-3- An adjustment shal} take place on or before March 3st, of the year next so as te reflect the City's share of actual expenditure incurred for the past year; 2. The City agrees with the District, tnat the District shall pay in accordance with approved budget or report of the Arbitrator, all operating, administrative and maintenance costs and capital expenditure of the Justice Building and lands, and of costs of: Prosecutions; Court Room facilities and stenographic help; Court reporters; . Probation Officers {counselling} and stenographic help; Naintenance and safe keeping of prisoners; Any other required employees; All costs of fringe benafits; All utility service’ And any other costs incidental to the operation of the building; all of which are to be shared in the manner provided above; 3. Any alterations, additions or improvements to the “Justice Building’, or the acquiring of further lands, shall be approved by both parties before inciusion in the “buccet". After approval such alterations, additions or imgrovenents shal] then be financed in accordance with the Annual Budget and included therewith. Al} other capital items or expendable operational matters shall be included in the Annual Budget, and shat] be shared in accordance with the provisions of this agreement. Subject to the “Budget” and the administrative procedures of the strict, all administrative procedures shall be directed by the Prosecutor Tor the District, or his delegate, who shall authorize all expenditures, purcheses, cause the budget to be prepared, ootain the necessary employees, ‘Oo shall communicate such matters which concern the operations of the aa wustice Building" to the Municipal Nanager for the District and the Alninistrator tor the City for transmission to their respective Councils when Ketessary; -4- 5. The Prosecutor for the District shall previde to the parties a report on the operations of the “Justice Building” at least once in each calendar year, which report shall reflect the financial operation and any other matters which may touch and concern the administration of justice. This report shall not be in substitution for the regular police reports provided to the parties from tine to time; 6. The District shal] insure the building, furniture, and equipcent, and shail declare the interests of the parties as they may fron time to time exist; 7 The District shall insure that the said “lands™ and buliding and all furniture, equipment and facilities contained in the said building or hereinafter placed or installed therein shall be maintained in a proper state ‘ of repair; 8. The City shall have the right to use and occupy in conjunction with the District the said “lands” and building for purposes of operating and maintaining a police service and adninistration of the “Justice Building” The City shall pay to the District its snare of the costs as aforesaid; provided, however, that in the event of termination of this agreement that a pro-rated amount shall be applied for the year the acgreexent is terminated; 10. Subject to the accounting administrative procedures of the “City* and the "District", all fines and assessments that are received shall be credited to the jurisdiction where the offence occurred, and shail be used to offset each jurisdiction's respective costs; ne This agreement shall be for a period of one (1} year from the cate of execution hereof, provided however, that it shall be extended every year for an additional year unless either party within sixty (60) days of the date of renewal gives notice that they desire to terminate the agreement; 12. In the case where the agreement is terminated the “City” ray request the “District” to purchase its interest in and to the said building