S I N C E 1 9 4 6

September 26th, 2017

Ms. Gloria Perez, District Manager Special District Services. Inc.
8785 SW 165th Ave., Ste. 200
Miami, FL 33193

Re: Year 2017 Walnut Creek Community Development District Report Dear Ms. Perez,
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 Walnut Creek Community Development District (the “District” or “CDD”); 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 review the insurance carried by the District and amounts set aside for the purpose of paying their premiums. A map showing the District owned properties is attached to this report. This report aims to comply with the requirements of Article VIII, Section 8.21of the Master Trust Indenture between Walnut Creek Community Development District and First Union National Bank dated November 1, 2000 (Bond Series 2000A and 2000B) and with the requirements of Article IX, Section 9.21of the Trust Indenture between the District and Hancock Bank dated January 1, 2010 (Bond Series 2010). The Series 2000 Bonds were refunded in 2008.

General

In November of 2000 the District issued Special Assessment Bonds in the amounts of
$4,575,000 (Series 2000A) and $8,320,000 (Series 2000B) to finance a portion of the following District improvements:

On-site roadway improvements including: stabilized subgrade and limerock base, roadway drainage, curbs and gutters. The improvements excluded asphalt pavement on the roadway surface.
Off-site roadway improvements in the perimeter streets including: turn lanes, sidewalks, striping, signage, traffic signalization and land acquisition.
Stormwater management facilities including: lakes, open common areas, storm sewers, inlets and manholes for the collection and transmission of the storm water runoff from streets and lots to the onsite lakes plus the discharge structure to the Central Broward Water Control District canal.

2122 Johnson Street ■ Post Office Box 1550 ■ Fort Myers, Florida 33902-1550 (239) 334-0046 ■ Fax (239) 334-3661

Water distribution systems including: water mains, fittings, valves and fire hydrants.
Wastewater collection and transmission systems including: collection sewers and manholes.

In January of 2010 the District issued $2,650,000 in Special Assessment Bonds (Series 2010) to conduct repairs and install lining in the storm sewer systems of Parcels B (Park North) and G (Park South) of the Development. The repairs were deemed necessary to correct certain failures exhibited by the pipes. In September of 2010, the Board of Supervisors, with consent of Bond Counsel, decided to allocate $237,000 of Series 2010 Bond proceeds towards the repair and enhancement of CDD owned infrastructure at the entrance of Taft Street, namely the guardhouse, pavilion and three water features. In September of 2011 the Board, with consent of Bond Counsel, decided to increase the allocated funds to $255,000 for additional enhancements to the water features. In November of 2011, the Board increased the allocated funds to
$275,000 to included repairs to an existing 15-inch diameter drainage pipe located adjacent to the west water entrance feature at the Taft Street entrance.

The District went out for competitive bid for the reconstruction of the pond banks needing such work. A good price was obtained from the low bidder. Work start is contingent on the finalization of financing. The east end of the culvert from Pond 6 to Pond 7 was repaired. There is need for a short (24 feet) culvert replacement on the east end of the culvert from Pond 3 to Pond 4. Prices have been obtained from contractors for this work. The board is working on financial arrangements for that work. The small guardhouse fountain will require some maintenance. The board of supervisors is considering options.

There are portions of the culverts within the District in need of replacement due to “end-of- life” conditions. Issues are being repaired/replaced as needed. Most of the culverts are reinforced concrete pipe (RCP) and are in good condition. Some of the culvert ends are corrugated metal pipes (CMP). The CMP pipes are showing their age and need to be slated for replacement. Ongoing maintenance of the storm water system such as pipe cleanings are needed this year.

District Location

The District is located in Section 10, Township 51S, Range 41E, in the City of Pembroke Pines, Broward County, Florida. It is generally bounded by Sheridan Street on the north, Taft Street on the south, NW 72nd Avenue on the east and University Drive on the west.

Current State, Ownership, and Condition of Infrastructure Financed or Constructed by the District

On-site Roadway Improvements: Gatehouse exit, right turn lane

Right of Way Owner: Homeowners Association (HOA).
Road Improvements Owner: CDD, except for the asphalt layers.
Status: complete and in good working order and condition.
Maintenance Responsibility: HOA.

Off-site Roadway System: NW 72nd Avenue, sidewalk along the north side of the CDD and traffic signal modification at intersection with Sheridan Street.

Right of Way Owner: Broward County
Road Improvements Owner: Broward County
Road Status: Complete and in good working order and condition.
Maintenance responsibility: Broward County

Off-site Roadway System: University Drive, westbound right turn lane from Taft Street.

