINESS	Consideration of Joint Resident
Feedback Survey
Mr. Robertson: Consideration of a joint resident feedback survey. Mr. Williams: Wouldn't that be part of that?
Ms. Pontious: I don't think it is exactly.  One is the amenity policy, that is a separate issue. We also do a feedback survey. In the past it has been done by the East, a separate survey then the one done by the West. As we were talking about doing ours a month or so ago we said let's wait until the joint meeting and see if we can come up with a plan to do one so that we knew who thought what, when and where all in one place. So I think that is who would like to work on the feedback survey, or maybe Christine and Mary can merge them with the best questions that you feel is appropriate. If you want help from us we are happy to help.
Mr. Deane: I make a motion that the two community directors get together to build a feedback survey for one community.
Mr. Mecsics: If I may, Borden, can we amend that so with your approval to give that a specific time period of once we send it out they have let's say 90 days to get that thing together and back out to the community so we are not going 6 to 9 months?
Mr. Deane: That is fine, 90 days. Mr. Mecsics:  Then I second.
Mr. Robertson: Any further discussion?

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On MOTION by Mr. Deane seconded by Mr. Mecsics with all in favor Lake Ashton II CDD approved for Community Directors Christine Wells and Mary Bosman to put together a Joint Resident Feedback Survey with a 90 day turnaround timeframe after it has been sent out.

Ms. Pontious: CDD I joint feedback survey, all those in favor.

On MOTION by Mr. Deane seconded by Mr. Mecsics with all in favor Lake Ashton CDD approved for Community Directors Christine Wells and Mary Bosman to put together a Joint Resident Feedback Survey with a 90 day turnaround timeframe after it has been sent out.

Ms.  VanSickle:  Before  we  go  on,  we're  talking  about  amenity  policies  and everything else we discussed, a letter that was going to go out about clubs and groups. We have the letter that Christine did a very nice job on but we thought it might be more meaningful if it went out jointly. Your Board needs to decide if they want to agree with that. We are ready for it to go out.  We want it to go out.
Mr. Robertson:  They want a vote now.
Mr. Mecsics:  I think in fairness to Mary and our side, she should take a look at it. If she has no disagreement with it then I would recommend to our Board that we concur.
Mr. Robertson: I think it means that we just have a chance to understand it and if we have no objections we agree to do it.
Mr. d'Adesky: Yes, that is just staff direction, it doesn't need a motion. Mr. Robertson: We are certainly in favor of doing it together.
Ms. Pontious: I think at this point it needs to go out, so we would like to give you maybe to the next meeting to meet together and decide if you want to do it as a community wide event or whether we will just do it on our side.
Mr. Robertson: We can do it within 30 days. Ms. Pontious: Ok, sounds good.
Mr. Mecsics:  But it will be a joint one.

Ms. Pontious: Yes, it will come from the joint sides.

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SEVENTH ORDER OF BUSINESS	Discussion of Card Access for
Amenities
Mr. Robertson: Discussion of Card Access for Amenities. It doesn't say who put this on the agenda?
Mr. Mecsics: I will do it. Mike Costello and I were both designated at one of the meetings to take a look at this. We talked at great length at our own expense at Nini's Restaurant by the airport. Youhave to mix business with pleasure, looked at the facilities, the resources that we are protecting and I drew upon my experience in the security side of the house. There is a lot that goes into setting a full card access system. There is a lot of impacts both known and unknown. At this time we do not or at least Mike and I both said we don't see it as a viable aspect for this. However, with a company that I did work for at one time because they found how much it would cost as far as the infrastructure and then just the maintenance of it to come up with what we used to call a constable program. In that case people in the community would be considered to be constables and if they see some kind of infraction going on or someone that doesn't belong there they can bring that up. It gives a little more credibility as folks have a commitment taking care of their community.
Mr. Costello: I thinkthat what we both determined was that even with card access you can with codes, you could go with so many different things that quite honestly it is nothing for me to hand another person my card. They are going to be able to use the amenities.   The only way that you are truly going to get away with it, I remember when I was working in order to get in our communications center, we used to use fingerprint identification. It is just going to be an extremely expensive ordeal to even consider. You can go with that. You can go with face recognition. I think right now the best thing Jim and I came up with is we have to depend on the people that live in the community when they know that something is happening. When people are coming in using the amenities or attending different functions that they are not supposed to attend it is going to be up to them in order to help us help them. That is the way it goes. I don't think anybody wants to be part of being called a rat but by the same token you are spending your money

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in order to keep these amenities running. I don't see where somebody should come in and just use them for free.
Mr. Deane: I agree with that.  Have we thought about a gate access? A different gate access to come into the community because anybody can buy a clicker.
Mr. Costello: The problem being is the fact that these are considered public roads and anybody has access to this community.
Mr. Deane: They have to go through the gate. So the guard would have the information. We have lots of people that don't live here that have clickers to come in and out the resident gates.
Mr. Costello: That is going to be something that we are going to have to make some sort of a ruling where when the house is sold that we are assured that all of the gate passes are turned into the new owner.
Mr. Deane: They can't because I paid for it when I bought my house. You can't have it even when I sell my house because it is not sold with the house.
Mr. Costello: We will pay you whatever you paid for it.
Mr. Deane: People aren't going to do it. The sales personnel have them. They are not residents and never will be residents.
Mr. Costello: What do you suggest for the gate as far as being able to allow only residents in and keeping people who are prior residents out or other people?
Mr. Deane: They make a sticker that you put on your windshield. A bar code that you can eliminate when the house is sold.
Mr. d'Adesky: Just from a legal perspective, obviously they are public roads. We are obligated to have access through the visitor entrance but in terms of transponders your transponder policy clickers you can do whatever you want for that. We just had a District change their transponder policy, essentially issued new transponders.
Mr. Costello: The only thing there is the fact that they are going to come in through the gate, they are going to say I am visiting Joe Smith or going to the restaurant, whatever. They are going to do whatever they want to do once they get into the community. We can't follow each and every person. It is virtually impossible.
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Mr. Mecsics: Borden, why don't you let Mike and I sit down like we did with the access card and we will look at our system that we have right now and see if there are any changes of what we have right now. How is that?
Mr. Deane: That is fine.
Ms. Pontious: I think what we need is something that the office staff can eliminate people when they are notified that someone has moved. It is just going into the equipment and eliminating them so there is no option of having any device to get in once you go out.
Mr. Robertson: The other thing that we will do is, and I have lived in a place that they have a bar coder reader, is your car drives up to a certain point and your bar code gets read. They know that it is your car and it also prevents people from as we all understand you press the button about 100 feet away and drive like crazy to get through the gate. It prevents all the stuff. You have to come up and get your bar code read before the gate will come up. The will eliminate some of the safety issues.
Mr. Costello: Jim and I will be more than happy to look into it. Like I said I don't think it is going to elevate the problem totally. I think is it going to slow it down some but I don't think it is going to end it.
Mr. Williams: We have been talking about after hours and I was just curious what is our responsibility of our staffs on both sides as far as watching people who are in the fitness room or in the bowling alley or whatever? Is there any responsibility of the staff to go around and check occasionally? Is that part of their job description?
Mr. Deane: The security people do it at the pool all day long.
Mr. Mecsics: Stan's concern there and I think we discussed this, Mary and I even Christine and I a little bit, every staff member has a responsibility to make sure our amenities are being used by the right people, whether they are security or not. We just don't rely on security. If you do, you are making a mistake. He is exactly right on that. I think it is inherit. As we were saying before it is inherit on all of us if you see somebody in there that doesn't look like they are supposed to be here or you don't know them. You can either ask them or have someone else do it.
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Mr. Williams: So it is part of their job description. Mr. Mecsics: Yes.
Mr. Robertson: We also just so you know, there have been some individuals who have lived here who have moved out and they start trying to come back and use the facilities. We have become aware of those people and have their picture available so we make it clear to them that if they are not paying they just can't come in and do that. It doesn't prevent in certain cases where individually they can invite anybody. If you are sponsoring somebody for an event that is ok but they have to be properly sponsored. I know there is a basketball group that plays. One individual from the community here likes to play basketball more aggressively than us other 70 year olds, and he gets some people from the outside. He signs them in every single week and they sign the liability waiver so they can play basketball with him.
Mr. Mecsics: I think that is part, Stan for you and Mike, part of our amenity policy is what defines a guest and what defines a recurring guest. That will fall into his area.
Mr. Robertson: Ok, no motion required, but any action will be taken for the next Board meetings.
EIGHTH ORDER OF BUSINESS	Discussion of Community Security
Patrol (requested by Supervisor Mecsics)
Mr. Robertson: Mr. Mecsics, would you please have a discussion on our community security patrol?
Mr. Mecsics: I wrote these down so I get the facts right. A little over a year ago we both completed our security contracts and we picked different companies to provide security officer services. The way I am looking at this approach is one of an agnostic approach and does not involve the ethnicity of the selection of either company when that occurred. I was asked if we could have a shared patrol between two different companies. From my perspective with over 45 years in the security area, my opinion was it was needed for an efficient or effective from a commanding patrol and operational standpoint. I still feel that way but there is an opportunity for both of our CDDs to have one act as an executive agent for the community patrol and operate it with his company. Lake Ashton
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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

II currently has a 24 hour community security patrol versus the 18 hour  patrol car that Lake Ashton I has. I propose that Lake Ashton II CDD become the executive agent for that function. They supervise the community with one consistent approach to the security patrol as well as present a cost savings for both Districts. In the case of Lake Ashton I you will probably be about $30,000 and for Lake Ashton II about $60,000. If agreed to, accommodations could be made to absorb some of those security officers into the existing structure of the company. The actual oversight for the patrol operations would be a cooperative effortbetween our two community directors with an advisor function I would provide. Obviously a formal agreement would have to be drawnup among the operations strategy between the two CDDs. I recommend that Lake Ashton I CDD appoint a
Supervisor, possibly Supervisor Costello with his public safety background to work with me on this. We talk about doing things together and  I think this  is an excellent area  that  we can prove we are capable of doing it. I open it for discussion.
Mr. Robertson: So if I understand it right, we haveright now, we have two patrols going into the community. Ours works for 24 hours and the other one is less than that. Based on what we are doing now you feel that a single patrol could cover the entire community effectively. If that were the case we would have a joint patrol that went through the whole community with both realized cost savings as a result of eliminating that. Is that correct? But you would also, as we did in the past, when we transferred the employees that we would like to have we could still continue to have.
Mr.   Mecsics:  The employees with the present company if the CDD I would like
some of those to come over we would work with our company to absorb them in so that
we would have a meshed operation so it is one company taking care of all the business.	
Mr. Robertson: Ofjust the patrols.
Mr. Mecsics: Yes. That would give you 24 hour patrol and save you money. It would give us the same thing and save money. Somebody  asked about that,  about the  size of the community. I am just entering into I am going to be teaching a class of Patrol Allocation for a college and the size of this community is well worth it if you do it the right way. I believe you can do it.
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May 111 2018	Lake Ashton CDD and Lake Ashton CDD II

Mr.  d'Adesky:   So to clarify because there is potential of interference of contract issue here. If you have one company perform a joint patrol both in the area of Lake Aston II and Lake Ashton I to go throughout the entire community, I would have to look at that contract because that might be a breach of the scope of the Lake Ashton I's current contract. There might be an amendment to their contract to carve that out to allow for a community wide patrol if they are amenable to that idea. So that is something I would need to look at.
Mr. Mecsics:  That would have to be done.  I know when we did our contract with Securitas we had a clause in there for expansion of that if we had to in the future.
Mr. Robertson: I don't know if that merits discussion at this point.
Mr. Ference: Jim, are we having a problem with our security that we have to go to this patrol?
Mr. Mecsics: No, it is efficiency, Bob. It is pure efficiency. Mr. Ference: So nothing is broken and we are trying to fix it?
Mr. Mecsics; I don't go by if it is not broken don't fix it. I look for efficiencies, innovation and things in the future so is it broken, I would say yes, because we have two different contracts.  Two different companies doing the same thing for just a smaller area. I think by allowing us to do that we can get an efficiency of that and save you money.   It is avoidance of costs.
Mr. Ference: There is cost savings.  It is not reducing the problem, just cost savings.
Ms. VanSickle: My concern is first of all we decided the two CDDs decided to go
with separate contracts.  I am pleased with our contractor for the most part.  We always	I  !
have room for improvement, but my concern was we are a growing community. We are
a large community.  We are getting ready to lose our pool officer as of May 1st.   During	I   I

I

the summer we don't have a pool officer.  The pool is probably one of our areas that needs 	II
to be patrolled more often than anything else. During the summer our officer makes a concerted effort to get through there more often. Also if we have events and we need to pull a security officer for some reason, I think we are just too large that if we have an emergency at the clubhouse and the rover is way over at the far end of this new area or
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May 111 2018	Lake Ashton CDD and Lake Ashton CDD II

Hogan or somewhere1 I worry about a response time issue. I think it is important. I dodt see a duplication in service because I think to go the other way we get a loss of service because that trip around is going to be a lot longer. I look at that pool officer to go through that pool every 45 minutes. I think that is important. They also need to go through the clubhouse. During the day when we have staff it is not as important but when staff isdt there I think it is important especially when we have weddings and stuff like that. One  of our rovers does what I call parking lot patrol because when there is no booze being served inside1 they set up a bar in the trunks of one of the cars and she is on it. I like that but because she is there and close by she can monitor that more often. Jack and I were walking the dogs through the parking lot and she was way down on the golf cart path by the pavilion and she saw it. She got right back over there.  That is the type of service that I really appreciate. I think we need to maintain that.
Ms. Pontious: I think just based on the volume of traffic for some reason our gate gets way more volume of traffic then the Lake Ashton II gate. We have more people coming through the community on our side to get wherever it is that they are going. I really like the community patrolled the way it is right now.
Mr. Costello: We had discussed it and I personally think that the community is a good size no denying it but by the same token my colleagues feel that they are more comfortable with what is going on now we should go with the vote and we will go with whatever the majority feels.
Mr. Deane: I like it the way it is. Mr. Mecsics: We tried1 no vote.
Ms. Pontious: Ok1 so we are just not interested in changing and we dodt need a vote on it.
Mr. Mecsics: There is no motion.
Mr. Robertson: Ok1 so we continue to do our patrols and you will continue to do yours and we will go to the next item.

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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

NINTH ORDER OF BUSINESS	Supervisor Requests and General
Public Comments Mr. Robertson: Are there any Supervisor requests?
Mr. Deane:  When is the next joint meeting?
Mr. Robertson: Our next meeting is in August so I suggest we have ajoint meeting in August as well so we can give an update. We can also, as we did in April, we had an extra meeting to get our budgeting done while there are more people around. We could also have an earlier meeting if something turned up quickly. We are always willing to do that.  At this point lefs schedule the next joint meeting in August.
Mr.  Murphey:   Hold on a second, Doug. Don1t you think we are going to need to
meet again about any results we get back from the golf course consultant and so on? They said 60 days for that. Do you think they will be able to start virtually right away, Darrin?
Mr. Mossing:  Yes, I think so.
Mr. d1 Adesky:  If we need to we could schedule another joint meeting. Mr. Murphey: How much time do you need, a week?
Mr.  d1 Adesky:	We  prefer  like two weeks  notice.  It makes it easier  on  staff to
advertise and coordinate.
Mr. Robertson: I think mid-May to mid-July and then we have a meeting in August so depending on how things get done we might need one, we might not. We can always call a special meeting. So then we will just schedule one for at the clubhouse in August. Any other further items for business for the joint?
Mr. Scali: I have to say I am from the East and I am disappointed in our Board not going to one security system. I think it is foolish to have two. If someone goes over the green line and he is right there it is on the other side of his territory he can1t do anything. Plus we are talking about significant savings. You can in fact put together a plan that you still have the time after it is one security system.  It is just a question of making it happen. I think you made a mistake. Thank you.

A resident: Brenda mentioned that we are losing the officer at the pool because of the summer months. We have a lot of kids come down visiting the grandparents, etc.

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May 11, 2018	Lake Ashton CDD and Lake Ashton CDD II

and I think we need it.  We have had enough problems at that pool and we have enough problems with our amenity policy and here we are going to make another problem by not having an officer. I think we have to reconsider our contract and make sure we have an officer there 12 months a year. That is it.
Mr. Scali: I'd really like to see the two Boards go toonebudget, the entire complex. Mr. Deane: We can't do it.
Mr. Scali: You can do it if you make the effort. Split the cost and come up with two individual budgets that are the same. We need to prioritize things as a community not as East and West. That is my recommendation.
Mr. Robertson:  Any further?  Accepting public comments.  You don't have to say it, Murray, we are going to change our General Audience Comments. We want to change that to Public. It is a public meeting and all public are welcome. Thank you, Mr. Zacharia.

TENTH ORDER OF BUSINESS	Adj ournment
There not being any further business to discuss,

On MOTION by Mr. Ference seconded by Mr. Murphey with all in favor the meeting was adjourned.

Assistant Secretary/Secretary	Chairman/ Vice Chairman

34 

 	 	 	 	 	 	 	 	

MINUTES OF MEETING LAKE ASHTON

COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Lake Ashton Community Development District was held on Friday, June 8, 2018 at 9:00 a.m. at the Lake Ashton Clubhouse Ballroom, 4141 Ashton Club Drive, Lakes Wales, Florida 33859.

Present and constituting a quorum: Carol Pontious
Borden Deane Brenda VanSickle Bob Ference
Also present:
Darrin Mossing Jillian Burns Jan Carpenter Rey Malave Christine Wells Matt Fisher
Numerous residents

FIRST ORDER OF BUSINESS

Chairman

Vice Chairman Assistant Secretary Assistant Secretary

District Manager
Governmental Management Services District Counsel (by phone)
District Engineer	

Community Director Field Operations Manager

Roll Call and Pledge of Allegiance

Ms. Burns called the roll and established a quorum was present and Ms. Pontious led the pledge of allegiance.
Ms. Pontious:  We have Jan Carpenter with us this morning by phone.	Good morning, Jan.
Ms. Carpenter: Good morning. Sorry I am not there in person that was my plan. Ms. Pontious: We are glad to have you with us.

SECOND ORDER OF BUSINESS	Public	Comments	on	Specific
Items on the Agenda (speakers will fill out a card and submit it to the District Manager prior to beginning ofthe meeting)

Ms. Pontious: I do not have any requests to speak do you? Ms. Burns:  I do not.

 	 	 	 	 	 	

June 8, 2018	Lake Ashton CDD

Ms. Pontious: Would anyone like to speak this morning before we begin?

THIRD ORDER OF BUSINESS	Approval	of	the	Minutes	of
Meetings held on April 27, 2018 and the May 11, 2018
Ms. Pontious:  We have the approval of the minutes for the April 27, 2018 and the May 11, 2018 meetings. Do we have any additions or corrections? Do we want to take them one at a time?
Mr. Ference: I make a motion to accept the minutes for both meetings. Ms. VanSickle: Second.

On MOTION by Mr. Ference seconded by Ms. VanSickle with all in favor the minutes of the meetings held on April 27, 2018 and the May 11, 2018 were approved with noted changes.

Ms. Pontious: I have some corrections that I didn't have a chance to send in. On page 13 of the second minutes for May 11. Borden is speaking, but it says I think we should also expense the two beer coolers. I am thinking that is surplus. On page 17 I am speaking about six lines down it says, "Until we know what it is going to cost we don't know what the palms cost", I think should have been ponds. On page 21 five lines from the bottom, "I think we have a white store front", not a while store front. Those are my changes.  Beyond that I guess we are ready to vote.   All those in favor of the minutes.

Ms. Pontious: Do we know what happened to the joint meeting minutes?
Ms. Burns: I believe that they were still being reviewed. We will get those on the next agenda, though.

FOURTH ORDER OF BUSINESS	Engineers Report
Ms. Pontious: Good morning, Mr. Rey.
Mr. Malave: Good morning, all. Just real quick, a couple things. One, we had done a stormwater review inspection as required by our permit with S.W.F.W.M.D. We are doing very well, just a couple little things. We want to do cleanup and a couple structures we want to kind of enhance so that it doesn't fail in the future. Today we will

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8, 2018	Lake AshtonCDD

be submitting certification to them that everything is clean. Christine and Matt both have a copy of all the details. Our staff did a really good job showing pictures and all that so it makes it real easy for people to follow through with it. I am very impressed with our young people, which is good. We are in good hands I guess. Second is we made a couple of recommendations and went through and looked at all the reserve study. Together with Christine and Matt we assisted in helping get what is in there and there is a nice capital budget.  I know it is in a different line item there.  I don't know if I need to go into detail, just know that I have looked at it. We concur with all the costs that we have in there and the things that we need to do for the next fiscal year. Hopefully all the roadways are in good shape. We can defer all that, which is a big thing. Curbs, the same. One of the things that we want to do is do another drive through and walk of the entire roadway to ensure everything is in good shape and to update our previous study.
Mr.  Ference:   A number of people have approached me and say we have some problems that have to be adjusted.
Mr. Malave: We can definitely look at and find those and where they are at and go from there. We do have three streets that are on the list for next. So we will definitely look at those first and then of course checking where the potholes might be.
Mr. Ference: We are budgeted for that?
Mr.  Malave:  We do have a budget.  If you look at  the  item that says pavement management $165,000, that was for that and curb replacement and things of that nature. There is also an additional $25,000 for stormwater management so we should be in good shape. Other than just a comment on the email that everybody got on the windows we do recommend providing even though it is a higher cost the installation of windows with 140 mph design speed. It is always good especially more towards tornados versus a hurricane. You are still covered. It gives you a better protection especially towards the lake side. Just my comment so you have that recommendation on record.
Mr. Ference: Is that something you recommend to all of your properties?
Mr. Malave: We are and if you look in the reserve study it also recommends going to tempered glass and impact resistant. Especially the large ones that are towards the
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June 8, 2018

Lake Ashton CDD

lake. The ones on this side, they are narrow so the stress on them in a little less. I still recommend them being there but these that are towards the lake, which is where most of our headaches come from off the water and being the size that they are makes it a high recommendation to go forward with that.
Mr. Ference: Any guarantees on these?
Mr. Malave: As long as the company is in business you have a nice guarantee. Joking aside, they do design those. I do have those at my old hduse because I believe that they work and eliminate the need for putting covers over it during a storm. They do provide great warranties etc. for it.
Ms. Pontious: What is going to happen now with our work that was supposed to be done during low water times?
Mr. Malave: There are a couple things Matt and I talked a little bit with just now. There are a few things that they can do. The big work is the lake is still high and I think we are just going to have to postpone it to when we get another low tide again. There is no effect on the lake or the storm water system per se. It just takes up some volume but it is things that we need to take care of and make sure that we have on our list when we have an opportunity. Like as an example, the one on Berwick, the island is almost covered with water now. You can barely see it. We are just going to have to wait until that happens again and hopefully we have somebody in place that can come there and get it done ASAP. With that, that is all I have. Thank you for having me.
Ms. Pontious: Thank you, travel safely.

FIFTH O RDER OF BUSINESS	Unfinished Business
Ratification Agreement with Polk County Property Appraiser
Ms. Pontious: We have the ratification of the Polk County Property Appraiser.
Ms. Burns: The Polk County Property Appraiser, theircontracts don'trenewevery year automatically, so we just need to enter into an agreement with them in order to get the information to collect the assessments on the tax roll. This has already been executed so we are just looking for ratification from the Board.
Mr. Deane: Motion to ratify the agreement with the Polk County Property Appraiser.

4

1	-----.--

June 8, 2018	Lake Ashton CDD

Ms. VanSickle: Second.
Ms. Pontious: We have a motion from Borden and a second from Brenda to ratify the contract with the Polk County Property Appraisers office. Any further discussion?
On MOTION by Mr. Deane seconded by Ms. VanSickle with all in favor the agreement with the Polk County Property Appraiser was ratified.

Ratification	of	Agreement	with	NGF	Consulting	for	Golf	Course Acquisition Feasibility Study
Ms. Burns:  This was approved at the joint meeting so we thought it would make sense for both Boards to ratify that decision at their own meeting. The Board has seen this. It has already been approved by both Lake Ashton I and Lake Ashton IL We are just asking that you ratify your decision from that joint meeting at this meeting today.
Mr. Ference: I recommend that we ratify what we already approved. Ms. VanSickle: Second.

I

Ms. Pontious: We have a motion from Bob and a second from Brenda to ratify the contract with NGF Consulting. Any further discussion?
On MOTION by Mr. Ference seconded by Ms. VanSickle with all in favor the agreement with NGF Consulting for golf course acquisition feasibility study was ratified.

Ms. Pontious: Let me just say that I have met with Barry. He was here last Thursday and Friday. He spent Thursday with the golf course personnel and going over things there. He spent Friday going to different golf courses in the area so that he might compare us to others.  Then I met with him.  He was impressed with the quality of the golf course, the care of the golf course. He said their management company that they are using is doing an excellent job. He will have results for us. He thought in two weeks so that would be a week from last week, so sometime next week, not necessarily the official report but his findings.  The official report he will have for us by the July meeting. He seems to be very prompt and is working diligently to get us that information.   Do you want to do the ratification of Nini's contract while we are in this?
Ms. Wells: We can.
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June 8, 2018

Lake Ashton CDD

Ms. Pontious: We had some changes that we wanted to make to Nini's contract last time. I believe in summary it was the 90 day extension for giving back money, the
$200 incentive that Mike suggested for them bringing in business and the cleaning contract. You have met with them and they have agreed to this?
Ms. Wells: Yes.
Ms. Pontious: Ok, so do we need to do the ratification?
Mr. Deane:  Motion to ratify the amended contract with the restaurant. Ms. VanSickle: Second.

I

Ms. Pontious: We have a motion from Borden and a second from Brenda to ratify Nini's contract as we discussed last month.
On MOTION by Mr. Deane seconded by Ms. VanSickle with all in favor the Nini's amended contract was ratified.

ORDER OF BUSINESS	New	Business	and	Supervisor
Requests
Restaurant Update and Consideration of POS System
Ms.  Pontious:  Alright,  we  have  a  restaurant  update  and  consideration  and problems with the POS system so do you want to go from here?
Mr. Deane: We are having trouble with the POS system. They want roughly $1,000 to change the name on the restaurant in the contract with the people we bought the POS system from before. The $499 was to change the name and $500 was for a rush set up of the menu in the POS system.  Their rush set up is 3 weeks, which I think is ridiculous. Nini's has a different type of system that they use for credit cards, which also has a POS system.  The only thing we have to buy are the stands which are $169 apiece.  We need two of them so for roughly $350 we have the new POS system which is compatible with the equipment we already have. Nini's already uses that system for their credit cards. I recommend that we purchase the stands so that the system can be used and we will have everything mobilized as required by the lease for reports and everything else.
Ms. VanSickle:  So moved. Mr. Ference: Second that.

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8, 2018

Lake Ashton CDD

Ms. Pontious: A motion from Brenda and second from Bob to purchase the stands.
Ms. Wells: I am working with Ariel to make sure that our current receipt printers and cash drawers are compatible with the system. Some of them are, but if they are not we may have purchase receipt printers and cash drawers. It is not something that is definite right now that we need to, but we may have to. I don't know if you want to approve an amount in case we have to. Of course I am going to spend the least amount of money possible. If we can get away with just the stands I am all for that.
Ms. VanSickle: What do you want, a not-to-exceed number? I would rather you just take care of this for us and have it done rather than wait for another meeting.
Mr. Deane: Nini's already has one cash register.  I don't know if they need a second cash register. They already have a receipt printer that prints receipts. Even if it is not compatible with our system we already have the equipment that is compatible with it. So I don't think it is necessary in my opinion.
Ms. VanSickle: Will one suffice?
Mr. Deane: I believe one would suffice.
Ms. Wells: I guess I am concerned with the printer in the kitchen. I don't know if they have one that is compatible with the system for a printer in the kitchen.
Mr. Deane:  I can't answer that question.
Ms. VanSickle: Well do we want to go with a do not exceed because I don't want to be putting this off.
Mr. Deane: I agree.
Ms. Wells: I would think $1,000 would be fine for the not-to-exceed amount? Ms. VanSickle: Let's make it $1,500.
Ms. Pontious:  We did vote didn't we?

On MOTION by Ms. VanSickle seconded by Mr. Ference with all in favor a not-to-exceed amount of $1,500 to change the POS system was approved.

Ms. Burns: No, we have a motion and a second. Ms. Pontious: All those in favor?

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June 8, 2018

Lake Ashton CDD

Ms. Pontious:  Let me say to in conversation with Christine that we are spending
$200 a month for the old system for support. She has spent hours trying to contact these people and they are not contactable, so apparently we have been paying the $200 a month for help and when you need it they are not there. I think it will be good just to get out from under that contract and quit paying because we can't seem to get to them anyway. You will need to get whatever payment plan you have with them done as well.
Ms. Burns: Let's get a motion to terminate the existing contract. That way we can send a notice.
Mr. Deane: I make a motion to terminate the existing contract for the POS system which is the name of the previous restaurant.
Ms. VanSickle: Second.

Ms. Pontious: We have a motion from Borden and a second from Brenda to terminate the existing contract for the POS system.
On MOTION by Mr. Deane seconded by Ms. VanSickle with all in favor terminating the existing contract for the POS system was approved.

Ms. Pontious: Is there anything else we need to do?
Mr. Deane: I think they are doing an excellent job.  I have not heard any complaints from anyone with regards to the food. There has been complaints about the wait time and things like that, but if 150 people show up at one time at the restaurant some people are going to have to wait. That is what has been happening. I am just asking the residents to have patience. I think they are doing an excellent job and they want to please the residents so I think we have the proper people in the restaurant this time.
Ms. Pontious: I think we are probably speaking to the choir here because we have people here who care or you wouldn't be there. However we have had some occasions of some pretty serious cussing people out in the restaurant for not having things done appropriately and some pretty rude bad behavior.  We are not going to tolerate that.  If you want to do rude bad behavior you might as well just stay home and do it there. I think we want to go on record that if this continues those people that want to be rude will
8

June 8, 2018

just be asked to stay home.	We have that ability to do that and there is no reason these people should put up with that. If you are upset go home.
A resident: You were talking about the POS system. I ate there on Tuesday night. The POS system when you get your receipt it doesn't list what you bought. They list like four line items and a cost, but it doesn't list what the item is.
Mr. Deane: That is because the POS system isn't installed at the present time. Their register is not set up to print the detailed receipt that will come with the POS system that we are purchasing.
Ms. Pontious: I think it has just been an intermediary because they already had this on their computers that they could open up with and get us rolling with because the one that we had was not working. I think it is an important thing.
A resident: Somebody is going to complain about it.
Ms. Pontious: The other thing was you could get an email receipt or a text receipt. Some people want printed receipts and we need to be able to accommodate that. I did hear some comments that people wanted a printed receipt and that is a valid request. We are working on that. We will get there. Same thing with the menu. They are tweaking the condiments, the silver is being tweaked. They've been open less than a week. I think overall they are doing a pretty good job. We just need to hang in there and address the issues as they come up. Please do it in a nice way. Nobody needs to deal with nastiness.

Approval of Amendment to Contract with Community Watch Solutions Ms. Pontious: Approval of amendment to Community Watch Solutions contract.
Ms. VanSickle: I have some concerns over this. This was originally on our agenda for last month's meeting, but because of lack of documentation it was tabled. I wouldn't call what we got documentation. I would like to table this further until we have adequate documentation. We have a current contract in place and to me this seems like something that is really not our problem. I need a lot more documentation.
Ms. Burns: The question came from the security company. It was $1 extra per hour as you can see. You feel that you have a contract in place. I think the Board has the ability

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8, 2018	Ashton

to say, no we are not going to pay for this increase if you feel that it is their problem. You have the ability to negotiate maybe 50 cents. You have the ability to say we are happy with this contract. It is completely within the Board's discretion on how they want to handle it. If you don't want to pay and are not willing to go at the current rate then it would be a situation that we would terminate the contract and go out to bid it again.
Ms. VanSickle: I am perfectly fine with that. Currently I have some concerns. I would not be in favor of approving this at this time.
Ms. Burns: What additional information would you like us to get? There is a representative from the company here today if we have questions.
Ms. VanSickle: I have never seen an addendum for this I am sorry. I have been dealing with contracts here for 8 years and I have never seen anything like this before. I am not impressed. It seems unprofessional. Recent dealings with them I have some concerns, I will be quite frank, at this point I am not in favor. That is up to my fellow Board members, but I can go deeper if necessary. I would rather not, but I can.
Mr. Deane: I just don't understand it, simple as that. We have a contract that is a little over a year old. I don't understand why all the sudden there is a dollar increase. I would like to know why, they can't keep their people or what the situation is. Why are they requesting a dollar an hour increase, just to show it on paper the way they showed it, it shows us absolutely nothing.
Ms. Burns: We were told by them it has to do with they reached the 50th employee and have to provide health care now whereas they had under 50 employees before that.
Ms. VanSickle: Poor planning on their part does not constitute an emergency on ours.   I would table this, but I think there is considerations that need to be worked out. I am not above putting it out to bid. I don't have a problem with that either. I think we have some excellent people working for us. I would like to keep them. The company, so far, I am not that impressed with them.

Mr. Ference: Jill in your experience, is this $13.50 an hour standard in the industry? Ms. Burns: I have Districts that range from about $12 to $16.
Mr. Ference: Depending on the size of the community?

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June 8, 2018	Lake Ashton CDD

Ms. Burns: A lot of it depends on if it is staffed 24 hours a day fees are higher than if you say you have a gate that is only staffed about 12 hours a day. Some that are staffed 24 hours a day provide an onsite coordinator that oversees everybody so there is some variables there based on the hours. Also some contracts will pay their guards if they weren't happy, let's say with the level of service they were getting they will increase the guards pay p ortion to get a better quality. If it is $16 an hour the guard might only see
$10 or $11 of that. If they add another dollar to that they can get a better quality guard. Ms. VanSickle: But this dollar wasn't going towards increasing salaries, correct?
That is my issue.
Ms. Burns: That is the range.
Ms. VanSickle: It is totally a different discussion.
Ms. Pontious: We will table this until we have further information.

Consideration of Resolution #2018-03 Designating Darrin Mossing as Secretary and Jillian Burns as Assistant Secretary
Ms. Pontious: We have Resolution #2018-03 Designating Darrin Mossing as Secretary
and Jillian Burns as Assistant Secretary.   Jillian has been here several months advising and learning. She is with George Flint and Darrin Mossing so we welcome her today.
Ms. VanSickle: Move to approve Resolution #2018-03. Mr. Deane:  Second.
Ms.  Pontious:	We  have  a  motion from  Brenda  and  a  second  from  Borden  to approve Resolution #2018-03. All those in favor.
On MOTION by Ms. VanSickle seconded by Mr. Deane with all in favor Resolution #2018-03 Designating Darrin Mossing as Secretary and Jillian Burns as Assistant Secretary was approved.

SEVENTH ORDER OF BUSINESS	Staff Reports
Attorney
Ms. Pontious:  Jan, do we have an attorney's report today?
Ms. Carpenter: No, we don't have much to report today. The only thing is an update  on  Mr.  Earl's  matter.	We  were  planning  to  meet  with  him  and  his  counsel

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after the last meeting. They had to cancel. We contacted them but have not heard back to set another date. We will keep you posted. That is all we have. I will apologize again for not attending today. I planned to, but unfortunately I am somewhat clumsy and have an injury so I am working from home for a couple weeks. Athletics is not for me.

Ms. Pontious: We wish you well. We hope you recover completely and totally.
Ms. Carpenter: I hope to see you all next month. Also welcome to Jill. She has done a great job and we know her from another management company so I am happy for GMS also.
Ms. Burns: Thank you so much.

Community Director
Monthly Report
Consideration of Pool Vacuum Purchase
Consideration of Fitness Center Equipment
Consideration of Fiscal Year 2019 Capital Improvements Ms. Pontious: Ms. Christine our community director report.
Ms. Wells: I included a copy of the community director's report in the agenda packet. There is one thing that I wanted to note under restaurant is that we have received their initial $2,000 security deposit that was required at commencement. I just wanted to inform the Board of that. I failed to include it into the report. So we have received that
$2,000 check so you will see that in the revenues coming in. Are there any questions in regards to the report before I get into everything else? Carol, did you want to mention the letter now?
Ms. Pontious: Do your things first then we will do that.
Ms. Wells: The consideration of the pool vacuum purchase, I sent an email to the Supervisors outlining a purchase that was approved in fiscal year 2018 capital improvement budget. We received three quotes. Well let me backup just a little bit. We allocated $10,000 for pool equipment and there is approximately $7,300 available for use. We received a quote from Heartland Pools, from Spies Pools, and obtained a quote online from Pool Supply Unlimited. It is for the purchase of a Hammerhead Resort 30 commercial pool vacuum which all quotes included the vacuum, the battery charger, and
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June 8, 2018	Lake Ashton COD

a collapsible 16 foot pole. The manufacturer offers a six month warranty on the piece of equipment. The price quoted from Heartland Pools was $3,000. The price for Spies was

$2,785.84 and the price for online at www.poolsupplyunlimited.com was $2,354.38. I just wanted to clarify this would be used in addition to our  pool  contractor.  Currently  we have not been servicing the pools on Tuesdays and Sundays so it would be used  by  facility staff to clean the pool on those two days. Especially with mayfly season it is hard for Matt with just the skimmer to get all those mayflies off the pool in the timely fashion for pool aerobics and other events there. So this is why we are approaching the Board about this purchase. It is up for discussion and ultimately your consideration.
Mr. Deane:  This is the same vacuum from all three vendors? Ms. Wells: Yes.
Mr. Deane: I make a motion to buy the cheapest vacuum.
Ms. VanSickle: I will second that.  Matt, do you have any comments on preference? Mr. Fisher:  No ma'am.  It would be a great purchase.

Ms. Pontious:   You don't have any problem with installation because if we do an online purchase you are going to have to do that yourself?
Mr. Fisher: No, I can handle it.

On MOTION by Mr. Deane seconded by Ms. VanSickle with all in favor the purchase of a pool  vacuum from poolsupplyunlimited.com for $2,354.38 was approved.

Ms. Pontious: Ok.  We have a motion from Borden and a second from Brenda to purchase the pool vacuum from the online source of poolsupplyunlimited.com for use on the off days in the pool and in peak bug season. All those in favor?

Ms.  Wells:     The  next  one  is  another  capital  improvement  project.  It  is  for replacement of the current Nautilus multi-station in the clubhouse fitness center. The piece of equipment is fairly old and we are having difficulty finding replacement parts at this time which I am sure you have seen over the years that some of the pieces have left and not come back.  We are seeking approval to move forward with replacement of this piece of equipment. With the pieces of strength equipment that we have included Fitness
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Services of Florida recommended all life fitness products. They are all very similar strength equipment, just different brands. Fitness Smith, Frontline and Performance Fitness are all the same pieces of equipment. The pictures are under Fitness Smith. Their piece of equipment is slightly different from the Life Fitness but works the same areas of the body. We try to keep with what we currently have. We recommended a multi-press, an abdominal machine, a leg press and lap pull down like a row type machine that would be similar to whatwe currently have. These are all individual pieces of equipment versus now we have a multi-station. We will have a little bit more flexibility with the individual equipment.  I have included quotes.  We received actually four quotes for this one.  The first one was from Fitness Services of Florida. It includes the Life Fitness Optima Series Lap Pulldown, the Optima Series Multi-press abdominal machine, leg press and the price was $12,549.81. It includes freight delivery, installation and removal of the existing equipment. The quote we received from Fitness Smith, it again is similar machines, just a little different.   It is a Genesis free motion shoulder machine, a free motion ab/bicep machine, a leg press/calf raise machine and then a lap pulldown vertical row machine. There price was $13,968. It includes the same things as Fitness Services of Florida. Their price does include a trade-in value of $300 for the existing equipment and 2 onsite training sessions which is why their price is a little bit higher. Frontline includes the same equipment as Fitness Smith. It does not include the trade-in value or the training sessions. Their price is $ 15,730 and Performance Fitness Group is $16,980.
Ms. VanSickle: Do you have a preference? I do like the training sessions.
Ms. Wells: I did check with Fitness Services of Florida because I kind of figured the training would be something that they would offer.   It would be $400 for each session
so we could get training from them as well if it is desirable to do the training if that is the only difference.	I wanted to include the pictures because the machines are slightly different even though they do work the same  areas  of the body, they are  slightly different.
Ms. VanSickle: Do you have any input from residents on a preference? I don't go to the Fitness Center as often as I should so I am not real familiar with it. Have you had requests from residents for certain things?
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Ms. Wells: We have not in regard to the strength equipment but I did speak to a couple of the regulars that were in the Fitness Center when we were talking about this and showed them the different options. They thought both options were great. At that time we had the Fitness Services of Florida quote and the Fitness Smith quote. The only thing I liked about the Fitness Services is that they are all Life Fitness brands. Right now we have Life Fitness brand elliptical and treadmills. The equipment from Fitness Smith is just slightly different. It is a little bit more free motion.  They are both great options so I would just lean on the Board for what they thought. They are both very great options.
Mr.  Deane:  Is there room for this equipment in  the gym?   You are taking one machine and bringing in four?

