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IU <br />111 <br />•such regulation as may be provided by State law, however, the <br />Outside City Limit Surcharge levied by the Grantee on wastewater <br />rates shall not be increased from the present ten (10%) per cent <br />above the prevailing City of Vero Beach base rates wit:lout a <br />supporting cost of service study, in order to assure that such an <br />increase is reasonable and not arbitrary and/or capricious. <br />The right to regulate wastewater rates, impact fees, <br />service policies or other rules or regulations or the <br />construction, operation and maintenance of the wastewater system <br />is vested solely in the Grantee except as may be otherwise <br />provided by applicable laws of the Federal Government or the State <br />of Florida. <br />Section 6. Prior to the imposition of any franchise <br />fee by the Grantor, the Grantor shall give a minimum of sixty (60) <br />days notice to the Grantee of the imposition of such fee. Such <br />fee shall be initiated only upon passage, by the Grantor and <br />acceptance by the Grantee, of an appropriate ordinance in <br />accordance with Florida Statutes, Such fee shall be a percentage <br />of gross revenues from the sale of wastewater service to customers <br />within the Franchise area. Said fee, at the option of the <br />Grantee, may be shown as an additional charge on affected utility <br />bills. The franchise fee, if imposed, shall not exceed six (6%) <br />per cent of applicable gross revenues. Should the Grantee refuse <br />to accept an ordinance of the Grantor imposing such a fee, this <br />franchise shall become null and void. <br />Section 7. Payments of the amount to be paid to <br />Grantor by Grantee under the terms of Section 6 hereof shall be <br />made in monthly installments. Such monthly payments shall be <br />rendered twenty (20) days after the monthly collection period. <br />The Grantor agrees to hold the Grantee harmless from any damages <br />or suits resulting directly or indirectly as a result of the <br />collection of such fees, pursuant to Sections 6 and 7 hereof and <br />o <br />the Grantor shall defend any and all suits filed against the <br />Grantee based on the collection of such moneys. <br />Section S. As further consideration of this <br />franchise, the Grantor agrees not to engage in or permit any <br />C7 <br />-3- <br />