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Item K2 BOARD OF COUNTY COl\1J\1JSSfON .:US AGENDA ITEM, sv~n.f A RY r\.1 eding Date' 7/20/05 ..:-.K W Division, Cq~lIll v Attorncv Bulk hem: Y ~s r-.:o x Staff Contact Pt:-p.;.on: JOhl~ R,J" olllns. AGF~DA ITEr\l WORDING: Authorir.atiml to executc a Firsl A menJeJ and Resrared fma-/<N..'(f! AxreemefJl \....ith the K~T f.,argo Wo.We~l'lller l'rc!.alm~nl f)'Slth~1 to clarify" sourcc(s) offundjJlg, ITEM BACKG ROIL" D: Cbritkatiml \.va>.; needed a~ to sourcc(s) offi.lllding punmu1t Ln the imcr-Ioca/ Aj.;reemenf appro\'t~d (}....1..:;;;/2UO~ bet\".:e~n .Honmt.' ('ollnl}' and the l>is{rh;r to tacilitate the dlh.::tive <idmlills.u-aliotl of tile li'am.fer and reimbursemcnt ofwastcl.....ater fund.. lo the f)iHricf. PRlVIOI~S RF.LEVA'T BOlT ACTIO"; .Joiw 1?eso/urirm - f..\JoW'oe ('ol/nt)' and Florida Kr:ys Aqunluc/ Aur/lOril)': "\'.1C Rcw/mhm OY3<!()()] dnci FKAA Re,\'Olutiotr 02-011. Iwa-locaI11grceme11l, 2/11/2003 Uvtonrm,,' { .mm~v. the f.k~Il'/(.'l and the [10,.;do A>ys Aqueduu ...-4 U/hori(r), f o(JfI A[.!n:onem, 12/ 1 ~,""'~(}()1, (\Jonroe ( 'orm~.,' and the J)tstrict), imer-/uat/ Aj!reemo1/, (, f 5 05 (,\Irmn)t' Coumy and tile f)islric/), COI\TR.ACT/A(;REE:\U::l\T CJL\j'Gt:S~ ~/I\+ \Ion-s.ubsLamLal change:s made spcd1ically fOE the purpose of clarifying source(s) of nmc.ling, STA}'F REC()~'lE~[)ATIO~S: Approvat 'I'OTAL COST: $2000U.OUO .H II nc f:T F. D~ Y ~s X "'J () COST TO COll~TY: sou He ~~ OF H: NOS: REVENUE PRODljCI~'G: Yes ~o X Al\'101.1~T PER I\IO~TH Year APPROVED BY~ County Auy OM BiP u rcha::;i ng Risk Managcmcm D1V1SIOr\ or II. ECTO II. AI'I'\l.OVA L: <jf L~L~lt:S.. 07t a I.' ".- J aIm R.. Collms., County Attorncy DoellJ'\1 ~:~.IA.I'JON: l n clude:d X Not Required, [l ISPOSITIOl\': AG f.NOA I'n:,J\.1 # B.C\ .sed 2/0) FIRST AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, AND THE KEY LARGO WASTEWATER TREATMENT DISTRICT July 2ll , 2005 Sl:CTION 1,01, SECTION 1,02, SECTION 2,01, SECTION 3,01 , SECTION 3,02, SECTION 3,03, SECTION 3,04, SECTION 3,05, SECTION 4,01, SECTtON 4,02, SECTION 4,03, SECTION 4,04, SECTION 4,05, SECTION 4,06, SECTJON 4,07, SECTION 4,08, SECTION 4,09, TABLE OF CONTENTS Page ARTICLE- I DEFi N I TI ON S WORDS AND TERMS, ....,...... ..,..,.., ,"', "'"'''' "..,......,..,.. ......,.., 5 CORRELATIVE WORDS, ......,.." " ...""._._ """"'" ",____ 8 ARTICLE II I NTER LOCAL AG R E EM E NT PURPOSE OF INTERLOCAL AGREEMENT. ,"" "....,.............. 8 AR IICLE III V\/ARRAN'T I[S, RCPRESENTATIONS AND COVENANTS VIJARRANTfFS, REPRESENTAT IONS AND COVENANTS OF TH E C au NTY, .., .. .., .., ..,.., , " ..,...... .., ,__ .., .., , .., , .. , .., " , " , '" " ,.. .., .... 9 WARRANTIES, REPRESEN rATIONS AND COVENANTS OF THE mSTR!CT. ,....,..,..,..,..,...."..,..,.."........".."", """,',..,..,.. 10 LEGAL AUTHORI7A TION, .."...."....,.."..""..,.."..,..".."",..""" ,.., 13 LEGAL AUTHORIZATION "" ,..,..,..,..,..,.."..,..,....,....,........,..,.."" 13 AUDIT AND MONITORING REOUIREMF.:NTS,..,..,......,..,..,....",.. 13 ARTie U::: IV PROJt:CT !NFORMATrON PROJEC r CHANGES, ......,....",,, ",,,',..........,........,,....,..,..,....,,.. 15 TIT L E r 0 PRO J [ C T SiTE..,....", , " ",............,......,..........,....,.. 16 PERMITS AND APPROVALS,,,, '" "',,......,............,........ ....,..,.. 16 ENGINEERING SERVICES",..""",,,,,,,, "..,..,..,......"..,..,..,....,..," 16 PRO~HBrTION AGAINST ENCUMBRANCES, '" ".. ,.., ..".. ...., ...." 16 COMP LET I ON MO NEYS, , ..,.., ,...., .." .. , ,.. .., .." .. '''' '" , '" " '" , ,.. .., .. .." 17 CLOSE-OUT. "..,',,',..,..,..,..,..,..,..,..,..,.., ....,....,......,.."..,..,,,,,,,',.... 17 REIMBURSEMENTS, ,..,..,..,..,..,..,..,..,..,..,.."..,..".."..,..,,,,',,',....,.. 18 ADVANCE, """ '" '" '" """ "'" "" '" "'" "" "'" "" "" """"," ","'" "'" ",,1 9 TABLE OF CO NTENTS CO NTI N UED Paqc SECTION 5,01, SECT10N 5,02, SECTION 5,0:1, SECTlON 5,04, SECTION 5,05, SECTION 6,01, SECTION 6,02, SECTION 6,03, SECTION 7,01, SECTION 7,02, SECTION 7,03, SEClION 7,04, SECTION 7.05, SECTION 7.06, SECTlON 7,07 SECTION 7,08, SECT~ON 7,09, SE:CTION 7,10, SECTION 7,11, SECTION 7,12. SECTION 7.13_ SEClTON 7.14, SECTION 7.15. SECTION 7.16. SFCTrON 7.17. SEeTIO N 71 8- SECTiON 7,19 SECTION 7,20, SECTION 7,21, ARTICLE: V RATES AN 0 U SE O~~ TH E S EWER SYSTEM NO FREE SERVICE. ,..__...... ..,.."..'""" '" .."...... ..,..,..,..,.. ,.... ...., 20 MANDATORY CONNECTIONS",..""",..,..,.."..,..,.."..,.."..""......, 20 MAlNTENANCE OF THE NORTH COMPONENTS, ..,..".."" ..,.... 20 ADDITIONS AND MODlFlCATIONS, ,...... ..,..,.. ....,..,..,.. ,........, 20 COLLCCTION OF SYSTFrv1 DEVELOPMENT CHARGCS,.. ....,.., 20 ART~CLF.: VI DEFAULTS AND REMEDIES EVENTS OF DEFAULT. ..__..,..,.., .."..,..,..,..,..,.. ,.. ,..,.., " ,..,.... 22 REMEDIES, ....,..,..,..,.., ........,......,.., ,..""",..,..".."..""..,..,..,..,..,..,,23 DEl.AY AND WAIVER, ,......,..,.."..,..,.."..'"" ',"'," ',.................., 24 ARTfCLE VII GENERAL PROVfSIONS ACCESS TO PROJECT SITE AND PLACLS OF DISTRICT RECORD RETE NTI ON, .., , .. , .. , " , .., .. ,.. , .., ....,.. .." ..,.., ,.. , .. , .., ..,.. , .. , .., 24 ASSIGNMENT OF RrGHTS UNDER ^GREL:MENT. ............ '"'" '" 25 AMENDMeNT OF AGREEMENT. ..,..,..,..,......,..".."...."..,.., "..,.., 25 ANNULMENT OF AGREEMENT AND THE DISTRICT'S RESPONSIBILITY TO TH[ COUNTY, .........." ,', '"..,.................., 25 SEVE RAB I L1TY, ........".."............,..,........, '".. '" '" '"........"............, 26 ATTORNEY'S FEES AND COSTS..,..""" " ".."',,..,..,..,..,.., ....,.., 26 CLAIMS FOR FEDCRAl OR STATE AID, '" '" ,"',"'" ....,..,..__....,..,.... 27 ADJUDICATION OF DISPUTES OR DISAGREEMENTS ............ 27 NONDtSCRIMJNATJON "..,..,......,..,.."..,..,..,.."..,.."..,.." " "',,....,' 27 COO P E RA TI ON "....,..,..,..,..,..........,....,.."..,..,.."..,..,.."..,.." ,',"'" 28 COVENANT OF NO INTEREST,..,..,......,.."..,..,.."..,..,.."..,....,..", 29 CODE OF ETHICS.. ....,..,....,.........." ,,"', " '" '" '"'" ,........, ....,..,..,...., 29 NO SOLlCITATJON/PA YMENT ,.."..,..,..,..,....,..,..,.."..,.."..,','.",.., 29 PUBLIC ACCESS TO RECORDS ,_, ,_" ,_, ,_, ,__, ,_""""", ,_"". .. ..... 30 NON-WAIVER OF IMMUNI ry__. .......,.., 30 PRIVILEGES AND IMMUNlTICS___....... 30 LEGAL OBLIGATIONS AND Rt:SPONSI81L1TICS: NON- DELEGATtON OF CONSTf'] U 1lONAL OR STATUTORY DUTfES____________. . ".... 31 NON-RELlANC~ E3Y NON..PARTlES_.. ,. ,_" ,...... ..".. ..,..,.. ,.... 31NO PERSONAL LIABILITY _____.... .._..... ...............,.. ,.... 31 SECTION HEADINGS ....,..,..,......................__._._ ,,__,32 GOVERNING LAW; VENUE................, ..._____ 32 ii TABLE OF CONTENTS CONTINUED Pa,Q,g ARTICLE VIII CONSTRUCT~ON CONTRACTS AND INSURANCE SECTION 8,01, SeCTION 8,02, SUBMITTAL OF CONSTRue! ION CONTRACT DOCUMENTS 32 INSURANCE REQUiRED,....,.., ........".., '"..,.."..,..,..".. ,....,..,'".... 32 ART1CLE IX ADDITIONAL PROJECT COMMITMENTS OF THE DISTRICT SECTION 9,01, SECTION 9,02, SECTION 9,03, P ROJ Eel COSTS, ..,..,.., ""....,..,..,.."..,.."..".."",..,..,..,......"..,.., 33 SCHEDULE, ,......, ....,..,,,,', ,..,......,..,.."..,.."..," "..,..,..,.. ,....,..,..,.., 33 PUBLIC PURPOSE REQU IREMEN r. ...., ..,....",',.......... .........." 34 ARTlCLE X ExeCUTION OF AGRECMENT SEe TION 1 Q,01, COUNTERPARTS, ....,..,...... ...... ,.., " " ,.... ....".... ..,......" ,,',',.. ....,.. 34 SECTION 10,02, SUPERCEDES OTHER AGR[EMENTS"" ..,.................. '" '"...... 34 SEe TlON 10,03, FILING AND EFFECTIVE DATE.. .............. ",..,..............,.. ....,,, ," " 35 APPEN ole ES: APPENDIX A ..,.... " , , .. , .., .." .. ,.. , .., ..,.. , .. ..,.. , .., ',.. .. ,.. , ........ .., .... ,__ , .. ,.. , " '".. .., .........., .. , .., A-1 APPENDIX B ..,.... " , " "...."..,..,..,..,....,..,..,... . """'" _ _ _ _, __ """.. '...,......,......,..,.., B-1 111 FIRST AMENDED AND RESTATED INTE RLOCAl AG RE EM ENT TH!S FIRST AMENDED AND RESTATED INTERLOCAL AGREEMENT. dated ~his day of July, 2D05. (this "Agree'rent") is entered into pursuant to section 163.01, Florida Statutes, by and between Mo nroe County, a pofitica I subd ivision of the State of Florida {the "County"), and the Key Largo Wastewater Treatment District. an ,ndeper je nt spe ~~ar district exi sti 119 as a pub.'ic agency un de r the laws of the State of Florida (the "Distrlct"j, to amend and restate in its entirety an Interlocal Agreement previously entered beb.veen the parties and dated as of June __, 2005 (the "Interlocal Agreement"j. WITNESSETH: WHEREAS. the District and the Coun:y entered into the Interlocal Agreemen1 to advance the r,rcvision of centr::ll wastewater services to be provided in Monroe County: and WHEREAS. the Interloca~ Agreement rdentified certain sources of revenue to be u sed by the Cou r:ty t,:) fu nd its :::omm It'11e nt to th e 0 istfic~ hereLJ nd e r: and WHEREAS, the County and the District have determined to a'llend the lnter[ocal Agreement to more accurately identify the sources of funds wl1,cl1 are authorized by the County for use to fund the County's COnlT'!ttmerts to the Oistrrct hereunder: and WEHREAS, the County and t.'"ie Djs!r;ct have determined that it is desirable to amend a nd restate in its