HOBE-ST. LUCIE CONSERVANCY DISTRICT MARTIN COUNTY

HOBE-ST. LUCIE CONSERVANCY DISTRICT MARTIN COUNTY BOARD OF SUPERVISORS MEETING OCTOBER 24, 2018 9:30 A.M. Special District Services, Inc. The Oaks Center 2501A Burns Road Palm Beach Gardens, FL 33410 www.hobestluciecd.org 561.630.4922 Telephone 877.SDS.4922 Toll Free 561.630.4923 Facsimile

AGENDA HOBE-ST. LUCIE CONSERVANCY DISTRICT Hobe Sound Polo Club 2935 SE Bridge Road Hobe Sound, Florida 33455 BOARD OF SUPERVISORS MEETING October 24, 2018 9:30 a.m. A. Call to Order B. Proof of Publication..Page 1 C. Establish Quorum D. Additions or Deletions to Agenda E. Comments from the Public for Items Not on the Agenda F. Approval of Minutes 1. August 22, 2018 Board of Supervisors Regular Board Meeting...Page 3 G. Old Business 1. Update Regarding Martin County Litigation...Page 9 2. Discussion Regarding St. Lucie River BMAP Process...Page 14 H. New Business 1. Update Regarding Water Quality Monitoring...Page 16 2. Procedures to Approve Amended Water Control Plan for Unit of Development No. 1...Page 43 3. Consider Approval of Amendment of District Purchasing Policy...Page 45 4. Annual Audit Consider and Approve 2-Year Renewal Option Grau & Associates...Page 50 5. Consider Field Operations Report...Page 51 I. Administrative Matters 1. Engineer s Report 2. Attorney s Report 3. Manager s Report 4. Field Operations Report...Page 52 J. Board Members Comments K. Adjourn

The Stuart News 1939 SE Federal Highway, Stuart, FL 34994 AFFIDAVIT OF PUBLICATION STATE OF FLORIDA COUNTY OF MARTIN Before the undersigned authority personally appeared, Natalie Zollar, who on oath says that she is Classified Inside Sales Manager of the Stuart News, a daily newspaper published at Stuart in Martin County, Florida: that the attached copy of advertisement was published in the Stuart News in the following issues below. Affiant further says that the said Stuart News is a newspaper published in Stuart in said Martin County, Florida, with offices and paid circulation in Martin County, Florida, and that said newspapers have heretofore been continuously published in said Martin County, Florida, daily and distributed in Martin, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that she has neither paid or promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. The Stuart News has been entered as Periodical Matter at the Post Offices in Stuart, Martin County, Florida and has been for a period of one year next preceding the first publication of the attached copy of advertisement. Customer Ad Number Copyline PO # 437915 - SPECIAL DISTRICT SERVICES, INC 2134857 HOBE-ST. LUCIE CONSERVANCY DISTRICT Pub Dates October 12, 2018 Sworn to and subscribed before me this day of, October 12, 2018, by, who is Natalie Zollar (X) personally known to me or ( ) who has produced as identification. Karol Kangas Notary Public Page 1

HOBE-ST. LUCIE CONSERVANCY DISTRICT FISCAL YEAR 2018/2019 REGULAR MEETING SCHEDULE NOTICE IS HEREBY GIVEN that the Board of Supervisors of the Hobe-St. Lucie Conservancy District will hold Regular Meetings at the Hobe Sound Polo Club located at 2935 SE Bridge Road, Hobe Sound, Florida 33455 at 9:30 a.m. on the following dates: October 24, 2018 November 28, 2018 December 26, 2018 January 23, 2019 February 27, 2019 March 27, 2019 April 24, 2019 May 22, 2019 June 26, 2019 July 24, 2019 August 28, 2019 September 25, 2019 The purpose of the meetings is to conduct any business coming before the Board. Meetings are open to the public and will be conducted in accordance with the provisions of Florida law. A copy of the Agenda for any of the meetings may be obtained from the District s website or by contacting the District Manager at (561) 630-4922 and/or toll free at 1-877-737-4922 prior to the date of the particular meeting. From time to time one or more Supervisors may participate by telephone; therefore a speaker telephone will be present at the meeting location so that Supervisors may be fully informed of the discussions taking place. Said meetings may be continued as found necessary to a time and place specified on the record. If any person decides to appeal any decision made with respect to any matter considered at these meetings, such person will need a record of the proceedings and such person may need to insure that a verbatim record of the proceedings is made at his or her own expense and which record includes the testimony and evidence on which the appeal is based. In accordance with the provisions of the Americans with Disabilities Act, any person requiring special accommodations or an interpreter to participate at any of these meetings should contact the District Manager at (561) 630-4922 and/or toll-free at 1-877- 737-4922 at least seven (7) days prior to the date of the particular meeting. Meetings may be cancelled from time to time without advertised notice. HOBE-ST. LUCIE CONSERVAN- CY DISTRICT www.hobestluciecd.org Pub October 12,2018 TCN Page 2

