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1997-07 to 07 D2 Providence Health & Services - Washington dba Providence Kodiak Island Counseling Center Lease Agreement199 7- 01 %�>- a THIS AMENDMENT NO.2 TO LEASE AGREEMENT ("Amendment") is entered into as of April 21, 2017, by and between Providence Health & Services -Washington (formerly known as Sisters of Providence in Washington and Providence Health System -Washington) dba Providence Kodiak Island Counseling Center ("Providence"), and Kodiak Island Borough ("Landlord"). Providence and Landlord are sometimes referred to in this Amendment as a "Party" or, collectively, as the "Parties." RECITALS A. Providence and Landlord entered into that certain Lease Agreement dated January 2, 1998, and amended April 21, 2017 ("Lease") pursuant to which Providence leased certain space from Landlord. Providence uses that space to operate Providence Kodiak Island Counseling Center (PKICC). B. The parties recently extended that certain lease for PKICC to complete negotiating a new lease for Providence Kodiak Island Medical Center (PKIMC). The parties have recently completed negotiating a new lease agreement for PKIMC and now wish to begin negotiations on a new lease for PKICC. C. The Parties wish to extend the term of the existing PKICC lease until the end of 2017 to allow time to negotiate a new lease for PKICC. D. The parties anticipate signing new lease for PKICC prior to the end of 2017. AMENDMENT THE PARTIES AGREE AS FOLLOWS: 1. Extension of Term. Subject to the Parties' respective termination rights as set forth in the Lease, the term of the Lease is hereby extended through December 31, 2017. 2. Capitalized Terms. All capitalized terms in this Amendment shall have the same meaning given to such terms in the Lease unless otherwise specified in this Amendment. 3. Continuation of Lease. Except as specifically amended pursuant to the foregoing, the Lease shall continue in full force and effect in accordance with the terms in existence as of the date of this Amendment. After the date of this Amendment, any reference to the Lease shall mean the Lease as amended by this Amendment. The Parties have executed this Amendment on the date first above written. PROVIDENCE Providence Health & Services - Washington dba Providence Kodiak Island Medical Center By Bruce Lamb4ux Its SVP and Alaska Region Chief Executive LANDLORD C- 9-7-dJ April 2, 1997 Mr. Jerome M. Selby Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615-6398 Dear Jerome: 3200 PROVIDENCE DRIVE PO. BOX 196604 ANCHORAGE, ALASKA 99519-6604 Tel 907 562-2211 P"^cIVED APR 0 21997 Mayor's Ottice Thank you for all your efforts in bringing this lease agreement and accompanying partnership to this stage. We have enjoyed our working relationship and look forward to the collaborative management of the Providence Kodiak Island Medical Center. Enclosed you will find three original signed agreements for the Kodiak Island Medical Center, we have kept three within our system. Thank you again and we look forward to the official transition date of April 21, 1997 and the following celebration on May 12, 1997. dlv:h:doup:kodtran June 24, 1997 Jerome M. Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: PROVIDENCE HOSPITAL LEASE Our File 4702-632 Dear Jerome: GENTRY ANCHORAGE OFFICE: 1200 1 BTREET. BUG[ 704 ANOIORAO[, AWNA 99501 T[LEIHONE AND I" (907)270•[100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 005 FIRfT AYWUE SEATTLE. WASHINGTON 90104 TCL ON& (200) 022.7034 FAUWILE: (200) 023.7521 P'7'^ArYuED JUN 2 5 1997 N1ayo,rs z0ffice Please find enclosed a draft ordinance revising the duties of the hospital advisory board. I will let you know more on this issue after I have a chance to talk to Stephanie Phillips about Providence's concerns. Sincerely, JAMIN, EBELL, BOLGER & GENTRY s� `r Bolger JHB:Isb cc: Robin Heinrichs, Presiding Officer 4702%32L.006 JAMIN, EBELL, BOLGER & A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 323 CAROLYN STREET JOEL H. BOLGER KODIAK. ALASKA 99815 ATTORNEY AT LAW ADMITTED TO ALASKA TELEPHONE: (907) 488-8024 AND WASHINGTON BARS FACSIMILE: (907) 488.8112 E-MAIL: JO"JEBGKOD.COM REPLY TO KODIAK OFFICE June 24, 1997 Jerome M. Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: PROVIDENCE HOSPITAL LEASE Our File 4702-632 Dear Jerome: GENTRY ANCHORAGE OFFICE: 1200 1 BTREET. BUG[ 704 ANOIORAO[, AWNA 99501 T[LEIHONE AND I" (907)270•[100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 005 FIRfT AYWUE SEATTLE. WASHINGTON 90104 TCL ON& (200) 022.7034 FAUWILE: (200) 023.7521 P'7'^ArYuED JUN 2 5 1997 N1ayo,rs z0ffice Please find enclosed a draft ordinance revising the duties of the hospital advisory board. I will let you know more on this issue after I have a chance to talk to Stephanie Phillips about Providence's concerns. Sincerely, JAMIN, EBELL, BOLGER & GENTRY s� `r Bolger JHB:Isb cc: Robin Heinrichs, Presiding Officer 4702%32L.006 JAMIN, EBELL, BOLGER & GENTRY E-MAIL- JOELYJEBOKOD.COM REPLY TO KODIAK OFFICE June 24, 1997 Jerome M. Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: PROVIDENCE HOSPITAL LEASE Our File 4702-632 Dear Jerome: PCo✓�neN[£ tEa3z F ,...E ANCHORAGE OFFICE: 1200 I B mT. BGDE 704 AHCIIORABE, ALASKA 99501 TOLOPHON2 AND PA2 (907)27B•S IOD SEATTLE OFFICC 200 MUTUAL LOR BUILOBIB Boo nRBT AWDIUE 911ATTL2, WNHINOTON BBI OA TELOn1006L (200) 621.76" PAO,,BDLC (200)022-7521 RECEIVED 2h 7 Kn1)I, QFFITROUGH , J GH CLEtK Please find enclosed a draft ordinance revising the duties of the hospital advisory board. I will let you know more on this issue after I have a chance to talk to Stephanie Phillips about Providence's concerns. Sincerely, JAMIN, EBELL, BOLGER & GENTRY JHB:Isb cc: Robin Heinrichs, Presiding Officer 470ZIML.006 A PROPOBSIONAL CORPORATION ATTORNEYS AT LAW 323 CAROLYN STREET JOEL H. BOLGER KODIAK. ALASKA 98815 ATTORNEY AT LAW ADMrI TED TO ALASKA TELEPHONE: (907) 486-6024 AND WASHINGTON BARB FACSIMILE: (907) 486-6112 E-MAIL- JOELYJEBOKOD.COM REPLY TO KODIAK OFFICE June 24, 1997 Jerome M. Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Re: PROVIDENCE HOSPITAL LEASE Our File 4702-632 Dear Jerome: PCo✓�neN[£ tEa3z F ,...E ANCHORAGE OFFICE: 1200 I B mT. BGDE 704 AHCIIORABE, ALASKA 99501 TOLOPHON2 AND PA2 (907)27B•S IOD SEATTLE OFFICC 200 MUTUAL LOR BUILOBIB Boo nRBT AWDIUE 911ATTL2, WNHINOTON BBI OA TELOn1006L (200) 621.76" PAO,,BDLC (200)022-7521 RECEIVED 2h 7 Kn1)I, QFFITROUGH , J GH CLEtK Please find enclosed a draft ordinance revising the duties of the hospital advisory board. I will let you know more on this issue after I have a chance to talk to Stephanie Phillips about Providence's concerns. Sincerely, JAMIN, EBELL, BOLGER & GENTRY JHB:Isb cc: Robin Heinrichs, Presiding Officer 470ZIML.006 LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as"KIB"), and SISTERS OF PROVIDENCE IN WASHINGTON d/b/a PROVIDENCE HEALTH SYSTEM IN ALASKA, a Washington non-profit corporation (hereinafter referred to as "Providence'). WITNESSETH: WHEREAS, KIB is the owner of certain real property consisting of a Health Care Facility together with improvements located thereon, and certain Equipment located in and about the Premises known as Kodiak Island Hospital and Care Center, (hereinafter referred to as the'Hospital'); WHEREAS, the Borough, in the interests of sound fiscal management and to ensure the continued operation of the Hospital in a professional and efficient manner, has requested Providence to lease and operate the Hospital; WHEREAS, Providence owns and operates a number of health care facilities, that are operated in keeping with its philosophy, mission and values; and WHEREAS, Providence desires to lease the Premises and the Equipment from KIB, subject to the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows: LEASE AGREEMENT - Page 1 of 28 1.1 AGREEMENT TO LEASE: KIB agrees to lease to Providence and Providence agrees to take from KIB, the Premises and Equipment described herein, for the term and upon the terms and conditions set forth in this Agreement. 