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Home My WebLink About2026-036AA TRUE COPY CERTIFICATION ON LAST PAGE RYAN L. BUTLER, CLERK Interlocal Agreement Between Fellsmere Water Control District and Indian River County Board of County Commissioners This interlocal Agreement ("Agreement") is entered into pursuant to Section 163.01, Florida Statutes, by and between the Fellsmere Water Control District, a public entity organized under the laws of the State of Florida ("FWCD"), and the Indian River County Board of County Commissioners, the governing body of Indian River County, Florida ("County"). Recitals WHEREAS the Florida Legislature passed HB 4093 (2026 Legislative Session) (the "FWCD Act"), providing for the contraction of its boundaries, and the dissolution, transfer, or restructuring of certain functions, assets, and responsibilities of the Fellsmere Water Control District to Indian River County as a new and separate dependent district (the "Dependent Fellsmere Water Control District"); and WHEREAS the FWCD Act is anticipated to be approved by the Governor and is scheduled to become effective on October 1, 2026 ("Effective Date"); and WHEREAS the parties desire to provide for the orderly transition, transfer of assets, continuation of services, and operational protocols during the interim period between legislative approval and the Effective Date; and WHEREAS the parties are authorized to enter into this Agreement pursuant to Section 163.01, Florida Statutes (Florida Interlocal Cooperation Act.) NOW, THEREFORE, in consideration of the mutual consideration herein, the parties agree as follows: Section 1. Purpose The purpose of this Agreement is to: 1. Document the transfer of identified assets, liabilities, records, contracts, and operational responsibilities from FWCD to the County; 2. Establish operational protocols during the Interim Period (defined below); 3. Ensure continuity of services, regulatory compliance, insurance coverage, and financial accountability; 11Pap,e 4896-4569-6427, v. 2 A TRUE COPY CERTIFICATION ON LAST PAGE RYAN L. BUTLER, CLERK 4. Provide a framework for full assumption of responsibilities within the remaining boundary of the Dependent Fellsmere Water Control District by the County on October 1, 2026. 5. Acknowledge that the new Dependent Fellsmere Water Control District is a separate entity from FWCD and it is not liable for any damages, claims, suits, liabilities losses and expenses accrued prior to October 1, 2026. Section 2. Term This Agreement shall take effect upon execution by both parties and shall remain in effect until: • October 1, 2026, for interim operational provisions; and • Completion of all asset transfers and reconciliation activities as described herein. Section 3. Definitions Act - HB 4093 (2026), as approved by the Florida Legislature and signed into law. Effective Date -October 1, 2026. Interim Period -The period between the date of legislative approval of the Act and September 30, 2026. Assets - Real property falling within the boundary of the Dependent Fellsmere Water Control District, along with all personal property, equipment, vehicles, accounts, contracts, permits, intellectual property, and any other tangible or intangible property held by FWCD, except for any fixtures or water control facilities not within the boundaries of the dependent district. Liabilities - The Dependent Fellsmere Water Control District shall not be liable for any damages, claims, suits, liabilities, losses and expenses accrued prior to October 1, 2026. Section 4. Transfer of Assets 4.1 Asset Inventory Execution of this agreement, acknowledges HB 4093 passed out of the Florida Legislature and is expected to be transmitted to the desk of Governor Ron DeSantis for signature, establishing the Fellsmere Water Control District a dependent district under 2 1 P a g e 4896-4569-6427. v. 2 A TRUE COPY CERTIFICATION ON LAST PAGE .. ••r N, L. BUTLER, CLERK the governance of the Indian River County Board of County Commissioners as of October 1, 2026; therefore the FWCD is providing a comprehensive inventory of all Assets to be transferred. These assets include: 4.2 Real Property All real property and easements owned by the FWCD falling within the established boundary of the Dependent Fellsmere Water Control District shall be conveyed to the County by quit claim deed or other appropriate instrument effective October 1, 2026, or as soon thereafter as practicable. 4.3 Personal Property Title to all equipment, vehicles, and tangible personal property, except for any fixtures or water control facilities lying outside of the established boundary of the Dependent Fellsmere Water Control District shall transfer to the County on the Effective Date (October 1, 2026), or as soon thereafter as practicable. 