MINUTES OF THE BOARD OF SUPERVISORS MEETING OF HOBE-ST. LUCIE CONSERVANCY DISTRICT AUGUST 22, 2018 Pursuant to the above Notice, the Board of Supervisors of Hobe-St. Lucie Conservancy District held its Board of Supervisors Meeting on August 22, 2018 at 9:30 A.M. at the Hobe Sound Polo Club located at 2935 SE Bridge Road, Hobe Sound, Florida 33455. Present were Rick Melchiori, Edward Weinberg and Robert Brown, Supervisors; Pete Pimentel (via Telephone), Jason Pierman and Andrew Kameis of Special District Services, Inc.; Bob Higgins and Alan Hall of Higgins Engineering; and Mary M. Viator, Attorney and Secretary. Also in attendance were Mr. Paul Whalen of Citrus Boulevard Stuart LLC, Ms. Michelle Beninda of Coventry Development, Mr. Ray Spears of The Grassroots Corp., and Sean Sullivan of Sullivan Brothers. Warren Wilson of Coventry attended via telephone. CALL TO ORDER: The Board of Supervisors Meeting was called to order by President Melchiori. ESTABLISHMENT OF QUORUM: The President announced a quorum was present and it was in order to transact any business to come before the Board. ADDITIONS OR DELETIONS TO AGENDA: None. COMMENTS FROM THE PUBLIC FOR ITEMS NOT ON THE AGENDA: NONE. APPROVAL OF MINUTES: A motion was made by Mr. Brown, seconded by Mr. Weinberg and unanimously passed approving the Minutes of the July 25, 2018 Board of Supervisors Meeting. OLD BUSINESS: 1 Page 3

Update Regarding Martin County Litigation: The Attorney explained that a Special Hearing was held on August 16, 2018 in the lawsuit brought by Martin County regarding Hobe- St. Lucie Conservancy District and Pal-Mar Water Control Districts' Motion to Dismiss, Motion to Abate and Motion for More Definite Statement. Primary arguments were presented of the subject assessments being properly authorized under Chapter 298 as non ad valorem assessments and not taxes under Chapter 194 which encompasses ad valorem taxes. It was the Districts position that Martin County's Complaint was claiming sovereign immunity for ad valorem taxes under Chapter 194 as opposed to the Districts' non ad valorem assessments under Chapter 298. Case law was cited in support of sovereign immunity not applying to non ad valorem assessments, as well as the statutes under Chapter 298 themselves and the legislative authorization for the Districts to engage in the assessment process, which is not a tax. Counsel for Martin County argued Section 298.36 only references "State" lands being subject to tax and maintenance, and argued that Martin County, as a subdivision of the State, is not the "State" in itself. Martin County also argued that Section 298.54 is entitled "Maintenance Tax" which they argued is a tax and not an assessment for which Martin County was seeking sovereign immunity. It was pointed out to the Court that the cases and the Florida Constitution itself absolutely recognize that the State includes its subdivisions, and specifically under the Florida Constitution a County is a subdivision of the State. It was further explained that the title "Maintenance Tax" for Section 298.54 is just the title; whereas, the body of the Act itself clearly states that it is for assessments for maintenance of the property within the Districts for the benefit of the property owners within the Districts. The Judge asked how many years Martin County has been paying without objection and 2 Page 4

