Tesoro Community Development District

Agenda May 28, 2019

A GENDA

Tesoro
Community Development District

May 22, 2019

Board of Supervisors Tesoro Community Development District

Dear Board Members:

135 W. Central Blvd., Suite 320, Orlando, FL 32801
Phone: 407-841-5524-Fax: 407-839-1526

The meeting of the Board of Supervisors of the Tesoro Community Development District will be held on Wednesday, May 29, 2019 at 10:00 a.m. at the Tesoro Club, 2000 SE Via Tesoro Blvd., Port St. Lucie, Florida. Following is the advance agenda for the meeting:

Board of Supervisors Meeting
Roll Call
Public Comment Period
Approval of Minutes of the November 27, 2018 Board of Supervisors Meeting and Acceptance of the Minutes of the November 27, 2018 Landowners' Meeting
Consideration of Resolution 2019-03 Approving the Proposed Budget for Fiscal Year 2020 and Setting a Public Hearing
Ratification of Agreements
Wetland, Lake and Upland Preserve Maintenance Services with Native Lands Management, Inc.
Wetlands Boundary and Lake Banks Landscape Maintenance Agreement with Wellington Pro Lawn Care
Review and Acceptance of Fiscal Year 2018 Audit Report
Appointment of Audit Committee and Chairman
Staff Reports
Attorney
Engineer
District Manager's Report
Approval of Check Register
Balance Sheet and Income Statement
Presentation of Number of Registered Voters - 251
Engagement Confirmation with Dean Mead Regarding Real Property Issues
Field Manager's Report
Audience Comments
Supervisor's Requests
Adjournment

Audit Committee Meeting
Roll Call
Public Comment Period
Audit Services
Approval of Request for Proposals and Selection Criteria
Approval of Notice of Request for Proposals for Audit Services
Public Announcement of Opportunity to Provide Audit Services
Adjournment

The second order of business of the Board of Supervisors Meeting is the Public Comment Period where the public has an opportunity to be heard on propositions coming before the  Board  as reflected on the agenda, and any other items.

The third order of business is the approval of the minutes of the November 27, 2018 Board of Supervisors meeting and acceptance of the minutes of the November 27, 2018 Landowners' Meeting. The minutes are enclosed for your review.

The fourth order of business is consideration of the Resolution 2019-03 approving the proposed budget for Fiscal Year 2020 and setting a public hearing. Once approved, the proposed  budget will be forwarded to the governing  authorities at least 60 days prior to the final budget hearing. A copy  of the Resolution and proposed budget are enclosed for your review.

The fifth order of business is ratification of agreements. Section A is the Wetland, Lake and Upland Preserve Maintenance Services Agreement with Native Lands Management, Inc. A opy of the agreement is enclosed for your review. Section B is the Wetlands Boundary and Lake Banks Landscape Maintenance Services Agreement with Wellington Pro Lawn Care. A copy of the agreement is enclosed for your review.

The sixth order of business is review and acceptance of the Fiscal Year 2018 Audit Report. A copy of the report is enclosed for your review.

The seventh order of business is appointment of Audit Committee and Chairman. There is no back­ up.

Section C of the eighth order of business is the District Manager's Report. Section 1 includes the check register for approval and Section 2 includes the balance sheet and income statement for your review. Section 3 is  the  presentation  of  the  number  of  registered  voters within  the boundaries of
the  District. A copy of  the  letter from the St. Lucie County Supervisor of Elections is enclosed
\
for  your  review. Section  4 is engagement  confirmation  with  Dean  Mead  regarding  real property
issues. A copy of the engagement letter is enclosed for your review. Section 5 is the Field Managers Report. A copy of the report is being provided under separate cover.

Following the adjournment of the Board of Supervisor's meeting, there will be a meeting of the Audit Committee to approve the Request for Proposals and selection criteria and the notice of RFP for auditing services. Enclosed for your review are copies of the RFP, selection criteria, and RFP notice.

The balance of the agenda will be discussed at the meeting. In the meantime, if you should have any questions, please contact me.

Sincerely,
j\-
George S. Flint,
District Manager

Cc:	William Capko, District Counsel Butch Terpening, District Engineer Darrin Mossing, GMS

Enclosures

BOARD OF SUPERVISORS MEETING

•

M INUTES

MINUTES OF MEETING
TESORO COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Tesoro Community Development District was held Tuesday, November 27, 2018 at 10:02 a.m. at the Tesoro Club, Grill Room, 2000 S.E. Via Tesoro, Port St. Lucie, Florida.

Present and constituting a quorum were:

Sal Spano Kathy Fialco Hal Fenner
Rina Osle-Girard

Chairman
Vice Chairperson Treasurer Secretary

Also present were:

George Flint Bill Capko Tom Kiernan
William Viasalyers Paula Loughlin

District Manager
District Attorney by telephone Culpepper & Terpening
Field Manager Castle Group

FIRST ORDER OF BUSINESS
Mr. Flint called the meeting to order.

SECOND ORDER OF BUSINESS

Roll Call

Public Comment Period

There being none, the next item followed.

THIRD ORDER OF BUSINESS	Organizational Matters
Administration of Oath of Office to Newly Elected Supervisors
Mr. Flint being a notary public of the State of Florida administered the Oath of Office to Mr. Spano, Ms. Fialco and Ms. Osle-Girard.
Mr. Flint stated as a Board Member you are a public official and subject to government in the sunshine law, public records laws, other laws that apply to public officials such as city commissioners, county commissioners, school Board Members. The main issue with the sunshine law is that you are not supposed to talk to the other Board Members about CDD

November 27, 2018	Tesoro CDD

business outside of a publicly noticed meeting. That includes texts, emails, verbal communication, communications through third parties, that sort of thing. You need to be careful not to inadvertently do that. There is a Form 1 disclosure of financial interests that is attached to the paperwork I gave you and that has to be filed within 30 days of today with the Supervisor of Elections in the County in which you reside. It has to be filed annually  and each year  in June they will mail you a new form and you will have to file it by July 1st• As a Board Member  you  are also entitled to compensation of $200 per meeting and if you choose to accept the compensation the W-4 and 1-9 forms need to be filled out and sent to me and we process that.

Consideration of Resolution 2019-01 Canvassing and Certifying the Results of the Landowners Election
Mr. Flint stated Resolution 2019-01 canvasses and certifies the results  of  the Landowners' election. We will fill in the names of the three Board Members that were elected, Mr. Spano, Ms. Fialco and Ms. Osle-Girard and it will indicate that Mr. Spano and Ms. Fialco received 600 votes each and will serve four-year terms of office and Ms. Osle-Girard received 599 votes and will serve a two-year term of office.

On MOTION by Mr. Spano seconded by Ms. Fialco with all in favor Resolution 2019-01 was approved.

Acceptance of Resignation of Everardo Ortiz

On MOTION by Mr. Spano seconded by Ms. Fialco with all in favor Everardo Ortiz' resignation was accepted.

Appointment of An Individual to Fill Board Vacancy with a Term Ending November 2020
Mr. Flint stated any time there is a Board vacancy during the term of that seat the remaining Board Members appoint a replacement. This seat has a term ending  in November 2020. Are there any nominations to fill that seat at this time?
Mr. Spano responded not at this time.

Consideration of Resolution 2019-02 Electing Officers

2

November 27, 2018	TesoroCDD

Mr. Flint stated you have Resolution 2019-02 in your agenda package. Currently Mr. Spano is Chairman, Ms. Fialco is Vice Chairperson, Ms. Lordi was Secretary, Mr. Fenner was Treasurer, I was an Assistant Secretary and Ariel Lovera was an Assistant Treasurer. We can handle each office individually or someone can propose a slate.

On MOTION by Mr. Spano seconded by Ms. Fialco with all in favor Resolution 2019-02 was approved reflecting the following officers: Sal Spano Chairman, Kathy Fialco  Vice  Chairperson, Rina Osle-Girard Secretary, Hal Fenner Treasurer, George Flint Assistant Secretary and Ariel Lovera Assistant Treasurer.

FOURTH ORDER OF BUSINESS	Approval of the Minutes of the August 28,
2018 Meeting
Mr. Spano stated I would like to verify the unit count on page 2, the fourth paragraph

down. units.

Mr. Flint stated we reviewed that and what was certified to the property appraiser is 140 Mr. Spano asked why is there a discrepancy between you and the POA?
Mr. Flint stated there isn't anymore. The assessment roll that you reviewed had old data

in it and when we went back and reviewed it we reconciled it to the same number and came up with the same number the POA had.

On MOTION by Mr. Spano seconded by Ms. Fialco with  all in favor the minutes of the August 28, 2018 meeting were approved as presented.

Mr. Capko joined the meeting by telephone at this time.

FIFTH ORDER OF BUSINESS

SIXTH ORDER OF BUSINESS

Consideration of Second Extension to the Wetland, Lake and Upland Preserve Maintenance Agreement with Native Lands Management, Inc.

Consideration of First Extension to the Wetlands Boundary and Lake Banks Landscape Maintenance Agreement with Wellington Pro Lawn Care

3

November 27, 2018	TesoroCDD

Mr. Flint stated when the Board made the decision to bid out the upland buffer landscaping maintenance and the lake and wetland maintenance you made a motion to extend the existing contracts on a month to month basis while we were bidding it out. Items five and six are just the extensions of the contracts that expired on September  30, 2018.  You are not awarding the new one yet that will be what we talk about next.

On MOTION by Mr. Spano seconded by Ms. Fialco with all  in favor the Second Extension to the agreement with Native Lands Management, Inc. and the First Extension to the agreement with Wellington Pro Lawn Care on a month to month basis were ratified.

The next item was taken out of order.

EIGHTH ORDER OF BUSINESS	Review of Proposal and Selection of Firm to
Provide Wetlands Boundary and Lake Banks Landscape Services (RFP 2018-200)
Mr. Flint stated item eight is the lake bank landscape services. We had five firms request the bid package, we held a voluntary pre-bid conference, no one showed up to the pre-bid conference and we received one proposal and that was from Wellington Landscape, the current provider of the services. I don't believe Wellington has increased their  fees in a  number  of years. The existing contract was $89,986 and their bid came in at $94,500, which is a 5% mcrease.
Mr. Spano stated they did come to me and discuss that with me and I recommended that they put in an increase and I negotiated it down to a 5% increase.
Mr. Flint stated because you only received one bid so you have the option of rejecting it and rebidding or accepting the bid and awarding the contract.
Mr. Spano stated Wellington Pro Lawn Care has worked with us for over two decades  and they have been the vendor here and have won four other bids in the past and that might be why you are not getting a lot of other bids.

On MOTION by Mr. Spano seconded by Ms. Fialco with all in  favor the contract was awarded to Wellington Pro Lawn Care in the amount of $94,500.

4

November 27, 2018	Tesoro CDD

SEVENTH ORDER OF BUSINESS	Review of Proposals and Selection of Firm to
Provide Wetland, Lake and Upland Preserve Maintenance Services (RFP 2018-100)
Mr. Flint stated we also bid the lake and wetland maintenance, we had eight firms request packages, six companies represented at the pre-bid conference and received three proposals that you were provided. The proposals were from Lake and Wetland Management, Inc., Kerner Environmental and Native Lands Management, Inc. Native Lands Management, Inc. is the current provider of the services. When you approved the form of the RFP you also approved the evaluation criteria that included personnel, experience, understanding of the scope of work and their financial capability as well as price. On the ranking sheet we put the price, which represents 15 points out of the total 100 points. Native Lands came in at $151,992, which is their current contract amount, Lake and Wetland Management came in at $147,432 and Kerner Environmental came in at $140,262.
Kerner Environmental is a very small company, has gross revenue of less than $500,000 a year. This contract is $140,000 so it would represent more than a third of their current revenue. They have limited staffing. I'm sure they would do a fine job; my concern would be the size of the company and their ability to provide the service. I would keep that in mind and price is only 15% of the total so although they are the lowest price bidder the other criteria come into play when you are evaluating them.
Lake and Wetland Management is a larger company and they have a lot of experience as demonstrated in the proposal, they do work for a number of CDDs. They have offices throughout the State of Florida and a presence in this area. I think the variable between them and our current provider is probably understanding the scope of work since our current provider has been maintaining these systems since they were constructed. They are intimately familiar with the work that needs to be done and we don't have any issues with their current performance. I think that would come into play when you are evaluating the firms.
Mr. Spano stated there was a time in the past when we took the lowest bidder brought them in and for six months the place was a mess and we couldn't get anything done and since there is such a small difference in price and the history we have, I recommend we continue with our current contractor.
Mr. Spano stated I rank Native Lands no. 1, Lake and Wetland no. 2 and Kerner Environmental no. 3.

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November 27, 2018	Tesoro CDD

On MOTION by Mr. Spano seconded by Mr. Fenner with all in favor Native Lands Management, Inc. was ranked 1, Lake and Wetland Management was ranked 2 and Kerner Environmental was ranked 3.

Mr. Flint stated we will get contracts drafted with those firms and ratify them at a future meeting.

NINTH  ORDER OF BUSINESS	Staff Reports
Attorney
There being none, the next item followed.

Engineer
Mr. Kiernan stated I would like to provide an update on the work effort we have been undertaking to provide the access rights for the CDD to continue to maintain the drainage facilities. We have identified all of the areas on the east side, everything east of Via Tesoro, and we have written the descriptions that would be included in that agreement for the east side. The west side we have identified all of those areas as well and we are in the process of preparing the legal descriptions for the west side of the property, which would give the CDD the rights for ingress/egress. Our timeline for that is within the next 30 days to have it all completed and at that point I believe those legal descriptions and our exhibit will go to Mr. Dobbins. I wouldn't expect him to do more than review that and I expect he will have drafted language that would be the overall document that you would look for the POA to execute on behalf of the CDD.
Mr. Spano stated I ask that you keep George Flint and his group in on all emails and
correspondence as we finalize this so we have a coordinated effort.
Mr. Flint stated there have been a number of targets set that haven't been met on this and it has gone on for years so you really need to meet that 30 day timeframe.
Mr. Kiernan stated I'm making that commitment here, that is why I'm here because we actually see that this is completed, we have identified all the areas and it is a matter of putting the legal language into the descriptions, which is what I do in the surveying department so we are there and I see the goal line within 30 days. I will take the lead on this particular item from here on out.

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November 27, 2018	Tesoro CDD

Manager
Approval of Check Register

On MOTION by Mr. Spano seconded by Ms. Fialco with all in  favor the check register was approved.

Balance Sheet and Income Statement
A copy of the balance sheet and income statement was included in the agenda package.

Field Manager's Report
Mr. Spano stated we are still not getting copies of the field reports.

TENTH ORDER OF BUSINESS	Audience Comments
There being none, the next item followed.

ELEVENTH ORDER OF BUSINESS
There being none,

Supervisor's Requests

On MOTION by Mr. Spano seconded by Ms. Fialco with all in favor the meeting adjourned at 10:28 a.m.

Secretary/Assistant Secretary	ChairmanNice Chairman

7

MINUTES OF LANDOWNERS ' MEETING TESORO COMMUNITY DEVELOPMENT DISTRICT

The Tesoro Community Development District held a Landowners' Meeting on Tuesday, November 27, 2018 at 10:00 a.m. at the Tesoro Club, Grill Room, 2000 S.E. Via Tesoro, Port St. Lucie, Florida.

Present were:

Sal Spano Kathy Fialco Hal Fenner
Rina Osle-Girard George Flint

FIRST ORDER OF BUSINESS	Determination of Number of Voting Units
Represented
Mr. Flint stated I have been provided documentation from West Coast Investors, LLC indicating they own 663.46 acres representing 832 votes.

SECOND ORDER OF BUSINESS
Mr. Flint called the meeting to order.

Call to Order

TIDRD ORDER OF BUSINESS	Election of a Chairman for the Purpose of
Conducting the Landowners' Meeting
Mr. Flint asked as a representation of West Coast Investors will you designate me as Chairman for purposes of conducting the Landowners' Meeting?
Mr. Spano responded yes.

FOURTH ORDER OF BUSINESS	Nominations for Position of Supervisor
Mr. Flint stated Mr. Spano has provided me with his official ballot nominating himself, Kathy Fialco and Rina Osle-Girard.
There being no other nominations the floor was closed to nominations.

November 27, 2018	Tesoro CDD

FIFTH ORDER OF BUSINESS

SIXTH ORDER OF BUSINESS

Casting of Ballots

Ballot Tabulation

Mr. Flint stated Mr. Spano has cast 600 votes for Mr. Spano, 600 votes for Ms. Fialco and 599 for Ms. Osle-Girard.