4.4 Financial Assets All FWCD bank accounts, reserve accounts, and investment accounts shall be reconciled as of the date the bill is sent to the Governor's Desk for signature, and balances transferred to a County -designated account on October 1, 2026, or as soon thereafter as practicable. This includes the approximate $1 million in the reserve account as of May 11, 2026. FWCD shall not make any expenditures without the written consent of the County Administrator or his designee and a vote of the FWCD at an advertised meeting. 4.5 Records All official records, including financial, operational, contractual, legal, and public records, shall be delivered to the County prior to the Effective Date of October 1, 2026, in compliance with Chapter 119, Florida Statutes. Section 5. Liabilities and Obligations 5.1 Assumption of Liabilities The FWCD warrants that as of the date of this agreement there are no known outstanding claims or suits and agrees that the Dependent Fellsmere Water Control District shall not be liable for any damages, claims, suits, liabilities, losses and/or expenses accrued prior to October 1, 2026. FWCD shall maintain insurance coverage in full force and effect through the Effective Date. 3 1 P a g e 4896-4569-6427, v. 2 A TRUE COPY CERTIFICATION ON LAST PAGE RYAN L. BUTLER, CLERK 5.2 Pending Claims The FWCD warrants that as of the date of this agreement there are no known pending claims, litigation, audits, or investigations. The parties recognize that the Dependent Fellsmere Water Control District will be a new separate entity and that it shall not be liable for any damages, claims, suits, liabilities, losses and/or expenses accrued prior to October 1, 2026. FWCD shall maintain insurance coverage in full force and effect through the Effective Date. 5.3 Indemnification To the extent permitted by Florida Law and subject to sovereign immunity limitations under Section 768.28, Florida Statutes, each party shall be responsible for its own acts and omissions. Section 6. Interim Operational Protocols During the Interim Period: 1. Governance - FWCD shall continue operations consistent with existing policies and statutory authority until the Effective Date, utilizing the contract with SDS for general governmental services and Tradesman for the purpose of regular ditch cleaning, but not to exceed, 1600 hours on the leased excavator. 2. Insurance - FWCD shall maintain governmental insurance coverage through the Effective Date. 3. Material Changes - FWCD shall not incur new long-term debt, dispose of major assets, or enter contracts or utilize the existing contract with Triple D Land Clearing and Development, LLC without written approval from the County. 4. Budget Oversight - Monthly financial statements shall be provided to the County from the date of legislative passage to the Effective Date of October 1, 2026. 5. Coordination Meetings -The parties shall conduct transition coordination meetings every two weeks until the Effective Date. 6. Public Communications -All public communications regarding transition shall be coordinated between the parties to ensure consistency and transparency. Section 7. Financial Reconciliation A final financial reconciliation shalt be completed within sixty (60) days following the Effective Date, including: • Audit of accounts. • Settlement of outstanding receivables and payables. • Transfer of restricted funds consistent with statutory limitations. 41Page 4896-4569-6427, v. 2 A TRUE COPY CERTIFICATION ON LAST PAGE RYAN L. BUTLER, CLERK Section 8. Dispute Resolution The parties agree to attempt good faith resolution of any disputes arising under this Agreement. If unresolved, disputes shall be addressed through mediation prior to any legal action. Section 9. Amendment This Agreement may be amended only by written instrument executed by both parties. Section 10. Severability If any provision is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. Section 11. Filing This Agreement shall be filed with the Clerk of the Circuit Court of Indian River County pursuant to Section 163.01 (11), Florida Statutes. Effective Date Date HB 4093/4095 was approved by the Florida Senate - March 11, 2026 Effective Date - October 1, 2026, pending Governor's Approval Remainder of Page Intentionally Blank - Signatures on Following Page 51Page 4896-4569-6427, v. 2 STATE OF FLORIDA INDIAN RIVER COUNTY TN C V F TO CERTIFY TNAT TFN$ IS A TRUE AND CORRECT THE ORI INAI 0�1 FNE Nr NIS OFFICE SAN B DY DATE_,,,_ This Agreement will become effective upon its filing with the Clerk of the Circuit Court of Indian River County, Florida, as required by Section 163.01 (11), Florida Statutes. APPROVED this INDIAN RIVER subdivision of 1 By: `— Deryl Loar, Chairman day of , 2026. .Goti�r. i ...... . CY poral *6, Fellsmere Water Control District, a e special district operating under State of Florida Statute 298. ivER coy`' •" By: Greg Nelson, President ATTEST: Ryan Butler, Clerk of Court and Comptroller By: Deputy Clerk APPROVED: By: John f itkanich, County Administrator Approved as By:�, Christor Attorney 6 1 P a g e 48964569-6427, v. 2 and legal sufficiency. Hicks, Assistant County ATTEST: Frank Sakuma District Manager - Clerk 10 District Manager - Clerk Approved as to form and legal sufficiency. In Seth Behn, FWCD Attorney