enttrety the Interlocar Agreement jn order to accu rately describe such sources of funds: 1 NOW, TH EREFOR E, in GO nsideratiotl of the mutual covena nts herein, the Inter!ocal Agreemerlt is hereby amended and restated in its entirety to rCdd as follows: WHE REAS, the County possesses home fU Ie a uthority and, in add ition, is authortzed by section 125.01 (1), J:!orida Statutes, to provide, assist in providing, and fu nd centra lizcd wastewater treatment systems and the Cou nty may e nte r into ag reements with the 0 istrict rc lative to su ch activities; J ml WHEREAS, the County's Comprehensive Plan requires that cortain was.tewater treatment levels be achioved in unincorporated areas of the County by 2010. tevels vvhich carl best be a(;h~eved by the installation of cenUal wasteW::lter treatment systems. and WH EREAS, the Dlstrict was formed in 2002 by the Leg islatLl re of the State of Florida pursuant to House Bill 471, Chapter 2002-337, Laws of Florida. for the purpose of perfo rm ing such acts as sh aU be necessary for the sound pfan n i ng, acq uisition, development. operation and maintenance of a wastewater management system within the district, jncl uding all busi ness facilities necessa ry and incidental thereto; and WHEREAS, Chapter 2002-337, Laws of ~ lorida, provides Ule District with excl usivG jurisdiction Qve r the acq uisitiofl, development. operation and management of a wastewater management system in and for the District boundaries; and WHEREAS, the County, the District and the Florida Keys Aqueduct Authority (H1C .'Authority") entered into an intedocal agreement on February 21, 2003, pursuant to wh ich the panios Agreed to transfer wastewater funds a nd functions fro m the Authority to the Distri ct. and 2 WH EREAS, the Monroe Cou nty Sanitary Wastewater Mas1er Pia n (the "Master Plan'') ~dentihed and acknowledged the benems to Monroe County, its residents, visitors and environs from the inslaHation of regionalized central sewer systems and identified a reas and projects wh ich shou Id be given priority attention, referred to as "H ot Spots;" and WHEREAS, the County, the District and the Authority have worked to identify fund ing sources a nJ grants fr om !oca I, state and fede raJ sou rces to advance the provision of central wastewater services and programs on a priority basis and guided by the Ma ster Plan's id entification of "Hot Spots;" and WHEREAS, it is imperative to the health, safety and welfare of the citizens of Man roe County that the del ivery of such wastewater facfl ities and progra m s be expeditiously advanced. and therefore, the County, the Authority and the District entered into certain joint resolutions and interlocal agreements to ut~lize the resources of two grants and County Capital Infrastructure Sa'es Surtax Funds for the benefit of the District, and the County created a Municipal Services Taxing Unit CMSTU") to assist tho District; and WH EREAS, the Cou nty h as the !oga~ a uthority to provide fund ing ~o the 0 istrict as providod he rein to accornp lish its purposes: and WH EREAS, the District has approadl ed the Cou nty wlth a req uest fDr additional financjal assistance to initiate design, pmmrtting and construction of a portion of a reg~ona r wastewater system for 5e rvrce wiHl i n the District's bounda rres to be identified as cerlfljrr Norih Key Largo sewer system components (the "North Components'.); and 3 WHEREAS, the County has determined that it currently has cash reser.;es on ha nd in the form of i nfrastructu re sa les su rtax reve n ues (r efe rred to hereafter as ''Tax Revenues") and possesses capacity for the issuance of infrastructure sales surtax bonds sufficient to fu nd a commitment to the District in an <'Jmount of Twenty Mill ion Dollars ($20,QOO.OOO} (referred to hereafter as the "fnfrastructure Sa1es Surtax Bond Proceeds'} and WH EREAS, the construction of the North Compo nents will provide central vo/astewater se r\fjce to ad d itiona I "Hot Spot" areas identified in ttlC Master Plan; and WHEREAS, the District has informed the County that the design and construction processes for the P rajset C<=:ln com mence upon the Cou nty's ag rcement to reimburse the District for up to Twenty Million OoJlars ($20,000,000) (less County Costs as defined herein, the "Reimbursement AmDunt"} of the costs to be expended by the District to design, permit and construct the Project; and WHEREAS, the County has determined that it is in the best interest of all of the citizons of the County that Tax Revenues a nd infrastructure Sa les Surtax Bond Proceeds, in such a mounts as shall be determined by the County to be appropriate and prudent, shall be applied to satisfy the Reimb u rsement Amou nt to be provided for the construction of the North Com ponerlts; NOW, THE REFORE, in consid eration of the mutual covena nts, representations a nd prom ises set forth In this Agreeme nt a nd for other good and va I uab Ie consideration each to the other, receipt of which is hereby acknowtedged by each party, the County and the District hereby agree, stip ulate a nd covenant as follows: 4 SECTION 1.01. ARTie LE I DEFINITIONS WORDS AND TERMS. VoJords and terms used herein sh all have the meanings set forth below: "Agreement" means this Interlccal Agreement. "Authority" means the Florida Keys Aqueduct Authority. "Authorized Representative" means the official of the County or the District authorized by ord inance or resolution to sign documents of the nature id e nMied in th is Agreement. "Cou nty Bonds" means the I nfr3structure Sa les Su rtax Rev8n ue Bonds previously issuod or to be issued hereafter by the County and any other indebtedness incurred by the County, any part of which may be used to fund the County's obligations hereunder and which shall include Resolution No. 077-2003. adopted. by Ule County on February 19, 2003, as amended and supplemented. "County Clerk" means the Clerk of the Circuit Coun for Monroe County, Florida, as ex-officio Clerk of the Board of County Commissioners of Monroe COUrlty, Florida, and SUC~l other person as may be duly authorized to act on his or her beharf, "Cou nty Costs" in eludes a(1 costs of preparation and issuance of tho County Bonds, any undefV1lriter's discount insurance premiums. including regal and financial advisory fees and expenses, origfnal issue discount for the bonds and other "Costs" (as defined in Bond Resolution No. 077-2003) costs incurred by the County to compens3~e legal, engineering and other advisors associ3ted with supplements to the Master Plan, review and oversight of the Project and p reparation of i nterlocal ag reements and other 5 resolutions and agreements required to permit t!le County to issue and use 1he proceeds of 1he Infrastructure S.:=Jles Surtax Bond Proceeds for the purposes identified in th is Ag reement. Call nty Costs a Iso sha II incl ude any costs of a si m itar natu re incu rred by the County to perform the review, inspec~ion. audit and monitoring functions identified in this Agreement. "District" means the Key Largo Wastewater Treatment District. "Equivalent Dwelling Units" or "EDUs" means the standard unit of applying System Developm ent C ha rges, as descri bed 13ter in th is Agreement For res:dent~a I :mproved parcels, a minimum of one EDU shall be applied to each family resideniral dwel'ing. condominium unit and mobile home. EDUs for multi-family structures is determined by the number of dwellfn~ umts {~, six units in a mlJlti-family strllc1ure wdl constitute six EDUs). For non-residential improved parcels of propArty, the number of EDUs wi If be calcu lated based on a formula to be determ ined by the District A minimum of one (1) EDU shall appfy to each parcel. "North Com ponents II mea ns the wastewater treatment, collection, transmission arld disposal facilities to be designed, permitted and constructed by the District as specifically identified rn this Agreement to provjde wastewater service to a portion of the Key t..argo area at unincorporated Monroe County. "Operations and Maintenance Expenses" means the costs of operating and maintaining the System determined pursuant to generally accepted accounting principles (as applred to state and local governments), exclusfve of interest on any debt payable from system revenues, depreciation, and any other items flot requir~ng the expend iture of cash, 6 "Project" means the design, permitting. construction and operation of the Norih Components. The Project. and projected Project Costs. are described in greater detaii in Appendix A, ~","~ich is attached hereto and in~Ofpo~ated herei'l "Project Costs" means the CJst of designing, permltting. and constructing the North Components, including the labor, materials and equipmel1t and general and ad m in i s:rative casts ; n connection with th e d esig nand cor:st ructl 0 n of the N o'i''1 C:Jm pone nts under contra cts to be entered by the Oistr:ct with respect to the Projest Project Costs may include costs expended by the District in connection with the design and construction of the North Components, regardless of the date of expencit~JrC, and regardless of vkettler they were expe'ldcd pr'o~ to the date cf this Agreement. Project Costs incurred prior to the date of this Agreement shall be reimbursable subject to approval of the County's bond counsel as being consisj.ent with Section 3.02(12.