2.1 PREMISES: The real estate which is the subject matter of this Agreement is described as follows: Lot Two -A (2-A) Hospital Subdivision according to Plat 95-03, located in the Kodiak Recording District, Third Judicial District, State of Alaska. including all buildings, appurtenances, and improvements thereto, (herein referred to as "Premises"). KIB is in the process of remodeling the current hospital facility, pursuant to architectural drawings which have been provided to Providence. In addition, KIB intends to relocate certain services to the new hospital facility. The parties'acknowledge that KIB, by a target date of June 30, 1997, intends to complete the remodeling of the old facility in accordance with such architectural drawings and transfer certain services to the new facility which collectively shall be referred to as the Premises herein. KIB shall be solely responsible for all financial costs associated with the remodel of the old facility and transitional costs to the new hospital facility. 3.1 EQUIPMENT: The Equipment which is the subject matter of this Agreement is all of the Equipment presently located in or on the Premises, in an "as is" condition, and all Equipment to be acquired during the term of this Agreement. The 1991 Champion Coach 18 passenger bus presently used in connection with the extended care facility will be included with the Equipment, but it may be later withdrawn by KIB, without obligation, to be used for a public transit system. LEASE AGREEMENT - Page 2 of 28 3.2 KIB agrees to provide a minimum of $150,000 per year for purchase of new and replacement Equipment for the Hospital. KIB will purchase a CT Scan when that purchase becomes necessary and other major items will be discussed. The funds for purchase may be provided by the Fern Fuller Estate and Charitable Remainder Unitrust, revenue sharing or legislative grant funds provided by the State of Alaska to KIB, or other capital funds provided by KIB. Any Equipment purchased with funds from KIB will remain the property of KIB at the termination of this Agreement. 3.3 Providence may purchase additional equipment to be used in the maintenance or improvement of the Hospital's operations. Such additional equipment shall be Providence's property, and shall be tagged as such. Upon termination or expiration of this Agreement, KIB may purchase any items of equipment used in the Hospital and paid for by Providence. The purchase price shall be the market value of the acquired equipment less an amount equal to an allowance for depreciation of the equipment between acquisition and termination calculated pursuant to generally accepted accounting principles. Any equipment or personal property which belongs to Providence and is not purchased by KIB may be removed by Providence after the termination or expiration of this Agreement. 4.1 TERM OF AGREEMENT: The Premises and Equipment shall be leased to Providence by KIB for a term of ten (10) years, commencing on April 21, 1997, through and including April 20, 2007, unless sooner terminated as hereinafter provided. 4.2 Provided that Providence is not in default under this Lease Agreement, Providence shall have the option to extend this Lease Agreement for one additional term of ten (10) years by providing KIB with 180 days prior written notice. The extended term LEASE AGREEMENT - Page 3 of 28 shall be on the same terms and conditions of this Lease Agreement with monthly lease payments to be established by negotiation. 4.3 At the expiration of the term of this agreement or upon the termination of this agreement as provided for herein, Providence shall surrender possession of the Premises and Equipment to KIB as set forth under the terms of this Agreement. 5.1 FIRST RIGHT TO PURCHASE: KIB hereby gives and grants to Providence the first right to purchase all of KIB'S interest in the Hospital, Premises, and Equipment at any time from the date of this Agreement until the termination of this Agreement as provided for herein. KIB shall make any sale of said interest in the Hospital, Premises and Equipment between KIB and a third party conditioned upon and subject to Providence's first right to purchase as set out herein. Providence shall have the right to accept the purchase price and the terms of the intended sale to the third party as the terms and conditions of the sale between KIB and Providence. 5.2 Providence may exercise its first right to purchase by executing within ninety (90) days of notice of KIB'S intent to sell its interest in the Hospital, Premises and Equipment an agreement for the purchase of said interest in the Hospital, Premises and Equipment on terms and conditions as agreed between the parties. If Providence does not exercise its first right to purchase as provided for herein or enter into a purchase with KIB within ninety (90) days of the notice by KIB to Providence of its first right to purchase, then and in that event Providence's first right to purchase shall lapse and KIB may sell the Hospital, Premises and Equipment or any part thereof to said third party or any other parties. LEASE AGREEMENT - Page 4 of 28 6 1 MONT I y i EAaE PAYMENT SCHEDULE. The fixed minimum monthly lease payment during the term of this Agreement shall be SIXTY THOUSAND DOLLARS ($60,000) payable by Tenant in equal monthly installments, on or before the first day of each month in advance, at the office of KIB or at such other place designated by KIB, without any prior demand therefor, and without any deduction or setoff whatsoever. 7,1 DOWN PAYMENT: Providence shall contemporaneously with the execution of this agreement, deposit with KIB the sum of TWO MILLION DOLLARS ($2,000,000) representing a down payment in consideration for the right to lease the Premises as set forth herein. This down payment is non-refundable (except to the extent that it may be recovered from operations) and consequently may be used by KIB for the construction or remodel of a portion of the Premises without the risk of any remaining claim by Providence. Provided, however, that if KIB exercises.the power of termination without cause as provided in Section 37.1, then KIB will refund the sum of $200,000 per year for each year remaining, at the time of termination, in the original ten-year term of this agreement. 8,1 H^SPITAL OPERATIONS: Providence shall be responsible for the total operation of the Hospital. Providence shall operate the Hospital under the name Providence Kodiak Island Medical Center. Except as otherwise stated herein, Providence assumes all the rights, duties, liabilities and obligations which shall arise out of its operation of the Hospital and other activities on the Premises during the term of this Agreement. Providence shall cause all expenses incurred in operation of the Hospital after the effective dated of this Agreement to be paid, including, but not limited to, utilities, insurance, salaries, supplies, fees, benefits and other costs normally incurred in the operation of the Hospital. LEASE AGREEMENT- Page 5 of 28 8.2 All revenues and cash collections from patients, third -party payers and other sources billed and collected by Providence, and arising out of or related to services rendered during the term of this Agreement, shall be used to offset operating expenses (which includes rent payments and a return of operations to Providence for the $2 million downpayment) and capital equipment purchases incurred (in excess of KIB contributions) on or after the effective date of this Agreement. The excess, if any, of such revenues over operating expenses and capital expenditures shall be divided on an equal basis between Providence return on operations and KIB funded depreciation until each fund reaches a maximum of $600,000 per year. The balance, if any, shall accrue to the sole financial benefit of Hospital. intain separate accounting 'records and financial 8.3 Providence shall ma statements for the Hospital and shall provide KIB with the Hospital's year-end financial statements. KIB recognizes that Providence may, at its discretion, change the fiscal year of the Hospital to be aligned with Providence Health System. 