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7. This Franchise Agreement has been duly authorized by all action and
<br />performance of all pre -conditions required to be taken respectively by each party, has
<br />been duly executed and delivered by them, and constitutes a valid and binding obligation
<br />of each party enforceable in accordance with its terms,
<br />NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual
<br />benefits to be derived from compliance by the parties with the covenants contained
<br />herein, and other good and valuable consideration, the receipt and sufficiency of which
<br />are hereby acknowledged by the parties, the parties agree as follows:
<br />Section 1. Incorporation of Recitals. The above Recitals are true and correct,
<br />form a material part of this Franchise Agreement, and are incorporated into the Franchise
<br />Agreement.
<br />Section 2. Conditions Precedent. Notwithstanding anything to the contrary
<br />contained herein, this Franchise Agreement shall not become effective until approved by
<br />both the Board of County Commissioners of COUNTY and the City Council of the CITY.
<br />Section 3. Franchise Grant. COUNTY hereby grants to CITY, with all rights and
<br />privileges attendant thereto, an exclusive Franchise to construct, maintain, and operate
<br />water, wastewater, and reclaimed water utility systems within the Service Area, to provide
<br />water, wastewater, and reclaimed water utility services to customers currently served by
<br />CITY within the Service Area and to construct, maintain, operate, expand, and replace
<br />water, wastewater, and reclaimed water utility systems in, upon, along, across, above,
<br />over and under COUNTY rights of way now laid out or dedicated, and all extensions
<br />thereof, within the Service Area. Such water, wastewater, and reclaimed water utility
<br />systems shall consist of all water, wastewater, and reclaimed water facilities (including,
<br />pipes, fixtures, mains, valves, meters, tanks, lift stations, etc., and communication and
<br />electric lines for water, wastewater, and reclaimed water utility system use) for the
<br />purpose of supplying water, wastewater, and reclaimed water utility service to the Service
<br />Area and the inhabitants thereof. This exclusive Franchise prohibits the County and any
<br />other entity from providing water, wastewater, and reclaimed water service in the Service
<br />Area without the consent of the City.
<br />Section 4. Initial Franchise Term and Renewal. The term of this Franchise
<br />Agreement and the Franchise granted hereunder shall expire THIRTY (30) years from
<br />the Effective Date hereof, and may be renewed by written notice by either Party hereto
<br />no later than two (2) years prior to the thirtieth (30th) anniversary hereof for one additional
<br />term of fifteen (15) years.
<br />Section 5. Utility Rates and Fees. The rates for water, wastewater, and
<br />reclaimed water utility services charged by CITY for customers within the Service Area
<br />shall be established by City ordinance and shall be fair and reasonable, shall at all times
<br />be subject to such regulation as may be provided by State law and shall not exceed the
<br />rates charged to customers within the same rate classes within the corporate area of Vero
<br />Beach. The right to regulate water, wastewater, and reclaimed water rates, service
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