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Connection charges for water service is $2,550.00 per Equivalent Residential Connection (ERC) and $3,100.00 per ERC for sewer service. For the purposes of this rate schedule, one Equivalent Residential Connection is equal to 350 gallons per day of water consumption or wastewater to be treated. One condominium unit is equal to 250/350 of an ERC or .7143 of an ERC. The basis for the above charges as set forth hPrein has been structured by Corporation with regard to two major but variable factors; first, the present level of construction costs of water transmission, and waste water collection and water and waste water treatment plant facilities; second, the theory of treatment facilities and their degree of treatment sophistication as prescribed by the Department of Environmental Regulation or body having jurisdiction over the matter. without the County approval, connection charges set forth herein shall be escalated based upon increases in utility construction costs as evidenced by the quarterly construction index published in Engineering News Record Magazine, "Construction Cost Index, 20 Cities." Corporation shall. adjust the connection charges set forth herein semi-annually, with the first such adjustment to be not earlier than January 1, 1983. Any escalation shall not exceed the percentage difference between said construction cost index for the base period ending September 30, 1981, as compared with the period of comparison. Escrow charges and fees as contained in Section XV below shall be included in the respective connection charges listed above and incorporated therein. The Corporation hereby agrees to pay to the County a franchise fee in the amount of 3% of the Corporation's annual gross receipts, derived from monthly service charges to defray the cost of regulation and for use of county rights-of-way and public places. The Corporation shall pay the 3% franchise fee quarterly. Said fee shall be shown as a separate additional charge on utility bills. -12-