SEVENTH ORDER OF BUSINESS	Landowners' Questions and Comments
There being none, the Landowners' Meeting adjourned.

2

S ECTION IV

RESOLUTION 2019-03

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

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

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

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

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

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

DATE: HOUR: LOCATION:

August 28, 2019

10:00 a.m.

The Tesoro Club
2000 SE Via Tesoro Blvd. Port St. Lucie, FL 34984

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

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

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

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

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

PASSED AND ADOPTED THIS 29th DAY OF MAY, 2019.

ATTEST:	TESORO COMMUNITY
DEVELOPMENT DISTRICT

By:_   _  _  _ 		_ _ _ _ _ _

Secretary

Its:- - - - - - - - - - - - - -

Ce

-  ••	V	•.C:,
• !  !  ! • •
TESORO
Community Development District
Proposed Budget
FY2020

Table of Contents

1	 	General Fund

 	General Fund Narrative

Tesoro
Community Development District General Fund Budget

	Adopted Budget	Actual
thn,	Projected
Next	Projected
thn,	Proposed
Budget	
	FY2019	4 / 30 / 19	5 Months	9 / 30 / 19	FY2020	

s-en11111
Stormwater Fees	
$210,000	
$224,110	
$2,934	
$227,044	
$220,000	
Maintenance Assessments	$71,321	$65,487	$5,834	$71,321	$71,321	
Interest Income	$5,000	$6,537	$3,463	$10,000	$7,500	
Carry Forward Surplus	$111,729	$59,460	$0	$59,460	$104,121	
Tot.al Revenues	! 398 ,050	! 355 ,595	1 12 ,231	! 367 ,825	£402 ,942	
EGendiblies						
dm.iaifitrati:ilC						
SUpervisor Fees	$4,000	$600	$2,000	$2,600	$4,000	
FICA Expense	$306	$46	$153	$199	$306	
Engineering	$5,000	$14,083	$5,917	$20,000	$5,000	
Attorney	$10,000	$1,671	$3,329	$5,000	$10,000	
Annual Audit	$2,800	$D	$2 ,800	$2,800	$2,800	
Assessment AdmInlstration	$2,500	$2,500	$0	$2,500	$2,500	
District Management Fees	$31,827	$18,566	$13,261	$31,827	$31,827	
Information Technology	$500	$1,492	$208	$1,700	$500	
Telephone	$150	$6	$44	$50	$150	
Postage	$1,000	$173	$327	$500	$1,000	
Insurance	$6,844	$6,222	$0	$6,222	$6,844	
Printing & Binding	$1,000	$33	$167	$200	$1,000	
Legal AdvertIslng	$1,600	$615	$985	$1,600	$1,600	
Other Current Charges	$750	$219	$226	$445	$750	
Office supplies	$200	$21	$54	$75	$200	
Dues, Licenses &Subscriptions	$175	$175	$D	$175	$175	
Administrative Expenses	! 68 , 652	H 6 , 421	! 29 ,471	! 75 ,892	! 68 ,652	
fi.e/.<I. QJ2er:atiD.as						
Field Mangagement Fees	$15,450	$9,013	$6,438	$15,450	$15,450	
WaSide	
Mitigation Maintenance	
$85,116	
$49,651	
$35,465	
$85,116	
$85,116	
Landscaping	$89,986	$53,996	$39,375	$93,371	$94,500	
Electric	$10,000	$78	$57	$135	$10,000	
Plant Replacement	$5,000	$0	$2,500	$2,500	$5,000	
Fountain Repairs	$5,000	$0	$2,500	$2,500	$5,000	
Contingency	$26,095	$0	$13,048	$13,048	$26,473	
East.Side
Mitigation Monitoring	
$7,500	
$0	
$3,750	
$3,750	
$7,500	
Mitigation Maintenance	$66,876	$39,011	$27,865	$66,876	$66,876	
Plant Replacement	$5,000	$0	$2,500	$2,500	$5,000	
Contingency	$13,375	$0	$6,688	$6,688	$13,375	
Reid Operations Expenses	! 329 ,398	! 151 ,749	! 14 0 ,185	! 291 ,933	! 334 , 290	
Total Expenditures	£ 398 ,050	! 198 ,170	! 169 ,656	! 367 ,8 26	! 402 ,942	
ExCleSS Revenues /(Expenditures)	10	! 157,424	,11571425 )	,	t0l	! 0	
Net As!;essments	$71,321	
Add : Discounts & Collections	 	552	
Gross As!;essments	$75,873	

SF Lots*			Per Unit	Gnlss	MalntenallCle Assessment	
		 	FY2016		FY:Z017		FY:Z018		FY2019		FY:ZO:ZO		
Developed		$-1(),69	$-10.69	$-1().69	$-10.69	$-10.69	
Tracts		$-1().69	$-1().69	$-1(),69	$-1().69	$-1().69	
Undeveloped		$30.51	$30.52	$30.52	$30.52	$30.52	
"Und-.-t SF Lds a-i	at .75 units						

Tesoro
Community Development District
GENERAL FUND BUDGET

REVENUES:
stormwater fees
The District has entered into an agreement with the City of St. Lucie requiring the City to refund to the District 75% of all stormwater fees collected within the District's boundaries.

Descriotion	Amount	
Gross Stormwater Revenue	$325,612	
Less: Discount, Tax Collector & Property Appraiser@ 7% (.93)	$302,819	
COD Amount (75%)	$227,114	
Allowance for Delinquencies		
NET BUDGET	$220,000	
Maintenance Assessments
The District will levy a non-ad valorem special assessment on all taxable property within the District, to fund General Operating and Maintenance Expenditures for the Fiscal Year. This represents the net assessments after discounts and collection fees.
Interest Income
The District will invest surplus funds with State Board of Administration.

carry Forward Surplus

The District will utilize a portion of excess funds collected in previous fiscal years.

EXPENDITURES:
Administrative:
Suoervisor fees
The Florida Statutes allows each board member to receive $200 per meeting not to exceed $4,800 in one year. The amount for the fiscal year is based upon 5 supervisors attending 4 monthly meetings.
FICA Expense
Represents the Employer's share of Social Security and Medicare taxes withheld from the Board of Supervisors checks.
Engineering
The District's engineer will be providing general engineering services to the District, e.g. attendance and preparation for monthly board meetings, review invoices, etc. The District has contracted Culpepper & Terpening for this service.

2

Tesoro
Community Development District
GENERAL FUND BUDGET

Attornev
The District's legal counsel, Lewis, Longman & Walker, P.A., will be providing general legal seivices to the District, e.g. attendance and preparation for monthly meetings, review operating & maintenance contracts, etc.

Annual Audit

The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. The District is contracted with Grau and Associates, CPA.
AssessmentAdministration
The District has contracted with Governmental Management Seivices-CF, LLC to levy and administer
the collection of non-ad valorem assessment on all assessable property within the District.

District Management Fees

The District has contracted with Governmental Management Seivices - Central Florida, LLC to provide management, accounting and recording secretary seivices. These services indude but are not limited to, advertising, recording and transcribing of Board meetings, administrative seivices, budget preparation, financial reporting, and assisting with annual audits.

Information Technology

The District incurs costs related to the District's accounting and information systems, District's website creation and maintenance, electronic compliance with Florida Statutes and other electronic data requirements.

Telephone

The District incurs charges for telephone and facsimile services.

Postage

Mailing of agenda packages, overnight deliveries, checks for vendors and other required correspondence.

Insurance
The District's general liability and public officials liability coverage is provide by the Florida Insurance Alliance (AA). AA specializes in providing insurance coverage to governmental agencies.
Printing & Binding

Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes etc.

Legal Advertising

The District is required to advertise various notices for monthly Board meetings, public hearings etc. in a newspaper of general circulation.

3

Tesoro
Community Development District
GENERAL FUND BUDGET

Other Cu,rentCha[{leS

Includes bank charges and any other miscellaneous expenses that are incurred during the year.

Office Supplies
Miscellaneous office supplies.
Dues,Licenses & Subscrpitions
The District is required to pay an annual fee to the Department of Economic Opportunity for $175. This is the only expense under this category for the District.
Field Operations;
Field Management fees
The District has contracted with Governmental Management Services - Central Florida, LLC to provide onsite field management of contracts for the District Services such as landscape and lake maintenance. Services to include onsite inspections, meetings with contractors and monitoring of utility accounts.

Westside

MitigationMaintenance

Includes the cutting and removal of exotic and nuisance vegetation from all wetland preserves and their associated buffers within the limits of the US Army Corps of Engineers permit and the SFWMD permit previously issued for the parcel west of Via Tesoro Boulevard within the limits of the Tesoro West project area. Due to the native vegetation on the site and in accordance with the conditions of the Agency permits, hand cutting of vegetation will occur where possible and application of an appropriate herbicide to the cut stumps to inhibit further growth. The District has contracted with Native Lands Management, Inc. for this service.

Description	Monthl y	Annuall y	
Mitigation Maintenance	$7,093
TOTAL	$85,116	
	$85,116	

Landscaping

Scheduled maintenance consists of trimming vegetation, weed control, edging, blowing, application of herbicides (as pennitted), and the removal of debris and trash within the service area. The District has contracted with Wellington Pro Lawn Care for this service.

Description	Monthl y	Annuall y	
Landscape Maintenance	$7,875
TOTAL	$94 500	
	$ 94 .500	

4

Tesoro
Community Development District
GENERAL  FUND BUDGET

To record cost of electric services to an irrigation pump. The District has the following utility account with Florida Power & Light.

Description	Monthly	Ann uallv	
167 SE Bella Strano #Pump	$833
TOTAL	$10,000	
	$10 .000	

Plant Replacement
Unscheduled maintenance consists of tree, shrub, and other plant material replacements in various communities.

Fountain Reoairs
Includes expenses for equipment, supplies, and maintenance for the fountains at the District.

Contingency

The current year contingency represents 20% of the mitigation maintenance and 10% of the landscaping costs for any maintenance expenses not included in budget categories or not anticipated in specific line items.

EastSide
Mitigation Monitoring

The District will schedule monitoring of mitigation areas.

Mitigation Maintenance
Includes the cutting and removal of exotic and nuisance vegetation from all wetland preserves and their associated buffers within the limits of the US Army corps of Engineers permit and the SFWMD permit previously issued for the parcel east of Via Tesoro Boulevard within the limits of the Tesoro East project area. Due to the native vegetation on the site and in accordance with the conditions of the Agency permits, hand cutting of vegetation will occur where possible and application of an appropriate herbicide to the cut stumps to inhibit further growth. The District has contracted with Native Lands Management, Inc. for this service.

D escriotion	Monthl y	Annually	
Mitigation Maintenance	$5,573
TOTAL	$66 876	
	$ 66 876	

Plant Rt:placement

Unscheduled maintenance consists of tree, shrub, and other plant material replacements.

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Tesoro
Community Development District
GENERAL RJND BUDGET

Contingency
The current year contingency represents 20% of the mitigation maintenance and 10% of the landscaping costs for any maintenance expenses not induded in budget categories or not anticipated in specific line items.

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S ECTION V

S ECTION A

AGREEMENT BETWEEN NATIVE LANDS MANAGEMENT, INC. AND THE TESORO COMMUNITY DEVELOPMENT DISTRICT REGARDING THE PROVISION OF WETLAND, LAKE
AND UPLAND PRESERVE MAINTENANCE SERVICES

This Agreement is made and entered into this 1st day of January, 2019 by and between:

The Tesoro Community Development District, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes, being situated in St. Lucie County, Florida, and having offices at 135 West Central Blvd., Suite 320, Orlando, Florida 32801 ("the District"), and,

Native Lands Management, Inc., having offices at 3172 SE Waaler Street, Stuart, Florida 34997 ("the Contractor").

RECITALS

WHEREAS, the District was established by a rule of the Florida Land and Water Adjudicatory Commission for the purpose of providing stormwater management and wetlands mitigation maintenance services to all residences and commercial properties throughout the District; and

WHEREAS, the District has a need to retain an independent contractor to provide wetland, lake, and upland preserve maintenance services for certain lands within the District; and

WHEREAS, the District fmds it in the best interest of the District to engage the services of the Contractor.

NOW, THEREFORE, in consideration of the recitals, agreements, and mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties agree as follows:

Section 1. Recitals. The recitals so stated above are true and correct and  by  this reference are incorporated into and form a material part of this Agreement.

Section 2. Duties. The duties, obligations, and responsibilities of the Contractor are described in Exhibit "A" attached hereto. The location of the services is identified on Exhibit "B" attached hereto. Contractor shall be solely responsible for the means, manner and methods by which its duties, obligations and responsibilities are met to the satisfaction of the District. Contractor shall report to the District Manager or his designee. Additional duties may be specified by the District Manager or his designee.

Section 3. Compensation. District agrees to compensate the Contractor in accordance with the following schedule:

Monthly Treatment Costs -	$12.666.00	($151,992.00 Annually) Contractor shall invoice the District for services performed monthly.

Any additional compensation for additional duties shall be paid only upon the written authorization of the District Manager or his designee.

Section 4. Independent Contractor. The District and Contractor agree and acknowledge that Contractor shall serve as an independent contractor of the District.

Section 5. Term. This Agreement shall commence on January 1, 2019 and shall continue until September 30, 2019 unless terminated in accordance with Section 11 below. This contract may be extended by up to two (2) additional one (1) year terms upon mutual agreement in writing by both the Contractor and District. This agreement may be extended on a month-to­ month basis upon agreement of the parties hereto in writing and subject to appropriation of funds by the District's Board of Supervisors.

Section 6.	Insurance.

The Contractor shall maintain throughout the term of this Agreement the following insurance

Worker's Compensation Insurance in accordance with the laws of the State of Florida.

Commercial General Liability Insurance covering the Contractor's legal liability for bodily injuries, with limits of not less than $2,000,000 (two million dollars) combined single limit bodily injury and property damage liability with the District named as an additional insured, and covering at least the following hazards:

Independent Contractors Coverage for bodily injury and property damage in connection with subcontractors' operation;

The District shall be named as additional insured

Employer's Liability Coverage with limits of at least $1,000,000 (one million dollars) per accident or disease.

Professional Liability Insurance with limits of $1,000,000 (one million dollars).

Automobile Liability Insurance for bodily injuries in limits of not less than
$2,000,000 (two million dollars) combined single limit bodily injury and for property damage, provided coverage for any accident arising out of or resulting from the operation, maintenance, or use by the Contractor of any owned, non-owned, or hired automobiles, trailers, or other equipment required to be licensed.

Section 7. Indemnification. Contractor agrees to indemnify and hold harmless and defend the District and its officers, agents and employees from any and all liability, claims, actions, suits or demands by any person, corporation or other entity for injuries, death, property damage or of any nature, arising out of, or in connection with, the work to be performed by Contractor,

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including litigation or any appellate proceedings with respect thereto. Contractor agrees that nothing herein shall constitute or be construed as a waiver of the District's limitations on liability contained in Section 768.28, Florida Statutes, or other statute.

Section 8. Agreement. This instrument shall constitute the final and complete expression of this Agreement between the District and the Contractor relating to the subject matter of this Agreement. This Agreement effectively cancels the Second Extension to the Wetland, Lake and Upland Preserve Maintenance Agreement (dated October 1, 2018).

Section 9. Amendments. Amendments to and waivers of the provisions contained in this Agreement may be made by an instrument in writing which is executed by both the District and the Contractor.

Section 10. Authorization. The execution of this Agreement had been duly authorized by the appropriate body or official of the District and the Contractor, both the District and the Contractor have complied with all the requirements oflaw, and both the District and the Contractor have full power and authority to comply with the terms and provisions of this instrument.

Section 11. Cancellation. The District shall have the right to cancel this Agreement at anytime upon written notice. Contractor shall have the right to cancel this agreement upon thirty
days written notice to the District stating a failure of the District to perform in accordance with the terms of this Agreement.

Section 12. Enforcement of Agreement. In the event that either the District or the Contractor is required to enforce this Agreement by court proceedings or otherwise, then the prevailing party shall be entitled to recover all fees and costs incurred, including reasonable attorney's fees and costs for trial, alternative dispute resolution, or appellate proceedings.