8.4 Providence may conduct medical educational training programs at the Hospital, including training of interns and residents and other medical/technical personnel, in a manner consistent with applicable governmental regulations. 8.5 Providence shall have access to all prior financial, business, medical and other Hospital books and records, including, but not limited to, admitting register books, pricing schedules of the Kodiak Island Hospital and room services, patients' insurance records, pertinent Hospital personnel records and such other books and records as are necessary to the continued operation of the Hospital. Original copies of all such books and records shall be maintained and stored in the Hospital at all times. No such books and LEASE AGREEMENT - Page 6of 28 records may be destroyed without the consent of the KIB, and in no event will patient medical records be destroyed, except in accordance with federal and state laws, rules and regulations. KIB agrees to defend and hold Providence harmless against all claims, liability and expense resulting from acts or omissions of KIB in connection with such books and records and relating to the period prior to the effective date of this Agreement. KIB shall continue to be liable for the performance of all agreements related to such books and records not so assigned to Providence. 9,1 UTILITIES: Providence shall arrange and pay for all utilities and other services to be furnished to the Premises, including gas, fuel, oil, electricity, sewer, water, telephone, and garbage collection. All utilities shall be prorated between the parties as of the effective date of this Agreement. 9.2 KIB agrees to refund up to $200,000 of the down payment referenced in section 7.1 to the extent that the utility expenses for the first year of operation under this Lease Agreement exceed $520,000. 10.1 TAXES: Providence shall be responsible for and shall pay before delinquency all governmental taxes, assessments charges or liens assessed during the term of this agreement against any leasehold interest or property of any kind or income or sales of any kind related to the Premises. KIB acknowledges that Providence will be entitled to a property tax exemption for property used exclusively for non-profit hospital purposes pursuant to AS 29.45.030(a)(3), except to the extent that the leasehold Premises are used by non-exempt parties for their private business purposes as elaborated in treater Anh� Drage Area Borough v Sisters of Charity, 553 P.2d 467 (Alaska 1976). Providence may contest, by appropriate proceedings, any tax assessment, charge or lien, LEASE AGREEMENT -Page 7 o 28 but such contest shall not subject any part of the Premises or Equipment to forfeiture or loss. Providence and KIB agree to negotiate in good faith regarding any KIB property taxes levied or assessed on the Premises and Equipment owned by KIB and leased to Providence, or any property owned by Providence during the term of this Agreement. 11.1 SUPPLIES: Providence shall take ownership of all the supplies maintained at the Hospital at the commencement of this Lease Agreement. Providence shall supply and maintain all expendable Hospital supplies as may be required in Providence's discretion for the proper operation of the Hospital. Upon termination of this Agreement, Providence will transfer ownership of all of the supplies maintained at the Hospital to KIB. The value of the supplies provided by Providence at the termination of this Agreement shall be equal to the value of the supplies transfered to Providence atthe commencement of this Agreement multiplied by a fraction the numerator of which is the Consumer Price Index for all items for the area geographically nearest to Kodiak Alaska published by the Bureau of Labor Statistics, United States Department of Labor, or if none, by any other instrumentality of the United States or the State of Alaska for the area geographically nearest to Kodiak, Alaska (the "CPI") at the termination of the Lease, and the denominator which is the CPI for the first full calendar month of the Lease term. If Providence does not transfer sufficient supplies under the formula in the previous sentence, then Providence will pay the balance to KIB at the time of termination. 12.1JOSE_: Providence shall use and operate the Premises for a general acute care hospital, extended care facility, home health care provider, retail pharmacy and for any additional health care related purposes as may be appropriate. Providence shall provide, equip and maintain adequate facilities for the continuation of full range general LEASE AGREEMENT - Page 8of 28 medical and surgery services at not less than the level of the state of the art available presently at the Hospital on April 21, 1997, or such greater level as economically feasible and warranted by the local physicians' levels of ability and the reasonable needs of the community, as determined in Providence's sole discretion and in accordance with the terms and conditions as set forth in this Agreement. Providence may convert parts of the Premises into use for other related purposes consistent with KIB's obligation to supply its inhabitants with facilities for the care of sick and injured persons. Providence shall operate and maintain a duly licensed Hospital under the Alaska Statutes and in accordance with the standards prescribed by the Alaska Department of Health and Social Services. 13.1 QUIET ENJOYMENT: KIB warrants that Providence, upon paying the rent and any other charges as provided for in this Agreement and upon performing all other obligations herein, shall quietly have, hold and enjoy the Premises without hindrance. 14.1 WARRANTY OF TITLE: KIB hereby warrants that it has good and marketable title to the Premises, subject only to the encumbrances and security interests stated in Exhibit A, attached hereto and incorporated herein. 15.1 PRIOR AGREEMENTS: KIB warrants that entering into this agreement does not breach any commitments or responsibilities of KIB under prior agreements, including but not limited to financing agreements, and that KIB shall defend and hold providence harmless from any claims, liabilities and expenses arising from or in any way related to any prior agreements of KIB except to the extent such agreements are assumed by Providence. 16.1 BUILDING REGULATIONS: KIB warrants that there are no existing violations of applicable building, fire and health code regulations of which it is aware. KIB LEASE AGREEMENT - Page 9 of 28 is responsible for all costs of correcting any existing violations of applicable building, fire and health code regulations. Providence shall otherwise keep and maintain the Premises in good condition. 17,1 CLOSING ACTIVITIES: KIB shall, at its expense, conduct an audit of the hospital's financial statement as of April 20, 1997. The audit shall be performed according to generally accepted accounting principles by an independent certified public accountant approved by Providence. 17.2 KIB shall, at its expense, prepare the Medicare cost report for the period ending April 20, 1997, and repay or set aside any Medicare over payments pertaining to such period or prior periods. Upon request, Providence will make a proposal to KIB for preparation of the cost report. 18.1 CURRENT ASSETS AND CURRENT LIABILITIES: Providence will receive from KIB at Closing current assets defined as accounts receivable, prepaids, and such other current assets of the Hospital as identified in the audit provided under sections 17.1 of this agreement.. Providence will retain and pay all Hospital liabilities, including, accounts payable and accrued liabilities identified in the audit. KIB will retain and pay non- current payables attributable to prior years cost reports related to governmental payers, including those resulting from the filing of the termination cost reports of the Hospital. The excess, if any, of current assets over current liabilities shall accrue to the sole financial benefit of Providence to offset the Hospital operating losses. 