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This Agreement will become effective upon ratification by the <br />Contracting Cities of alt Its parts including Appendix C which contains <br />the initial Annual Budget Package. The term of this agreement may be <br />extended as described below. <br />9.1 On each occasion that the Annual Budget Package is ratified by <br />October 1 by the Contracting Cities, this Agreement will be renewed <br />for a total period of three contract years beginning with the contract <br />year following the current contract year. The details of this process are <br />covered in sections 9.2 through 9.5 following. <br />9.2 When during the first contract year of any three year period <br />covered by the Agreement the Annual Budget Package is ratified by <br />Contracting Cities by October 1, this Agreement shall be extended by <br />one contract year. When during the second contract year of any three <br />year period covered by the Agreement the Annual Budget Package is <br />ratified by Contracting Cities by October 1, this Agreement shall be <br />extended by two contract years. When during the third contract year <br />of any three year period covered by the Agreement the Annual Budget <br />Package is ratified by Contracting Cities by October 1, this Agreement <br />shall be extended by three contract years. The elements of the Annual <br />Budget Package so ratified will replace the elements of the previously <br />ratified Annual Budget Package. <br />9.3 When during the first contract year of any three year period <br />covered by the Agreement the Annual Budget Package is not ratified <br />by Contracting Cities hy October 1. the amount previously ratified as <br />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 <br />extended. <br />9.4 When during the second contract year of any three year period <br />covered by the Agreement the Annual Budget Package is not ratified <br />by Contracting Cities by October 1. the amount previously ratified as <br />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 <br />extended.