Section 13. Notices. All notices, requests, consents, and other communications under this Agreement ("Notices") shall be in writing and shall be hand delivered, mailed by First Class Mail, postage prepaid, or sent by overnight delivery service, to the Parties, as follows:

If to Contractor: Native Lands Management, Inc.
3172 SE Waaler Street Stuart, Florida 34997 Attn: Ronnie Howell

If to District:

With a copy to:

Tesoro Community Development District 135 West Central Blvd., Suite 320
Orlando, Florida 32801 Attn: District Manager

Lewis, Longman & Walker PA 515 N. Flagler Drive, Suite 1500 West Palm Beach, Florida 33401 Attention: William G. Capko

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Except as otherwise provided in this  Agreement.  an  Notices  shall  be  deemed  received onlv upon actual deliverv at the address set forth above. Notices delivered after 5:00 p.m. (at  the place of delivery ) or a non-business day. shall be deemed received on the next business day.  If at  anv time for giving Notice contained in this Agreement would otherwise expire on a non-business day. the Notice period shall be extended to the next succeeding business day. Saturdays. Sundays. and legal holidays recognized by the United States government shall not be re$!arded as business davs. Counsel for the District and counsel for the Contractor may deliver Notices on behalf of the District and the Contractor. An  Party or other  person  to whom Notices  are to be sent  or copied  may noti fy the other Parties and addressees of any ch ange in name or address to  which  Notices shall be sent  b  providing the  same on five (5 )  da. s  written notice to the  Parties  and addressees  set forth in this Agreemen t.

Section 14. Assignment. Neither the District nor the Contractor may assign this Agreement or any monies to become due under this Agreement without the prior written approval of the other, and such approval shall not be unreasonably withheld.

Section 15. Controlling Law. This Agreement and the provisions contained in this Agreement shall be construed, interpreted, and controlled according to the laws of the State of Florida.

Section 16. Severability. The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of the remaining portions of this Agreement, or any part of this Agreement not held to be invalid or unenforceable.

Section 17. Headings for Convenience Only. The descriptive headings in this Agreement are for convenience only and shall neither control nor affect the meaning or construction on any of the provisions of this Agreement.

Section 18. Counterparts. This Agreement may be executed in any number  of counterparts, each of which when executed and delivered shall be an original; however, all such counterparts together shall constitute, but one and the same instrument.

Section 19. Public Records. Contractor understands and agrees that all documents of any kind provided to the District in connection with this Agreement may be public records, and, accordingly, Contractor agrees to comply with all applicable provisions of Florida law in handling such records, including but not limited to Section 119.0701, Florida Statutes. Contractor acknowledges that the designated public records custodian for the District is George Flint ("Public Records Custodian"). Among other requirements and to the extent applicable by law, the Contractor shall I) keep and maintain public records required by the District to perform the service;
2) upon request by the Public Records Custodian, provide the District with the requested public records or allow the records to be inspected or copied within a reasonable time period at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes; 3) ensure that public records which are exempt or confidential, and exempt from public records disclosure requirements, are not disclosed except as authorized by law for the duration of the contract term and following the contract term if the Contractor does not transfer the records to the Public Records Custodian of the District; and 4) upon completion of the contract, transfer to the District, at no cost, all public records in Contractor's possession or, alternatively, keep, maintain and meet all applicable requirements for retaining public records pursuant to Florida laws. When such public records are transferred  by the Contractor, the Contractor  shall destroy any duplicate  public records that are

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exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the District in a format that is compatible with Microsoft Word or Adobe PDF formats.

IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE " CUSTODIAN OF PUBLIC RECORDS AT (407) 841-5524, GFLINT@GMSCFL.COM, OR AT 135 W. CENTRAL BLVD., SUITE 320, ORLANDO, FLORIDA 32801.

{SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the day and year first written above.

ATTEST:	TESORO COMMUNITY
D	)btfflMft.i	UISTRICT

Secretary1Assistant Secretary

ATTEST:	NATIVE LANDS MANAGEMENT, INC

C	=s;3 C :s=::::::,
Print:  5£[2(../	S{.jL)

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Exhibit A - Overall Scope of Services - Definition

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:

OperationProcedures

The Contractor shall perform the basic services outlined within the Attachment A­ Scope of Services as defined between the hours of8:00 a.m. and 5:00 p.m., Monday through Friday unless specified otherwise or directed by the District. The Contractor may submit a request for additional operation time, in response to poor weather conditions, to be reviewed for approval by the District. The District will designate where Contractor's crew will take breaks, lunches, and use restroom facilities. Employee personnel vehicles will be parked only in areas designated by the District.

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 subject to approval by the District. Where applicable, the Contractor shall require certifications, training, etc. be secured and updated for all employees for the Environmental Services provided as defined in Attachment A-Scope of Services.

Contractor shall provide one (1) On-Site Field Operations Manager who is knowledgeable of the Contractor's daily activities when performed at the site. The Senior Overall Manager shall serve as the point of contact between the District, Contractor and any other entity and shall be responsible for coordinating all scheduled services with the District and for the timely scheduling of scheduled or unscheduled environmental services.

Contractor shall provide at least one (1) full-time onsite Field Manager to observe and monitor the daily or routine activities of environmental services covered in the contract as defined in Attachment A-Scope of Services.

Contractor shall provide a trained Field Crew to perform basic scope of services as outlined above for environmental services covered in the contract as defined in Attachment A-Scope of Services.

Contractor shall have key personnel office location within St. Lucie County and/or no more than twenty (20) miles from site.

Personnel Dress Code

The Contractor shall ensure that employees working on the Project shall wear

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uniforms or professional attire at all times. Personnel will wear clean uniform shirts of consistent design and color.

Personnel Conduct

The Contractor shall enforce strict discipline and good order among its employees on the Project site. The Contractor shall ensure that its employees who communicate and interact with the community and any other customer/party associated with the Project are knowledgeable of the Project and the Services the Contractor is performing.

Safetv Program

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

The District shall not provide a facility on the Project Site for the Contractor as part of this Scope of Services. The Contractor shall, upon receipt of written approval from the District, be allowed to temporarily store, if necessary, its materials and equipment on site at a District-selected location. The Contractor shall be responsible for security of its stored materials and equipment, as well as any connections for utilities to the storage site.

Subcontractors

If the Contractor, as a part of the performance of its Services, elects to employ Subcontractors, the following shall apply:

The Contractor shall be responsible for, and coordinate with, the services of any of its Subcontractors.
The Contractor shall require all of its Subcontractors, as a condition of employment, to agree to the applicable terms and conditions identified in the Contract Documents.
Current certificates of insurance will be provided.

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Consultants

If the Contractor, as a part of the performance of its Services, elects to employ consultants, the following shall apply:

The Contractor shall be responsible for, and coordinate with, the services of any of its consultants.
The Contractor shall require all consultants, as a condition of employment, to agree to the applicable terms and conditions identified in the Contract Documents.
Current certificates of insurance will be provided.

Document Control and Data Management

Document Control

The Contractor shall keep accurate records of 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 information available to or from this Contractor. The "log" shall outline document titles and dates, the originator, received dates, and to/from information. This "log" shall be updated monthly and submitted to the District when requested.

Data Maintenance

The Contractor shall, after review with the District, establish a systematic process for the insertion of revised sets and the integration of that data into the overall Project plan after verification for compatibility and consistency of the information received with existing information.

Data Dispersal

Should the Contractor distribute 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 District identifying:

Party to whom the data is being transferred
Origination of the request for transfer
Name of data being transferred
Type(s) of data being transferred
Date of transfer
Purpose of transfer or use of information
Further action necessary

The Contractor shall propose a format for, and keep a log of, all data transfers for updates to the District.

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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 reported to the District verbally and in writing, upon discovery.

Ownership of Data

It is to be understood that all data transmitted, and material/equipment purchased under this contract by the Contractor or provided to the Contractor, either by the District or third parties, are the sole properties of the District. The Contractor shall have temporary charge of the data while performing contracted services for the Project. All data shall be returned to the District at the conclusion of the Project, after which, no copies of the data may be kept by the Contractor without the express written permission of the District.

The District shall retain the right to require that the Contractor transfer all Project data, material, or equipment to the District immediately upon fourteen (14) days' written notice, for any reason. The same procedures shall apply should it become necessary for the Contractor to voluntarily return all Project data to the District.

Quality Control

The District will have the right, at any stage of the operation, to reject any or all of the Contractor's services and materials, which in the District's opinion does not meet the requirements of these specifications. The Contractor shall replace or reimburse the District for the cost of replacement or repairs, at the Contractor's own expense, those native plant materials as defined in Attachment A-Scope of Services that are damaged or lost due to insects, disease, fungus, and/or as result of Contractor's insufficient services as directed by the District. All replacements shall meet the current size, specifications, and quality of surrounding related material. Any other CDD items damaged due to the Contractor's negligence shall be repaired or replaced as directed by the District at the Contractor's own expense. All repairs and replacements shall also occur within two (2) weeks of notice from the District.

If requested by the District, the Contractor will make weekly walk-through reviews of the entire site related to visual observations and the Contractor's performance. The Contractor will make repairs and adjustments, as directed by the District, during these site visits. A monthly Environmental Services Report shall be generated by the Contractor and submitted to the District outlining potential problem areas and the Contractor's proposed corrective action, upcoming work approval request, coordination, scheduling, etc. The Contractor shall provide the District with a weekly updated environmental services log addressing all activities occurring in that week.

COORDINATION
The Contractor shall provide coordination with the District for all items associated with the requirements of this Agreement.

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General Coordination

The Contractor shall meet with the District and its separate consultants as appropriate, on a monthly basis, if required. Those meetings shall serve as forum for the exchange of information, identification of pertinent and critical issues, determination of an action plan and schedule for resolving those issues, review of schedule and budget status, and discussion of other environmental services and maintenance related issues deemed appropriate by the District of the Contractor.

In addition, the Contractor shall provide a representative to attend the periodic meeting of the Board of Supervisors if requested to do so by the District. This representative shall be knowledgeable of Scope of Services as defined in Attachment A and shall be able to respond to any questions the Board may have as to the day-to-day activities at the Project site pursuant to this Agreement.

Coordination of the construction, operation, environmental services and general maintenance of the District assets at the Project is considered one of the many critical activities of the Contractor. Further, coordination of those efforts with all parties involved, or those with the need to know are crucial to the success of the Project. While all parties involved with the Project cannot be identified at this time, a partial list is provided as follows:

CDD District Manager and/or CDD District Field Manager
CDD District Engineer
CDD District Representative
St. Lucie County and its various departments
Florida Turnpike Authority
Florida Department of Transportation
SFWMD
US Army Corps of Engineers
Adjacent property owners, as directed by the District
Tesoro Club operating staff and Golf Course maintenance staff

Contractor's District Manager and Project Manager

Contractor shall designate an on-site 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 District and the Contractor. This individual shall maintain at all times a means of being contacted by the District (pager, cellular phone, or radio) and shall respond to such calls within twenty (20) minutes of contact. This individual shall be responsible for maintaining the Contractor's schedule of activities and notifying the District of this daily schedule for quality control of the Contractor's service and for arranging and supervising unscheduled service requests by District. Contractor will also provide District with a contact list for use in case of emergencies and will have personnel on call after regular business hours to respond accordingly.

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Contractor's Vehicles and Equipment

Contractor service vehicles must be well maintained and clean in appearance. Vehicles must be properly licensed and tagged and operated only by licensed personnel. All Contractors vehicles must operate in a safe and courteous manner while on site. Pedestrians have the right-of-way, and service vehicles are expected to yield. All trailers, storage facilities, and maintenance equipment must be in good condition and present a clean and neat appearance. Tools and equipment must be properly suited for their purpose and used in a safe manner utilizing the appropriate safety gear when necessary.

Contractor's Additional Provisions

Property inspections will be conducted weekly by an authorized Contractor representative. Contractor will document and correct any environmental services deficiencies that are identified within one week, or provide a status update for work requiring a longer period to accomplish. Periodic inspections (no less than monthly) will be conducted in conjunction with a management representative of the District. A monthly report will be provided to the client summarizing activities completed, in progress and planned. Contractor will be proactive in identifying any environmental services conditions that affect long-term environmental health and vigor and will advise District, accordingly.

SCHEDULED OPERATIONS AND MAINTENANCE

The Contractor shall meet all requirements as defined in Attachment A - Scope of Services and as required in this Agreement. The contractor shall make a complete site inspection of Tesoro, specifically the areas of Districts maintenance. Attachment A - Scope of Services includes plan identifying the general limits of Districts environmental services.

UNSCHEDULED MAINTENANCE AND REPAIRS

The Contractor shall be equipped and organized to provide any unscheduled services and repairs required and any emergency maintenance and repairs as provide in the above noted Performance Specifications on an immediate basis.

RESPONSE TIME

The Contractor shall provide services and repairs within the amount of time indicated in this Agreement. The following is general response time information and requirements for the Emergency Response Program to be developed, implemented, and maintained by the Contractor.

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General

The Contractor shall, on a timely and efficient basis, respond to any and all requests and perform all repairs, inspections, and observations, etc. stipulated in the Project Manual. The Contractor shall provide supervisory, operating and maintenance personnel as required who shall be available on call 24 hours per day, seven (7) days per week to respond to and correct any problems with any of the elements covered by this Agreement.

Response time, unless otherwise directed by the District, required by the Contractor for various environmental service activities is as follows:

Standard environmental services activity adjustments: varies, as directed by District.
Standard repairs: one week
Emergency repairs: three (3) hours
Unscheduled environmental services request: as needed, as soon as four (4) hours
Plant material replacement: two (2) weeks

Should the Contractor fail to respond to a request for any services addressed in Attachment A-Scope of Services within the required allotted time, the Owner shall, at the Contractor's sole expense, provide the requested services.

Emergency ResponseProgram

The Contractor shall develop, implement, and maintain an Emergency Response Program (ERP) for emergency work that must proceed immediately to avoid property damage or result in a public health or safety hazard. The ERP shall address emergency situations including, but not limited to, the following items:

Stormwater System or any Environmental Services
Equipment failures
Chemical spills

Additionally, the ERP shall address the following:

Responsible parties to be notified
Personnel, equipment, and emergency repair contractors on call and who will respond to each type of emergency
Procedures for notifying the District, District Manager, the community, and other utility companies affected by the listed emergency
The Contractor shall prepare, maintain and distribute an ERP manual detailing the procedures and responsibilities for the situations listed above and any other situation deemed appropriate by the District.
The ERP manual shall be included in the operations section of the Administrative/Maintenance/Operations program.

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Attachment A - Scope of Services
The general items to be completed within the service area, as described in Attachment B is as follows:

Cutting, pulling and/or herbicidal treatment of all invasive, nuisance and exotic plants & trees in all wetlands, littoral shelves, lake bodies and upland preserve areas.

Assist, coordinate and participate in meetings onsite with Owner, engineers, consultants and SFWMD as required to maintain compliance and to coordinate the work.

Debris and trash removal from all work areas.

Hand pull weeds in planted areas between the golf course and wetland areas.

Trimming and vegetation removal on all flyaways on the golf course.

The work includes cutting at stumps and treatment of tree stumps to prevent re-growth.

Removal of plants and trees includes all vegetation listed on Florida Exotic Pest Plant Species list in accordance with State and local guidelines. Further the work shall include removal of nuisance vegetation as allowed by the agencies having jurisdiction (AHJ).

The work shall include removal of all exotic plant materials from the project site.

The work includes removal of exotics and nuisance vegetation in the lake bodies to provide open water areas as needed for the SFWMD compliance.

Herbicide application must be conducted under the supervision of a licensed applicator (Dept of Agriculture, Aquatic Pest Control), contractor to provide copies of current license to Owner prior to the start of work. Contractor shall maintain all AHJ mandatory required licenses for the work and provide notices to AHJ as required during the progress of work.

Contractor is encouraged to use Greener methods for treating algae in the lakes as an alternative to herbicides.

Contractor must provide daily reports for the work no later than the following day for each day worked onsite. These reports will be precedent to payment. Reports shall include a site plan indicating areas treated with pesticides and areas where hand removal took place on each day of work.

All lakes will be treated at least monthly for unwanted shoreline and floating vegetation.

Contractor will treat all areas on the entire property at least once monthly. A more specific plan for the individual needs of each area is described below. The Contractor is responsible for having the Field Manager meet with the District Representative twice monthly to review the property and identify any areas not being maintained in accordance with the Scope of Services.

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Task 1- Wetland Preserve/Mitigation Area Maintenance-Tesoro West

This task will include the cutting and removal of exotic and nuisance vegetation from all wetland preserves, littoral shelves, and lake bodies within the limits of the US Army Corps of Engineers (ACOE) permit and all modifications and the South Florida Water Management District (SFWMD) permit previously issued for the parcel west of Via Tesoro Boulevard within the limits of the Tesoro West project area. Due to the native vegetation on the site and in accordance with the conditions of the Agency permits, hand cutting of vegetation will occur where possible and Contractor will apply an appropriate herbicide to the cut stumps to inhibit further growth. Clearing and maintenance activities will be conducted to the satisfaction of the Client and in accordance with the currently approved mitigation and monitoring plan for the parcel (as approved by the US Army Corps of Engineers and the South Florida Water Management District). Removal includes all plants listed on the Florida Exotic Pest Plant Species list in accordance with State and local guidelines. Contractor will remove all cut vegetation from the preserve area and dispose of within the proposed clearing area for the development. Contractor will apply herbicide to lake areas when necessary and monitor open water habitats. Contractor will also remove any and all trash and debris from the mitigation areas to the satisfaction of the Client. Herbicide application will be conducted under the supervision of a licensed applicator. This task specifically excludes additional planting as well as the body of water known locally as the A2 pond. See Map of Service Areas for more definition of Area.