Right of Way Owner: Broward County
Road Improvements owner: Broward County
Road Status: complete and in good working order and condition.
Maintenance Responsibility: Broward County

Off-site Roadway System: Sheridan Street, eastbound right turn lane (shown in photograph) & westbound left turn lane on the north entrance at NW 76th Street.

Right of Way Owner: Broward County
Road Improvements Owner: Broward County
Road Status: complete and in good working order and condition.
Maintenance Responsibility: Broward County

Off-site Roadway System: Taft Street, westbound right turn lane

Improvements: Westbound right turn lane (shown in photograph above) along with east and westbound left turn lanes at south entrance (NW 76th Avenue) and signal modifications.   Turn lanes just to the west at the Municipal Park Facility were also part of the offsite improvements.
Right of Way Owner: Broward County
Road Improvements owner: Broward County
Road Status: Complete and in good working order and condition.
Maintenance Responsibility: Broward County

On-site Roadway Improvements: Drainage Collection System

Improvements: Drainage pipes and structures on the roads
Drainage System Owner: CDD
Status: Complete and generally in good working order and condition
Maintenance Responsibility: CDD

Stormwater Management Facilities: Stormwater Detention Ponds, Pond 5

Improvements: Ten stormwater ponds (40.1 acres). Pond 5 shown here.
Improvements Owner: CDD
Status: Complete and in good working order and condition to store stormwater. CDD continues to perform maintenance on culverts, headwalls, and pond slopes as needed to maintain compliance with permits.
Maintenance Responsibility: CDD.

Water Distribution System: A network of pipes, fire hydrants and services.

Water System Improvements Owner: City of Pembroke Pines (CPP).
Status: Complete and conveyed to the CPP. To the best of our knowledge, it is in good working order and condition.
Maintenance responsibility: CPP

Water Collection and Transmission System: Sewer System

Improvements: A network of pipes, manholes and services and two lift stations.
Sewer Improvements Owner: CPP
Status: complete and conveyed to the CPP. To the best of our knowledge, it is in good working order and condition.
Maintenance Responsibility: CPP

Common Areas: Florida Power and Light easement

Improvements: Open space/recreation area, lake parcels, perimeter berms, Landscape Buffer and Florida Power and Light easement; enhanced with landscape and irrigation systems.
Owner: CDD.
Status: complete and in good working order and condition.
Maintenance Responsibility: CDD.

Common Areas (continued): Taft Street entrance guardhouse, pavilion and water features

Owner: CDD.
Status: Repairs and enhancements to the entrance buildings and water features financed with Series 2010 Bond proceeds are complete. Further items are being covered in the annual maintenance of these facilities such as landscape lighting, and updated equipment as necessary.
Maintenance responsibility: CDD.

District’s Operation, Repair and Maintenance Budget

The District has budgeted $154,625 and $1,431,700 for Administrative and Maintenance expenditures respectively, for the Fiscal Year 2017-2018. The budget period is from October 1, 2017 to September 30, 2018. The Administrative budget is just over an eight (8) percent increase and the Maintenance budget is a forty-four (44) percent increase from the previous budget year. The increase in Maintenance came primarily from monument repairs, stormwater management and pipe replacement reserve/contingency, lake restoration and maintenance, engineering fees, and operating reserve/contingency. The increase in Administrative came primarily from an increase in engineering fees and small increases to legal fees, management, office supplies/printing and trustee fees. Johnson Engineering, Inc. finds it sufficient for the ongoing maintenance of the infrastructure improvements for which the District is responsible without a catastrophic event.

District’s Public Liability and Property Damage Insurance

The District Administrative Expenditures budget for the Fiscal Year 2016-2017 includes
$14,050 for insurance. The District holds general liability, property, inland marine, hired non- owned auto, employment practices liability and public official liability coverage under an insurance policy administered by Florida Insurance Alliance. The agreement number of the policy is 100116507. The agreement period is from October 1, 2016 to October 1, 2017. The annual premium is $12,772. A copy of the insurance policy is available at the District Manager’s office.

This report has been prepared by Johnson Engineering, Inc. based on its observations and in part utilizing and relying on information prepared and provided by others.

Andrew D. Tilton, P.E.	Date Florida License No. 33258 Johnson Engineering, Inc. 6941 SW 196th Avenue Suite 32
Pembroke Pines, Florida 33332 Phone (954) 626-0123
Fax: (239) 334-3661 E B # 642

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NOTES
The aerial photograph shown is from Broward County government and was taken in 2015.
The CDD owned parcels shown are
all owned by"WALNUT CREEK COMMUNITY DEVELOPMENT
DISTRICT'"according to the Broward
County Property Appraiser's office.

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.'.-a. 3. The parcels shown were provided
--1by Florida Geographic Data Library,
who obtained the parcels from Broward County on 6-30-2012.

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