} of this Agreer~)e~lt Project C05~S sh111 not inc!-clde Operations ard r'/Iai'ltenwlce Expenses or County Costs. The County and the District acknowledge and agree that tt1e Project Costs will exceed Twenty Million Dorlars {$20.00Q,OOQ) and both parties agree that the O:strrc::: ~"fill be obiigated to secure addit:'onal fInancing to compfete the Project. "Reimbursement Amount" means the County's reimbursement to the District of Project Costs expended by the 0 istrict to design, pe rmit a nd construct the North Components 'NhlCh will be an amount of Twenty Million Dollars ($20,OOO.OOOi. less CO;.Jnty Costs. The Rei'nbursernent A!Iloun~ shall inch;de an advance of funds in 1he 3 III ount of One Mi llion Do Ija rs ($ 1.000,000) to the 0 istrict payable by the Co unty as provided jn Sectior. 4.09 of this Agreement. 7 "System Development Charges" means connection fees, capital expansion fees. utility tmproveme,'lt fees or other ~irnilar fees and charges collected by the District as a cO:'ltnb ut!on :O'l.fa rd costs. SECTION 1.02. CORRELATIVE WORDS. V'Jorcs of the masc~ll,ne gender s~lall be understood to include correlative vwrds of the feminjne and neuter genders. Unless the context shall other\....ise indicate. the singular sha:1 ~nclude the plural and the word "person" shall include corporat~olls and associatio.'ls, including pub;ic bodies. as well as natural persons. SECTION 2.01. ARTJCLE II INTERLOCAL AGREEMENT PURPOSE OF 'NTERlOCAL AGREEMENT, The purpose of this Agreemerlt is to continue the cooperativG efforts between the County and the Oistric: to develop ce.1t'3'ized \V8s!ewater treatment col!ection and disposa:. ser'Jices en a regional basis in t:1e most efficient manner and at the most reasonabfe cost practicable so as to best meet the public's needs and serve the public interest 8y this Ag reement. the 0 istrrct agrees to in!~iate a r d comp lete corstrlJction of the North Components which will serve approxi.':Iatel'y' 2,500 Equ.'....ajent Dv.'eHing Units ('EDUs") initialty and 13,000 EDUs upon completion of the entire regiOnal system. The Maste r Plan ide ntifjes the a rea to be served by the Norih Compane nts as in cl ud i ng t~le fo u r hig hest pri ority a rea s For centra I wastewater service :n the uppe r keys. Centralized wastewater services currently are not available to businesses and resrdences to be served by the North Componen~s. The prevaifing method of Vi3stewater cDllection, treatment and disposal in ~he area to be seryed by the Ncrth 8 Com ponents cu rrentiy is the util izatjon of on-site sewage trcatn ;cnt and d[spasa1 systems, includ ing package ria nts, cess pits and septic systems. The cess pits, package prants and septic systems provide inadequate sewage treatment resulting in pDllution of near shore water. dam agir:g of the livi n 9 coral reefs, a nd other adverso affects on the health and welfare of the cihzens of the County and the County's tourist based economy. T~le County is required to e!iminate the uso of coss pits and septic systems it: Hle Key Largo area of thp. lowH keys and desires to make available to the residences and bustt1esses of tile Key Largo area a regional vo/astewater col~ectton, tre<3tment and disposal system. The construction of the North Components wilj improve, maintain and protect the health, safety and welfare of the citizens of the County a nd serves a pu blic purpose. ARTICLE III WARRANTIES, REPRESENTATIONS AND COVENANTS SECTION 3.01. WARRANTIES, REPRESENTATIONS AND COVENANTS OF THE COUNTY. The County warrants, rep resents and covena nts th;:Jt: (1} The County has ful! powor and authority to entor into this Agreement and to comply viith the provisions hereof. (2) The County currently is not the subject of bankruptcy. insorvency, or reorganization proceedin~s and is not ill default of, or otherwise subject to. any agreement or any law, administrative regu:ation, judgment. decree, note. resolution, charter or ordinance which would currently restrain or enjoin it from entering into, or corn plying with, th is Ag reeme nt. 9 (3) There is no material action, suit, proceeding, inquiry Of lnvestlgation, at law or in equity, beforo any cout1 or public body. pending or. to the best of the County's k.'lowledge, t1reatened. ~'./hich seeks to :estrain or enjoin tr.e County fr~m o~te(ing into Dr camp lying with th ~s Agree ll1er~:. (4) The County covena nts that th is Ag reement is ente red into for the purpose af formalizing tne agreement of the CC)unty to use Tax Revef"lues and Infrast'ucture Sales Sur1ax Bond Proceeds in an atno~nt sufficient to roimburse the District for Project C os!s up to the Re im bu rseme~t Amau nt identified in this Agreement d tld that such expend~ture of bord proceeds \.....ifl in all events ser\/e a public purpose. The County covenants that it wiil coordinate with tre District and 3udit ~he D,st:-ict records as .'":".a." be necessa,'y to monitor whether the Project is progressing in the manner contemplated herein and shall be completed to fulfilj the public need identified in this Agreement. SECTION 3,02. OF THE DISTRICT. WARRANTIES, REPRESENTATIONS AND COVENANTS The 0 istrict wa rrants, represe nts a nd cove n atlts that: (1) The 0 i strict has fu II pcwer and auth ority ~o enter i'lto tll is Agree:nent and to compiy with the provisions rereof. (2) -r he Distri ct currently is n at the subject Of ban kruptcy, insorve ncy, 0 r reorganization proceedings and is not in default of, or othertlise subject to. any ag"eement or any law. administrative regulation, judgment. decree note, resolution, charter or ordinance which would curren(ly restrain or enjoin it from entering into, or complying with, this Agreement 10 (3) There is no materia( Llction, su it. proceed i ng. i nqu i ry or investigat[on, at :3'8 or in equit'f, before an,! coun or public t,ocy. pending or. to the best of the Dlstrict's knDwledge, threatened, which seeks to restrain or erjoin the District from elltenng into Of complying with this Agreement. (4} All perm its, rea I property i !lte rests, and app rova I s req U I reo to COt' st~u c! am! complete the PrOject t13ve been or Villi be obta,ned for construction and use of the pJ'oject. The District kn8vo's of 1C reason why any future ~cquircd permits. rea! property interests or approvals are not obtainable. (5) The District shari undertake the Project on its Q\.'o/n responsibflity and shall apply Tax Revenues and tre proc:ccds of the COlwty Bonds crly to payor 'eimturse .....alid Pmjec: Costs (6) To the maximum extent permitted by law. the District shall release and hold ha rm less ttiG Co J nty its officers. .'I',cmbe rs, o;n:) Icyees a nd co ntra s~.ors frcm an y daim proximately ci3used by the District's actions or omissions in its planning, engi nee ri ng. ad m i n istratl on. a nd co n stru ction activities rega rd i nd the P rojec~ and the District's operation of the Project (7) The District shan comply WiUl aH applicabfe State and Federal laws, rules, a r d reguia:iors . To th e exte n t t")at a ny ass ura n ce, rep rese [l tatioll, 8f cove.'1 a nt of th e District contair~ed herein requires a future action. the District shalj take Such action as is necessary for compliance. (8) The District shall maintain records us!ng accounting pr;'rlciples established and accepted by the Government.:::ll Accounting Standards Board. As part of its bookkeeprng systen, the Distrrct shall keep accounts associated with the Project 11 sep arate < ro '':1 all other dCCOU nts OC the District and i~ s h a~1 keep accurate re:=::o'ds of all e>::penses and expepditures relating to the Projed so as to facilitate to the greatest ex~cnt possible the Cnurty's ability to review and aud't Project Costs in the manner provided by th is ^g reemellt. (9) The Oistrict agrees to construct the ProjEct in accordance with the Project schedu Ie pro'.Jld ed in Section 9. D2 hereof. I: 10) T he D~strict sh afl secu re a ny add it!o~ a I fund s necessary in an amou nt sufficient to cQ,llplete the Project Oil or before the date identified in the Project schedule and shall pursue comptetion of the Project in the most expeditlOus manner possible considering the public purpose to be served by this Agreement but also wIth proper GO n side~ati 81i for t~1€ need f.:y s':)l;nd uti. ity mar agel1lent i'l the comp lefo~l of tne P rcjec:. ( 11) The District cove tl8 nts that th is Ag reemer1 t :s entered into for th e purpose of forrY!a'izing the ag."cement of the County to use Tax Revenues and Infrastructure Sales Sll'tax Bond Proceeds in an ar.->ount sufficient to reimburse the District for funds expended to design, permit and construct the Project up to the Renr.bursement Amount rdentijied in this AgreE~ler:t and that such expenditure of Tax Revenues and Jnfrastructure Sales Surtax BO'ld Proceeds will it: all events serve 8 publ'c purpcse. /12) T~e District shari take no action or omit to take necessary action that 'Nil~ adversely affect the tax-exempt status of the County Bonds: the DistrIct will take such actjon as is reasonably requested by the County fn connection with the County Bonds so as to ailow the County to retain the tax-exempt status of the County Bonds The holders of the COi.J~ty Bonds shafl be considered third pany beneficiaries for purposes rof this covenant. 