Task 2 - SupplementalPlantings -Tesoro West

This task will include the purchase and installation of native plant materials for use inside wetland and surface water areas throughout the Tesoro West side development. This task specifically excludes plantings within upland preserves or in areas currently maintained by the District's Upland Buffer Maintenance Contractor or the Tesoro Club. As part of the ongoing construction and the ACOE and all modifications and SFWMD compliance reporting, areas may be identified as areas required for wetland planting in accordance with the permit schedule and conditions. The costs associated with the planting budget include purchase and installation of plant materials. See Map of Service Areas for more definition of Area. These services will be performed as an additional service and the scope and price will be determined at the time the work is required.

Task 3 - East Side Wetland Preserve/Mitigation Area Maintenance

This task will include the cutting and removal of exotic and nuisance vegetation from all wetland preserves, littoral shelves, and lake bodies within the limits of the US Army Corps of Engineers permit and all modifications and the SFWMD permit previously issued for the parcel east of Via Tesoro Boulevard within the limits of the Tesoro East project area. Due to the native vegetation on the site and in accordance with the conditions of the Agency permits, hand cutting of vegetation will occur where possible and Contractor will apply an appropriate herbicide to the cut stumps to inhibit further growth. Clearing and maintenance activities will be conducted to the satisfaction of the Client and in accordance with the currently approved mitigation and monitoring plan for the parcel (as approved by the US Army Corps of Engineers and the South Florida Water Management District). Removal includes all plants listed on the Florida Exotic Pest Plant Species list in accordance with State and local guidelines. Contractor will remove all cut vegetation from the preserve area and dispose of within the proposed clearing area for the development. Contractor will apply herbicide to lake areas when necessary and monitor open water habitats. Contractor will also remove any and all trash and debris from the mitigation areas to the satisfaction of the Client.

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Herbicide application will be conducted under the supervision of a licensed applicator. This task excludes additional planting where needed in accordance with the approved State and Federal permits associated with this parcel. See Map of Service Area for more definition of Area.

Task 4- Stormwater Management Svstem Infrastructure-Tesoro East and West

The successful Proposer shall operate, maintain, and repair all elements of the stormwater management system including but not limited to pumps for water flow, water features and all water quality features in conformance with the ACOE permits including all modifications and SFWMD permits for the areas within the contract. The operation of the stormwater system shall include record keeping and reporting as required by the applicable permits and the provision of records upon request.

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Exhibit B - Map of Service Areas

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S ECTION 8

AGREEMENT BETWEEN WELLINGTON PRO LAWN CARE AND THE TESORO COMMUNITY DEVELOPMENT DISTRICT
REGARDING THE PROVISION OF WETLANDS BOUNDARY AND LAKE BANKS LANDSCAPE MAINTENACE SERVICES

This Agreement is made and entered into this 1st day of January, 2019 by and between The Tesoro Community Development District, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes, being situated in St. Lucie County, Florida, and having offices at 135 West Central Blvd., Suite 320, Orlando, Florida 32801 ("the District"), and

Wellington Pro Lawn Care, having offices at 3132 Fortune Way, Suite D9, Wellington, Florida 33414 ("the Contractor") and mailing address of P.O. Box 1134, Loxahatchee, Florida 33470.

RECITALS

WHEREAS, the District was established by a rule of the Florida Land and Water Adjudicatory Commission for the purpose of providing stormwater management and wetlands mitigation maintenance services to all residences and commercial properties throughout the District; and

WHEREAS, the District has a need to retain an independent contractor to provide wetlands boundary and lake banks landscape services for certain lands within the District; and

WEHERAS, the District finds it in the best interest of the District to engage the services of the Contractor.

NOW, THEREFORE, in consideration of the recitals, agreements, and mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties agree as follows:

Section 1. Recitals. The recitals so stated above are true and correct  and  by  this reference are incorporated into and form a material part of this Agreement.

Section 2. Duties. The duties, obligations, and responsibilities of the Contractor are described in Exhibit "A" attached hereto. The location of the services is identified on Exhibit "B" attached hereto. Contractor shall be solely responsible for the means, manner and methods by which its duties, obligations and responsibilities are met to the satisfaction of the District. Contractor shall report to the District Manager or his designee. Additional duties may be specified by the District Manager or his designee.

Section 3. Compensation. District agrees to compensate the Contractor in accordance with the following schedule:

Monthly Treatment Costs -	$7.875.00	($94,500.00 Annually) Contractor shall invoice the District for services performed monthly.

Any additional compensation for additional duties shall be paid only upon the written authorization of the District Manager or his designee.

Section 4. Independent Contractor. The District and Contractor agree and acknowledge that Contractor shall serve as an independent contractor of the District.

Section 5. Term. This Agreement shall commence on January  1,  2019  and  shall continue until September 30, 2019 unless terminated in accordance with Section 11 below. This contract may be extended by up to two (2) additional one (1) year terms upon mutual agreement in writing by both the Contractor and District. This agreement may be extended on a month to month basis upon agreement of the parties hereto in writing and subject to appropriation of funds by the District's Board of Supervisors.

Section 6.	Insurance.

The Contractor shall maintain throughout the term of this Agreement the following insurance

Worker's Compensation Insurance in accordance with the laws of the State of Florida.

Commercial General Liability Insurance covering the Contractor's legal liability for bodily injuries, with limits of not less than $2,000,000 (two million dollars) combined single limit bodily injury and property damage liability with the District named as an additional insured, and covering at least the following hazards:

Independent   Contractors   Coverage   for   bodily   injury	and property damage in connection with subcontractors' operation;

The District shall be named as additional insured

Employer's Liability Coverage with limits of at least $1,000,000 (one million dollars) per accident or disease.

Professional Liability Insurance with limits of $1,000,000 (one million dollars).

Automobile Liability Insurance for bodily injuries in limits of not less than
$2,000,000 (two million dollars) combined single limit bodily injury and for property damage, provided coverage for any accident arising out of or resulting from the operation, maintenance, or use by the Contractor of any owned, non-owned, or hired automobiles, trailers, or other equipment required to be licensed.

Section 7. Indemnification. Contractor agrees to indemnify  and hold  harmless  and defend the District and its officers, agents and employees from any and all liability, claims, actions, suits or demands by any person, corporation or other entity for injuries, death, property damage or

of any nature, arising out of, or in connection with, the work to be performed by Contractor, including litigation or any appellate proceedings with respect thereto. Contractor agrees that nothing herein shall constitute or be construed as a waiver of the District's limitations on liability contained in Section 768.28, Florida Statutes, or other statute.

Section 8. Agreement. This instrument shall constitute the final and complete expression of this Agreement between the District and the Contractor relating to the subject matter of this Agreement. This Agreement effectively cancels the First Extension to the Wetlands Boundary and Lake Banks Landscape Maintenance Agreement (dated October 1, 2018).

Section 9. Amendments.  Amendments to and waivers of the provisions contained in this Agreement may be made by an instrument in writing which is executed by both the District and the Contractor.

Section 10.  Authorization. The execution ofthis Agreement had been duly authorized by the appropriate body or official of the District and the Contractor, both the District and the Contractor have complied with all the requirements oflaw, and both the District and the Contractor have full power and authority to comply with the terms and provisions of this instrument.

Section 11. Cancellation. The District shall have the right to cancel this Agreement at anytime upon written notice. Contractor shall have the right to cancel this agreement upon thirty
days written notice to the District stating a failure of the District to perform in accordance with the terms of this Agreement.

Section 12. Enforcement of Agreement. In the event that either the District or the Contractor is required to enforce this Agreement by court proceedings or otherwise, then the prevailing party shall be entitled to recover all fees and costs incurred, including reasonable attorney's fees and costs for trial, alternative dispute resolution, or appellate proceedings.

Section 13. Notices. All notices, requests, consents, and other communications under this Agreement ("Notices") shall be in writing and shall be hand delivered, mailed by First Class Mail, postage prepaid, or sent by overnight delivery service, to the Parties, as follows:

Ifto Contractor: Wellington Pro Lawn Care
P.O. Box 1134 Loxahatchee, Florida 33470 Attn: Geoffrey Phillips

If to District:

With a copy to:

Tesoro Community Development District 135 West Central Blvd., Suite 320
Orlando, Florida 32801 Attn: District Manager

Lewis, Longman & Walker PA 515 N. Flagler Drive, Suite 1500 West Palm Beach, Florida 33401 Attention: William G. Capko

Except as otherwise provided in this Agreement. any Notices shall be deemed received onl upon actual delivery at the address set forth above. Notices delivered after 5:00 p.m. (at the place of delivery) or a non-business dav. shall be deemed received on the next business day. If at anv time for giving Notice contained in this Agreement would otherwise expire on a non-business day. the Notice period shall be extended to the next succeeding business day. SaturdaYs. Sundays. and legal holidays recognized by the United States government shall not be regarded as business days. Counsel for the District and counsel for the Contractor mav deliver Notices on behalf of the District and the Contractor. Any Party or other person to whom Notices are to be sent or copied ma notify the other Parties and addressees of any change in name or address to which Notices shall be sent bv providing the same on five (5) davs written notice to the Parties and addressees set forth in this Agreement.

Section 14. Assignment. Neither the District nor the Contractor  may  assign  this Agreement or any monies to become due under this Agreement  without the  prior written  approval of the other, and such approval shall not be unreasonably withheld.

Section 15. Controlling Law. This Agreement and the provisions contained in this Agreement shall be construed, interpreted, and controlled according to the laws of the State of Florida.

Section 16. Severability. The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of the remaining portions of this Agreement, or any part of this Agreement not held to be invalid or unenforceable.

Section 17. Headings for Convenience Only. The descriptive headings in this Agreement are for convenience only and shall neither control nor affect the meaning or construction on any of the provisions of this Agreement.

Section 18. Counterparts. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original; however, all such counterparts together shall constitute, but one and the same instrument.

Section 19.   Public Records.   Contractor understands and agrees that all documents  of any kind provided to the District in connection with this Agreement may be public records, and, accordingly, Contractor agrees to comply with all applicable provisions of Florida law in handling such records, including but not limited to Section 119.0701, Florida Statutes. Contractor acknowledges that the designated public records custodian for the District is George Flint ("Public Records Custodian"). Among other requirements and to the extent applicable by law, the Contractor shall I) keep and maintain public records required by the District to perform the service;
2) upon request by the Public Records Custodian, provide the District with the requested public records or allow the records to be inspected or copied within a reasonable time period at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes; 3) ensure that public records which are exempt or confidential, and exempt from public records disclosure requirements, are not disclosed except as authorized by law for the duration of the contract term and following the contract term if the Contractor does not transfer the records to the Public Records Custodian of the District; and 4) upon completion of the contract, transfer to the District, at no cost, all public records in Contractor's possession or, alternatively, keep, maintain and meet all applicable requirements for retaining public records pursuant to Florida laws.  When such public records are

transferred by the Contractor, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the District in a format that is compatible with Microsoft Word or Adobe PDF formats.

IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT (407) 841-5524, GFLINT@GMSCFL.COM, OR AT 135 W. CENTRAL BLVD., SUITE 320, ORLANDO, FLORIDA 32801.

[SIGNATURES ON FOLLOWING PAGE]

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the day and year first written above.

ATTEST:

SecretaryIAssistant Secretary

-

ATTEST:	WELLINGTON PRO LAWN CARE

Exhibit A - Overall Scope of Services - Definition

G ENERAL CONTRACTOR REOUIREME NTS AND PROCED URES
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:

Opera tion Procedures
The Contractor shall perform the basic services outlined within the Attachment A­ Scope of Services between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday unless specified otherwise or directed by the District. The Contractor may submit a request for additional operation time, in response to poor weather conditions, to be reviewed for approval by the District. The District will designate where Contractor's crew will take breaks, lunches, and use restroom facilities. Employee personnel vehicles will be parked only in areas designated by the District.

Ke 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 subject to approval by the District. Where applicable, the Contractor shall require certifications, training, etc. be secured and updated for all employees for the maintenance and technical services performed under this contract.

Contractor shall provide one (1) Manager who is knowledgeable of the Contractor's daily activities when performed at the site. The Manager shall serve as the point of contact between the District, Contractor and any other entity and shall be responsible for coordinating all scheduled services with the District and for the timely scheduling of scheduled or unscheduled environmental services.

Contractor shall provide at least one (1) full-time onsite Field Manager to observe and monitor the daily or routine activities of landscape "clean-up" and maintenance services on wetlands lake banks covered in the contract.

Contractor shall have key personnel office location within St. Lucie County and/or no more than twenty (20) mile from site.

Personnel Dress Code

The Contractor shall ensure that employees working on the Project shall wear uniforms or professional attire at all times. Personnel will wear clean uniform shirts of consistent design and color.

Personnel Conduct

The Contractor shall enforce strict discipline and good order among its employees on the Project site. The Contractor shall ensure that its employees who communicate and interact with the community and any other customer/party associated with the Project are knowledgeable of the Project and the Services the Contractor is performing.

Safety Program

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

The District shall not provide a facility on the Project Site for the Contractor as part of this Scope of Services. The Contractor shall, upon receipt of written approval from the District, be allowed to temporarily store, if necessary, its materials and equipment on site at a District-selected location. The Contractor shall be responsible for security of its stored materials and equipment, as well as any connections for utilities to the storage site.

Subcontractors

If the Contractor, as a part of the performance of its Services, elects to employ Subcontractors, the following shall apply:

The Contractor shall be responsible for, and coordinate with, the services of any of its Subcontractors.
The Contractor shall require all of its Subcontractors, as a condition of employment, to agree to the applicable terms and conditions identified in the Contract Documents.
Current certificates of insurance will be provided.

Consultants

If the Contractor, as a part of the performance of its Services, elects to employ consultants, the following shall apply:

The Contractor shall be responsible for, and coordinate with, the services of any of its consultants.
The Contractor shall require all consultants, as a condition of employment, to agree to the applicable terms and conditions identified in the Contract Documents.
Current certificates of insurance will be provided.

Document Control and Data Management

Document Control

The Contractor shall keep accurate records of 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 information available to or from this Contractor. The "log" shall outline document titles and dates, the originator, received dates, and to/from information. This "log" shall be updated monthly and submitted to the Owner when requested.

Data Maintenance

The Contractor shall, after review with the Owner, establish a systematic process for the insertion of revised sets and the integration of that data into the overall Project plan after verification for compatibility and consistency of the information received with existing information.

Data Dispersal

Should the Contractor distribute data to others, the Contractor shall document the distribution of data by completing a letter of transmittal. The Contractor shall propose a format for, and keep a log of, all data transfers for updates to the District. 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 request for transfer
Name of data being transferred
Type(s) of data being transferred
Date of transfer
Purpose of transfer or use of information
Further action necessary

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 reported to the District verbally and in writing, upon discovery.

Ownership of Data

It is to be understood that all data transmitted and material/equipment purchased under this contract by the Contractor or provided to the Contractor, either by the District or third parties, are the sole properties of the District. The Contractor shall have temporary charge of the data while performing contracted services for the Project. All data shall be returned to the District at the conclusion of the Project, after which, no copies of the data may be kept by the Contractor without the express written permission of the District.

The District shall retain the right to require that the Contractor transfer all Project data, material, or equipment to the District immediately upon fourteen (14) days' written notice, for any reason. The same procedures shall apply should it become necessary for the Contractor to voluntarily return all Project data to the District.

Quality Control

The District will have the right, at any stage of the operation, to reject any or all of the Contractor's services and materials, which in the District's opinion does not meet the requirements of these specifications. The Contractor shall replace or reimburse the District for the cost of replacement or repairs, at the Contractor's own expense, those wetlands lake banks vegetation and plantings that are damaged or lost due to insects, disease, fungus, and/or over watering or insufficient watering from irrigation system, if applicable, as directed by the District. All replacements shall meet the current size, specifications, and quality of surrounding related material. Any other CDD items damaged due to the Contractor's negligence shall be repaired or replaced as directed by the District at the Contractor's own expense. All repairs and replacements shall also occur within two (2) weeks of notice from the District.