18.2 Subject to this Agreement except as otherwise provided during the term of this Agreement, KIB shall retain all liability for notes payable and other debts, however characterized. LEASE AGREEMENT -Page 10 of 28 19.1 ACCREDITATION: Providence will use its best efforts (so long as it is in the best interests of Providence and KIB) to cause the Hospital to become and remain accredited by the Joint Commission on the Accreditation of Health Care Organizations. Providence shall send to the KIB upon any loss of accreditation a written notice that the Hospital is no longer accredited and the reasons for non -accreditation. 20.1 QUALIFICATION FOR MEDICARE AND MEDICAID: Providence will use its best efforts (so long as it is in the mutual interests of KIB and Providence) to cause the Hospital to remain fully qualified as a provider of services under the "Medicare" program, "Medicaid" program, any program successor of either of the above or any other program by Federal, State or local governments providing for the payment or reimbursement for services rendered 21.1 DISPOSAL OF MEDICAL WASTE AND/OR GARBAGE: Providence shall at it's expense, properly and timely dispose of all medical waste and/or garbage refuse according to any and all laws governing disposal of the same. 22.1 INSURANCE: Providence shall, at its expense, maintain throughout the term of this Agreement the following insurance. A. Insurance against loss or damage by fire and such other risks as may be included in the current KIB hazard insurance policy with extended coverage in an amount not less than the replacement value of the Premises from time to time; B. Insurance against claims for personal injury and property damage occurring on the Premises under public liability and malpractice policies with limits of not less than $1,000,000 per person, $3,000,000 per occurrence and $500,000 for property damage arising out of any single occurrence. LEASE AGREEMENT - Page 11 of 28 Such insurance policies may provide for partial self-insurance under the same terms as the policies for hospitals owned and operated by Providence. KIB shall be named as an additional insured party on each such policy of insurance, and certificates thereof shall be furnished to KIB. 22.2 Providence shall also provide tail coverage for hospital professional liability for the KIB and LHS Management System by purchasing coverage with the current carrier which provides coverage for all occurrences since 1987. 22.3 KIB shall, at its expense, maintain throughout the term of this Agreement insurance to cover all conditions, events and liabilities arising out of its actions and activities relating to the Hospital. 23.1 MAINTENANCE AND REPAIRS: Providence shall cause the Hospital to be maintained and repaired in accordance with all state and local codes, and keep the Hospital in a condition at all times acceptable to KIB, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care and such other maintenance and repair work as maybe necessary. KIB shall provide and pay for any major maintenance and repairs in the amount of $10,000 or more. KIB will set up and annually fund a Hospital Fund which shall be used for major repairs and maintenance of the premises and debt requirements. All funds generated from this lease shall be allocated to the Hospital Fund. If Providence, after written notification by KIB refuses or neglects to perform maintenance and repairs within a reasonable period of time, and KIB is required to perform maintenance or make repairs by reason of Providence's negligent acts or omissions, KIB shall have the right, but shall not be obligated to perform such maintenance and repairs LEASE AGREEMENT - Page 120128 on behalf of and for the account of Providence. In such event such work shall be paid for by Providence as additional rent within fifteen (15) days after receipt of a bill from KIB. 24.1 CONDITION ON SURRENDER: Upon termination or expiration of this Agreement, Providence shall surrender the Premises to KIB in substantially the same condition as exists on the date hereof, except for reasonable wear and tear. 25,1 IMPROVEMENTS AND ALTERATIONS: Providence shall make no alterations in, or additions or improvements to, the permanent structure of the Premises without first obtaining the written consent of KIB. Any additions and improvements made to the permanent structure of the Premises shall remain upon and be surrendered with such Premises as a part thereof at the expiration of the term of this Agreement, by lapse of time or as otherwise provided herein. 26.1 CONTRIBUTIONS: In the event that contributions are made to Providence for the benefit of the Hospital and/or KIB, the Providence may accept such contributions, it being understood, however, that Providence shall comply with the wishes of the donor insofar as they are compatible with the operation of the Hospital and that all property purchased with such contributions shall be and remain a part of the Hospital and the property of KIB. Should the terms or conditions of the contribution indicate that it is intended for Providence and not for the Hospital or KIB, Providence shall accept the contribution on its own behalf and utilize the funds in its sole discretion. For purposes Of this paragraph the term "contribution" shall include a gift, bequest, grant or donation of money or property. It is expressly understood that the term "contribution" does not include any money derived by, or from, taxes or other governmental funds or entities. LEASE AGREEMENT -Page 13 o128 26.2 Providence, will identify for KIB in advance of purchase or expenditure, the Equipment, project or repairs for which the contributions will be expended and provide to KIB a full accounting of all expenditures. 26.3 The following contributions will remain under the ownership and control of KIB or other local entities. The parties will cooperate to insure that these funds are expended for the health care purposes for which they are established or provided. A. The revenues of the Kodiak Island Health Care Foundation. B. The Fern Fuller Estate and Charitable Remainder Unitrust. C. Any revenue sharing or legislative grant funds provided by the State of Alaska to KIB. 27.1 MEDICAL STAFF: Any medical physician or osteopathic physician holding an unlimited license or any appropriately licensed dentist, who is recommended for approval by the Medical Staff and approved by the governing board of Providence shall be permitted privileges to practice in the Hospital. This section does not prohibit Providence from entering into an exclusive contract for the practice of an anesthesiologist or another specialist for the benefit of the community. 26.1 HOSPITAL STAFF: There is a full staff employed at the Hospital at the time of this Agreement. Providence will use its best efforts to employ qualified members of the present staff following the commencement of the lease term, subject to Providence's general employment policies. Providence will use its best efforts to maintain the benefits enjoyed by the present staff including employee bargaining units, seniority, wage schedules and retirement benefits, subject to Providence's general employment policies. Providence agrees to use its best efforts to make no reductions in budgeted staff for the LEASE AGREEMENT - Page 14 of 28 first six months of the Lease Agreement. To the extent consistent with Providence's personnel policies and procedures, Providence will give its new employees credit for vacation and sick leave benefits earned while employed by KIB. 29.1 ADMISSION TO HOSPITAL: All persons in need of hospitalization shall be admitted to the Hospital without regard to race, creed, color, national origin or financial circumstances. 