Ms. Wells: Yes there is. They can make it to where they back up to each other but they are space saving options. When I met with Fitness Smith they said that all the equipment would fit. We may move the recumbent stepper over to where the recumbent bikes are facing the pool area so that it gives us a little bit more area right there. With it being individual pieces of equipment it allows for more flexibility with that.
Ms. VanSickle: It looks like the Fitness Smith has a little bit better warranty. I would go with Fitness Smith for $13,968.  I like that warranty.
Mr. Deane:  I second the motion.
Ms. Pontious: We have a motion from Brenda and a second from Borden. Further discussion? Matt, do you have any input on any of this equipment as far as the care and maintenance?

I

Mr. Fisher: No. We met with the rep and all the maintenance is straightforward and I believe you guys picked the right one.

On MOTION by Ms. VanSickle seconded by Mr. Deane with all in favor proposal from Fitness Smith for $13,968 for strength training equipment in the fitness center was approved.

Ms. Wells: The fourth is capital improvement for fiscal year 2019. I sent a spreadsheet to Supervisors and this is for discussion purposes only. I wanted to include all recommendations we received from residents, from vendors, and from staff just for
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discussion. So you have everything that has come to staff from residents and vendors of improvements that they would suggest. So I don't know, do we want to just go line by line or did you guys have any suggestions, concerns, additions or deletions?
Ms. VanSickle: I would just like to make the rest of the Board aware, I guess this would go under outdoor furniture. We had a request from a resident that we get benches outside the front so after entertainment series those that have mobility issues will have a place to sit down while they are waiting for their ride. I thought it was a really good idea. Ms. Wells: I also included in outdoor furniture is the replacement of tennis court benches, and some of the smoker's outposts. I don't know if that is kind of pushing furniture but basically just any of the furniture around. Matt and I need to do a more thorough evaluation of all the furniture so we just estimated the replacement of the tennis court benches, the addition of the benches out-front. There are some trash receptacles. I don't know if we want to name it furniture or it we just want to say outdoor, I am trying to think of a word that would cover that, some of those trash cans because it is commercial grade trash cans, they are bolted into the ground and are fairly expensive. Some of them
have met their useful life, so that is also included in that amount.
Ms. Pontious: I would like to see some more wheels for our trash cans. As people have events and take the trash cans around, they are carrying the can from place to place. If we had a few more sets of wheels it would make cleanup a whole lot easier. We have fitness center equipment on the 2019 budget. We also had it on this year's budget so I was assuming that is what this money, this is going to be an immediate order out of 2018?
Ms. Wells: Yes.
Ms. Pontious: Do we need more equipment for 2019?
Ms. Wells: The reserve study had recommended the fitness equipment replacement be done in phases. They were recommending next I believe the replacement of the elliptical or the treadmills. I am a firm believer in don't replace something unless it needs to be replaced, but it is nice to kind of have the amount there if it does need to be replaced in the middle of the fiscal year. As you can see the fitness equipment is fairly expensive. That is up to Supervisors. That is why that amount is on there.
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Ms. Pontious: Ok. The sand filtration system for the pool.
Ms. Wells: That was a recommendation from the vendor. When we have peak bathing load the filters tend to get clogged from all the oils. This system he was recommending would lesson that to where the filters wouldn't get clogged as often using a sand filtration system. As we are talking about the pool, the pool heaters, I just want to clarify it is for replacement of the current pool heater. The gas heater and the replacement of the electric pump, that is for heating as well. That is not very efficient for the size pool that we have. The gas pool heater we have had the rollout switch has been going out left and right. We feel like it is needed for an upgrade so that is why there is two pool heaters. The vendor that recommended to us which if this is approved and we get to that is offering a trade-in value for the heaters as well.
Mr. Ference: The filtration system, is it original or have we replaced it in the past?
Ms. Wells: To my knowledge it is original. I don't know. Matt, do you know if it is original?
Mr. Fisher: Yes. He has expressed to me that many properties he cleans the pool for and they are sand filtration system and it would be a re-engineering of that. It is something that we would want to go to and cut back on the clogged filter issue. The pool is 79 degrees and residents are upset.
Ms. VanSickle: It was really an issue this past season.
Mr. Ference: If it is time for an upgrade and replace it, I think we should go for it. Ms. VanSickle: It is time.
Ms. Wells: Pool tile replacement. It is just time again to replace the tiles in the pool. Ms. VanSickle: They are falling off.
Ms. Wells: It is falling off. They are piecing it back together. I think it is probably time to just replace and that is for the pool and spa. The automatic flushers was a recommendation from a resident to include that there and that is the price for all the toilets, urinals in the entire clubhouse.
Mr. Deane: To me that is waste of money.
Ms. VanSickle: I think if they are working, but if we need to replace them maybe.

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Mr. Ference: Are people complaining about coming into restrooms and finding issues? Why are we doing this?
Ms. Wells: This person was.
Mr. Ference: Just one person. I think it may be a little excessive for us to replace because one person was disappointed that he came into a dirty toilet.
Ms. Pontious: Have we now replaced all the facilities with the hi-rise toilets? Ms. Wells: Yes, we have.
Ms. Pontious: I think we are probably good on that one then unless we have additional trouble. Digital thermostats. This was a recommendation when we did the commercial TECO audit for energy savings. It was to switch out all the thermostats in the clubhouse to a digital thermostat.
Mr. Ference: Because?
Ms. Wells: Energy savings I am assuming. Matt and Tricia met with them actually.
Was it just an energy savings option?
Mr. Fisher: Yes. It was a recommendation in the TECO audit. I can get more information on that.
Ms. Wells: Ok. I can bring more information to the July meeting on that.
Ms. Pontious: We talked a number of years ago, my brain is behind me today. At one time when we needed to do any major work on the pool that we would consider the geothermal heating system and use the water from the lake and so forth. I think before we spend another $20,000 replacing heaters maybe that would be another time to revisit that topic as well and see if by drawing the water from the lake and putting in the geothermal system, it is my understanding that you don't have to have any of those then. Maybe we need to revisit that.
Ms. Wells: I think there is quite a bit of work already done on that so I will bring that to the July meeting as well so we can discuss that. The indoor furniture we may need to purchase additional ballroom chairs. That is an addition, it is not a replacement. I also included some of these tables thathave beenhere, they are original tables. They are fairly expensive for the tables that we get that can hold up. They have held up very well but I
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just wanted to have a placement in there in case we do need to replace any of these tables. Like I said they are fairly expensive. Matt and I are going to go through the entire clubhouse and just see what the condition of the other indoor furniture is. I went from the last quote we received for the ballroom chairs. Like I said we may need to order some additional chairs so that is what that amount is coming from. The gate entry system I had that on there because it is quite an expense. I know we are discussingit. It was discussed at the joint Board meeting. Mike and Jim were discussingthe need or want to change the current gate entry system. That is why it is on there with a TBD just in case we do want to go to it, that is going to be a large expense, but I think that it is something that we need to discuss and make sure both sides are on board with that before we allocate funds to it. It is not going to be helpful if it is changed here and not there. I know we are working on it with the joint meetings so I just put it there so we keep our mind on it. I don't know if we will have a decision because I think the budget adoption is before the joint meeting, so I wasn't sure. I wanted to put it on there but I wasn't sure what to do with it.
Ms. VanSickle: Do we have a ballpark figure?
Ms. Wells: I haven't gone any further because I want to make sure of the system that we want to go with and then I focus on that. I don't know what system we want to go with. I can try a couple of different systems that we think may work and may work for this community and get pricing on that so that we have a rough figure to go by. I would be more than happy to do that. I was just waiting because it takes a lot to receive these quotes so I don't want to spend a lot of time doing it and then it is something that we don't even want to consider at all.
Ms. Pontious: I think we need a commitment from the West too whether we are going to do this together, otherwise we are going to tighten up our gate. If they don't want to deal with our tight gate they will go around the other side. It is not going to do us any good to put further restrictions on one gate and not the other. That needs to be a joint thing. Ok bocce ball?

Ms. Wells: Matt met with Jamie to evaluate the bocce ball court. There is a need for a thicker mat. We think that is why the mat keeps shifting and ruffling. The score
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system as you know is fading. Some of the boards may need to be replaced. The pavers definitely need to be replaced. So this is the amount they gave us to make a higher quality mat on the bocce ball court, to fix any boards that need to be fixed and the scoring system.
Mr. Ference: We have not replaced that mat? It is the original mat?
Ms. Wells: Is it the original?  I don't know how many years ago it was, 3 or 4? Mr. Fisher: About 4 or 5 years ago.
Ms. Wells: They raised funds and just for the mat, but what Jamie was telling us is	·,
that it is to better quality out there, that they recommend a thicker mat to stand up to the
elements and to the use that it gets out there. 	II
j'
Mr. Ference: Does that get a lot of use?	1
Mr. Deane:  Quite a bit.
Ms. Wells: Yes. Then we have clubhouse lawn lighting. I have had several concerns of the lighting in front of the clubhouse. It is fairly dark especially in the walkway that leads to the east parking lot. Matt and I met with Kincaid to go over some options. The option that is included with this is we were thinking in the pathway that leads to the east parking lot there is lights that you can imbed into the pavers so at least just illuminate that. Then over here, some landscape lighting and lighting that would shine out from the landscape onto the walkway. There are some flood lights already on this side of the building which is leading to the west parking lot but there is nothing leading to the east parking lot.   It would be just illuminating the paver walkway.   We were going back and forth with options. We don't want anything that is too intrusive but also want it to be a safe area for residents. We have had a couple of recommendations of increasing lighting on that area.
Ms. Pontious: I think when people are leaving events those sidewalks are really dark out there. I would like to see when we put the lighting on this end of the building it really improved the parking lots over there. If we would do the same on this side then it also eliminates the issue with the mowing and the machinery out there that we are not going to destroy what we put in.
Ms. Wells: Yes, exactly.

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Ms. Pontious: I think that is probably number one on the list here as far as I am concerned. It is a safety issue. Ok, air conditioners always are coming and going.
Ms. Wells: Matt met with Miller Central Air, who we use for the clubhouse and they recommended out of all the systems, two systems were most likely to possibly go down. So that would be a number that they gave to us for replacement of those two systems if they go down. If they don't go down that  amount is still going to be there but it is a good place and amount in case they do, if an air handler goes out or anything like that and we need to replace that in the middle of a budgetyear. Next was the ice machine replacement in the clubhouse fitness center restroom area. It has run out of ice quite a few times especially in high peak use so we are recommending the replacement with a larger capacity ice machine in that area. I believe it is a little less than ten pounds of ice that it holds and then has to make new ice. During spring break, summer time when there is a lot of people, that ice will go out very quickly. Then we have to  shut it down and let it sit and make up ice. It shuts the ice machine down for an amount of time so if we increase the capacity of that ice machine then we wouldn't have that happen as often.
Ms. VanSickle: What would the increase capacity be?
Ms. Wells: Matt so you know whattheincreased capacity was that they gave you? I was looking at one that was 25 pounds. They said this was a good number to have. One I was looking at online was 25 pound capacity so it would be triple of what we have right now. It was still the water, ice on a counter top.
Ms. VanSickle: How quickly does it make ice?
Ms. Wells: I have to check on that. I didn't look at that. I was kind of just looking at placement numbers and what kind of equipment we wanted there. I can check to see.
Ms. VanSickle: We definitely need it.
Ms. Wells: For pavement management, as Rey mentioned, we are evaluating the roads that are budgeted for fiscal year 2018. That was $165,000. Last meeting we said that could be pushed to 2019 that is why the same amount is on 2019 that is on 2018. I did tell him if it needs to be replaced now we need to replace during this budget year. If it can wait until October I am fine with waiting until October. Matt and I want to evaluate
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that. We are going to set up a meeting with Rey to evaluate the entire community and see if there is anything that needs immediate attention. We will take care of it fiscal year 2018 pretty soon in the summer while traffic is low. That is why it is the same amount from 2018 to 2019. If that doesn't happen we are just going to move that amount to 2019. Restaurant equipment allowance $15,000. I know we have replaced a lot of restaurant equipment. The walk-in freezer cooler, if that does need to be replaced because it is an original piece of equipment it is going to be about that amount for both of those pieces.
Mr. Deane: Yes, it is with no problem.
Ms. Wells: Those are the only things. I met with Borden to see some of the equipment we haven't replaced. We are in a good position right now because we replaced a lot of equipment. I feel really good about the equipment we have in there now but if those two pieces of equipment go down for any reason we are going to need that amount. Like I said if we don't need it, it will still be sitting there.
Mr. Ference: The floor covering looks really great. The other day we were there and I was just wondering because it is so dark, I wondered if the table covers that are also very dark ,a dark brown; I wondered if we wouldn't lighten it and light up the place because everything is that same shade of dark. Tables, floors etc. etc., if it wouldn't add a sense of lightness if we were to have different kinds of tablecloths. I don't know if anything was ever given thought to but it just seems to be so consistently dark. The floor is dark. The tables are dark. The chairs are dark. Everything is so dark. I wonder if any thought was given to the fact that we might have a different color table covering.
Ms. Wells: Historically we have left that up to whoever is operating the restaurant to use whatever table coverings they would like. I am open to suggestions if the Board wants to purchase a different color linen or something to use.
Mr. Ference: Itis just that brown color all over. I thought if this was a lighter shade or a different color it might just give the dining room the sense of brightness or lightness that it didn't have for very little expense. I don't know who would consider that.
Ms. Wells: I can recommend it to Nini's unless the Board wants to purchase it and make it as part of restaurant inventory.
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Mr. Ference: They can be replaced. We are not discarding these. I just thought it would be, it just hit me, the dominance of this darkness, so I am bringing that up here for your consideration.
Ms. Wells: Would you like me to reach out to Nini's first and see if they want to replace them themselves?
Mr. Ference: Well what does the Board think? We have all eaten there. What do you think? Maybe I was just conscious of it. I have been in there before. I love the floor covering, but again when I sat down I said, by gosh everything is so brown and dark It would be nice if it was a different color. I don't know howthe rest of you feel about that.
Ms. Pontious: I think if we just wait until they get settled and things are on an even keel. Maybe if we want to address it, we can do that then.
Mr. Ference: It is not very costly. Ms. Pontious: I wouldn't think so.
Mr. Deane: They are specifically made for that size table, they are not that cheap.
They are not cheap at all. You have 30 tables in there.
Ms. Pontious: Ok we can keep that there. It is a good idea. The microphone system for the ballroom. What do we need to do with this?
Ms. Wells: That would be you can't see it right now because the table is over it but we have microphone jacks in the floor now that are semi-trip hazard for anyone who is using the stage for any kind of performance or anything like that. Our recommendation would be to take those mic plugs out of the stage and go to a wireless mic system so we won't have cords. It will be all wireless. This is the recommended price. It was given to us by Westbury that does a lot of our entertainment and things like that. Again it is for consideration. We are fine with this system unless you want to upgrade it. We do need to address the mic plugs on the stage itself because a lot of residents use the stage. They are starting to pull up. I am a firm believer if we have to, replace it. It was about $800 to just replace it with something that isn't bent. So for investing that much money if we invest a little bit more into a system that is upgraded that might be a good use of money. Again, it is up for consideration.
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Ms. Pontious: Stormwater management, we are always going to have, that is a given. What has happened to our patio screening?
Ms. Wells: Are you referring to the enclosing of the patio? That is the one that we are still working on. They recommended having an engineer come out and give us a plan of how it is. It is not something that we can just replace what is currently there with a hard roof and screen it in. I just wanted direction from the Board to see if you want me to have the engineer do an engineer study in that area to give us an amount.
Ms. VanSickle: Yes.
Ms. Wells: Ok. So do we want to do the engineering study as part of fiscal year 2019 budget? I don't know how much engineering studies are for something like that.
Ms. Pontious: I am just wondering if we really need an engineering study or if we should just start with a contractor to come out and look at it and give us an estimate.
Ms. Wells: I had contractors come out. They were hesitant to give us a quote if they didn't have an engineering study. They would hire an engineer, their own engineer to do it. Then we would pay for the engineering study or we can have our engineer do it and we pay for it. They did not want to give me a quote until they had an engineering study as to what was needed in an engineer's perspective.
Mr. Deane: Can Rey do that?
Ms. Wells: I am assuming that he will do anything that we need him to do for the right price. I am fine with reaching out to Rey and telling him what we want to do. I don't know if we want to ask at the next meeting and say this is what we want to do. We need a price before the budget meeting in August. Maybe he can take care of it while he is here. I try to utilize him as much as possible while he is here for a meeting. I don't know if that is an option, it is just giving him a heads up that next meeting while you are here can you take a look at this area. We need an engineering study to do a hard roof screened in. Are we looking for just a hard roof or hard roof and screened in?
Mr. Deane: Hard roof and an enclosure.
Mr. Ference: Rey should give us more than one. I think Rey should shop around and see. One engineering study may not be as satisfying. I think we should get more
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than one.  Rey should shop the engineers before he brings us a presentation.  It is going to be a very costly item. I don't know that we should satisfy with one presentation.
Ms. Wells: I guess I just want to clarify do you want me to reach out because Rey is our engineer. I don't think he is going to give you any competitor bids. I can reach out to other engineers if you would like.
Mr. Ference: I don't know if Rey is qualified to do that himself.  He can reach out to people who are specific to this area. I am just saying that because we like to make sure that he shops the area. He is an engineer but can he do it all?
Ms. VanSickle: Wouldn't the engineering firm have engineers that has specialties? This is the engineering firm we hired so I am assuming they would have somebody in their office.
Mr. Ference: If that is the case then so be it.  I am just thinking.
Ms. Wells: Spend the least amount of money as possible. I'm right there with you. Ms. Pontious: Ok, is there anything else we need to add to our list?
Ms. Wells:  If anything comes up and if we have another contractor or anybody else that recommends anything I will bring it to the July meeting. We have another meeting before we actually adopt the budget. If we think of anything else or if you guys think of anything just let me know and we can come up with an amount to put in to discuss at the July meeting. I will make sure to bring those other options to the July meeting as well. One thing I should have mentioned under restaurant update. Do we want to surplus the charbroiler that we had to replace? We may just want to do that now so that we can get that out as soon as possible.
Mr. Deane: Motion to get rid of the charbroiler that was replaced. Ms. VanSickle: Second.
Ms. Pontious:	We have a motion from Borden and a second from Brenda to
surplus the charbroiler.

On MOTION by Mr. Deane seconded by Ms. VanSickle with all in favor, motion to surplus the charbroiler in the restaurant that was replaced was approved.

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Ms. Pontious:  We don't want to store any more then we have to.  I have a couple of items I would like to think about making adjustments to for our 2019 budget while we are talking budget. On page 3 of the financials for 2018 we are already over budget on our operating supplies and the office supplies. We have a budget of $4,000. We are already at $4,200 with a lot of time to go. Operating supplies are $25,000 and we're at
$25,900 and we still have months to go. For gas we had $15,000 and are already at $22,000. I think we need to think about upping those items in the budget for 2019 if we are already at the max for 2018. So if you would make note to change those for us, please. Do you want to talk to us about these windows while you are doing capital things?
Ms. Wells: At the last meeting Supervisors approved for the capital project to replace the ballroom windows. The windows that were presented with that quote were a tempered glass that withheld up to 140 mph winds. There was a question at the Board meeting if it was impact resistant.  We reached out to the vendor.  The tempered glass isn't necessarily what is considered impact resistant. They gave us a quote for replacement with impact resistant which would also upgrade the aluminum framing. The original quote was $32,347.36.   To increase would be $56,000.   That would be to replace the windows facing the lake with the impact resistant which doesn't necessarily prevent the window from breaking, it just prevents from intrusive. There is a membrane in the middle of it that would not explode, he said it was missile tested. I was like ok so if there is a hurricane nothing is actually going to come in. The glass may break. We still would need to get it replaced but there is not going to be an intrusion into the ballroom. In the email I included an excerpt from the www.floridabuilding.orgjust explaining what the impact resistant windows were comprised of.
Mr. Ference: Rey explained that to us before he left, so we are just making a motion to accept that proposal.
Ms. Wells: It would just be a change order. I signed it just to get the ball rolling because I know we wanted to get it going but they are waiting for us to call them as soon as this meeting is over to do a change order to change the materials.
Mr. Ference: I make that motion.

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Ms. VanSickle: Second.

Ms. Pontious: We have a motion from Bob and a second from Brenda to do a change order to change the windows from the regular glass to the high impact resistant windows. Any further discussion?
Mr. Deane: According to what Rey said, the 140 mph was pretty good and he was more or less not worried about the hurricanes but tornados. Impact resistant is not going to stop a tornado anyway, so I don't know why we need to spend an additional $30,000.

Ms. VanSickle: I thought Rey said he would recommend the impact resistant. Ms. Pontious: He did, but it is not his money.
Mr. Deane: It is our money. Ms. VanSickle: That is true.

Mr. Deane: These have been in here for 15 years and have never had anything go through them. Yes, they leak. I understand that. That is why we are replacing them. We are not replacing them because they have been broken by impact or anything like that. These are guaranteed up to 140 mph. Why do we need to go any higher and spend another $30,000? I don't think it is necessary.
Ms. Pontious: What do you think, Matt? When you talked to them about 140 mph winds, did you think that seemed to be sufficient until this issue came up?

Mr. Fisher: I am on board with Borden. I believe 140 mph winds being able to sustain that is more than enough. He was all happy when we mentioned impact resistant because of the increased cost. I would stick with the lesser 140 mph.
Ms. Pontious: Our primary concern with the windows has been the water intrusion and the damage to the floors, walls and things like that.  I think that.was our goal in the beginning was to decrease the water, I don't know.
Ms. VanSickle: Would the impact resistant stop the water?
Ms. Pontious: I don't know.  We are worried about the little things.
Mr. Fisher: One thing he told me is we were having water issues and he is like you might still have water problems.

Ms. Pontious: Even with the big ones.
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Mr. Fisher:  With the impact resistant there still maybe water intrusion but there won't be an object coming into the ballroom from the outside. We haven't had that problem since the building has been built as far as I know.
Ms. Pontious: I guess if we get more than 140 mph winds we are going to have a lot more trouble than just windows.
Mr. Deane: That is right.
Ms. VanSickle: Can I withdraw my second? I was looking at the water.  Water is a lot of damage, but if it is not a guarantee against the water intrusion than I think the tempered is fine.

I

Ms. Pontious: We already have a motion so we can just vote and if it goes down it does it that way too. Those in favor of the high impact windows? Those opposed?
On MOTION by Mr. Ference seconded by Ms. VanSickle with all opposed the motion to install high impact resistant windows in the ballroom for $56,000 failed.

Ms. Pontious: We are going to stick with the regular windows and save $30,000.
Ms. Wells: I just told Matt it was mentioned at the Board meeting, we just need to bring it to their attention just so they know and it is up to them whatever decision they want to make, that way we know if anything happens.
Mr. Deane: You blame us.
Ms. Pontious: Do you have anything else for us? Ms. Wells: I do not.
Ms. Pontious: I have somethings for her.  We are driving this poor lady crazy and she doesn't need that. So my first  issue is we are having residents who want to stretch the parameters. Our fee schedule, we have a paragraph in here that I have probably read in the last week 100 times and I still don't get it, so we really need to clear this up so that she knows what to tell people. She is really concerned about being fair and consistent and we need to help her do that, so in here the first paragraph of this is pretty good. It says because we all pay our fees we get to use the amenities. The issue comes in where people are wanting to use the facilities for profit making ventures and for groups of people
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coming in to participate in activities they might want to have so the first part of this is good, then it says residents wishing to reserve the clubhouse ballroom or other facilities for functions where 50 people or more are in attendance. So does that mean 50 people in total because we already said everybody has to be a resident or does that mean 50 people with guest passes because now we have gotten into the guest pass business? I think we need to clarify. We are saying a resident has the right to use the ballroom and make a reservation.  That part is good.  It is when they start inviting additional people and who those people might be that the fees then changes from free to paying 50%, so we really need to clarify that. I thought we had an issue that said if you had over 50 people from the outside then you pay.  This does not say that.  This says where 50 people or more are in attendance. So then what do we do from O people to 50 people?
Mr. Ference: If they are members of the community nothing.
Ms. Pontious: Right but we are not doing anything if it is more than 50 people as long as they are all residents of the community.  It is when the guests start coming. I really think we need to define this and work on it so that we know and everyone else knows. If that is our intent if we have more than 50 people from the outside then you pay the half fee then we need to spell that out.  If we are going to stick with if you are using it for profit making, then you should pay, then we need to have that spelled out because right now it says you can, but you can get a waiver.  Well then the waiver is for brothers, sisters, grandchildren and so forth.

Ms. VanSickle: I think we really need to clear that up because I think when it starts talking about relatives and I don't have it in front of me, didn't we talk about if you were having a wedding or a birthday party or something for family members you have people from outside? That is one thing. When you start having a moneymaking endeavor and you start inviting from outside or you start having activities in here where you have outsiders coming in, we are getting to the point now that a lot of our activities don't have enough room for our residents. I got a rather long text yesterday from an upset resident. She couldn't get on a bus trip and said there were nonresidents going. That is something we definitely need to look at. It might be where our buses don't fill up, do we want to

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allow guests, but I think we need to allow our residents to have that first option, just like our shows. We are supposed to be doing this for our residents because they are paying the fees. If you start having guests take up spots that residents want, we have an issue.
Ms. Pontious: Ok so let's deal with that one first. You have buses going places and we have people from Lake Ashton wanting to be on those buses but we have people with guests, so we are going to say no guests. Lake Ashton residents only until what?
Ms. VanSickle: A week before.
A resident: Is that the bus trips you are talking about? Ms. Pontious: Yes.
Ms. VanSickle: I think we need to give our residents ample time, but if the bus doesn't fill up.
Ms. Pontious: So we can fill it with residents then have a guest list. If it doesn't fill up those people can be called. First come, first serve order. Can you live with that?
Ms. Wells: I can. Do we want to put a timeframe on it? The only thing I was thinking of is that some of the trips, Small World Tours has us give them how many people are signed up, it is sometimes more than a week or two to make sure the trip can still happen. So if they say they need to know a month in advance how many people are signed up and if there isn't a certainnumber of people signed up, then they have to cancel the trip. I like the idea of doing a guest list like these are the people that would like to go, but are we doing a time limit?
Ms. Pontious: Do we need to do a time limit or does she just need to publish in the document when it goes out for the trip?
Ms. VanSickle: Residents sign up by a certain date and after that date guests can. Ms. Wells: It can vary based on what their deadline is. Each changes for each trip.
Ms. VanSickle: That would be fine but residents have first choice. We don't need to deny residents trips.
Ms. Wells: So residents sign up a certain deadline, whatever Holly gives me as the deadline, then after that point guests can sign up.
Ms. Pontious: Is that going to accommodate your needs?

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Ms. Wells: I just wanted clarification so that I know.  I want to treat everybody the same when they come in, but I also don't want to have a trip cancelled and we have guests that couldn't go and the trip could have went so residents could go.
Ms. Pontious: Then it is the same kind of thing with the shows and things as they come out, too. So we need to address are we just going to say residents only. I think we talked about that a couple of months ago.  We said residents only.  Then there is a point where she is going to have to cancel a show or do something different if it doesn't fill. We can do the same thing with that.
Ms. VanSickle:  For our extra shows yes, but our entertainment series I think that needs to stay strictly residents only.  We need to add something in there if a resident can't go, the ticket they can sell or give their tickets to other residents. We shouldn't have outsiders attending those shows when we have residents that can't get them. There are always Bargain Bay people looking for tickets.
Ms. Pontious: So they can sell their tickets to other residents. But we have people buying tickets and giving them or selling them to people outside the community.
Ms. VanSickle: That needs to stop.
Ms. Pontious: So no entertainment series tickets sold to anyone but residents and no one should be coming in the door from the outside for an entertainment series.
Ms. Wells: I just want to clarify one thing.  So if a resident purchases their tickets and can't attend the show and gives it to a guest of theirs to attend that is not happening.
Ms. Pontious: As long as they are Lake Ashton people.
Ms. Wells:  So like someone's sister that lives outside of Lake Ashton can't come in. The seat would just go empty or go to a Lake Ashton resident. I just want to clarify because those are some of the questions I have been getting is that they want their friend or their sister that lives not far away to come to the entertainment series because they can't come.  I just want to make sure it is completely clear.
Ms. VanSickle: We have to accommodate our residents first.
Ms. Wells: Ok. I am fine with that. I just want to clarify that entertainment series tickets have only been sold to residents of Lake Ashton? It is just what happens to them
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after we sell them to the resident. Now when we go to market for entertainment series for 2019 we will just state in there that if you are selling or giving away your ticket it has to be filled by a resident of Lake Ashton.
Ms. Pontious: Ok what else?
Ms. Wells: I know we have mentioned the additional shows, not the entertainment series, some of the shows that we are doing recently we have had low attendance. I just don't want to get to the point where we have to cancel a show and we start losing a significant amount of money so I don't know if there is a time limit or if there is a certain, like this section is for residents only and this section is for nonresidents. I am open to ideas. I wanted to just bring it to the Board and see or if we want to say if by this time we still have seats available it can go out to nonresidents.
Ms. VanSickle: I'd hate for us to lose a show, but I think our residents need the opportunity for those front row seats first. We don't want somebody buying 8 tickets and selling them outside. We want our residents to have the opportunity to get the best seats and give them whatever timeframe and itmay vary fromshow to show. I will leave that to your discretion, but up to a certain point residents only and after that guests.
Ms. Pontious: Then do we want to stick to our concept of before where people can only buy the number of tickets of residents in the household, anything beyond that is a guest thing and it goes on a list until there is guest seats available.
Ms. VanSickle: Yes.
Ms. Wells: So we are going to do that for shows as well. Tickets are for residents only so when a resident comes in and says they want to buy 8 tickets I need to make sure all 8 tickets have names next to it and all names are residents.
Ms. VanSickle: Residents say they are coming in and buying tickets for six people if they are all Lake Ashton residents I think that would be fine. They like to sit together. They go outto dinner together. I don'thave a problem with that but they have to be Lake Ashton residents. They have to have first and last name on those tickets.
Ms. Wells: So no guests can come to any show or event that is put on by CDD. Ms. VanSickle: Until after a certain date.
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Ms. Wells: We can do it after a certain date.
Ms. VanSickle: Initially no. Carol's idea of the guest list I really like that.
Ms. Pontious: It is more work but if you get a name and phone number as to where you can call.
Ms. Wells: I amjust trying to figure out the residents that come upandhave guests that they want to take to the show they both would kind of go on that guest list. The resident is not going to want to go buy a ticket and then hope that their guest can go and they sit in different rows. So we would probably  put both on them down  on the guest list and say since you want to bring a guest then you have to wait till this period of time. Make sure there is availability and then you are more than welcome to buy a ticket for you and your guest. I just want to make sure that is clear so when staff tells residents they know that is direction coming from the Board and not just a rule we are making up. Ms. Pontious: I just think we want to be sure that the residents always come first.
Ms. Wells: Yes.
Ms. Pontious: I would be happy to sit down with Christine and rewrite this and bring it to you for approval. The residents for business use I want some direction on that. We still want to charge them the 50%?
Mr. Deane: Yes.
Ms.  VanSickle: Yes because I think that otherwise we start for business use it is going to be booked constantly and residents aren't going to be able to book social events. Ms. Pontious: I think in the beginning, I think our policy was that there was no business usage for residents here at all. Christine brought up a valid point that we are soliciting business from outside people to come in so we can't really deny our own people the right to do that if we are soliciting business from the outside. If we say as a person if you want to come and use it for your family it is free. If you want to come and hold a seminar for people and you are an insurance agent, then that is a business purpose. You
are making money and if you are making money you should be paying 50%.
Ms. Wells: So they would pay half if it is a resident that has business or they would pay the full amount?
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Mr. Deane: They would pay half.
Ms. Wells: That is the clarification I wanted. Ms. Pontious: Ok.
Mr. Deane: Being a resident they would get a break.
Ms. Pontious: We may have to change that as we get busier too. If the rooms are needed for activities for residents then we don't want them to be in there for profit­ making ventures. So you will have to monitor that as well and let us know how that is working. Then the 50 residents or more, are we intending that to mean 50 residents from the outside?
Ms. VanSickle: I think that came into effect under a previous Board and was aimed at a certain activity that happens in this ballroom. Maybe that just needs to be deleted unless it is a valid number.
Ms. Pontious: Ok so it is free if it is for them and their immediate family. If it is going to be a wedding or something of that sort they pay 50% .
Ms. VanSickle: If it is more than 50 from outside.
Ms. Pontious: I kind of rewrote it and that is exactly what I did was I took it out. So 50 or more is fine as long as they are all Lake Ashton residents or family. When we start bringing in weddings and things like that then they should pay the 50% . We have expenses, too. In addition to your resident fees, there are expenses for cleanup and so forth. Ok I will work on that for next time and have that rewritten but I wanted your guidance before I typed it out. I have it written and we will go from there. Anything else we need to clarify for you?
Ms. VanSickle: I have one more thing.  The letter that this Board wrote.
Ms. Pontious: Oh yes I have that here, too. This was the letter that stated that if you were a Lake Ashton club, group or organization all your members must be Lake Ashton residents. In order to use the publications primarily they all had to be Lake Ashton residents. If you are not then you are not a Lake Ashton club, group or organization. Apparently, Christine and Mike met with Mary and Stan and the West had some opposition to some of the things in here.  I think our decision was to not wait for
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them to get on board and we were going to send the letter out anyway. I was in Christine's office yesterday and we are already having conflicts with reserving facilities for next year so we need to be careful that these are Lake Ashton people. Is that good?
Ms.  Wells:   Yes,  and I just  want  clarification  that I am sending it  to  just clubs, groups, and organizations that meet at the clubhouse?
Ms. Pontious: Yes.
Ms. VanSickle: Or anyone that wants to use the media. Ms. Wells:  That is where we get into the grey area.
Ms. VanSickle: That is a grey area, but if you don't want to send it out to them, when it comes time to use the media that will become an issue. I would rather be onboard with notifying everybody what the issues are.
Mr. Stan Williams:  Excuse me, I was in that meeting.  Mike also had some concerns with  that it  wasn't  just  the West  that had concerns with  that.   Some of  the concerns especially came up around the political groups. There are a couple of other groups that combined people from the outside and that is where the issue Christine if I am stating that correctly, that is where we had a concern. How do we want to handle those? You have the Democratic Club, the Republican Club, Weight Watchers and a few others.
Ms. VanSickle: We need to be consistent across the board.
Mr. Williams: What is it going to be? So that was where we had the conversation. I know Mike also had concerns in that area or at least I am pretty sure he did. I think he was a little concerned about it also.
Ms. Wells: I guess I don't recall where Mike was concerned. That is why when I was in the meeting I said I want to be very clear that we are talking about this because they basically already looked at the letter.
Mr. Williams:  You were asking Mike to speak up.
Ms. Wells: I didn't know at that point that he wasn't going to be at this meeting. I was hoping that we could all discuss it because I know that they told me 30 days which was over 30 days.  If you guys want to wait till we hear from Mike to see.  You guys were very adamant and I mentioned it three times when we were meeting with them is that
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you guys were very adamant on you already basically approved this letter, that if it wanted to go out.  I don't know if you want to wait to hear from the fifth Board member to make sure that there is a no.  I don't recall to be completely honest with you.
Ms. VanSickle:  This was a unanimous decision. Mr. Deane: Yes, it was.
Ms. VanSickle:  I think we go ahead with it. We have to be consistent.   We cannot start making exceptions. If we make exceptions for the Republican Club, for the Democratic Club, for Weight Watchers, then what about all the other groups. What applies to one needs to apply to all of them. We are growing so we need to be consistent, we need to be fair. We need to look out for our residents. I think all the groups need to be put on notice because one of the perks of being a resident is being able to reserve that room and being able to use that media. Otherwise there is a charge for that media. I feel very strongly about it. We already voted on it. It was unanimous.
Ms. Wells: I just want to be clear about the media use because then if it is someone who solely meets at the HFC but they are using media here, I just don't want to get into a battle where I am sending a letter out. Everyone uses media that meets either at the HFC or here. If I am sending a letter out that is stating you can't use media and I am sending it to just groups here.
Ms. VanSickle: That is not fair.
Ms. Wells: That is what I am saying, but I don't want to step on anyone's toes and say I am going to send it out to every group whether you agree with this letter or not whether they meet here or there.  I just want to be completely clear with that.
Ms. VanSickle: We need to be very consistent.  We need to be very fair. I think in our amended policy to use the media you have to be under this every member is a resident. It says that very clearly. I think because we are having people that can't get into events we need to start enforcing it. I think up to this point it has been kind of loose.
Mr. Williams: So does that mean if for instance Weight Watchers who meets over at the HFC wants to use the media they can't use it also?
Ms. VanSickle: Yes, they have to follow the same rules as everybody else.

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Mr. Williams: Even if it is going to be in the HFC? Ms. VanSickle: That is the way that it is written yes.
Ms. Wells: And that was the thing. The reason the letter got brought up then is because we are meeting to come up with a common amenity facilities policy. Currently, their amenity facility policy includes the same verbiage as ours when it comes to that. I think that was the only section. We agreed on every other section but that section.
Mr. Williams: I don't know where the Republican and Democratic Club meets now, but they could be at the HFC and then use your media.
Ms. Wells: That is why I wanted to be clear.
Ms. VanSickle: I think it needs to go out Lake Ashton wide, these are the rules and regulations. If they don't want to do it, fine. What we have been trying to do is make things more uniform, but if we are disagreeing on them I think we have to be consistent for what we do. Access to media is a privilege for the club, group or organization. If you are not meeting the definition of that I think you should lose your privileges.
Ms. Pontious: Did we not make an exception to it was the media that we pay for but they can do Monday Coffee? They can stand up and speak at Monday Coffee.
Ms. VanSickle: Yes, anybody can stand up and speak at Monday Coffee.
Ms. Pontious: It is the media that we pay for that other people are paying for if they are doing things from the outside. Ok can we live with that then?
Ms. Wells: I just want to make sure that I am being asked to send this to every club, group or organization whether they even meet at the clubhouse and that it is coming strictly just from us.
Ms. VanSickle: Just put that it is for informational purposes only. We are planning on enforcing this and we want to notify everybody. At some future point they may want to meet here. Ideally we would havethe same rules, but if there is a slight difference now I think we need to go by our amenity policy.
Ms. Wells: And it is going to come from only me to everyone. I will do whatever you guys tell me to do.
Ms. Pontious: Just put on here LA CDD I.