If requested by the District, the Contractor will make weekly walk-through reviews of the entire site related to visual observations and the Contractor's performance. The Contractor will make repairs and adjustments, as directed by the District, during these site visits. A monthly Maintenance Report shall be generated by the Contractor and submitted to the District outlining potential problem areas and the Contractor's proposed corrective action, upcoming work approval request, coordination, scheduling, etc. The Contractor shall provide the District with a weekly updated maintenance log addressing all activities occurring in that week.

COORDINATION

The Contractor shall provide coordination with the District for all items associated with the requirements of this Agreement.

General Coordination

The Contractor shall meet with the District and its separate consultants as appropriate, on a monthly basis. Those meetings shall serve as forum for the exchange of information, identification of pertinent and critical issues, determination of an action plan and schedule for resolving those issues, review of schedule and budget status, and discussion of other landscape, irrigation and maintenance related issues deemed appropriate by the District of the Contractor. The Contractor shall prepare the agenda for those meetings and submit it to the District 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'' basis. The District shall provide the meeting location.

In addition, the Contractor shall provide a representative to attend the monthly meeting of the Board of Supervisors if requested to do so by the District. This representative shall be knowledgeable of this Project Scope and Scope of Services and shall be able to respond to any questions the Board may have as to the day-to­ day activities at the Project site pursuant to this Agreement.

Coordination of the construction, operation, and general maintenance at the Project is considered one of the many critical activities of the Contractor. Further, coordination of those efforts with all parties involved, or those with the need to know are crucial to the success of the Project. While all parties involved with the Project cannot be identified at this time, a partial list is provided as follows:

CDD District Manager and/or CDD District Field Manager
CDD District Engineer
CDD District Representative
CDD Environmental Services Provider
St. Lucie County and its various departments
Florida Turnpike Authority
Florida Department of Transportation
SFWMD
US Army Corps of Engineers
Adjacent property owners, as directed by the District
Tesoro Club operating staff and Golf Course maintenance staff

Contractor's District Manager and Project Manager

Contractor shall designate an on-site 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 District a_pd the Contractor. This individual shall maintain at all times a means of being contacted by the Owner (pager, cellular phone, or radio) and shall respond to such calls within twenty (20) minutes of contact. This individual shall be responsible for maintaining the Contractor's schedule of activities and notifying the District of this daily schedule for quality control of the Contractor's service and for arranging and supervising unscheduled service requests by District. Contractor will also provide District with a contact list for use in case of emergencies and will have personnel on call after regular business hours to respond accordingly.

Contractor's Vehicles and Equipment

Contractor service vehicles must be well maintained and clean in appearance. Vehicles must be properly licensed and tagged, and operated only by licensed personnel. All Contractors vehicles must operate in a safe and courteous manner while on site. Pedestrians have the right-of-way, and service vehicles are expected to yield. All trailers, storage facilities, and maintenance equipment must be in good condition and present a clean and neat appearance. Tools and equipment must be properly suited for their purpose and used in a safe manner utilizing the appropriate safety gear when necessary.

Contractor's Additional Provisions

Property inspections will be conducted weekly by an authorized Contractor representative. Contractor will document and correct any landscape maintenance deficiencies that are identified within one week, or provide a status update for work requiring a longer period to accomplish. Weekly inspections will be conducted in conjunction with a management representative of the District. A monthly report will be provided to the client summarizing activities completed, in progress and planned. Contractor will be proactive in identifying any landscape site conditions that affect long-term plant health and vigor and will advise District, accordingly. While working within the boundaries of Tesoro Community, Contractor shall not display its company name and/or logo. Contractor will be required to have a "Tesoro Landscape Services" magnetic sign located on each side of its vehicle (driver and front passenger doors) while working within the limits of the Tesoro community.

SCHEDULED OPERATIONS AND MAINTENANCE

The Contractor shall meet all requirements associated with landscape "clean-up" and maintenance services including trimming of vegetation, weed control, debris removal and trash removal, as required in this Agreement and defined in Attachment A-Scope of Services. The contractor shall make a complete site inspection of Tesoro, specifically the areas of Districts maintenance. Attachment A - Scope of Services includes plan identifying the general limits of Districts maintenance by area. All landscaping of wetlands lake banks (from lake edge to top of lake scope as defined in Attachment A-Scope of

Services) within the Districts areas shall be maintained by this Contractor in accordance with the following requirements:

UNSCHEDULED MAINTENANCE AND REPAIRS

The Contractor shall be equipped and organized to provide any unscheduled maintenance and repairs required and any emergency maintenance and repairs as provide in the above noted Performance Specifications on an immediate basis.

ADMINISTRATl ON/MAINTENANCE/OPERATIONS PROGRAM

The Contractor shall develop policies and procedures and implement an Administration, Operation, and Maintenance Program. That program shall include, but not be limited to, the following:

General

This program shall be a comprehensive narrative and, where applicable, be a graphic/diagrammatic explanation of policies and procedures, which shall govern the Contractor's Services provided under this Agreement as generally outlined in Attachment A- Scope of Services. The program document shall contain key information relative to the major components described below.
The program document shall be presented in a three-ring binder using standard 8½ x 11 inch pages, single-spaced for text, graphics, and/or diagrams, and with, if necessary, 11 x 17 inch pages for diagrams and/or graphics that fold out if necessary. The document shall include as minimum, a table of contents, section dividers, numbered pages, issuance date on each page, and appendices as required. Each copy shall be numbered and a log shall be kept by the Contractor of document holders (refer to Section 2.9.3, Data dispersal).

The program document shall be kept up-to-date at all times by the Contractor. Revisions to the document shall be indicated by footnote on the revised pages. Revisions shall be distributed by the Contractor to all document holders.

The Contractor shall prepare draft copies of the document for review and comment by the District within thirty (30) calendar days of the notice to proceed with the Services. The Contractor shall anticipate at least two (2) more additional reviews by the District prior to issuance of the final document. All District comments shall be incorporated into the document. The Contractor shall be responsible for preparing and submitting the following number of copies of the program document to the District.

First draft	Six (6) bound copies, one (1) unbound copy

Second draft
Third draft
Final document

Six (6) bound copies, one (1) unbound copy Six (6) bound copies, one (1) unbound copy
Ten (10) bound copies, two (2) digital copies on 3½ diskettes

Administration

The administration section of the program document shall, at a minimum, address those functions that are the responsibility of the Contractor related to all administrative matters generally described in Attachment A- Scope of Services and as outlined below.

Organization charts for administrative management functions shall include key personnel names, job titles, and phone numbers.

Policies and procedures related to the Contractor's program for communications with the community relative to general maintenance operations, customer services, and irrigation user issues.

Policies and procedures related to the coordination and communications with developers, builders, and others who are a part of the continuing development and construction of the community.

Personnel policies and procedures related to the Contractor's personnel performing services on the site.

Operations

The operations section of the program document shall, at a minimum, address those functions that are the responsibility of the Contractor related to all operations/customer service matters generally described in Attachment A­ Scope of Services and as outlined below.

Organization charts for operations and customer service-related functions shall include key personnel names, job titles, and phone numbers.

Policies and procedures related to emergency situations including 24-hour notification, emergency phone numbers, Contractor mobilization and response time (refer to Section 6.2, Emergency Response Program for further details), etc.
Policies and procedures related to the Contractor's safety program.

Maintenance

The maintenance section of the program document shall, at a minimum, address those functions that are the responsibility of the Contractor related to all wetlands boundary landscape maintenance matters generally described in Attachment A- Scope of Services and as outlined below. The Administration,

Operation and Maintenance Program shall be submitted by the Contractor for review and approval by the District Manager/District Field Manager. The Contractor shall modify the program as required by the District Manager/District Field Manager.

RESPONSE TIME

The Contractor shall provide services and repairs within the amount of time indicated in this Agreement. The following is general response time information and requirements for the Emergency Response Program to be developed, implemented, and maintained by the Contractor.

General

The Contractor shall, on a timely and efficient basis, respond to any and all requests and perform all repairs, inspections, and observations, etc. stipulated in the Project Manual. The Contractor shall provide supervisory, operating and maintenance personnel as required who shall be available on call 24 hours per day, seven (7) days per week to respond to and correct any problems with any of the elements covered by this Agreement.

Response time, unless otherwise directed by the District, required by the Contractor for various maintenance activities is as follows:

Standard maintenance activity adjustments: varies, as directed by Owner.
Standard repairs: one week
Emergency repairs: three (3) hours
Unscheduled maintenance request: as needed, as soon as four (4) hours
Plant material replacement: two (2) weeks

Should the Contractor fail to respond to a request for any services addressed in this Project Scope within the required allotted time, the District shall, at the Contractor's sole expense, provide the requested services.

Emergency Response Program

The Contractor shall develop, implement, and maintain an Emergency Response Program (ERP) for emergency work that must proceed immediately to avoid property damage or result in a public health or safety hazard. The ERP shall address emergency situations including, but not limited to, the following items:

Equipment failures
Chemical spills

Additionally, the ERP shall address the following:

Responsible parties to be notified
Personnel, equipment, and emergency repair contractors on call and who will respond to each type of emergency
Procedures for notifying the District, District Manager, the community, and other utility companies affected by the listed emergency
The Contractor shall prepare, maintain and distribute an ERP manual detailing the procedures and responsibilities for the situations listed above and any other situation deemed appropriate by the District.
The ERP manual shall be included in the operations section of the Administrative/Maintenance/Operations program.

Attachment A- Scope of Services

Wetlands Boundary and Lake Banks Landscape Service Area Requirements

Scope of Services included under this contract will be the following activities within the areas described in Exhibit B - Map of Service Levels:

Trimming of Vegetation (Entire Service Area To be Completed 1 time per month)
All vegetation is to be trimmed neatly on wetland banks from the lake edge to the top of the lake slope
Weed Control (Entire Service Area To be Completed 1 time per month)
Mechanical Weed Control is to be used on all service areas. The use of Herbicide treatment is permitted if it is deemed necessary by the Contractor and District Representative. All products to be applied using manufacturer's instructions and all state and federal regulations.
Debris Removal/Trash Clean Up
All debris and trash found in the service areas is to be removed and disposed of by Contractor.

The contractor is to provide a crew to work within the Tesoro Community, providing landscape "clean-up" and maintenance services on wetlands lake banks (from lake edge to top oflake slope; See attached Map of Service Areas for service area schedule). The Contractor may adjust this schedule based upon specific District needs. This crew will be equipped with a four wheel drive utility cart including all landscape hand-tools and two-cycle engine equipment required for general work. The Contractor is responsible for having the Field Manager meet with the District Representative twice monthly to review the property and identify any areas not being maintained in accordance with the Scope of Services.

This regular work schedule will be during daylight hours Monday through Friday, for a total of forty (40) hours per week. In the event that the District requires the services of this crew for more than 40 hours in any given week, Contractor will offer these services on an overtime basis. Overtime will have to be authorized by a representative of the District.

See Map of Service Areas for more definition of Areas.

Exhibit B- Map of Service Areas

 	

]

S ECTION VI

TESORO
COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

TESORO DEVELOPMENT DISTRICT ST. LUCIE 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 Fund
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

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 GOVERNMENT AUDITING STANDARDS

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

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Grau& Associates
CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT

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

To the Board of Supervisors
Tesoro Community Development District St. Lucie County, Florida

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the major fund of Tesoro Community Development District, St. Lucie County, Florida ("District") as of and for the fiscal year ended September 30, 2018, 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 accounting 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 are 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 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. 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 procedures 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 internal 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 not 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 the major fund of the District as of September 30, 2018, 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 Matters

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 of the 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 May 17, 2019, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, 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 the effectiveness of the District's 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 May 17, 2019, on our consideration of the District's compliance with the requirements of Section 218.415, Florida Statutes, as required by Rule 10.556(10) 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 .
.%;>,4qJ-
May 17, 2019

2

MANAGEMENT'S DISCUSSION AND ANALYSIS

Our discussion and analysis of Tesoro Community Development District, St. Lucie County, Florida ("Districf) provides a narrative overview of the District's financial activities for the fiscal year ended September 30, 2018. 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 $542,800.

The change in the District's total net position in comparison with the prior fiscal year was ($20,309), a decrease. The key components of the District's net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2018, the District's governmental fund reported an ending fund balance of
$542,800, an increase of $4,202 in comparison with the prior fiscal year. The total fund balance is non-spendable for prepaid items, assigned to subsequent year's expenditures, and the remainder is unassigned fund balance which is available for spending at the District's discretion.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis is 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 result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment and stormwater fee revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance functions.

Fund Financial Statements

A fund is a grouping 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

OVERVIEW 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 resources, 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 requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental 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 revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains one governmental fund for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, which is considered a major fund.

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.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

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 net position are reflected in the following table:

NET POSITION SEPlEMBER 30,
	   2018	2017		
Current and other assets	$        558,330    $	585,281	
Total assets	     558,330	585,281	
Current liabilities	 	15,530	22,172	
Total liabilities	 	15,530	22,172	
Net position
Unrestricted			 542,800	563,109 Total net position	 $		542,800    $	563,109 

The balance of unrestricted net position may be used to meet the District's obligations.

The District's net position decreased during the most recent fiscal year. The majority of the decrease represents the extent to which the costs of operations exceeded ongoing program revenues.

4

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

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

CHANGES IN NET POSITION
FOR lHE FISCAL YEAR ENDED SEPTEMBER 30,
    2018	2017	
Re1Jenu es:
Program rewnues
Charges for sen.1ces	$	311,312    $	303,009
General rewnues	 	8,251	5,063 
Total revenues	 	319,563	308,072 Expenses:
General gowmment	79,133	51,946
Maintenance and operations	260,739	263,951

Total expenses	339,872	315,897

Change in net position	!20,309)	!7,825!

Net position - beginning	563,109	570,934

Net position - ending	$ 	542,800    $	563,109 

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2018 was $339,872. The majority of the costs of the District's activities were paid by program revenues. Program revenues, comprised primarily of assessments and stormwater fees, increased slightly during the fiscal year. The increase in expenses is due to a delinquent receivable being written off during the current fiscal year.

GENERAL BUDGETING 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 aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2018.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS 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 Tesoro Community Development District's Finance Department at 135 West Central Boulevard, Suite 320, Orlando, Florida, 32801.

5

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA STATEMENT OF NET POSITION
SEPTEMBER 30, 2018

	Governmental
  Activities		
ASSETS		
Cash	$	110,189	
Investments	435,712	
Assessments receivable	397	
Stormwater fees receivable	3,310	
Prepaids items	 	8,722	
Total assets	 	558,330	
LIABILITIES		
Accounts payable	15,530	
Total liabilities	 	15,530	
NET POSITION		
Unrestricted	 	542,800	
Total net position	   $	542,800 	

See notes to the financial statements

6

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

Net (Expense) Revenue and
Program	Changes in Net
 	Revenues	Position	 Charges
for	Governmental
Functions/Proorams	 Expenses	 	Services	Activities	 Primary government:
Governmental activities:

General government
-Maintenance and operations Total governmental activities

$	79,133	$	79,133	$
260,739	232,179	(28,560}

 	339,872	311,312		(28,560}

General revenues:
Unrestricted investment earnings		8,251 Total general revenues	 	8,251 

Change in net position	(20,309)	
Net position - beginning	 	563,109 	
Net position - ending	   $	542,800 	

See notes to the financial statements

7

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2018

Total Major Fund	Governmental

ASSETS		
Cash	$	110,189	$	110,189	
Investments	435,712	435,712	
Assessments receivable	397	397	
Stormwater fees receivable	3,310	3,310	
Prepaid items	8,722	8,722	

 	General	Funds	

Total assets	 $	558,330	$	558,330 LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable	 $	15,530	$	15,530
Total liabilities	 	15,530	15,530

Fund balances:
Nonspendable:
Prepaid items	8,722	8,722
Assigned to:
Subsequent year's expenditures	111,729	111,729	
Unassigned	 	422,349	422,349	
Total fund balances	 	542,800	542,800	

Total liabilities, deferred inflows of resources and fund
balances	$	558,330	$	558,330

See notes to the financial statements

8

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

REVENUES

Total Major Fund	Governmental
 	General	Funds	

Assessments StorlTI\/Vater fees

$	70,261	$
241,996

70,261
241,996

Interest income Total revenues

 	8,251	8,251 
 	320,508	320,508 

EXPENDITIJRES
Current:
General government

55,567

55,567

Maintenance and operations Total expenditures

 	260,739	260,739 
 	316,306	316,306 

Excess (deficiency) of revenues over (under) expenditures

4,202

4,202

Fund balances - beginning Fund balances - ending

 	538,598	538,598 

$	542,800	$	542,800

See notes to the financial statements

9

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
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, 2018

Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Certain uncollectible amounts relating to prior year receivables are considered expenses on the statement of activities, but do not affect the governmental fund financial statements.
Certain revenues were unavailable for the governmental fund financial statements in the prior fiscal year. In the current fiscal year, these revenues were recorded in the governmental fund financial statements.
Change in net position of governmental activities

$	4,202

(23,566)

(945)
$	(20,309)

See notes to the financial statements

10

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 - NATURE OF ORGANIZATION AND REPORTING ENTITY

Tesoro Community Development District ("District") was created by rule 42XX-1.001 of the Florida Land and Water Adjudicatory Commission effective January 10, 2005, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, 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 purpose of financing and managing the acquisition, construction, maintenance and operation of a portion of the 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 the owners of the property within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. At September 30, 2018, three of the Board members are affiliated with West Coast Investors ("Developer")

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 ("GASB") Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which 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.

