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MODIFICATION AGREEMENT
This Modification is made to that certain Agreement made and entered into
July 15, 1978 by and between the VILLAGE OF TEQUESTA, Palm Beach County,
Florida, a municipal corporation (hereinafter referred =o as "Village ") , and
TRI- SOUTHERN UTILITIES COMPANY, INC., a corporation organized and existing
under the laws of the State of Florida (hereinafter reff to as "Utility ") .
WHEREAS, Village and Utility entered into an Agreement for Utility
to sell potable water in bulk to Village for resale by the Village to its customers;
and
WHEREAS, the Village desires to limit the souz ce of payment for such
water to revenues generated by its water customers and to protect Village
taxpayers from a levy of ad valorem taxes to pay the monies due under said
Agreement; and
WHEREAS, Utility is willing to permit Village to limit the source of payment
under said Agreement to revenues generated by the Village from sources other than
ad valorem taxes conditioned only upon the Village covenanting to set water rates
to its customers at a level sufficient to pay any monies owed from Village to
Utility as required under the terms of the above - described Bulk Sale Water
Agreement; and
WHEREAS, the parties intended at all times that the payment for bulk water
service come from revenue generated by Tequesta water customers and that the
Village would never use its ad valorem taxing power to pay for such bulk sale
• of ,water;
NOW, THEREFORE, in consideration of these premises and the mutual
covenants and obligations set forth herein, the parties expressly modify and
amend the bulk sale water service agreement referred to above as follows:
1. The payment by Village to Utility of all monies owed for the purchase
of water service, including any payment of guaranteed revenues and minimums,
as set forth in the Agreement between Village and Utility dated July 15, 1976,
shall be derived from revenues generated by the operation of the Village water
system through the sale of water to consumers located within and without the
Village. For the purpose of this modification, the Village water system shall be
deemed to include all consumers presently connected to the distribution facilities
owned and operated by the Village on the date of this agreement and their
successors as consumers, together with any additional consumers who shall
receive water from the Village owned and operated water distribution facilities
in the future.
2. The Village agrees to fix and establish sy_h rates and to collect such
fees and other charges for the services and facilities _he Village water system
and all parts thereof and to revise the same from time -c time whenever necessary,
as will always provide sufficient revenues in each year to pay for the bulk water
service received from Utility, including payment of guaranteed revenues and
minimums,, as the same are described in said Agreeme -t referred to above. This
• water rate covenant shall remain in effect so long as the contract between the
Village and Utility shall continue in full force and effect and shall be binding upon
any successor in interest or assignee of the Village or Utility.
3. The obligations of the Village to pay monies to Utility under the
terms of the Agreement set forth above shall not be or constitute general obligations
or indebtedness of the Village as "bonds" within the meaning of the Constitution
of Florida; but shall be payable solely from a pledge of the revenues of the
Village water system, as herein described and provided. Neither the Utility nor
its successors or assigns shall ever have the right to compel the exercise of the
ad valorem taxing powers of the Village or taxation in any form of any real
property therein to pay such obligations or monies from the Village to Utility,
• except from the revenues derived from the operation of the Village water system
in the manner provided herein, or at the discretion of the Village from any revenue
source to the Village other than the ad valorem taxing power of the Village. The
pledge of water revenues for payments of any obligations from Village to Utility
as set forth in the Agreement between the parties referred to above and in this
modification thereof shall be part of the operation of the Village water system
and shall be considered a cost of operation and maintenance of said system.
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4 . Except as set forth in this modification or amendment, all other
clauses, terms and provisions of the Agreement dated July 15, 1976 between the
Village and Utility shall remain in full force and effect .
Signed, sealed and delivered TRI- SOVTHER' - TILITIES COMPANY, INC.
in the pre nce of:
e2 � By
1 . ��G t Presiders
A ES '
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ecre
Signed, sealed and delivered VILLAGE OF EQUESTA
in the presence of:
By
e Its Ma3/or + t
ATTEST:
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Village Cl rk ,
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