30.1 INDEMNIFICATION: Providence hereby agrees to indemnify and hold KIB harmless from and against any and all claims and demands for injury or death to persons and damage to property occurring on the Premises during the term hereof, and will defend KIB from any claim of liability on account thereof. Providence shall have no obligation for, and KIB shall indemnify and hold Providence harmless from and against, any and all liability with respect to any claims resulting from the negligence of KIB or its agents or employees, or any claims arising out of acts or omissions which occurred prior to the effective date of this Agreement. 30.2 Providence shall indemnify, defend, and hold KIB harmless from and against any and all claims, demands, damages, losses, liens, costs and expenses (including attorney's fees and disbursements) which accrue to or are incurred by KIB arising directly or indirectly from or out of or in any way connected with (1) any activities within the Hospital or on the Premises during the term of this Agreement which directly or indirectly resulted in the Premises being contaminated with Hazardous Substances; (2) the discovery of Hazardous Substances on the Premises whose presence was caused during the term of this Agreement; and (3) the clean-up of Hazardous Substances on the Premises whose presence was caused during the term of this Agreement. LEASE AGREEMENT - Page 15 of 28 30.3 KIB shall indemnify, defend, and hold Providence harmless from and against any and all claims, demands, damages, losses, liens, costs, and expenses (including attorney's fees and disbursements) which accrue to or are incurred by Providence arising directly or indirectly from or out of or in any way connected with (1) any activities within the Hospital or on the Premises prior to the term of this Agreement which directly or indirectly resulted in the Hospital and/or the Premises being contaminated with Hazardous Substances; (2) the discovery of Hazardous Substances on the Premises whose presence was caused prior to the term of this Agreement; and (3) the clean-up of Hazardous Substances on the Premises whose presence was caused prior to the term of this Agreement. 31.1 ACCESS TO RECORDS: KIB and Providence further agree that Providence shall retain and make available upon request for a period of four (4) years after the furnishing of such services (operation of the Hospital) as described in this Agreement, the books, documents and records which are necessary to certify the nature and extent of the costs thereof when requested by the Secretary of Health and Human Services or the Comptroller General, or any of their duly authorized representatives. 31.2 If Providence carries out any duties of this Agreement through a subcontract with a related organization, valued at $10,000 or more over a 12 -month period, the Subcontract shall also provide that the Secretary of Health and Human Services or the Comptroller General may have access to the subcontract and the subcontractor's books, documents and records necessary to verify the costs of the subcontract for a period of four (4) years after the services have been furnished. LEASE AGREEMENT -Page 16 of 28 31.3 This provision relating to the above retention and production of documents is included because of possible application of Section 1861(v)(1)(1) of the Social Security Act to this Agreement; if this Section should be found to be inapplicable, then this clause shall be deemed to be inoperative and without force and effect. 31.4 Should this Agreement terminate for any reason, Providence agrees to provide to KIB all personnel records for those employees who are to be re-employed by KIB who consent to the release of such records to KIB. 31.5 Except as otherwise provided herein in subparagraph 25.4, Providence agrees to provide KIB with the books, documents and records, including medical records, in regard to the operation of the Hospital. 31.6 Providence shall provide at no cost to KIB sufficient storage space for KIB to store its existing books and records relating to the Hospital. 32.1 KIB T O APPR IE ADMINISTRATOR: Providence agrees to select and hire, with KIB consultation, a competent chief executive officer for the Hospital to be known as the Administrator. Providence shall conduct annual evaluations regarding the Administrator in consultation with KIB. The Administrator shall attend meetings of the KIB Hospital Advisory Board and KIB, representing Providence and reporting on the condition and affairs of the Hospital. Providence agrees to provide reasonable support and assistance to the Administrator to enable the Administrator to administer the business and affairs of the Hospital in an efficient and business -like manner consistent with the needs of the community. 32.2 Notwithstanding any other terms and conditions of this Agreement to the contrary, in the event this Agreement is terminated prior to the expiration of its full term, LEASE AGREEMENT - Page 17 of 28 rovide an Administrator for the Hospital on a contract basis for then Providence shall p ninety days following the termination if requested by KIB FFI E PACE: 33.1 K DIAK Is LAND HEALTH ARE F NDATI N shall provide reasonable office space to Kodiak Island Health Care Foundation Providenceagrees to pay the salary and reasonable for purposes of a foundation office. Providence benefits for the Foundation director. management and control of the Hospital will 34.1 OVERNAN E: The over all Providence Alaska Service Area Board. It is anticipated that Sy em inresidents o KIB rest with will be eligible to participate as voting members on the Providence Heat Hospital Community Board CpHSACB")• One member shall be appointed from the arson from the community. medical staff and one member shall be a lay P KIB with the approval of Providence, 34.2 An Advisory Board will be appointed by unction as liaison between KIB, the hospital staff, the medical staff, and providence, and f regarding the operation of the and shall be responsive to the concerns of the communityda�e with respect to matters of the Advisory Board up Hospital. Providence shall keep Hospital to the community and the surrounding Hospital policy and the relationship of the Hosp responsibilities of the Advisory Board areas which it serves. Specifically the duties and resp include the following:be suggested A. Review any changes in Hospital policy. Policies may Board; but all require review by the Advisory Board of the by Providence or the Advisory Pursued by administration. Hospital. A policy is defined as a definite course of action as B. Review any new patient care services. LEASE AGREEMENT -Page 180128 C. Review appointments and clinical privileges to the Medical Staff or members which have been recommended for approval by the Medical Staff in accordance with its Medical Staff bylaws, and provide the recommendation of the Medical Staff to the Providence for review and final action. D. Review the operating and capital budgets prepared for the Hospital. E. Review the rate and charge structures in the Hospital. F. Review and comment concerning the quality of care rendered to the patients of the Hospital. G. Review any reports prepared by Providence. H. Cooperate with Providence in meeting the requirements of any Federal or State Law or statutes in retaining the Hospital license; in obtaining or retaining accreditation from Joint Commission on Accreditation of Health Care Organizations and in maintaining the requirement for participation under the Medicare/Medicaid, other government programs and Blue Cross/Blue Shield. I. To assist the Administrator in long range planning for the Hospital. J. To assist Providence in reviewing administrator applicants and recommend a candidate to Providence prior to the appointment of the Administrator by Providence. K. To assist Providence in determining and deciding all matters of policy relating to the public relations of the Hospital and the relationship of the Hospital to the community and the surrounding area which it serves. LEASE AGREEMENT - Page 19 of 28 35.1 RIGHT TO ENTER PREMISES: Upon reasonable notice, Providence shall permit KIB, its agents and employees to have access to and to enter the Premises at all reasonable and necessary times to inspect the Premises. 