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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 of accounting. 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 requirements 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 of accounting. Revenues are 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. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments
Assessments are non-ad valorem assessments on benefited property within the District. Operating and maintenance assessments are based upon the 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 utilize the uniform method of collection under Florida Statutes. Direct collected assessments are due as determined by the annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by the County Tax Collector on November 1 and are due on or before March 31 of each year. Property owners may prepay a portion or all of the debt service assessments on their property subject 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 are 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 fund:

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 for in another fund.

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 first for qualifying expenditures, then unrestricted resources as they are needed.

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.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets. Liabilities and Net Position or Equity (Continued)

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
218.415 (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;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.

The State Board of Administration'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 Investment Company Act of 1940, 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. Investments 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 prepaid items in both government-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. Major outlays for capital assets and improvements are capitalized as projects are constructed.

In the governmental fund financial 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.

The District did not own any capital assets at September 30, 2018.

Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

13

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

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 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 are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

As of September 30, 2018, there are no long-term obligations.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized .,:iS an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

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.

The District can establish limitations 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 assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year's appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

The District first uses committed 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.

14

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Fund Equity/Net Position (Continued)
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 infrastructure 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 liabilities, 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 required 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 procedures in establishing the budgetary data reflected in the financial statements.

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain 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 are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the fiscal year.

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.

15

NOTE 4 - DEPOSITS AND INVESTMENTS (Continued)

Investments
The District's investments were held as follows at September 30, 2018:

Local Gowmment Surplus Trust Fund (FL

   Amortized Cost	Credit Risk	Maturities	
Weighted awrage of fund

PRIME)
Total inwstments

   $	435,712	S&PAAAm
$	435,712

portfolio: 33 days

Credit risk - For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment 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 measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:
Level 1: Investments whose values are 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: Investments 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 measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.

Money market investments that have a maturity at the time of purchase 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 measured at amortized cost, the pool's participants should also measure 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.

External Investment Pool- With regard to redemption gates, Chapter 218.409(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 responsib ility. 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 by the 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."

16

NOTE 4 - DEPOSITS AND INVESTMENTS (Continued)

Investments (Continued}
With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made.

As of September 30, 2018, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100% of their account value.

NOTE 5 - MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial 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 6 - 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 third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years.

NOTE 7 - INTERLOCAL AGREEMENT

In April 2006, the District entered into an agreement with the City of Port St. Lucie ("City") whereby the District will be responsible for the provision of stormwater maintenance services for a certain area. Further, the City collects fees for stormwater utility fees for that area and agrees to pay to the District 75% of the fees collected. Such payments began to accrue October 1, 2006 with certain payments annually and certain payments monthly as outlined in the agreement. The agreement will run for perpetuity subject to termination by either party. In the current fiscal year, revenues connected to this agreement totaled $241,996.

The stormwater system infrastructure was constructed by the predecessor Developer and was conveyed to the City. The District will maintain the stormwater system through interlocal agreement with the City.

17

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL  FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018

Budgeted

Actual

Variance with Final Budget - Positive

    Original& Final	Amounts	(Negative)
REVENUES		
Assessments	$	70,996	$	70,261	$	(735)	
Stormwater fees	210,000	241,996	31,996	

Interest income Total revenues

 	4,000	8,251	4,251 
 	284,996	320,508	35,512 

EXPENDITURES
Current:
General government

68,175

55,567

12,608

Maintenance and operations Total expenditures

Excess (deficiency) of revenues over (under) expenditures

OlHER FINANCING SOURCES (USES)
Carryforv.rard surplus
Total other financing sources (uses) Net change in fund balances
Fund balance - beginning Fund balance - ending

 	328,875	260,739	68,136 
 	397,050	316,306	80,744 

(112,054)	4,202	116,256

 	112,054	(112,054)
 	112,054	(112 ,0 54)

$	4,202   _$-===   ="4'-,' 20_2_

538,598

    $	542,800 

See notes to required supplementary information

18

TESORO COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
NOTES  TO REQUIRED  SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District's budgeting process is based on estimates 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. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2018.

19

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 AUDITING STANDARDS

To the Board of Supervisors
Tesoro Community Development District St. Lucie 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 the major fund of Tesoro Community Development District, St. Lucie County, Florida ("District") as of and for the fiscal year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our opinion thereon dated May 17, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the 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 of the 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 paragraph 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 assurance about whether the District's financial statements are free from material 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 not 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.

20

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 of the 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 communication is not suitable for any other purpose.

May 17, 2019

21

fJ

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.gr aucpa.com

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

To the Board of Supervisors
Tesoro Community Development District St. Lucie County, Florida

We have examined Tesoro Community Development District St. Lucie County, Florida's ("District") compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2018. Management is responsible for District's compliance with those requirements. 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 requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. 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 requirements for the fiscal year ended September 30, 2018.

This report is intended solely for the information and use of the 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 Tesoro Community Development District St. Lucie County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

May 17, 2019

22

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.graucpa.com

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

To the Board of Supervisors
Tesoro Community Development District St. Lucie County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Tesoro Community Development District St. Lucie County, Florida ("District") as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated May 17, 2019.

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 Florida 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 of the 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 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated May 17, 2019, should be considered in conjunction with this management letter.

Purpose of this Letter

The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following:

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 information 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 granting agencies, as applicable, management, and the Board of Supervisors of Tesoro Community Development District St. Lucie County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Tesoro Community Development District St. Lucie 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.

May 17, 2019

23

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS

None

PRIOR YEAR FINDINGS AND RECOMMENDATIONS

None

Ill. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

Unless otherwise required to be reported in the auditor's report on compliance and internal controls, the management letter shall include, but not be limited 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, 2017.

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, 2018.

Noncompliance with provisions 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 material 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, 2018.

The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.

We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2018. It is management's responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

24

S ECTION VI11

S	ECTION C

S ECTION 1

Tesoro
Community Development District

Check  Run Summary

November  20, 2018 thru May 23, 2019

	Fund	Date	CheckNo.'s	Amount	
	General Fund	11/29/19	824-827	$	20,508.48	
		12/6/18	828	$	103.39	
		12/7/18	829	$	4,023.92	
		12/27 /18	830-833	$	14,551.87	
		1/8/19	834	$	3,985.64	
		1/10/19	835-836	$	20,164.83	
		1/23/19	837	$	758.75	
		1/29/19	838-840	$	13,137.87	
		2/7/19	841	$	3,994.90	
		2/13/19	842-843	$	7,875.00	
		2/28/19	844	$	657.00	
		3/7/19	845-847	$	13,056.95	
		3/21/19	848	$	
		3/26/19	849	$	28.47	
		4/4/19	850	$	25,332.00	
		4/11/19	851-852	$	5,069.02	
		4/18/19	853-854	$	20,541.00	
		4/25/19	855	$	935.90	
		5/9/19	856-857	$	9,101.45	
		5/10/19	858	$	3,990.59	
		5/17/19	859-861	$	13,796.00	
$	1s1,613.o3 I

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN 5/23/19
***  CHECK DATES 11/20/2018 - 05/23/2019 ***	TESORO COD
BANK A TESORO COD

PAGE	1

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

STATUS

AMOUNT	..••CHECK.••..
AMOUNT	#

11/29/18 00008 11/06/18 WGC-1275 201810 310-51300-31500
RVW.SPECIAL DISTRICT FORM

*	94.50

LEWIS, LONGMAN & WALKER, PA
11/29/18 00017	11/21/18 3788	201811 320-53800-46200
WESTLK/WETLAND MNT-NOV18 11/21/18 3788	201811 330-53800-46200
EASTLK/WETLAND MNT-NOV18

*	7,093.00
*	5,573.00

94.50 000824

NATIVE LANDS MANAGEMENT, INC.
11/29/18 00005	10/19/18 2144000	201810 310-51300-48000	*
NOT. OF LNDOWNER/BOS MTG
10/19/18 2144009 201810 310-51300-48000	*
NOT. OF LNDOWNER/BOS MTG

127.05
122.10

12,666.00 000825

TREASURE COAST NEWSPAPER
11/29/18 00026	11/04/18 85313	201811 320-53800-47300
MTHLY LNDSCP MAINT-NOV18

*	7,498.83

249.15 000826

WELLINGTON PRO LAWN
12/06/18 00007	11/27/18 6-382-34 201811 310-51300-42000
DELIVERY 11/20/18

- - - - - -
*

103.39

7,-49-8.-83-

000827

FEDEX
12/07/18 00004	12/01/18 286	201812 310-51300-34000
MANAGEMENT FEES-DEC18
12/01/18 286	201812 310-51300-35100
INFORMATION TECH-DEC18 12/01/18 286	201812 310-51300-51000
OFFICE SUPPLIES
12/01/18 286	201812 310-51300-42000
POSTAGE
12/01/18 286	201812 310-51300-42500
COPIES
12/01/18 287	201812 320-53800-12000
FIELD MANAGEMENT-DEC18

-  -  -  - -  - -  - -  -  -  -10-3.-39- 000828
*	2,652.25
*	41.67
*	17.74
*	3.76
*	21.00
*	1,287.50

GOVERNMENTAL MANAGEMENT SERVICES
12/27/18 00006	12/12/18 84651	201811 310-51300-31100
DRAINAGE EASMT PREP.RSRCH 12/12/18 84652	201811 310-51300-31100
PUBLIC FACILITIES REPORT

- - -  - - -  -  -  -  -  -4,-02-3.-92- 000829
*	4,850.25
*	1,142.55

CULPEPPER & TERPENING, INC.
12/27/18 00008 12/05/18 WGC-1278 201811 310-51300-31500
PREP ATTND MTG/RVW AGDA
LEWIS, LONGMAN & WALKER, PA

-  - - - -  - - -  -  - -5,-9-92.-8-0 000830
*	693.94
693.94 000831

TES  -- TESORO --	TVISCARRA

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN 5/23/19
***  CHECK DATES 11/20/2018 - 05/23/2019 ***	TESORO CDD
BANK A TESORO CDD

PAGE	2

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

12/27/18	00005	11/13/18	

12/27/18	
00026	
12/02/18	

1/08/19	
00004	
1/01/19	
		1/01/19	
		1/01/19	
		1/01/19	
		1/01/19	

1/10/19	
00017	
12/26/18	
		12/26/18	

1/10/19	
00026	
1/04/19	

1/23/19	
00035	
1/10/19	

1/29/19	
00008	
1/08/19	

1/29/19	
00017	
1/23/19	
		1/23/19	

1/29/19	
00026	
1/17/19	

2157691 201811 310-51300-48000
NOT. OF LNDOWNER/BOS MTG

STATUS

*

AMOUNT	....CHECK	•
AMOUNT	#
366.30

TREASURE COAST NEWSPAPER
85646	201812 320-53800-47300
MTHLY LNDSCP MNT-DEC18

-  - - -  -  - -  -  - -  -  -3-66-.30-
*	7,498.83

000832

WELLINGTON PRO LAWN
288	201901 310-51300-34000
MANAGEMENT FEES-JAN19
288	201901 310-51300-35100
INFORMATION TECH-JAN19
288	201901 310-51300-51000
OFFICE SUPPLIES
288	201901 310-51300-42000
POSTAGE
289	201901 320-53800-12000
FIELD MANAGEMENT-JAN19

7,498.83 000833

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

-   -  -
*	2,652.25
*	41.67
*	.39
*	3.83
*	1,287.50

GOVERNMENTAL MANAGEMENT SERVICES
3805	201812 320-53800-46200
WESTLK/WETLAND MNT-DEC18
3805	201812 330-53800-46200
EASTLK/WETLAND MNT-DEC18

-  -  -  -  - - -  -  - - -3,-9-85.-64-
*	7,093.00
*	5,573.00

000834

NATIVE LANDS MANAGEMENT, INC.
85972	201901 320-53800-47300
MTHLY LNDSCP MAINT-JAN19

-  -  -  -  -  - -  -  -  -  -12,-6-66.-00- 000835
*	7,498.83

WELLINGTON PRO LAWN
2016 862 201901 300-36300-10100
2018 TAX ROLL FEE

-  - - -  -  -  -  -  -  - -7,-4-98-.83-
*	758.75

000836

MICHELLE FRANKLIN, PROP APPRAISER
WGC-1285 201812 310-51300-31500 RVW.NATIVE LANDS AGREE.

-  - -  -  - - - -  - -
*	95.70

758.75 000837

LEWIS, LONGMAN & WALKER, PA
3818	201901 320-53800-46200
WESTLK/WETLAND MNT-JAN19
3818	201901 330-53800-46200
EASTLK/WETLAND MNT-JAN19

- -  -  - -  - - - - -
*	7,093.00
*	5,573.00

95.70 000838

NATIVE LANDS MANAGEMENT, INC.
86085	201901 320-53800-47300
MTHLY LDSCP MNT-PRORATE
WELLINGTON PRO LAWN

- - -  - - - -  -  - - -12-,6-66-.0-0 000839
*	376.17
376.17 000840

TES  -- TESORO --	TVISCARRA

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN 5/23/19
***  CHECK DATES 11/20/2018 - 05/23/2019 ***	TESORO CDD
BANK A TESORO CDD

PAGE	3

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

STATUS	AMOUNT	.••.CHECK..•..
AMOUNT	#

2/07/19 00004

2/01/19 290	201902 310-51300-34000
MANAGEMENT FEES-FEB19
2/01/19 290	201902 310-51300-35100
INFORMATION TECH-FEB19
2/01/19 290	201902 310-51300-51000
OFFICE SUPPLIES
2/01/19 290	201902 310-51300-42000
POSTAGE
2/01/19 291	201902 320-53800-12000
FIELD MANAGEMENT-FEB19

*	2,652.25
*	41.67
*	.78
*	12.70
*	1,287.50

GOVERNMENTAL MANAGEMENT SERVICES
2/13/19 00006	12/31/18 84856	201812 310-51300-31100
DRAINAGE EASEMENTS PREP.
12/31/18 84868	201812 310-51300-31100
PUBLIC FACILITIES REPORT 12/31/18 84856	201812 310-51300-31100
DRAINAGE EASEMENTS PREP.
12/31/18 84868	201812 310-51300-31100
PUBLIC FACILITIES REPORT

-  - - -  -  - -  -  -  -  -3-,9-94-.9-0 000841
*	4,851.40
*	1,076.20
V	4,851.40-
V	1,076.20-

2/13/19 00026

CULPEPPER & TERPENING, INC.
2/04/19 86281	201902 320-53800-47300
MTHLY LNDSCP MNT-FEB19

- - -  - - -  -  - - -
*	7,875.00

.oo 000842

2/28/19 00038

3/07/19 00004

3/07/19 00042

WELLINGTON PRO LAWN
2/20/19 348803	201901 310-51300-31500
REV.DRAFT/EASEMNT/PERMITS 2/20/19 348803A 201902 310-51300-31500
PHONE MTG/REV.EXHIBIT
DEAN,MEAD,EGERTON,BLOODWORTH,
3/01/19 292	201903 310-51300-34000
MANAGEMENT FEES-MAR19
3/01/19 292	201903 310-51300-35100
INFORMATION TECH-MAR19
3/01/19 292	201903 310-51300-51000
OFFICE SUPPLIES
3/01/19 292	201903 310-51300-42000
POSTAGE
3/01/19 293	201903 320-53800-12000
FIELD MANAGEMENT-MAR19
GOVERNMENTAL MANAGEMENT SERVICES
1/17/19 1178	201901 310-51300-35200
ADA COMPLIANCE/UPDT/REBLD

-  -  -  -  - -  -  - - -  -7,-87-5.-00-
*	219.00
*	438.00

657.00 000844

- - - - - - - - - - - - - - -
*	2,652.25
*	41.67
*	.03
*	.50
*	1,287.50
- - -  - - -  - - -  -  -3,-98-1.-95-
*	1,200.00

000843

000845

VGLOBALTECH	1,200.00 000846

TES -- TESORO	TVISCARRA

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN 5/23/19
***  CHECK DATES 11/20/2018 - 05/23/2019 ***	TESORO CDD
BANK A TESORO CDD

PAGE	4

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

STATUS

AMOUNT	.••.CHECK.....
AMOUNT	#

3/07/19 00026

3/21/19 00006

3/02/19 86574	201903 320-53800-47300
MTHLY LANDSCAPE MNT-MAR19
WELLINGTON PRO LAWN
3/11/19 85301	201902 310-51300-31100
DRAINAGE EASEMENTS PREP.
3/11/19 85301	201902 310-51300-31100
DRAINAGE EASEMENTS PREP.

