CITY OF FLAGLER BEACH/CITY OF PALM COAST INTERLOCAL AGREEMENT RELATING TO WATER AND WASTEWATER SERVICE AREAS THIS INTERLOCAL AGREEMENT made and entered into this _______ day of ________________, 2006, by and between the CITY OF PALM COAST, FLORIDA (hereinafter referred to as “PALM COAST”), a municipal corporation of the State of Florida, whose address is 2 Commerce Blvd., Palm Coast, Florida 32164, and the CITY OF FLAGLER BEACH (hereinafter referred to as “FLAGLER BEACH”), a municipal corporation of the State of Florida, whose address is Post Office Box 70, 105 S. 2nd Street, Flagler Beach, Florida 32136. W I T N E S S E T H: WHEREAS, PALM COAST has acquired all of the systems, assets and property interests owned by Florida Water Services Corp. (FWSC) within Flagler County, Florida; and WHEREAS, PALM COAST assumed jurisdiction over the utility systems of FWSC along with areas of Flagler County later annexed into the City Limits of PALM COAST; and WHEREAS, PALM COAST adopted Resolution Number 2003-17 and enacted Ordinance Numbers 2003-21 and 2003-22, and thereby established a water and wastewater service area pursuant to Florida Statutes, Chapter 180, and reserved its unconditional statutory and constitutional right to acquire or purchase any water and wastewater utility up to five miles outside of its city limits, including the area to the southeast of the boundaries of PALM COAST including the area known as the Bulow Page 1 of 12 Service Area; and WHEREAS, PALM COAST and FLAGLER BEACH have been involved in obtaining the issuance of Consumptive Use Permits from the St. Johns River Water Management District (SJRWMD) relating to potable water services to be provided to the service areas of PALM COAST and of FLAGLER BEACH; and WHEREAS, FLAGLER BEACH enacted Ordinance No. 2001-20 pursuant to Florida Statutes Chapter 180, and thereby established a water and wastewater service area to the southeast of the boundaries of PALM COAST, including the area known as the Bulow Service Area; and WHEREAS, to effectuate the goals and objectives of PALM COAST and FLAGLER BEACH to provide adequate public services to the citizens of PALM COAST, FLAGLER BEACH and Flagler County, PALM COAST and FLAGLER BEACH must engage in appropriate long term planning activities; and WHEREAS, the parties hereto have the common power to provide essential public utility services within their respective geographic jurisdictions; and WHEREAS, PALM COAST initiated governmental dispute resolution proceedings pursuant to Chapter 164, Florida Statutes, by adopting Resolution No. 2006-05 on January 17, 2006; and WHEREAS, FLAGLER BEACH joined in the governmental dispute resolution proceedings pursuant to Chapter 164, Florida Statutes, by adopted Resolution No. 2006-07, in an effort to resolve disputes over water and wastewater service areas, including but not limited to, the Bulow Service Area; and Page 2 of 12 WHEREAS, as a result of Conflict Assessment meetings held pursuant to Chapter 164, Florida Statutes, PALM COAST and FLAGLER BEACH have agreed to resolve water and wastewater service area conflicts; and WHEREAS, it would be prudent for the parties to articulate their agreement reached during Conflict Assessment meetings and to ensure that a clear understanding of their respective rights and obligations exist as to one another and with regard to their water and wastewater service areas and to provide a resolution to boundary issues; and WHEREAS, PALM COAST and FLAGLER BEACH have determined that the terms and conditions of this Agreement are in the best interests of the public health, safety and welfare of the citizens of PALM COAST and FLAGLER BEACH and provide for a public benefit; and WHEREAS, Part II, Chapter 163, Florida Statutes, styled as the “Local Government Comprehensive Planning and Land Development Regulation Act,” requires local governments to comprehensively plan and manage growth and provisions of public facilities such as potable water, wastewater treatment, and the use of water resources in a conservation mode by reusing water for multiple purposes; and WHEREAS, the PALM COAST City Council and the FLAGLER BEACH City Commission hereby find and conclude that the provisions of this Agreement are consistent with their respective Comprehensive Plans and will result in the most efficient and cost effective provision of utility service and enhanced public services; and Page 3 of 12 WHEREAS, this Interlocal Agreement is authorized by the provisions of Section 163.01, Florida Statutes, which authorizes the joint exercise by agreement of two (2) or more public agencies of any power common to them and other applicable law; and WHEREAS, PALM COAST and FLAGLER BEACH are ready, willing, and able to serve and provide water and wastewater services to the respective areas to which each agrees, each having the capacity to serve its respective area. NOW, THEREFORE, in consideration of the foregoing, and the premises and the promises, covenants and agreements herein contained, and of other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties FLAGLER BEACH and PALM COAST agree as follows: SECTION 1. RECITALS. The above recitals are true and correct and form a material part of this Interlocal Agreement upon which the parties have relied. SECTION 2. PURPOSE. The purpose of this Interlocal Agreement is to coordinate certain matters relative to the provision of public utility services within the most beneficial service areas to the consuming public. SECTION 3. ESTABLISHMENT OF