it was explained that it has been at least ten years, and further pointed out to the Judge that 70% of Pal-Mar's budget is covered by public entities which would have the burden of assessments shifted to the other 30% private landowners within the District while the public entities, such as Martin County, are attempting to avoid payments of the assessments while receiving the benefits of the services provided by the District. The Judge confirmed receipt of all of the briefings in this matter, but recognized the complexity of the issues and decided to take the matter under advisement before issuing a ruling. With regards to their request for compliance with Florida Statutes Chapter 164 to abate the action pending the outcome of mediation between the governmental entities, the Judge seemed to indicate that she thought this was a question of law which would be virtually impossible to mediate to conclusion. NEW BUSINESS: 1. Discussion Regarding Loxahatchee River Watershed Restoration Alternative 5: The District Engineer indicated that USACOE Headquarters concurred that Alternative 5R was tentatively the selected plan (TSP). This plan takes 80% of various components of other pump alternatives. The proposal is not taking Thomas Produce lands but is adding a pump at the outfall. The pump station pumps eastward to Kitchen Creek. It includes the installation of an adjustable structure in Ranch Colony Canal. There is a flaw regarding Hobe-St. Lucie Conservancy District in that it failed to recognize the privately held lands east of Seminole Pratt Whitney Road. Hobe-St. Lucie Conservancy District as a governmental entity has an obligation to protect private lands. There are discussions regarding the TSP Plan. The Plan to be developed will take years. The long term cost analysis will be provided. The District Engineer explained that this is affecting landowners in Hobe-St. Lucie Conservancy District. The Thomas Produce land is a key component. The District Engineer commented that the preferred plan for 3 Page 5

the last ten years has a long way to go. It was explained that the Loxahatchee River Restoration Plan is to get more water to the northwest fork of the River. 2. Discussion Regarding St. Lucie River BMAP Process: The District Engineer discussed the BMAP Process which evaluates all the water bodies in the State. There is a legal mandate to fix the impaired waters. It is linked to the NPDES program. There is not a NPDES permit for Hobe-St. Lucie Conservancy District nor Pal-Mar Water Control District. Pal-Mar Water Control District has no development, it is all natural lands. The Hobe-St. Lucie Conservancy District system was developed to cleanse impaired waters. It is proposed for BMP's with the intent of having the Districts implement the BMP's as part of the compliance program. The proposal converts the aquatic program from chemical to mechanical. It takes nutrients out of the water body or alternatively slopes it away. The District will continue the process of back slopping canal banks away from canals. Mr. Spears discussed the maintenance to be performed. It is more expensive to mechanically harvest aquatics rather than to use chemicals. Mr. Weinberg commented on the impacts of mechanically cleaning rather than chemical. Mr. Spears indicated the District is treating floating vegetation which is improving water quality. Mr. Higgins indicated Hobe-St. Lucie Conservancy District was told not to do water quality testing. There had been no samples since 2017. Mr. Weinberg asked what was the purpose of the sampling. Mr. Higgins indicated the District is using the testing as an insurance policy. He described the sampling done historically. He explained that water leaves from the C44. Mr. Higgins recommended once a year sampling relating to phosphorus and five related categories. The BMAP is left up to the District to let them know what we are doing or nothing. The District is operating a conveyance system which does not generate pollution. It was discussed that the District continue to 4 Page 6

backslope canal banks but it is not the District's obligation. Mr. Weinberg commented that water sampling should have a goal. There followed discussion regarding the BMAP process and water quality monitoring. Mr. Weinberg said a plan is needed to show the District is reaching nutrient reduction. Mr. Spears commented on the maintenance program. It was the Boards direction to defer any action on this matter until the next months meeting. A motion was made by Mr. Brown, seconded by Mr. Melchiori and unanimously passed to defer the BMAP process discussion. ADMINISTRATIVE MATTERS: 1. DISTRICT ENGINEER S REPORT: The District Engineer commented that the request regarding culvert removal by RG Reserve Mitigation Bank was tabled at the Pal-Mar Water Control District Meeting. He indicated that RG Reserve Mitigation Bank wants permission to overflow into Hobe-St. Lucie Conservancy District. The Board directed that permission needs be obtained by Thomas Produce before proceeding. 2. DISTRICT ATTORNEY S REPORT: The Attorney reported on matters as they appeared on the Agenda. 3. MANAGER S REPORT: The Audit for Fiscal Year ending September 2017 was presented to the Board. A motion was made by Mr. Brown, seconded by Mr. Weinberg and unanimously passed to receive and file the Audit for Fiscal Year ending September 2017. The District Manager further reported on the ADA website compliance. It was explained that it was posted as being remediated and the District is eliminating all matters on the website that are not required. 4. FIELD OPERATIONS REPORT: Mr. Spears indicated that Mr. Sean Sullivan had addressed the District. Mr. Sullivan had installed a gate on his property and was using the property to allow horses into the Hungryland Area. There is a Trailhead to get into the Nine Jem property. 5 Page 7