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Mr. Deane:  Sign it the Lake Ashton CDD Board.
Ms. Wells: Ok, but send it to every club, group or organization that meets here, there and anywhere.
Ms. VanSickle: Are we all behind it? Bob? Mr. Ference: Yes.
Ms. VanSickle: Sign it CDD I.
Mr. Deane:  That is all you have to do.
Ms. Pontious: At least we are moving in the direction.
Ms. Wells: I guess now would be the time if there is no other changes to the letter, just keep it exactly the way it is and we will just change it from regards all of your names.
Mr. Deane:  That is fine.
Ms. Pontious: Yes. Do you have anything else for us? Ms. Wells: I believe that is all I have.
Field Operations Manager
Monthly Report
Consideration of Replacement Options for Ficus Trees in Front of Clubhouse Ms. Pontious:  Ok, Matt.  I think we are ready.
Mr.  Fisher:   Good morning.   In the package is the  operations manager's report.
Any questions I would be happy to answer.
Ms. VanSickle: We think you are doing a wonderful job, Matt. Thank you.
Mr. Deane:  Matt, I just want to thank you for everything that you and your helpers have done with assisting in the restaurant.  It has been fantastic.  Thank you very much.
Ms. VanSickle: I like the point that Rey made this morning when he said we are in very good hands with the young people we have working for us. Christine and Matt, we really appreciate both of you. I would like everybody to give them a round of applause.
Mr. Fisher: Included behind that report is some pictures of possible replacement trees for the ficus trees. There are five ficus right outside the ballroom here. One is tucked behind a bougainvillea and we would just remove that. Replace the four between the windows. There is a Japanese blueberry we could put in there or a podocarpus.  I have

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heard several like the blueberry just because we already have some around the clubhouse. What is wrong with the ficus is, it is normally an inside bush and it is not thriving outside anymore. It really got hurt last winter. It is not bouncing back. That part of the building is really a focal point corning off the Boulevard. Seeing those sticks it looks horrible. These are some prices. We are recommending the blueberry as a replacement.
Mr. Deane: If that is what you are recommending Matt, then that is what we think we should do.
Mr. Fisher: I appreciate that.
Ms. Pontious: Those trees are just getting old too. Sixteen years is a long time for bushes to last.
Mr. Fisher: If you see the bottom of the bushes they are kind of rotting. Ms. Pontious: Ok is there anything else you would like us to do?
Mr. Fisher: That would be it on your part. I arn working with Yellowstone around the clubhouse to replace some of those dead bushes that are covered under the warranty. We are removing some of those dead Indian hawthorns that are in the middle. I was thinking let'sjust go with the topiary bush with the focal point at the center of the garden. We don't need those hawthorns out there. Other than that everything is looking good.
Ms. Pontious: I would like to see them one day pull out a dead bush which is as it should be that they replace it with a live bush rather than leaving a hole.
Mr. Fisher: Ok.
Ms. Pontious: Up around the pool area they have taken out some bushes that probably need to be replaced. Sometimes they will grow and fill in but if it is obvious they are not going to do that. Sarne thing on the Boulevard. We have lost a lot of shrubbery out there.
Mr. Fisher: The purple bush out there that is on the outer part of the median I have seen some holes in there. I agree.
Ms. Pontious: It doesn't have to be expensive stuff. The ground cover and things you know is fine but it is when you see the obvious holes.
Mr. Fisher: Ok.

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Ms. Pontious:  The one other thing we need to do is these two are our focal points but we also have Valerie and Terisa and LouJean who have been working diligently to get this restaurant moving and probably taking over some of your tasks while you have been working on this.  We appreciate their efforts as well.  I told Christine yesterday she just needs to go in her office and lock her door and get some work done. She is taking all this home with her at night so that she can get work done that she is being responsive to the residents during the day. I think she at least deserves an hour a day where she shuts that door and get some work done. Although we appreciate LouJean's efforts, LouJean is a retiree and I am sure she would rather be retired on some days. She needs to find us that next person to come on board so that we have a full staff again.
Ms. Wells: Job number one. Mr. Fisher: Thanks, again.

CDD Manager - Discussion on Fiscal Year 2019 Budget Ms. Pontious:  We have the CDD manager's report.
Ms. Burns:  We looked at the past history of meetings and wanted to leave it up to the Board if you wanted to have your discussion on your fiscal year 2019 budget at your July regular meeting or if your preference was to have a separate budget workshop. I am not sure if we wanted to hold two or just do it at the same time.
Ms. Pontious:  July meeting is good.
Ms. Burns: Alright we will do that. That was our thought but we saw that the Board had chosen both ways in the past so we wanted to leave that up to you. We will put that on the agenda for the July meeting.

EIGHTH ORDER OF BUSINESS	Financial Reports
Approval of Check Run Summary
Combined Balance Sheet
Ms. Burns:  That was included in your package.  The total for the general fund was
$118,677.92. The total for the capital fund was $39,114.75. We would just be looking for approval for the check run.
Mr. Deane:  Approval for the check run summary.

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I

Ms. Pontious: We have a motion from Borden and a second from Bob to approve the check run summary.  Is there any further discussion?
On MOTION by Mr. Deane seconded by Mr. Ference with all in favor the check run summary was approved.

Ms. Burns: The next is just the combined balance sheet for informational purposes only. No action but if anybody has any questions. I did note to look at those three items you referenced for the 2019 budget so we will address that at the July meeting as well.
Ms. Pontious:  Anything else?  One another thing I was going to check with Matt about and forgot. We seem to go through an awful lot of paper products around here. I noticed that the HFC has changed to some electric hand dryers. What do you think about doing something like that versus all the paper?
Mr.  Fisher:  That  is  a  good  option.  I  can  definitely  look  into  that  and  have something next Board meeting.
Ms. Pontious: That would be great.  We still need paper because we need to clean up spills and things, but at least in the restrooms. Are they working well over there, Jim?
Mr. Jim Mecsics: Yes.
Ms. Pontious: It is less paper coming in and less paper going out. I think that might be a good move.
Mr. Mecsics: Why don't you have Matt talk with Mary?
Ms. Pontious: Alright. If she has already had prices received that is a good thing. Ms. Wells: Do you do a combination of paper and hand dryers in the bathroom? Mr. Williams: Yes.
Ms. Wells:   Is that what you would want us to look into as well is just doing a combination of paper and hand or just hand dryers. I see and yes and a no.
Ms. Pontious: I personally don't like hand dryers but I think it would be great to get rid of the paper.
Ms.  VanSickle:  Some of the reading I have done on sanitary is that the paper actually gets the germs off the hands. It is more sanitary so I am more sticking with paper.

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June 8, 2018	Lake Ashton CDD

That is me. We might want to do some more research on that.
Ms. Pontious: Ok.
Ms. Wells: We will bring options for both at the next meeting.
Ms. Pontious: Alright I think we have reached the point for public comments.

NINTH ORDER OF BUSINESS	Public Comments
Ms. Pontious: Who would like to speak with us today?
Ms. Landgrebe:  Good morning.  Debby Landgrebe.   There is a couple of things I have for your budget next year is about a generator for this building. It came up at Monday Coffee and hurricane preparedness, I know CERT has discussed it frequently so
something to consider. Also in regards to the amenities and guests I am assuming guests is anyone not a resident, is that correct? I am just trying to understand if the purpose of our trips and our shows are for our residents and then you have a guest list which is a nice idea but that still opens the door for other people who live nearby or outside of here. Is that correct and they would pay the same amount as we would?
Ms. Pontious: Only if we need help in survival of the event yes.
Ms. Landgrebe:  I do have a concern about a resident who has a business can rent the facilities for half price.  I am a resident.  I pay my amenity bill and if I have a party and not having my relatives, my extended family, I have to pay half price correct?
Mr. Deane: No.
Ms. Landgrebe: So even my extended family. Ms. Wells: Yes.
Ms. Landgrebe: If I own a business it is not paying amenity fees. If I choose to rent this facility as a business I should pay full price. You almost have to separate the person and their business. Half price fee is a good deal. I am a resident, I want to use the building for my own use but I am now going to compete with a business and I don't think that is the intent of our amenities. I thinl< a business is a business and they should pay full price.
Ms. Pontious: You have a valid point. Ms. Landgrebe:  Thank you.

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June 8, 2018	Lake Ashton CDD

Ms. Pontious: There was someone else before.
Mr. Turner: Good morning, my name is Bob Turner. Just a comment on the golf course situation. I was wondering why we were considering purchasing the golf course. This is an amenity we all purchased when we all bought our houses. I know it is owned by the developer, but part of the planning process is that he has to provide open space. That is essentially what the golf course is. The open space provision is being turned into a golf course. So we have the right to use it. Why do we have to consider paying $400,000 to buy it cheap, they are telling me unless it is for the purchase of the Eagles Nest and the equipment? That is a different thing altogether. The actual golf course itself we got the right to use it or if we haven't gotten the right to use that golf course, the developer has to transfer that open space provision somewhere else so we can use it elsewhere. He can keep the provision here if he wishes but he has to give us open space provision for development equally. In regards to the golf carts tracks, that is part of their sidewalk provision. There are no sidewalks here around this development and in that situation the golf cart provision is in place of. So therefore that is why we were walking around the golf course if you remember or not. I just put the comment in would you consider that when you are $400,000 out. Whoever buys this is still going to need the same provisions because it is in the planning condition. I read the minutes back and where I come from as well there is open space provision in any development. I don't see why you should be buying it when you already paid for it. I think the new development people should be paying for the open space, if you look at contract you will see it in there. Thank you.
Ms. Pontious: I appreciate your comments, but I think you have some
misinformation.
Mr. Turner: In what respect ma'am?
Ms. Pontious: The golf course is privately owned. Mr. Turner: Yes, I agree with that.
Ms. Pontious: He can do with that property what he so chooses. Mr. Turner: No, he can't.
Mr. Deane: Yes, he can.

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June 8, 2018	Lake Ashton CDD

Mr. Turner: With respect, when you build any property you have to provide open space provision. It is his property, he can do what he likes according to the planning application. If he wants to put a revision in he can and build two million houses, but he then has to provide open space provision elsewhere to compliment what he is building.
He can build it two miles away, it doesnt matter. This place around here if you check the planning you will find the open space provision is required.   He can1t do what he likes with it, he can sell it for $2,000,000 or $10,000,000, but the person who buys it still
has to have that provision for the development.  You have 1,600 houses with nowhere to put their dogs, nowhere to walk anywhere apart from the road. There is no sidewalks which in planning they have to have if you check the regulations. Thank you.
Ms. Pontious:   You might have to cite for us where you are getting information and we will ask the attorney to check
Mr. Turner:  That is lovely.  That is fine.  I am not here to argue, I am here to make a comment.  I made the comment, you can dismiss.  At least I have been heard.   That is why I am here this morning. I am not here to contend with any of you.
Ms.  Pontious:   No, we like to do that.   We just don1t want the audience hearing information that may or may not be true.
Mr. Turner:  That is why it is a comment ma1 am.  You can dismiss me completely.
Ms. Pontious: Ok
Mr. VanSickle:  Jack VanSickle. Lot 573.  For the Board1s information the only place the golf cart paths are defined and talked about are in the plot of the development. I personally have that information sitting on my desk and it states that they are owned by the golf course to use within this community. They are owned, we do not have a right. The issue of sidewalks was an agreement between the City of Lake Wales and the developer to allow him to get more houses in here.  We have what is considered non­ standard roads and we would pay for those roads. If anyone wants to look at it I can show you the actual document that those are the facts. It is not going to change. The golf course owners control the cart paths at their will so they can shut it down at any time they want to, as well as our use of them.
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June 8, 2018	Lake Ashton CDD

Ms. Carpenter: Just for the Board's information Mr. VanSickle is correct. The city confirmed that the plat was permitted with no sidewalks because of the golf cart path but that they would not require those to be made public. So there is a chance that if somebody went for rezoning or resold them that there would be an issue with that.  That is correct.
Mr. Turner: I agree with what was said and if they did remove the provision for the sidewalks, which they are entitled to do, I have no problem with that at all, but they probably have to pay to somebody that walked down the road without getting run over. If they do that provision there would be no sidewalks here at all. They need to provide sidewalks. I know there is grey areas all around but the bottom line is the agreement they reach with any developer whoever it is, they have to have some provision to be able to walk a dog or to walk just down the street. There is that provision. If they withdrew if from the golf course, no argument with any of that, I am saying they need to provide some facility for people to walk along the road and that is where the argument comes in. If they want to keep it open to the public that is fine or if they try to outsource it fine, but the provision must be there and that is where the dispute comes.
Mr. Zacharia: Murray Zacharia, Lot 373. I really was trying very hard not to get up here like I usually do, but I found myself agreeing with Debby, which I have never done before. Regarding fees and amenities and use of facilities and that whole discussion, I agree with her in charging a resident 50 cents on the dollar to use the facility for business purposes is inconsistent with what I believe is the policy for residential owned businesses to take out ads in the media. If someone who is a resident wants to have an ad in the LA Times is not paying 50 cents on the dollar and that the cost of that ad is the same for him as it is for South Florida Garage, it leads me to believe that we mightjust be creating more inconsistencies in the applications of things. I would ask that you reconsider the vote you had earlier today at a future date. As long I am talking about things the decision made by CDD I about the entertainment series and charging people and guests I believe was on the right track to getting the two Districts together and the two HOA1 s and the two sides of Lake Ashton to work together. That decision drives another spike between the two sides. I believe that decision is one that needs to be made a joint CDD meeting.
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June 8, 2018	Lake Ashton CDD

Ms. Pontious: Anyone else? Ok, do we want to reconsider that decision based on some things we have heard? I just asked Christine about what they pay for the ads.
Mr. Deane: They pay full price.
Ms. Pontious: They don't, they get a 5% discount, residents who advertise.   Are we happy with what we did?
Ms. VanSickle: I think we need to give our residents a perk and we have outside vendors coming in that we solicit to. I know they pay but not necessarily for the room but they pay for a perk or something else. I think we need to offer our residents the opportunity that we are offering outsiders. There is a fine line between a service to the residents and making money off our residents. So maybe that we need to look into. Do we have a history on any of this Christine? I don't think we do. Residents booking rooms?
Ms. Pontious:  In the past we have done a lot of it.  Have we?
Ms. Wells: You have some residents here who represent different insurance firms that have used the facility to do seminars and things like that. I just want to make sure I am understanding this right is that you had said we haven't allowed residents to rent a facility if it is for commercial. If they work and they live here and they want to rent a room, I think it is more of a question of what we are charging them. Are we charging them full price or are we charging them 50 % off because they are a resident here. They are the primary beneficiary of the reservation. So it is a question are they or the company the primary beneficiary of the reservation? That would determine whether it is full price or half price.  If the resident is the primary beneficiary it is half price.  If it is the company the primary beneficiary it is full price.
Ms. VanSickle: How difficult is that to determine?
Mr. Ference: That is a distinction without a difference.   If I work for a company and I am being paid by them whether it is health care or anything else, then we are both profiting from it so it is a distinction without a difference.
Ms. Wells: It is hard.
Ms.  Pontious:   I just don't want to get to the point either where our rooms are beginning to fill up with residents who have businesses and it comes kind of first come,
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June 8, 2018	Ashton

first serve basis and now people can't play cards or do those kinds of things that residents like to do because the rooms are being used for seminars. We may have to revisit that.
Ms. VanSickle: Put that on our agenda for next month.
Ms. Pontious:  We can do a little more research and revisit that.
Ms. VanSickle: When we have a group that offers a dinner do they rent the hall or do they just make the restaurant give the residents a free dinner or meal ticket? There is a lot to be said for that. We just want to make sure this is equitable. They don't pay for the room in addition to the dinner and tickets, do they?
Ms. Wells: They historically haven't. If they are providing something for a resident and it is residents only that are in attendance at that event. If they are providing a dinner and a ticket they do not pay for the rental of the room. If they are renting a room just to do a presentation not providing anything for residents of substantial nature then they are being charged for the room. That is why I just want the clarification because it is easier to be black and white.  This is what it is.  You don't have to think about what are you providing, is it substantial? Is it not substantial?
Ms. VanSickle: We want to make your life easier, too.

Ms. Wells: I just want to be the same for everybody. There are quite a few residents that still work for companies whether they are independent contractors. See that is the thing if they are an independent contractor, are they technically the beneficiary if they are working for a company? I just want clarification with that. Whatever the Board wants me to do, whatever they want me to charge I am all about revenue, but I want to be fair because I know that residents pay for the O&M fees.

Ms. Pontious:   Let's wait for next month when Mike is here, too, and we can address it.  We can get some resident feedback in that time and see.  We don't want to make a mistake.  Have you changed your mind and you would like to speak to us or are you waiting for its time to go home?
Mr. Price:  David Price.  I am just referring here to what I think it should be.  All comments should be limited to 3 minutes unless additional time is granted by the Chair. I don't think you need to be up there carrying on for more than 5 minutes. It is boring.
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June 8, 2018

Ms. Pontious: Ok, thank you.

Lake Ashton CDD

TENTH ORDER OF BUSINESS
Ms. Pontious: Now you are late, Bob.
Mr. Ference: I make a motion that we adjourn this meeting.
Ms. Pontious:  Thank you for joining us and we will see you next month.   Same time same place.

Adjournment

On MOTION by Mr. Ference seconded by Ms. VanSickle with all in favor the meeting was adjourned.

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Assistant Secretary/ Secretary

Chairman/ Vice Chairman

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SECUIUTY CONTRACT AGREEMENT
(Lake Ashton CDD)

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THIS SECURITY CONTRACT AGREEMENT ("Agreement") is made and enter into effective as of the	day of "'4 .Jr<::.-h   , 2017, between LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT (hereinafter referred to as the "District'�), a local unit of special purpose government created under Chapter 190, Florida Statutes, whose mailing address is 135 W. Central Boulevard, Suite 320, Orlando, FL 32801, and COMMUNITY WATCH SOLUTIONS LLC, a Florida limited liability company (hereinafter refen·ed to as "Contractor"), whose address is 1406 Deuce Circle, Davenport, FL 33896.
WI TNE S SET H:
Subject to and upon the terms and conditions of this Agreement and in consideration of the mutual promises set fo1th herein and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the District and Contrnctor agree as follows:
DEFINITIONS.
Agreement. The Agreement consists of this Security Contract Agreement and the Scope of Worlc The Agreement represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representation or agreements, either written or oral. The Agreement may be amended or modified only as set fo1th below in Article 8. 
Services. The term Services as used in this Agreement shall be constrned to include all Services set forth in Exhibit A, all obligations of Contractor underthis Agreement, including any addenda or special conditions,

SCOPE OF WORK.
A description of the nature, scope and schedule of services to be performed by Contractor under this Agreement shall be as follows: The security contract services as described in Exhibit A, attached hereto, and incorporated herein by reference.
The following List ofExhibits, all ofwhich are attached hereto and incorporated herein, is applicable to the Services :
Exhibit A, Scope of Work
Exhibit B, Price Sheet

COMMENCEMENT OF SERVICES . Contractor shall commence its Services on March 31, 2017 and shall perform the same in accol'dance with any schedules set forth in the Agreement, including but not limited to schedules set forth within the Scope of Work.

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Lake Ashton Community Development District Security Contract Agreement

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DISTRICT MANAGER.

The District's authorized representative (herein referred to as the 'Tiistrict Manager") shall be the District Manager of the District, which is Governmental Management Services - Central Florida, whose mailing address is 135 W. Central Boulevard, Suite 320, Attention: George Flint; provided, however, that the District may, without liability to the Contractor, unilaterally amend this Article from time to time by designating a different person or organization to act as its representative and so advising the Contractor in writing, at which time the person or organization so designated shall be the District's representative for the purpose of this Agreement.
All actions to be taken by, all approvals, notices, consent, directions and instruction to be given by, all notices and other matters to be delivered to, all detenninations and decisions to be made by and, in general, all other action to be taken by, or given to, the District shall be taken, given, and made by, or delivered or given to the District Manager in the name of and on behalf of the District; provided1 however, that the Disttict (and not the Disttict Manager or any other agents of the District) shall be solely obligated to the Contractor for all sums required to be paid by the District to the Contractor hereunder.
COivfPENSATION AND PAYMENTS.

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In exchange for the Scope ofWork described in Exhibit A, as determined by the District in its reasonable discretion, the District shall pay Contractor as described in the Price Sheet, attached as Exhibit B. Ammal payments, as noted in Exhibit B, shall be payable to Contractor by the District in equal monthly payments.
Work Authorizations shall mean orders or directives issued by the District. Work Authorizations shall be issued for special services or emergency services, changes to the scope of the area in which services are required, or for any services beyond those set forth in Article 2. Services perfonned under a Work Authorization may be paid either on a lump sum basis, a unit price basis, or a time and material basis in the District's sole discretion. Contractor shall not be entitled to compensation · for Services outside the scope of A1ticle 2 unless Contractor has obtained prior written authorization of District to perform the same.
District retains the right to reduce any portion of Contractor's Scope of Work as set forth in Article 2. Should this occur, a revised Scope ofWork will be agreed upon in writing by both District and Contractor.

REPRESENTATATIONS, WARRANTIES AND COVENANTS.

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Contractor hereby represents to District that: (i) it has the experience, qualifications and skill to perform the Services as set forth in this Agreement; (ii)it is duly licensed and pennitted to observe and perfonn the tenns, covenants, conditions and other provisions on its part to be observed or performed under this Agreement; (iv) has the necessary Lake Ashton Community DevelopmentDistrict

Security ContractAgreement
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equipment, materials and inventory required to perform the Seivices as set forth in this Agreement; (v) it has by careful examination satisfied itself as to: (a) the nature, location and character ofthe area in whichthe Services are to be performed including, without limitation, the surface conditions of the land and all structures and obstructions thereon, both natural and manmade, the surface water conditions of the area, and to the extent pertinent, all other conditions; and (b) all other matters or things which could in any manner affect the performance ofthe Seivices.
The Contractor warrants to the District that all materials furnished under this Agreement shall be new unless otherwise specified, and that all Services shall be of good quality, free from faults and defects and in conformance with the Agreement Documents.

EMPLOYEES; INDEPENDENT CONTRACTOR STATUS. 

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All matters pertaining to the employment, supervision, compensation, insurance, promotion and discharge of any employees of Contractor or of entities retained by Contractor are the sole responsibility of Contractor. Con1mctor shaU fu11y comply with all applicable acts and regulations having to do with workman's compensation, social security, unemployment insurance, hours of labor, wages, working conditions and other employer­ employee related subjects. Contractor shall obtain, for each individual Contractor employs on the District's premises at any time, a criminal background check perf01med by an appropriate federal or state agency, or by a professional and licensed private investigator, and shall make, based on the results of such background checks, employment suitability determinations for each employee that are reasonable and customary within the Contractor's industry. Contractor shall maintain copies of said background checks on file so long as the subject individual(s) remains in Contractor's employ, and Contractor shall make all background checks available for District's review upon request. Contractor shall enforce strict discipline and good order among its employees on the District's premises.

Contractor is an independent contractor and not an employee of the District. It is further acknowledged that nothing herein shall be deemed to create or establish a pa1tnership or joint venture between the District and Contractor. Contractor has no authority to enter into any contracts or contracts, whether oral or w1itten, on behalf ofthe District.

COMPLIANCE WITH LAWS, REGULATIONS, RULES AND POLICIES.
At all times, Contractor shall operate in accordance with all applicable laws, statutes, regulations, rules, ordinances, policies, permits and orders.

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{b) Contractor hereby covenants and agrees to comply with all the rules, ordinances and regulations of governmental authorities wherein the District's facilities are located, as said rules, etc. may specifically relate to Contractor or its services provided hereunder, at Contractor's sole cost and expense, and' Contractor will take such action as may be necessary to comply with any and all notices, orders or other requirements affecting the services described herein as may be issued by any governmental agency having jurisdiction over Contractor, unless specifically instructed by the District that it intends to contest such orders or
Lake Ashton Comlllunity Development District Security ContractAgreemcnt
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requirements and that Contractor shall not comply with the same.	Contractor shall provide immediate notice to the District ofany such orders or requirements upon receipt of same.
(c) The District is a local unit of special purpose government created in accordance with the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes. Contractor agrees to comply with all applicable requirements ofthe "Sunshine Law," the "Public Records Law," the Community Development Districts Law, and all other statutes and regulations applicable to Contractor.

WORKPLACE ENVIRONMENT AND PUBLIC SAFETY
Contractor agrees to provide a safe and healthy workplace environment for its  employees  and  agents  and  a  safe  and  healthy  environment for the  public  at  all  times. Contractor shall promptly correct any unsafe condition or health hazard in its control and shall immediately report any such condition to the District). In addition to all other requirements of this Agreement, Contractor shall comply with all federal, state and local laws and regulations related to health and safety. Further, Contractor acknowledges that all vehicles and equipment must be properly and safely operated and, where applicable, licensed and/or pennitted, to operate on public roadways. Contractor acknowledges that it is responsible for public safety issues including but not limited to: proper work methods, use of protective equipment, safe maintenance, traffic control through work zones, and handling and use ofmaterials, vehicles, and equipment.
(		(b) The Contractor agrees that it alone bears the responsibility for providing a safe and healthy workplace, and that nothing in this Agreement suggests that the District has undertaken or assumed any part ofthat responsibility.
Contractor will provide employees with training to perform their jobs safely, including instruction in proper work methods, use of protective equipment, and safe maintenance, handling and use of materials, vehicles, and equipment. Contractor will not ask or allow any employee to operate any vehicle or equipment until the employee has received all relevant and advisable training.
Contractor willfurnish, at its expense, all safety and protective equipment required or advisable for the protection ofemployees.

PUBLIC RECORDS AND OWNERSHIP OF BOOKS AND RECORDS.

Contractor understands and agrees that all documents of any kind relating to this Agreement may be public records and, accordingly, Contractor agrees to comply with all applicable provisions of Florida public records law, including but not limited to the provisions of Chapter 1 19, Florida Statutes. Contractor acknowledges and agrees that the public records custodian of the District is Governmental Management Services (the "Public Records Custodian"). Contractor shall, to the extent applicable by law:

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Lake Ashton Community Development District Security ContractAgreement
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Construction;

Keep and maintain public records required by District to pe:tfonn the

Upon request by District, provide District with the requested public records

or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes;
Ensure that public records which are exempt or confidential, and exempt from public r�cords disclosure requirements, are not disclosed except as authorized by law for the duration of the Agreement term and following the Agreement term ifthe Contractor does not transfer the records to the Public Records Custodian ofthe District; and
Upon completion ofthe Agreement, transfer to District, at no cost, all public records in District's possession or, alternatively, keep, maintain and meet all applicable requirements for retaining public records pursuant to Florida laws.

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IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTORS'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO TIDS AGREEMENT, CONTACT THE DISTRICT'S CUSTODIAN OF PUBLIC RECORDS AT (407) 841-5524 X 103, OR BY EMAIL AT GFLINT@GMSC:FL.COM, OR BY REGULAR MAIL AT 135 W. CENTRAL BOULEVARD, SUITE 320, ORLANDO, FLORIDA 32801, ATTN: DISTRICT PUBLIC RECORDS CUSTODIAN.

INSURANCE.
Contractor shall, throughout the performance of its services pursuant to this Agreement, maintain at a minimum:
Occurrence basis comprehensive general liability insurance (including broad form contractual coverage) and automobile liability insurance, with minimum limits of $2,000,000 and $1,000,000, respectively, combined single limit per occurrence, protecting it and District from claims for bodily injury (including death) and property damage which may arise from or in connection with the performance of Contractor's services under this Agreement 01· from or out of any act or omission of Contractor, its officers, directors, agents, and employees; and

Workers' compensation insurance as required by applicable law (or employer's liability insurance with respect to any employee not covered by workers' compensation) with minimum limits of One Hundred Thousand Dollars ($ 100,000) per occurrence.

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\...

Employers liability, with a minimum coverage level of$1,000,000.
Lake Ashton  Community Development District	 Security ContractAgreement

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c· 

All such insurance required in Paragraph ll(a) shall be with companies and on fom1s acceptable to District and shall provide that the coverage thereunder may not be reduced or canceled unless thirty (30) days prior w1itten notice thereof is :furnished to District; the insurance required under paragraph ll(a)(i) shall name the District as an additional insured. Ce1ti:ficates ofinsurance (and copies ofall policies, ifrequired by the District) shall be furnished to the District. In the event ofany cancellation or reduction ofcoverage, Contractor shall obtain substitute coverage as required under this Agreement, without any lapse of coverage to District whatsoever.

SOVEREIGN IMMUNITY. Nothing contained herein, or in the Agreement, or in the Terms and Conditions, shall cause or be construed as a waiver of the District's immunity or limitations on liability granted pursuant to section 768.28, Florida Statutes, or other law, and nothing in this Agreement shall inure to the benefit of any third party for the purpose ofallowing any claim which could otherwise be barred under the Doctrine of Sovereign Immunity or by operation oflaw.

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. INDEMNIFICATION. Contractor agrees to indemnify, save hannless and defend the Distdct, its officers, directors, board members, employees, agents and assigns, from and against any and all liabilities, claims, penalties, forfeitures, suits, legal or administrative proceedings, demands, fines, punitive damages, losses, liabilities and interests, and any and all costs and expenses incident thereto (including costs of defense, settlement and reasonable attorneys' fees, which shall include fees incurred in any administrative, judicial oi- appellate proceeding) which the District, their officers, directors, board members, employees, agents and assigns, may hereafter incur, become i-esponsible for or pay out to the extent arising out of (i) Contractor's breach of any tenn or provision of this Agreement, or (ii) any negligent or intentional act or omission of Contractor, its agents, employees or sub-contractors, related to or in the perfonnance ofthis Agreement.

.	MODIFICATIONS, ADDIDONS OR DELETIONS TO TIIE SERVICES.

A Work Authorization shall be in wdting by the District, which shall consist of additions, deletions or other modifications to the Agreement.

The District may, from time to time, without affecting the validity of the Agreement, or any tcnn or condition thereof, issue Work Authorizations which may identify additional or revised Scope of Services, or other written instructions and orders, which shall be governed by the provisions ofthe Agreement. The Contractor shall comply with all such orders and instructions issued by the District. Upon receipt of any Work Authorization, the Contractor shall promptly proceed with the work, and the resultant decrease or increase in the amount to be paid the Contractor, ifany, shall be governed by the provisions ofArticle 5 in this Agreement.
PROTECTION OF PERSONS AND PROPERTY: MONITORING.

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In addition to all other requirements hereunder, the Contractor shall be responsible for initiating, maintaining and supervising safety precautions and programs in connection with the Services, and shall provide all protection to prevent injury to persons Lake Ashton Conummity Development District
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involved in any way in the Services and all other persons, including, without limitation, the employees, agents guests, visitors, invitees and licensees of the District and community residents, tenants, and the general public that may be affected thereby.

All Services, whether performed by the Contractor, its Subcontractors, or anyone directly or indirectly employed by any ofthem, and all applicable equipment, machinery, matetials, tools and like items used in the Services, shall be in compliance with, and confonn to:
all applicable laws, ordinances, rules, regulations and orders of any public, quasi-public or

other governmental authority; and (ii) all codes, rules, regulations and requirements of the District and its insurance can-iers relating thereto. In the event of conflicting requirements, the more stringent shall govern.

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The Contractor shall at all times keep the general area in which the Services are to be performed, including but not limited to sidewalks, roadways, trails, rights-of­ way, open spaces, and all such areas impacted by the Services, clean and free from accumulation of waste materials or rubbish (including, without limitation, hazardous waste), caused by pe1fonnance  of the Services, and shall continuously throughout performance of the  Services, remove and dispose of all such materials. The Districtmay require the Contractor to comply with such standards, means and methods of cleanup, removal or disposal as the District may make known to the Contractor. In the event the Contractor fails to keep the general area in which the Services are to be performed clean and free from such waste or rubbish, or to comply with such standards, means and methods, the Disttict may take such action and offset any and all costs or expenses of whatever nature paid or incurred by the District in undertalcing such action against any sums then or thereafter due to the Contractor.

Contractor shall cooperate with and participate in, at no additional cost or charge, all programs, plans or routines for monitoring and reporting to Distdct, as required in the sole  discretion  of the  District,  to  ensure  satisfactory performance  of the  Services  provided hereunder.

SUSPENSION OR TERMINATION.

Anything in this Agreement to the contrary notwithstanding, District shall, in its sole discretion and without cause, have the right to suspend or terminate this Agreement upon thirty (30) days prior written notice to Contractor. In the event of termination, District's sole obligation and liability to Contractor, if any, shall be to pay to Contractor that portion ofthe fee earned by it, plus any earned amounts for Extra Services performed pursuant to Articles 5, through the date oftem1ination .

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If the Contractor should become insolvent, :file any bankruptcy proceedings, make a general assignment for the benefit of creditors, suffer or allow appointment of a receiver, refuse, fail or be unable to make prompt payment to Subcontractors, disregard applicable laws, ordinances, governmental orders or regulations or the instructions of the District, or ifthe Contractor should otherwise be guilty of a violation of, or in default under, any provisions of the Agreement, then the District may, without prejudice to any other right or remedy available to the District and after giving the Contractor and its surety, if any, seven (7) Lake Ashton Community Development District
Secmity Contract Agreement

7

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days written notice, terminate the Contract and the employment of Contractor. In addition, without terminating this Contract as a whole, the District may, under any of the circumstances above, terminate any portion of this Contract (by reducing, in such as manner as District deems appropriate, the Scope of Service to be performed by the Contractor) and complete the portion of this Contract so terminated in such manner as the District may deem expedient.
SUBCONTRACTORS. If the Contractor desires to employ Subcontractors in connection with the perfonnance ofits Services under this Agreement:
Nothing contained in the Agreement shall create any contractual relationship between the District and any Subcontractor. However, it is acknowledged that the District is an intended third-party beneficiary of the obligations of the Subcontractors related to the Services.

Contractor shall coordinate the services ofany Subcontractors, and remain fully responsible under the terms ofthis Agreement; Contractor shall be and remain responsible for the. quality, timeliness and coordinate of all Services furnished by the Contractor or its Subcontractors.
All subcontracts shall be written. Each subcontract shall contain a reference to this Agreement and shall incorporate the terms and condition of this Agreement to the full extent applicable to the portion of the Services covered thereby. Each Subcontractor must agree, for the benefit ofthe District, to be bound by such terms and conditions to the full extent applicable to its portion ofthe Services.
TERM. District desires to employ the services of Contractor to perform the hernin described services for a period beginning on the date as desc1ibed in Article 3, and ending upon completion ofthe Services or three (3) years from the Effective Date, whichever is earliest (the "Initial Termination Date").

NOTICE.
Notices required or permitted to be given under this Agreement shall be in writing, may be delivered personally or by mail, overnight delive1y service, or courier service, and shall be given when received by the addressee. Notices shall be addressed as follows:

Ifto District:

Ifto Contractor:

LAKE	ASHTON	COMMUNITY	DEVELOPMENT DISTRICT
135 W. Central Boulevard, Suite 320
Orlando, FL 32801
Attn:  George Flint, District Manager

COMMUNITY WATCH SOLUTIONS LLC
1406 Deuce Circle
Davenport, FL 33896

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Lake Ashton Community Development District Security ContractAgreement

8

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Attn: Garold Williams
Notwithstanding the foregoing, any notice sent to the last designated address ofthe party to whom a notice may be or is required to be delivered under this Agreement shall not be deemed ineffective if actual delivery cannot be made due to a change of address of the party to whom the notice is directed or the failure or refusal of such party to accept delivery of the notice. Parties may change notice address by delivering written notice by mail, ovemight delivery service, or courier service to the other party and such change shall become effective when received by the addressee.
ATIORNEYS' FEES. If either party hereto institutes an action or proceeding for a declaration of the rights of the parties the Agreement, for injunctive relief, for an alleged breach or default of, or any other action arising out of, the Agreement, or in the event any party hereto is in default ofits obligations pursuant hereto, whether or not suit is filed or prosecuted to final judgment, the non-defaulting or prevailing party shall be entitled to its actual attorneys' fees and to any court costs and expenses incurred, in addition to any other damages or relief awarded.
GOVERNING LAW AND JURISDICTION. This Agreement shall be interpreted and enforced under the laws ofthe State of Florida. The parties will comply with the terms of the Agreement only to the extent they are enforceable or pennitted under Florida law. Any litigation arising under this Agreement shall occur in a court having jurisdiction in Polk County, Florida. THE PARTIES WAIVE TRIAL BY JURY AND AGREE TO SUBMIT
(	TO PERSONAL JURISDICTION AND VENUE IN POLK COUNTY, FLORIDA.
. SEVERABILITY. In the event that any provision ofthis Agreement is judicially construed to be invalid by a court of competent jurisdiction, such provision shall then be construed in a manner allowing its validity, or if this leads to an impracticable result, shall be stricken, but in either event, all other provisions ofthe Agreement shall remain in full force and effect.

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. NO WANER. No failure by either paity to insist upon the strict petfonnance of any covenant, duty, contract or condition of this Agreement or to exercise any right or remedy upon a breach thereof shall constitute a waiver of any such breach or of such  or any other covenant,  contract,  term or condition.   Any party hereto, by written notice executed by such pa1ty, may, but shall be under no obligation to, waive any of its rights or any conditions to its obligations hereunder, or any duty, obligation, or covenant of any other party hereto.  No waiver shall affect or alter this Agreement, but each and eve1y covenant, contract, tenn and condition of
this Agreement shall continue in full force and effect with respect to any other then�existing or
subsequent breach thereof.
NO MODIFICATION.  No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the parties against which such enforcement is or may be sought. This instrument contains the entire' contract made between the parties and may not be modified orally or in any manner other than by an contract in writing signed by all parties hereto or their respective successors in interest.

Lake Ashton Community Development District Security Contract Agreement

9

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TIME IS OF THE ESSENCE. The time for delivery and/or completion ofthe work to be petlormed underthe Agreement shall be ofthe essence ofthe Agreement.

ARM'S LENG1H TRANSACTION. This Agreement has been negotiated fully between the parties as an ann's length transaction. In addition to the representations and warranties contained herein, the Contractor acknowledges that p1ior to the execution of the Agreement it has thoroughly reviewed and inspected the Agreement documents, and satisfied itself regarding any error, inconsistency, discrepancy, ambiguity, omission, insufficiency of detail or explanation. Contractor further acknowledges that the parties have participated fully in the preparation of this Agreement and received the advice of counsel. In the case of a dispute concerning the interpretation of any provision ofthis Agreement, all Parties are deemed to have drafted, chosen and selected the language, and doubtful language will not be interpreted OT const1ued against any Party.

COUNTERPARTS. This Agreement may be executed in any number of counterparts with the same effect as if all parties had signed the same document. All fully executed counterpruts shall be construed together and shall constitute one and the same contract.

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[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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Lake Ashton Community DevelopmentDistrict Security ContractAgreement

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SIGNATUREPAGE TO SECURITY CONTRACT AGREEMENT
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed affective as of the day and year first above written.

�WAiITNE�SSES,: s!��.

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WITNESSES:

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Print:

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DISTRICT:

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT

Chairman, Board of Supervisors

CONTRACTOR:

COMMUNITY WATCH SOLUTIONS,
LLC, a Florida limited liability company

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11 

Lake Ashton Community Development District Security Con1ract Agreement

 	 	

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EXHIBITA

i'

Scope of Services

[ATTACHED BELOWI

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12
Lake Ashton  Co=uruty Development District	
Security ContractAgreement

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SCOPE OF SERVICES

1,	GENERAL CONTRACTOR REQUIREMENTS AND PROCEDURES
The Contractor shall meet the requirements and follow the procedures associated with all items in this Agreement. These general requirements and procedures are as follows:
1,1	Operation Procedures
The Contractor shall perform the basic services utilizing Class D licensed securi1y officers as outlined within the Scope of Services at the hours and days requested by the Owner. The Owner will designate where the contractor will take breaks, lunches, and use restroom facilities. Employee personnel vehicles will be marked and parked only in areas designated by the Owner.
Key Personnel
All Work shall be managed and/or directed by key personnel identified in the proposal. Any changes in the assigned key personnel shall be subjectto approval by the Owner. Where applicable, the Contractor shall require certifications, training, etc. be secured and updated for all employees.

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Contractor shall provide one (1) Project Manager who is knowledgeable of the Contractor's daily activities when performed at the site. This Manager shall seive as the point of contact between the Owner and Contractor. The Manager shall be responsible for coordinating all scheduled services with the Owner. The manager will conduct bi-weekly visits to the securi1y personnel and will provide regular updates to the Owner.
Pe1·sonnel Dress Code
The Contractor shall ensure that employees working on the Project shall wear uniforms at all times. Clothing that expresses or implies obscene language or graphics, degrading or demeaning connotations, or in the opinion ofthe Owner is unsightly for any reason, shall be strictly prohibited. Contractor personnel shall wear shirts at all times and shall wear footwear that conforms to safe wo1k practices.
Personnel Conduct
The Contractor shall enforce strict discipline and good order among its employees onthe Project site. The Contractor shall ensure that its employees that communicate and interact with the communi1y and any other customer/party associated with the Project are knowledgeable of the Project and the Services the Contractor is performing.

