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23.1 On each occasion that the Annual Budget Package is ratified by October 1 by the Contracting <br /> Cities, this Agreement will be renewed for a total period of three contract years beginning <br /> with the contract year following the current contract year. The details of this process are <br /> covered in sections 23.2 through 23.3 following. <br /> 23.2 When during the first contract year of any three year period covered by the Agreement the <br /> Annual Budget Package is ratified by Contracting Cities by October 1,this Agreement shall <br /> be extended by one contract year. When during the second contract year of any three year <br /> period covered by the Agreement the Annual Budget Package is ratified by Contracting <br /> Cities by October 1, this Agreement shall be extended by two contract years. When during <br /> the third contract year of any three year period covered by the Agreement the Annual Budget <br /> Package is ratified by Contracting Cities by October 1,this Agreement shall be extended by <br /> three contract years. The elements of the Annual Budget Package so ratified will replace the <br /> elements of the previously ratified Anrival Budget Package. <br /> 233 When during the first contract year of any three year period covered by the Agreement the <br /> Annual Budget Package is not ratified by Contracting Cities by October 1, the amount <br /> previously ratified as the Year Two Budget shall become the Annual Operating Budget for <br /> the second contract year and the term of this Agreement shall not be extended. <br /> 23.4 When during the second contract year of any three year period covered by the Agreement the <br /> Annual Budget Package is not ratified by Contracting Cities by October 1, the amount <br /> previously ratified as the Year Two Budget shall become the Annual Operating Budget for <br /> the third contract year and the term of this Agreement shall not be extended. <br /> 23.5 When during the third contract year of any three year period covered by the Agreement the <br /> Annual Budget Package is not ratified by Contracting Cities by October l, this Agreement <br /> will terminate at the end of that contract year. <br /> This Agreement may be terminated by either the method detailed in section 23, or by mutual <br /> agreement of all Contract Cities. If any one of the Contract Cities terminates this Agreement, <br /> the other Contract Cities may terminate or renegotiate the Agreement. <br /> In the event that a Contract City terminates this Agreement with or without cause, the <br /> Contract City agrees to pay to the City of Orono any of the extraordinary costs incurred by or <br /> within the Police Department of the City of Orono on account of such termination; said costs <br /> include but are not limited to unemployment benefits paid because of the need to lay off <br /> existing police department personnel and those costs occasioned by the need to reduce <br /> overhead because of the termination of this agreement. Extraordinary costs shall not include <br /> the costs of day to day operations of the police department of the City of Orono at level of <br /> performance and quality of it's choice. <br /> Page 11 <br />