No maps were posted on the trails. At this time the Board directed that action be deferred on Mr. Sullivans request to allow installation of the gate to access the Hungryland Area. Mr. Spears provided an explanation of bid proposals received. Mr. Spears explained the various proposals received which included the "Go Electric" Bid Proposal. The Board discussed doing the Daniels fence and waiting for feedback for the pumps. Mr. Melchiori suggested the District Engineer proceed on an emergency basis based on price and quality. A motion was made by Mr. Melchiori, seconded by Mr. Brown and passed as indicated above. NEXT MEETING: The next Board of Supervisors Meeting was tentatively scheduled for September 26, 2018. ADJOURN: There being no further business to come before the Board, the Meeting was adjourned. President Secretary 6 Page 8

MANLEY P. CALDWELL, JR. KENNETH W. EDWARDS CHARLES F. SCHOECH MARY M. VIATOR WILLIAM P. DONEY FRANK S. PALEN JOHN A. WEIG OF COUNSEL BETSY S. BURDEN RUTH P. CLEMENTS CALDWELL PACETTI EDWARDS SCHOECH & VIATOR LLP ATTORNEYS AT LAW 1555 PALM BEACH LAKES BLVD. SUITE 1200 WEST PALM BEACH, FLORIDA 33401 M E M O R A N D U M PARALEGAL EMILIE PEARSON, CP www.caldwellpacetti.com TELEPHONE: (561) 655-0620 TELECOPIER: (561) 655-3775 TO: Board of Supervisors, Hobe-St. Lucie Conservancy District FROM: Caldwell Pacetti Edwards Schoech & Viator, LLP DATE: October 17, 2018 RE: Update Regarding Martin County Lawsuit ========================================================================== A hearing was held on the Districts Motions to Dismiss, Abate, and for More Definite Statement on August 16, 2018. It was held before Judge Bronis at the Martin County Courthouse. In attendance were Lyman Reynolds, Districts insurance counsel, Mary Viator, and Betsy Burden (representing the Districts), and David Arthur and Elizabeth Lenihan (representing Martin County). Also in attendance was James Sherman of the South Florida Water Management District. The hearing was scheduled for 30 minutes but lasted approximately one (1) hour, with the judge asking several questions of the attorneys. The County stated its main argument was that Chapter 298 is inapplicable to political subdivisions of the State such as the County, since Section 298.36 only says it applies to the state and does not expressly state political subdivisions like the sovereign immunity statute. The Districts cited cases specifically stating that counties comprise the state and constitute part of machinery of state government and are thus subject to the Districts assessments, under both Chapter 298 and the Districts special acts. The County also argued that the Districts are levying taxes, not just non-ad valorem assessments, since Section 298.54 specifically says maintenance tax. The Districts responded that Section 298.54 defines maintenance tax as a non-ad valorem assessment and not an ad valorem tax. The Districts also cited authorities for the well-settled proposition that ad valorem taxes and non-ad valorem assessments are entirely different. An Order was rendered by Judge Bronis on August 23, 2018, denying the Districts' Motions on the basis that she believes that Section 298.36 only refers to "the state" and not "political subdivisions". The Districts' insurance counsel timely filed an Answer and Defenses to the County's Complaint. SFWMD also filed a Motion to Intervene, which matter was scheduled for hearing on October 5, 2018. This Motion was granted despite the Districts' opposition to same. The Districts will now prepare and file a Motion to Dismiss SFWMD's Complaint by the Judge's deadline of October 25, 2018. See attached from Litigation Counsel. Page 9