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Safety Program

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The Contractor shall develop, implement, and maintain a safety program for its operations on the Project. That safety program shall include, at a minimum, a safety policy, safety rules and procedures, safety training, procedures for reinforcing and monitoring safety programs, procedures for accident investigations, providing and maintaining equipment safety features, and safety record keeping.

The Contractor shall comply with all State of Florida and federal and local regulations, rules and orders, as they pertain to occupational safety and health, the safe operation and security of the facilities.
The Contractor shall provide, at the Contractor's expense, all safety equipment and materials necessary for and related to the work performed by its employees. Such equipment will include, but is not limited to items necessary to protect its employees and the general public, if applicable.
Facility Location, Equipment and Sum)lies
The Owner shall provide an existing Gate House on the Project Site for the Contractor as part of this Scope of Services. The Owner will maintain the exterior of the Gate House facility in good operating condition. The Contractor is responsible for maintaining the interior of the Gate House and all equipment provided by the owner in good operating condition. Atthe beginning and the end of the contract period, the Owner and Contractor will inventory and document the condition of all facilities and equipment. In the event wear and tear on the facilities and condition of equipment exceeds what would be considered normal, the Contractor will be responsible for replacement or repair of the facilities and equipment to the satisfaction of the Owner. The Contractor is responsible for the cost of all cleaning supplies, paper products, and personal hygiene products necessary to maintain the interior of the building and for the comfort of seculity personnel.
The Owner will provide a golf cart for patrol inthe perfmmance oftheir duties.

Document ContI·ol and D ata Maintenance
Officer's Daily Log

The Contractor shall keep accurate records of all incidences that occur while on duty, documents received, and, if applicable, issued by this Contractor. A 'document log' shall be maintained during the work of this Contractor to provide records on the infonnation available to orfrom this Contractor. The 'log' shall outline document titles and dates, the originator, received dates, and to/from information. This 1og' shall be updated daily and submitted to the Owner upon request.

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Data Maintenance

The Contractor shall, alter review with the Owner, establish a systematic process for the insertion of revised sets and the integration of that data

 	 	 	 	 	

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1.8

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1.9

into  the  overd.ll Project plan after verification for compatibility  and consistency ofthe infonnation received with existing information.

Data Dispersal
Should the Contractor clistnbute data to others, the Contractor shall document the distribution of data by completing a letter of transmittal. All distribution of data shall be accompanied by a letter of transmittal with a copy provided to the Owner identifying:
Party to whom the data is being transferred
Origination of the requestfor transfer
Name ofdata being transferred
Type(s) of data being transfened
Date oftransfer
Purpose of h'ansfer, or use ofinformation
Further actionnecessary
The Contractor shall propose a format for, and keep a log of, all data transfers for updates to the Owner.
Verification of Data
All data provided to the Contractor shall be examined for consistency with its records and work efforts. Any obvious inconsistency shall be repo1ted to the Owner verbally and inwriting, upon discovery.
Owne1·shiJ> of Equipment
It is to be understood that all equipment purchased under this contract by the Contractor or provided to the Contractor, either by the Owner or third parties, is the sole property of the Owner. The Contractor shall have temporm.y charge of the equipment while performing contracted services for the Project. All equipment shall be returned to the Owner at the conclusion of the Project.
The Owner shall retain the right to require that the Contractor transfer all Project equipment to the Owner immediately upon fourteen (14) days written notice, for any reason.

1.10	Liability Insurance
Contractor shall, throughout the performance of its Services maintain:
Occurrence basis comprehensive general liabili1y insurance (including a broad form contractual coverage) and automobile liabili1y insurance, with minimum limits of $2,000,000.00 respectively, protecting it and Owner from claims for bodily injmy (including death) and property damage which may aiise from or in connection with the performance of Contactor's Services under the Agreement or from or out of any act or omission of Contractor, its officers, directors, agents, and employees.
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1.12	Certification
Contractor shall possess and provide owner with evidence of all necessary certifications and/orlicenses to perform the services required underthis Scope of SeIVices.

COORDINATION
The Contractor shall provide ·coordination with the Owner for all items associated with the requirements ofthis Agreement.

2.1

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2,2

General
The Contractor shall meet with the Owner on a monthly basis. Those meetings shall serve as a forumfor the exchange ofinformation, identification of pertinent and critical issues, detennination of an action plan and schedule for resolving those issues, review of schedule, and budget status. The Contractor shall prepare the agenda for those meetings and submit it to the Owner two working days prior to the date of each meeting. The Contractor shall record and distribute minutes of each meeting to all attendees within five (5) business days, as well as other parties with a 'need-to-know.' The Owner shall provide the meeting location.
The contractor will provide bi-weekly site visits by an appropriate manager.
In addition, Contractor shall provide a representative to attend scheduled meetings of the Board of SupeIVisors if requested to do so by the Owner. This representative shall be knowledgeable of this Project Scope and Scope of SeIVices and shall be able to respond to any questionsthe Board may have as to the day to day activities at the Project site pursuant to this Agreement.
Contracto1·'s Project Manager
Contractor shall designate a representative who will be responsible for overall supervision of the Contractor's work force on the Project and shall act as the single point of contact, on a daily basis, between the Owner and the Contractor. This individual shall maintain at all times a means of being contacted by the Owner (cellular phone) and shall respond to such calls or messages within twenty minutes of contact. This individual shall be responsible for maintaining the Contractor's schedule of activities. The appropriate manager will visit the site at least bi-weekly to ensure contract compliance and welf.ue of personnel.

SCHEDULED OPERATIONS

General
Contractor shall provide a visible security presence to deter any wrongdoing. The principle areas are, but are not limited to, all Disb.ict-owned buildings such as the Clubhouse, Health and Fitness center, and respective appurtenant facilities during the hours requested by the Owner. Contractor shall also provide an officer to
(	supervise entry into the community at the Gate House during the hours requested

 	 	 	 	 	 	 	

by the Owner. The CDD reserves the tight to adjust staffing and hours of operations as necessary.

Clubhouse, Health and Fitness Center and Associated Amenities
The officer on duty shall enforce a11 policies 1hroughout the facility and will report all incidences to the Owner in w1itten reports. The Contractor will be responsible for ensuring that the facilities are open at the designated time in the morning and secure and locked down on a nightly basis. In the event the Contractor, dming their patTol, notes items in need of maintenance, they are to fill out the appropriate maintenance report and ensure that it is reported to the Owner in a timely basis. Safety hazards should be reported to the Owner immediately. The Contractor may also be requested to assist with directing the flow of traffic and parking during special events. The Contr'clctor will participate in the utilization of a security tour verification system to ensure continuous and equitable patrol through Lake Ashton and Lake Ashton II Community DevelopmentDistricts.
Security officers scheduled for special events will enforce all of the policies of the Districts as well as perform pre and post event inspections for damage to the facilities,

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(	3.5

Gate House Policies

The officers on duty shall staff the Gate House during the days and hours as directed by the Owner and assist residents and guests that enter and leave the community and enforce the policies set forth by the Owner. The officers on duty shall be responsible for logging down all visitor vehicles that · enter the community along with license plate numbers. The Contractor shall issue dash or rearview mirror tags for all visitors color coded according to the visitor's destination. The officer on duty shall monitor CCTV on evenings, weekends and holidays when recreational facilities are not staffed. Concerns should be conveyed to security patrol or the appropriate law enforcement agency. Any incidents shall be reported to the respective Owner in written report.

Neighbol'hood Patrols

Contractor shall patrol all neighborhoods during the days and hours designated by the Owner. In the event of an incident, the Contractor shall attempt to acquire names, addresses, and phone numbers from the offenders without causing hann to the contractor or the offender. Any/all incidents will be recorded and reported to the respective owner. In the event the owner adopts a parking policy for the Clubhouse or Health & Fitness Center parldng areas, the Contractor shall also be responsible, if directed by the Owner, for amenity parldng enforcement, ticketing and identifying vehicles in violation of the policy. The Contractor will also be responsible for logging and reporting street lights that aie out or in need ofrepair. The Contractor will participate in the utilization of a security tour verification system to ensure continuous and equitable patrol 1hrough Lake Ashton and Lake Ashton II Community Development Districts.

Criminal Activities

 	 	 	 	 	 	 	 	 	

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If the contractor becomes aware of any criminal activities within the CDD properly the contractor shall notify the appropriate local law enforcement agency immediately and record the incident in the officer's daily log along with any additional reports.

3,6	Damage to Facilities

Should the Contractor become aware of damage to the facilities within the area being serviced by the Contractor, the Contractor shall notify the respective Owner in writing. Contractor should notify the owner by phone and if necessary contact the appropriate local law enfOicement agency to file a report for damages.

3.7

Security Officer Training

Contractor will ensure that all officers are current with Florida Class D Security Officer licensing as well as state mandated recurring training. Additionally, Contractor will provide a comprehensive orientation as well as proficiency training to include professional development and life safety subjects at the Contractor's expense. All security officers must have current C:l;'R and AED certification, obtained and maintained at the Contractor's expense. Secudty officers mustbe able to operate the Disttict owned AEDs.

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ADMINSTRATION/OPERATIONS PROGRAM
The Contractor will develop procedures based upon Owner's requirements and direction and will implement an Administration, and Operation Program. This program will include, but notbe limited to, the following:

General

This program shall consist of comprehensive operation and administrative procedures that will implement the policies and directives of the Owner. Those procedures will govern the Contractor's Services provided under this Agreement as generally outlined in this Scope of Services. This progran1 shall implement best security industry standard practices (ASIS, IFPO). The program document shall contain key information relative to the major components described below. Contractor will ensure coordination with the Owner for proper policy and directive compliance prior to the draft being submitted.

The program document shall be presented in a three-ring binder using standard 11 8- ½ x 1111 pages, single-spaced for text, graphics,
and/or diagrams, and with, if necessaty, 11" x 17" pages for diagrams and/or graphics that fold out if necessary. The document

/ ··	shall include as a minimum, a table of contents, section dividers,
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numbered pages, issuance date on each page, and appendices as required. Each copy shall be numbered and the Contractor will keep a log of document holders (refer to Section 2.9.3, Data dispersal). The program document will include General and Post Orders as well as Special Security Instructions.
1 .2    The  program  document  shall  be kept up-to-date  always  (fonnal review by Owner and Contractor Bi-Annually or as needed) by the Contractor in accordance with Owner's direction.   Approved revisions to the  document shall be  indicated by footnote on the revised pages. The  Contractor will distribute changes to all document holders. The program document will also be available in electronic fonnat and provided by the Contractor to the Owner via electronic mail or using other technology designated by the Client.
The Contractor shall prepare draft copies of the document for review and comment by the Owner within thirty (3 0) calendar days of the notice to proceed with the Services. The Contractor shall anticipate at least two (2) morn additional reviews by the Owner prior to issuance ofthe final document. All Owner comments shall be incorporated into the document The Contractor shall be responsible for preparing and submitting the following number of
(	copies ofthe program document to the Owner.
First draft - Six (6) bound copies, one (1) unbound copy
Second draft - Six (6) bound copies, one (1) unbound copy
Third draft - Six (6) bound copies, one (1) unbotmd copy
Final document - Ten (10) bound copies, two (2) digital copies
Administration
The administrative section of the program document shall, at a minimum, address those functions which are the responsibility of the Contractor related to all administrative matters generally described in the Scope of Services and as outlined below.
Organization charts for administrative management functions include key personnel names, job titles, and phone numbers.
Policies and procedures related to the Contractor's program for communications with the community relative operations and customer service.
Personnel policies and procedures related to the Contractor's personnel pe1fonning services on the site.
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Operations

4.3 .1 The operations section of the program document shall, at a minimum, address those functions which are the responsibility of the Contractor in compliance with Owner's policies and directives related to all operations/customer service matters generally described in the Scope of Services.
4.3 .2 Organization charts for operations and customer service related functions. Include key personnel names, job titles, and phone numbers.
4.3 .4 Policies and procedures related to the Contractors safety program The Contractor will submit the Administration and Operation Program for review and approval by the Owner's. The Contractor shall modify the program as required by the Owner's Program.

RESPONSE TIME
(		The Contractor shall provide seivices within the amount of time indicated in this Agreement. The following is general response time info1n1ation and requirements for the Emergency Response Program. The Contractor is responsible to implement and maintain a general response protocol developed and approved by the Owner.
The Contmctor shall, on a timely and efficient basis, respond to any and all requests, and inspections, and observations, etc. stipulated in the Project Manual. The Contractor shall provide supervisory and operating personnel as required who shall be available on call 24 hours per day, 7 days per week to respond to and correct any problems with any of the elements coveredby this agreement.
Response time, unless otherwise directed by the Owner, should be followed as presc1ibed in section 2.2.
Should the Contractor fail to respond to a request for any services addressed in this Project Scope within the required allotted time, the Owner shall, at the Contractor's sole expense, provide the requested setvices.
COMPENSATION
Provided that the Contractor shall strictly perform all of its obligations under the Agreement, and subject only to additions and deductions by Work Authorizations, the Owner shall make payment to the Contractor for its Se1vices, on a periodic basis plus additional fees for services rendered in connectionwith Work Authorizations.

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The Contractor shall deliver to the Owner an Application for Payment in such form and with such detail, as the Owner requires.
Based on the Contractor's Application for Payment, and the approval ofthe Application for Payment issued by the Owner, the Owner shall make payments to the Contractor plus additional fees in connection with Work Authorizations.
TERMINATION
Anything in this Agreement to the contrary notwithstanding, Owner shall, at. its sole discretion and without cause, havethe right to suspend or terminate this Agreement upon thirty (30) days prior written notice to Contractor. In the event of termination, Owner's sole obligation and liability to Contractor, if any, shall be to pay to Contractor that portion ofthe fee earned by it through the date of tennination.

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1f the Contractor should become insolvent, file any bankruptcy proceedings, make a general assignment for the benefit of creditors, suffer or allow appointment of a receiver, refuse, fail or be unable to make prompt payment to Subcontractors, disregard applicable laws, ordinances, governmental orders or regulations or the instmctions of the Owner, or if the Contractor should otherwise be guilty of a violation of, or in default under, any provisions of the Contract, then the Owner may, without prejudice to any other right or remedy available to the Owner and after giving the Contractor and its surety, if any, seven (7) days written notice, terminate the Contract and the employment of the Contractor. In addition, without terminating this Contract as a whole, the Owner may, under any of the circumstances set forth above, tenninate any portion of this Contract (by reducing, in such manner the Owner deems appropriate, the Scope of the Service to be performed by the Contractor) and complete the portion ofthis Contract so terminated in such manner as the Owner may deem expedient
Contractor shall, at its sole discretion and without cause, have the right to suspend or terminate this Agreement upon ninefy (90) days prior written notice to Owner. In the event of termination, Owner's sole obligation and liability to Contractor, if any, shall be to pay to Contractor that portion ofthe fee earned by it through the date oftermination.

END OF SCOPE OF SERVICES

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EXHIBIT B

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PRICE SHEET

[ATTACHED BELOWJ

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(	Lake Ashton Community Development District	13 

Security Contract Agreement

 	 	

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LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT
SECURITY SERVICES
PRICING FORM
The designated times for gate house security officer are from 12: 00 AM to 11: 59 PM seven (7) days a week, 365 days p er year. Please provide the following information:

$ 13.50	per hour	$ 116,316.00	Annual

$ 20.50

per hour on holidays  $2

,�9�52-'-.0�0�--�Annual

Designated times for patrol security officer within Lake Ashton are generally twelve
(12) hours, seven (7) days a week, 365 days per year. Please provide the following information:
$=13""''-=-50_.per hour	$�58�,1=5-8�.o_o 	.....,Annual
$_20.....�50�----.per hour on holidays   $1,476.00	Annual
The designated times for pool security officer are based on seasonal peak population, for example from November 15 through May 15 for an estimated five
(	hours, seven days weekly. Please provide the following information:
$=13____."'-50-'-- 	p,.. er hom	$=11=,8=8=0=.o=o 	Annual
$_20.....S�0� 	per hour on holidays   $615.00	Annual
The designated times for special events security officer are based on room rental, for example, six hours weekly 52 weeks per year. · Please provide the following information:
$_13-'-.s_o� 	per hour	$_T_B_D 	Annual
$_20_._S0	�per hour on holidays   $TBD	Annual Please provide an annual total for the proposed services:

$=19'-'1=•=39'-7""".0..::..  0

p=lu=s--"s"""p-"-e=ci=a.;;...l e.;;...vc_ce=n=ts

a=s;;..;r"""e__..q'""'u=il...;·e___d 	Total Annual

The District reserves the right to adjust security services staffing and hours of operation as needed,

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VIVONET

Vivonet Inc.	Vivonet Acquisitions LTD.	SALES ORDER c/o Vivonet Acquisition

Suite 1790 - 1188 West Georgia ST	1790 - 1188 West Georgia St	Subject to Approval

Vancouver, BC V6E 4A2	Vancouver, BC V6E 4A2
Canada	Canada
www.vivonet.com	www.vivonet.com

Proposed by: Pau!Hillan Quote Number: 00015166 Offer Valid Until: 

Sales Order
Customer I nformation

Bill To
Lake Ashton Community Development District 4141 ashton club dr, Lake wales
33859

Company: Contact Name: Contact Email: 

Ship To/ Installation Address
Fire @ La ke Ashton
4141 ashton club dr, Lake wales Florida United States 33859

Contact Phone: Contact Fax:

Products and Services

Item	

Quantity	

Rate	

Discount	Amount	
*** Terminal PosX w/ MSR, Display, Printer,	1	$1,149.00	$1,149.00	
CD & Router
*** Terminal PosX w/ MSR, Display, Pri nter &	
1	
$1,099.00	
$1,099.00	
CD
** 3 Ys Advan ced Exchange Replacement	
2	
$199.00	
$398.00	
PosX Terminal/Printer
**** Remote Printer Epson Dot Matrix U220B	
3	
$399 .00	
$1,197.00	
** Configuration - New DB add LOC using	1	$549.00	$549 .00	
Duplicate DB only
* Vivonet POS - Monthly Subscription	
2	
$99 .00	
$198.00	
	Product Tota l: $4,590.00	
	Applicable Taxes:	
	Shipping and Handling:	
	Grand Total: $4,590.00	
Sa les Order Acknowledgements 721

Subscriptions are charged when the system is activated or 60 days from the date this order is signed by Customer, whichever date is earlier (the "Activation Date"). The Activation Date will be deemed to be the fi rst day of the Initial Te rm.
The applicable Vlvonet entity is specified In the Terms of Use Agreement which fo rms part ofthis Sales Order

If this Sales Order Is executed and / or returned to Vlvonet by Customer after the Offer Valid to date specified above, Vivonet may adjust these terms and reissue the Sales Order fo r execution by Customer Equipment specified in the Sales Order will be configured and shipped to the Shipping Address indicated. Delivery times quoted are estimates, not guarantees, and are dependent on various factors including Customer providing certain requested Information to Vlvonet.

Confidential and proprietary. Vlvonet Acq uisition Ltd. and Vlvonet Inc. All rights reserved. [Updated February 23, 2017] Page 1 of 15

 	 	 	 	 	 	 	

Hardware n ot covered under Advance Exchange Program Warranty will be replaced under the terms of the hardware Vendor's Depot warranty.

Th is Agreement wi ll have an initi al term of 36 months, commencing on the Activation Date (the "Initial Term"), and will thereafter renew automatically on a year to year basis, on the same terms as this Agreement, except for any changes to fees.

Terms and Bi ll ing

Initi al Term Start Date* : Initial Term End Date*: Notes:

Payment Information

Sales Order Currency: USD Subscri ption Billing Frequency:

-Sa-le-s O-r-d e-r-Pa-y-m e-n-t --------� -----.,.-=-··""'"··""=---,=,,•,,,,:.•,�

Credit Card Information:

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Card Type:	VISA/MC/AMEX/Discover	AM EX

Payment Option 1: Credit Card

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same as above

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Cardholder Name:

Credit Card Number:

Expiry (mm/yyyy):

Patricia L Adams 
371274876362049
03/2020

CVC #:
(3 or4-digits)

606

Subscription Payment Options:

Cardholder Name:
Credit Card Number:
Expiry
(mm/yyyy):

Account Number:

CVC #:
{3 or 4-d igits)

Transit / Routing Number:
Institution #
{Canada only):

*If paying by Electronic Funds transfer, please mail a VOID check/cheque to Vivonet or scan and send a copy to your Sales Representative for processing. VIVONET does not accept mailed or postdated checks/cheques for subscription payment.

Payment Approval: 

L AvlaHtr

71/cia

Card Type:	VISA/MC/AMEX/Discover	Name of Bank:

Confidential and proprieta ry. Vlvonet Acquisition Ltd . and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 2 of 15

Contract Signature

Upon signature by Customer and submission to Vivonet, the Sales Order shall become legally binding and governed by the Terms of Use Agreement between Vivonet and Customer, unless this order is rejected by Vivonet. Vivonet may reject the Sales Order if: (1) the signatory above does not have the authority to bind Customer to this Sales Order, (2) changes have been made to this Sales Order (other than completion of the signature block), or (3) the requested purchase order information or signature is incomplete or does not match our records. Subscriptions are non -cancelable before the end of the su bscription period .

Customer:

Date: June 2, 2017

Confidential and proprieta ry. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 3 of 15

This Terms of Use Agreement is made between VIVO NET (hereinafter defined) and Customer (as described in the Sales Order (hereinafter defined)), dated effective as of the date of the Sales Order (the Effective Date"). If Customer's Ship to Address specified in the Sales Order is in the United States, "VIVONET" means Vivonet Inc., otherwise, "VIVONET" means Vivonet Acquisition Ltd.
THIS IS A LEGAL AGREEMENT BETWEEN VIVONET AND CUSTOMER. PLEASE READ TH IS AGREEMENT CAREFULLY. BY eSIGNING THIS AGREEMENT OR USING THE SERVICES OR PRODUCTS OF VIVONET, CUSTOMER AGREES TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS AGREEMENT WHICH INCLUDES THE SALES ORDER FORMING PART OF THIS AGREEMENT (COLLECTIVELY, THE "AGREEMENT"). IF CUSTOMER IS NOT WILLING TO BE BOUND BY ALL OF THE TERMS OF THIS AGREEMENT, CUSTOMER MUST SELECT "I WILL NOT eSIGN THIS DOCUMENT" AND SHALL NOT USE AND/OR ACCESS THE SERVICE OR PRODUCTS OFFERED BY VIVONET.
THE PARTIES, IN CONSIDERATION OF THE MUTUAL AGREEMENTS CONTAINED HEREIN, AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, AGREE AS FOLLOWS:

SERVICES
Subscription Services. Subject to the terms and conditions of this Agreement, VIVON ET will make available to you (also referred to as "Customer") services covered by this Agreement and VIVONET hereby:
agrees to make commercially reasonable efforts to make available to you the services agreed to be provided by VIVONET in the Sales O rder as described in VIVONET's user documentation in effect as at the Effective Date and any changes made by VIVONET to that service and made available by VIVON ET to you as part of the "VIVONET" service you have acquired (collectively, the "Service"), for and only for your business located at the installation address described in the Sales Order; and
g rants to you a non-exclusive right to use the software component made available by VIVONET over the internet, through mobile application, data extract, or other form as deemed appropriate by VIVONET, and all automatically-provided updates to that software (collectively the "Software") provided it is used by you only to access the Service.
You have subscribed to the Service .The Software is not sold to you, and (as between you and VIVONET) it is owned by VIVONET and protected by United States, Canadian and international intellectual p roperty laws.
You may not access the Service if you are a direct competitor of VIVONET, except with VIVONET's prior express written consent. In addition, you may not access the Service for purposes of monitoring its availability, performance or functionality, or for any other benchmarking or competitive purposes.
1 .2 Permitted Uses of Software. Except to the extent prohibited by law, you may not modify, reverse engineer, decompile, disassemble, or commercially distribute, license, resell or transfer the Software or its installer p rogram.
All information and data received, sent, saved, collected or distributed through the Service, however transm itted (the "Content"), is the sole responsibility of the person such Content originated from. This means that you, other users of the Service, and the people who you contact or contact you, and not us, are entirely responsible for all Content that is received, sent, saved, collected, distributed or otherwise made available via the Service.

Confidential and proprietary. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 4 of 15

Fu rther, you will ensu re that the Content being provided to VIVON ET by you or on your behalf for p rocessing by VIVONET is compatible with VIVONET's requi rements.
You shall not: (i) license, sublicense, sell, resell, transfer, assign, distribute or otherwise commercially exploit or make available to any third party the Service or the Content in any way; (ii) modify or make derivative works based upon the Service or the Content; (iii) create Internet "links" to the Service or "frame" or "mirror" any Content on any other server or wireless or Internet-based device; or (iv) reverse engineer or access the Service in order to: (a) build a competitive p rod uct or service, (b) build a product using  similar  ideas,  featu res,  functions  or  graphics  of  the  Service,  or  (c)  copy  any  ideas,  features, functions or g raph ics of the Service. User subscriptions cannot be shared or used by more than one ind ivid ual user but may be reassigned from time to time to n ew users who are replacing former users who have terminated their employment or otherwise changed job status or function and no longer use the Service p rovided the assignee complies with all obligations under this Agreement.
You may use the Service only for your internal business purposes and shall not: (i) send spam or otherwise duplicative or unsolicited messages in violation of applicable laws;  (ii) send or store infringing, obscene, threatening, libelous, or otherwise unlawful or tortious material, including material harmful to children  or  violative  of  privacy  rights;  (iii)  send  or  store  material  containing  software  viruses,  worms, Trojan  horses  or other harmful  computer code,  fi les,  scripts,  agents  or programs;  (iv)  interfere with  or disrupt the integrity or performance of the Service, the Content or the data contained therein ; or (v) attempt to gain unauthorized access to the Service or its related systems or networks. VIVONET reserves the rig ht to interrupt, terminate, or restrict Service without notice to you and without any liability if you fail to comply with any obligation under this Agreement or if VIVONET suspects illegal, fraudulent, or abusive activity. You agree to cooperate with VIVONET in any investigation and use reasonable measur�s p rescribed by VIVONET from time-to-time to address any issues or concerns identified by VIVON ET.
1. 3 Equipment. Your sales order (the "Sales Order") may list items of standard equipment that VIVONET is furnishing to you under the Agreement and may include a touch-screen point of sale (" POS") terminal, a thermal receipt printer and a magnetic card swipe reader (the "Standard Terminal Equipment"). If you have agreed to have VIVONET install equipment in addition to the Standard Terminal Equipment (the "Additional Terminal Equipment"), it is also listed in the Sales Order. As used in this Agreement, the term "Terminal Equipment" means the Standard Terminal Equipment and the Ad ditional Terminal Equipment. As part of your Terminal Equipment purchase, VIVONET will pass through to Customer any transferable Terminal Equipment warranties, indemnities and remedies provided to VIVONET by the manufactu rer, including any warranties and indemnities for intellectual p roperty infringement. To the extent perm itted by law, in connection with Terminal Equipment, notwithstanding anything to the contrary, VIVONET p rovides no indemnities and makes no other warranty, express or implied, including without limitation warranty of merchantab ility, fitness for purpose or non-infringement. Unless listed in the Sales Order, VIVONET will not install Customer provisioned equipment or other POS equipment.
1 .4   Your Account Information and  Use of Data.   For our providing you the Service, you must provide true, accurate, current and complete information about yo u as prompted by the VIVONET Service registration process and maintain that information on an ongoing basis (an "Account"). You must have an Account to use the Service. By submitting personal information pursuant to this Ag reement, you consent to the collection ,  processing, transmission,  use, retention and disclosu re of such personal information by us or our service providers to facilitate the transactions contemplated by th is Agreement, for the management of VIVONET's business/operations, and/or for any purposes set out in VIVONET's privacy policy in effect from time-to-time (which is incorporated by reference  and  can  be  viewed  at  www.vivonet. com/privacy or another site specified by VIVONET from time-to-time).
You give express permission for VIVONET to use any data shared with VIVONET through the Service for commercial purposes including, but not limited to the creation of a data wa rehouse for aggregate statistical reporting, provided such data is anonymized and/or aggregated. You agree to waive all future claims for injury or damages, direct or indirect, from VIVONET's use of this anonymous and/or

Confidential and proprietary. Vivonet Acquisition Ltd. and Vlvonet Inc. All rights reserved. [Updated February 23, 2017] Page 5 of 15

aggregated data. You agree that in no event will the data referenced in the p receding sentence constitute your confidential or proprietary information. 
VIVONET will cause your Terminal Equipment to be delivered in accordance with its standard shipping terms at the time of shipment. If you have subscribed to VIVONET's activation service, based on information p rovided by you, VIVO N ET will configure and facilitate (via telephone and remote online sessions) connectivity to your menu and employee database. VIVO NET will also make available our standard s et-u p assistance and employee training for the Services. Any substantial changes to your database requested by yo u after the initial set-up may be su bject to additional charges, to be disclosed to you in advance. As part of the registration p rocess , each user will select a user name (the "User Name")  and  a  password  (the "Password"). You  shall  provide  us with accurate,  complete,  and  updated account inform ation. Failure to do so shall constitute a breach of this Agreement, which may result in immediate termination of your account. You may not: (i) select or use a User Name of another person with the intent to impersonate that person; (ii) use a name su bject to the rig hts of any other person without  authorization;  or  (iii)  use  a  User  Name  that we,  in  our sole  discretion,  deem  inappropriate  or offensive. 
You shall notify us of any known or suspected unauthorized use(s) of your account, or any known or suspected  breach  of security,  including  loss,  theft,  or unauthorized  disclosure  of yo ur  Password.  You shall be responsible for maintaining the confidentiality of your Password.
Any fraudulent, abusive, or otherwise illegal activity is g rou nds for termination of your account and the Service, at our sole discretion, and you may be reported to appropriate law-enforcement agencies.
1. 5 Web Applications. VIVONET will provide you with access to, and use of, VIVONET's web applications to be used by you for the management of your account, data and other in formation related to the Services  or  the  Software,  p rovided  however,  that  all  of  your  access  and  use  is  governed  by  any restrictions and conditions contained in this Agreement.
1 . 6   Third   Party   Applications.      During   use   of  the   Service   or   the   Software,   you   may   enter   into correspondence with ,  purchase  goods  or services  from,  or participate  in  promotions  of advertisers  or sponsors showing their goods and/or services through the Service and/or through other interactions with VIVON ET and/or third parties. VIVONET reserves the right to solicit you or your customers (who have consented to such solicitation) with offers related to Third Party Applications. Any such activity, and any terms, conditions, warranties or representations associated with such activity, is solely between you or your customers, as applicable, and the applicable third-party. VIVONET and its licensors shall have no liabi lity, obligation or responsibility in relation to such correspondence and/.or any Third Party Applications. VIVONET does not endorse any sites on the Internet that a re linked through the Software. VIVONET p rovides these links to you only as a matter of convenience, and in no event shall VIVONET or its licensors be respo nsible for any content, p roducts , or other materials on or available from such web sites or th ird parties (even if they a re acqui red through VIVONET).  VIVONET provides the Service to you pursuant to the terms and conditions of this Agreement and any orders made as a result of offers from third parties through VIVONET's Service or Software are subject to payment by you of the applicable fees in accordance with this Agreement unless VIVONET has expressly and in writing agreed to the contrary.   For the purposes of this Agreement, "Third Party Application(s )" means any software, application, technology, standard or specification , product or service developed by or on behalf of a third party for installation and/or use in conjunction with the Service, including without limitation, Terminal Equipment and p roducts and services p rovided by members of VIVONET's Alliance P rogram . For clarity, VIVONET's Software and Service specifically exclude Third Party Applications and Third Party Applications shall not form part of Software or Service and Third Party Applications shall not be treated, construed or interpreted as being supplied, authorized, endorsed or otherwise provided by or on behalf of VIVON ET.
1 . 7   Consumer  I nteractions.   During  use  of the  Service  or the  Software,  you  give  express  permission  for VIVONET to solicit those consenting consumers that have agreed to our mobile terms and conditions with offers of complementary but not competing products by referencing their transaction with you in the

Confidential and proprieta ry. Vivonet Acquisition Ltd. and Vivonet Inc. Ail rights reserved. [Updated February 23, 2017] Page 6 of 15

offer. VIVONET further reserves the right to solicit consenting consumers that have agreed to our mobile terms and conditions with offers of Third Party Applications (whether complementary or competitive) where no specific transaction with you is mentioned in the offer.
. 8  Reseller Of Thi rd Party Applications. If VIVONET is reselling any Third Party Applications to Customer pursuant  to  this  Agreement,  VIVONET  will  pass  through  to  Customer  any  transferable  warranties, indemnities remedies provided to VIVONET by the provider of the Third Party Applications, including without lim itation, any warranties and indemnities for intellectual p roperty infringement. To the extent permitted by law, in connection with Third Party Applications, notwithstanding anything to the contrary, VIVONET p rovides no indemnities and makes no other warranty, express or implied, includ ing without limitation, warranty of merchantability, fitness for purpose or non-infringement.
FEES 
1 Processing Fees. If set out in your Sales O rder, VIVONET may apply certain fees associated with the system,  including  but  not  limited  to ,  payment  processing,  loyalty,  transactions,  third  party  application integration, data access services and such other fees as may be determined from time to time and outlined in the Sales Order. VIVONET will provide you with advance notice of any increase such that you will have  30  days between the receipt of such  notice and the date upon which you a re required to notify VIVON ET of your intention to terminate the Service which is resulting in the applicable processing fees, as described in Section 3.2(b) or 3.2(d).
Billing. During the Term of this Agreement, you agree to pay VIVON ET all Service fees and all applicable p rocess ing fees (collectively, the Service Fees"), with the payment method and/or the payment schedule indicated in the Sales O rder for each product. VIVONET is hereby authorized to issue p re-autho rized debits and/or process charges to your c redit card , provided with the Sales Order, in the amount shown in the Sales Order plus all applicable taxes.
Payment. You will receive an invoice for the total amount of the Sales Order accompanying th is Agreement. Regardless of which Deposit payment m ethod you elect on your Sales Order, if payment is not received by VIVON ET within 30 days of execution of this Agreement, VIVONET reserves the right to automatically and without notice to you, process your Deposit payment using the cred it card or bank account p rovided by you VIVONET, and you hereby agree to pay such amounts charged. Your first Service Fee will be processed on the 1 st of the month subsequent to the activation of your Account, or 60  days from  the date the Sales Order is esigned whichever is the earlier,  and thereafter on the 1 st of each subsequent month unless otherwise mutually agreed upon in yo ur Sales Order. No invoice will be sent to yo u unless the amount being charged has changed. You shall pay all fees or charges to the Account in accordance with the fees,  charges,  and  billing terms in effect at the time a fee or charge is due and payable. All payment obligations are non-cancelable and all amounts paid are non-refundable. You are responsible for paying for all fees o rdered for the entire term of the Agreement, whether or not the Service  is  actively used.   If you  believe your bill  is  incorrect,  you  must contact VIVON ET in writing within 60 days of the invoice date of the invoice containing the amount in question to be elig ible to receive an adjustment or cred it.
You may subscribe to additional services by executing an additional written Sales Order with VIVONET. Added subscriptions will be subject to the following: (i) added subscriptions will be coterminous with the preexisting term of the Agreement; (ii) the subscription fee for the added subscription will be the then current, generally applicable subscription fee; and (iii) subscriptions added in the middle of a billing month will be charged in fu ll for that billing month. All pricing terms are confidential, and you agree not to disclose them to any third party.
In addition to any other rights granted to VIVONET herein , VIVONET reserves the right to suspend or terminate this Agreement and your access to the Services if your account becomes delinquent (falls into arrears).  Delinquent  invoices  are  su bject  to  interest  of  1. 5%  per  month  on  any  outstanding  balance, which is 1 9.56% per year, or the m aximum permitted by law, whichever is less, plus all expenses of collection. You will continue to be charged for user subscriptions during any period of suspension. Upon

Confidential and proprietary. Vlvonet Acquisition Ltd . and Vlvonet Inc. All rights rese rved. [Updated February 23, 2017] Page 7 of 15

termination of this Agreement by you or by VIVONET, you will be obligated to pay the balance due on your account computed in accordance with this Section 1. 8.
VIVONET reserves the right to impose a reconnection fee in the event you are suspended and thereafter request access to the Services. You agree and acknowledge that VIVONET has no obligation to retain your data and that such data may be irretrievably deleted if your account remains delinquent for more than 30 days.  VIVON ET reserves the right to apply an NSF fee for any rejected payments.
Fee Incre ases. VIVONET will not increase Service Fees fo r the Initial Term where the Initial Term of this Agreement is 36 months or more, except where new or additional functions are added or become available to you, of which you will be notified as described in Section 6.2. The Service Fees may increase by no more than 1 0% per year and VIVON ET will provide you with advance notice of any increase, such that you will have at least 30 days between the receipt of such notice and the date upon which you are requi red to notify VIVONET of your intent to terminate the Service as described in Section 3. 2(b) or 3.2(d), if you wish to terminate the Service and not pay the increased Service Fees.
Applicable Taxes and Freight Charges.  VIVONET fees and charges are exclusive of all taxes, levies or duties imposed by any tax authorities and you will pay any and all applicable sales, use, service, property, import or other taxes in connection with the Service, including the installation of equipment. In addition, unless otherwise specified in the Sales Order, you a re responsible for paying all freight and duty charges.
TERM AND TERMINATION
Initial Term and Renewal Terms. This Ag reement will have an initial term of 36 months or as otherwise mutually agreed upon in your Sales Order, commencing on the date your first Service Fee is payable as per Section 2.1 (the "Initial Term"), and will thereafter renew automatically on a year to year basis , on the same terms as this Agreement, except for any changes to fees.
Termination. Despite Section 3.1 , this Ag reement will terminate in each of the following events: 
at the option of either party if the other party m aterially defaults in the performance or observance of any of its obligations under this Agreement and does not remedy the default within 15 days after receiving written notice of it;
at the option of either party if the other party becomes insolvent or bankrupt or makes an assignment for the benefit of cred itors , or if a receiver or trustee in bankruptcy is appointed for the other party, or if any proceeding in bankruptcy, receivership, or liq uidation is instituted against the other party and is not dismissed within 30 days following commencement thereof;
after the  Initial Term,  at the option  of either  party  upon  30  days written  notice,  delivered  to the other Party at its address set out above, provided that no amounts previously paid are refundable;
prior to the end of the  Initial Term,  upon  30 days written  notice to VIVONET,  subject to Section 3.3. 
Effect of Termination of Agreement. Upon termination or expiration of this Agreement or a Sales Order (as appropriate):
VIVON ET may immediately cease providing Service under any term inated Sales O rder(s) .
You shall not be entitled to any refu nd of monies paid hereunder, except as otherwise expressly p rovided for in the Sales O rder. Nothing in this Section shall affect any right to claim damages directly resulting from the other party's m aterial b reach , su bject to all of the provisions of this Agreement.
The provisions of Sections 1 .2, 1 . 3, 1 . 5, 1 . 8,2, 7, 7.2, 9, 1 0 , 1 0 .7 and O exp ressly continue and survive such termination, as shall any other provision hereof or in a  Sales Order that by its terms is intended to survive and have effect after termin ation.

Confidential and proprieta ry. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 8 of 15

If VIVONET terminates this Agreement pu rsuant to Section 3. 2{a) or 3.2{b) or if you terminate th is Agreement pursuant to Section 3.2{b) or 3.2{d), all outstanding unpaid charges will become immediately due and payable; and VIVONET may by notice to you accelerate and declare that the entire balance of all fees under this Ag reement for the remainder of the term are immediately due and payable, and VIVONET may collect such balance as p rovided herein or in any manner consistent with applicable law.

i

Each party will promptly return to the other party any confidential i nformation of the other party in its possession or control.

!

P rovided you have complied with your obligations under this Agreement, you shall have the rig ht	I
to request and receive from VIVONET a copy of all of your transactional data stored on any 

VIVON ET system  in conjunction with any Services p rovided under a  Sales Order in either XML or	I

CSV format.  You  shall  receive  the  data  on  either  on  CD,  DVD,  or  by  electronic  means  upon request and you shall pay VIVON ET the processing fee applicable at the time of your request, which currently is currently $1 00 per gigabyte, payable in advance.

