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operate water, wastewater and reclaimed water utility systems within the area of <br />FELLSMERE set forth in Exhibit "A" ("Service Area"). Such water, wastewater , and <br />reclaimed water utility systems shall consist of all water, wastewater and reclaimed <br />water facilities (including, pipes, fixtures, mains, valves, meters, tanks, lift stations, etc., <br />and telephone and electric lines for water, wastewater, and reclaimed water utility <br />system use) for the purpose of supplying water, wastewater and reclaimed water utility <br />service to the Service Area and the inhabitants thereof. <br />Section 4. Franchise Term and Renewal. The term of this Franchise Agreement and <br />the Franchise granted hereunder shall be for a period of Twenty-five (25) years <br />commencing on the Effective Date. This Franchise Agreement shall automatically <br />renew for an additional 25 years unless either party provides notice to the other party of <br />its intent to terminate this Franchise Agreement at least 4 years prior to the expiration of <br />this Franchise Agreement. <br />Section 5. Utility Rates and Fees. The rates for water, wastewater and reclaimed <br />water utility services established and charged by COUNTY for customers within the <br />Service Area shall be no greater than the rates for such utility services as published by <br />the COUNTY for the various rate classifications served. Likewise, any and all other fees <br />and charges established and imposed by COUNTY shall correspond to such fees and <br />charges assessed by COUNTY and shall be no greater that those imposed by COUNTY <br />in each rate classification. The foregoing rates, fees, and charges shall be adopted and <br />applied to each customer's utility billing commencing with the customer's first utility bill <br />that is produced subsequent to Thirty (30) days from the Effective Date. The rates, <br />fees, and other charges assessed shall be adjusted by COUNTY at the same time as <br />any other adjustment made by COUNTY of its corresponding charges and fees. <br />COUNTY shall provide the City Manager of FELLSMERE for review and comment any <br />proposed rate or fee adjustments no less than Thirty (30) days before the adjustment is <br />scheduled to go before the COUNTY Board of County Commissioners for consideration. <br />Notwithstanding any of the foregoing language to the contrary, all rates, fees and <br />regulations established by COUNTY shall be otherwise reasonable; and the rates and <br />fees charged by COUNTY shall at all times be subject to such regulation as may be <br />provided by state law. Further, the parties recognize that the right to establish and <br />regulate water, wastewater and reclaimed water rates, impact fees, service policies or <br />other rules or regulations, and the construction, operation or maintenance of the water, <br />wastewater and reclaimed water utility system shall be vested solely in COUNTY, <br />except as such may be otherwise subject to the applicable laws of the Federal <br />Government and the State of Florida or the provisions of this Franchise Agreement. <br />Section 6. COUNTY Franchise Fee. COUNTY may charge a franchise or fee -in -lieu - <br />of -franchise fee up to six percent 6% of the gross revenues received by COUNTY from <br />the sale of water, wastewater and reclaimed water services in the Service Area. The <br />franchise or fee -in -lieu fee shall be calculated as a percentage of the gross revenue <br />derived from the sale of water, wastewater, and reclaimed water services as applicable. <br />Such fee shall be shown on the customers' bills as a separate line item. FELLSMERE <br />acknowledges and agrees that such fee is an acceptable, bargained -for fee. <br />Page 2 of 7 <br />