12 (13~ The District shall not enter into any contract or other instrument as described in! ntern ar Reven ue Service Revenue P raced ure 97-13, sections 141 ~hroug h 145 of the Internal Revef1ue Code of ~ 986, and applicable rcgulatolls, as rr.ay be amended. with respect to the n1anagetl1cnt of the North Components without the prior written consent of the County. SECTION 3,03. LEGAL AUTHORIZATION. Upon s:gnlng this Ag~eement. the COU!lty's legal counsel hereby expresses he opinion. generally, that this A]reement has been duly au1horized by the County and shall const~tute oJ valid and binding legal obi igat io 1 of the Cell nty e rlforcea ble in areo rd ance with its term s upon executton by o s-th pa rties. provid cd. h OVo'C'Ier, the e nforceabiJity the reof may b e subject to bankruptcy. jnsolvency, reorganization, moratorium and other similar laws affecting creditors' rights ge'lerally and subject. as to enforceabirity, to general principles of equity ard the exercise of jl,d:cial clscretion. SECTION 3.04. LEGAL AUTHORIZATION. Upon signing this f\greement, the District's legal cout1sel hereby expresses the opinion, generally, that this Agreement has beetl duly authorized by the District and shall constitute a valid and binding legal obligation of ihe District enforceable in accordance with its ~erms upon execution by both parties, provided, however. the enforceab'liiy thereof may be subject to bankruptcy, insolvency. reorganization. moratorium and ott-.er similar raws affecting cred:tDrs' rights genera:ly and subject. i1S to enforceabilly', to general principles of equjty and the exercise of judicial discretion. SECTION 3.05. AUDIT AND MONITORING REQUIREMENTS. The District ag cees to tile fcllm.....ing aud it ar:d m 0 'J itori '19 'ecu ireme nts. 13 (~) Firal Audit Report. \Nitr,in StX (6) months afte~ completiotl of the Project as demons!rated :::J1' the District plac.ng the Project into se"'Ji:e, the D:strict shall sub1l:t to the County a Pro;ect.speclflc audit report (the "Final AlId~t Repori") identifying all related Project Costs, The Final Audit Report shall idertify air Reimbursement Amounts rccei-../cd from the County, total Project Costs, and otherwme describe the District's cornpfiancG with the term s of this Agreement. The 01 strict sha II cause its auditor to r~ :)~ify the Cou nty i m med iate Iy if anyth i ng comes to the aud itor's attentlo n d u ri r"Jg the examination of records that would lead the audItor to question whether any costs are aHowabfe Project Costs under this Agreement. The final determination of whether such costs are a pp r8p riate Project C 05tS srli311 be made b~{ the COl.nty. (2) Record Retention The Distr'ict shali' retain sufficient records demonstrating its compliance with the terms of this Agreemer.t for a period of five years ~rom the date that the FI n al Aud it Repo rt IS issued, and sha II aflow tne Co u n:y, or its desig nee, or the Cau nty C lei k, access to such records upon req uest Tile Oistri ct shall e'1sure that audit working papers also are made avaiiable to the County, or its designee, or the County Clerk, lJ po n req uest. for a pe riod of five yea rs from U~ e d ate that the Fi nal Audit Report is issued, (3) fo;1Qt!.rr9.r..i'}g The District agrees that tie COl.nty's monito~ing p"ocedwes may indude, but not be limited to. review of contracts related ;0 the Project as welj as enginecring designs and platls, on-site visits by County staff or other designee at Prcject sites and the Dish::t's administrative of+ices, limited scope audits, .<lndior otr.er procedures By entefing into this Agreement. the District agrees ~o comply and cooperate ~\'Ith any monitoring procedures and processes deemed appropriate by the 14 County. In the event the County determines at any time that a limited scope audit of the District is a pprop riate, the District ag rees to com ply with any add itional instructtons provided by the Co u nty to th e Dtstrict regard i ng such aud it The 0 istrict fu nher agrees to comply and cooperate with any inspections, reviews, invesbgations, 0 r aud its deemed necessary by the County Clerk or other auditor of County busine::>s. Any costs incurn.=~d by the County to peticrrn any review. audit and other mon~toring activities permitted under this Agreoment shaH be included as COL.:nty Costs. (4) Reporii nq. The 0 istrict sha I! p rovid e to the County a copy of a ny reports, management letters, or other information required to be submitted to lenders or other persons as may be required pursuant to the terms of the Distrid's Senior Revenue Obligations, state revolving loan fund documents and any documents rela1ed to the Project. Such copies shall be forwarded to the County at the same bmo as such d OCU'11ents a re provided to thi rd pa nics p u rs ua nt to the terms of the rospecttve documents. ARTie LE IV PROJECT lNFORMA nON SECTION 4.01. PROJECT CHANGES. Proposed Projed changes and addenda other lhan potentiaf extensions of wastewater facilities to additional areas with i;'i the Oi strict shaH be subm it1cd to the County DrlOf to acceptance by the District to perm it the County to insu re Blat such cha nges wi Ij not adversely a ffecl exclusion from gross in~ome for federal income tax purposes of itlterest on the County Bonds, or othervvise cause the County to incur any penalties. costs or reporting requirements under the terms of the Cou nty Bo nds, The District shall not approve any ch ange or 15 add8nd~rYi if the Cou nty objects a nd such objection is based u po n the County's determir.::ltion th;:3t any of the events identified in the prer..cding scn~!;nce could occur if the change or add end u m were to be a pproved by the District. The District a nd the County will agree to procedures aHowing for prompt review of any changes and addenda, and the parties will use their best efforts to rnwimize any delays in review and 3pproval of them. SECT10N 4.02. TJTLE TO PROJECT SITE. 'r he District shalj have all interest in rea I property sufficiont for Ole construction and rocation of tho Project free and clear of liens a:ld er~cumbrances whidl would impair the usefufness of such sitos for the intended use. F.:vidence of c!ear tit\:2' s~lafl bo a condition precedent to the County's obligation to reimburse the District for Project Costs. The County understands and acknowledges that, except fo r the wastewater treatme nt plant a nd other facil ities for \N~l idl the 0 istrict be Ijeves ;:3 possessory ;nterp.st in land is req ufred, the [J istrict intends to con struct all project compo nents within easements. SECTION 4.03. PERMns AND APPROVALS. The District shal~ obtarn all permfts J nd a ppfO'JaJs req u ired for construction of the Project 0 r portion of the Project funded under this Agreement SECTlON 4.04. ENG INEERING SERVICES. One or more profess ional ongineers, registered in the State of Florida, shall be employed by, or under contmct with, the District to oversee design, permitting and construction of the Project. SECTION 4.05. PROHrSlTlON AGAINST ENCUMBRANCES. The District is prohibited from selling, leasing, or disposing of any part of the North Components unless the wdtlen consent of the Cou nty is first secu red. The Cou nty shall con 58 nt to a 16 proposed sale. lease or disposition sofely u po 11 the cond ition that the C ou nty IS a ble to obtain an opinion of counsel that such sale. lease or disposition shall not adversely affect exc~us io n from gross income fo r federa I i I1COl1le tax purposes of interest on the COLI rrty Bonds, or ot~lenNise ca use the Co u nty to in cur pena Ities, costs 0 r reporting requirements under the torms of the County Bonds. This prohibition shan continue until the County 80nds reach maturity or are other"''.Iise redeemed in fult in ~ccordaJlce with the terms of the County Bonds. SECTJ ON 4.06. COM PLETI ON MON EYS. ! n add ition to the Rei mbursement Amount to be rejmbursed to tile District by ~he County hereunder; the ~istrict covenants that it has obtained: or will obtain, suffic!ent moneys from other sources to completo ccnstruction and place the Project in operation on, or prior to. the date specified in Hlis Agreement. Failure of tile County to approve a Reimbursement Amount above the level identified in this Agreement shall not constitute a waiver of tho Distrrct's covenants to complete and place the Project in operation in a manner consistent \11/iHl the terms of lh is Ag reernent SECTION 4.07. CLOSErQUT. The County shall have the righ1 to conduct a fl nal inspection of the Project and Project records subsequent 10 notification by the District that the Project has been placed into service. f::ollowing the inspection, deadlines for submitting <1dditiotlal reimbursement requests, if any. shall be estabfished along w~th deadlines for comp1eting additional requirements as may be necessitated by the County Bonds, if any. Dead~ines and the identiFication of addi~ional requirements, if any, shall be incorporated into th~s Agreement by amendment. 