Upon termination or expiration of this Agreement for any reason, VIVONET will no longer have any responsibility or liability for any warranty services obligations related to the Terminal Equipment under this Agreement.
TITLE OF THE TERMINAL EQUIPMENT
1 Unless you are leasing, title to the Terminal Equipment passes on shipment from VIVONET or its supplier's facility. Title to Terminal Equipment software will remain with the applicable licensor{s). Ship dates a re estimates only. VIVONET is not liable for delays in shipment or failure to ship by the estimated ship date.
REPAIR SE RVICE 

1 Repair/Replacement Service During The Initial Term. VIVONET will, at your request, facilitate the necessary repair or replacement of the Terminal Equipment in accordance with the manufacturers' warranty on these items. You agree to immediately notify VIVONET of any defect or failure in operation or functioning of the Terminal Equipment. You may request and schedule repair/replacement by e­ mailing support@vivonet.com. If you have acquired the manufacturers Advanced Exchange Program Warranty se rvices, yo u may be eligible to expedited services within target timelines specified at www.vivonet.com or another site specified by VIVONET from time-to-time. Although VIVONET makes commercially reasonable efforts to meet the high response timelines specified on its website, they are not guaranteed.  Hardware  not covered under the manufactu rer's Advance Exchange P rog ram Warranty will be replaced under the terms of the manufacturer's Depot warranty.

SUPPORT, SE RVI CE LEVEL OBJECTIVES, AND MAINTENANCE
Support.   VIVONET's  provides  support  (as  specified  on  www.vivonet.com  or another site  specified  by VIVONET from time-to-time) relating to the operation, use and troubleshooting of the Software and the Service, provided that your Account is in good standing. Outside of regular support hours, VIVONET will also p rovide assistance for emergency issues that result in the inoperability of critical system functions {e. g. basic transaction processing, payment processing, receipt and remote printing). However, VIVONET is not responsible for any problem arising as a resu lt of any cause other than the Software or the Service, and will for instance not be responsible for any p roblem arising as a result of your own computer(s), network(s), other installed software, i nternet service p rovider, or any other cause not controlled by VIVONET, even if such problems result in your inability to use the Software or the Service. Further, VIVONET's obligations to p rovide support for any particular version of the Software will terminate automatically on the 30th day after VIVONET makes available a n ewer version to you, and from  that  day  on will  only apply to the  newly-provided  version.   Also,  VIVONET has  no  obligation  to provide any support for any Software that has been modified by you or on your behalf.

Confidential and proprietary. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 9 of 15

Service Level Objectives. VIVON ET service level objectives may be found at www.vivonet.com or another site specified by VIVONET from time-to-time.
Maintenance/Updates. VIVONET will, as soon as reasonably possible following development and testing to VIVONET's own satisfaction, update the Service and the Software. Updated Service will automatically be available to you when you use the Service subject to the terms of this Agreement, unless they include new/additional functions which entail increased fees in which case you will not be provided such Service until you have been informed of, and been given the opportunity to decline, those new Service and fees. VIVONET may also provide updated Software to you from time to time, which will be subject to the terms of this Agreement.
WARRANTIES AND LIABILITY LIMITATIONS
WARRANTY AND WARRANTY EXCLUSIONS. VIVON ET PROVIDES THE SOFTWARE AN D SERVICES ON AN "AS IS" BASIS AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR CONDITIONS REGARDING EITHER THE SOFTWARE OR THE SERVICES AND WITHOUT LIMITING THE FOREGOING VIVONET HEREBY EXPRESSLY EXCLUDES TO THE EXTENT POSSIBLE AT LAW ALL WARRANTIES, REPRESENTATI ONS AND CONDITIONS OF ANY KIND INCLUDING WITHOUT LIMITATION THOSE OF NON-INFRINGEMENT OF THIRD PARTY RIGHTS, DURABILITY, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE.
Liability Limitations. In no event will VIVONET be liable to you for any indirect, consequential, incidental or special damages, or for any lost profits, lost savings, or incorrect taxes, even if VIVONET has been advised of the possibility of such damages, or for any claim by any third party. Further, without limiting the previous sentence, regardless of the source, cause or form of any harm or damages suffered by you, VIVONET's absolute maximum aggregate liability to you in any case whatsoever will be the amount of Service Fees paid by you to VIVONET on account of the 12 months immediately preceding the date the harm in question first arose.
MISCELLANEOUS
This Agreement (which includes the Sales Order) is the entire agreement between you and VIVONET and supersedes any prior agreements, discussions, representations or warranties, written or oral, relating to the Software, the Service or other subject matter herein, and may only be changed by agreement in writing signed by both parties. Further, VIVONET is not, and will not be, bound by any provision of any purchase order, correspondence, or otherwise.
Neither party may assign this Agreement without the other party's prior written consent, which consent will not be un reasonably, withheld, delayed or conditioned, provided that such assignment does not materially affect the rights or obligations of the non-assigning party. Notwithstanding the foregoing, VIVONET may assign this Agreement without consent to any purchaser of a majority of VIVONET's outstanding shares or to any purchaser of substantially all of the assets of VIVONET that relate to this transaction, or may assign it to a parent, wholly owned subsidiary, or to an Affiliate. VIVON ET will make commercially reasonable efforts to notify you of any assignment made by VIVONET in accordance with preceding sentence. Any purported assignment in violation of this Section shall be null and void . "Affiliate" means with respect to any entity, any other entity directly or indirectly controlling or controlled by, or under common control with, such entity. For purposes of this Agreement, "control" (including the terms "controlling" and "under common control with") shall mean the power, directly or indirectly, to direct or cause the direction of the management and policies of such entity, whether through the ownership of voting securities, by contract, or otherwise.
If Customer's ship to address for products and services under this Agreement is located in the United States, this Agreement is governed by and construed under the laws of the State of New York, United States, otherwise, this Agreement is governed by and construed under the laws of the Province of British Columbia, Canada and the laws of Canada applicable therein ("Applicable Law"). The Parties

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agree that the United States Convention on Contracts for the Sale of Goods is hereby excluded in its entirety from application to this Agreement.
All disagreements and d isputes arising out of or in connection with this Agreement shall be finally settled by arbitration. The decision of the arbitrator shall be final and binding upon the Parties (save in the case of manifest error). The award of the arbitrator shall be made in writing and shall have reasons. The arbitrator's award shall make provision for the costs of the arbitration to be paid by the Parties in such proportions as the arbitrator decides appropriate. The arbitration shall be: (i) held in Vancouver, Canada; (ii) conducted under the Applicable Law; (iii) conducted in the English language;
(iv) settled under the Rules of Arbitration of the International Chamber of Commerce (" Rules"); and (v) heard by one arbitrator appointed in accordance with the Rules and to be mutually agreed to by the Parties within thirty (30) days of the appointment of the arbitrator, failing which a neutral third party shall appoint the arbitrator. No dispute between the Parties, or involving any person but Customer, may be joined or combined together, without the prior written consent of VIVONET.
Judgment upon the award rendered by the arbitrator may be entered in any Court having jurisdiction thereof. Notwithstanding the foregoing , nothing herein contained shall prevent any party from: (a) seeking an injunction and any relief ancillary thereto from a court of competent jurisdiction; or (b) instituting legal proceedings for claims or disputes relating to any amounts owing by Customer to VIVON ET in connection with the acquisition by the Customer of products and seNices under this Agreement. Customer irrevocably waives any objection on the g rounds of venue, forum non conveniens or any similar grounds and irrevocably consent to seNice of process by mail or in any other manner perm itted by applicable law
The waiver by either party of any breach of this Agreement will not constitute a waiver of any subsequent breach of the same or any other provision.
The invalidity or unenforceability of the whole or any part of any provision of this Agreement will not affect the validity or enforceability of any other p rovision or the remainder of such provision.
This Agreement may be executed in two or more identical counterparts , facsimile counterparts, or electronic counterparts, each of which when executed by a party shall be deemed to be an original and such counterparts shall together constitute one and the same agreement. This Agreement may also be executed by means of an electronic signing process.
Any notice required to be given to VIVONET hereunder must be sent to the following address: VIVONET Suite 1 790- 1 1 88 West Georgia Street, Vancouver, BC V6E 4A2 Attention: CFO
With a copy VIVONET Legal Department, Suite 1 790- 11 88 West Georgia Street, Vancouver, BC V6E 4A2
VIVONET may provide you notice under this Agreement by email or other electronic communication . You consent to receive such notices in  any of the foregoing manners and agree that  any such  notices  by VIVONET will satisfy any legal communication requirements.
The headings and titles of this Agreement are for reference only and do not form part of this Agreement.
The VIVON ET SeNice is not intended for or knowingly provided to, and may not be used by, persons under the age of consent. By agreeing to the Terms of Use, you hereby represent and warrant to us that you are at least of the age of consent, in your jurisdiction.
8. 10 The seNices may be subject to limitations, delays and other problems inherent in the use of the Internet and electronic communications. VIVONET is not responsible for any delays, deliver failures, or other damage resulting from such problems. In addition, neither you nor VIVONET will be liable for any failure or delay in performance of this Agreement which is caused by something that is in the control of third parties or circumstances beyond the reasonable control of a party (collectively, "Force Majeure"). Force Majeure events shall include (but not be limited to) acts of God, fire, flood, lightning, earthquake or other natural disaster; war, riot or civil unrest, strike, lockout or boycott or other industrial action; interruption

Confidential and proprietary. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 11 of 15

or  failure  of supplies  of  power,  fuel,  water,  transport,  equipment,  software  or  services  (including  the internet and telecommunication services); or material requi red for the performance of obligations under this Agreement. Notwithstanding the forgoing, under no circumstances will a party's obligation to pay any amount under this Agreement be obviated by an event of Force Majeure.
1 In the United States and Canada, the Service is not knowingly provided to children under the age of 14. If you are accessing the Service from the United States or Canada, you hereby represent, warrant and covenant that you are at least 14 years old. If you have not attained the minimum age specified in the preceding sentence, you are prohibited from accessing the Service. If you are accessing the Service from anywhere other than Canada, prior to such access you will ensure that you  have attained the minimum age for accessing the Service in your jurisdiction.
2 It is the express wish of the parties that this agreement and all related documents have been drawn up in English. C'est la volonte expresse des parties que la presente convention ainsi que les documents qui s'y rattachent soient red iges en anglais.

OWNERSHIP OF INTELLECTUAL PROPERTY
As between VIVONET AND CUSTOMER, VIVONET alone (and its licensors and Affiliates, where applicable) shall own all right, title and interest, including all related intellectual property rights, in and to the VIVONET technology, the Content and the Service and any suggestions, ideas, enhancement requests, feedback, recommendations or other information provided by you or any other party relating to the Service (collectively "Input"). You hereby grant to VIVONET a non-exclusive, perpetual, irrevocable, paid-up, transferable, sub-licensable, worldwide license under all intellectual property rights covering such Input to use, disclose and exploit all such Input for any purpose. VIVONET may develop technology, modifications, corrections, enhancements, derivatives or extensions (collectively, "Improvements"), and further may also develop branding elements based on such Input, and such Improvements and branding elements, and any intellectual property rights therein, as well as any related intellectual property registrations, shall be owned exclusively by VIVONET. You agree to execute such further documents and instruments as may be required to confirm such ownership by VIVONET. This Agreement is not a sale and does not convey to you any rights of ownership in or related to the Service, the VIVONET technology or the intellectual property rights owned by VIVONET.
"VIVONET" and the VIVONET logo (the "VIVONET Marks") are trademarks of Vivonet Inc. and/or Vivonet Acquisition Ltd and/or their Affiliates. All rights in VIVONET Marks are reserved.
FRANCHISEE AND FRANCHISOR PROVISIONS
1 0.1 If you are a Franchisee or Franchisor, as defined in Section 10.2, you hereby represent, warrant, acknowledge and agree to the following provisions in this Section 10 in addition to all of the foregoing terms and conditions.
1 0.2 For all purposes of this Agreement:
"Franchisor" means the owner or licensor of the franchise system and methods under which you operate your business; and
"Franchisee" means the person, firm or corporation to whom or which a franchise system or method is granted.
1 0.3 Data Use. VIVONET has the right and authority to disclose this Agreement and any or all information and data relating to the Service and this Agreement to the Franchisor and/or Franchisee (as applicable), and VIVONET will not be responsible in any way for the use of such information or data by the Franchisor or Franchisee.
1 0.4 Franchisor's Warranty for Data. Franchisor has sought and obtained the written consent of each Franchisee or other person or entity using the franchise system in order for Franchisor to access the information and data made available by them to VIVONET in the course of their use of the Service.

Confidential and proprietary. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 12 of 15

1 0.5 Service Fees Adj ustment. Notwithstanding any other terms of this Agreement, the Franchisee hereby expressly acknowledge and agree that the Service Fees and other consideration provided by Franchisee, are based upon certain terms and conditions of an agreement between VIVONET and the Franchisor. If certain terms and conditions of such agreement are not met by Franchisor, the Service Fees and other consideration payable by the Franchisee under this Agreement may be affected (either adversely or beneficially to the Franchisee), and the Franchisee hereby agrees that VIVONET will be entitled to make such adjustment as necessary to the Service Fees and other consideration payable by the Franchisee, and the Franchisee hereby agrees to pay any such adjusted Service Fees or other consideration hereunder.
1 0.6 Termination. Despite Section 3.1 and in addition to Section 3.1 , and n otwithstanding any other terms of this Agreement, this Agreement will automatically terminate in the event that
the Franchisee's agreement with the Franchisor terminates or expires for any reason, or
VIVONET's agreement with the Franchisor is terminated or expires for any reason.
1 0. 7 Data Requests. Provided you have complied with your obligations under this Agreement, the Franchisee and the Franchisor shall each have the right to request and receive from VIVONET a copy of all of the Franchisee's transactional data stored on any VIVONET system in conjunction with any services provided under a Sales Order in either XML or CSV format. The Franchisee shall receive the data on either on CD, DVD, or by electronic means upon request and VIVONET shall charge, either the Franchisee or the Franchisor as applicable, VIVONET's applicable p rocessing fee, which is currently
$1 00 per gigabyte, payable in advance.

INDEMNIFICATION
YOU AGREE TO DEFEND, INDEMNI FY AND HOLD HARMLESS VIVONET, VIVONET'S OFFICERS, DIRECTORS, EMPLOYEES, SUPPLIERS, LICENSORS AND AFFILIATES, FROM AND AGAINST ANY CLAIMS, LOSSES, DAMAGES, FINES AND EXPENSES (INCLUDING ATTORNEY'S FEES AND COSTS) ARISING OUT OF OR RELATING TO ANY C LAIMS THAT YOU HAVE USED THE VIVONET SERVICE IN VIOLATION OF ANOTHER PARTY'S RIGHTS, IN VIOLATION OF ANY LAW, IN VIOLATION OF TH IS AGREEMENT, OR ANY OTHER CLAIM RELATED TO, OR ARISING OUT OF, YOUR USE OF THE VIVONET SERVICE OR THIS AGREEMENT.

CUSTOMER RESPONSIBILITIES
1 2.1 If Customer processes, stores or transmits  credit cards, or debit cards information, Customer acknowledges and agrees that Customer is responsible for ensuring compliance with the Payment Card Industry Data Security Standards (PCI DSS) and any other secu rity and privacy standards and laws that are relevant to Customer.
1 2.2 Notwithstanding anything to the contrary, Customer is responsible at Customer's expense for the purchase, installation, maintenance and payment of all third party hardware, software, communications equipment and telecommunication and other services, including but not limited to Internet required to use the Service and Software. Without limiting the forgoing, Customer is responsible for cost associated with extracting data from Customer point-of-sale or other system requi red for the operation of Service in the event that the point-of-sale is not provided by VIVONET. VIVONET assumes no responsibility or liability with respect to the forgoing, nor their proper functioning with the Services or Software. Without limiting the generality of the forgoing, Customer acknowledges and agrees that Customer is responsible for paying any additional fees and charges payable to third parties for any updates or upgrades, including without limitation, updates or upgrades to the operating system or anything else req uired to ensure compliance with this Agreement, PCI DSS requirements, and any requirements for the Service set by VIVONET from time-to-time.

Confidential and proprietary. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 13 of 15

1 2.3 Customer is responsible for ensuring compliance in all aspects with all relevant laws (including without limitation, in connection with the collection, storage, use and disclosu re of any personal information contained in the customer data) any terms and conditions applicable to all third party software, hardware and services provided pursuant to this Agreement.
1 2.4 In order to install and operate the VIVON ET POS system and integrated peripherals, Customer must prepare Customer's location in accordance with the networking requirements described in the network set up diagrams and documents supplied by VIVONET during implementation. It is the Customer's sole responsibility to complete all network preparation for the VIVON ET solution, including establishing an optimal WiFi environment if Customer is deploying WiFi POS or peripherals.
1 2.5 In order to access and use any products or the Services, Customer must provide and maintain at Customer's expense a computer system and operating system software meeting the requirements set by VIVONET from time-to-time, as well as internet access via DSL or cable, plus, for t raining and support purposes, a separate simultaneously available telephone line.
1 2.6 If applicable, Customer must work with VIVONET to remotely activate the Service, provision training and confirm operability of the POS equipment and access to the Enterprise Manager. Customer must also provide all requi red information and authorizations necessary to complete the creation of Customer's database and access the Customers equipment and systems associated with the Service. By entering into this Agreement Customer hereby confirms VIVONET's right to remotely access Customer's POS equipment and systems associated with the Service in relation to the provision of the Service (wh ich includes without limitation, support, configuration management, trouble shooting, responding to notification and alerts, etc.).
1 2.7 Customer must complete all training as directed by VIVONET and train all staff in the use ofthe VIVONET products and services according to the staff roles assigned. Any agreed appointment dates and times require at least 72 hours cancellation notice or may be subject to fees. Standard Activation services hours can be found at www.vivonet.com or another site specified by VIVON ET from time-to-time.

ADDITIONAL TERMS

If any acceptance or other communications of any kind from you contain any additional terms with respect to this Agreement, even if VIVONET fails to object to the p rovisions in any communications from you, such communications shall be null and void and of no force and effect.

PREVAILING PARTY COSTS
The party that is not successful in the event of any litigation or other p roceeding that arises under this Agreement will pay all reasonable costs and expenses (including legal fees on a solicitor and his own client basis together with all applicable taxes) of the successful party incurred with respect to any litigation or proceedings taken for the purpose of enforcing the rights or remedies of the successful party.

MODIFICATION TO TERMS
VIVONET reserves the right to mod ify the terms and conditions of this Agreement or its policies relating to the Service at any time, effective upon posting of an updated version of this Agreement on the Service. You are responsible for regularly reviewing this Agreement. Continued use of the Service after any such changes shall constitute your consent to such changes.

QUESTIONS OR ADDITIONAL INFORMATION
If you have questions regarding this Ag reement or wish to obtain additional information, please send an e-mail to info@vivonet.com.

Confidential and proprietary. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017] Page 14 of 15

Confidential and proprietary. Vivonet Acquisition Ltd. and Vivonet Inc. All rights reserved. [Updated February 23, 2017) Page 15 of 15

'\"v,-...:J.NfT

___,.,.

Contract - Fire @ Lake Ashton (3)

___._...

Adobe  Sign Document History	06/26/20 17 

Created: By: Status:

06/02/2017 

Paul Hillan (phillan@vivonet.com) Signed

Transaction ID:	CBJCHBCAABM1 uvi7fZUVCcfrklOyzl_FO71 TZj082Q4

"Contract - Fire @ Lake Ashton  (3)" History
fJ Document created by Paul Hillan (phillan@vivonet.com) 06/02/2017 - 8: 55:49 AM PDT- IP address: 209.53.1 00.50

� Document emailed to Tricia L Adams (mrsfromage@gmail.com) for signature 06/02/2017 - 8:56:1 1 AM PDT
fJ Document viewed by Tricia L Adams (mrsfromage@gmail.com) 06/02/2017 - 9:01 :33 AM PDT- IP address: 1 07.77.21 6. 1 16 

fJ Document viewed by  Tricia  L  Adams  (mrsfromage@gmail.com)  06/1 5/2017 - 1 2:33:31 PM PDT- IP address: 1 07.77.21 6. 1 06

fJ Document viewed by Tricia L Adams (mrsfromage@gmail.com) 06/26/2017 - 11: 31 :10 AM PDT- IP address: 1 07.77.21 6.92

0'0 Document e-signed by Tricia L Adams (mrsfromage@gmail.com)
Signature Date: 06/26/2017 - 1 :59:08 PM PDT - Time Source: server- IP address: 67.78.203.82

Signed document emailed to Tricia L Adams (mrsfromage@gmail.com) and Paul Hillan (phillan @vivonet.com) 06/26/2017 - 1 :59:08 PM PDT

'"' VI VONET	I   Ap.'.)dWoEbeilEDSf:.i•(gn

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· 1  

Proposed Budget Fiscal Year 20,19

.LAKE ASHTON

Community Development District

May 11, 2018

. !

Lake Ashton Community Development District

TABLE OF CONTENTS

General Fund
Budget
Budget Narrative
Capital Projects Fund Budget
Debt Service Funds Series 2015 Budget
Amortization Schedule A-1 Amortization Schedule A-2

Page 1-2
Page 3-8

Page 9

Page 10
Page 11
Page 12

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Lake Ashton
Community Development District	General Fund

Adopted	Actual	Projected		Total	Proposed Budget		Thru		Next	Projected		Budget

Revenues
Special Assessments - Levy	
$1,572,079	
$1,542,261	
$3 7,282	
$1, 579, 543	
$1,572, 079	
Rental Income	$50,000	$3 1,975	$18,350	$50,325	$50, 000	
Entertainment Fees	$130,000	$137, 108	$15, 645	$152, 753	$130,000	
Newsletter Ad Revenue	$55,000	$72,351	$19,344	$91,695	$55, 000	
Interest Income	$1, 000	$3,284	$2,903	$6, 187	$ 1,000	
Miscellaneous Income	$5, 000	$11, 462	$2,500	$13,962	$5, 000	
Restaurant Lease	$12, 000	$5, 484	$0	$5, 484		
Insurance Proceeds	$0	$192,846	$0	$192,846	$0	
Carryforward	$0	$80, 607	$0	$80, 607	$0	
TOTAL REVENUES	$1,825,080	$2,077,377	$96,024	$2, 173,401	$1, 813,079	
Expenditures						
Supervisor Fees	$3, 000	$1,450	$1, 500	$2, 950	$3, 000	
FICA Expense	$230	$111	$115	$226	$230	
Engineering	$20, 000	$3, 825	$11,4 75	$75,300	$15, 000	
Arbitrage	$7, 200	$0	$7,200	$1,200	$1,200	
Dissemination	$1, 000	$850	$500	$1, 350	$1,000	
Attorney	$20, 000	$13,894	$73,894	$27,787	$25, 000	
Annual Audit	$4, 123	$23	$4, 700	$4, 123	$4,223	
Trustee Fees	$4,310	$0	$4, 310	$4,310	$4, 370	
Management Fees	$58, 482	$29,241 	$29,241	$58, 482	$58,482	
Computer Time	$1,000	$500	$500	$1,000	$1,000	
Tra vel and Per Diem	$0	$100	$0	$100	$0	
Postage	$2, 500	$2, 082	$1,244	$3,326	$3, 500	
Printing & Binding	$1, 600	$585	$705	$1, 290	$1,350	
Newsletter Printing	$32, 000	$20, 062	$18, 786	$38,848	$35,000	
Rentals & Leases	$5, 000	$2, 616	$2,044	$4, 660	$5, 000	
Insurance	$34,2 78	$36, 737 	$0	$36, 737	$40, 411 	
Legal Advertising	$500	$92	$235	$326	$500	
Other Current Charges	$1, 250	$511 	$357	$868	$7,250	
Property Taxes	$12,000	$72,408	$0	$72, 408	$72,500	
Office Supplies	$100	$63	$12	$75	$100	
Dues, Licenses & Subscriptions	$175	$175	$0	$175	$775	
TOTAL ADMINISTRATIVE	$202, 748	$125,324	$90,216	$215,540	$213,231	

Description	FY2018	3/31/2018	6 Months	9/30/2018	FY 2019

Administrative

I

Page 1

£$260, 194)

($615,287)

Page 2

i	I

REVENUES:
Special Assessments

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT
PROPOSED GENERAL FUND BUDGET FISCAL YEAR 2019

The District will levy a non ad-valorem special assessment on all taxable property within the District to fund all of the General Operating Expendituresfor thefiscal year.
Rental Income
Rentalfees chargedfor rental offacilitiesfor events.
Entertainment Fees
Fees charged for the Entertainment Series tickets and Special Event tickets. The entertainment fees include a chargefor those paying with credit cards to offset the credit card processingfees.
Newsletter Income
The District will earn advertising incomefrom local businesses who would like to advertise in the CDD newsletter that is published on a monthly basis.
Interest Income
The District will have all excessfunds invested with the State Board ofAdministration. The amount is based upon the estimated average balance offunds available during thefiscal year.
Miscellaneous Income
Miscellaneous income sources including Monday Morning Coffee Revenue and Postage Revenue as well as any other business center revenue earned during thefiscal year.
Restaurant Lease Income
Monthly lease paymentfor lease of the Restaurant.

EXPENDITURES:
Supervisor Fees
The Florida Statutes allows each board member to receive $200 per meeting not to exceed $4, 800 in one year. The amountfor thefiscal year is based upon thefivepaid supervisors attending thf! estimated 12 monthly meetings at $50 per attendance.
FICA Expense
Represents the Employer's share ofSocial Security and Medicare taxes withheldfrom Board ofSupervisors checks.
Engineering Fees

The District's engineer will be providing general engineering services to the District including attendance and preparation for board meetings, etc.

Page 3

'
I
LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT
PROPOSED GENERAL FUND BUDGET FISCAL YEAR 2019

Arbitrage
The District is required to annually have an arbitrage rebate calculation on the District's Series 2015 Capital Improvement Revenue Refunding Bonds, Currently the District has contracted Grau 8 Associates, an independent certified public accountingfirm, to calculate the rebate liability and submit a report to the District.
Dissemination Agent
The District is required by the Security and Exchange Commission· to comply with Rule 15{c) {2) -12(b) (5), which relates to additional reporting requirements for un-rated bond issues. The District has contracted with Governmental Management Services, toprovide this service.
Attorney
The District's legal counsel will beproviding general Legal services to the District, i.e., attendance and preparation formonthly meetings, review operating and maintenance contracts, etc.
Annual Audit
The District is required annually to conduct an audit of Itsfinancial records by an Independent Certified Public Accounting Firm.
Trustee Fees
The District issued Series 2015A-7 and A-2 Capital Improvement Revenue Refunding Bonds which are held with a Trustee at US Bank. The amount of the trusteefees is based on the agreement between US Bank and the District.
Management Fees
The District receives Management, Accounting and Administrative services as part ofa Management Agreement with Governmental Management Services. These services arefurther outlined in Exhibit "A " of the Management Agreement.
Computer Time
The District processes all ofitsfinancial activities, i.e., accounts payable, financial statements, etc. on a '!'ainframe computer leased by Governmental Management Services.
Postage
Mailing of checks, overnight deliveries, correspondence, etc.
Printing & Binding
Printing copies, printing of computer/zed checks, stationary, envelopes etc.
Newsletter Printing
Cost ofpreparing and printing monthly newsletterfor COD residents.
Rentals & Leases
The District currently has a leasefor the copier at the clubhouse that Is estimated to cost $176 permonth plus copy overage and toner shipping charges.

Page 4

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LAKE ASHTON

I ·'

Insurance

COMMUNITY DEVELOPMENT DISTRICT
PROPOSED GENERAL FUND BUDGET FISCAL YEAR 2079

The District's General Liability & Public Officials Liability Insurance policy and property insurance is with Florida Insurance Alliance {FIA) . FIA specializes in providing insurance coverage to governmental agencies.

I

,.
Legal Advertising

I

The District is required to advertise various notices for monthly Board meetings, public hearings, etc. in a newspaper ofgeneral circulation.
Other Current Charges
Bank charges and any other miscellaneous expenses that are incurred during the year.
Property Taxes
Non-exempt Ad-valorem taxes on property owned within the District.
Offi ce Supplies
Miscellaneous office supplies.
Dues, Licenses & Subscriptions
The District is required to pay an annualfee to the Department of Economic Opportunityfor $175. This is the only expense under this categoryfor the District.

MAINTENANCE:

Field Management Fees
Governmental Management Services will provide on-site management services for the District. The amount budgeted is based on an estimated annual contract amount of$322,330. This amount represents a 3% proposed increase.
Gate & Patrol Officers
Property and gate attendant servicesfor the Lake Ashton Community Development District are now provided by Community Watch Solutions, LLC. The amount budgeted is based on the annual contract.
Pool Officer
Pool monitoring servicesfor the Lake Ashton Community Development District are now provided by Community Watch Solutions, LLC. The amount budgeted Is based on the number ofhours needed.
Pest Control
The District has obtained a contract with Florida Pest Controlfor bugs, mosquitoes and rodent control.
Security/Fire Alarm/Gate Repairs
Annualfire alarm and security alarm monitoring as well as gate repairs.

Page 5

Telephone/Internet

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT
PROPOSED GENERAL FUND BUDGET FISCAL YEAR 2019

I·.

I.

The District is contracted with Spectrum for Internet services, telephone services, and guest wi1i services.	The District is also contracted with Kings Illfor emergency telephoneservice at the pool.
Electric
The District has various accounts with TECOfor electric services.

Account Number	Description	Annual Amount	
211003673699	3555 LAKE ASHTON BL LTS	$500. 00	
211003674275	LAKE ASHTON-OUTDOOR LIGHTING	$46,000. 00	
211003674721	1101 ASHTON PALMS DRIVE	$400.00	
211003674952	ASHTON PALMS DR AIL - OUTDOOR LIGHTING	$500. 00	
211003675454	ASHTON PALMS DRIVE- OUTDOOR LIGHTING	$7, 800.00	
21100367523 1	LAKEASHTON PH/1/B - OUTDOOR LIGHTING	$22, 500. 00	
211003673350	3555 LAKE ASHTON BL GRD HS£	$3, 500. 00	
211003674523	DUNMORE DRIVE AL	$43, 000. 00	
211003673988	4141 ASHTON CLUB DRIVE	$60, 500. 00	
221000397002	LAKEASHTON PH5 LTS	$12, 150. 00	
211003675660	LAKEASHTON PH6	$14, 750. 00	
271003675918	THE PALMS/MA CARTHUR PALMS	$4, 400.00	
TOTAL		$216, 000. 00	

Water
The District receives water servicefrom the City of Lake Wales.

Account Number	Description	Annual Amount	
20735	4141 ASHTON CLUB DRIVE	$8,500. 00	
22109	GATE ENTRANCE-IRR	$1,000. 00	
37767	PALMS IRRIGA TION	$1, 000. 00	
20740	4128 LAKE ASHTON BLVD.	$7, 500. 00	
TOTAL		$12, 000. 00	

Gas
The District currently uses Amer/gas Propanefor gas to heat the pool.
Refuse Service
The District Is currently con tracted with Florida Refuse for garbage pickup and recycling services. The monthly
amount is approximately $833. 00.

Page 6

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Maintenance

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT
PROPOSED GENERAL FUND BUDGET FISCAL YEAR 2019

Repairs and Maintenance
Regular repairs and maintenance to the District's Facilities throughout the community.
Pool and Fountain Maintenance
The District is currently contracted with Heartland Commercial Pool Services. The monthly amount to maintain the pool is $1, 290. A contingency of$4, 520 is includedfor special maintenance and repairs.
Landscape Maintenance
The District has contracted with Yellowstone Landscape to provide landscape maintenance servicesfor the Lake Ashton Community Development District. These services will include, mowing, edging, trimming, debris removal, fertilizer, insect, disease and weed controt shrubs, tree maintenance, irrigation, planting of annuals, mulching, palm pruning, and maintenance on Fig.
Plant Replacement
Replacement ofplants needed throughout the District.
Irrigation Repairs
Unscheduled repairs and maintenance to the irrigation system throughout the District.
Lake Maintenance
The District has obtained a contract with Applied Aquatic Management for the maintenance of 13 ponds, canals, & E- 1 pond Littoral Shelf.

Desaiption Applied Aquatics

Monthly
$1, 545.00

Annually
$18, 540

Wetland/Mitigation Maintenance
The District has obtained a contract with Applied Aquatic Management for Wetlands/Mitigation maintenance. The management program will include the control of vegetation, algae, and grass/brush control.

Description Applied Aquatics

Applied Aquatics

Quarterly
$7,300.00

Semi-Annually
$2, 800. 00

Annuallv
$29,200JJO

Annually
$5, 600.00

Page 7

Area
Mitigation Areas: 18, 7A Wetlands Areas: 2, 3, 4, 5,
6,	8,	Utility	Easement Wetland, and
East Conservation Area Area

Conservation Areafrom Clubhouse West to boat ramp

i	. · 1

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT

PROPOSED GENERAL FUND BUDGET FISCAL YEAR 2019

···1

Permits/Inspections
The District is required to renew permits and other inspections on an annual basis with the City of Lake Wales, Polk County and The State of Florida to comply with regulations.

Office Supplies/Printing & Binding
Office suppliesfor the clubhouse that will include items such as paper, toner, etc.
Operating Supplies
General operating supplies such as chemicals, paints, paper products, etc. for the clubhouse.
Credit Card Processing Fee
The District processes credit cards with Bank ofAmerica.
Dues & Licenses
The District is required to pay an annual subscriptionfor Motion Picture Licensing and Music licensing.
Decorations
The Districtfunds seasonal decorationsfor the Clubhouse.
Special Events
The District will have shows and dances throughout the year.
Capital Proiects
Represents the estimated capital reserve funding for capital expenditures that will be transferred to the Capital Projects Fund. Seepage 9for the Capital Projects Fund Budget.

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Lake Ashton	Capital Projects Funds	I
Community DevelopmentDistrict
Adopted	Actual	Projected		Total	Proposed Budget		Thru		Next	Projected		Budget
Descr/ lion	FY201B	313 1/2018	6 Months	9/30/2018	FY2019
Revenues
Capital Reserve-Transfer In	$260, 194	$260, 194	$0	$260, 194	$225, 050

Carryforward Surplus	$275, 876	$280,425	$0	$280, 425		
TOTAL REVENUES	$536, 170	$542, 770	$2,400	$545, 170	$225, 150	

Interest Income	$100	$2, 152	$2, 400	$100

Expenditures
CaRltal Proje.dS:ff..18
Ballroom Window Replacement	$66, 000	$0	$66,000	$66,000	$0	
Bowling Alley Equipment a Scoreboards	$25, 000	$0	$25, 000	$25,000	$0	
Computer Allowance	$5, 000		$4, 450	$5,000	$0	
Pool Fence Panel Refurbishment	$16,000	$0	$16,000	$16,000	$0	
Fitness Equipment	$19,000	$0	$19,000	$19,000	$0	
Fitness Center Refurbishment	$0	$3,260	$0	$3,260	$0	
HVAC Replacement	$20,000	$6,293	$13,707	$20,000		
Landscape Refurbishment	$10,100	$0	$10, 100	$10, 100	$0	
Pavement Management-Parking lot Resurfacing/Striping	$70,000	$0	$70,000	$70,000	$0	
Pavement Management-2993 LF Gullane, Dornoch, Robellini, Coconut	$165,000	$0	$165,000	$165,000	$0	
Pool Equipment	$10,000	$2,635	$7,365	$10,000	$0	
Restaurant Equipment Allowance	$15,000	$5, 852	$9, 148	$15,000	$0	
Stormwater system and curb Repairs	$25,000	$31, 680		$3 1,680	$0	
11cketing Software	$10,000	$0	$10,000	$10,000		
Traffic Calming Speed Humps (2)	$7,500		$7,500	$7,500	$0	
Capital Reserves-FY 18	$71,920	$0	$71,206	$71,206	$0	
Other Current Charges	$650	$212	$213	$425	$0	
Ca[l.l.taLfto]eds::EY-1!/
Capital Reserves-FY 19	$0	$0	$0	So	$224,650
Other current Charges	$0	$0	$0	$500
TOTAL EXPENDITURES	$536, 170	$50, 482	$494,689	$545, 170	$225, 150
EXCESS REVENUES	$0	$492, 289	$0	$0

Page 9

Lake Ashton
Community Development District

Descrietion Revenues
Special Assessments - Levy

! !

Interest Income CarryForward Surplus 7
TOTAL REVENUES

Expenditures
Series 2015A-1 Interest - 11101
Interest - 05/01 Principal - 05/01 Special Call · 11/01 Special Call - 05/01
Series 2015A ·2 Interest • 11101
Interest • 05101
Special Call · 11/01

Adopted Budget FY 2018

$477,921

1

$0
$ 65,434
$643, 355

$111, 625
$117, 625
$205,000
$25, 000
$0

$15, 125
$15, 125
000

Debt Service Fund
Series 2015 Special Assessment Refunding Bonds

Thru	Next	Budget

Actual	Projected		ProTjoetcatled	Proposed 3/31/2018	6 Months	9/30/2018		FY 2019

$459, 914	$17,202	$477, 116	$474, 536 
$398	$180	$578	$0
$208, 360	$0	$208, 360	$134,054
$668,672	$17,382	$686,054	$608, 590

$711, 625	$0	$111, 625	$104, 750
$0	$110,250	$110,250	$104,750
$200,000	$200,000	$210,000
$55, 000	$0	$55, 000	$0
$0	$20, 000	$20, 000	$0

$15, 125	$0	$15,125	$14, 500
$0	$15,000	$15, 000	$14, 500
$0	$20,000	$20,000	$20, 000

Principal • 05/01
TOTAL EXPENDITURES EXCESS REVENUES
!7!   Carryforward suplus Is net ofthe Reserve Requirement

$20,  $0
$503, 500
$139,855

$5, 000	$0	$5, 000	$0
$186, 750	$365,250	$552, 000	$468,500
$481,922	($347,868)	$134,054	$140,090

2015A·1	$	99,500
2015A -2	$	14, 000
11119 Interest	$	113,500

No. of Units	Per Unit	2015A-1	2015A-2

r

290	$0.00	$0.00	$0.00
146	$539. 74	$78,802.04	$0.00
16	$684.62	$10,953.92	$0.00
296	$765.82	$226, 682. 72	$0.00
24	$1,092.43	$0. 00	$26,218.32
64	$1, 028.98	$38, 000. 64	$2 7,854. 08	I,
87	$977.74	$85,063.38	$0.00	j,
GC	$16,678. 16	$16,678. 16	$0.00
923	$456,180. 86	$54,072.40
Discounts/Collect/on Fees (7%)	($31,932.66)	($3,  785. 07)
Net Assessment Total	$424,248.20	$50,287.33

Page 10

.,I	t
Lake Ashton
Community Development District
Serles 2015A-1 Capital Improvement Revenue Refunding Bonds
/lMQRTIZA TION SCHEDULE
DATE	BALANCE	PRINCIPAL	INTEREST	TOTAL

11101/18	$	4, 190,000. 00	$	$	104, 750.00	$

05/0 1/18	$	4,410,000. 00	$	220, 000.00	$	110, 250. 00	$	496,875. 00

11101/19	$	3,980,000.00	$	$	99,500.00	$

05/01/19	$	4, 190, 000.00	$	210, 000.00	$	104, 750.00	$	419, 500. 00

$	$	$	$

$	$	$	$

05101/20	3,980, 000. 00	225, 000. 00	99, 500. 00	424, 000. 00

$	$	$	$

11/01/20	3, 755,000.00	93,875.00

$	$	$	$

05/01121.	3, 755,000.00	235,000.00	93,875.00	422, 750. 00

$	$	$	$

,11101/21	3,520,000.00	88, 000.00

$	$	$	$

05/01122	3,520,000. 00	245,000.00	88, 000.00	421, 000.00

$	$	$	$

17/01/22	3,275,000. 00	81,875.00

$	$	$	$

05101/23	3,275,000. 00	260,000.00	81,875.00	423, 750. 00

$	$	$	$

1 1/01123	3, 015,000. 00	75, 3 75. 00

$	$	$	$

05/01124	3,0 15,000.00	270, 000. 00	75,3 75.00	420, 750. 00

$	$	$	$

'  1 7/01/24	2, 745,000.00	68, 625.00

$	$	$	$

05/01/25	2, 745, 000.00	285, 000. 00	68, 625. 00	422,250.00

$	$	$	$

1 1/01/25	2, 460, 000.00	61, 500.00

$	$	$	$

05/01/26	2, 460, 000,00	300,000. 00	61, 500.00	423,000.00

$	$	$	$

11/01/26	2, 160,000. 00	54, 000.00

$	$	3	$	$

05101/27	2, 160,000. 00	315,000.00	54, 000.00	423,000.00

$	$	$	$

11/01127	1, 845,000. 00	46, 125. 00

$	$	$	$

05101/28	1,845,000.00	35, 000.00	46, 125. 00	427, 250.00

$	$	$	$

1 7101/28	1, 510,000. 00	37, 750. 00

$	$	$	$

05101/29	1, 510,000.00	350,000.00	37, 750. 00	425, 500.00
11/01129	1, 160,000.00	29, 000.00

1 7101/30	$	790,000. 00	$	$	19, 750.00	$

05101/30	$	1, 160,000.00	$	3 70, 000.00	$	29,000.00	$	428,000.00

$	$	$	$

$	$	$	$

05/01/3 1	790,000. 00	385,000,00	19, 750. 00	424,500.00
11101/31	405, 000.00	10, 125. 00
05/01/32	$	405, 000.00	$	405, 000. 00	$	10, 125.00	$	425,250.00
I	$	4, 410,000.00	$	1,850,750. 00    $	6,427,375.oo I

Page 17

- 1

Lake Ashton
Community Development District
Serles 2015A-2 Capital Improvement Revenue Refunding Bonds
AMORTIZA TION SCHEDULE

05/01118	$	0	$	$	$

DATE	BALANCE	PRINCIPAL	INTEREST	TOTAL
600, 000.   0	20, 000. 00	15, 000. 00	55, 125.00

05/01/19	$	580,000, 00    $	$	14,500.00 $

11/01118	$	580,000, 00	$	20,000.00	$	14,500. 00    $	49, 000.00

05/01/20	$	560, 000. 00	$	$	14,000. 00 $

1 1/01/19	$	560, 000, 00	$	20, 000. 00	$	14,000. 00    $	48,  000. 00

05/01/21	$	540,000.00	$	$	13,500.00 $

11/01/20	$	540, 000. 00	$	20, 000.00	$	13,500. 00    $	47,000.00

05/01/22	$	520,000.00     $	$	73,000.00 $

1 1/01/22	$	$	20, 000.00	$	$	45, 000.00

11/01/21	$	520, 000.00	$	20, 000.00	$	13,000.00    $	46,000.00
500,000.00	12, 500. 00

1 1/01/23	$

05/01/23	$	500,000. 00    $	$	12, 500. 00 $

$	12, 000. 00

480,000. 00
05/01124	$	480, 000.00

05/01125	$	455, 000.00

11/01124	$	455,000.00

$	25, 000.00

$

$

$	25,000.00

$	12, 000. 00   $

$	11,3 75. 00	$

$

$	11,375. 00  $

49, 000.00
47, 750. 00

iiI

I!I

I,

liil

I .