*	7,875.00
- -  -  -  -  - -  - - - -7,-87-5.-0-0 000847
*	1,226.45
V	1,226.45-

3/26/19 00007

CULPEPPER & TERPENING, INC.
3/19/19 6-494-13 201903 310-51300-42000
DELIVERY 03/06-11/19

- - - - - - - - - -
*	28.47

.oo 000848

FEDEX
4/04/19 00017	2/20/19 3839	201902 320-53800-46200	*
WESTLK/WETLAND MNT-FEB19
2/20/19 3839	201902 330-53800-46200	*
EASTLK/WETLAND MNT-FEB19
3/20/19 3860	201903 320-53800-46200	*
WESTLK/WETLAND MNT-MAR19
3/20/19 3860	201903 330-53800-46200	*
EASTLK/WETLAND MNT-MAR19

- - - - - - - - - -
7,093.00
5,573.00
7,093.00
5,573.00

28.47 000849

4/11/19 00004

NATIVE LANDS MANAGEMENT, INC.
4/01/19 294	201904 310-51300-34000	*
MANAGEMENT FEES-APR19
4/01/19 294	201904 310-51300-35100	*
INFORMATION TECH-APR19
4/01/19 294	201904 310-51300-51000	*
OFFICE SUPPLIES
4/01/19 294	201904 310-51300-42000	*
POSTAGE
4/01/19 294	201904 310-51300-41000	*
TELEPHONE
4/01/19 295	201904 320-53800-12000	*
FIELD MANAGEMENT-APR19

25,332.00 000850

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

-  -
2,652.25
41.67
.39
4.70
6.31
1,287.50

GOVERNMENTAL MANAGEMENT SERVICES
4/11/19 00006	12/31/18 84868	201812 310-51300-31100
PUBLIC FACILITIES REPORT

-  -  - - -  -  - - -  - -3-,99-2.-82-
*	1,076.20

000851

4/18/19 00017

CULPEPPER & TERPENING, INC.
4/15/19 3875	201904 320-53800-46200
WESTLK/WETLAND MNT-APR19 4/15/19 3875	201904 330-53800-46200
EASTLK/WETLAND MNT-APR19

- - -  -  -  - - - - -  -1-,0-76.-20-
*	7,093.00
*	5,573.00

000852

NATIVE LANDS MANAGEMENT, INC.	12,666.00 000853

TES -- TESORO	TVISCARRA

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN 5/23/19
***   CHECK DATES 11/20/2018 - 05/23/2019 ***	TESORO CDD
BANK A TESORO CDD

PAGE	5

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

STATUS	AMOUNT	....CHECK	•
AMOUNT	#

4/18/19 00026

4/25/19 00006

5/09/19 00006

5/09/19 00026

4/07/19 86898	201904 320-53800-47300
MTHLY LANDSCAPE MNT-APR19
WELLINGTON PRO LAWN
4/10/19 85557	201903 310-51300-31100
DRAINAGE EASEMENTS PREP.
CULPEPPER & TERPENING, INC.
3/11/19 85301	201902 310-51300-31100
DRAIN EASEMNT PREP-FEB19
CULPEPPER & TERPENING, INC.
5/01/19 87163	201905 320-53800-47300
MTHLY LANDSCAPE MNT-MAY19

*	7,875.00
- - -  -  -  -  - - -  - -7,-8-75.-00-
*	935.90
-  -  -  - - - -  - - -  - -93-5.-90-
*	1,226.45
-  -  - - - -  - - - - -1-,2-26.-45-
*	7,875.00

000854

000855

000856

WELLINGTON PRO LAWN
5/10/19 00004	5/01/19 296	201905 310-51300-34000
MANAGEMENT FEES-MAY19
5/01/19 296	201905 310-51300-35100
INFORMATION TECH-MAY19
5/01/19 296	201905 310-51300-51000

5/01/19	296	201905 310-51300-42000	*	3.56	
5/01/19	296	201905 310-51300-42500	*	5.40	

OFFICE SUPPLIES
POSTAGE COPIES
5/01/19 297	201905 320-53800-12000
FIELD MANAGEMENT-MAY19

7,875.00 000857

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

-  -
*	2,652.25
*	41.67
*	.21

*	1,287.50

5/17/19 00014

5/17/19 00008

5/17/19 00017

GOVERNMENTAL MANAGEMENT SERVICES
5/02/19 18180	201905 310-51300-32200
FY18 AUDIT SERVICES
GRAU AND ASSOCIATES
5/07/19 WGC-1302 201904 310-51300-31500 REV.REQUEST FROM AUDITORS
LEWIS, LONGMAN & WALKER, PA
5/16/19 3895	201905 320-53800-46200
WESTLK/WETLAND MNT-MAY19 5/16/19 3895	201905 330-53800-46200
EASTLK/WETLAND MNT-MAY19

-  - - -  -  - - - -  - -3,-99-0.-59-
*	1,000.00
-  - - -  -  - - - -  - -1-,0-00.-00-
*	130.00
-  -  - -  -  -  - - -  -  - -1-30-.00-
*	7,093.00
*	5,573.00

000858

000859

000860

NATIVE LANDS MANAGEMENT, INC.

TOTAL FOR BANK A TES  -- TESORO --	TVISCARRA

181,613.03

12,666.00 000861

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN 5/23/19
***  CHECK DATES 11/20/2018 - 05/23/2019 ***	TESORO COD
BANK A TESORO CDD

PAGE	6

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

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

TOTAL FOR REGISTER	181,613.03

TES  -- TESORO --	TVISCARRA

S ECTION 2

•	•	•	•	•	•	•	•	•	•	•	•

••	•
••••••••

Tesoro
Community Development District

Unaudited Financial Reporting April 30, 2019

Governmental Management Services

•

•	•

•

•

•	•	•

•

•	•	•	•

Table of Contents

 	Balance Sheet

 	General Fund

 	Month to Month

 	Assessment Receipt Schedule

 	Stormwater  Fee Schedule

Tesoro
COMMUNITY DEVELOPMENT DISTRICT BALANCE SHEET
April 30, 2019

Assets:	 	General		

Cash	$204,723	
Stormwater Fees Recievable	$23,566	
Investment - Custody Account	$442,249	
Total Assets	$670,538	

Liabilities:
Accounts Payable	

$6,208	
Deferred Revenue	$23,566	

Fund Equity:		
Fund Balances:		
Unassigned	$528,711	
Assigned	$112,054	
Total Liabilites, Fund Equity & Other Credits	$670,538	

Tesoro
COMMUNITY DEVELOPMENT DISTRICT

General Fund
Stateme rt of Revenues & Expenditures
For The Period Ending April 30, 2019

Adopted	Prorated	Actual
Budget 	Thru 04/30/19	Thru 04/30/19	Variance	

Stonnwater Fees	$210,000	$210,000	$224,110	$14,110	
Assessments	$70,996	$70,996	$65,487	($5,509)	
Interest	$5,000	$2,917	$6,537	$3,621	
Total Revenues	$285,996	$283,913	$296,135	$12,222	

Expenditures:					
Administrative					
Supervisor Fees	$4,000	$2,000	$600	$1,400	
FICA Expense	$306	$153	$46	$107	
Engineering	$5,000	$2,917	$14,083	($11,166)	
Attorney	$10,000	$5,833	$1,671	$4,162	
Annual Audit	$2,800	$0	$0	$0	
Assessment Roll Administration	$2,500	$2,500	$2,500	$0	
Management Fees	$31,827	$18,566	$18,566	$0	
lnfonnation Technology	$500	$292	$1,492	($1,200)	
Telephone	$150	$88	$6	$81	
Postage	$1,000	$583	$173	$410	
Insurance	$6,844	$6,844	$6,222	$622	
Printing & Binding	$1,000	$583	$33	$550	
Legal Advertising	$1,600	$933	$615	$318	
Other Current Charges	$750	$438	$219	$219	
Office Supplies	$200	$117	$21	$96	
Dues, Licenses & Subscriptions	$175	$175	$175	$0	
Total Administrative	$68,652	$42,021	$46,421	($4,400)	

Maintenance					
Field Operations					
Field Management Fees	$15,450	$9,013	$9,013	$0	
West Side
Mitigation Maintenance	

$85,116	

$49,651	

$49,651	

$0	
Landscaping	$89,986	$52,492	$53,996	($1,505)	
Electric	$10,000	$5,833	$78	$5,756	
Plant Replacement	$5,000	$2,917	$0	$2,917	
Fountain Repairs	$5,000	$2,917	$0	$2,917	
Contingency	$26,095	$15,222	$0	$15,222	
East Side
Mitigat ion Monitoring	

$7,500	

$4,375	

$0	

$4,375	
Mitigation Maintenance	$66,876	$39,011	$39,011	$0	
Plant Replacement	$5,000	$2,917	$0	$2,917	
Contingency	$13,375	$7,802	$0	$7,802	
Total Maintenance	$329,398	$192,149	$151,749	$40,400	
					
Total Expenditures	$398,050		$198,170		
					
Excess Revenues (Expenditures)	1$112,054)		$97,964		
					
Fund Balance - Beginning	5112,054		$542,801		
					
Fund Balance• Ending	$0		$640,765		

2

Tesoro CDD Month to Month
Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Total

Stormwatcr Fees		so			$0			$0		so		$0	$222,898	$1,212	$0	$0	$0	$0	$0	S224,110 Assessments		$0	$3,174	$59,308	$899	$718		$404		$985	$0	so	$0	$0	so		$65,487 Interest	$877		$874		$953	S996	$897		$993 $948 so $0 So $0 so S6,537

Total Revenues	$877	$4,048	$60,261	$1,895	$1,616	$224,294	$3,145	$0	$0	$0	$0	$0	$296,1351

Expenditures:

Supervisor Fees	$0		$600		$0	$0		$0		$0	$0	$0	$0	$0	$0	$0	$600 FICA Expense	$0			$46		$0	so		$0		$0	$0	$0	$0	$0	so	so		S46 Engineering	$0	$5,993	SS,928	$0	$1,226	$936                  so              so                so             $0                  so                so             Sl4,083  Attorney                                                                               S95                       S694                         $96                     $219                     $438                         $0                        $130                         $0                         so              $0                         $0                         $0                      $1,671 Annual Audit                                                                                       $0                           $0                           $0                         $0                         $0                         $0                         $0                         $0                         so                 $0                         $0                         $0                           $0
Assessment Roll Administration	$2,500	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$2,500
District Management Fees	$2,652	$2,652	$2,652	$2,652	$2,652	$2,652	$2,652	$0	$0	$0	$0	$0	$18,566 Information Technology		$42		$42		$42	$1,242		$42		$42		S42	so	$0	$0	so	$0		$1,492 Telephone			$0			so			$0		$0			$0			$0                         $6                         $0                         $0                         $0                         $0                         $0                              $6
Postage		$12	$107		$4	$4	$13	$29	$5	$0	$0	$0	$0	$0		$173 Insurance	$6,222		so		$0	$0		so		$0	so	so	$0	so	so	so	S6.222 Printing & Binding		$11		$2	$21	$0		$0		$0                         $0                         so                 $0                         so                 $0                         $0                        $33
Legal Advertising	$249	$366	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$615
OtherCurrentCharges	S29	$30	$29	S29	S29	S29	$44	$0	$0	so	$0	$0	$219
Office Supplies	$1	$0	$18	$0	$1	$0	$0	$0	$0	$0	$0	$0	$21
Dues, Licenses & Subscriptions	$175	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$175

Total Adminis'trative	$11,987	$10,532	$8,788	$4,146	$4,401	$3,688	$2,879	$0	$0	$0	$0	$0	$46,4211	

Field Operations
Field Management Fees	$1,288	

$1,288	

$1,288	

$1,288	

$1,288	

$1,288	

$1,288	

$0	

$0	

$0	

$0	

so	

S9,013	

West Side													
Mitigatkm Maintenance	$7,093	$7,()93	S7,093	$7,093	$7,()93		$7,093	$7,D93	$0	$0	$0	$0	so	$49,651	
Landscaping	$7,499	$7,499	S7,499	$7,875	$7/!75		$7,875	$7.S75	$0	$0	$0	$0	$0	$53,996	
Plant Replacement	$0	$0	$0	$0	$0		$0	$0	$0	$0	$0	$0	$0	$0	
Maintenance Reserves	$0	$0	$0	$0	$0		$0	$0	$0	$0	$0	$0	so	$0	
Electric	$11	$11	$11	$11	$11		$11	$11	$0	$0	$0	$0	$0	$78	
Contingency	$0	$0	$0	$0	$0		$0	$0	$0	$0	$0	$0	$0	$0	

Mitigation Monitoring	
$0	
$0	
$0	
$0	
$0		
$0	
$0	
$0	
$0	
$0	
$0	
$0	
$0	
Mitigation Maintenance	$5,573	$5,573	$5,573	$5,573	$5,573		$5,573	$5,573	$0	$0	$0	$0	$0	$39,011	
Maintenance Reserves	$0	$0	$0	$0	$0		$0	$0	$0	$0	$0	$0	$0	so	
Contingency	so	$0	$0	$0	so		$0	so	$0	$0	$0	$0	so	$0	
Total Maintenance	$21,463	$21,463	$21,463	$21,840	$21,840		$21,840	$21,840	$0	$0	$0	$0	$0	$151,7491	
															
TotalExpenditures	$33,451	$31,995	$30,252	$25,986	$26,241		$25,527	$24,719	$0	$0	$0	$0	$0	$198,1701	
															
Excess Revenues (Expenditures)	($32,573)	($27,947)	$30,009	($24,091)	($24,625)		$198,767	($21,574)	$0	$0	$0	$0	$0	$97,9641	
						
3									

TESORO
COMMUNITY DEVELOPMENT DISTRICT SPECIAL ASSESSMENT RECEIPTS - FY2019 TAX COLLECTOR
Gross Assessments	$	75,985	$	75,873	
Net Assessments	$	71,321	$	71,321	
Date		Gross Assessments	Discounts/	Commissions	Interest	Net Amount	Gen &"al Fund	Total	
Received	Dist.	Received	Pen ties	Paid	In come	Received	100.00%	100%	
11/9/18	ACH	$	93.76
11/19/18	ACH	$	664.10
11/27/18	ACH	$	1 , 513.68
11/30/18	ACH	$	966.80
12/7/18	ACH	$	57,482.06
12/14/18	ACH	$	2,642.68
12/21/18	ACH	s	334.26
12/31/18	ACH	$	59.20
1/7/19	ACH	$	473.62
1/9/19	ACH	$	636 .94
1/10/19	ACH	$	36.98
1/10/19	AP	$
1/11/19	ACH	$	345.35
1/18/19	ACH	$	88.80
1/28/19	ACH	$	109.67
2/1/19	ACH	$	388 .83
2/8/19	ACH	$	284.16
2/15/19	ACH	$	29.91
2/22/19	ACH	$	30.22
3/1/19	ACH	$	30.22
3/8/19	ACH	$	55.62
3/14/19	ACH	$	111.90
3/22/19	ACH	$	30.93
3/29/19	ACH	$	183.11
4/5/19	ACH	$	71 2.12
4/8/19	ACH	$	9.03
4/8/19	ACH	$	47.17
4/12/19	ACH	$	204.93
4/19/19	ACH	$	31.44
s

