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f. No city will be added to OC Animal Care program for a period of three years to allow for appropriate sizing and establishment of operational protocols for the new shelter. New cities will be required to pay a pro j rats portion of the maximum construction costs based on the formula in draft Exhibit D. New monies will first be applied toward any necessary shelter expansion and the remainder will be deposited into a shelter maintenance and repair fund to off-set future costs to all contract cities. ! ! 7. Any excess funds (maximum construction costs less actual construction costs) shall be credited to cities against future charges under each city's Services Agreement. 8. Participating cities are making a ten (10) year operational commitment. 9. Maximum construction costs may increase under the following conditions: 1 I. The recalculation under number 5 above. There will be winners and losers, if applied. II. One or more cities fail to execute the Participation Agreement. The maximum shelter cost of $35M is based ! on all existing contract cities signing the Participation j Agreement. If any cities do not sign the Participation Agreement, then the maximum cost to the remaining cities may increase. While there is built-in scalability in the County's design-build contract, there are also some fixed costs that cannot be adjusted. III. When a city fails to make payment under the 10 year payment plan. If a city defaults on its payments, the County will pursue all legal remedies and the remaining cities may also pursue legal remedies. Should the non- paying city pay any amount owing, the increased cost to other cities will be reimbursed. E Agreement for Provision of Animal Care Services A. Ten year term. County will still issue an annual Notice of Intent. 25C-74 i