SERVICE AREAS. (a) FLAGLER BEACH shall be the exclusive provider of water and wastewater services to the area depicted as Area “A” on attached Exhibit “A”. (b) PALM COAST shall be the exclusive provider of water and wastewater services to the area marked as Area “B” on Exhibit “A”. Page 4 of 12 (c) Each party shall have the exclusive right and duty to provide potable water and wastewater services, reclaimed water services, and related services within their respective areas. SECTION 4. SALE OF BULK POTABLE WATER SERVICES BY PALM COAST TO FLAGLER BEACH. (a) FLAGLER BEACH shall purchase bulk potable water services from PALM COAST to serve the area depicted as Area “C” on Exhibit “A” attached to this Interlocal Agreement. (b) FLAGLER BEACH shall pay to PALM COAST the amounts due for bulk potable water services as shall be established for such bulk services from time-to-time pursuant to the adoption of rate resolutions or other appropriate actions. SECTION 5. FUTURE ANNEXATION WITHIN SUBJECT AREAS. (a) If PALM COAST shall in the future annex areas into the City of PALM COAST now located in FLAGLER BEACH’S water and wastewater service area as depicted in Area “A” of Exhibit “A,” FLAGLER BEACH, at its option, may sell or transfer those annexed utility service customers and facilities located within such annexed area to PALM COAST in an orderly fashion, according to a price and terms agreed to by the parties. (b) If FLAGLER BEACH shall in the future annex areas into the City of FLAGLER BEACH now located in PALM COAST’S water and wastewater service area as depicted in Area “B” of Exhibit “A,” PALM COAST, at its option, may sell or transfer those annexed utility service customers and facilities located within such annexed area Page 5 of 12 to FLAGLER BEACH in an orderly fashion, according to a price and terms agreed to by the parties. SECTION 6. IMPLEMENTING ACTIONS OF THE PARTIES. The parties shall take any and all necessary and appropriate actions relating to amendments to their respective comprehensive plans and any other appropriate documents as may be appropriate relative to the implementation of this Interlocal Agreement. SECTION 7. EMPLOYEE STATUS. Persons employed by one party in the performance of services and functions pursuant to this Interlocal Agreement shall have no claim to salary, pension, workers’ compensation, civil service, or other employee rights or privileges granted by any other party to its officers and employees. SECTION 8. LIABILITY. (a) Each party shall be liable for all damages or injury to persons or property caused solely by its actions, errors, omissions, neglect or mismanagement, or by the actions of any of its officers, agents and employees while engaged in the operations herein authorized, and for any actions or proceedings brought as a result of the this Interlocal Agreement. (b) Should a party be sued for actions that are believed to be the result of the other party, the other party shall be notified of such suit and, thereupon, shall have the duty to defend the suit. Page 6 of 12 (c) Should judgment be awarded against a party in any such case, the party shall forthwith pay the same and relieve other party of any obligations relating thereto. (d) The parties shall indemnify and save harmless the other party, its agents, officers and employees from any and all judgments recovered by anyone for personal injury, death or property damage, or any other theory of liability sustained by reason of any of the party’s activities or for any actions or proceedings brought as a result of this Interlocal Agreement and shall pay all expenses including, but not limited to, defense and legal costs and attorney’s fees, in defending against any such claim made against the indemnified party or any of the indemnified party’s agents, officers or employees. (e) The indemnity provision above is not intended as a waiver of PALM COAST’S or FLAGLER BEACH’S common law right of sovereign immunity, as adopted in Florida Statutes Section 2.01. The limited waiver of sovereign immunity set forth in Florida Statutes Section 768.28 for tort actions brought against either PALM COAST or FLAGLER BEACH shall be applicable to any action brought pursuant to this indemnity provision, even if the indemnity action sounds in contract rather than tort. SECTION 9. TERM. This Interlocal Agreement shall become effective on the date of execution by the parties, and shall be perpetual in effect. SECTION 10. NOTICES. (a) With regard to any notices that may be implemented, as the case may be under the terms of this Interlocal Agreement, such notices shall be directed as follows: PALM COAST Richard Kelton, City Manager City of Palm Coast, Florida Page 7 of 12 City Hall 2 Commerce Boulevard Palm Coast, Florida 32164 FLAGLER BEACH Bill Veach City of Flagler Beach Post Office Box 70 105 S. 2nd Street Flagler Beach, Florida 32136 (b) Any party may change, by written notice as provided herein, the address or person for receipt of notices. SECTION 11. BINDING EFFECT. (a) This Interlocal Agreement shall be binding upon and inure to the benefit of the successors in interest, transferees and assigns of the parties. (b) Each party hereto represents to the other that it has undertaken all necessary actions to execute this Agreement, and that it has the legal authority to enter into this Agreement and to undertake all obligations imposed on it. (c) The signatories hereof represent that they have the requisite and legal authority to execute this Agreement and bind the respective