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DRAFT Proposed Special District Best Management Practices (BMPs) To Meet St. Lucie Basin Management Action Plan (BMAP) Requirements April 2018 In the 2013 St. Lucie BMAP, water control districts (WCDs) and other special districts in the basin were assigned allocations, which included all agricultural and urban lands within their jurisdictional boundaries that were not part of a municipal separate storm sewer system (MS4). During development of the BMAP, there were concerns with this approach, because the Florida Department of Agriculture and Consumer Services (FDACS) is the only entity that can enroll growers in best management practices (BMPs) but the districts were responsible for loading from the agricultural areas. In addition, the urban lands within the districts were permitted by the city or county and not under the district s control. Therefore, for the second BMAP iteration, the Florida Department of Environmental Protection (DEP) is proposing to revise the allocation approach for the special districts. In the proposed approach, only the canals and rights-of-way will be assigned to the special districts, as the districts have control over these portions of their jurisdictions. This approach would assign the responsibilities for addressing the loads from urban lands to the cities and counties and would simplify FDACS reporting of agricultural BMP enrollment in the basin. The districts will be required to implement specific canal and right-of-way BMPs to be compliant with the BMAP. The list below describes proposed activities that should be considered for each special district. Prior to adopting a revised St. Lucie BMAP, the exact activities required within each special district will be determined by DEP and the special district representatives. Proposed Special District BMPs The following BMPs are proposed for the WCDs and other special districts to implement for compliance with the St. Lucie BMAP. Each year, during the annual report information collection period, the special districts will confirm that these activities continue in their canals and rights-of-way and provide specific details on each activity as specified below. 1. Harvest aquatic vegetation in the canals using mechanical processes instead of herbicide treatment. Harvesting the vegetation removes the nutrients from the waterbody instead of recycling them through decomposition and deposition of plant material into the sediment. Vegetation removed from the canals must be disposed in a location where the material will not be able to reenter the canal. Vegetation harvesting should consider DEP guidelines in Removal of Aquatic Vegetation for Nutrient Credits in the Indian River Lagoon (IRL) Basin (September 2012). a. Report: Dates when harvesting occurred and disposal location. Report any herbicide treatments and justification for non-mechanical removal of vegetation. 2. Remove sediment periodically (reasonable timeframe to be determined in coordination with each special district) from the canals and/or stabilize the banks of the canals. When removing the sediment, care should be taken to not create steep banks that will continue to erode and add sediments into the canals. Bank stabilization should be used, where needed. Sediments removed from the canals must be disposed in a location where they will not be able to reenter the canal. a. Report: i. Regular maintenance activities Dates when bank stabilization/sediment removal activities occurred, the linear feet of stabilization/volume of sediment removed, and sediment disposal location. Draft Page 1 of 2 Page 14

DRAFT ii. Sediment removal projects Dates when sediment removal activities occurred, the project area, volume of sediment removed, and sediment disposal location. 3. Create a canal buffer or filter strip to help reduce loading from stormwater runoff to the canals. This can be done by not mowing canal banks within a minimum of 10 feet of the canal, or by using alternative mechanisms that accomplish the same goal. Mowing and maintenance activities should be done in such a way to prevent grass clippings from getting into the canals where they can decompose and add nutrients. a. Report: Width and locations (or percentage of canal banks that include a buffer strip) of vegetated buffer strip. Type and location of any alternative methods of canal buffer or filter strips. 4. Assist FDACS, where needed, with identifying and contacting producers within the district boundaries for purposes of participating in the relevant FDACS BMP programs. a. Report: Number of landowners contacted to assist FDACS, and the names of landowners. 5. Maintain existing water control structures and install new water control structures on the canals, where needed, to help regulate stormwater discharges during storm events and to allow nutrients and sediments to settle out in the canals where they can be removed. a. Report: Structure type, location (shapefile), and operation. Identify where new structures are needed, if applicable, and install these structures. During BMAP development, DEP will work with each special district to determine the specifics of how to implement these BMPs to account for any differences in function or operation. Draft Page 2 of 2 Page 15

