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2.The Municipalities will pay the County's costs for Operating Services <br />Operating Costs") on an annual basis. <br />3.The Operating Costs will be calculated to include costs for the <br />items listed in Section III.B.-E. of this Agreement and, until repaid in full, <br />the Implementation Costs described in Section VIII.A.2. <br />4.Except as identified as the responsibility of a Party to this Agreement, annual <br />Operating Costs for Operating Services will be allocated as follows: <br />a.using the percentage of the total number of ballot counters requested <br />by the Municipality as a proportion of the total number of ballot <br />counters requested by all Municipalities for 80%, and using the <br />percentage of the total number of absentee ballots accepted by each <br />Municipality during the four most recent state general elections as a <br />proportion of the total number of absentee ballots accepted in the <br />County for 20%. The County will initially allocate the annual Operating <br />Costs to the Municipalities as illustrated in Appendix C. The annual <br />Operating Costs are subject to change, based on price changes for post- <br />implementation services provided by the System vendor and changes to <br />the costs of licenses and fees required for the County to administer the <br />System, which have been submitted to and approved by the County. <br />b.The allocation will take into account any changes in the number of <br />ballot counters requested by each of the Municipalities and/or the <br />total number of ballot counters. <br />C. Payments <br />1.The County shall invoice a Municipality after the initial delivery of <br />County-tested ballot counters, ballot boxes, and ballot marking devices to <br />the Municipality. If a Municipality will pay over a period of 2-5 years;the <br />County will invoice the Municipality its appropriate annual sum along with <br />the invoice for annual Operating Costs. Payment shall be made within thirty <br />30) calendar days of the date of the invoice. <br />2.On or about June 1 of each calendar year during the term of this Agreement <br />including any extensions,the County will invoice the Municipalities for their <br />share of Operating Costs for the next calendar year. The total amount of the <br />invoices will be calculated based on the actual Operating Costs incurred by <br />the County in the previous calendar year, with adjustments made to account <br />for increases or decreases in anticipated Operating Costs. The Municipalities <br />10