parties herein. SECTION 12. PUBLIC RECORDS. The parties shall allow public access to all documents, papers, letters or other materials subject to the provisions of Chapter 119, Florida Statutes, and the Constitution of the State of Florida and which have been made or received by either party in conjunction with this Interlocal Agreement. SECTION 13. RECORDS AND AUDITS. (a) Each party shall maintain at its respective place of business all books, Page 8 of 12 documents, papers, and other evidences pertaining to work performed under this Interlocal Agreement. (b) Such record shall be available at any time that the other party reasonably requests inspection and copying of said records. SECTION 14. COMPLIANCE WITH LAWS AND REGULATIONS. In performing their obligations pursuant to this Agreement, the parties shall abide by all laws, statutes, ordinances, rules, and regulations pertaining to, regulating the acts contemplated to be performed herein including, but not limited to, those now in effect and hereafter adopted. Any violation of said laws, statutes, ordinances, rules or regulations shall constitute a material breach of this Interlocal Agreement. SECTION 15. INTERPRETATION/APPLICABLE LAW/VENUE. The laws of the State of Florida shall govern this Agreement. Any legal action arising out of the Agreement will have its venue in Flagler County, and this Agreement will be interpreted according to the laws of Florida. No remedy herein conferred upon any party is intended to be exclusive of any other remedy, and each and every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. No single or partial exercise by any party of any right, power, or remedy hereunder shall preclude any other further exercise thereof. Waiver of a default shall not be deemed a waiver of any subsequent defaults. In any judicial action brought by either party for the enforcement of the obligations of the other party or for the interpretation of this Agreement, the prevailing party shall be entitled to recover reasonable attorney’s fees and court costs. Page 9 of 12 SECTION 16. ASSIGNMENT. This Interlocal Agreement shall not be assigned by either party without the prior written approval of the other. SECTION 17. CAPTIONS. Section and other captions contained in this Interlocal Agreement are provided for reference purposes only and are in no way intended to describe, interpret, define, or limit the scope, extent or intent of this Interlocal Agreement, or any provision hereto. SECTION 18. EXHIBIT. Exhibit “A” to this Interlocal Agreement shall be deemed to be incorporated into this Interlocal Agreement as if fully set forth verbatim into the body of this Interlocal Agreement. SECTION 19. ENTIRE AGREEMENT/MODIFICATION. This Interlocal Agreement constitutes the complete, integrated and entire agreement between the parties with respect to the subject matter hereof, and supersedes any and all prior agreements, arrangements, contracts or understandings, whether oral or written, between the parties all of which, if any, have been integrated herein. This Agreement may not be amended, changed, or modified and material provisions hereunder may not be waived, except by a written document, of equal dignity herewith and signed by all parties to this Interlocal Agreement. SECTION 20. THIRD PARTY BENEFICIARIES. This Interlocal Agreement is solely for the benefit of the formal parties to this Interlocal Agreement, and no right or cause of action shall accrue by reason hereof to Page 10 of 12 or for the benefit of any other third party not a formal party hereto. Nothing in this Interlocal Agreement, expressed or implied, is intended or shall be construed to confer upon or give any person or entity any right, remedy or claim under or by reason of this Interlocal Agreement or any provisions or conditions hereof, other than the parties hereto and their respective representatives, successors and assigns as set forth herein. SECTION 21. SEVERABILITY. If any one (1) or more of the covenants or provisions of this Interlocal Agreement shall be held to be contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall, for any reason whatsoever, be held invalid, then such covenants or provisions shall be null and void, shall be deemed separable form the remaining covenants or provisions of this Interlocal Agreement, and shall, in no way, affect the validity of the remaining covenants or provisions of this Interlocal Agreement; provided, however, that the public interest in the terms set forth herein is not substantially adversely impacted. SECTION 22. EFFECTIVE DATE. This Interlocal Agreement shall take effect on the date that this Interlocal Agreement is fully executed by both parties. SECTION 23. COUNTERPARTS. This Interlocal Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same document. IN WITNESS WHEREOF, the parties have executed this Interlocal Agreement Page 11 of 12 on the date stated below their signature. ATTEST: CITY OF FLAGLER BEACH ______________________________ Angela Apperson, City Clerk By: ____________________________ ALICE M. BAKER, Mayor Date: ____________ , 2006 ATTEST: CITY OF PALM COAST _______________________________ Clare M. Hoeni, City Clerk By:_____________________________ JAMES V. CANFIELD, Mayor Date: ____________ , 2006 For use and reliance of the Palm Coast City Council only. Approved as to form and legality. /s/ William L. Colbert William L. Colbert, City Attorney i:\vc\palm coast\bulow-dcdd\Flagler beach and palm coast Interlocal 7-10 clean.doc Page 12 of 12