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MANLEY P. CALDWELL, JR. KENNETH W. EDWARDS CHARLES F. SCHOECH MARY M. VIATOR WILLIAM P. DONEY FRANK S. PALEN JOHN A. WEIG OF COUNSEL BETSY S. BURDEN RUTH P. CLEMENTS CALDWELL PACETTI EDWARDS SCHOECH & VIATOR LLP ATTORNEYS AT LAW 1555 PALM BEACH LAKES BLVD. SUITE 1200 WEST PALM BEACH, FLORIDA 33401 M E M O R A N D U M PARALEGAL EMILIE PEARSON, CP www.caldwellpacetti.com TELEPHONE: (561) 655-0620 TELECOPIER: (561) 655-3775 TO: Board of Supervisors, Hobe-St. Lucie Conservancy District FROM: Caldwell Pacetti Edwards Schoech & Viator, LLP DATE: August 8, 2018 RE: Procedures to Approve Amended Water Control Plan for Unit of Development No. 1 ========================================================================== The District is required to comply with the following procedures to amend the Unit of Development No. 1 Water Control Plan for the District. The District would be required to go through the Water Control Plan approval process in accordance with Section 298.301, F.S., to amend the Water Control Plan. The process to approve the Amended Water Control Plan for Unit No. 1 includes the following: I. Approval of Amended Water Control Plan for Unit of Development No. 1: a. Engineer submits proposed Amended Plan at Board of Supervisor s Meeting at which time the Board adopts the Resolution to consider adoption of the Amended Plan for Unit No. 1. b. Notice of Public Hearing on Proposed Amended Plan is published following adoption of the Amended Plan. (Once a week for three (3) consecutive weeks.) c. Amended Plan is delivered to South Florida Water Management District for review and comment which has sixty (60) days to comment. d. Chapter 298.301 Notices are issued. Mail Notice to landowners, South Florida Water Management District, County Commission of County and any municipality in which District is located (Martin County). e. Public Hearing on Amended Plan is conducted by the Board of Supervisors. Following the Public Hearing on the Amended Plan, the Board would direct the Engineer to prepare the Engineer s Report. f. Engineer prepares and circulates draft of the Engineer s Report. Page 1 of 2 Page 43

g. Following completion of the Engineer s Report it is filed with the Secretary of the District. h. Notice is published of the Public Hearing of Filing Engineer s Report and Amended Plan. (Once a week for two (2) consecutive weeks with a twenty (20) day response period from date of last publication.) i. A Public Hearing is held by the Board of Supervisors on the Report and Amended Plan. South Florida Water Management comments are considered, if applicable. j. Approval of Engineer s Report and Amended Plan by Board of Supervisors. We hope this information is helpful to you. Please let us know if you have any questions concerning the above. Page 2 of 2 Page 44

HOBE-ST. LUCIE CONSERVANCY DISTRICT REQUIREMENTS AND PROCEDURES FOR PURCHASING GOODS AND SERVICES USING OR SUPPORTED BY FEDERAL FUNDS. This Policy should be used in concert with the Hobe-St. Lucie Conservancy District s (HSLCD) PURCHASING POLICIES in purchasing goods and services using or supported by federal funds. An example is a request to FEMA to reimburse costs and expenses incurred in response to a weather emergency. If a conflict arises between the terms of this Policy and HSLCD s general Purchasing Policies, the terms of this Policy shall supersede. REQUIREMENTS AND PROCEDURES A. Personal Conflicts of Interest. No employee, officer, or agent of HSLCD may participate in the selection, award, or administration of a contract supported by a Federal Assistance award if he or she has a real or apparent conflict of interest. Such a conflict would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of these parties, has a financial or other interest in or a tangible personal benefit from a firm considered for award. B. Gifts. The officers, employees, and agents of HSLCD must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. HSLCD's Procurement Officer will set standards for situations in which the financial interest is de minimis, not substantial, or the gift is an unsolicited item of nominal value. C. Violations. Consistent with 2 C.F.R. 200.318(c)(1), HSLCD employees who do not report gifts exchanged over the de minimis established by HSLCD s Procurement Officer will be in violation of section (B) above and may be disciplined, including dismissal. Penalties for a contractor may be termination of the contract. D. Advance Contracts for Future Work Supported under the Stafford Act. HSLCD may award advance contracts before an incident occurs for the potential performance of work under a Stafford Act emergency or major disaster. These types of contracts are eligible for reimbursement when used to support response and recovery efforts pursuant to a financial assistance award but must be awarded in accordance with this Policy E. Lease/Purchase Analysis. HSLCD will conduct an analysis of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach in accordance with 2 C.F.R. 200.318(d). The awarding Federal agency or State pass through agency will review any costs used in the comparison for 18-0907 1 Page 46