Totals	$	67,597.49	
$	$	1.88    $	$	91.88
$	$	13.29    $	$	650.81
$	$	30.26    $	$	1,483.42
$	$	19.34    $	$	947.46
$	$	1,149.64    $	$	56,332.42
$	$	52.85    $	$	2,589.83
$	$	6.69    $	$	327.57
$	s	1.18    $	$	58.02
$	s	9.47   $	$	464.15
$	$	1 2.74    $	$	624.20
$	$	0.74    $	$	36.24
$	$	758.75    $	$	(758.75)
$	$	6.91    $	$	338.44
$	$	1.78    $	$	87.02
$	$	2.19     $	s	107.48
$	$	7.78    s	s	381 .05
s	$	5.68    $	$	278.48
$	$	0.60    $	$	29.31
$	$	0.61   $	$	29,61
$	$	0.61    $	$	29.61
$	$	1.11   $	$	54.51
$	$	2.24    $	$	109.66
$	$	0.62    $	$	30.31
$	$	3.66    $	$	179.45
$	$	14.24    $	$	697.88
$	$	0.18   $	$	8.85
$	$	0.94    $	$	46.23
$	$	4.10    $	$	200.83
$	s	0.63    $	$	30.81
$	$	$	$

$	$	2,110.71    $	$	65,486.78	
$	91.88    $	91.88
$	650.81    $	650.81
$	1,483.42    $	1,483.42
$	947.46    $	947.46
$	56,332.42    $	56,332.42
$	2,589.83    $	2,589.83
$	327.57    $	327.57
$	58.02    $	58.02
$	464.15    $	464.15
$	624.20    $	624.20
$	36.24    $	36.24
$	(758 .75)   $	(758.75)
$	338.44    $	338.44
$	87.02    $	87.02
$	107.48    $	107.48
$	381.05   s	381.05
$	278.48    $	278.48
s	29.31    $	29.31
$	29.61    $	29.61
$	29.61    $	29.61
$	54.51   $	54.51
$	109.66    $	109.66
$	30.31   $	30.31
$	179.45    $	179.45
$	697.88    $	697.88
$	8.85    $	8.85
$	46.23    $	46.23
$	200.83    $	200.83
$	30.81    $	30.81
$	$

$	65,486.78    $	65,486.78	

4

Tesoro
COMMUNITY DEVELOPMENT DISTRICT
Stormwater Fee Schedule
Fiscal Year 2019

Date	Check#	Net Recei pts

3/15/19	WIRE	$222,897 .90	
4/26/19	282557	$1,212.39	
4/26/19	WIRE	$0.09	

Total	$224,110.38 I

5

S ECTION 3

§e1tbtude	<wafke1t
Sup e rvisor of Elections St Lucie County

4132 Okeechobee Road• Fort Pierce, A. 3-4947-5412 • (772} 462-1500 • Fax (772) 462- 14'39

April 15, 2019

Lauren Vanderveer
135 W. Central Blvd., Suite 320
Orlando, Fl 32801

Dear Lauren Vanderveer:

This letter is in response to your request for the number of registered voters as of April 15, 2019, in the Community Development District listed below. Based on the information provided in your letter of request, our office staff has researched the mapping system and voter record files and found the following:

 NAME		VOTERS
Tesoro	251

Please contact Judith Durogene, Candidate Coordinator, at 772-462-1504 if you have any questions or need additional information.

Sincerely,

Gertrude Walker
St. Lucie County Supervisor of Elections

250 NW Country Club Drive • Port St. Lucie, Florida 34986 • (772) 871-5410 •  Fax (J72) 871-5323 1664 SE Walton Road • Port St. Lucie, Florida 34952 • (772) 337-5323 • Fax (772) 337-5626
10264 SW Village Pari:M,ay • Port St. Lucie, Florida 34987 • cm) 448•5172
www.slcelections.com • e-mail: elections@slcelections.com

S ECTION 4

MEAD

□ EAN
ATTORNEYS AT LAW
Dean, Mead, Minton & Zwemer 1903 South 25th Street, Suite 200
P.O. Box 2757 (ZIP 34954) Fort Pierce, FL 34947

(772) 464-7700
(772) 464-7877 Fax
www.deanmead.com

Attorneys and Counselors at Law
Orlando Fort Pierce Tallahassee Tampa
Viera/Melbourne
W. LEE DOBBINS
LDobbins@deanmead.com

January 28, 2019

VIA EMAH..: gflirit@gms:dl .com
Governmental Management Services - Central Florida, LLC Attn: George S. Flint, District Manager
135 West Central Blvd, Suite 320
Orlando, FL 32801

Re:	Tesoro Community Development District ("Tesoro CDD") / Real Property Issues Dear George:
We are pleased to have this opportunity to be of assistance to Tesoro CDD. You have asked us to represent Tesoro CDD in connection with entering into agreements between Tesoro CDD, West Coast Investors, LLC and Tesoro Property Owner's Association, Inc. addressing maintenance responsibilities for various properties and improvements in the Tesoro development, and access to those properties.
This will confirm that the terms and conditions of our representation are the same as those set forth in the engagement letter dated March 30, 2016 (a copy of which is attached). Although the attached engagement letter may reflect a different billing rate, my current rate is
$365.00 per hour. Of course, when possible, I will have the paralegals in our firm handle certain aspects of this matter. These rates are subject to change annually (usually in January).
Thank you for giving us the opportunity to work with you again.

ds, /

r	···· c	.
W.	Dobb	6-=.=	c
WLD:sh Enclosure

02328929.vl

A Member of ALFA International - The Global Legal Network

I

DEAN MEAD

Dean, Mead, Minion & Zwemer
1903 South 25th Slruet, Suite 200
P.O. Box 2757 (ZIP 34954)
Fon Pierce, Fl. 34947

(772) 464-7700
(772) 464-7877 Fax
www.deanmead.com

V,lA EMA.n.:..g Olnt a,e n i cO.c om

March 30, 2016

Attomeya and Couneelors at Law
Orlando Fort Pien:e Galnesville Tallahassee Tampa
Viera/Melbourne
W. LEE 008B1NS
LOobblns@deanmead.com

GovemmeritnDWunagernenrScrvices Central Florida, LLC
Attn: George S. Flint,'District Manager
135 West Central Blvd, Suite 320
Orlando1  FL  32801
Re:	Tesoro Community Development District / Roal Property Issues Dear Mr. Flint:
We are pleased to have the opportunity to be of service to Tesoro Community Development District (the "CDD"). We look forward to working with you and will do our best to provide you with the highest quality legal services in a responsive, efficient manner.
Fundamental to a sound relationship is a clear understanding of the tenns and conditions upon which we will be providing legnl services. The purpose of this letter is lo explain and confinn these terms and conditions.

Scouc of Services
You asked us to represent the CDD in conoection with col'recting inconsistencies between the boundaries of the properties that the COD is responsible for maintaining, and the boundaries of the properties which the COD owns or over which the COD holds easement rights. You acknowledge that our representation does not entail a continuing obligation to give advice concerning legal develop1nents that might have a bearing on your affairs generally, nor, after completion of our representation in this inatler, subsequent legal developments which relate to or could have a bearing on that matter. When we finish work on this matter, our attomey client relationship with you will end unless you and we expressly agree to the continuation of th.is relationship for other matters. Either y0\.1 or we can terminate the attorney-client relationship before the work is completed, subject to certain ethical restraints.

F1l2lal'l2. ,,1

Engagement Letter to George S. Flint
March 30, 2016
Page 3

To enable us to render these services, you agree to fully and accurately disclose to us all facts that may b relevant to the matter or that we may otherwise rc.:ques1 c1nd to ,keep us apprised of developments relating to the mattc1· as they occur. YOll also will assist and cooperate wi1h us in such other ways as may be requil'ed to provide timely and etlicient representation. This includes timely responses to our requests for information and docume;:nls.
.From time to time, we may express our opinions or beliefa concerning the matte,· or various courses of action and the results that might be anlicipated. Any such statement made by  any attorney in our firm is intended to be an expression of opinion only, based on information available to us al the time, and must not he consu·ued by you as a promise or guarantee of any particular result.

Fees nm.I Cnsts

Our fees wilJ be based on the amount of time spent by attorneys and paralcgals on your matter. Each lawyer and paralegal has an hourly billing rate based generally on his or her experience and any special expertise, The rate multiplied by the time spent on your behalf, measured in tenths of an hour, will be evaluated by the billing attornoy as the basis fol' determining the fee.
My billing rate is currently $350.00 an hour. My rate and lhc rates of other lawyers and pai·alcgals are adjusted from time to time to reflect increased experience and special expertise of the attorneys and paralegals and inflationary cost increases affecting our practice, and the agjusted r tes wiJI apply to i'i:ll services -perfonn d th 9llft r._· 1n.addftion to our tc:es, .we wi.11 cxp  i payment for disb:uuemerds and other charge-sas,dt scribc.   ip -tl, e Oencr.nl. t'•r wi iQns e.nt.16:sed With this lettct. Y@!.l iv.ee tqat oµr fees imd .costs are protected by Hens n·tJiilable under Florida law as described in the General Provisions helow.
Each month we will furnish you with a statement describing our services rendered and separately showing disbursements and other charges in a format and with such d.ctai I as you and we muy agree, There oJlen is an unavoidab)e delay in reporting disbursemen ts . Md other charges, and therefore not all disbursements and charges may be billed ut lhe snm time as the related legal services.

You agree to deposit $2,500 .00 with us as an advance towurd our fees, costs, disbursements und other charges in connection with our n:prcsentation which will be depo itcd in our trust account and regularly applied to pay or reduce our monthly invoices for foes, costs, disbursements and other charges incurred in your representation. In the event our foes, costs, disbursements anc.1 other charges exceed the advance deposited with us, we will invoice you for the excess. Any unused portion of the advance will be ret\JrQQA t() yut! at the conc:Jusion uf·m1r services.  You agree that we may req ucst additional dcpo.sit-S:.frpm lil1'le;JQ time 'basedon ou.r eslimates or continuing or l't1turc work to be undertaken 1-.18 thJs advance ti; di1ttit1iihed. lfyQu fail

Engagcmcnl Letter to George S. Flint March 30, 2016
Page 5

Gen.eral Provisions
Except as modified by the accompanying engagement letter, the foJJowing provisions will apply to lhe relationship between us and our clients:

The time for which a client will be charged  will include, hut will not be li1 ted to, tel phone Md office conferences with a client and counsel, witne.sses, consuttnnis, court personnel, and e tbei'.s; ,<:of.\ f  r  necs among our p_cr.sonnclj f ctim.l inv gation; legal researeh; responding to clicnls' reqt1esls to provide informalion to auditors in connection  with reviews or audits of financial statements; drafting of letters, pleadings, briefs,
and other documents; travel time; wniting time in court or elsewhere; and time in depositions and other discovery proceedings.

In addition to our fees, we will be entitled to payment or reimbursement for disbursements and other charges incurred in performing service,s.. 'fhil3 m'-'Y include, by way of exam.pl¢,. ch r.ge$ incurr by Dean M¢ad for :PlJQtpt opying, messenger and:deliveey, air t-rejght, vid_ ()tape recording. travel .(illciuding mH gt_, p1Jrkin	t. lls, nirfate,_ lodging, meals, and ground  transportation), long distanc· telcpl)(me tele_copying,·
computerized legal research (sm:h as thtoUgb W tt w or othedegal research
engine), court costs and filing fees. :UJile'SS special arr. 1gem_e 1:ts. are mad in advance, fees and expenses of r;thers.(4\loh:as.experts invustlgato:rs. witnesses, consultants,  and eo ttteporters) and other large disbursements will not be paid by our firm. and wHI be the responsibility of, and billed
directly to, the client.

Although we may from time to time for a client's convenience furnish estimates of fees or chttrgcs that we anticipate will be incun-ed on a client's behalf, these estimates are S\ibjec.t Q \mforescen circumstances und are by their nature inexact. W·e the.reforc will not b bound by any estimates.

.	.	.

Pees, disbursements, and other charges will be billed monthly and are payable up_pn presentation.Wt expe<:;t paym. i1t  )f <>ur statements within thiJt)' (30).'d.,i:iys :f\ r_tµey arerendered. hit®sl Will b.t charged at the rote of twelve p.er¢ent(12%):pc;r Jnnum on nJ] accout1ts remaining unpaid after thirty (30)-dnys fr.om the dnte the 1Jwofo T rendered.
You agree that, as security for attorneys' fees. costs. disbursements or any other amounts owed to this firm pursuant to its representation herein, the firm is hereby granted a security interest in, und muy imp<,se a charging lien on, any and all assi.;ls und things of value which

Engagement Letter to George S. Flint March 30, 2016
Page 7

any challenge of such denial, and you agree in such event to seek ond use
sep rutc counsel to pursue such chnllenge.
You authorize us to communicate by cell phone, e-mail or facsimile transmissjon notwithstanding the inherent risk that such communications may be intercepted or unintentionally misdirected.
''llii agrc:cmtml 111ay b, ee   ec\1t  d J ." n\1mher of identical COl:l'(lter:parts which.,taken toiether. shall constitute collectively (lne {l} ag.re.cmcnt; l>\lt iil mqki:ng·p ro()f of this agre.c1ncnt, iLsha11 not b'e·necessary Jo. produce or accotifit fo.r tllJ>r fhan .on-esuchc<>unterpart executed'b,y the p.arty
·to be cliarged.  A copy of this  greernenti h1clµdin_g.n,•copy transmitted ·by ·
f csimile tronsmissio•n . shaU be treated for a-ll p.tlQ»	QS an origi_11ti_l.
The accompanyjng engagement letter supersedes any prior engagement letters that may have been entered into.

F0214.W2.v I

AUDIT COMMITTEE MEETING

S ECTION Ill

S ECTION A

TESORO COMMUNITY DEVELOPMENT DISTRICT REQUEST FOR PROPOSALS

Annual Audit Services for Fiscal Year 2019
St. Lucie County, Florida

INSTRUCTIONS TO PROPOSE

SECTION 1. DUE DATE. Sealed proposals must be received no later than Friday, August 9, 2019, at 2:00 P.M., at the offices of District Manager, located 135 W. Central Blvd., Suite 320, Orlando, FL 32801. Proposals will be publicly opened at that time.

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

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

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

SECTION 5. SUBMISSION OF PROPOSAL. Submit seven (7) copies and one (1) electronic copy of the Proposal Documents, and other requested attachments at the time  and place indicated herein, which shall be enclosed in an opaque sealed envelope, marked with the title "Auditing Services - Tesoro Community Development District" on the face of it.

SECTION 6. MODIFICATION AND WITHDRAW AL. Proposals may be modified or withdrawn by an appropriate document duly executed and delivered to the place where proposals are to be submitted at any time prior to the time and date the proposals are due. No proposal may be withdrawn after opening for a period of ninety (90) days.

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

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

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

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

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

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

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

Describe proposed staffing levels, including resumes with applicable certifications.

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

The lump sum cost of the provision of the services under the proposal for Fiscal Year 2019, 2020, 2021. The District intends to enter into three (3) separate one­ year agreements.

Provide a proposed schedule for performance of the audit.

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

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

2

AUDITOR SELECTION EVALUATION CRITERIA

Ability of Personnel.	(20 Points)

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

Proposer's Experience.	(20 Points)

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

Understanding of Scope of Work.	(20 Points)

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

Ability  to Furnish the Required Services.	(20 Points)

Extent to which the proposal demonstrates the adequacy of Proposer's financial resources and stability as a business entity necessary to complete the services required (E.g. the existence of any natural disaster plan for business operations).

Price.	(20 Points)

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

S ECTION B

TESORO COMMUNITY DEVELOPMENT DISTRICT REQUEST FOR PROPOSALS FOR ANNUAL AUDIT SERVICES

The Tesoro Community Development District hereby requests proposals for annual financial auditing services. The proposal must provide for the auditing of the District's financial records for the Fiscal Year ending September 30, 2019, with an option for two additional annual renewals. The District is a local unit of special-purpose government created under Chapter 190, Florida Statutes, for the purpose of financing, constructing, and maintaining public infrastructure. The District is located in St. Lucie County and has a general administrative operating fund.

The Auditing entity submitting a proposal must be duly licensed under Chapter 173, Florida Statutes and be qualified to conduct audits in accordance with "Government Auditing Standards," as adopted by the Florida Board of Accountancy Audits shall be conducted in accordance with Florida Law and particularly Section 218.39, Florida Statutes, and the rules of the Florida Auditor General.

Proposal packages, which include evaluation criteria and instructions to proposers, are available from the District Manager at the address and telephone number listed below.

Proposers must provide seven (7) copies and one (1) electronic copy of their proposal to GMS - CF, LLC, District Manager, 135 W·. c entral Blvd., Suite 320, Orlando, FL 32801, telephone (407) 841-5524, in an envelope marked on the outside "Auditing Services - Tesoro Community Development District." Proposals must be received by Friday, August 9, 2019, 2:00 P.M., at the office of the District Manager. Please direct all questions regarding this Notice to the District Manager.

George S. Flint
Governmental Management Services - Central Florida, LLC District Manager