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area. Should the County extend the crnuity systen, this shall be <br />considered a temporary water and wastewater franchise and upon the <br />denand of the County, franchisee shall discontinue its water and <br />wastewater operation and immediately co:urect to the County system and <br />40 shall pay to the County all the sums due under the County's standard <br />schedule of rates and fees. <br />4. The Utility shall supply the County with copies of its <br />Department of Environmental Regulation monthly operating reports and <br />trouble reports, if any. <br />5. The right is hereby reserved to the County to adopt, in <br />addition to the provisions herein contained and existing applicable <br />resolutions or laws, such additional regulations and increase fees and <br />charges as it shall find necessary in the exercise of the police power <br />and lawful authority vested in said County, provided that such <br />regulations shall be reasonable and not conflict with the rights herein <br />granted and not in conflict with the laws of the State of Florida. he <br />County shall have the right, but not the duty, to aspect all <br />construction or installation work performed. <br />6. The Utility shall, at all tunes during the life of this <br />franchise, be subject to all lawful exercise of the police power and <br />regulatory authority of the County and to such regulation as the County <br />shall hereafter by resolution provide, provided however, such <br />regulations shall not be inconsistent with the terms hereof. <br />SECTION IV <br />TERRITORY/FRANCHISE AREA <br />The territory in which this franchise shall be applicable is all <br />that part of Indian River County; Florida, located within the foll�„aing <br />described boundary lines, to wit: <br />See Exhibit "B" attached hereto and incorporated herein. <br />SECTION V <br />HOLD HARMLESS CLAUSE <br />it isw;pressly understood and agreed by and between the Utility <br />and the County that the Utility shall save the County and members of the <br />Board harmless from any loss sustained by the County on account of aay <br />suit, judgment, execution, claim or demand whatsoever resulting from <br />negligence, or intentional wanton, willful and reckless acts on the part <br />of the Utility in the construction, operation or maintenance of the <br />water and/or wastewater system under the terms of this franchise. The <br />parties agree that in the construction of this section, the claim of any <br />person resulting from negligence on the part of the Utility may be <br />prosecuted directly by such person against the Utility. The County <br />shall notify the Utility promptly after presentation of any claim or <br />demand. <br />3 <br />