17 SECTIO N 4.08. REIMBURSEMENTS. Reimbursements to the District shall be made onry by the County Clerk and only when the requests for such reimbursements are aCCOtl,pan ied by a certificdtion from tho Co u nty's En g:neeri ng Department that such costs are proper Project Costs. Reimbursements shall be made directly to the District fer Project CDstS. Reimbu rsement for Project Costs shall be made on Iy after receipt by the County of th e fol~owi ng from the District (1) A completed reimbursement request form in the form attached hereto as Appendix B signed by the District's Authorized Representative. Such requests must be accompanied by an itemized disclosure of the materidls, labor, or services provided ~n s ufficiel1t d etai I to identify the n atu re of the work perforrTled ~ tho cost or cha rges 1m su ch 'Nark; and the person providing the service or performing the work. (2} A certificaUon signed by the Oistr1ct's Authorized Representative as to the current estimated costs of the Project; that the materials, labor. or services represented by th e invoice have been satisfactori~y purchased periorrncd, or received and app lied to the Project: a nd that tho District was req ui red to incur such Project Costs under the terms and provisions of tho contrar.t(s) betvveen the District and third partios providing services necessary to compJetion of the Project (3) ^ certification by the engineer responsible for overseeing construction indicating the percentage of the Project ~ompleted as of the date of such certiffcation: stating that the equ~ptl1ent, materials, labor and services represented by the construction invoices have been satisfactori Iy purchased or received. and appl ied to tlle Project in <3ccordance with construction contract documents; stating tllat payment is in accordatl co 'Nith constru ction contract provi sions: stating that con struction, up to 1he 18 ooi""lt of the reimbursement request. is ill ccmpliance with the contract docL.;mel1ts~ a:id identifying a;1 additions Of deletions to the Project WhiCh have materlal[y altered the Project's pe~ormance standards. scope. or purpose. (4) Such other cerLficates or dDcuments by engmeers. attorneys, accountants contracto~s, or suppliers as may reasonably be required by the County. SECTION 4,09. ADVANCE, The County ami the Distric~ recogr}lze that the District is in need of capital furds to initiate the Project. Recognizing this need, the CO~Jnty agrees to provide the District wit1 ar advar.ce of funds to be L;sed by tre District solely to pay Project Costs in the amount of One Million Dollars ($1,000,000) (the . Advance''j. which Sur'r1 shall be ::;redited against the Reimbursement Amount which the Co u nty IS obi igated to provjde to the District un d er th is Ag reement. T~le Ad vance s~~all be oaid by the County to the District within thlriy (30) davs Of execution of this Agreement by the County. f~s the Advance is spent by the Distri~t. the District shall complete the Re~mbursement Requ!s!tion form provided in Appendix B and supply the CO!..J'lty sucn D~her documents and i'iformatio.'1 as required in ~r.is Agreemem as necessary to permit tho County to confirm that the Advance (including alj investmont earnings the,eon) has been used solely for Project Costs. The Distr-ict agrees not to invest the Advance in investments yjeld~ng greater than 3.66f!o per annum. The District shall prO\/lde the County with biannual reports Of the mvestments and earnings refating to the Advance untd such time as the ^dvance and all investment earnings thereon have bee n spent 19 ARTICLE V RATES AND USE OF THE SEWER SYSTEM SECTION 5.01. NO FREE SERVICE. Except as may be roqlJired by applicablo law, the District s~lall net permit connections to, or furnish any scn.rices afforded by I the No rih Com ponents with out mak ing a charge therefor based on the Oistrlcfs connection pol icies. SEeliG N 5.02. MANDATORY CONNECTIONS. The District shall adopt as necessary, and enforce req u i rem ents consiste nt with <.l ppficab Ie I aws for the owne r, tenant or o::clJpant of each building located on a lot or parcer of land for which the Key La rg 0 Sewe r System is avadab1e to connect such bui Id i ng to the Key La rgo Sewer System. S ECTI ON 5.03, MAl NTE NANCE OF THE NORTH COMPOENTS. The District shall operate and maintain the Key Largo Sewer System in a proper, sound and econornicai manner and shall make al~ necessary repairs, renewals and replacements. SECTION 5.04. ADDITIONS AND MODIFICATIONS. After completion of th e Project, the District may III a ke a ny add itiorls, modiiicatio n s or ! mp rO\lements to the North COlT'ponents which the District deems desirable and which do not materially red uce the ope rational i nteg rity of .;:l ny part of the Key Largo Sewe r System. All such renewals, repf acements I add itions.: mod ifjcations and imp rOVGrnents sh (111 become part of the Key La rgo Sewer System, SECTION 5.05. COLLECTION OF SYSTEM DEVELOPMENT CHARGES. (1) The District tlh at! collect System Development Charges to fund a portion of the capital costs of the North Components, The District and the County recognize that 20 System Development Charges should be estab!ishEld at sufficient levels so as to eq u itab Iy assig n the capital costs of constructi ng sewe:' systems to those users that are ~m posing the need for construction of the system as well as benefiti ng from the enhanced use and enjoymeflt of developed property bestowc;d by the ex~stence of a central sewer system. The existence of a central sewer system enhances lhe use and enjoyment of improved proper.y by: (a} faciJitatmg the development of property and increasing the use and enjoyment thereof; (b) positively affecting the marketabrlity and market value of the property; (c) providing a moans to best protect ttle quality of the surrounding water supplies; (d) properly and safely disposing of s0wage generated from improved properry: and (e) enhancing improved property lhrough the environmentally responsible use and enjoyment of the property. (2) The Call nty and the District further recogn Ize that Ule commitme nt to co Itect an equ itabJe and reasonable po rtion of the capital cost of constructing the Key Largo Sewer System from tho proposed use rs of the Key Largo Sewer System wi II faci litate a nd maxi m ize access of tile County and the 0 istrict to ad dilional Federal and State funding assistance for the Project and similar regional sewer projects, including system expansions, to be constructed by the County and the District (3) The District has confirmed that has reta ined an expe r1 in ubi ity rates and fi nancial plan ni ng to del iver a report recommending a n appropriate Systom Development Charge per EDU to be collected trom users of the Key Largo Sewer System. The County and the D[strict recognize that the total capital cost of providing wastewater service to future users of the Key Largo Sewer System may exceed Ten Thousand Dollars ($10,000) per EDU. By establishing a System Development Charge 21 in an appropr~ate amount. the District and the County adnmvledge that they will be ab:e to maximize the le.....et of no cost and/or low cost Federal and Sta1e fU''lding assistance for the construction and future expansion of the Key Largo Se'oNer System and similar systems to be constructed in unjncorporated Monroe County. The County and the District furiher recognize that the collection of System Development Charges serves to red u ce the month Iy cost of service to users and th us red uces the rates which use rs would be required to pay to the District on a monthly basis. (4) The County and the District further agree that the System Development Charge may be collected by the District and paid by the users of the Key Largo Sewer Sys1em over a period of time and that fhe Dlst,ict may also recover the capita~ costs of the Project through such other capital recovery mechanisms as may be available to the Dis~rict including. but not limited to. non.ad valorem assessments. ARTICLE VI DE FA U L TS AND REMED IES EVENTS OF DEFAULT, Each of the fol.:owing events IS SECTION 6.01. hereby declared an event of default: (1) Failure by ~he District to compiy substantially with the provisions of this Agreement or fa ilure in the performance 0 r observa nee of any of the CQvena nts or a:::~ions reql.jrred by this Agreement rf such faiiure shall continue for a period of 60 days after written notice thereof to the Dismct by the Cou nty. (2) Any warranty, representation or other statement by. or on behalf of, the District contained in this Agreement or rn any information furnished by the District in 22 compliance with, or in reference to, this Agreement. 