reasonableness, realistic current market conditions, and based on the expected useful service life of the asset. With respect to Federal Assistance under the Stafford Act, FEMA will only reimburse HSLCD for the most cost effective strategies from the comparisons. F. Value Engineering. Where appropriate, HSLCD will use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions consistent with C.F.R. 200.318(g). G. Responsible Contractors. HSLCD will award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed requirement consistent with 2 C.F.R. 200.318(h). Consideration shall be given to such matters as contractor integrity, compliance with public policy, record of past performance, Federal or State debarment, and financial and technical resources. H. Suspended and Debarred Parties. HSLCD will search SAM.gov (GSA, System for Award Management) to determine it a selected vendor is suspended or debarred from receiving Federal Assistance before agreements are completed. I. Full and Open Competition. HSLCD will conduct procurement transactions in a manner providing full and open competition consistent with the standards of 2 C.F.R. 200.319. The HSLCD will publicize Request for Proposals and will obtain solicitation from adequate sources which the HSLCD considers to be no less than three quotes, when possible, consistent with 2 C.F.R. 200.320(c)(ii). J. Prohibitions in Soliciting for Goods and Services. 1. Excessive Qualifications. Placing unreasonable requirements on firms in order for them to qualify to do business. 2 C.F.R. 200.319(a)(1). 2. Unnecessary Experience. Requiring unnecessary experience. 2 C.F.R. 200.319(a)(2). 3. Unnecessary Bonding. Requiring excessive bonding. 2 C.F.R. 200.319(a)(2). 4. Improper Qualification. Using improper prequalification procedures that conflict with 2 C.F.R. 200.319(d). 5. Specifying Only a Brand Name. HSLCD solicitations shall not specify only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance or other relevant requirements of the procurement. When it is impractical or uneconomical to write a clear and accurate description of the technical requirements of the property or services to be acquired, HSLCD may use a "brand name or equal" description as a means to define the performance or other 18-0907 2 Page 47

salient requirements of procurement. Should HSLCD determine that only a brand name product is acceptable to fulfill a requirement, that determination must be documented and justified in the same manner as a noncompetitive procurement. The specific features or salient characteristics of the named brand which must be met by offers shall be clearly stated. 2 C.F.R. 200.319(a)(6) and (c)(1). 6. Retainer Contracts. Making a noncompetitive solicitation only to a person or firm on retainer contract where that award is not for property or services specified for delivery under the scope of work of the retainer contract. 2 C.F.R. 200.319(a)(4). 7. In-State, Local, or Tribal Geographic Preferences. Imposing prohibited in-state, local, or tribal geographic preferences that conflict with 2 C.F.R. 200.319(b). An exception to this requirement is the solicitation of architectural and engineering services where geographical considerations may yield the most qualified firms. 8. Organizational Conflicts of Interest. Allowing entities to submit bids or proposals in response to the solicitation where there would be a prohibited organizational conflict of interest. 2 C.F.R. 200.319(a)(5). 9. Unequal Access to Information. HSLCD, its officials, employees or agents will not disclose non-public information as part of the solicitation process or to incumbent contractors that may provide competitive advantage in procurement competition. 10. Vendor Participation in Drafting Scope Prohibited. Vendors who assist HSLCD in the development of HSLCD procurement solicitations, including Statements of Work, are prohibited from participating in the competition for the related contracts. K. Prohibited Contracts. Time and Material Contracts without reasonable specified ceilings are prohibited or when another acceptable type of contract can be executed like a Firm Fixed Price Contract. Cost Plus a Percentage of Cost Contracts are prohibited. Sole Source Contracts must be avoided if the amount of the contract exceeds HSLCD's simplified acquisition threshold. Some exceptions to these prohibitions are allowed for exigency purposes such as during the incident period of a disaster. L. Contract Provisions tor all Federally Supported Contracts. All contracts supported with Federal Assistance must include clauses found at 2 C.F.R. 200.326. These provisions include but are not limited to access to records, antilobbying requirements, conflict of interest clause, and termination for cause. 18-0907 3 Page 48

