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6. No city will be added to OC Animal Care program for a period of three <br />years to allow for appropriate sizing and establishment of operational <br />protocols for the new shelter. New cities will be required to pay a pro <br />rata portion of the maximum construction costs based on the formula <br />in draft Exhibit D. New monies will first be applied toward any <br />necessary shelter expansion and the remainder will be deposited into a <br />shelter maintenance and repair fund to off -set future costs to all <br />contract cities. <br />7. Any excess funds (maximum construction costs less actual <br />construction costs) shall be credited to cities against future charges <br />under each city's Services Agreement. <br />8. Participating cities are making a ten (10) year operational <br />commitment. <br />9. Maximum construction costs may increase under the following <br />conditions: <br />I. The recalculation under number 5 above. There will be <br />winners and losers, if applied. <br />II. One or more cities fail to execute the Participation <br />Agreement. The maximum shelter cost of $35M is based <br />on all existing contract cities signing the Participation <br />Agreement. If any cities do not sign the Participation <br />Agreement, then the maximum cost to the remaining cities <br />may increase. While there is built -in scalability in the <br />County's design -build contract, there are also some fixed <br />costs that cannot be adjusted. <br />III. When a city fails to make payment under the 10 year <br />payment plan. If a city defaults on its payments, the <br />County will pursue all legal remedies and the remaining <br />cities may also pursue legal remedies. Should the non- <br />paying city pay any amount owing, the increased cost to <br />other cities will be reimbursed. <br />Agreement for Provision of Animal Care Services <br />A. Ten year term. County will still issue an annual Notice of Intent. <br />19G -6 <br />