!/

:j1!

11

ii:111
t

I'
:·

0510 1/26	$	430, 000.00	$	$	10, 750. 00 $

11/01125	$	430, 000.00	$	25, 000.00	$	10,750. 00	$	4 6,500.00

05/0112 7	$	405, 000. 00	$	$	10, 125. 00 $

1 1/01126	$	405, 000.00	$	30, 000.00	$	10, 125. 00    $	50,250.  00

05/01/28	$	375, 000. 00    $	$	9,3 75. 00	$

11/01127	$	3 75, 000. 00	$	30,000. 00	$	9,3 75. 00    $	48, 750. 00

05/01/29	$	345, 000. 00    $	$	8, 625. 00	$

11/0 1/28	$	345, 000.00	$	30,000.00	$	8, 625. 00	$	47,250.00

05/01/30	$	315, 000.00	$	$	7,875.00	$

11/01/29	$	315,000.00	$	35,000. 00	$	7,875. 00    $	50, 750. 00

05/01/3 1	$	280, 000.00    $	$	7, 000. 00	$

11/01/30	$	280, 000.00	$	35,000. 00	$	7,000. 00	$	49,000.00

05/01/32	$	245, 000.00	$	$	6, 125.00	$

11/01/31	$	245,000,00	$	35,000.00	$	6, 125.00	$	47,250.00

05/01/33	$	210, 000.00	$	$	5,250.00	$

11/01/32	$	210, 000, 00	$	40,000, 00	$	5,250.00	$	50,500. 00

05101/34	$	170, 000. 00	$	$	4,250.00	$

11/01/33	$	170, 000, 00	$	40, 000, 00	$	4,250. 00    $	48,500. 00

05/01/35	$	130,000.00	$-	$	3,250. 00 $

11/01/34	$	130, 000.00	$	40,000. 00	$	3,250. 00	$	46,500.00

05/01/36	$	90,000.00	$	$	2,250. 00 $

11/01/35	$	90,000. 00	$	45,000. 00	$	2,250. 00    $	49,500. 00

05101/37	$	45,000.00	$	$	1, 125.00 $

11/01/36	$	45,000.00	$	45,000. 00	$	1, 125.00.	$	47,250.00
$	600,000. 00	$	348, 750.00    $	968,875. oo I

Page 12

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT
POLK COUNTY, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORIDA

TABLE OF CONTENTS

INDEPENDENT AUDITOR'S REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS 
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements: Statement of Net Position
Statement of Activities Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Notes to Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund
Notes to Required Supplementary Information

Page 1 -2
3-6

7
8

9

10 

11 

12 
1 3-22

23
24

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GO VERNMENTA UDITING STANDARDS	25-26
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 21 8.41 5, FLORIDA STATUTES, REQUIRED BY RULE 1 0.556(1 0)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	27
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	28-29

fJ ..

Grau & Associates
CERTIFIED PUBLIC ACCOUN TANTS

.

:

951 Yamato Road • Suite 280 Boca Raton, Florida 33431 (561 ) 994-9299 • (800) 299-4728
Fax (561 ) 994-5823
www. graucpa. com

INDEPENDENT AUDITOR'S REPORT
To the Board of Supervisors
Lake Ashton Community Development District Polk County, Florida
Report on the Financial Statements
We have audited the accompanying financial statements ofthe governmental activities and each m ajor fund of Lake Ashton Community Development District, Polk County, Florida (" District") as of and for the fiscal year ended September 30, 201 7, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accou nting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that a re free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the Un ited States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedu res selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers i nternal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but n ot for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 201 7, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other M atters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information be presented to supplement the 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. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about 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 ofthe basic financial statements. We do 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 22, 201 8, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regu lations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance.
Report on Other Legal and Regulatory Requirements
We have also issued our report dated June 22, 201 8, on our consideration ofthe District's compliancewith the requi rements of Section 21 8.41 5, Florida Statutes, as required by Rule 1 0.556(1 0) of the Auditor General of the State of Florida. The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.
i>,1- J-�..
June 22, 2018 

2

MANAGEMENT'S DISCUSSION AND ANALYSIS
Our discussion and analysis of Lake Ashton Community Development District, Polk County, Florida ("District") provides a narrative overview of the District's financial activities for the fiscal year ended September 30, 2017. Please read it in conjunction with the District's Independent Auditor's Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.
FINANCIAL HIGHLIGHTS
The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $1 0,708,566.
The change in the District's total net position in comparison with the prior fiscal year was ($249,376), a decrease. The key components of the District's net position and change in netposition are reflected in the table in the government-wide financial analysis section.
At September 30, 201 7, the District's governmental funds reported combined ending fund balances of
$1 ,1 54,61 3, an increase of $79,937 in comparison with the prior fiscal year. A portion of fund balance is non-spendable for prepaid and deposit items, restricted for debt service, assigned to capital projects and the remainder is unassigned fund balance which is availableforspending at the District's discretion.

OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as the introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) government­ wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all the District's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.
The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only resu lt in cash flows in future fiscal periods.
The government-wide financial statements include all governmental activities that are principally supported by special assessment. The District does not have any business-type activities. The governmental activities of the District include the general government (management), maintenance and culture and recreation functions.

Fund Financial Statements
A fund is a g rouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: governmental funds.

3

OVERVI EW OF FINANCIAL STATEMENTS (Continued)
Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities  in  the  government-wide  financial  statements.    However,  unlike the  government-wide  financial statements, governmental fund financial statements focus on near-term inflows and outflow of spendable resou rces , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District's near-term financing requi rements.
Because the focus of governmental funds is narrower than that ofthe govern ment-wide financial statements, it is useful to compare the information presented for governm ental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of reven ues, expenditures, and changes in fund balances provide a reconciliation to facil itate this comparison between governmental funds and governmental activities.
The District maintains three governmental funds for external reporti ng. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditu res, and changes in fund balances for the general fund, debt service fund and capital projects fu nd, all of which are considered m ajor funds.
The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

The notes provide additional information that is government-wide and fund financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS 

Notes to the Financial Statements
essential to a fu ll understanding of the data provided in the

As noted earlier, net position may serve over time as a useful indicator of an entity's financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year.
Key components of the District's n et position are reflected in the followi ng table:
NET FOSrTION SEPTEMBER 30,

Current and other assets	$ 1,254,251	$ 1, 1 59, 053	
Capital assets , net of depreciation	14,91 2,577	15,61 3,671	
Total assets	16,1 66,828	16,772,724	
Current liabilities	205,263	1 97,398	
Long-term liabilities	5,252,999	5,61 7,384	
Total liabilities	5,458,262	5,814,782	
Net pos ition			
Net investment in capital assets	9,659,578	9,996,287	
Restricted	343,486	384,443	

2017	201 6

Unrestricted

705,502

577,212 

Total net pos ition	$ 10,708,566	$ 10,957,942

4

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)
The District's net position reflects its investment in capital assets (e. g. land, land improvements, and infrastructure) less any related debt used to acquire those assets that is sti ll outstanding. These assets are used to provide services to residents; consequently, these assets are not available for futu re spending. Although the District's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cann ot be used to liquidate these liabilities.

The restricted portion of the District's net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District's other obligations.
The District's net position decreased during the most recent fiscal year. The maj ority of the decrease represents the extent to which the cost of operations and depreciation expense exceeded ongoing program revenues.

Key elements of the change in net position are reflected in the following table:

CHANGES IN NET FOSrTION

10,957, 942	11 ,336,721
$ 10,708,566	$ 10,957, 942

FOR THE FISCAL YEAR ENDED SEPTEI\ABER 30,

Revenues : A'ogram revenues	201 7	201 6	
Charges for services	$ 2,455,312 	$ 2,461 ,203	
Operating grants and contributions	823	436	
Gapital grants and contributions	2, 916 	1, 71 2	
General revenues			
Unrestricted investrrent earnings	7,568	3,965	
Total revenues	2,466,61 9	2,467,31 6	
Expenses:			
General governrrent	200,412 	201 ,750	
Maintenance and operations	726, 046	875, 772	
Culture and recreation 	1 , 537,31 8	1 ,499,000	
Interest	252,21 9	269,573	
Total expenses	2,71 5,995	2,846,095	
Change in net position	(249,376)	(378, 779)	
Net position - beginning
Net position - ending

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 201 7 was $2,71 5,995. The costs of the District' s activities were primarily funded by program revenues. Program revenues are comprised primarily of assessments. The remainder of the current fiscal year revenue includes interest revenue and miscellaneous income. The decrease in current fiscal year expenses is primarily the result of the District incurring less maintenance and operations expenses.

GENE RAL BUDGETI NG HIGHLIGHTS
An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes.  The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the agg regate . Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 201 7 was amended to increase revenues by $42 , 11 5 and increase appropriations by $42,1 14. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 201 7. 

5

CAPITAL ASSETS AND DEBT ADMINI STRATION
Capital Assets

At September 30, 2017, the District had $24,655,347 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $9,742,770 has been taken, which resulted in a net book value of $14,912, 577. More detailed information about the District's capital assets is presented in the notes of the financial statements.

Capital Debt
At September 30, 2017, the District had $5,070,000 Bonds outstanding for its governmental activities. More detailed information about the District's capital debt is presented in the notes of the financial statements.

ECONOMIC FACTORS AND NEXT YEAR'S BUDG ETS AND OTHER EVENTS
The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Lake Ashton Commun ity Development District's Finance Department at 5385 N. Nob Hill Road, Sunrise, Florida 33351 .

6

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORIDA
STATEMENT OF NET POSITION SEPTEMBER 30, 201 7

ASSETS
Cash Investments
Accounts receivable Assessments receivable P repaid items and deposits Restricted assets :
Investments Interest receivable
Capital assets

Governmental Activities

$	139,214 
594,609
10 ,1 58
4, 19 1
55, 487

450,51 9
73

Nondepreciable	2,462, 929	
Depreciable, net	12,449 , 648	
Total assets	16, 166,828	
LIABILITIES
Accounts payable	
59, 282	
Deposits payable	11, 000	
Unearned revenue	29, 356	
Accrued interest payable	1 05,625	
Non-current liabilities :
Due within one year	
225 ,000	
Due in more than one year	5,027,999	
Total liabi lities	5, 458, 262	
NET ASSETS
Net investment in capital assets	
9, 659, 578	
Restricted for debt service	343, 486	
Unrestricted	705, 502	
Total net position	$	10 ,708, 566	

See notes to the financial statements

7

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORIDA

STATEMENT OF ACTIVITIES

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 

Charges for

P rogram Revenues Operating Grants and

Capital G rants and

Net (Expense) Revenue and Changes in N et Position

Governmental

Functions/Programs P rimary government:

$

200,412	$

200,412	$

$

$

Governmental activities : General government

Expenses

Services

Contributions

Contributions

Activities

Maintenance and operations	726 , 046	1, 382, 935		2, 916 	659, 805	
Culture and recreation	1, 537,31 8	297, 141 			(1 , 240, 1 77)	
Interest on long-term debt	252, 21 9	574, 824	823		323,428	
Total governmental activities	2,71 5,995	2,455,312 	823	2, 916 	{256, 944)	

General revenues :	
Unrestricted i m.estment earnings	7, 568	
Total general revenues	7, 568	
Change in net position	(249, 376)	
Net position - beginning	1 0, 957, 942	
Net position - ending	$	1 0,708, 566	

See notes to the financial statements

8

- --   ------------------------	-----------------------	---- -	---------	---------

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORIDA
BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 201 7

General	M ajor Funds Debt
Sennce	
Capital P rojects	Total
Governmental Funds	
ASSE TS				
Cash
Investments	$	34944,, 532549	$	450, 51 9	$	44, 855
250, 085	$	1 39,214 
1, 045, 128	
Due from other funds	9,458			9, 458	
Accrued interest receivable				73	
Accounts receivable	1 0,1 58			1 0,1 58	
Assessments receivable	3, 206	985		4, 191	
P repaid items	55,487			55, 487	
Total assets	$	51 7 ,1 92	$	451 ,577	$	294, 940	$	1 , 263, 709	

73

LIABILITIES AND FUND BALANCES

Accounts payable	$	51 , 759	$	$	7, 523	$	59, 282	
Deposits payable	1 1 ,000 			11 ,000	
Due to other funds		2,466	6, 992	9,458	
Unearned revenue	29,356			29, 356	
Total liabil ities	92 ,115 	2, 466	14,51 5	1 09, 096	
Fund balances:					
Nons pendable:
P repaids	
55,487	
55, 487	

Liabilities :

Restricted for: Debt sennce
Assigned to:

449,111 

449, 111 

Capital projects	280,425	280,425
Unassigned:
General fund	369, 590			369, 590	
Total fund balances	425, 077	449,111 	280,425	1, 1 54,61 3	
Total liabi lities and fund balances	$	51 7,1 92	$	451 ,577	$	294, 940	$	1, 263,709	

See notes to the financial statements

9

 	 	

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, F LORI DA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 201 7

Total fund balances - governmental funds
Amounts reported for governmental activities in the statement of net pos ition are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds . The statement of net pos ition includes those capital assets , net of any accumulated depreciation, in the net position of the government as a whole.
Cost of capital assets Accumulated depreciation
Liabilities not due and payable from current available resources are not reported as li abilities in the governmental fund  statements . All liabi lities , both current and long-term , are reported in the government-wide financial statements .
Accrued interest payable Bonds payable
Net position of governmental activities

See notes to the financial statements

$

24,655, 347

(1 05, 625)
(5 ,252 , 999)	(5 ,358 ,624)
$	1 0,708, 566

(9 ,742, 770)

1, 1 54, 613 

14 ,912,577

10 

	

General	M ajor Funds Debt
Service	
Capital P rojects	Total Governmental Funds	
REVE NUES 					
Assessments	$	1, 583, 347	$	574 , 824	$	$ 2, 1 58, 1 71	
Rental income	60, 850			60, 850	
Entertainment fees	1 38, 885			1 38,885	
Newsletter ad revenue	65, 521 			65, 521 	
Other revenues	31 ,885			31 ,885	
Interest	7, 568	823	2,91 6	11 ,307	
Total revenues	1, 888, 056	575,647	2,91 6	2,466,61 9	

EXPENDITURES
Current:
General government

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES   G OVERN MENTAL FUNDS

200 ,412 

200,41 2

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 201 7

Maintenance and operations	53, 850		114,988	1 68, 838	
Culture and recreation Debt service:
P rincipal	1, 283, 595	

355 ,000		1, 283, 595

355, 000	
Interest		269,000		269 ,000	
Capital outlay			1 09, 837	1 09, 837	
Total ex penditures	1, 537, 857	624, 000	224, 825	2, 386, 682	
Excess (deficiency) of revenues over (under) expenditures	
350, 1 99	
(48, 353)	
(221 ,909)	
79, 937	

OTHER FINANCING SOURCES (US ES)
Transfer in (out)	
{300, 600)		
300 ,600		
Total other financing sources (uses)	(300, 600)		300 ,600 		
Net change in fund balances	49 ,599	(48 ,353)	78 ,691 	79, 937	
Fund balances - beginning	375,478	497 ,464	201 ,734	1, 074, 676	
Fund balances - ending	$	425 , 077	$	449, 111 	$	280,425	$ 1,1 54,61 3	

See notes to the financial statements

11 

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORI DA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 201 7

Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures ; however, the cost of capital assets is eliminated in the statement of activities and capitalized in the statement of net position.

$	79, 937

109,837

Depreciation of capital assets is not recognized in the governmental fund financial statements, but is reported as an expense in the statement of		
activities .	(8 10 , 931) 	
Repayment of long-term liabilities are reported as expenditures in the governmental fund financial statements, but such repayments reduce

statement of activities .	

355, 000	
Amortization/accretion of Bond discounts/premiums is not  recognized in the governmental fund financial statements, but is reported as an adjustment to expense in the statement of activities .	

9, 385	
The change in accrued interest on long-term liabilities between the current

the governmental fund financial statements.	

7, 396	
Change in net position of governmental activities	$	(249, 376)	

liabilities in  the  statement  of net  position  and  are  eliminated  in the

and  prior fiscal years  is  recorded  in  the  statement of activities ,  but  not in 

See notes to the financial statements

12 

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 - NATURE OF ORGANIZATION AND REPORTING ENTITY

Lake Ashton Commun ity Development District ("the District") (formerly Lake Myrtle Community Development District prior to a name change on February 21 , 2001) was created on August 1 5, 2000 pursuant to Ordinance No. 2000-1 1 enacted by the City Commission of the City of Lake Wales, Florida, under the "Uniform Community Development District Act of 1 980", otherwise known as Chapter 1 90, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue Bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.
The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion ofthe infrastructure necessary for community development within the District.
The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by qualified electors of the District. The Board of Supervisors ofthe District exercise all powers g ranted to the District pursuant to Chapter 1 90, Florida Statutes.
The Board has the responsibility for:
Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.
The financial statements were prepared in accordance with Governmental Accounting Standards Board ("GASS") Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations forwhich the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements.
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; operating-type special assessments for maintenance and debt service are treated as charges for services and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

13 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis ofaccounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.  Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requi rements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Revenues a re recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period . Expenditu res are recorded when a liabil ity is incurred , as under accrual accounting. However, debt service expenditures a re recorded only when payment is due.
Assessments
Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based upon adopted budget and levied annually at a public hearing of the District. Debt Service Assessments are levied when Bonds are issued and assessed and collected on an annual basis. The District may collect assessments directly or uti lize the uniform method of collection (Chapter 1 97. 3632 , Florida Statutes). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by County Tax Collector on November 1 and  due on  or before Mar.ch  31  of each year. P roperty owners may prepay a portion or all of the Debt Service Assessments on their property su bject to various provisions in the Bond documents.
Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

The District reports the following major governmental funds:

General Fund
The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted fo r in another fund. 
Debt Service Fund
The debt service fund is used to account for the accumulation of resources forthe annual payment of principal and interest on long-term debt.
Capital Projects Fund
This fund accounts for the financial resources to be used for the acquisition or construction of m ajor infrastructure and repairs and maintenance within the District.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.
When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources fi rst for qualifying expenditures, then un restricted resources as they are needed. 

14 

 	 	

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Liabilities and Net Position or Equity
Restricted Assets
These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

Deposits and Investments
The District's cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing) .
The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section
21 8.41 5 (17) Florida Statutes.  The District may invest any surplus public funds in the following: 
The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida lnterlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
I nterest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.
The State Board of Ad ministration's ("SBA") Local Government Surplus Funds Trust Fund (" Florida PRIME") is a"2a-7 like" pool. A "2a-7 like" pool is an external investment pool that is not registered with the Securities and Exchange Commission ("SEC") as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a-7 of the I nvestment Company Act of 1 940, which comprises the rules governing money market funds. Thus, the pool operates essentially as a money market fund. The District has reported its investment in Florida PRIME at amortized cost for financial reporting purposes.
Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due.

The District records all interest revenue related to investment activities in the respective funds. I nvestments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.
Prepaid Items 
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as p repaid items in both g overn ment-wide and fund financial statements.
Capital Assets
Capital assets which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.  Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized . M ajor outlays for capital assets and improvements are capitalized as projects are constructed.

15 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Liabilities and Net Position or Equity (Continued)
Capital Assets {Continued)
Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets Equipment
Buildings and I nfrastructure

Years 10 
20 - 30

In the governmental fund fi nancial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements. 
Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received , but not yet earned.

Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred.
In the fund financial statements,  governmental fund types recognize premiums and discounts, as well as issuance costs,  during the current period.   The face amount of debt issued  is  reported as other financing sources.  Premiums received on debt issuances a re reported as other financing sources while discounts on debt issuances a re reported as other financing uses.  Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Deferred O utflows/I nflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s) . For example, the District would record deferred outflows of resources on the statement of net position related to debit amounts resulting from current and advance refundings resulting in the defeasance of debt (i.e. when there are differences between the reacquisition price and the net carrying amount of the old debt) .
Deferred inflows of resources represent an acquisition of net position that applies to futu re reporting period(s). For example, when an asset is recorded in the governmental fund financial statements, but the revenue is unavailable, the District reports a deferred inflow of resou rces on the balance sheet until such times as the revenue becomes available.
Fund Equity/Net Position
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

16 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Liabilities and Net Position or Equity (Continued)
Fund Equity/Net Position (Continued)
The District can establish lim itations on the use of fund balance as follows :
Committed fund balance - Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.
Assigned fund balance - Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assig n fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year's ap propriated budget. Assignments a re generally temporary and normally the same formal action need not be taken to remove the assignment.
The District first uses comm itted fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.
Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows  of  resources.  Net  position  in  the  government-wide  financial  statements  are  categorized  as  net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructu re and property, plant and equipment. Restricted net position represents the assets restricted by the District's Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.
Other Disclosures
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and l iabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
NOTE 3 - BUDGETARY INFORMATION

The District is requi red to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end. 
The District follows these p roced ures in establishing the budgetary data reflected in the fi nancial statements.
Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the followi ng October 1. 
Public hearings a re conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board. 
All budget changes must be approved by the District Board.
The budgets a re adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

17 

NOTE 4 - DEPOSITS AND INVESTMENTS

Deposits
The District's cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate Bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

Investments
The District' s investments were held as follows at September 30, 201 7: 

US Bank Money Market 5 - ct Investment in Local Government Surplus Funds Trust Fund (Florida PRIME)

Amortized Cost

$	450,51 9

594,609
$  1, 045, 128 

Credit Ris k NIA
AAAm

Maturities NIA

Weighted average of the fund portfolio: 51 days

Credit risk - For investments, cred it risk is generally the risk that an issuer of an investment wi ll not fu lfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. I nvestment ratings by investment type are included in the preceding summary of investments.
Concentration risk - The District places no limit on the amount the District may invest in any one issuer.
Interest rate risk - The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.
However, the Bond Indenture limits the type of investments held using unspent proceeds.
Fair Value Measurement - When applicable, the District measu res and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framewo rk for measuring fair value p rovides a fair value hierarchy that prioritizes the inputs to valuation techniques.
These guidelines recognize a three-tiered fair value hierarchy, in o rder of highest priority, as follows:
Level 1: Investments whose values a re based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,
Level 3: I nvestments whose inputs are unobservable.
The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measu rement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs .
Money market investments that have a m atu rity at the time of pu rchase of one year or less and are held by governments  other than  external  investment pools should  be  measured  at amortized  cost.  For external investment pools that qualify to be measu red at amortized cost, the pool's participants should also measu re their investments in that external investment pool at amortized cost for financial reporting purposes. Accordingly, the District's investments have been reported at amortized cost above.

18 

NOTE 4 - DEPOSITS AND INVESTMENTS (Continued)
Investments {Continued)
External Investment Pool-With regard to redemption gates, Chapter 21 8 .409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund , for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibil ity. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended bythe Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional  15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days."
With regard to liquidity fees, Florida Statute 21 8.409(4) provides authority for the SBA to impose penalties for early withd rawal, su bject to disclosu re in the enrollment materials of the amount and purpose of such fees. At present, no such disclosu re has been made.
As of September 30, 201 7, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant' s daily access to 1 00% of their account value.
NOTE 5- INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
l nterfund receivables and payables at September 30, 201 7 were as follows :

Fu nd General Debt service
Capital projects Total

Receivable	Payable

9,458

$

$
2,466
6, 992
$

The outstanding balances between funds result primarily from the time lag between the dates that transactions are recorded in the accounting system and payments between funds a re made. The balances pertain to assessment monies held in the debt service fund which have not yet been remitted to the general fund as well as funds to be reimbursed to the general fund by the capital p rojects fund for expenditures initially covered by the general fund.
l nterfund transfers for the fiscal year ended September 30, 201 7 were as follows:

Fund General fund
Capital projects Total

Transfer in	Transfer Out
$	$   300,600
300,600
$   300,600	$ 300,600

Transfers are used to move revenues from the fund where collection occurs to the fund where funds have been reallocated for use. In the case of the District, transfers from the general fund to the capital projects were made to accumulate funds for future infrastructu re maintenance and replacement costs.

19 

NOTE 6 - CAPITAL ASSETS
Capital asset activity for the fiscal year ended September 30, 201 7 was as follows :

Governmental activities
Capital assets , not being depreciated Land and land improvements

Infrastructure - w ater control	6,633, 589		6,633,589	
Infrastructure - other	2,1 1 9,441		2,1 1 9,441	
Infrastructure - roads	6, 778,263		6,778,263	
Infrastructure - recreational	6, 1 32,209		6,132,209	
Equipment	41 9, 079	109,837	528, 916 	
Total capital assets , being depreciated	22,082,581	1 09, 837	22,1 92,41 8	
Less accumulated depreciation for: Infrastructure - w ater control	
2,51 7, 536	
221 ,120	
2,738, 656	
Infrastructure - other	1 , 553,270	1 05,972	1 ,659,242	
Infrastructure - roads	2,220,621	230,1 16 	2,450,737	
Infrastructure - recreational	2,492,448	204,407	2,696,855	
Equipment	147,964	49,316 	1 97,280	
Total accumulated depreciation	8,931 ,839	81 0,931	9,742,770	
Total capital assets, being depreciated, net	13,1 50, 742	(701 ,094)	12 ,449,648	
Governmental activities capital assets , net	$ 15 ,61 3,671	$ (701 ,094)	$	$ 14 ,91 2,577	

Total capital assets , not being depreciated Capital assets , being depreciated

Beginning

$

2,462,929
2,462,929

$

$

$   2,462,929
2,462,929

Balance	Additions

Reductions

Ending Balance

Ma intenance and operations	$	557 ,208	
Culture and recreation	253,723	
	$	81 0,931 	

Depreciation expense was charged to the following function/programs:

NOTE 7 - LONG TERM LIABILITIES
On March 30, 201 5, the District issued $5,1 1 5,000 Capital Imp rovem ent Revenue Refunding Bonds, Series 201 5A-1 , and $720, 000 Capital Improvement Revenue Refunding Bonds, Series 201 5A-2 (Collectively the "Series 201 5 Bonds"). The Series 201 5A-1 Bonds consist of $2,485,000 Term Bonds Series 201 5A-1 due May 1, 2025 and $2,630,000 Term Bonds Series 201 5A- 1 due May 1, 2032 . The Series 201 5A-2 consist of

$235,000 Term Bonds Series 201 5A-2 due May 1, 201 5 and $485, 000 Term Bonds Series 201 5A-2 due May 1, 2037. The Bonds have a fixed interest rate of 5. 00%. The Bonds were issued to refund to, together with other legally available moneys of the District, currently refund and redeem all the District's outstanding Capital Improvement Revenue Bonds, Series 2001A, Capital Imp rovement Revenue Bonds, Series 2003A, and Capital Improvement Revenue Bonds, Series 2005A (collectively, the "Refunded Bonds"). Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 201 6 through May 1, 2037.
The Series 201 5 Bonds are subject to redemption at the option of the District prior to maturity. The Series 201 5 Bonds a re subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments and prepaid $1 35,000 of the Bonds.

20

NOTE 7 - LONG TERM LIABILITIES (Continued)
The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of p roceeds to pay for the infrastructure improvements and the proced ures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requi rements at September 30, 2017 .

Changes in long-term liability activity for the fiscal year ended September 30, 201 7 were as follows :

Governmental activities Bonds payable:	Beginning Balance	
Additions	Reductions	Ending	Due Within
Balance	One Year	
Series 2015 	$ 5,425,000	$	$	355, 000	$ 5,070,000	$ 225, 000	
Original Is s ue Premium	1 92,384	9,385	1 82,999	
Total	$ 5,61 7,384	$	$	364,385	$ 5,252,999	$ 225,000	

At September 30, 2017 , the scheduled debt service requi rements on the long-term debt were as follows:
Governmental Activities
Year ending
September 30:	Principal	Interest	Total	
2018 	$	225,000	$ 253 ,500	$	478,500	
2019 	235,000	242 ,250	477,250	
2020	245,000	230,500	475,500	
2021 	260,000	21 8,250	478,250	
2022	270,000	205,250	475,250	
2023-2027	1, 580, 000	808,750	2,388,750	
2028-2032	2,040,000	369,750	2,409,750	
2033-2037	21 5,000	33,000	248,000	
Total	$ 5,070,000	$ 2,361 ,250	$ 7,431 ,250	

NOTE 8 - INTE RG OVERN MENTAL AGREEMENT
In a prior fiscal year, the District entered into an interlocal agreement (the "Agreement") with Lake Ashton II Community Development District whereby the two Districts agreed to share and prorate the maintenance and operation of the roadways described in the Agreement based on the number of housing units for which certificates of occupancy have been issued in each District as of September 15 of each year. However, in the prior fiscal year, the Agreement was amended to make all current and future roadways and appurtenances owned by and located within each District su bject to the Agreement as of the date of acquisition or control by the respective District without need for fu rther amendment. Additionally, the District agreed to each reimburse the other for prior roadway repair costs paid under the original Ag reement.
NOTE 9 - MANAGEMENT COMPANY
The District has contracted with a management company to perform management advisory services, which include fi nancial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.
NOTE 10 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors  and  omissions;   and  natural  disasters.  The  District  has  obtained  commercial  insurance  from independent th ird parties to mitigate the costs of these risks; coverage may n ot extend to all situations. There were no settled claims during the past three years.

21 

NOTE 11 - SUBSEQUENT EVENTS

Bond Payments
Subsequent to fiscal year end, the District made prepayments totaling $60,000 on the Series 2015 Bonds. The prepayments were extraordinary mandatory redemptions as outlined in the Bond Indenture.

22

 	 	 	 	 	

LAKE AS HTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORI DA

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 201 7

Budgeted Amounts
Original	

Final	
Actual Amounts	Variance with Final Budget - Positive
(Negative)	
REVENUES 
Assessments	
$	1 , 572 , 079 	
$ 1, 572, 079	
$	1, 583 , 347	
$	11 , 268	
Rental income	45, 000	62 , 1 00	60, 850	(1 ,250)	
Entertainment fees	1 30, 000	138, 885	1 38, 885	
	
News letter ad re\.€nue	50, 000	66, 1 30	65, 521	(609)	
Other reven ues	5, 000	5, 000	31 , 885	26, 885	
Restaurant Lease	12 ,000 	12 ,000		(1 2, 000)	
Interest	1, 000 	1, 000 	7, 568	6, 568	
Total revenues	1 , 81 5, 079	1 ,857, 1 94	1, 888, 056	30, 862	

EXPENDITURES
Current:						
General government	202, 079	202, 079	200, 412 	1, 667	
Maintenance and operations	53, 340	53, 340	53, 850	(51 0)	
Culture and recreation	1, 259, 061	1, 301 ,1 75	1 , 283, 595	1 7, 580 	
Total expenditures	1, 514,480	1, 556, 594	1, 537, 857	1 8,737	
Excess (deficiency) of revenues over (under) expenditures	
300, 599	
300, 600	
350, 199	
49, 599	
OTHER FINANCING SOURCES
Transfer out	
{300, 600}	
{300, 600}	
{300, 600}		
Total other financing sources	(300,600}	(300, 600}	(300, 600}		
Net change in fund balances	$	(1 )	$	49, 599	$	49, 599	
Fund balance - beginning			375, 478		
Fund balance - ending			$	425, 077		

See notes to required supplementary information

23 

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT POLK COUNTY, FLORIDA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget forthe general fund. The District's budgeting process is based on estim ates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).
The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended Septem ber 30, 2017 was amended to increase revenues by $42, 115 and increase appropriations by $42, 1 14. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2017.

24

Grau & Associates
CERTI FIED PUBLIC ACCOU NTANTS

!

951 Yamato Road • Suite 280 Boca Raton, Florida 33431 (561) 994-9299 • (800) 299-4728
Fax (561 ) 994-5823
www. graucpa. com

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS

To the Board of Supervisors
Lake Ashton Community Development District Polk County, Florida
We  have  audited,  in  accordance with the  auditing  standards generally accepted  in the  United  States  of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Lake Ashton Community Development District Polk County, Florida ("District") as ofand for the fiscal year ended September 30, 201 7, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our opinion thereon dated June 22, 201 8.
Internal Control Over Financial Reporting
In planning and performing our audit ofthe financial statements, we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first parag raph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assu rance about whether the District's financial statements are free from m aterial  misstatement, we performed tests of its  compliance with certain  provisions of laws,  regulations, contracts,  and  agreements,  noncompliance  with  which  could  have  a  direct  and  material  effect  on  the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do n ot express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

25 

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness ofthe entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this comm unication is not suitable for any other purpose.
lb,{t,4 ,• J-tt,.� June 22 , 201 8

26

Grau & Associates
CERTIFIED  PUBLIC ACCOUNTANTS

951 Yamato Road • Suite 280

Boca Raton, Florida 33431 
(561 ) 994-9299 • (800) 299-4728
Fax (561) 994-5823
www. g raucpa .com

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.41 5, FLORIDA STATUTES, REQUIRED BY RULE 10 .556( 10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA
To the Board of Supervisors
Lake Ashton Community Development District Polk County, Florida
We have examined Lake Ashton Community Development District, Polk County, Florida's ("District") compliance with the requirements of Section 21 8.41 5, Florida Statutes, in accordance with Rule 1 0.556(1 0) of the Auditor General of the State of Florida during the fiscal year ended September 30, 201 7. Management is responsible for District's compliance with those requi rem ents. Our responsibility is to express an opinion on District's compliance based on our examination. 
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requi rements referenced in Section 21 8.41 5, Florida Statutes. An examination involves performing p rocedures to obtain evidence about whether the District complied with the specified requi rem ents. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District's compliance with specified requirements.
In our opinion, the District complied,  in all material respects, with the aforementioned requ irements for the fiscal year ended September 30, 201 7. 
This report is intended solely for the information and use ofthe Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, management, and the Board of Supervisors of Lake Ashton Community Development District, Polk County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

June 22, 201 8

27

 	 	 	

Grau & Associates
CERTIFIED PUB LIC ACCOUNTANTS

951 Yamato Road • Suite 280 Boca Raton, Florida 33431 (561) 994-9299 • (800) 299-4728
Fax (561) 994-5823
www. graucpa. com

MANAGEMENT LETTER PU RSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA
To the Board of Supervisors
Lake Ashton Community Development District Polk County, Florida
Report on the Financial Statements
We have audited the accompanying basic financial statements of Lake Ashton Community Development District, Polk County, Florida ("District") as of and for the fiscal year ended September 30, 201 7, and have issued our report thereon dated June 22, 201 8.

Auditor's Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10 .550, Rules of the Auditor General.
Other Reporting Requirements
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit ofthe Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Auditor's Report on an examination conducted in accordance with A/CPA Professional Standards, AT-C Section 31 5, regarding compliance requirements in accordance with Chapter 10 .550, Rules ofthe Auditor General. Disclosures in those reports, which are dated June 22, 201 8 , should be considered in conjunction with this management letter.
Purpose of this Letter
The purpose of this letter is to comment on those m atters required by Chapter 1 0 .550 of the Rules of the Auditor General of the state of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the fi rst paragraph, we report the fo llowing: 
Current year findings and recommendations.
Status of prior year findings and recommendations.	 Ill. Compliance with the Provisions of the Auditor General of the State of Florida.

Our management letter is intended solely for the inform ation and use of the Legislative Auditing Committee, members of the  Florida  Senate and the  Florida  House of Representatives,  the  Florida Auditor General, Federal and other g ranting agencies, as applicable, management, and the Board of Supervisors of Lake Ashton Community Development District, Polk County, Florida and is not intended to be and should not be used by anyone other than these specified parties.
We wish to thank Lake Ashton Community Development District, Polk County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us.
1?4,w ��..
June 22, 2018 

28

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS
None
PRIOR YEAR FINDINGS AND RECOMMENDATIONS
None
Ill. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENE RAL OF THE STATE OF FLORIDA
Unless otherwise requi red to be reported in the auditor's report on compliance and internal controls, the management letter shall include, but not be lim ited to the following: 

A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2016 .
Any recommendations to improve the local governmental entity's financial management.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2017.
Noncompliance with p rovisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred , that have an effect on the financial statements that is less than m aterial but which warrants the attention of those charged with governance.
There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 201 7. 
The name or official title and legal authority of the District are disclosed in the notes to the financial statements.
The financial report filed with the Florida Department of Financial Services pursuant to Section 21 8. 32(1) (a) , Florida Statutes agrees with the September 30, 201 7 financial audit report.
The District has not m et one or more of the financial emergency conditions described in Section 21 8.503(1), Florida Statutes.
We applied financial condition assessment procedures and no deteriorating financial conditions were noted.  It  is management's responsibility to monitor financial condition, and our financial condition assessment was based in part on rep resentations made by management and the review of financial information provided by same. 

29 

LAKE ASHTON

Monday Coffee

Community Director's Report

Lake Ashton CDD District Manager Lake Ashton CDD Board of Supervisors July 2018 

Featured speakers in the upcoming weeks include Winter Haven Main Street, Winter Haven Public Library, Lake Wales Care Center Stay at Home Worker's, Reading Pa ls, and more.