36.1 DEFAULT REMEDIES: "Event of Default" means any one or more of the following events, whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body: A. Failure to pay rent required by Section 6.1 or 7.1 when such rent becomes due and payable, and continuance of such failure to pay for a period of ten (10) days; or B. Default in the performance, or breach of any other covenant or warranty by Providence under this Agreement, with the exception of any obligations imposed under Exhibit B, and continuance of such default or breach for a period of thirty (30) days after there has been given, by registered or certified mail, to Providence by KIB a written notice specifying such default or breach and requiring it to be remedied stating that such notice is a notice of default hereunder; or C. The entry of a decree or order by a court having jurisdiction in the premises adjudging Providence as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of Providence under the Federal Bankruptcy Act or any other applicable Federal or State law, or appointing a receiver, liquidator, assignee, trustee (or other similar official) of Providence or of any substantial part of its property, or ordering the winding up or liquidation of its affairs; or LEASE AGREEMENT - Page 20 of 28 D. The institution by Providence of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the Federal or State law, or the consent by it to the filing of any such assignee, trustee (or other similar official) of Providence or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors; or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by Providence in furtherance of any such action. 36.2 If an Event of Default by Providence occurs and is continuing, KIB may: A. At its option, declare all installments of rent payable to be immediately due and payable by Providence; B. Re-enter and take possession of the Hospital without termination of this Agreement, and use its best efforts to sublease the Hospital for the account of Providence, holding Providence liable for the difference between the rent and other amounts payable by the sublessee and the rents and other amounts payable by Providence hereunder; C. Terminate this agreement, excluding Providence from possession of the Hospital and use its best efforts to lease the Hospital, or to another for the account of Providence, holding Providence liable for the difference between the rentals received and the rentals which would have been receivable hereunder; D. Terminate this Agreement, exclude Providence from possession of the Hospital and either operate the Hospital or contract with a responsible operator to operate the Hospital; LEASE AGREEMENT - Page 21 of 28 E. With respect to any personal property, exercise any remedies available to a secured party under the Uniform Commercial Code; and/or F. Take whatever action at law or in equity may appear necessary or appropriate to collect the rent then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of Providence under this Agreement. 37.1 TERM_ INATION: At any time either KIB or Providence may terminate this Agreement by one year's written notice to the other party. This Agreement shall terminate one year from the date of such notice without further action by either party and shall be of no further force and effect other than to perform any obligation incurred but not paid prior to the termination. However, if Providence is required to perform any duty or provide any service under the terms of this agreement that is in conflict with the philosophy, mission and values of Sisters of Providence, pursuant to Exhibit B, Providence may terminate this agreement upon 90 days prior written notice to KIB. Upon such termination, Providence shall surrender possession of the Hospital to KIB. On the effective date of such termination KIB shall have the option to purchase any such accounts receivable, inventory, supplies or equipment at a fair market value agreed to by both parties. Providence agrees to co-operate in such a way as to allow KIB to show the Hospital to a prospective tenant or accommodate the active transition needs of KIB for the actual termination. KIB agrees to cooperate in such a way as to accommodate Providence transition needs and the removal of Providence's assets. 38.1 TRANSFERS OF LICENSES AND PERMITS: The parties will cooperate and jointly prepare and file all applications for transfer of licenses and permits incident to LEASE AGREEMENT - Page 22 of 28 operation of the Hospital, including but not limited to transfer of permits for and inventories of alcohol, narcotics and dangerous drugs. 39.1 NOTICES All notices, demands, or other writings in this Agreement provided to be given, made or sent, or which may be given, made or sent, by either party hereto to the other, shall be deemed to have been given, made or sent when made in writing and deposited in the United States Mail, Registered or Certified Mail, postage prepaid, and addressed as follows: KIB: Mayor Kodiak Island Borough 710 Upper Mill Bay Road Kodiak, Alaska 99615 Providence: Chief Executive Providence Health System in Alaska 3200 Providence Drive P.O. Box 196604 Anchorage, Alaska 99519-96604 39.2 The address to which any notice, demand or other writing may be given or made or sent to any party as above provided may be changed by written notice given by such party as above provided. 40.1 A—aala M -E- 1T -tin .r29BLEASE: Providence may assign this Agreement and may sublease the Hospital, in whole or in part, only with the prior consent of the KIB, but subject to each of the following conditions: A. At the time of the making of any such assignment or sublease. there shall be no Event of Default under this Agreement; B. Any assignee will continue to operate the Hospital as a hospital, in accordance with this Agreement; LEASE AGREEMENT -Page 230128 C. Any assignee of this Agreement shall expressly assume and agree to perform and comply with all the covenants and provisions of this Agreement on the part of Providence and shall be jointly and severally liable with Providence for any default in respect to any such covenant or provision; D. No assignment or sublease shall relieve Providence from primary liability for all rents and other payments due and for the performance of all other obligations required under this Agreement; E. In the case of an assignment of the Agreement or a sublease of all or substantially all of the Hospital, the assignee or sublessee shall agree to pay all rent payable by it directly to KIB, less a pro -rata share of reasonable maintenance, repair, or administrative handling costs; F. KIB shall be provided promptly a duplicate original of the instrument or instruments containing such assignment or sublease. Providence may not mortgage or grant a security interest in this Agreement or leasehold interest. Approval of all subleases assigned by Providence shall be concurrent with the terms of this Agreement. Nothing herein will prevent Providence from leasing space to physicians or other health care providers. No assignment for the benefit of creditors or by operation of law shall be effective to transfer any rights to the Assignee. 