M. Additional FEMA Contract Requirements. 1. HSLCD requires a Change Clause in FEMA related contracts that describes how, if at all, changes can be made by either party to alter the method, price, or schedule of the work without breaching the contract. 2. HSLCD contracts relevant to work supported by the U.S. Department of Homeland Security (DHS) shall include a provision that contractors shall not use the DHS seal(s), logos, crests, or reproductions of flags or likenesses of DHS agency officials without specific DHS or FEMA pre-approval. 3. HSLCD contracts shall include a provision in its contract that the contractor acknowledges that 31 USC, Chapter 38 (Administrative Remedies for False Claims and Statements) applies to its actions pertaining to the contract. 4. Additional procurement guidance specific to FEMA can be obtained from the FEMA PROCUREMENT GUIDANCE FOR RECIPIENTS AND SUBRECIPIENTS UNDER 2 C.F.R PART 200 (UNIFORM RULES) SUPPLEMENT TO THE PUBLIC ASSISTANCE PROCUREMENT DISASTER ASSISTANCE TEAM (PDAT) FIELD MANUAL. Attachment: 1. Checklist for Reviewing Procurements Under Grants by Non-Federal Entities (States, local and tribal governments, Institutions of Higher Education, Hospitals, and private non-profit organizations) 2 CFR pt. 200 (09-26-16) 2. Extract, US OMB, 2 CFR Part 200, 200.317 thru 200.326 (Procurement Standards). 3. USDHS OIG, Highlights: Audit Tips For Managing Disaster-Related Project Costs (07-01-16) 18-0907 4 Page 49

October 24, 2018 RE: Hobe-St. Lucie Conservancy District Auditor Renewal At the March 23, 2016 Hobe-St. Lucie Conservancy District Board Of Supervisors meeting, the firm of Grau & Associates was selected to perform the 9-30-2015, 9-30- 2016 and 9-30-2017 year end audits of the District with an option to perform the 9-30- 2018 and 9-30-2019 audits. The fees for the 9-30-2015 audit were $3,000. The fees for the 9-30-2016 audit were $3,100. And the fees for the 9-30-2017 audit were $3,200. The proposed fee for the 9-30-2018 audit is $3,200, which is the budgeted amount for audit fees for Fiscal Year 2018/2019. And the proposed fee for the 9-30-2019 audit is $3,300. Grau & Associates has been the district auditor for the past eleven years. Management is pleased with the professionalism and the competence of the Grau & Associates partners and staff; therefore management recommends that the Board approve the renewal option for the Fiscal Year Ending 9-30-2018 and 9-30-2019 audits for Grau & Associates. Special District Services, Inc. Page 50

CONSIDER FIELD OPERATIONS REPORT TO BE DISTRIBUTED UNDER SEPARATE COVER Page 51

Hobe St. Lucie Field Operation Report Ray Spear The Grassroots Corporation 10 15 18 C 44 St. Lucie River electric motor and panel replacement update: The soft start panel should be in this week and Sullivan Electric plans on installation of panel and pump the week of the 28 th. Pasture pumps: We removed the rotten roof from over the pumps and poured a new concrete slab around the pumps. The red iron column post should be finished this week and we plan on installing the roof the week of the 28 th. Aquatics: Clarke Industries has been aggressively spraying to keep up with growth due to the hot weather this summer. The canals are in good shape and the water is flowing well. Canal banks: We are performing our semi annual canal bank mowing at this time. Also performing some herbiciding of large clumps of Cogan Grass, in an attempt to keep it under control. Levee and right of way mowing: We have mowed every month through the summer. We did not mow this past month, but I will be issuing a work order for November. Depending on weather that should take us through January. Erosion: We received a call from South Florida Water Management District and FDOT about an erosion problem at the incoming canal at Kanner Highway. We met on site to look at the problem and to determine what to do. Also, discussed if it was our responsibility or FDOT we agreed to be responsible for the banks and the riprap and FDOT would do the asphalting at the top of the bank. I followed up with meeting Bob Higgins on site to discuss what needed to be done. The contractor started the next day and our portion of the work was completed the day after that. I have notified FDOT that we are finished with our portion, so they can get started. Page 52