LA Times
Revenue collected for the July newsletter is $6,830 .
The Aug ust edition of the newsletter will be re leased and distributed July 31 .
Activities & Resident Services

Upcoming activities and special events set up by staff include Bloodmobile Blood D rive, Blood Pressure & Glucose checks, Alter Eagles, Beach Party Bash, Key WesIt week-long trip, a tribute ba nd showcase, Oktoberfest, and more. 
There is a Fitness Center Orientation hosted by Lake Wales Medical Center on July 26.

New Resident Orientation is scheduled at the Clubhouse August 15 (Bob Ference) and October 17 ( Mike Costello) .
Staff has confirmed shows for the 20 19 Entertain ment Series. The dates will be January
9, Februa ry 1 5, March 8, March  1 5, and April 5. 

Sixty additional seats at each showtime (5 pm and 8 pm) , for a total of 1 20 seats for the shows  combined,  will  be  added  to  accommodate  the  increased  demand  of  the Entertain ment Series.

P romotional posters announcing the 20 19 Entertain ment Series and Featu red Shows as 
well as ticket sales information will be re leased in the September edition of the LA Times .
Room Rental 

The Ballroom was rented out nine (9) times in June; a report is attached . Rental revenue is $6,600 .

In June thirty-five (35) inquiries came in for Ballroom rental. 

Restaurant
Two Square POS stands were purchased . The POS software is installed on one system and Restaurant staff is in the process of integrating menu items and testing its functionality. Once that system is operational the second system will be installed . Both systems should be operational soon. 

A monthly lease compliance audit was conducted .
Staff received the second installment of the security deposit on Friday, July 6.
NiNi's at Lake Ashton has started releasing specials on a weekly basis on Tuesdays. These
are being sent via electronic mail to residents.
NiNi's at Lake Ashton is providing sandwiches for sale at Bingo every Monday.
A maintenance walk-through is scheduled for Monday, July 1 6.
Security, Guest Registration, & Public Safety
LACDD BOS approved adding bulk text and voice services to the website hosting platform for the purpose of distributing public safety messages. An article was included in the June and July editions of the LA Times informing residents of how to sign up for these messages. A form is also available at the Activities Desk for residents that wish to have staff complete  the  sig n-up process. A  test  message was sent on  Ju ly 4  to the
approximate 1 00 residents that have signed up. 
The pool emergency phone was tested in June and is operational. Lightning knocked it offline for a couple of days at the end of June but Kings Ill staff repaired the phone onsite and it is currently operational.
Thompson Nursery Road Security Officers processed 6558 guest vehicles in June. 
Staff and Security Officers registered 228 guests in June. 

Capital Projects & Other Updates
Staff presented a proposal for 400 ' of Lake Ashton lake bank restoration due to erosion problems caused by Hurricane Irma. Erosion and vegetation expenses are not covered by insurance. The proposal was approved at the December BOS meeting. Staff has notified the vendor of the approval and is working on obtaining the required permits to
move forward with the project.
The permit renewal for shoreline maintenance (on Lake Ashton) has been submitted to FWC. 
The approved meeting schedule for FY 20 18 is posted on Ashtonliving.net. The Board is
scheduled to meet August 1 0, and September 14 at 9 a.m. in the Clubhouse Ballroom. 
The  next  Joint  BOS  meeting  will  be  held  on  August  1 O  at  1 1  am  in  the  Clubhouse Ballroom. 
Staff met with the LAIICDD Community Director, Mary Bosman, to work on a combined
feedback survey that will be presented at the August Joint BOS meeting .
A letter informing all club, g roup and organization leaders of the amenity policy in place will be sent out prior to the July BOS meeting . Staff will keep supervisors informed of any questions or concerns.
Staff met with the District Engineer on Monday, July 2 to review pavement and storm
water areas in the community. Staff will be working with the District Engineer on quotes for the pavement of select roads to be completed in fiscal year 20 1 9 . The roads scheduled for re pair this fiscal year will be deferred to fiscal year 20 19 .
The District Engineer is also working on drawings for staff to present to contractors to
obtain a quote on screening in the restaurant patio area and the addition of a hard roof. Staff will present findings at the August BOS meeting .
Staff met with Jurin Roofing to review leaks in a couple of rooms in the Clubhouse
following a severe storm that occurred  on Sunday, June 24. All repairs will  be  made under warranty.
Staff is researching options for hand d ryers and alternative hand towel dispensers for all
restrooms in the Clubhouse. Staff will present options at the August BOS meeting .

Ballroom Rental Fee Report From: 6/ 1 /1 8 to 6/30/ 18 Meeting Room: Grand Ballroom 

6/ 1 /2018 	Parkinson's Support Group 	$0.00	
6/4/20 18 	Monday Coffee	$0.00	
6/4/20 18 	Bingo	$400.00	
6/6/20 18 	Yoga	$0.00	
6/6/201 8	LA (LW) HOA BOD Meeting	$0.00	
6/7/20 18 	Shufflin' Squares Dance 	$0.00	
6/8/20 18 	LA (LW) COD Meeting 	$0.00	
6/ 1 0/2018 	Community Potluck 	$0.00	
6/ 1 1 /20 18 	Monday Coffee	$0.00	
6/ 1 1 /20 18 	Bingo	$400.00	
6/ 1 3/2018 	Yoga	$0.00	
6/ 1 3/2018 	New Resident Orientation 	$0.00	
6/ 1 3/20 18 	Pet Co-Op	$0.00	
6/ 1 4/201 8	Square Dance Lessons	$0.00	
6/ 1 6/2018 	NAACP 	$1 ,000.00	
6/ 1 7/201 8	LA Democratic Club 	$0 .00	
6/ 1 8/201 8	Monday Coffee	$0 .00	
6/ 1 8/201 8	Bingo	$400 .00	
6/20/20 18 	Yoga	$0.00	
6/21 /2018 	Shufflin' Squa res Dance 	$0.00	
6/22/20 18 	Rodriqu ez/Ramos Wedding	$1 ,000.00	
6/23/20 18 	Kelly's Birthday Party	$1 ,000 .00	
6/25/20 18 	Monday Coffee	$0 .00	
6/25/20 18 	Bingo	$400 .00	
6/26/20 18 	HOA BOD meeting	$0.00	
6/27/20 18 	Yoga	$0.00	
6/27/20 18 	Great Gatsby Celebration	$0.00	
6/28/20 18 	Square Dance Lessons	$0.00	
6/29 /20 18 	Ramos Wedding	$1 ,000 .00	
6/30/20 18 	Stfleur/Ferdinand Wedding	$1 ,000.00	

Meeting Date	Meeting Title

Room Fee Collected

Total	$6, 600. 00

Lake Ashton Community Development District
135 W Central Blvd. Suite 320, Orlando Florida 3280 1

Memorandum

DATE:
TO:

FROM:

July 13, 2018
Darrin Mossing District Manager
Matthew Fisher Operation Manager

via email

RE:	Lake Ashton CDD Monthly Managers Report - July 13, 2018 
The following is a summary of activities related to the field operations of the Lake Ashton Community Development District:
Ballroom:
Staffreplacing lights and ballasts as needed.
AIC working properly.
Filters have been changed in the Ballroom.
Pool/Spa:
The Pool and Spa are operating properly.
Handicap lifts have been tested.
Pool and Spa handrail covers have been replaced.
Pool and Spa main drains replaced.
Lakes/Ponds:
Lakes are being treated according to our contract with Applied Aquatic.
Lake and pond levels are increasing due to heavy rainfall.
Fallen tree removed over canal maintained by the CDD.

Landscaping:
Staff has been meeting on a weekly basis with Yellowstone Landscape to review CDD property.

1

Irrigation inspections were performed with minor repairs.
Dead Jack Frost Ligustrum's replaced in East parking lot.
New annuals installed on CDD property.
Fallen tree from conservation area onto 3024 Dunmore removed.
Declining Indian Hawthorn in East parking lot replaced with Arboricola. Five declining Ficus trees removed and replaced with four Japanese Blueberry's in front of Clubhouse Ballroom.
8.	Eight Bottlebrush trees installed along fence line between Thomson Nursery Road and Aberdeen Lane.

Other;
Height limit sign rehung at Gate House.
Paver walk way pressure washed leading to main entrance to foyer.
Toilet repaired in woman' s restroom in main hallway.
Clubhouse main hallway and restrooms scrubbed and sealed.
Palm tree and Ligustrum uplighting repaired at entrance to community.
Outlet and electrical cord replaced to beer cooler in attic.
Axel bearing and brake pads replaced on cart one.
Battery cable replaced on cart number two.
Fitness Services of Florida performed preventative maintenance in Fitness Center.
Light switch replaced at Pavilion.
Pavilion floor, screen, and soffits pressure washed.
Two ballasts replaced in Card Room. 13. Fan motor to walk in cooler replaced.
14. Pool light pole repositioned; turned during storm. 15. Pressure washed pavers at Reflection Garden.
Preventative maintenance performed by Millers Central Air on all Clubhouse A/C units.
Wom refrigeration gaskets replaced in restaurant kitchen.
Shuffleboard Court light lenses cleaned.
Should you have any questions please call me at 863-956-6207 Respectfully,
Matthew Fisher

2

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IMPORTANT INFORMATION FOR INCUMBENTS FILING AS CANDID�TES WITH THE DEPARTMENT OF STATE
If you are an incumbent filing financial disclosure with the Department of State as part of qualifying for re-election, yoi;db' not have to separately file disclosure with the Commission; the Department is required to send us your form. However, we do not expect the Department to send the forms until June 27, and we e>i�h them to send a very large volume on that date, meaning an increase in our
processing time. Therefore, ifyou filed your Form 6 with the Department of State as part of the qualifying period th,fbegan June 4, there will be a delay in showing yourform as "received" on our website. Those forms may be available for viewing on the Department of State website before theyare available h7�•
Your Search for " Lake Ashton Community Developmeut Dist - Board of Supervisors " re\lirned the following results:

Coordinator:
Rich Hans
Governmental Management Services 5385 N, Nob Hill Rd
Sunrise, FL, 33351
(954) 721-8681
rhans@gmssf.com

265453	2017	Costello , Michael		Form 1 with Polk County SOE	� 06/19/2018	I View Filing History I	
243941	2017	Deane, Borden		Form 1 with Polk County SOE	� 06/04/2018	I View Filing History I	
243942	2017	Ference I Robert	lake Ashton Comm	Form 1 with Polk County SOE	e;J 06/22/2018	I View Filing History I	

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233566	2017	Pontious , Carol

Dist·Board of Supe "'
lake Ashton coJ��ity Development

Form 1 with Polk County SOE

� 06/11 /2018

I View FIiing History I

Dist-Board of/�uJre;/      rvisors

233567	2017	VanSlckle , Brenda G.

Lake Ashtor:i{�Ommunity Development Dfst•BoarQl�f Supervisors

Form 1 with Polk County SOE

� 06/05/2018

I View Filing History I

General Information about Filing Financial Dis

Brochure: A Guide to the Sunshine Ame
Financial Disclosure laws

of Ethics (PDF)

I Search Again I

to contact the Commission's Financial Disclosure Coordinator, Kimberly Holmes, at disclosure@leg.state.fl.us or (850) 488·7864. Address

records. If you do not want your e-mail address released In response to a publlc-records request, do not send electronic mail to this entity. Instead,

 	 	 	 	 	 	 	

Lake Ashton Community Development District
Check Run Summary

July 13, 2018
Date	Check Numbers	
Amount	
General Fund		
6/5/20 18	6059-6074	$27,356. 85	
6/19/2018	6075-6088	$30, 766. 40	
6/26/2018	6089-6094	$79, 705. 44	
6/27/2078	6095-6107	$2 7, 622. 01 	
712/2078	6708	$600. 00	
General Fund Total	$98, 850. 70	
Capital Projects Fund		
6/5/2078	240	$3, 500. 00	
6/26/2078	241	$4, 080. 00	
6/27/2018	242-243	$74, 782. 74	
Capital Projects Fund Total	$21, 762. 74	

* * * 

AP3 00R
CHECK NOS . 006059-050000 

YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER LAKE ASHTON CDD - GF
BANK A LAKE ASHTON - GF

RUN	7 / 03 / 18 

PAGE	1

#

6 / 05 / 18 	00062 	5 / 25 / 18 	05794960   201806   3/ 20 /-57200-41000 	*	
6 / 05 / 18 	00003	5 / 22 / 18 	6-188-93   201805   310 -/ 51/300- 42 000 	*	

CHECK   VEND#	. . . . . INVOICE . . . . .    . . . EXPENSED  TO . . .			VENDOR NAME DATE		DATE	INVOICE	YRMO	DPT ACCT	SUB	SUBCLASS

SERVICE   THRU   06  29  18	BRIGHT HOUSE NETWORKS

S TATUS

- - -

AMOUNT

901 . 5 6
- - - - - - - -
41. 02 

. . . . CHECK . . . . .  

#

AMOUNT

- 9 0- 1 -.5 6-  006059 

DELIVERIES THRU 05 15 

18	FEDEX

- - -

- - - - - -

- - -

4- 1 -. 0 2-

006060 

6 / 05 / 18 00068 

5 / 03 / 18 60965	201805 320-57200 -54500 
PREVENTATIVE MAINT	FITNESS SERVICES OF FLORIDA

*
- - -

977 .24 
- - - - - - - -

- 9 7- 7 -. 24-

006 061 

6 / 05 / 18 00036 

6 / 01/ 18  161	201806 310-51300-34000 

*	4, 873 .50 

6 / 01 /
6 / 01/
6 / 01 /
6 / 01 /

MGMT FEES- JUNE 20 18 
18  161	201806 310 -513 00- 35100 
COMPUTER TIME- JUNE 2018 
18  161	201806 310 -51300- 31300 
DISS EMINATION- JUNE 2018 
18  161	201806 310 -513 00-35101 
WEBSITE ADMIN- JUNE 2018 

*	83 .3 3
*	83 .3 3	
*	55 . 56
*	91 . 14

6 / 01 /

18 161 
POSTAGE

201806 310 -513 00-42000 

/

DELIVERY- JUNE 18 

*	93 .1 0

6 / 01 /
6 / 01 /

18  161	201806 310 -513 00- 42500 
COPIES- JUNE 2018 
18  161	201806 310 -51300-35101 
DOMAIN RENEWAL - JUNE 2018 
18  161	201806 310 -513 00-54000 

BACKGROUND   CHECK- JUNE  18	GMS - SO FLORIDA, LLC

*
*
- - -

97 . 63
190 . 9 0
- - - - - -

-  - 5 -, 5 6- 8 -.4 9-

006 062 

6 / 05 / 18 00067 

6 / 05 / 18 00233 

5 / 18 / 18 173 914	201805 320 -57200-34500 
GATE  MAINT-MAY  2018	THE HARTLINE ALARM  COMPANY, INC .
5 / 10 / 18 91630479 201805 320 -57200-52000 

*

*	- - -

13 0 . 0 0
- - - - - - - -
34 . 99

- 1 3- 0 -. 0 0-

006 063 

6 / 05 / 18 00059 

CLEANING SUPPLY	HD SUPPLY FACILITIES MAINTENANCE 5 / 01 / 18  16196	201806 32 0- 57200- 34502 

*	- -

-  -  - -  -  -  -  -
200 . 0 0

34 . 9 9 006 064 

5 / 01/

FOUNTAIN SVC- JUNE 2018 
18  16197	201806 320 -57200 -34502 

POOL   SVC- JUNE   2018	HEARTLAND COMMERCIAL POOL SERVICES

*

- - -

1, 365 . 0 0
- - - - - -

-  - 1 -, 5 6- 5 -. 0 -0   006065 

6 / 05 / 18 00504 

4 / 26 / 18 92341	201804 320 -57200 -54500 
ELEC SVC IN DINNING AREA

*	259 . 6 9

LAKA  LAKE  ASHTON	SROSINA

* * * 

AP3 00R
CHECK NOS . 006059-050000 

YEAR- TO- DATE  ACCOUNTS   PAYABLE  PREPAID/ COMPUTER  CHECK  REGISTER LAKE ASHTON CDD - GF
BANK A LAKE ASHTON - GF

RUN	7/03/18 

PAGE	2

CHECK  VEND#	. . . . . INVOICE . . . . .   . . . EXPENSED  TO . . .		VENDOR NAME DATE		DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS
4/27/18 92354	201804 320- 57200 -545 00 
ELEC SVC  AT  LIFT  SATION 5/09/18 92490	201805 320- 5720 0-54500 

OUTLET  INSTALL - KITCHEN	KINCAID ELECTRICAL SERVICES 6/05/18 00512	5/01/18 1505007	201805 320 -57200- 41000 

STATUS
*
*

- - -
*

AMOUNT

85 .0 0
575 .2 0
- - - - - - - -
42 .0 0

. . . . CHECK . . . . . 

AMOUNT	#

- 9 1- 9 -. 8 9-  006066 

SERVICE THRU 05/31/18	KINGS III OF AMERICA, INC .

6/05/18 	00089 	
6/05/18 	00361 	
6/05/18 	00090 	

5/21/18 L06 0G0IG 201805 310 -513 00- 48000 
NOTICE OF CANDIDATES BOS	THE LEDGER
5/01/18 I4543 5	201805 320-5 72 00 -54500 

-  -
*
*	-  -

-  -  -

-  -  -

- - - - -
53 .0 0
- - - - - -
806 . 0 0

42 . 0 0 006067 

-  5- 3 -.0 -0   006068 

REFRIGERATION/ ICE MAINT	MILLER 'S CENTRAL AIR, INC .
5/ 06 /18 45624403 201805 320-5 72 00-54000 

*	- -

- - -

- - - - - -
55 .8 6

- 8 0- 6 -.0 0-  006069 

6/05/18 00470 

SUBSCRIPTION RENEWAL	NEWS CHIEF 5/31/18 053118	201805 320 -57200- 52 000 

*	- - - - -

-  - - - -
47 .7 6

55 . 8 6 006070 

6/05/18 00054 

COFFEE SERVI CES	SHUFFLIN 'S SQUARES 5/18/18 40431	201805 320-57200-52000 

- - -
*

-  -  -  -  -  -   -
232 .5 6

-  -  4- 7 -. 7 6-  006071 

6/05/18 00061 

SUPPLIES	STATEWIDE BUILDING MAINTENANCE
5/14/18 MAY-18	201805 320 -57200- 43000 
ELECTRIC-MAY 2018 

*	- - -

- - - - - - - -
15 , 758 .8 5

- 2 3- 2 -.5 6-  006 072 

6/05/18 00445 

6/19/18 00 085 

6/19/18 00502

TECO
3/31/18 INV- 0000 201802 320-5 72 00-46202 
IRRIGATION REPAIRS	YELLOWSTONE LANDSCAPE 5/09/ 18 112 905	201805 320- 57200 -54500 
REPLACE FLOAT SWITCH
5/09/ 18 112906	201805 320-57200- 545 00 
REPAIR SLOAN TOILET	A.D. BAYNARD PLUMBING, INC .

6/01/18 13 75	201807 320- 57200- 34502 
SECURITY SVC- JULY 2018 

*	222 . 63

*	330 . 0 0
*	13 0.0 0

*	1, 593 .0 0

15, 758 . 85 006 073 

222 . 63 006074 

460 .0 0 006 075 

LAKA LAKE ASHTON	SROS INA

* * * 

AP3 00R
CHECK NOS . 006059-050000 

YEAR- TO- DATE ACCOUNTS PAYABLE PREPAID/ COMPUTER CHECK REGISTER LAKE ASHTON CDD - GF
BANK A LAKE ASHTON - GF

RUN	7/03/18 

PAGE	3

CHECK  VEND#	. . . . . INVOICE . . . . .   . . . EXPENSED  TO . . .		VENDOR NAME DATE		DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS

	6/01/18 	
6/19/18 	00003	6/05/18 	
		6/12/18 	
6/19/18 	00215 	6/01/18 	
6/19/18 	00 011 	6/01/18 	
6/19/18 	00504 	5/30/18 	

13 75	201807 320- 57200-34501 

SECURITY  SVC- JULY  2018	COMMUNITY WATCH SOLUTIONS , LLC 6-202-73 201805 310 -513 00- 42 000 
DELIVERIES   THRU  05/31/18 
6-210-23 201806 310-5 13 00-42 000 

STATUS
*

*
*

AMOUNT 17 , 9 88 . 8 0
40 . 6 0
40 . 0 1

. . . . CHECK . . . . .  
AMOUNT	#

19, 58 1.8 0 006076 

DELIVERIES  THRU  06/01/18	FEDEX 306	201806 320-5 72 00- 34000 
FEILD MGMT-JUNE  2018	GMS - CENTRAL FLORIDA, LLC 16931	201805 310 -513 00- 32200 

*	-  -  -
-  -  -
*

- - - - - - -
2, 083 .3 3
-  -  -  -  -  -   -
1,5 00 . 0 0

80 . 6 1 006077 

- 2 -, 0 8- 3 -.3 3-  006078 

6/19/18 00512 

6/19/18  00 164 

6/19/18   00 014

6/19/18  00547 

AUDIT  FYE   09/30/17	GRAU & ASSOCIATES , P. A. 92558	201805 320- 57200-54500 
ELECTRICAL SVC	KINCAID ELECTRICAL SERVICES
6/01/18  1514642	201806 320 -57200- 41000 
EMERG .   PHONE SVC-JUNE  18	KINGS III OF AMERICA, INC .
6/15/18  812 96	201805 310-5 13 00- 31500 
SERVICE  THRU  05/31/18	LATHAM , SHUKER, EDEN & BEAUD INE , LLP 5/21/18 L06 0G0IG 201805 310-51300- 48000 
NOTICE  OF CANDIDATES BOS	THE LEDGER
6/06 /18  060618	201806 300- 22000-10000 
RIEMB DAMAGE DEPOSIT 

*	-  -
-  -
*
-  -
*
-  -
*
*	-  -
*

-  -  -

-  -  -

-  -  -

-  -  -

-  -  -

-  -  -  -  -
881 . 0 8
- - - - -
42 . 0 0
-  -  -  -  -
1, 950 .9 1
-  -  -  -  -
53 . 0 0
-  -  -  -  -
500 . 0 0

- 1 -,5 0- 0 -. 0 -0   006 079 

-  - 8 -8 1-. 0 8-  006080 

42 . 0 0	006081 	
1, 950 .9 1	006 082 	
53 . 0 0	006083	

6/06 /18  060618	201806 300 -36200-10500 

6/19/18 	0039 9	6/07/18 	
6/19/18 	00277 	6/07/18 	

RIEMB DAMAGE DEPOSIT	POLK COUNTY PUBLIC SCHOOLS 10057	201805 32 0-572 00-54500 
LEAGUE MOINTORING-MAY 18	ALEX SMITH
21463	201805 320-57200 -545 00 
SEMI ANNUAL INSPE-5/29/18 
LAKA LAKE ASHTON	SROS INA

-  -  -
*
-  -  -

*

47 .5 0- 
-  -  -  -  -  -   -
975 . 0 0
- - - - - - -
1,8 00 . 0 0

-  - 4 5- 2 -.5 0-  006 084

-  - 9 7- 5 -. 0 -0   006 085 

* * *

AP 3 0 0R
CHECK NOS . 0060 59-0500 00 

YEAR- TO - DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER LAKE ASHTON CDD - GF
BANK A LAKE ASHTON - GF

RUN	7/03/18	PAGE	4

CHECK    VEND#	. . . . . INVOICE . . . . .    . . . EXPENSED  TO . . .		VENDOR NAME DATE		DATE	INVOICE	YRMO	DPT  ACCT#  SUB	SUBCLASS

6/0 7/18 21463	20 1805 320- 57200 -54100 

S TATUS
*

AMOUNT	. . . . CHECK . . . . .  

AMOUNT	#
89 . 9 2

6/19/18 00395 

CITY  OF LW PERMIT	STATE FIRE EXTINGUISHER SERVI CE , INC 5/21/18  6 817	20 1805 320- 5720 0-52000 

*	- -

-  -   -   -   -   -  -   -  - 1 -, 8 -8 9 -. 9 2-
29 .2 5

006086 

6/19/18 0043 0

NAME BADGE	TROPHY SHOP ONLINE 5/ 3 1/18 500 48516 20 1806 310-51300- 42502 

- - -
*

- - - - - - - - -
187 . 0 0

29 .2 5 006087 

6/26/18 00 055 

LEASE PAYMENT- JUNE 2018	WELLS FARGO FINANCIAL LEASING

6/15/18 2 0735-06 201806 320- 57200- 43100 
4141 ASHTON CLUB DR
6/ 15/18 20740-06 20 1806 320- 5720 0- 43100 
4128 LAKE ASHTON BLVD
6/15/18 221 09-06 201806 320 -572 00-43100 
GATE ENTRANCE -IRRIGATION 6/15/18 3 7767-06 201806 320-57200- 43 100 

*	- -
*
*
*

-  -   -   -  -   -  -   -   -   - 1 8- 7 -. 0 -0   006088 669 .3 4

36 . 6 0
175 . 5 0
141 . 71 

6/26/18 00098 

PALMS CDD IRRIGATION	CITY OF LAKE WALES

5/0 8/18 5 63960	20 1805 32 0-572 00-52000 
SUPPLIES 

5/09/18 9 122377	20 1805 320-5720 0-5 2000 

- - -
*
*

-   -   -   -  -  -  -  - 1 -, 0 2- 3 -. 1 5-
178 . 5 8
269 . 8 2

006089 

5/16/18 

SUPPLIES 
25 94 113	20 1805 320- 57200-52000 

*	27 .30 

SUPPLIES
5/1 7/18 12452 89	20 1805 320- 57200- 52 000 

*	129 . 8 4

5/22/18 
5/31/18 

SUPPLIES 
65943 74	20 1805 320- 5720 0-52000 
SUPPLIES 
758212 4	201805 320-5 72 00-52000 

SUPPLIES	HOME DEPOT CREDIT SERVI CES

*
*

- - -

95 . 72
23 . 96 
-  -  -   -  -  -  -  -   - 7 2- 5 -.2 2-

006090 

6/26/18 00 54 8

6/26/18  0021 7

6/ 21 /18  062118	20 1806 30 0-2 2000- 10000 
RIEMB DAMAGE DEPOS IT
6/21 / 18 0 62118	20 1806 30 0-36200-10500 
RIEMB DAMAGE DEPOS IT	NAACP LAKE WALES UNIT 5109 5/31/18 0654-000 20 1805 320- 57200- 43300 

SERVI CE THRU  05/31/18	REPUBLIC SERVICES #654 
LAKA LAKE ASHTON	SROSINA

··  ··  ·· ·········· ·· ······ ·····  ···-·--···-·-·- -·-·-------------------

*
*

*	- -

500 . 0 0

25 . 00- 

-  -   -  -  -  -  -   -  -   - 4 7- 5 -. 0 -0   006 091 
378 . 7 9

378 . 7 9 006 092 

* * *

AP3 00R
CHECK NOS . 0060 59-050000 

YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/ COMPUTER CHECK REGISTER LAKE ASHTON CDD - GF
BANK A LAKE ASHTON - GF

RUN	7/03/18 

PAGE	5

CHECK   VEND#	. . . . . INVOICE . . . . .    . . . EXPENSED  TO . . .		VENDOR NAME DATE		DATE	INVOICE	YRMO	DPT  ACCT#  SUB	SUBCLAS S

STATUS

AMOUNT

. . . . CHECK . . . . .  
AMOUNT	#

6/26/18 00061 

6/26/18 00217 

6/27/18 00085 

6/27/18 00394

6/13/18  JUNE-18	201806 320-5720 0-43000 ELECTRIC  SVC- JUNE 20 18	TECO
6/14/18 0654- 000 20 1807 320- 57200- 4 3300 
SERVICE THRU  07/31/18	REPUBLI C SERVICES #654 6/08/18 113199	201806 320- 57200 -545 00 
REPAIR  TOLIET	A. D. BAYNARD PLUMBING , INC .
3/30/ 18  106591	20 1803 32 0-57200- 545 00 
GREASE TRAP MAINT- MAR 18	AMERI CAN CLEANING & EQUI PMENT

*
-  -
*
*	- -
*	-  -
-  -

16, 159 . 8 4

343 . 44 

-  -   -  -  -  -  -   -

-  -   -  -  -  -  -   -
13 0 . 0 0
-  -  -  -   -  -  -   -
215 . 9 5
- - - - - - - -

1- 6 -, 1 -59 -. 8 4-
-   - 3 4- 3 -.4 4-
- - 1 3- 0 -.  0 0-

-  - 2 1- 5 -. 9 5-

006 093 

00 6094

0060 95 

00 6096 

6/27/18 00057 

6/20/18 170274

6/20/18 

AQUATIC 20 1806 320-53800- 46800 

170275 

20 1806 320-5 3800- 46801 
PLANT SVC- JUNE 18 

*	7 , 3 00 . 0 0

2 , 8 00 . 0 0

*

AQUATIC 

PLANT  SVC- 6/18/18	APPLIED AQUATIC MANAGEMENT , INC .

- - - - - - - - - -

1- 0 -, 1 0- 0 -. 0 -0   006097 

6/27/18 00329 

2/ 09/18 
3/ 09/18 
4/18/18 
5/10/18 

1513 121	201801 31 0- 513 00- 31100 
ENGINEER SVC THRU 1/2 6/18 
152 5574	20 1802 310-51300- 31100 

1

ENGINEER SVC THRU 2/23 / 18 536854	20 1803 310- 51300- 31 100 ENGINEER SVC THRU 3/3 0/18 1548301		20 1804 310-51300- 31100 
ENGINEER  SVC THRU 4/27/18	DEWBERRY ENGINEERS , INC .

*
*
*
*
- - -

1, 7 25 . 0 0
2 , 7 15 . 0 0
2 , 3 6 3 . 12
1, 87 5 . 0 0
- -

8, 678 . 12 006098 

6/27/18 00 214

6/12/18 AR347632 20 1806 320-5720 0-52000 
TONER	DEX IMAGING

6/27/18 	00549 	6/26/18 	
6/27/18 	00068 	6/15/18 	
6/27/18 	00 322 	6/27/18 	

1 0011	20 1806 320-5720 0-545 00 
DUAL REFLEXTIVE TINT	ECONOMY GLASS TINTING 61257	20 1806 320-57200 -54500 
PREVENTATIVE MAINT	FITNESS SERVI CES OF FLORIDA 53 -BID-3 201806 320- 57200-54100 
PERMIT #53 -60- 00668 

*

*	-   -  -
-   -  -
*

*

8 . 0 0

8 . 0 0	006099 	
-85 -. 0 -0	006100 	
21 6 . 0 4	006 101 	

- - - - - - -
85 . 0 0
- - - - - - - - -
216 . 0 4

280 . 0 0

LAKA LAKE ASHTON	SROSINA

c--=-,-----c-�,-,- -·-- -····-·· -···-----··-	..  . .  .... ....  ·········-····-·······- ------

* * * 

AP3 00R
CHECK NOS . 00605 9-050000 

YEAR-TO- DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER LAKE ASHTON CDD - GF
BANK A LAKE ASHTON - GF

RUN	7/03/18 

PAGE	6

CHECK  VEND#	. . . . . INVOICE . . . . .   . . . EXPENSED  TO . . .		VENDOR NAME	STATUS DATE		DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS

AMOUNT

. . . . CHECK . . . . .  

AMOUNT	#

6/27/18 00077 

6/27/18  53 -ID- 38  201806 320-5 72 00 -54100 

PERMIT  #53 -60-00669	FLORIDA DEPARTMENT OF HEALTH 6/19/18  82754 89	201806 320- 57200 -54501 

*
*	- -

- - -

14 0 . 0 0
-  -  -  -  -
12 0 . 0 0

-  - 4 2- 0 -. 0 0-

00 6102 

PEST CONTROL SVC	FLORIDA PEST CONTROL

- - - - - - - - -

-  -  -1 2- 0 -. 0 -0   00 6103 

6/27/18 00 504 

6/13/18 

92695	201806 320-57200- 54500 
REPAIR BEER COOLER

*	155 . 94
*	379 . 8 8

6/13/18 
6/15/18 

92696 
REPAIR 92703 REPAIR

201806 320- 57200 -545 00 
FRON GATE
201806 320 -57200 -54500 

TENNIS  COURT	KINCAID ELECTRICAL SERVICES

*

- - -

142 . 65
- - - - - - -

-  - 6 7- 8 -.4 7-

006 104

6/27/18 00361 

6/15/18  50512	201806 320 -57200 -54500 

*	79 . 00 

A/C REPAIR
-  -	- - - - - - - -

MILLER 'S CENTRAL AIR , INC .

- - -

- - - - - - -

79 . 0 0 00 6105 

- - - - - - - - -
6/27/18 00234 

- - - - - - -

71965489 

4/25/18 719654 89 20 1804

320-5 72 00-51000 

*	23 . 97

5/04/18 
5/22/18 
5/22/18 

SUPPLIES201805 320 -572 00 -51000 

71980626 

SUPPLIES 201805 320 -572 00-51000 

71980626 

SUPPLIES201805 320 -572 00- 51000 

SUPPLIES	S TAPLES BUSINESS CREDIT

*
*
*
- - - - -

87 . 9 9
338 .3 5
72 .4 8
- - - - -

-  - 5 2- 2 -. 7 9-

006106 

6/27/18 00054

7/02/18 00550 

6/19/18  40560	201806 320-57200 -54500 
CERAMIC TILE RESTORATION 6/19/18  40564	201806 320-5 72 00- 52000 
SUPPLIES	STATEWIDE BUILDING MAINTENANCE 7/02/18 07042018 201807 320- 57200- 49400 

*
*

*	- -

- - -

180 . 0 0
188 . 64
-  -  -  -  -
600 . 0 0

-  - 3 -6 8 -. 64-

006107 

3   ARTISTS  FOR  JULY  4 TH	JAMES THOMAS

LAKA LAKE ASHTON

TOTAL FOR BANK A TOTAL FOR REGISTER
SROS INA

98 , 8 50 . 7 0

98 , 850 . 7 0

600 . 0 0 006108 

* * *

AP3 00R
CHECK NOS . 000240-050000 

YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER LAKE ASHTON CDD - CPF
BANK B LAKE ASHTON - CPF

RUN	7/03/18 

PAGE	1

CHECK  VEND#	. . . . . INVOICE . . . . .   . . . EXPENSED  TO . . .		VENDOR NAME	STATUS DATE		DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS

AMOUNT

. . . . CHECK . . . . .  
AMOUNT	#

6/05/18 00081

6/26/18 00015 

6/27/18  00070 

5/15/18 INV- 0000 201805 600-53800 -60 075 
REPLACE CONTAMINATED SOD	YELLOWSTONE LANDSCAPE
4/20/18  042018	201806 600-53800- 60079 
RESTURANT EQUIP. BALANCE	CENTRAL FOOD EQUI PMENT , INC .
6/12/18  FS2 6994	201806 600- 53800- 60073 

*
*	-  -
*	- -

-  -  -

-  - -

3 , 5 00 . 0 0
- - - -
4 , 0 80 . 0 0
- - - -
6, 984 . 0 0

-  - 3 -, 5 -0 0 -. 0 -0   000240 

-  -4 -, 0 8- 0 -. 0 -0   00 0241	

- - - - -

FITNESS MACHINES DEPOSIT 

FITNESSMITH

6, 984 . 0 0 000242 

-  -  -  -  -  -  -  -
6/27/18  00082

5/23/18 

5/24/18 

-  -  -  -  -  -  - -
122933 64 201805 

201805 

SUPPLIES 12293511 

- - - - -
600 -53 800- 60079 
600-53800-60079 

*	- - -
*

- - - - - - - -
1, 784 . 0 8
957 . 7 9

- - - -

5/3 0/18 
6/01/18 

SUPPLIES 12294435 201805 

201805 

SUPPLIES 06 0118 SUPPLIES

600-53800-60 079	*
600-53800-60 079	*

SYSCO CENTRAL FLORIDA

TOTAL FOR BANK B TOTAL FOR REGISTER

3 , 173 .46 
1, 283 .41 

21,762 . 74

21,762 . 74

7, 198 . 74 000243 

LAKA LAKE ASHTON	SROSINA

LAKE ASHTON COD FY 2018 CASH RECEIPTS

ENTERTAINMENT BALLROOM RENTAL DAMAGE DEPOSITS NEWSLETTER INCOME COFFEE INCOME CLERICAL SECURITY FEE CLICKERS
RESTAURANT LEASE-DEFERRED RESTAURANT LEASE INSURANCE PROCEEDS MISCELLANEOUS
SALES TAX PAYABLE

Odober-17
$	96,050.00
$	5,450.00
$	(1,000.00)
$	23,056.70
$	600. 00
$	125.00
$	1, 037.50
$	148.00
$	-
$
$
$
$
$

$
$
$
$
$
$
$
$
$
$
$
$
$
$

November-17
14,974. 00

3,475.00

-
9, 769. 74
300.00
40. 00
418. 75 111.00
-
1, 000.00
4, 716.00

$
$
$
$
$
$
$
$
$
$
$
$
$
$

December-17
10,991. 00
6, 750. 00
3,250.00
5, 298. 66
100.00
83. 00
512.50

185.00

-

-
-
70. 00
126,537.20

1, 000.00

1, 000.00

70. 00
34,874.49

-
4, 100.00
70. 00
32,340. 16

$
$
$
$
$
$
$
$
$
$
$
$
$
$

January-18
9, 342.00
7,000.00
(1,000.00)
17, 570.86
350.00
96.00
568.75
111.00
1,000.00
1, 000.00
-
-
148.00
36, 186. 61

$
$
$
$
$
$
$
$
$
$
$
$
$
$

February-18
3,998.00
5,400.00
1, 000.00
7,846. 66
250.00
219.00
512.50
148.00
-
1, 000.00
182, 946.49
-
-
203,320.65

March-18
$	1, 753. 00
$	3,900.00
$	500.00
$	8, 808. 16
$	465. 00
$	209.90
$	771.00
$	-
$	1, 000. 00
$	483.87
$	5, 183.45
$	833.33
$	38. 71
$	23,946.42

ENTERTAINMENT BALLROOM RENTAL DAMAGE DEPOSITS NEWSLETTER INCOME COFFEE INCOME CLERICAL SECURITY FEE CLICKERS
INSURANCE PROCEEDS MISCELLANEOUS RESTAURANT LEASE SALES TAX PAYABLE

$
$
$
$
$
$
$
$
$
$
$
$
$

April-18
3, 138.31
14, 100. 00
1, 000.00
5, 916.66
200. 00
258.20
450. 00
37.00
-
183.80
-
-
28, 783.97

$
$
$
$
$
$
$
$
$
$
$
$
$

May-18
2, 130.00
3,950.00
2, 000.00
5,419. 66
150. 00 136.00 912.50
74. 00
-
-
-
-
14, 772. 16

$
$
$
$
$
$
$
$
$
$
$
$
$

June-18

-
-
-
-
-
-
-
-
-
-
-
-
-

July-18

$
$
$
$
$
$
$
$
$
$
$
$
$

-
-
-
-
-
-
-
-
-
-
-
-
-

$
$
$
$
$
$
$
$
$
$
$
$
$

August-18
-
-
-
-
-
-
-
-
-
-
-
-
-

$
$
$
$
$
$
$
$
$
$
$
$
$

September-18
-
-
-
-
-
-
-
-
-
-
-
-
-

FISCAL YEAR 2018 TOTAL ENTERTAINMENT FEES
BALLROOM RENTAL
DAMA GE DEPOSITS NEWSLETTER INCOME COFFEE INCOME CLERICAL SECURITY FEE CLICKERS
INSURANCE PROCEEDS MISCELLANEOUS RESTAURANT LEASE SALES TAX PAYABLE

$
$
$
$
$
$
$
$
$
$
$
$
$

142,376.31 
50, 025. 00
5, 750.00
83, 687.10
2, 415.00
1, 167.10
5, 183. 50
814. 00
192, 845.94
5, 117. 13
5,483. 87
396.71
498, 761. 66

Page 7

------·----- ---- · -------- ····-····-   ... . -----·- -······-··- ·· -- - - - "--·-··- - - - .. . -.. --...... ...._• ..........•.. .............          ,, ____ . ..., .   ........ . .... · ·-········  . --·-··-····-··-··-·-·- - -·-·- -- - - -	......    ...   .. . . .  .... - --- ····· ·· --·- -·- - -·-·-··