15 reasonably befieved by the COiJ nty to be materia Ify false 0 r m is1ead i~lg. (31 An order or decree entered, with the acquiescence of the District. appointing a receiver for the District or if such order or decree, having been entored without the consent or acquiescence of the District, s~1all not be vacated, discharged or stayed on appeal wi~hin sixty (60:: days after the ent'Y thereof (4) Any bankruptcy. insolvency or other sim:lar proceedmg institu~ed by, or against, the District under federal or state bankruptcy or insolvency law now or hereafter in effect and. if instituted against the District. is not dismissed within sixty (60) days after filrng. (5) The District shall give the County Immediate wri:ten notice if any bankruptcy, insolvency or other simifar proceeding is instituted by or against the District or if a receiver is appointed. ::6) For purposes of this Article VI, substan~ial compliance means ~hat the District wilj be responsible for compliance with all material provisions of this Agreement. but that minor or insignificant deviations that do root cause prejudice to the County wrll not fesul~ it, the Distr[c1 betng in default SECTION 6.02. REMEDIES. Upon any event of default, and after first attempting to resolve the tssLte pursuant to Section 7.08 of this Agreement. the County may enforce :ts rlghts by any of the fo:lowing remedies: (1) By refusing to reimburse the District for any Project Costs incurred by the District subsequent to the date that the County prov.des written notice by facsimile copy or overnight delivery tha~ the District is in default under this Agreement and tIle County 23 shalf be relieved of any liabihty for such Project Costs unless otherv~ise agreed to by the County In vllrit:ng: (2) By mandamus or other proceeding at law or In equ~ty, to require the District to fulfill its obligations under this Agreement. {3) By action or suit in equity. to en;oin any acts or things 'Nhich way be un!aVJful or in violation of the rights of the County, (4) By applying to a CQI,..1rt of competent jurisdiction for the appointment 0; a receiver to manage the District, establish and collect fees and charges. or issue debt. and apply the revenues to the completion of the Project atld the Disirlct's obligations u nde r th:5 Agreement SECTIO N 6.03. DELAY AND WAIVER. No delay or omission by the County or the District to exercise any right or power accrU1ng upon an event of default shall impair any such right or power nor shari be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised as often as may be deemed expedient. No waiver of any default under this Agreement shall extend to or affect any subsequent event of default, whether concerning the same Of d~fferent provisjon of this Agreement, nor shall slIch waiver impair consequent rights or remedies of the County or the District l-tereJnder. ART~CLE VII GE N E RAL PROVIS IONS ACCESS TO PROJECT SITE AND PLACES OF DISTRICT SECTION 7.01. RECORD RETENTION. The District shall provide County representatives with access to Project sites and administrative offices (as well as other offices where District records 24 may be retained} during normal busi,1ess hours The District shall cause its engineers and contractors to cooperate in the fulfillment of the District's obligations Ilereunder and shall require cooperatfon \Nith County representatives during Project ir,spections including, but not limited to, m2lking available working copies of contracts. invoices, purchaso documents. plans, maps and specificahons. SECTION 7.02, ASSrGNMENT OF RIGHTS UNDER AGREEMENT. Neither the County nor the District shall have the right to assign rights Of obligations created by thlS Agreement to .9 ny thjrd party vitt; 0 ut tho 0 rior wrrtten consent of the other pa riy. SEcnON 7.03. AMENDMENT OF AGREEMENT, This Agreement may be amended in writing except that in no even! shall any amendment be permitted whicll is inconsistent with the terms and covena nts of the County Bond s. SECTION 7.04. ANNULMENT OF AGREEMENT AND THE D1STR1CT'S RESPONSIBILITY TO THE COUNTY. The County may unilaterally annul this Agreement jf the District has not drawn any reimbursements of ProJect Costs within eig hteen (18) mOfltn s after tho effective d ate of th is Ag reement or if the C ou niy cossesses reasonabfe certainty. i1 the Cc-un!y's sole discreticr. that such inaction would aversely effect the exclusion from gross income for federal income tax purposes of interest on the Cour.ty Bords or othenivise cause the County to incur any penalties. costs or reporting requirements under ihe terms of the County Bonds, In the event that the tax exempt status of the County Bonds is impaired. arbitrage or other tax penatties are incurred or the County incurs any other costs or peflafties resulting from the District's actions or inaction, the Distnct shal! be responsible to pay all costs incurred by the County as a result of such evetlt or events. includ!ng attorneys fees, penalties and 25 costs of a ny kind or manner associa led with such illlpa irment of tax exempt status, arbitrage or other tax pena~ties or olher event. SECTION 7.05. 5 EVERABI L1TY. If any term, covenant. cond ition or provision of thrs Agreemen1 (or the appjjc~tion thereof to any circumstance or person) sha II be decla red inva~id or unenforceable to a ny extent by .3 co u rl of competent jurisdiction. the remaining terms, covenants, conditions and provisions of this Ag reement shall not be affected thereby; a nd each rema inirlg term, covena nt, cond itiQn and provision of t~lis Agreement shall be \land and shall be enforceable to the fullest extent perm iHed by law un less the enforcement of the rema In i ng te rrn s, covenants, conditions ~nd provlsfons of this Agreement would prevent the accomplishmenl of the original intent of th~s Agreement The County atld District agree to reform the Agreement to replace any stricke n proVfsjon with a val id provision that comes as close as possible to the intent of the stricken provision. SECTION 7.06. ATTORNEY'S FEES AND COSTS. The County and District ag ree that in the event a ny cause of action or adm i n istrative proceeding is i rl itiated or defended by any party relative to the enforcement or interpretation of this Agreement, the preva il i ng pOl rty shari be entitled to rea so nabre attorneys' feas, cou rt costs, investigative, and out-af-pocket expenses, as an award against the non-prevaHing pariy, and shall includo attorney's fees, court costs, investigative, and out.of..pocket expenses I n a ppeHate proceedings, Mediation proccedi ngs initiated a nd conducted pursuant to this Agreement shall be in accordance with the Florida Rules of Cfvil Procedure and usuat and customary procedures required by the circuit court of Monroe County, 26 SECTION 7.07. CLAIMS FOR FEDERAL OR STATE AID. COLinty and District agree that each shall be, and is, empowered to apply for, seek, and obtain federal and state funds to fur1her the Project; provided that all applications, requests, gra nt proposals, a nd fund ing so I!Cltations shall be prov[ded to the other party prior to submission. SEe TION 7.08. ADJUDICATION OF D1SPUTES OR DISAGREEMENTS. C au nty and 0 istrict ag ree that a II dIsputes and disagreements sha II be attempled to be resolved by meet and confer sessions betwec n representatives of eacll of the parties. If no resolution can be agreed upon within thiriy (30) days after the first meet and confer session, the issue or issues shall be discussed at a joint public meeting of the governing bod ies of the Cou nty and District. If the issue or Issues are sWI not resolved to the satisfaction of bott: the County and Dfstrict then either shall have Hle right to seek such relief or remedy as may be provided by this Agreement or by Florida law: provided, 110wever, the unresolved issue or issues shall be submitted to mediation prior to the ~'n stitution of any admrnistrative Of legal p roc~ed i ng. SECTIO N 7.09. NOND rSCRIMrNA TION. County and District agree that there will be no discrimination against any persoll, and it is expressly understood that upon a determ ination by a co u rl of competent ju risdjcUon that d iscrimi nation has DCCU rred, this Ag reement a utomatically term inates without any further actron on the pa rt of any party, effective the date of tfle CQuti order. County and District agree to comply with all Federal and norida statutes, and .311 local ordinances, as applicable, relating to notldiscrimil1ation. These inciude but are not limited to (1) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or 27 national Origin; (2) Section 504 of the Rehabilitation Ac1 of 1973, as amended (20 U.S. C. s. 794), wh ich proh ib its discrim inat,on on the basrs of hand ica p; (3) The Age Discrimination Act of 1975, as amended (42 U,S.C. 55. 