Alvarez Engineers, Inc.

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1 Certificate of Authorization No NW 41 Street Suite 103 Doral, Florida Tel. (305) Fax (305) June 29, 2015 Mr. Neil Kalin District Manager Venetian Isles Community Development District Special District Services, Inc. The Oaks Center 2501A Burns Road Palm Beach Gardens, FL Re: Year 2015 Venetian Isles CDD Report Dear Mr. Kalin: The intent of this report is fourfold: 1) To inform as to the status of ownership of the infrastructure that was financed or constructed by the District; 2) To describe the state, working order and condition of the infrastructure still owned by the District; 3) To give recommendations as to the funds estimated necessary for the proper maintenance, repair and operation of the District s infrastructure and; 4) To report on the insurance being carried by the District pursuant to Section 9.14 of the Master Trust Indenture between the District and Wachovia Bank National Association dated December 1, The District is located in Section 16, Township 54S, Range 39E, in Miami-Dade County. It is bounded by theoretical SW 150 Avenue and SW 152 Avenue on the east, SW 157 Avenue on the west, theoretical SW 32 Street on the south and SW 26 Street on the north. (See Exhibit 1) 1. Infrastructure Ownership a. Roads (See Exhibit 2) i. Development Section 1. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed dated September 21, 2006, recorded in Miami-Dade County Official Record Book Pages through 1213 on August 6, 2007 (Folio No ). The rightof-ways for SW 26 Street and SW 152 Avenue have been dedicated to Miami-Dade County under the plat titled Egret Lakes Estates Section 1 recorded in Plat Book 159, Page 40. The CDD acquired the roadway improvements within the right-of-ways of SW 30 St, Egret Lake Circle and SW 153 Ct. The CDD was granted a roadway easements over those improvements by Venetian Isles Master Association, Inc. in October 1, The easement was recorded on OR Book 26632, Page 139.

2 Venetian Isles CDD June 29, Report ii. Development Section 2. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed described above. iii. Development Section 3. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed described above. The right-of-way for SW 26 Street has been dedicated to Miami-Dade County under the plat titled Egret Lakes Estates Section 3 recorded in Plat Book 160, Page 33. iv. Development Section 4. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed described above. The CDD acquired the roadway improvements within the right-of-way of SW 29 St. The CDD was granted a roadway easement over those improvements by Venetian Isles Master Association, Inc. on October 1, The easement was recorded in OR Book 26632, Page 139. v. Development Section 5. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed described above. The right-of-way of SW 26 Street has been dedicated to Miami-Dade County under the plat titled Egret Lakes Estates Section 5 recorded in Plat Book 161, Page 49. vi. Development Section 6. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed described above. The right-ofways of SW 26 Street and SW 157 Avenue have been dedicated to Miami- Dade County under the plat titled Egret Lakes Estates Section 6 recorded in Plat Book 162, Page 32. The CDD acquired the roadway improvements within the right-of-ways of SW 29 St. The CDD was granted a roadway easement over those improvements by Venetian Isles Master Association, Inc. on October 1, The easement was recorded in OR Book 26632, Page 139. vii. Development Section 7. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed described above. viii. Development Section 8. The ingress-egress tracts, where the interior roads Association, Inc. by the Quit Claim Deed described above. The right-of-way of SW 157 Avenue has been dedicated to Miami-Dade County under the plat titled Egret Lakes Estates Section 8 recorded in Plat Book 162, Page 42. The CDD acquired the roadway improvements within the right-of-ways of SW 29 St. The CDD was granted a roadway easement over those improvements by Venetian Isles Master Association, Inc. on October 1, The easement was recorded in OR Book 26632, Page 139. ix. Development Section 9. The ingress-egress tracts where the interior roads were constructed were conveyed to the District by Special Warranty Deed recorded in OR Book 23819, pages 1473 through 1475 (Folio Number ). Section 9 was platted as Egret Lakes Homes recorded in 2 Certificate of Authorization No NW 41 Street, Suite 103, Doral, Florida Telephone (305) Fax (305) Juan.Alvarez@AlvarezEng.com