41.1 DAMAGE OR DESTRUCTI N: destroyed or damaged, the KIB may: When all or any part of the Hospital is A. Proceed promptly to replace, repair, rebuild and restore the Hospital to substantially the same condition as existed before the taking or event causing the damage or destruction. LEASE AGREEMENT - Page 24 of 28 B. All buildings, improvements and equipment acquired in the repair, rebuilding, replacement or restoration of the Hospital, together with any interests in land conveyed to the KIB as necessary for such restoration, shall become a part of the Hospital and available for use and occupancy by Providence without the payment of any rents other than those provided in Section 6.1 and 7.1. C. Rent shall be abated in the event of any destruction of, damage to, or taking all or any part of the Hospital in proportion to the square footage which is unusable by Providence. D. If fifty percent (50%) or more of the Premises are rendered untenantable by the aforementioned causes, KIB shall have the right to be exercised by notice in writing, from and after said occurrence, to elect not to reconstruct the Premises, and in such event this Agreement and the tenancy hereby created shall cease as of the date of such occurrence, the rent to be adjusted as of such date. 42.1 CONDEMNATION: If the Premises, or such part thereof as in the reasonable opinion of Providence renders the remainder unusable for its purpose, shall be acquired by eminent domain, then this Agreement shall cease and terminate as of the date that possession is taken in such proceeding. Such termination, however, shall not be deemed to deprive Providence of any of its rights to receive compensation by reason of such taking. 43.1 WAIVER OF SUBROGATION: KIB and Providence, both on their own behalf and on behalf of all others claiming through or under either of them, hereby mutually waive and release all claims, liabilities and causes of action against the other and the agents, servants, employees and invitees of each other, for all loss, damage to or destruction of the Premises or any portion thereof, as well as the fixtures, equipment, supplies and other LEASE AGREEMENT -Page 26 of 28 property of either party located in, upon or about the Premises resulting from fire or other perils covered by standard fire and extended coverage insurance, whether caused by the negligence of any of said persons or entities or otherwise, except to the extent such waiver would violate or otherwise abrogate the terms of such insurance coverage. 44.1 MISCELLANEOUS: All covenants and agreements in this Agreement by KIB or Providence shall bind their successors and assigns, whether so expressed or not. In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. None of the terms, conditions, covenants or provisions of this Agreement can be waived by either party except by appropriate written instrument. The waiver by either party or any breach of any term, condition, covenant or provision herein contained shall not be deemed a waiver of the same of any term. condition, covenant, or provision herein contained or of any subsequent breach of the same or any other term, condition, covenant or provision herein. This Agreement shall be construed in accordance with the laws of the State of Alaska. Nothing in this Agreement, express or implied, shall give to any person, other than the parties hereto, and their successors and assigns, any benefit or other legal or equitable right, remedy or claim under this Agreement. IN WITNESS WHEREOF the parties have respectively executed this Agreement the day and year written below. SISTERS OF PROVIDENCE IN WASHINGTON d/b/a PROVIDENCE ALAS ME CAL CENTER By: Tile LEASE AGREEMENT - Page 26 of 28 KODIAK ISLAND BOROUGH By:4' ome M. Selby, DATE: STATE OF ALASKA ) ) ss.: THIRD JUDICIAL DISTRICT ) DATE: 2df CA /1 /01 i] THIS IS TO CERTIFY that on the �da _ Y of 1997,�— before me, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Jerome M. Selby, to me known to be the Mayor of the KODIAK ISLAND BOROUGH, and known to me to be the person who executed the above and foregoing instrument on behalf of the municipality, and who acknowledged to me that he executed the same as a free act and deed of the said entity for the uses and purposes therein stated and pursuant to the authority granted to him by the Borough Assembly. WITNESS my hand and notarial seal the day and year first above in this Certificate written. ATTEST: / 1 A NUA*S LEASE AGREEMENT - Page 27 of 28 No ry Public in and r Alask My Commission Expires: 65, 99 VOTARY PUBUC STATE OF ALASKA ) ) ss.: THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the day of 1996, before me, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared , to me known to be the of SISTERS OF PROVIDENCE IN WASHINGTON d/b/a PROVIDENCE ALASKA MEDICAL CENTER, and known to me to be the person who executed the above and foregoing instrument on behalf of the corporation, and who acknowledged to me that he executed the same as a free act and deed of the said entity for the uses and purposes therein stated and pursuant to the authority granted to him by the Board of Directors. WITNESS my hand and notarial seal the day and year first above in this Certificate written. Notary Public in and for Alaska My Commission Expires: 4702\632D.001 LEASE AGREEMENT - Page 28 0128 EXHIBITS Exhibit A............................Title Report Exhibit B.............................Letter from Archbishop Exhibit C.............................Equipment List EXHIBIT A TITLE REPORT WESTERN ALASKA LAND TITLE CO. 503 Marine Way, Suite 3-B P.O. Box 864 Kodiak; Alaska 99615 (907) 486-4433 Fax (907) 486-5109 LIMITED LIABILITY REPORT To: KODIAK ISLAND BOROUGH C/O JAMIN EBELL BOLGER & GENTRY PC ATTN: JOEL BOLGER, ESO. 323 CAROLYN ST. KODIAK, AK 99615 No. WA -10513 Date: February 18, 1997 @ 8:00 a.m. Amount due $250.00 Tax exempt That title to the property described herein is vested on the date shown above in KODIAK ISLAND BOROUGH, an estate in fee simple, subject only to the exceptions shown herein. This report shall have no force or effect except as a basis for the coverage specified herein. Timothy J. Hurley Validating Signatory DESCRIPTION: LOT TWO "A" (2A), HOSPITAL SUBDIVISION, ACCORDING TO PLAT 95-3, LOCATED IN THE KODIAK RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA. - continued - NOTE: Investigation should be made to determine if there arc any service. instillation, maintenance, or Construction charges for sewer, water or electricity. WESTERN ALASKA LAND TITLE COMPANY ORDER NUMBER WA -10513 PAGE TWO SUBJECT TO: 1. Reservations contained in United States Patent. 2. Reservations as set forth in State Patent recorded March 24, 1967 in Book 19D at Page 204. 3. Matters disclosed by Plat 95-3. 4. Right-of-way and Easement granted to Kodiak Electric Association, Inc. and its successors and assigns including the authority to construct, reconstruct, maintain, repair, improve and update an electric transmission and/or distribution line or system, including but not limited to poles, towers, wires, guys and such other structures as Kodiak Electric Association, Inc. may deem necessary, also including the right to remove such things as trees, shrubs, fences or anything else which Kodiak Electric Association, Inc. feels would be a menace or danger to the operation of said system, recorded October 23, 1995 in Book 139 at Page 556. (Affects those portions described therein.) 5. This report is restricted to the use of the addressee, and is not to be used as a basis for closing any transaction affecting title to said premises. Liability of the company for the information provided herein and any claim of negligence resulting therefrom shall be limited to the compensation received therefor. TJH/an 02/26/97 wa-10513.newfolio LETTER FROM ARCHBISHOP e i9q7- 07 Amend�2 t ADDENDUM TO LEASE AGREEMENT This addendum is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as "KIB") and PROVIDENCE HEALTH SYSTEM -WASHINGTON (formerly known as Sisters of Providence in Washington) d/b/a PROVIDENCE HEALTH SYSTEM IN ALASKA, a Washington non-profit corporation (hereinafter referred to as "Providence") For the purposes of this addendum "Providence" includes Providence Alaska Medical Center and Providence Kodiak Island Medical Center. Purpose: This Addendum is entered into between "Providence" and "KIB" in support of continued assess to hospital services within the Kodiak Island Borough. Agreement: In consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows This is an Addendum to the Lease Agreement dated April 21, 1997: (a) "Providence" shall make rent payments to "KIB" during the term of the Lease as described in section 6.1 MONTHLY LEASE PAYMENT SCHEDULE. For the Lease Year commencing 1"Providence" shall pay an additional lease payment of $1,300,000 for use