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and (ii) pay to FELLSMERE an annual fire protection charge in an amount equal to the product of fifty one dollars and fifty cents ($ 51 . 50 ) multiplied by the number of fire hydrants located in and owned by FELLSMERE as of the invoice date . Such amount shall be paid within thirty (30 ) days of receipt of the invoice . Commencing October 1 , 2017 , the fifty one dollars and fifty cents ($ 51 . 50) per hydrant payment shall be increased by ten percent ( 10%) . FELLSMERE acknowledges that COUNTY will levy ad valorem taxes on behalf of ESD to provide funds to pay for the operational and financial responsibilities set forth above , and (b) FELLSMERE shall (i) continue to own the hydrants and replace the hydrants at its own expense, to the extent necessary , and (ii) provide and maintain the extra capacity in its water system to provide water for the hydrants . The City and County utility staff shall negotiate an operational agreement or memorandum of understanding outlining specific responsibilities of each party within sixty (60) days of the effective date of this Agreement . I No Annual Fire Protection Charge. Provided COUNTY performs its operational and financial responsibilities set forth in paragraph 2 above , FELLSMERE shall not assess or impose , and COUNTY shall not be required to pay, an annual fire protection charge in excess of the charge set forth in paragraph 2 above . 4 . Privately Owned Hydrants . There are currently 21 privately owned hydrants located in FELLSMERE which FELLSMERE maintains , inspects , repairs and replaces for an annual charge to the owner of $225 per hydrant per year . During the term of this Agreement , COUNTY shall , if requested by FELLSMERE and as a subcontractor to FELLSMERE , maintain, inspect and repair such hydrants and any new, similarly situated hydrants . COUNTY shall charge seventy dollars ( $ 70 . 00 ) per hydrant per year for such services , which FELLSMERE shall bill to and collect from the private owner, and remit to COUNTY . Commencing October 1 , 2017 , the seventy dollars ($ 70 . 00 ) per hydrant payment shall be increased by ten percent ( 10 %) . COUNTY shall not be responsible for replacement of such hydrants . 5 . Final Order. Nothing herein shall operate to diminish or eliminate the precedential value of the Final Order . 6 . Hold Harmless . To the extent allowed by law, each party shall indemnify and hold the other harmless from all claims brought during the term of this Agreement by third parties , including reasonable attorneys ' fees , court costs and expenses , which may arise out of or be attributed to the negligence of the indemnitor ' s employees in the performance of any of the covenants , agreements , terms , or conditions to be performed or complied with under this Agreement . Neither party ' s liability to the other shall include punitive damages or interest for the period before judgment . Nothing contained herein shall be construed as a waiver of any immunity from , or limitation of, liability either party has under the Doctrine of Sovereign Page 2 of 4