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reflecting final population estimates as of April of the same calendar year). For each Service <br />Year, the OFM reported population will be adjusted for annexations of 2,500 or more <br />residents known to be occurring after April, 2012 and before the end of the Service Year. <br />For example, when the final Estimated Payment calculation for 2013 is provided on <br />December 15, 2012, the population numbers used will be from the OFM report issued in <br />July 2012 and will be adjusted for all annexations of 2,500 or more residents that occurred <br />(or are known to be occurring) between April 2012 and December 31, 2013. In any Service <br />Year, if: (1) annexations of areas with a population of 2,500 or more people occurs to <br />impact the population within the jurisdiction of a Contracting Party; or (2) a Latecomer <br />City is brought under contract with the County, these changes shall be accounted for in the <br />calculation of the Estimated Payment for such Service Year by adjusting the "Program <br />Load Factor" (or "LF") for each Contracting Party. Such adjustment shall be made at the <br />next occurring possibility (e.g., at calculation of the Preliminary Estimated Payment, Final <br />Estimated Payment, or Reconciliation, whichever is soonest). The adjustment in LF will be <br />made on a pro rata basis to reflect the portion of the year in which the population change <br />was in effect. <br />• In the case of an annexation, the LF calculation will consider the time the annexed <br />area was in the Contracting Party's jurisdiction and the portion of the year in which <br />the area was not in such Party's jurisdiction, as well as the relative shift in <br />population (if any) attributable solely to the annexation as between all Contracting <br />Parties, by adding (or subtracting) to the LF for each Contracting Party an amount <br />that is 20% (reflecting the general allocation of cost under the Agreement based on <br />population) of the change in population for each Contracting Party (expressed as a <br />percentage of the Contracting Party's population as compared to the total population <br />for all Contracting Parties) derived by comparing the Final 2013 Estimated Payment <br />population percentage (LF) to the population percentage after considering the <br />annexation. The population of an annexed area will be as determined by the <br />Boundary Review Board, in consultation with the annexing city. The population of <br />the unincorporated area within any District will be determined by the County's <br />demographer. <br />• In the case of a Latecomer City, the population shall be similarly adjusted among all <br />Contracting Parties in the manner described above for annexations, by considering <br />the change in population between all Contracting Parties attributable solely to the <br />Latecomer City becoming a Contracting Party. <br />Exhibit C-1 shows the calculation of Pre -Commitment EP for Service Year 2013, assuming <br />that the County and all Cities that have expressed interest in signing this Agreement as of <br />May 16, 2012, do in fact approve and sign the Agreement and as a result the Minimum <br />Contract Requirements with respect to all such Cities and the County are met per Section <br />15. <br />Document Dated 5-29-12 <br />33 <br />