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EXHIBIT 3 <br /> OC ANIMAL CARE SERVICES <br /> NEW AGREEMENTS FOR SHELTER CONSTRUCTION AND <br /> SERVICES <br /> MAJOR TERMS <br /> i <br /> I <br /> Participation Agreement (New Shelter) <br /> 1. Establishes a Design Advisory Board consisting of three (3) city <br /> representatives. Two of the representatives must be from cities <br /> individually constituting more than 8% of the total usage of the <br /> existing shelter (Anaheim, Santa Ana, Garden Grove or Orange). <br /> i <br /> 2. If at any time the County elects to discontinue providing animal <br /> sheltering services, the cities have an option to take over the operation <br /> of the shelter from the County under a ground lease arrangement. <br /> This option is in play for 50 years. <br /> i <br /> 3. Maximum shelter cost is based on a $35M shelter with the County <br /> contributing the first $5M toward costs incurred after April 1, 2016. <br /> The remaining $30M is divided proportionally among cities based on <br /> the previous 5 years of shelter usage. See attached draft exhibit D. <br /> 4. Payments may be made in advance, or at the election of each <br /> individual city, over a ten year period. For those cities electing the 10 j <br /> year payment period, payments will be due quarterly beginning in <br /> October 2016 and will include an additional funding cost (0.77%) See <br /> attached draft exhibit E. <br /> 5. After year 5, each city's respective percentage share of the maximum <br /> construction costs shall be recalculated based on the same formula as <br /> set forth in draft exhibit D but using then current statistical data. If any <br /> city's respective percentage share is altered by the recalculation by <br /> more than 5%, then each city's total share of the maximum <br /> construction costs shall be recalculated so that the originally calculated <br /> percentage shall be applied to one half of the maximum construction <br /> costs and the recalculated percentage shall be applied to the second <br /> half of the maximum construction costs. <br /> 25C-73 <br />