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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 <br />