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2008-63 INTERLOCAL AGREEMENT BETWEEN LAKE COUNTY AND CITY OF CLERMONT; CITY OF EUSTIS; CITY OF FRUITLAND PARK; CITY OF GROVELAND; TOWN OF HOWEY-IN THE-HILLS; TOWN OF LADY LAKE; CITY OF LEESBURG; CITY OF MASCOTTE; CITY OF MINNEOLA; TOWN OF MONTVERDE; CITY OF MOUNT DORA; CITY OF TAVARES; CITY OF UMATILLA; AND VILLAGE CENTER COMMUNITY DEVELOPMENT DISTRICT; RELATING TO THE FORMATION OF A WATER ALLIANCE This is an Interlocal Agreement between Lake County, a political subdivision of the State of Florida, and the City of Clermont; City of Eustis; City of Fruitland Park; City of Groveland; Town of Howey-in the- Hills; Town of Lady Lake; City of Leesburg; City of Mascotte; City of Minneola; Town of Montverde; City of Mount Dora; City of Tavares; City of Umatilla; and Village Center Community Development District, hereinafter("Alliance Members"). WHEREAS, Water Management Districts have determined that traditional groundwater resources will not adequately sustain growth in Central Florida and have concluded that availability of sustainable quantities of traditional groundwater resources is insufficient to meet public water supply demands; and WHEREAS, the Alliance Members have recognized the benefits of regional cooperation and have determined that the creation of a Water Alliance ("Alliance") to efficiently plan for and utilize water resources shall serve the public interest; WHEREAS, Alliance Members are empowered to enter into interlocal agreements pursuant to sections 163.01, 166.021(1) and 125.01(1)(p), Florida Statutes; and NOW THEREFORE, in consideration of the foregoing premises which are made part of this Agreement, and the mutual covenants, terms and conditions contained herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Alliance Members hereto, each intending to be legally bound, agree as follows: GENERAL SECTION 1 Recitals. The above recitals are true and correct and form a material part of this Agreement SECTION 2 Purpose. The purpose of this Agreement is the formation of an Alliance 1 which will cooperate and work collectively to meet the water needs of the region The responsibilities of the Alliance include, but are not limited to the following: • Plan for the efficient provision and utilization of water resources including conservation. • Investigate new water supplies and alternative water supplies. • Advance the concerns of Lake County and the Alliance Members concerning water supply issues in proceedings before regulatory bodies, tribunals or the legislature. • Facilitate the delivery of adequate water supplies. • Facilitate collaboration and the resolution of conflicts among Alliance Members and other stakeholders. • Obtain funding to meet the water supply needs of Alliance Members SECTION 3 Governance. Membership on the Alliance will be equal, with each Alliance Member having an equal voice and vote. The Alliance will be governed by a board ("Alliance Board") which will consist of one elected official or authorized representative from each Alliance Member. Board Members will serve a term of at least one year. The Board will have the authority to take those actions which advance the purpose of the Alliance. SECTION 4 Meetings. The Alliance Board shall hold regular scheduled meetings at a time and place to be designated. SECTION 5 Funding. 5.1 Operational Budget Funding. The proposed annual operational budget for fiscal year 2007-2008 is Fifty Thousand ($50,000) dollars. Subsequent fiscal year operational budgets shall be as determined by the Alliance Board. However, in no case shall the annual operational budget increase by a greater percentage than the annual percentage change of the Consumer Price Index (All Urban Consumers, All Items, U.S. City Average) unless approved by a majority of the Alliance Members. Each Alliance Member's contribution to the annual operational budget amount will be determined by a formula which allocates 50 percent of the amount equally among Alliance Members (Partnership Share) and 50 percent proportionally by the amount of groundwater used during the previous calendar year (Current Usage Share). The Partnership Share for each Alliance Member is calculated by dividing 50 percent of the operational budget amount by the number of Alliance Members. The Current Usage Share for each Alliance Member is calculated by dividing that individual member's groundwater usage for the previous calendar year by the aggregate amount of groundwater used during the previous calendar year by all Alliance Members, and then multiplying that figure by 50 percent of the operational budget amount. The formula for each of the Alliance Member's cost share is depicted on Exhibit A and may be updated by addendum to this Agreement. 2 5.2 Project Cost Funding. The Board may obtain authorization and funding for additional projects which are not capable of adequate financing through section 5.1 or are not applicable to all Alliance Members. Prior to having a funding obligation, all Alliance Members, through their respective governing bodies, shall have an opportunity to choose to participate in the water supply project; only those Members which choose to participate shall have a funding obligation pursuant to this section. 