years with an automatic first renewal term of ten years based on modified terms negotiated by the parties or determined by arbitration. In addition, there is a termination clause of 6 months.

County will pay to the Corporation, and defines the methodology for determining the cost of services in subsequent years.

with the Board’s resolution, that new or additional health care services be provided upon payment of full net costs. In the subsequent years the County will identify the services that it wishes for its residents and the corporation will produce data on the net cost of those operations. The County and the Corporation will agree on a number. If both parties cannot agree that number will be submitted to arbitration.

Discussion of the April 1st audit date also ensued. Leg. Swanson asked whether the audited amount would be a one line item in the budget. Mr. Miller stated that in the first year it is one line but in the second year it is a service by service line item.

consistent with Section 12 of the Resolution. The County will provide capital financing in somewhat of the same manner as it is done today. In addition, a cash advance may be approved after the adoption of a bond but prior to the actual sales of the bonds.

Payable and Close of Books. Under these provisions there is a winddown of the operations of the Department of Hospitals and a new start up of the Corporation rather than a transfer of accounts. The Corporation will turn over documents to the Department of Finance on a weekly basis. The accounts payable at the end of the year will be less than the accounts receivable. Due to this method, the Corporation starts clean but they start without any money. The Corporation will seek to attain a line of credit, and the County will guarantee the line of credit. In addition, during the second 6 months of the year, after the county has received 60 percent of the taxes, the Corporation can borrow from the county for working capital purposes. The concept behind this method is to reduce the interest cost by keeping it between the two entities. Ms. Slaatten stated that the County is not obligated to do same, but most probably the Corporation will ask.

line of credit from a commercial bank for up to 120 days of working capital. The County will guarantee the line of credit.

Fund, and Transfer of 6-N Reserve Fund. The corporation will assume all liabilities and obligations as directed by the Board’s resolution.

machinery and automobiles are transferable with two restrictions: 1. tax-exempt debt for private use cannot be applied for public; 2. if any piece of equipment, with a value of $25,000 or more, is no longer valid the Corporation will contact the County and ask whether they should tender that piece back. If the County does not accept the item, the Corporation can then dispose of it. This would not apply to trade-ins.

enterprise fund are transferred to the Corporation.

department of hospitals will be assigned. These contracts are in the process of being reviewed.

purpose is to resolve issues before they become disputes and find out if there is any aspect of this transaction that is not working. (from section 3 of the Bol’s resolution) Leg. Stewart-Cousins questioned whether these recommendations were binding. Mr. Meehan answered, No. Ms. Slaatten stated this is a way to work out issues before they become problems.

that this agreement is executory pending appropriation of funds for 1998.

parties cannot solve a problem, they appoint a third arbitrator. Each party pays the cost of its own arbitrator and splits the cost of the third. The arbitrators ruling is binding.

clause that extends time for either party if events beyond their control occur.

and indemnifies the other for its own negligence.