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7.3.A. - Page 6 Attachment A <br /> NOW, THEREFORE, the Parties agree as follows: <br /> 1. Construction Cost Allocation Methodology: The Parties agree that construction costs for the <br /> new Animal Care Shelter facility shall be allocated among the Parties based on the formula set <br /> forth in Exhibit A to this Agreement, which is incorporated herein by reference. This formula <br /> reflects each Party's actual use of the existing Animal Care Shelter facility in 2009, 2010, and <br /> 2011 as a percentage of all Parties' total use of the facility, as well as each Party's total <br /> population as of 2010, as a percentage of the County's total population as of that date. The <br /> formula is weighted 80% to a City's average facility use over the three years preceding the year <br /> in question and 20% to population. The Parties agree that each year, the County shall recalculate <br /> three year average facility usage for each City and that Exhibit A (and each Party's prospective <br /> Lease Payment obligations, as described in Section 3 of this Agreement) shall be amended to <br /> reflect such recalculations. The Parties further agree that the County shall, upon request of a <br /> City, promptly provide the requesting City with copies of the data and documents used to <br /> calculate each City's facilities usage. <br /> 2. County Advancing Construction Costs: The Parties agree that the County shall advance, on <br /> an interest free basis, all funds required to pay the construction costs for the new Animal Care <br /> Shelter facility. For purposes of this Agreement, "construction costs" include all expenses for <br /> architectural and inspector services, project management service, environmental review, <br /> planning and building fees and costs, and actual contractor construction services. The Parties <br /> understand and agree that construction costs for the Animal Care Shelter facility are anticipated <br /> at this time to be twenty million two hundred thousand dollars ($20,200,000). The Parties will <br /> be provided with further information regarding the construction costs for the Animal Care <br /> Shelter facility within a reasonable period of time after such information becomes available or <br /> prior to the Certificate of Occupancy being issued. The Parties agree that if the County receives <br /> information indicating that the construction costs for the Animal Care Shelter facility will exceed <br /> $20,200,000 by 10% or more, the County shall provide notice to each City of the revised <br /> estimated construction costs within a reasonable period of time before such additional <br /> construction costs are incurred. The Parties further agree that the County shall, upon request of a <br /> City, promptly confer with such City or Cities regarding the additional construction costs and <br /> any means by which such additional construction costs may be minimized. <br /> 3. Parties' Payment of Proportional Share of Construction Costs: Each Party agrees that, during <br /> the term of this Agreement for as long as the new Animal Care Shelter facility is occupied and <br /> used for animal care shelter purposes, the Party shall pay the County an annual Lease Payment <br /> beginning on the first July 1St after a certificate of occupancy is issued for the new Animal Care <br /> Shelter facility, and on each subsequent July 1st for the next twenty nine years thereafter. Each <br /> Party's Lease Payment shall be equal to the Party's proportional share of the construction cost of <br /> the new Animal Care Shelter facility amortized on a straight line basis over thirty years, as set <br /> ATTY/AGR/2014.038/ANIMAL CONTROL MOA <br /> REV: 03-17-14 PT <br /> Page 2 of 8 <br />