3 Venetian Isles CDD June 29, Report Plat Book 159, Page 53. The roadway improvements within Section 9 were acquired by the District. b. Stormwater Management System (See Exhibit 3) i. With the exception of the drainage systems within the right-of-ways of SW 152 Avenue, SW 26 Street and SW 157 Avenue, the CDD owns the drainage systems within Sections 1, 2, 3, 4, 5, 6, 7, 8 and 9. Those drainage systems include swales, catch basins, manholes, pipes, French Drains, outfalls, headwalls and lake culvert interconnects. On October 1, 2008 the CDD was granted a drainage easement by Venetian Isles Master Association, Inc. over the entire drainage system. The easement was recorded in OR Book 26632, Page 141. ii. All seven lake tracts within the District were acquired by the District under Special Warranty Deeds recorded in Official Record Book 23819, Pages and Official Record Book pages c. Water Distribution System (See Exhibit 4) i. The water distribution system in all sections has been completed and conveyed to Miami-Dade County for ownership and maintenance. d. Sanitary Sewer System (See Exhibit 5) i. The sanitary sewer system in all sections has been completed and conveyed to Miami-Dade County for ownership and maintenance. 2. State, Working Order and Condition of the Infrastructure Currently Owned by the District a. Roads i. All roads within the District are in good working order and condition. 3 Certificate of Authorization No NW 41 Street, Suite 103, Doral, Florida Telephone (305) Fax (305) Juan.Alvarez@AlvarezEng.com

4 Venetian Isles CDD June 29, Report b. Stormwater Management System i. The road drainage and stormwater management systems are in good working order and condition. c. Water Distribution System i. The water distribution system owned by Miami-Dade County appears to be in good working order and condition. d. Sanitary Sewer System i. The sanitary sewer system owned by Miami-Dade County appears to be in good working order and condition. 4 Certificate of Authorization No NW 41 Street, Suite 103, Doral, Florida Telephone (305) Fax (305) Juan.Alvarez@AlvarezEng.com

5 Venetian Isles CDD June 29, Report Issues regarding the water or sewer systems may be reported to the County at either of the following numbers: (Emergencies) or (Costumer Service). 3. Estimated Maintenance Costs for District Owned Infrastructure a. General i. The CDD is currently carrying in its Fiscal Year maintenance expenditures budget, $47,200 broken down as follows: 1. Aquatic maintenance for lake tracts: $11, Lakes shoreline upkeep/restoration: $ 2, Drainage structure maintenance/cleaning: $ 1, Roadway/Street improvements - Repairs $ 3, Engineer s Report/Inspections: $ 1, Community sign project/upgrades $ 7, Miscellaneous improvements projects $25, Contingency $ 3, Infrastructure reserve fund $19, Total $76,665 Alvarez Engineers finds the District s maintenance budget for Fiscal Year 2014/2015 adequate and sufficient. b. District Roads i. The maintenance costs for District Roads provided below are recommendations which, at the discretion of the Board of Supervisors, can be adopted in either the District budget or in the Homeowner Association budget under an agreement with the District: ii. The estimate below encompasses all the District roads, that is, 30 St, Egret Lake Circle, 153 Ct and 29 St (see Exhibit 2). Funds will be needed to mill and resurface the roadway pavement in 15 to 20 years. The District Board of Supervisors may decide how to provide for these funds, whether by an annual assessment or at some time in the future. The present costs for milling 1 of asphalt is $3.00/SY and for placing 1 of asphalt is 5 Certificate of Authorization No NW 41 Street, Suite 103, Doral, Florida Telephone (305) Fax (305) Juan.Alvarez@AlvarezEng.com

6 Venetian Isles CDD June 29, Report 4. Insurance $6.50/SY. Therefore, the present costs for milling and resurfacing the District roads are: 1. Milling 1 : 12,255 SY x $3.00/SY = $ 36, Resurfacing 1 : 12,255 SY x $6.50/SY = $ 79, Total $116,423 c. Water Distribution System i. No maintenance costs are estimated since the water distribution system is owned and maintained by Miami-Dade County. d. Sanitary Sewer System i. No maintenance costs are estimated since the sanitary sewer system is owned and maintained by Miami-Dade County. Alvarez Engineers has reviewed the District s general liability, employment practices liability and public officials liability insurance policy provided by Florida Insurance Alliance under Agreement No for the period between October 1, 2014 and October 1, The District has budgeted sufficient funds to cover the $5,408 insurance premium. This report was prepared to the best of my knowledge and belief and is based on field observations conducted by Alvarez Engineers personnel, the District Engineer s Report and public documents available. If you have any questions please do not hesitate to contact me at or at Juan.Alvarez@Alvarezeng.com. ar Sincerely, Juan R. Alvarez, PE, District Engineer Florida Engineer License No Date: June 29, Certificate of Authorization No NW 41 Street, Suite 103, Doral, Florida Telephone (305) Fax (305) Juan.Alvarez@AlvarezEng.com

