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Article VIII– HEALTH DISTRICT FACILITIES

1. Acquisition and Maintenance of Property for Public Health Purposes

(a) Member municipalities that comprise the District who desire to acquire real property interests and assets to conduct the affairs of the District, shall enter into interlocal agreement for that purpose, for defining the method of financing the acquisition, and for setting forth a formula or other method of determining the proportionate ownership shares of the participating member municipalities, hereinafter referred to as “Purchase Agreement.”

(b) The Purchase Agreement also shall provide for the use of any rental income, provided, that no rental income shall be used for general Health District program costs until all acquisition, operating, maintenance, repair and replacement costs have been satisfied for that fiscal year. Rental income that exceeds any such costs in any fiscal year shall not be included in the District budget until the Board approves a plan for the use of such revenues.

(c) Acquisitions hereunder shall be used for the delivery of public health services and also may be used for tenancies that provide some rental income for the District.

(d) Interests in real property acquired hereunder shall become Health District assets and shall be owned by member municipalities as undivided tenants in common according to the terms of the Purchase Agreement.

(e) Ownership interests shall remain undivided until either of the following occur:

(1) The Board finds that the asset no longer is used for the delivery of any public health services, or

(2) Snohomish County assumes sole responsibility for public health governance as provided by law.

(f) When all payments have been made under terms of the Purchase Agreement, the District shall calculate the proportionate ownership interests of the member municipalities as a percentage of the sum of all payments divided by the total paid by all participating member municipalities. Such percentages shall apply to sales set forth in Section (2).

2. Sale of Property

(a) When a real property interest or asset ceases to be used for the delivery of any public health services, the property shall be appraised and sold. The percentage of ownership of the respective participating municipalities shall be calculated according to the terms of the Purchase Agreement, and sale proceeds shall be distributed accordingly.

(b) At any such time that Snohomish County decides to assume sole responsibility for public health governance as provided by law, the other participating municipalities’ ownership interests shall be transferred to the County and the County shall pay to the other participating member municipalities according to the following steps before any dissolution action by the County.

(1) The property shall be appraised by a qualified appraiser approved by the Board.

(2) The ownership interests of the respective participating municipalities shall be calculated according to the terms of the Purchase Agreement which shall be expressed as a percentage of the sum of all payments made by a participating municipality divided by the total paid by all participating municipalities to acquire exclusive title to the asset.

(3) The County shall pay a sum equal to the respective participating municipalities’ ownership interests for any down payment and cash contributions (principal and interest) within five years from the date the County determined to assume sole governance responsibility, unless otherwise agreed by the Board.

(4) The County shall pay a sum equal to the respective participating municipalities’ ownership interests for any appreciated equity within ten years after payments are made under Subsection (3) above, unless otherwise agreed by the Board.

(5) Any member municipality who is not a party to the Purchase Agreement but who contributes according to the terms thereof shall be paid by the County only for funds actually paid within ten years from the date the County determined to assume sole governance responsibility, unless otherwise agreed between the County and such member municipality.

(6) The rate of interest, if any, on unpaid balances shall be determined by agreement between the County and other members of the Board.

[Amended during Regular Meeting, August 8, 1995].

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