6101.61 07), which prohibits discrimination on the basis of age: {4j The Drug Abuse Office And Treatment Act of 1972 (P.L. 92~255), as amended, relating to nondiscrimination on the basis of drug abuse; (5) The Comprehensive Alcohol Abuse And Alcoholism Prevetltion. Treatment and Rehab i'itatjon Ac~ of 1970 (P. L. 91-616), as a metlded. relating to nond iscr(m illation on the basis of alcohol abuse or alcollolism; (6) The Public Hea[th Service Act of 1912, SS. 523 and 527. (42 U.S.C. 290 dd-3 and 290 ee-3), as amended. relating to confidential ity of a Icohol and d rug a buse patient records; (7) The Americans With Disabilities Act of 1990 (42 U. S, C, s, 120 1 Note), as may be am ended from time to time, relating to nondiscrimination on the basis of disability: (8) The Florida Civil Rights Act of 1992, (Chapter 760, Frorida Statutes, and Sect~on 509.092, Florida Statutes), as may be amended from time to time, relat[ng to nondiscrimm3tion; (9) The Monroe County Human Rights 0 rdinan ce (C h apter 13, Article VI, Sections 1 3-101 tl1 roug h 13-130). as may be amended from time to time, relattllg to nondiscrimination: and {10) any other nondiscrimrnaHon provisions in any federal or state statutes or local ordinances which may apply to the parties to, or the subject matter of, this Agreement SECTION 7.10. COOPERATION. In the event any administrative or legal proceeding is instituted against either party relating to the formatron, execution, performance; or breach of this Agreement. County and District agree to participate, to the extent required by the other party, in ail proceedings, hearings, processes, meetings, and other activities related to the substance of this Agreement or provision of 28 the services under this Agreement. County and District specifically agree that no party to thts Agreement shall be required to enter into any arbitration proceedings related to this Agreement or any Attachment or Addendum to this Agreement. SECTION 7.11. COVENANT OF NO INTEREST. County and District covenant that neither presently has atly interest, and shall not acquire any interest. w~lich would confltd in any manner or degree with its performance under tllis Agreement, and that only interest of each is 10 perform and receive benefits as recited in th is Agreement. SECTION 7,12. CODE OF ETH ICS. The Cou nty and Drs trict ag ree that the officers a nd em ployees of the County and District recog nize and will be requ ired to comply with the standards of conduct relating to public officers and employees as delineated in Section 112,313, Florida Statutes. regarding, but not limHed to, solicitation or acceptance of gifts; d ojng business with 0 ne's agency; unauthorized com pensatlon: misuse of pu bl ic position, conflicting employment or co ntractu a! relationship: and disclosure 0 ruse- of coria in information. SECTION 7.13. NO SOLICITATION1PAYMENT. County and District warrant that in respect to itse If, it has neither employed nor reta ined any com pa ny or person, other than a bona fide employee worki ng solely for it, to solicit or secu re th is Ag reement and that it has not paid or agreed io pay any person, company. corporation, individual. or finn, other than a bona fide employo8 working solely for it, any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or makmg of this Agreement. For the breach or violation of this provision. the District agrees that the County shall have the right to term inate this Agreement with out Ijabil ity 29 and, at its discretion, to offset from mon~es ov....ed, or other.vlse recover, the full amount of such fee, commr5sion, percentage gift, or consideration. SECITON 7.14. PUBLIC ACCESS TO RECORDS. County and Q,strict shall allow and permit members of the public reasonable access to. and inspeclfon of. all docume'lts. papers, Ictiers, or other mater~als subject to the provisions of Chapter 119, Florida Statutes, and made or recei"led by County and D strict in conJunction w;th this Agreement; and the County shall have the right to umlaterally cancel this Agreement upon violation of this provision by District SECTION 7.1 S. NON-WAIVER OF IMMUNITY. N otwithsta ndrng the provisions of Sec. 768.28, Florida Statutes, the partiCipation of the County and District in this Agreement and the acquiSition of any commercial [iability insurance coverage, self- ins u ranee coverage, or local govemm e nt Irabi I ity i nsura nee 0001 coverage s hafl not be deemed a vvaiver of immunit'i to the extent of liabil!ty coverage, nor shall any contract entered into by County Of District be required to contain any provision for waiver SECTION 7.16, PRIVILEGES AND rMMUNITIES, Air of the privileges and immunities from liability; exemptions from laws, ordinances. and rules: and pensions and relief. disability workers' compensation and other benefits which apply to the activity of officers, agents, volunteers, or ernp~oyees of the County and District, when perform tng th eir respective fun c~ion sunder tl1 is Ag reement with i n the te rritoria I I i~Y'!lts of the County shalj apply to the SAme degree and ex1ent to the performance of such functions and duties of such officers, agents. volunteers, or employees outside the territorial ltmits of the County. 30 S ECTIO N 7,17. LEGAL OBLlGA TIQNS AN D RES PONSI SI LInES; NON- DELEGA liON OF CONSTITUTIO NAL OR STATUTORY DUTIES. This Agreement is not intended to, nor s~la[l it be construed as, refieving any participating entity from any obligation or responsibility imposed upon the entity by law except to the extel1t of actual and timely performance the reof by a ny other partiClpating entity, in which case tho oerformance may be offered in satisfaction of tlle obligation or respons!bility. Further, th~s Agreement is not irltended to. nor shall it be construed as, authorizing tlle delegation of the constitution at or statutory duties of the County, except to the extent permitted by the Florida constitution. state statutes, case law, and, specifica I!y, the provisions of Chapters 125 and 163, Florida Statutes, and Chapter 2002-337, Laws of F 10 rid a (2002). SECTION 7.18. NON-REUANCE BY NON-PARTIES. No person or entity sha~1 be entitred to rely upon the terms, or any of them, of this Agreement to enforce or attem pt to enforce any th i rd..party claim or entitlement to or be nefit of any service or program contemplated hereunder, and the County and District agree that neither the County nor the District or any agent, officer, or employee of each shall have the authority to inform, counsel, or othcr,.vise indicate that any particu[ar individual or group of individuals. entity or entihes, have entitlements or benefits under this Agreement separate and apart, inferior to, or superior to the community in general or for the jJ urposes contemplated in this Agreement SECTION 7.19. NO PERSONAL LIABILITY. No covenant or agreemont contained herein shall be deemed to be a covenant or agreement of any member, officer, agent or empfoyee of the County or the District in his or her individuaf capacity, 31 and no member, officer, agent or employee of County or District shall be liable persona[ly on this Agreement or be subjecl to any personal liabillty or accountability by reason of the execution of this AgreOmGllt. SEeTIN 7.20. SECTION HEADINGS. Section headings have been inserted in this Agreement as a matter of convenience of reference only, and it is agreed that such section headings are not a part of this Agreement and wrll not be used in the interpretation of any provision of this Agreement. SECTION 7,21. GOVERN ING LAW; VENUE. Th is Agreement shall be governed by and construed in accordance with the Laws of the Stato of Florida applicable 10 contracts m ~de f.I nd to be performed ent~re!y in the State. In the event that any cause of action or administrative proceeding is instituted for the enforcement or interpretation nf th is Agreement, the CO'-Jnty and District agree that venue '.vllI lie 1M the appropriate court or beforo the appropriate administrative body in MQ"roe County. Florida. ARTICLE VIII CONSTRUCTION CONTRACTS AN 0 INS U RANCE SECTION 8.01. SUBMITTAL OF CONSTRUCTION CONTRACT DOCUMENTS. The District shall submit to the County copies of all contracts associated with the Project, all contractor insurance certifications and all District nohces to proceed with construction within fout1een (14) days after receipt Of issuance by the District. SECTION 8.02. INSURANCE REQUIRED. The District shall cause the Project. during construction. and the North Components to be insured by an insurance company or campa nies I~censed to do business in the State of Florida against such 32 d 8 III 3 ~ e a nd destruction risks as are cu sterna ry fo r the Gpera~ion of Projects and sys tem 5 of I ike size, type and location, The proceeds of insurance policies received as a result of damage to, or destruction cf. the Project Qr o~her pans of the North Componen1s as may be required to operate the Project shalj be used to restore wastewater setv'ice to the damaged portions of the Key Largo Sewer Sys:em If such proceeds are insufficient. the District s~all provide additional funds to restore wastewater service to the damaged portions of the \Jorth Componen~s. Repair. construction or ~eplJcement shall be promptly completed. ARTICLE IX ADDtnONAL PROJECT COMMITMENTS OF THE DISTRICT SECTION 9,01. PROJECT COSTS. The District and the County acknowledge that the actual Project Cost has not been determined as of the effective date of th is Ag reement. The District and the County agree to the prel im ina ry estimates of Project Costs reflected in Appendix A hereto while recognizing that Project Cost adjustments tTlay be made as a result of cors(ructwn bidding or Project changes. SECnON 9.02. SCHEDULE. The District agrees