ENTERTAINMENT
DATE	DESCRIPTION

LAKEASHTON CDD

MAY 2018 CASH RECEIPTS

5/212018	590	Pat Huelsman	$	80.00	Pizza Partv - 5118178	
512/2018	590	Dyanna Doldwedel	$	20.00	Pizza Party - 5/18/18	
5/212018	590	Lorraine Chloros	$	40. 00	Pizza Partv - 5/18/18	
5/2/2018	590	Kave Prusieciu	$	80.00	Pizza Partv - 5/18/18	
5/212018	590	William Novatny	$	60.00	Pizza Partv - 5/18/18	
51212018	590	Patricia Patrick	$	20.00	Pizza Partv - 5118/78	
5/212018	590	Anthony Licalsi	$	80.00	Pizza Party - 5118/18	
512/2018	590	Matthew Para	$	20.00	Pizza Partv - 5/18/18	
5/2/2018		Georae Fetcho	$	30. 00	Pizza Party - 5118118	
512/2018	590	Carl Boast	$	20.00	Pizza Partv - 5118118	
5/212018	590	Vickie Castaneda	$	20.00	Pizza Partv - 5178118	
5/212018	590	Elizabeth Thul	$	20.00	Pizza Partv - 5/18/18	
5/212018	590	Robert Hinkle	$	20. 00	Pizza Partv - 5118/18	
5/3/2018	591	Jo Luebkina	$	40. 00	Pizza Partv - 5118/18	
5/3/2018		Terrv Fordham	$	10.00	Pizza Party - 5118/18	
5/3/2018		Jeanette Cheesman	$	60.00	Pizza Party - 5118/18	
5/3/2018	591	Domenica Nix	$	30.00	Pizza Partv - 5118/18	
51312018		Sharon Farbert	$	20.00	Pizza Party - 5118118	
51312018		Amv Frahm	$	20.00	Pizza Partv - 5118118	
5/312018	591	Orlando Martins	$	40.00	Pizza Partv - 5118118	
5/3/2018		Jane Fuller	$	20.00	Pizza Partv - 5/18/18	
5/3/2018	591	Maria Olesen	$	20.00	Pizza Partv - 5/18/18	
5/4/2018	592	Robert Carlson	$	10.00	Pizza Partv - 5118/18	
5/412018	592	Everett Wade	$	20.00	Pizza Partv - 5/18118	
5/4/2018	592	Carol Pontious	$	20.00	Pizza Partv - 5/18/18	
5/412018	592	Thomas Wierdak	$	20.00	Pizza Partv - 5/18/18	
5/7/2018		Joan Switalski	$	20.00	Pizza Party - 5118/18	
5/7/2018	593	Anne Mcinroy	$	20.00	Pizza Partv - 5178/18	
5/7/2018		Kathi Plummer	$	40.00	Pizza Party - 5/18118	
5/7/2018		Roberta Sell	$	10.00	Pizza Partv - 5/18118	
517/2018		Domenica Nix	$	20.00	Pizza Partv - 5/18/18	
5/7/2018	593	Deborah Platt	$	20.00	Pizza Partv - 5118118	
517/2018		Marv Ax	$	26.00	Memorial Dav Event - Refunded	

NAME	AMOUNT

DESCRIPTION

517/2018	593

Carol Corlev	$	20.00

on 519118
Pizza Party - 5/18/18

5/9/2018
5117/2018	Cash
5/11/2018	CK 6315
5/11/2018	CK 6904
5111/2018	CK 510
5/11/2018	Ck 93 1
5/11/2018	Ck 456
5111/2018	CK3951
5/1112018	CK 7269
5/11/2018	CK1149
5/11/2018	CK 11153
5/11/2018	CK 128
5111/2018	CK 3505
5/11/2018	CK 3050
5/11/2018	CK 192
5/11/2018	CK 164
5/11/2018	CK 149
5/11/2018	CK 2928
5/11/2018	CK 1803
5/11/2018	CK 3586
5/11/2018	CK 599
5111/2018	CK 1058

Marv Ax	$	(26.00)
Anaelillo	$	20.00
Giebler	$	40.00
Hienronimus	$	40.00
Totten	$	20.00
Ferrieri	$	100.00
Kennedv	$	40. 00
Nettleton	$	80.00
Smith	$	80.00
Steenbera	$	40.00
McGuire	$	20.00
Cook	$	20.00
Sardina	$	40.00
Weis	$	20.00
Roaers	$	20.00
Flemina	$	20.00
McClure	$	40.00
Escoda	$	20.00
8ovd	$	20.00
Wilkinson	$	20.00
Perez	$	20.00
Cauahertv	$	20.00

Page 2

Refund for Memorial Dav Tickets (couldn't take cc) Pizza Party - 5118118
Pizza Partv - 5/18/18 Pizza Party - 5/18/18 Pizza Partv - 5118118 Pizza Partv - 5/18/18 Pizza Partv - 5/78/78 Pizza Partv - 5118118 Pizza Partv - 5/18/18 Pizza Partv - 5118118 Pizza Partv - 5/18118 Pizza Partv - 5118118 Pizza Partv - 5/18/18 Pizza Partv - 5118118 Pizza Partv - 5/18/18 Pizza Partv - 5/18/18 Pizza Partv- 5/18/18 Pizza Partv - 5/18/18 Pizza Partv - 5/18/18 Pizza Partv - 5/18/18 Pizza Partv - 5118/18 Pizza Partv - 5118118

ENTERTAINMENT-continued
5111/2018	CK 1041
5/11/2018	CK 522
5/11/2018	CK 3968
5/11/2018	CK 1742
5/11/2018	CK 479
5/1112018	CK 3230
5/11/2018	CK 1038108
5/11/2018	CK 1577
5/11/2018	CK 1999
5/11/2018	CK 1199
5/14/2018	595
5115/2018	596
5/25/2018	CK 1035
5/25/2018	CK 4005
5125/2018	CK 13 11

TOTAL

LAKE ASHTON CDD

MAY 2018 CASH RECEIPTS

Hanlev	$	80.00
Brodskv	$	20.00
Cashman	$	20.00
Cardin	$	20.00
Spadaro	$	80.00
Trahan	$	10.00
Wvaart	$	20.00
Hillock	$	40.00
Bombard	$	20.00
Wells	$	10.00
Katherine Prusiecki	$	10.00
Jerrv Weimer	$	10.00
Hanlev	$	20.00
Gamble	$	20.00
Halde	$	20.00
$	2,130.00

Pizza Partv - 5/18178 Pizza Partv - 5178118 Pizza Partv - 5178178 Pizza Party - 5/18178 Pizza Partv - 5/78178 Pizza Party - 5118178 Pizza Partv - 5178/18 Pizza Party - 5/18/18 Pizza Partv - 5118/18 Pizza Partv - 5/18/18 Pizza Partv - 5178178 Pizza Partv - 5178178 Wine & Jazz

Pizza Partv - 5178178 Pizza Party - 5/18/18

RENTALS

DATE	DESCRIPTION
9/29/2017	ck26104
5/11/2018	CK 7745
5/25/2018	CK 0339684
5/25/2018	CK 2788479041
5/25/2018	CK 192
TOTAL

NAME	AMOUNT
Polk State Colleqe Foundation			$			1,000. 00 LakeAshton Binao			$				1,200.00 The School Board Polk Co				$			1,000. 00 Olqa Rodriquez		$				1,000.00 NAACP	$			{250.00)
$	3,950.00

DESCRIPTION

Room rental 5/12/18 May 2078 Rent
Ballroom Rental 5/24/18 Room Rental 6123178
DD 6/16/18 - overpaid room rental on 2128117deduct$250/rom room rental revenue and apply to damage deposit

NEWSLETTER
DATE	DESCRIPTION
513/2078	591
5/11/2078	CK1030
5/11/2018	CK 05973969
5/24/2018	599
5/24/2018	599
5/24/2018	599
5/24/2018	599

599

5/2412018	599
5124/2018

599

5/24/2018	599
5/24/2018
5/25/2018	600
5/25/2018	CK 50052
5/25/2018	Cash
5/25/2078	CK 1214
5/25/2078	CK 1451
5125/2018	CK 3723
5125/2018	CK 10499
5/25/2018	CK 1052
5/25/2018	0<2343
5/30/2018	601

NAME	AMOUNT
Leisure World	$	2,250.00
Moraan Stanlev	$	175.00
Edward Jones	$	175.00
Art's Carts	$	323.08
Blackburn's Interiors	$ 	350.00
Calico Roofinq	$	85.50
Dan's Fans	$	175. 00
do Terra Pamela McGuire	$	275.00
FEL	$	323.08
Performance Plus Carts	$	444.00
Rainbow Wicker	$	730.00
Unlimited Properv Solutions	$	175.00
United Refriqeration	$	250.00
Boqard	$	15.00
Barron	$	24.00
Frank	$	18.00
Pratt	$	15.00
Monaqhan	$	15.00
Parota	$	15.00
Wvckoff	$	12.00
Norris Horton	$	175.00

DESCRIPTION

12 Month Ad LA Times June Inserts LAT May 2018 Inserts
June 2018 LA Times Ad June 2018 LA Times Ad June 2078 LA Times Ad June 2078 LA Times Ad June 2078 LA Times Ad June 2018 LA Times Ad June 2018 LA Times Ad June 2018 LA Times Ad June 2018 LA Times Insert LA Times Advertisinq & Insert Mail LA Times
Summer LAT Subscription Summer LA T Subscription Summer LAT Subscription
Summer LAT Subscription Summer LAT Subscription Summer LAT Subscriotion
June 2018 LA  Times Insert

CLERICAL

TOTAL

DATE	DESCRIPTION
5/212018	590
5/11/2018	Cash
5/25/2018	Cash
TOTAL

$	5, 419.66

NAME	AMOUNT
Robert Bink	$	15.00
Clerical	$	53.00
Clerical	$	68.00
$	136.00

DESCRIPTION
Subscription for LA Times for Summer Dellverv Directories, Faxes, Coo/es, Postaae Directories, Postage, Copies, Faxing

1----------+----	----il

Page 3

LAKEASHTON CDD MAY 2018 CASH RECEIPTS

DATE
5125/2018
5125/2018
TOTAL

DESCRIPTION
CK 537
CK 1033

NAME
RobertA very Morqan Stanley

$
$
$

AMOUNT
75.00
75.00
150.00

DESCRIPTION
Monday Coffee Vendor Monday Coffee Vendor

DEPOSITS

DATE
512/2018
5/18/2019
5/24/2018
5/25/2018
5125/2018
5125/2018
TOTAL

DESCRIPTION
590
598

CK 0339684
CK 192
CK 2188479043

NAME
Edd Dean /Publix] Allen Ferdinand Melissa Ramos
The School Board Polk Co NAACP
Olqa Rodriguez

$
$
$
$
$
$
$

AMOUNT
/500.00) 500.00
500.00
500.00
500.00
500.00
2,000.00

DESCRIPTION
Refund of Damaqe Deposit for Event 4/24/18 Damaae Deoosit - 6/30/18 Damaqe Deposit - 6/29/18
Damaqe  Deposit 5124118
DD 6116118 • overpaid room rental on 2128117deduct$250from room rental revenue and apply to damage deposit
Damage Deposit 6123118

ENTRANCE GA TE OPENERS

599

COFFEE

DA TE	DESCRIPTION	NAME	AMOUNT	DESCRIPTION	
5/3/2018	591	James Jameson	$	37.00	Main Entrance Gate Ooener	
5/17/2018	597	Michael Nicknadarvich	$	37.00	Main Entrance Gate Opener	
TOTAL			$	74.00		

SECURITY					
DATE	DESCRIPTION	NAME	AMOUNT	DESCRIPTION	
5/11/2018	CK 11658	Lake Wales CharterSchools	$	100.00	Security Officer for LWHS Prom Decoratina	
5118/2018	598	Allen Ferdinand	$	175.00	Security - 6130118	
5/24/2018	599	Melissa Ramos	$	212.50	Security - 6/29118	
5/25/2018	CK 0339684	The School Board Polk Co	$	200.00	Security 5124118	
5/25/2018	CK 792	NAACP	$	125.00	Security for 6116118	
5/25/2018	CK 2188479043	Olqa Rodriquez	$	100.00	Partial Security 6123118	
TOTAL 			$	912.50		
!TOTAL  CASH RECEIPTS - MAY 2018			$	14, 772. 16		

Page 4

LAKE ASHTON CDD  MAY 2018 CASH RECEIPTS

ENTERTAINMENT ROOM RENTALS

SUMMARY
$

2, 130.00
3,950.00

ROOM RENTALS-DEFERRED NEWSLETTER NEWSLETTER-DEFERRED CLERICAL
COFFEE DEPOSITS
DEPOSIT-RESTAURANT ENTRANCE GATE OPENER RESTAURANT/SALES TAXES SECURITY MISCELLANEOUS
TOTAL

$
$
$
$
$
$
$
$
$
$
$
$
$

-
5, 419.66
136.00
150.00
2, 000.00

-
912.50

74. 00

14, 772. 16

DEPOSITS PER BANK ADD: MAY2018 DIT LESS: APRIL 2018 DIT DEFERRED
TOTAL BANK DEPOSITS LESS:TAX RECEIPTS LESS: SBA TRANSFER LESS: ADJUSTMENTS LESS: REFUND

$
$
$
$
$
$
$
$
$

17, 780.81
175.00

BANK REC CASH RECEIPTS
$17,955.81

I

17,955. 81
{4,183. 65}

1,000.00

$

LESS: MISC DEPOSITS TOTAL CLUBHOUSE DEP.	$
$	14, 772. 16			
TOTAL ABOVE	$	14,772. 16			
VARIANCE	$	0.00			
TOTAL CASH RECEIPTS	$	17,955.81	$0.00	
JOURNAL ENTRY:			

DEPOSITS	001.300. 10100. 10000
001.300.22000.10000	$	13,772. 16
$	$	2,000.00	
DEPOSIT-RESTAURANT	001.300.22000. 10100	$	-	$	
DEFERRED REVENUE	001.300.22300.10000	$	1, 000. 00	$	
SALES TAX PAYABLE	001.300.21900.10000	$	$	
ENTERTAINMENT FEES	001.300.36200.10000	$	$	2,130.00	
ROOM RENTALS	001.300.36200. 10100	$	$	3, 950.00	
NEWSLETTER INCOME	001.300.36200. 10200	$	$	5,419.66	
COFFEE INCOME	001.300.36200.10300	$	$	150.00	
CLERICAL
SECURITY FEE	001.300.36200. 10400
001.300.3620010500	$
-	$	136.00
$	912.50	
RESTAURANT INCOME	001.300.34900. 10100	$	-	$	
GARAGE CLICKERS	001.300.36200.10600	$	$	74.00	
RENTAL ID CARDS	001.300.36200. 10800	$	$	-	
MISC INCOME	001.300.36900. 10000	$	$	-	
		$	14,772. 16	$	14, 772. 16	

$

Page s

----·· ·····-·· ··-·---···---··--····	

Lake Ashton CDD
Special Assessment Receipts
Fiscal Year Ending September 30, 2018

$1,690,408.25

$456, 180.85	$54, 072. 40

$510,253.25

O&M
Date	Collection		O&M	Debt Svc	Discounts/ Received		Period	Receie_ts	Receie_ts		Penalties
11/1512017	10/1/17-10/3 1/17	$	8, 572. 05    $	3,275. 20   $	342. 89   $
11/17/2017	11/1/17-11/5/17	$	97, 721.37  $	19,998.90   $	3,909.04   $
11/22/2017	6/1/17-10/31/17	$	25,975.57    $	8,283.96    $	1,347. 60  $
12/5/2017	11/06/17- 11/12/17	$	219,444.48   $	57,363. 12   $	8, 778. 13 $
12/13/2017	11/13/17-11/22/17	$	500,607. 72     $	140,899.37   $	20,025.12  $
12/20/2017	11/23117-11/30/17	$	627,474.06   $   202,907. 63    $	25,099.99    $
1/16/2018	12/01/17-12/31/17 $	78,946.69    $	25,853.31   $	2, 3 72.64  $
1/3 1/2018	INTEREST	$	$	$	$
2/14/2018	01/01/18-01/31/18	$	20,572.92    $	5, 595.58    $	411.48 $
3/15/2018	02/01/18-02128/18  $	7, 714.02   $	2, 801.97  $	68.57    $
4/13/2018	03/01/18-03/31/18  $	48,087.83   $	20,469.50    $	$

/51.43)
/64.35}

4/26/2078	INTEREST	$	$	$	$

Debt	.36300. 10100
Discounts/	Commissions	Net Amount	General Fund Penalties		Paid		Received		100.00%
13 1.00   $	227.46    $	11, 145.90	$	8,  054. 44
799.93    $	2,260.23    $	110,751.07	$	92, 076. 17
422.59    $	649.79    $	31,839.55	$	24, 128.85
2,294.47   $	5, 314. 70   $	260,420.30	$	206,583.94
5, 635.81   $	12,3 16.92   $	603,529.24	$	471, 121.52
8, 116. 01  $	15,943.31  $	781,222.38	$	590, 127.43
783.21   $	2, 032. 88   $	99, 611.27	$	75, 012. 52
$	$	1, 123. 84	$	868.57
111.93  $	512. 90   $	25, 132. 19	$	19,767.46
26. 12   $	208.43    $	10,212.87	$	7, 485.35
$	1, 371. 15   $	67, 186. 18	$	47,034. 60
$	$	68. 08	$	49.38

2015-1	2015-2
Debt Svc Fund	Debt Svc Fund 89.403%	10.597%
$	2, 763. 85    $	327. 61
$	16,695. 89   $	1,979. 01
$	6, 893.59    $	817. 12
$	48, 131.23  $	5,705.13
$	118,376.24  $	14,031.47
$	170, 844.29   $	20, 250.65
$	2 1,991.98  $	2,606.77
$	228.22    $	2 7.05
$	4, 796.22    $	568.51
$	2,438.48   $	289.04
$	18,016. 08   $	2, 135.50
$	16. 72    $	1.98

Debt Total 100%
$	3,091. 46
$	18, 674. 91
$	7, 710. 71
$	53,836.36

$	132, 407. 71
$	191,094.95
$	24,598.75
$	255.27 
$	5, 364. 73
$	2,727.52
$	20,151.58
$	18. 70

5/15/2018	04/01/18-04/30/18  $	3,428.82   $	765.82    $
6/15/2018	05/01/18-05/3 1/18  $	2,144.84   $	$

$	/22. 97)   $	85.39   $	4,183.65	$	3,414. 66
$	$	44. 18   $	2, 165. 01	$	2, 165. 01

$	687.50    $	81. 49  $
$	$	$

768. 99

6/2012018	06/01/18-06/01/18  $	36,908. 07    $	16, 189.90  $	(1,660.88) $

(728.53}   $	1,109. 75   $	54,377.63	$	37, 716.51

$	14,895. 51  $	1, 765. 61 $

16,661. 12

$	1,677,598.44	$ 504,404.26	$	60, 578.80	$	17,569.57	$ 42,077.09	$ 2,062,969. 16	$	1, 585,606. 40 ·Ji; $	426, 775. 82	$	50,586.94	$ 477,362. 76	
$12,809. 81	$5, 848.99									

BALANCE REMAINING

Gross Percent Collected Balance Due

99. 15%
$18,658. 80

LAKE ASHTON
COMMUNITY DEVELOPMENT DISTRICT COMBINED BALANCE SHEET
May 3 1, 2018
Major Funds	Total
Debt	Capital	Governmental
General	Service	Reserve	Funds
ASSETS:
Cash- Wells Fargo	$307,800	$43, 560	$351,360
Assessments Receivable	$39, 882	$16, 661	$56, 543
Duefrom Other Funds	$63, 856	$63, 856
Investment - State Board	$446, 119			$446, 119 Investment - State Board Capital Reserve		$406, 965	$406, 965 Investments:
Series 2015
Reserve A	$235, 063	$235, 063
Interest A	$2	$2
Revenue A	$778,418	$178,418
Prepayment A-1	$4, 408	$4, 408
Prepayment A-2	$4, 469	$4, 469

TOTAL ASSETS	$857, 656	$439, 021	$450, 525	$1, 747,202

LIABILITIES:		
Accounts Payable	$38,816		$10, 699	$49, 515	
Due to Other Funds		$63, 856		$63, 856	
Sales Tax Payable				$0	
Deposits-Room Rentals	$5, 250			$5,250	
Deferred Revenue	$4, 500			$4, 500	
TOTAL LIABILITIES	$48, 566	$63, 856	$10, 699	$123, 12 1	
FUND BALANCES:
Restricted:
Debt Service	$3 75, 165	$3 75, 165

Assigned:
Capital Reserve			$439, 826	$439, 826	
Unassigned	$809, 090			$809, 090	
TOTAL FUND BALANCES	$809, 090	$3 75, 165	$439, 826	$7, 624, 081	
TOTAL LIABILITIES & FUND BALANCES	$857, 656	$439, 021	$450, 525	$7, 747,202	

Page 7

REVENUES:

LAKE ASHTON

------	�1

COMMUNITY DEVELOPMENT DISTRICT GENERAL FUND

I

Statement of Revenues, Expenditures, and Changes in Fund Balance For The Period Ending May 3 7, 2078

ADOPTED BUDGET

PRORA TED BUDGET	ACTUAL

THRU 5/3 1/18	THRU 513 1118	VA RIANCE

$7,572, 079	$7, 572, 079	$7, 585, 606	$73, 527	
$50, 000	$33, 333	$50,2 75	$76, 942	

Special Assessments - Levy Rental Income
Entertainment Fees	$130, 000	$130, 000	$142,3 76	$72,3 76
Newsletter Ad Revenue	$55, 000	$55, 000	$83, 687	$28, 687
lnterest lncome	$1, 000	$667	$4, 796	$4, 129

Restaurant Lease	$72, 000	$8, 000	$5, 484	($2, 576)	
Insurance Proceeds	$0	$0	$792, 846	$792,846	

Miscellaneous Income	$5, 000	$3, 333	$ 13, 732	$10,399

EXPENDITURES: ADMINISTRA TIVE:

TO TA L  REVENUES .._I

s_1_, 8_2_5,_08_o 	s1_, 8_0_2,_4_13

s__2_, 0_7_8,_8_03	_s2_7_6_, 3_9......0  I

Supervisor Fees FICA Expense Engineering Arbitrage Dissemination Attorney Annual Audit Trustee Fees
Management Fees Computer Time Travel & Per Diem Postage

$3, 000
$230
$20, 000
$1,200
$1, 000
$20, 000
$4, 123
$4,310
$58, 482
$7, 000
$0
$2, 500

$2, 000	$2, 200	($200)

$753

$769	($76)
$73, 333	$72, 503	$830
$800	$600	$200
$667	$ 1, 117	($450)
$13,333	$79,269	($5, 936)
$2, 749	$2, 023	$726
$4,310	$4,3 10	$0

$�7

$38, 988	$38, 988	$0
$�7	W
$0	$100	($100)

$924

$1, 667	$2,383	($777)

Printing & Binding

$7, 600

$7,067

$143

Newsletter Printing Rentals & Leases Insurance
Legal Advertising Other Current Charges Property Taxes

$32, 000
$5, 000
$34, 278
$500
$7,250
$72, 000

$27,333	$26, 791	($5, 457)

$3,333

$3, 809	($476)
$34, 278	$36, 737	($2, 459)
$286	$48
$833	$3, 085	($2, 252)
$72, 000	$72, 408	($408)

Office Supplies

$100

$67	$4

Dues, Licenses & Subscriptions
TO TAL ADMINISTRA TIVE .._,

$775
_s_2_02_, _74_8

$175	$175		$0 s_1s_2_, 0_86_s_16_8,_6_os	_(_$_16_, s_19.......� I

Page 2

LAKE ASHTON
COMMUNITY DEVELOPMENT DISTRICT
GENERAL FUND
Statement of Revenues, Expenditures, and Changes in Fund Balance	:,

I

For The Period Ending May 3 1, 2018

Field:

ADOPTED BUDGET

PRORA TED BUDGET THRU 513 1/18

ACTUAL
THRU 5/3 1/18	VARIANCE

Field Management Services Gate Attendants
Pool Attendants Pest Control
Security/Fire Alarm/Gate Repairs Telephone/Internet
Electric Water Gas Refuse
Clubhouse Maintenance
Pool and Fountain Maintenance Landscape Maintenance
Plant Replacement Irrigation Repairs Lake Maintenance
Wetland Mitigation and Maintenance Permits/Inspections
Office Supplies/Printing/Binding Operating Supplies
Credit Card Processing Fees Dues & Subscriptions Decorations
Special Events Storm Damage
Traffic Accident Damage

$322,330	$210, 754	$202, 199	$8,556

$2, 535

$5, 795

$209,457	$139, 638	$141,333	($1, 695)

$1, 750	$1, 167	$1, 080	
$5, 000	$3,333	$4,377	
$13, 600	$9, 067	$7, 688	
$216, 000	$144, 000	$139,483	
$12, 000	$8, 000	$7, 762	
$15, 000	$15, 000	$2 1,877	
$10, 500	$7, 000	$5,224	
$105, 000	$70, 000	$81, 992	
$20, 000	$13,333	$13, 883	
$176, 007	$117,338	$116,911 	
$7, 000	$4, 667	$3, 609	
$7, 500	$5, 000	$470	
$18, 540	$12,3 60	$12,360	
$34, 800	$17,400	$17,400	
$2, 160	$1,440	$952	
$4, 000	$2, 667	$4, 778	
$25, 000	$16, 667	$27, 166	
$3, 500
$�2,�000	$2, 333
½$1, 3�33	$3, 010
�$�628	
$130, 000
$0	$130, 000
$0	$138,341
$303,316	
	$0	$4, 716	

$12, 495	$8,330
$87
{$1,044}

$1,3 78
$4,517
$238 ($6,877)
$1, 776

($549}

{$1 1,992}

$427
$1, 058
$4, 530
$0
$0
$488 ($2, 11 1)
($10, 499}
($676)
�$�706
($8,34 1}

$0

{$303, 316}
($4, 716}

TOTAL FIELD .._1 _s1_, 3_6_2,_13_9

S9_4_6,_4_3	s_1,_26_s_, 9_9_1	r_s_3 1_9,_49_7...,.? 1

TOTAL EXPENDITURES ..I _s_1_, 5_64_, 8_8_6

OTHER SOURCES AND USES

_s_1, 0_9_8,_5_79	_s_1, 4_3_4,_59_6	r_s_33_6_, o_11_I I

Capital Reserve-Transfer Out	($260, 194)	($260, 194}	($260, 194)	$0
TOTAL OTHER souRcEs AND usEs ..I __rs_2_6_0,_19_4J	___rs_26_0_, 1_4_J___rs_26_0_, 1_94_J	_so_1

EXCESS REVENUES (EXPENDITURES)

,.. 	s_o

____ 	$_38_4_, o_13	___,1

FUND BALANCE - Beginning	$0	$425, 077

FUND BALANCE - Ending	$0	$809, 090

!7! Assessments are shown net ofDiscounts and Collection Fees.

Page 3

REVENUES:

EXPENDITURES:

Capital Projects:

COMMUNLIATYKDEEVAELSOHPMTEONTNDISTRICT

Capital Projects Reserve Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance For The Period Ending May 3 7, 2078

Interest Income	$100	$67	$3, 678	$3, 612	
Capital Reserve-Transfer In FY 78	$260, 194	$260, 194	$260, 194	$0	

ADOPTED	PRORA TED BUDGET BUDGET		THRU 513 1/18

TOTAL REVENUES	$260,294	$260,260

ACTUAL

THRU 513 1/18	VARIANCE

$263, 872	$3, 612

Restaurant Equipment	$0	$0	$5,344	($5, 344)	
Ballroom Window Replacement	$66, 000	$44, 000	$32, 347	$11, 653	
Bowling Alley Equipment & Scoreboards	$25,000	$16, 667	$0	$76, 667	
Computer Allowance	$5, 000	$3, 333	$550	$2, 783	
Pool Fence Panel Refurbishment	$16,000	$10, 667	$0	$10,667	
Fitness Equipment	$19, 000	$12, 667	$0	$12, 667	
Fitness Center Restroom Refurbishment	$0	$0	$3,260	($3,260)	
HVAC Replacement	$20, 000	$13,333	$6,293	$7,040	
Landscape Refurbishment	$10, 100	$6, 733	$3,500	$3, 233	
Pavement Management-Parking lot Reswfacing/Striping	$70, 000	$46, 667	$0	$46, 667	
Pavement Management-2993 LF Gullane, Domoch, Robellini	$165, 000	$110,000	$300	$109, 700	
Pool Equipment	$10,000	$6, 667	$2, 635	$4, 031 	
Restaurant Equipment Allowance	$15, 000	$15,000	$78,254	($3,254)	
Stormwater System and Curb Repairs	$25, 000	$25,000	$3 1, 680	($6, 680)	
Ticketing Software	$10,000	$6, 667	$0	$6, 667	
Traffic Calming Speed Humps (2)	$7, 500	$5, 000	$0	$5,000	
Other Current Charges	$650	$433	$308	$126	
Capital Reserves	$77,920	$47, 947	$0	$47,947 	
TOTAL EXPENDITURES	$536, 170	$3 70, 780	$104,471	$266,309	
EXCESS REVENUES (EXPENDITURES)	($275, 876)		$159,401		
FUND BALANCE - Beginning	$275, 876		$280,425		
FUND BALANCE - Ending	$0		$439, 826		

Page 4

 	

LAKE ASHTON
COMMUNITY DEVELOPMENT DISTRICT
SERIES 2015   DEBT SERVICE FUND
Statement of Revenues, Expenditures, and Changes in Fund Balance

I

For The Period Ending May 3 1, 2018
ADOPTED	PRORA TED	ACTUAL

REVENUES:		
Interest Income	$0	$0	$692	$692	
Assessments - Levy	$477, 921	$477, 921	$4 77, 363	($558)	
TOTAL REVENUES	I	$477, 92 1	$477, 921 	$478, 055	$134	
EXPENDITURES:					

BUDGET	THRU 5/3 1/18	THRU 5/3 1/18	VARIANCE

Series 2015A-1 
Interest - 1 1101	$111, 625	$11 1, 625	$111, 625	$0
Interest - 5101	$111, 625	$111, 625	$110, 250	$ 1,3 75
Principal - 5101	$205, 000	$205, 000	$200, 000	$5, 000
Special Call - 1 1/01	$25, 000	$25, 000	$55, 000	($30, 000)	
Special Call - 05101	$0	$0	$20, 000	($20, 000)	

Series 2015A-2
Interest - 1 1101	$15, 125	$15, 125	$75, 125	$0

I

Interest - 5101	$15, 125	$15, 125	$75, 000	$725

Principal - 5101	$20, 000	$20, 000	$20, 000	$0	
Special Call - 11101	$0	$0	$5, 000	{$5, 000)	
TOTAL EXPENDITURES	I	$503, 500	$503, 500	$552, 000	($48, soo)	
EXCESS REVENUES (EXPENDITURES)	I	($25, 579}	($73, 945)	
FUND BALANCE - Beginning	$765,434	$449,110	
FUND BALANCE - Ending	$739, 855	$3 75, 165	

 	

Page s

LAKE ASHTON COMMUNITY DEVELOPMENT DISTRICT
Long Term Debt Report FY 2018
Series 2015- 1, Special Assessment Bonds
Interest Rate:	5. 000%
Maturity Date:	5/1/2025	$1, 965, 000. 00	
Interest Rate:	5. 000%		
Maturity Date:	5/1/2032	$2, 500, 000. 00	
Reserve Requirement:	50% Maximum Annual Debt Service		

Bonds outstanding - 9/30/2017

Current Bonds Outstanding

November 1, 2017 {Special Call)
May 1,  2018 {Mandatory)
May 1, 2018 {Special Call)

$4, 465, 000.00
{$55, 000. 00}
{$200, 000. 00}
($20, 000. 00}
$4, 190, 000. 00

Series 2015-2, Special Assessment Bonds

Interest Rate:	5. 000%		
Maturity Date:	5/1/2025	$170, 000. 00	
Interest Rate:	5. 000%		
Maturity Date:	5/1/203 7	$435, 000. 00	
Reserve Requirement:	50% Maximum Annual Debt Service		
Bonds outstanding - 9/30/2017	
November 1, 2017 (Special Call)	$605, 000. 00
{$5, 000. 00)	
	May 1, 2018 {Mandatory)	($20, 000. 00)	
Current Bonds Outstanding		$580, 000. 00	
ITotal Current Bonds Outstanding		$4, 110, 000. 00 1	

Page 6

Lake Ashton Community Development District
General Fund
Statement ofRevenues and Expenditures (Month by Month)

OCT

NOV 2017

DEC 2017

JAN 2018

FEB 2018

MAR 2018

APR 2018

MAY
2018

JUN 2018

JUL 2018

AUG 2018

SEP 2018

TOTAL

FY2018

Revenues

Maintenance Assessments	so	S1,392,092	S75, 013	S20, 636	S7,485	S47,035

S39,882	so	so	so	so	S1,585, 606

Rental Income	S5, 450
Entertainment Fees	S96,050

S6, 750	S7,000	S5, 400
S10,991	S9, 342

S1,753

S14, 100	S4,200	so	so	so	so	S50,275
S2, 130	so	so	so	so	S142,376

Newsletter Ad Revenue

S5, 299	S17,571	S7,847	S8,808	S5, 917	S5, 420	so	so	so	so	S83, 687

Interest Income	S342

S180	s200	S1,208	S1, 166

S768	so	so	so	so	S4,796

Miscellaneous Income	S1,911	SB70	S1, 126	S1,130	S1, 446	S1,129	S1, 141	so	so	so	so	S13,732

Restaurant Lease	S1, 000	s1,ooo	S1,000	S1,000		S1,000		S484	so	so	so	so	so	so		S5, 484 Insurance Proceeds		so	S4, 716		so		so	S182,946	S5, 183	so	so	so	so	so	so	S192,846

Total Revenues	S127,809	Sl,427,084	$104,213	S56,875	$211,014	$69, 775	$28, 492	$53,541	so	so	$0	$0 $2,078,803 II

d_D_M/I'il5IBA TIII_E;
Supervisor Fees	S250	S250	s200	S250	S250	S250	$250	S500	so	so	so	so	S2,200 FICA Expense		S19		S19		S15		S19		S19		S19		S19		S38	$0	so	so	so		S169

Engineering	$900	$1,350

$1, 725	$2, 715	$2,363	$1, 875	so	so	so	so

S12,503

Arbitrage	so	so	so	so	so	so	$600	$0	$0	$0	$0	$0	S600

Dissemination	SB3	SB3	SB3	SB3	SB3

$183

$0	so	$1,117

Attorney	S1,714	S2,156	$1,405	S2, 717	S2,528

S3,424

so	so	so	so	S19,269

Consulting Services	$0	$0	$0	$0	$0	so	so	$0	$0	$0	so	so	so

Annual Audit	$0	so	so

so	so	S500	S1,500	so	so	so

S2,023

Trustee Fees	$0	$0	so	$0	so	$0	$4, 310	$0	so	so	$0	$0	S4,310

Management Fees	S4,874	S4,874

S4,874

S4,874	$0	so	$0	so	S38,988

Computer Time	SB3	$83	$83	SB3	SB3	SB3	$0	so	so	so	S667
Travel & Per Diem	so	s100	so	so	so	so	so	so	so	so	so	so	S100
Postage	S341	S672	S464	S199	S199	S207	$145	so	so	so	so	S2,383
Printing & Binding	S115	S111	so	S103	$118	S157	S182	so	so	so	so	S924

Newsletter Printing	S3,200	S3,571

S3,439

S3, 131	S3,288	S3,284	so	so	so	so	S26, 791

Rentals & Leases	S709	S187	S320	S998	S187	S224	S997	S187	so	so	so	so	S3,809
Insurance	S36,737	so	so	so	so	so	so	so	so	so	$0	so	S36, 737

Legal Advertising	so	so	so	so	S29	S165	$0	so	so	so	S286

Other Current Charges	SB1	S186	S66	SB	S111

S44

so	so	so	so

Property Taxes	so	S12,408	so	so	so	so	so	so	so	so	so	so	S12,408

Office Supplies	so	so	so	$58	S5	so	so	so	so	so	so

S63

Dues, Licenses & Subscriptions	S175	so	so	so	so	so	so	so	so	so	so	so	S175

Total Administrative	S49,281	$26, 050	$12,544	$14,536	$14,714

Page l

$20,791	SIS,523	$0	so	so	$0	$168,605 ii

OCT	NOV

Lake Ashton
Community Development District
General Fund
Statement ofRevenues and Expenditures (Mont/1 by Month)
FY 2018

JAN	FEB

E[el,:J;

2017	2017	2017	2018	2018

2018

SEP	TOTAL

Field Management Services	S28,939	S25,690	$37,338
Gate Attendants	S17,756	$17,290	$17, 739	$18,363

$21,010	$2

1,785	$20,885	$0

$0	$202, 199

Poot Attendants	$0	$0	$257

$78, 738

$77,561	$0	$0	$0

Pest Control
Security/Fire Alarm/Gate Repairs	$1,153	$1, 079

S120

$295

$305

$0	$0

$0	$0

S2,535

Telephone/Internet

$7,002	$1, 764

S526	$476	$0

S4,377

£tectric	$18,266	$17,551

18,251

S898	$1,060	$119

$0	$0

$976

S
S970	$7,004

S17, 845

$964

$16,357	S15,759
Sl, 119	$0

$0	$0
$0

S/39,483

$2,478	$3,588	$5,552	$2,973

$7,762
$0

Clubhouse Maintenance

S379	$851

S379

$379	$722

$27,877

Pool and Fountain Maintenance

$5, 706	$15,519	S77,537	$7,831	$9,436
$2, 765	Sl,965	$1,365	$7,565

$0
$0	$0	$0

$5,224
S87,992

Landscape Maintenance	$14,240	S/4,667	$14,667	$14,667	S14,667

Sl,565	$7,565	Sl,565	$0

$13,883

Plant Replacement
Irrigation Repairs	$0

$765

$74,667	S/4,667	$74,667
$0	$0	$0
$0

S116,917
$0	$0	$0	$3,609

Lake Maintenance	Sl,545
Wetland Mitigation and Maintenance	$0

$1,545	Sl,545	Sl,545	$1,545
$0

$0
Sl,545

$0	$0

S470

$0

Permits/Inspections	$0	$0
Office Supplies/Printing/Binding	$1,017	S339

$0
$1,357

S7,300	$0	$0
$550

$0	$0	$0
$0	$0	$0	$952

Operating Supplies	$2,432

$425

S499

$0	$4, 778

Credit Card Processing Fees
Dues & Subscriptions	$219

$1,113	S340

S391

Sl,785	$7,603	S2,285	Sl,217	$0
$266	S276

$0
$0	$0

Decorations	$0

S198	Sl, 357	S198	$246	S198

$0	$0	$0

Special £vents
Storm Damage	Sl,305

S368

S9,799

S260

$0	$0
S37, 110	$22,295	$486	$2,215	$0

$2,904
S628

Traffic Accident Damage

$0	$36, 941	$0	$0	$0
$0

$138,347

$0	S303,376
S4, 716

TOTAL FIELD	$104,967	S108,018 OTHERSOURaSAND USES

Capital Reserve-Transfer Out	$0 TOTAL OTHER SOURCES AND USES

$339,472

(5260. 194)

$92,372	$90,557

$0
$0

$0	$0	$0	$7,265,991 II

$0	$0	$0	$0	($260, 194)

Subtotal  Operating  Expenses	$154,242	$134,068
Excess Revenues (Expenditures)	($26, 433)	Sl,293, 016

$614,202	$173, 174	$136,995

$106,080	$0	$0	$0	$0	$1,694, 790 11

($158,652)	($557,327)	S37,840	($67,220)	($84, 671)	($52, 540)	$0	$0	$0	$0	$384,013 I

Page B

 	_ 	_, ,, _______________ 	__ 	__ 	_

-  -   	

------ -·- --	,,_  ------ __,,. . ,.- .. ,....,.,.,. ,_,, _,______ -----.---- ...,_ ,, ___ _