8 Avenue S.W. 157th A SW 29 ST SECTION AC. SECTION 6 Section 6 Streets Owned AC. by Venetian Isles Master Association, Inc. OR BK 25836, PG SW 156 AVE SW 156 AVE SW 31 ST Roadway Improvements Owned by CDD. Roadway Easement Granted to CDD by Venetian Isles Master Association. OR BK 26632, PG 139 SW 154 CT SECTION AC. 29 SW 31 SW 154 PL County Road by Plat PB161, PG 49 SW 30 ST SECTION AC. ST LN SW 155 AVE SW SECTION 4 SW 154 CT AC. CIRCLE SW 153 PATH SECTION AC. LAK E SW 31 TERR SW 153 PL SW 153 CT Section 5 Streets Owned by Venetian Isles Master Association, Inc. OR BK 25836, PG SW 154 PL SW 153 PATH SW 153 CT SECTION AC. EG W 29 ST SW Section 4 Streets Owned by Venetian Isles Master Association, Inc. OR BK 25836, PG County Roads by Plat PB162, PG 32 SW 153 AVE T RE Section 3 Streets Owned by Venetian Isles Master Association, Inc. OR BK 25836, PG S.W. 26th St Streett SW 31 TERR Section 8 Streets Owned by Venetian Isles Master Association, Inc. OR BK 25836, PG Section 7 Streets Owned by Venetian Isles Master Association, Inc. OR BK 25836, PG SW 156 PL SW 156 PL SW 26 LN County Road by Plat PB162, PG 42 County Road by Plat PB160, PG 33 SECTION AC. SW 152 Pl 152 CT SW SW S.W. 152nd Avenue 152 N Section 1 Streets Owned by Venetian Isles Master Association, Inc. OR BK 25836, PG Venetian Isles Master Association, Inc. OR BK 25836, PG Road Ownership Exhibit 2 Section 9 Streets Owned by the CDD OR BK 23819, PG AVE SECTION 9 (EGRET S HOMES) 6.74 AC. SW 151 AVE SW 150 CT SW General Site Plan Section 2 Streets Owned by Exhibit I SW 26 ST 27 ST SW 28 Terr SW 29 TERR SW 152 PL SW 152 CT SW 30 ST SW 3O TERR SW 152 PL County Roads by Plat PB159, PG 40

SW 29 ST S.W. 157 th Avenue SW 31 LN SW 31 TERR SW 156 PL SW 156 AVE SW 156 PL SW 156 AVE SW 26 LN SW 156 AVE SW 155 AVE SW 29 ST SW 154 PL 6.08 Ac. SW 154 CT SW 153 PATH SW 153 PL SW 31 ST 6.17 Ac.

9 SW 29 ST S.W. 157 th Avenue SW 31 LN SW 31 TERR SW 156 PL SW 156 AVE SW 156 PL SW 156 AVE SW 26 LN SW 156 AVE SW 155 AVE SW 29 ST SW 154 PL 6.08 Ac. SW 154 CT SW 153 PATH SW 153 PL SW 31 ST 6.17 Ac. EGRET CIRCLE 5.07 Ac. SW 27 TERR SW 154 PL SW 154 CT SW 153 PATH 2.67 Ac. S.W. 26 th Street SW 153 CT 4.23 Ac. SW 153 CT SW 153 AVE SW 152 PL SW 31 LN SW 31 ST SW 30 TERR SW 30 ST SW 29 TERR SW 29 ST SW 28 TERR 5.78 Ac. SW 26 ST SW 152 CT SW 152 CT SW 152 AVE S.W. 152 nd Avenue N 1.12 Ac. Stormwater Management Ownership System Exhibit 3 Exhibit II The County Owns the Drainage Systems on 152 Ave, 26 St and 157 Ave. The CDD Owns the Drainage System within Sections 1, 2, 3, 4, 5, 6, 7, 8 and 9. The CDD Owns a Drainage Easement Over the Entire Drainage System (OR BK 26632, PG 141). The CDD Owns all Seven Lakes (OR BK 23819, PG 1620 and OR BK 24612, PG 4814 SW 151 AVE SW 150 CT

Alvarez Engineers, Inc.

Alvarez Engineers, Inc. FL Certificate of Authorization No. 7538 10305 NW 41 Street Suite 103 Doral, Florida 33178 Tel. (305) 640-1345 Fax (305) 640-1346 E-Mail: Juan.Alvarez@AlvarezEng.com July 30, 2014 Ms. Cathy Deckert District