by execution hereof to proceed d i lig ently to: (1) desig n the Project and to award a contract for constructiofl of the Project no later than March 31, 2006. (2) provide the County with eviden ce of dear title to Project sites. if an y, for the treatment collectfon, transmisstor. and drspo5al facilities by no later than December 31, 2005, 33 (3) submit required permit application{s) to the appropriate regulatory agencies by no late r tlla n December 31 , 2005. (4) secure addiHonal financing above the Reimbursement Amount (as may be required to complete the Project) by no later than March 31, 2006. (5) obtain all necessary permits and begin construction no later than June 30, 2006. (6) complete Project co ns truction by December 31 , 2008. SECTION 9.03. PUBLI C PU RPOS E REQU IREM ENT. The Olstrfct acknowledges and agrees that the County must use Hle Tax Revenues and the proceeds of the Cou nty Bond s for a public pu rpose and that County Bonds proceeds must be expended promptly after issuance of the County Bonds to avoid potential adve rso tax conseq LI ences for th e County Bonds. In recog n~tion of these facts, the District coven ants and agrees to info rm the Co u nty of any fac'ts or eve nts wll ich may arise which could reasonably cause the District 10 be unable to spend the Reimbursemeni Amount in the manner set forth hereil1 within forty-etght (48) hours of the District's becoming aware of such fact or event. ARTICLE X EXECUTION OF AGREEMENT SECTION 10.01. COUNTERPARTS. Tllis Agreement shall be executed in three or more counterparts, any of w~lidl shall be regarded as an original and all of which shall consiitute but one a nd the same instrument. SECTION 10.02. SUPERCEDES OTHER AGREEMENTS. The County and the District ag ree that th is Ag reement represents thei r m utuar agreement and replaces and 34 supercedes any prior agreements, understandings, or communications on the subject of the fi nanci ng of the North Compone nts. whether written or ora I SECTION 10.03. FILING AND EFFECTIVE DATE. A copy of this Agreement shall be filed with the C!erk of the Circuit Court of Monroe County and this Agreement wilj take effect on the dale such copy executed by both parties is so filed. IN WITNESS WHEREOF, the partjes have caused th~s AgreerV'Jent to be executed on their behalf by tho County Chairman ana the [Jistrict Chairman BOARD OF COU NTY COM M 155 lONERS OF MONROE COUNTY, FLORIDA (SEAL) By: Mayo r/C hajrperson DElE y,. SPEHi\K Danny L. Kolhage, Clerk '/G~'iA:~::':.: : J~!~- T'" ....:,.~Tj..:::i\t ': . -r>.~{.";:' . '-. ,. , "''''''L~ ==L""- 'J{f~ ".' . . - ,~.." -~ T :.~---' ~~~'-~. L...- By: Deputy Clerk >:. o-i.\\i~ c'(" KEY LARGO WASTEWATER TREATMENT DISTRICT ~,SEAL) By: /7 ,/i~~ ~ . ~.. .......----..-........... '...._~. C ha Irm an /i-I ....-. ..- ..... ;1 I I / '. !&-...... ....,i" V<--fv~,' }1.4~1...-:j" ................ ~ I' .J!r I'~ T ""ti-6'Uf.,... ~e ./ ATTEST: .' ..' . ~ . _ \ J/# / Clerk -.. ....... .. "'~J/!/Pt;:'0 #/ I I r:',T311 (;8~a'.(;e:1E~Ii-l1 lJ<l!~'.'.'VI-'~JA 1 ,o.',!-'R(),Il-(;' ~"""'crrC5- C0v~:y',"i'~t ,o,"'er~8;j an.:) rlestc;ted Irte'182~1 (\Feen',e~~_Ke~' L~rJ8 ',......~.....TD7 _ ~. ]:::C~ 35 APPENDIX A PROJECT DESCRlPTION APPENDIX A PROJECT DESCRIPTION The District's conceptual des~gn far the North Components includes a wastewarer treatment plant with a design capacity of 2.25 million gallons per day average daily flow. Ttle District owns a trea~ment plant site located at mile marker 10D.5, The conceptuaf design for the North Components includes a treatment plant, transmission line, and collection systems, Effluent quality will meet AVVT standards and effluent and sludge disposal wilr be accomplished consistent with applicable law. PRELIMiNARY PROJECT COSTS CATEGORY Design and perm itting costs Wastewaler treatment plant construction Transm iss ion Ii ne construction Collection system construchon Conhngency (1 5%) TOTAL ~9ST(S) s 1 8 million S 17. 6 tllill~on S 4.8 million 510.8 million $ 4.~_ million 539.5 mtlllon A.1 APPENDIX B FORM OF REIMBURSEMENT REQUISITION REIMBURSEMENT REQUISITION NO. Key Largo Wastewater Treatment District (the "Djstrict") Request to the Board of County Commissioners of Monroe County, Florida (the "County"): Amount Requested: $ Tota! Rejm bursements to Date (Excl u sivc of thrs Req uest): $ 1. Each obligation for which a reimbursement is hereby requested is descri bed in reasonable detai I in Exhibit A hereto together with the Il ame and 8dd rcss of the pe rson, firm or corpo ration to who III payment was made hy the Distnct T~le fi rst requisition submitted by the Dis!rjct also il1cJudes ,nfmmation confjrming that the $1,000,000 Advance provided by Hie County has been used solefy for Project Costs, 2. Tt10 bills: invoices or statements of account for each ob lig ation refe renccd in Exhibit A are on file with the District. 3. The District hereby certifies that: (a) ea ch obligation me ntioned in Exh ibit A has boen prorerly incurred, is a proper Project Cost, was required to be incurred and has been incurred as an ad m inistrative cost in connection with the des~gn and construction af the North Components or paid in compliance with the contracts between the District 31ld 'hird parties providing services necessary to complete tre Projecl, and has not been the basis for ~ny previous rei m bu rsernenL (b) no part of the reimbursement requested hereby will be used to pay for materia Is not yat del ivered to the Project for prompt incorporation or for serv'ices not yel pe rio rmed in con ncctio n therewith; (c} 110 Event of Default exists under the rnterlocal Agreement between the Cou nty and the District dated I 2005 (the "Ag roement") relating to the P reject; (d) no item in Exhibit A represents .any portiOll of an obligation which the District is I as of the da.te hereof. entiUed to reta in und er any retai ned pe rcentage ag reement; Br1 (e) to the best knowledge and belief of the District, ~nsofar as any obligation described In Exhibit A was incurred for labor, services, matenals, supplies or equipment (i) such labor and services were actually performed in a saiisfactory mant"ler in connection with tlle acquisition. constructiot' and eauipping of the Project and (il) such materiais, supplies and equipment were actually used in connection with the acquisit'on. cOrlstructlon and equipping of the Project or were delivered to the site of the Project (and remain at the site of the Project) far that purpose; (f) all sums prev~ously advanced by the County have been used solely for purposes permitted by the Agreement and the specific ttems which are ihe subject of th is rei m burser.1e nt request will be SOLI sed; (g) there has not been served upon the District a ny lien, notice of 3 ny I:eil. rig ht to iien or attachme nt upon or claim affecti ng the right to receive payment of. any Illoneys payable to any of the persons or firms named in this reimbursement request, which has not been released or will not be released simultaneously with the payment of such ob ligation: (h ~~ tile use of the rei III bUfsements reques~ed hereu nder wi II not resu It in the covenants made by the Distrrct in the Agreement being viola~ed (i) the cu rrent estimated cost of com pleting the project is $ (j) the pe rcentage of camp letfon of the Project at the time of submission of ~his re~mbursement request is :::;\: (k) all warranties, representations and covenants in the Agreement am true a nd correct on the date he reof; (I) arl outstanding claims for labor and materials through the date of the last reimbursement request have been paid, and all liens therefore have beer. waived: (m) to the best knowledge af'ld belief of the District. all work on the Project p ri or to th is reimbu rsement req uest h as been performed in a good and workma nl ike manner in accordance with the constructiOI1 agreements entered by the District with thi rd pa rties for construction of the Project: {n) any required payment and performance bond remains in furl force and effect and free from defau It on th e date hereof: (0) the additions or deletions that have been made to the ProJect, pursuant to County consent, which have a~tered ttle Project's performance standards, scope or purpose since the submjssion of the last reimbursement requisition are itemized on the attach ments hereto: a t;d B-2 tP) lne UlsmCl nas 0 r amICI pales U1 cH I L ~r L(':HI r 12lVe dVdllC:l Ule :::;U I ~ 1l;1t:1 It I F I l)F It: y~ to complete tho Project. 4. All capitalized terms herein, un(ess otherwise defined herein. shan have ~I_ _ .__ _ _._ ~._ __ __ _:__ _...J .1..... ...L...___.......... :~... "L-.~ fI. ...............................~....... ........~..... ....1.-....... .....J...........~ ...........................+,- ......r..r+.......i.....ir"'l....... ~.-.. .f.h........ issua nee by the County of the Infrastructu re Sa les Su rtax Revenue Bonds, Ser[es 2005, day of .20 This APPR OVE 0: KEY LARGO WASTEWATER TREATMENT DfSTR leT By' - "..... District Eng inee r Authorized Represenlative APP ROVED: ENGINEERING DEPARTMENT MONROE COUNTY, FLORlDA By:____. .. B-3 Name .- Purpose EXHIBIT A B-4 Amou nt Ac(pJ,Jnt