5.2.1 Water Supply Development Projects. The Alliance Board may approve the initiation of a water supply development project with a majority vote of the Alliance Board. Subsequently, each Alliance Member's governing body shall determine if it will participate in the project. Each participating Alliance Member's contribution to the project cost amount will be determined by a formula which allocates 50 percent of the project cost proportionally by the amount of groundwater used during the previous calendar year (Project Current Usage Share) and 50 percent proportionally by the projected deficit between the 2013 and 2025 demand (Future Needs Share). The Project Current Usage Share for each Alliance Member is calculated by dividing that individual member's groundwater usage for the previous calendar year by the aggregate amount of groundwater used during the previous calendar year by all participating Alliance Members, and then multiplying that figure by 50 percent of the project cost amount. The Future Needs Share for each Alliance Member is calculated by subtracting an individual members 2013 projected demand from their 2025 demand as indicated on Exhibit B, this deficit is then divided by the aggregate deficit of all participating Alliance Members between 2013 and 2025, and then multiplied by 50 percent of the project cost. The formula for each of the Alliance Member's cost share is depicted on Exhibit B and may be updated by addendum to this Agreement. 5.2.2 Projects Not Involving Water Supply Development. The Alliance Board may approve the initiation of a project not involving water supply development with a majority vote of the Alliance Board. Subsequently, each Alliance Member's governing body shall determine if it will participate in the project. A participating Alliance Member's contribution to the project cost amount will be determined by a formula which attributes the project's costs proportionally by the amount of groundwater used during the previous calendar year. The project cost share for a participating Alliance Member is calculated by dividing that member's previous calendar year groundwater use by the total groundwater use of all participating members for the previous calendar year, and then multiplying that figure by the project cost. SECTION 6 Construction of o Agreement. This Agreement ment is an Interlocal Agreement as provided for in Florida Statutes, §163.01. This Agreement and the provisions contained herein shall be construed, controlled and interpreted according to the laws of the State of Florida. T he parties have participated jointly in the negotiation and drafting of this Agreement. In the event that ambiguity or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 3 SECTION 7 Entire Agreement. This Agreement constitutes the entire agreement among the parties pertaining to the subject matter hereof, and supercedes all prior and contemporaneous agreements, understandings, negotiations and discussions of the parties, whether oral or written, and there are no warranties, representations or other agreements among the parties in connection with the subject matter hereof, except as specifically set forth herein. This Agreement does not supplant, supersede, modify or amend any existing agreements unrelated to formation of a Water Alliance between the parties listed herein. This Agreement does not supplant, supersede, - modify or amend any applicable requirements of statutes or rules. SECTION 8 Effective Date. This Agreement shall become effective on the last date of formal execution by the parties. SECTION 9 Binding Effect. This Agreement is binding upon and shall inure to the benefit of the successors or assigns of the parties to this Agreement. SECTION 10 Withdrawal From the Alliance. An Alliance Member may withdraw from the Alliance only upon giving the other Members one hundred and eighty (180) days prior written notice of its intention to withdraw. Any Alliance Member who withdraws from the Alliance shall continue to be responsible for any financial or contractual obligations it has specifically assumed while a member of the Alliance. SECTION 11 Applicable law and venue. The laws of the State of Florida shall govern the validity, interpretation, construction and performance of this Agreement, and venue for any suit involving this Agreement shall be in Lake County, Florida. SECTION 12 Notice. All notices or requests shall be in writing and shall be given by hand delivery or certified mail, return receipt requested, postage prepaid, or express delivery addressed as follows or to such other persons and places as the respective party may specify by notice. The date of the notice or request shall be the date of receipt, if delivered by hand, or the postmarked date thereof SECTION 13 Sovereign Immunity. Alliance Members intend to avail themselves of the benefits of Sections 768.28 and 163.01(9)(c), Florida Statutes, and of other statutes and common law governing sovereign immunity to the fullest extent possible. Therefore, in accordance with Section 163.01(5)(o), Florida Statutes, no party is jointly liable for the negligent acts of the officers or employees of the other, or any other negligent act attributable to the other, and that each party shall be liable for negligent acts attributable to it or for negligent acts of its officers or employees and then only to the extent of the waiver of sovereign immunity or limitation of liability specified in Section 768.28, Florida Statutes. Nothing in this Agreement is intended to inure to the 4 benefit of any third-party for the purposes of allowing any claim which would otherwise be barred under the doctrine of sovereign immunity or by operation of law. IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the respective dates set forth under each signature. 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