of the hospital facilities owned by "KIB". (b) Unless otherwise agreed by the parties, "Providence" will make the additional lease payment as a single payment, without demand and without setoff, prior notice or demand, at a location designated by the Borough. (c) Thirty (30) days prior to the commencement of each subsequent lease year, "Providence" and "KIB" will negotiate the additional lease payment for the following year. "Providence's" obligation to make any additional lease payments to "KIB" shall be null and void and "KIB" agrees to waive any and all of it's rights (if any) to receive any such additional lease payments from "Providence" upon the occurrence of any or all of the following: 1. Upon "Providence" dissolution, if no successor corporation is organized for at least thirty days thereafter; 2. Upon the loss by "Providence" of any license or certification required by State or Federal Law or Regulations to operate a hospital in Kodiak, Alaska; 3. Upon bankruptcy, insolvency or receivership of "Providence"; Page 1 of 2 4. In the event "Providence", in its sole discretion, fails to obtain disproportionate share funding from the Department of Health and Social Services, State of Alaska sufficient to fund the full -value of the lease payment described in section (a) of this addendum; or 5. In the event "Providence" Medicare revenue declines by more than 50 percent from one year to the next. 6. In the event that KIB fails to make payments required to Providence Kodiak Island Medical Center or Providence Alaska Medical Center pursuant to the terms and conditions of the Intergovernmental Agreement dates as of the same date hereof. In Witness whereof the parties have respectively executed this Addendum the day and year written below. PROVIDENCE H LTH S EM- KODIAK ISLANJBOROU H WASHINGTO d/b/a P FENCE HEALTH ST ALASKA By: By: f%tt2s 90�0 �cGo a• Gn'-L • V SZ.11 * �q% Page 2 of 2 GtitR~`b'r- `J i- e) '/A Amendment "A" Hospital Contract This amendment to the Lease Agreement by and between Kodiak Island Borough (KIB) and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non-profit corporation (hereinafter referred to as "Providence") is made as an Amendment to the Lease Agreement between the parties. This amendment is hereby incorporated into that Agreement by reference and supercedes any provisions of that Agreement that are contrary to this Amendment. Except as modified by this and other Amendments, the Lease Agreement remains in full force and effect. Section 34 of the contract is deleted and replaced as follows: 34.1 Governance: The overall management and control of the Hospital will rest with Providence Alaska Region Board. It is anticipated that two KIB residents will be eligible to participate as voting members on this Board. One member shall be appointed from the hospital medical staff and one member shall be a lay person from the community. 34.2 An advisory Board meeting the requirements of 7AAC 13.030(a) will be appointed by Providence to provide input to the hospital staff, the medical staff, and Providence Alaska Region Board about the concerns of the community regarding the operation of the Hospital and to undertake the responsibilities set out at 7 AAC 13.030(b) and (c). One KIB Assembly member shall be appointed by Providence as a full voting member of the advisory board, and Providence shall give KIB the opportunity for review and comment before appointments to the advisory board are made. Providence shall keep the advisory updated with respect to matters of Hospital policy and the relationship of the Hospital to the community and surrounding areas which it serves. EFFECTIVE DATE of this Agreement is br 1, 2002 Kodiak Island Borough: Its: Oroua � , hAo..1, og ar'-' Borough M ager, Kodiak Islhfid Borough Date: rn o r•jr... LA Address: Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Atttnesst,,::�'� Borough CI k C,0 1 0 PROVIDENCE H T SYSTEM - WASHINGTO =ska: vidence Health Svst in By: o g// e G, Its' Chief Executive, Pr idence ealth System - Alaska Date: 3/0-2— Address: Providence Health System in Alaska b SKA * 1 Q% Amendment "B" Mental Health Center Contract This amendment to the Lease Agreement by and between Kodiak Island Borough (KIB) and Providence Health System — Washington d/b/a Providence Health System in Alaska, a Washington non-profit corporation (hereinafter referred to as "Providence") is made as an Amendment to the Lease Agreement between the parties. This amendment is hereby incorporated into that Agreement by reference and supercedes any provisions of that Agreement that are contrary to this Amendment. Except as modified by this and other Amendments, the Lease Agreement remains in full force and effect. 1. Section 18 of the contract is deleted and replaced as follows: 18`1 Governance: The over all management and control of the Mental Health Center will rest with Providence Alaska Region Board. 18.2 An Advisory Board meeting the requirements of 7 AAC 71.030(a) will be appointed by Providence to provide input to the Mental Health Center staff and Providence Alaska Region Board about the concerns of the community regarding the operation of the Mental Health Center and to undertake the responsibilities set out at 7 AAC 71.030(c) and (d). One KIB Assembly member shall be appointed by Providence as a full voting member of the advisory board, and Providence shall give KIB the opportunity for review and comment before appointments to the advisory board are made. Providence shall keep the advisory board updated with respect to matters of mental health center policy and the relationship of the Mental Health center to the community and surrounding areas which it serves. 2. Sections A.4 and A.5 of Amendment A to the contract are deleted and replaced with a new section A4 as follows: A.4 No less than annually, Providence shall prepare a statement of revenue and expenses for the Kodiak Community Mental Health programs. Any deficits related to operating these programs shall be deducted from the net income generated by the hospital before calculating the KIB/Providence split. In the event that there are insufficient funds generated by the hospital operations to support the Kodiak Community Mental Health programs in any given year, the liability shall accrue against the succeeding years net income from hospital operations. Pafez. PX— tr EFFECTIVE DATE of this Agreement is January, 2002 Kodiak Island Borough: By:. Pai;j 4 " G^^ -- Pat Carlson Its: M Borough Ma ager, Kodiak IslarYd Borough Date: A a rt Z Address: Kodiak Island Borouah 710 Mill Bay Road Kodiak, Alaska 99615 Attest: —9f M c'\4a�' Borough Cler PROVIDENCE HEA WASHINGTON,d�o Health Svsteu6 Ak 0 ence M - (thief Executive, PrOidence Vealtl System - Alaska Date: [ Address: Providence Health System in Alaska 3200 Providence Drive Anchorage, Alaska 99519 a� \�SKA q-> 00f" ykeFq7-136 MENTAL HEALTH SERVICES THIS AGREEMENT is entered into by and between the Kodiak Island Borough, Alaska ("Borough") and Sisters of Providence of Washington, dba Providence Health Systems of Alaska ("Contractor") for the purpose of setting forth terms and conditions pursuant to which the Contractor shall be contracted to provide mental health services. WITNESSETH Section 1. INTENT OF AGREEMENT. The Contractor is hereby contracted to provide a Mental Health in Schools Program as described in the attached collaborative plan and fulfill all of the mental health services required by the attached grants from the State of Alaska Department of Health and Social Services for community mental health support program services. Contractor agrees to be bound by the terms and conditions of the attached collaborative plan and grants. Section 2. SCOPE OF WORK. During Fiscal Year 1998, the Contractor will provide the staffing required to deliver the services specified in the mental health in the schools collaborative plan and the grants from the State of Alaska. The Contractor will complete all documentation, billing and reporting as specified. The Borough will submit the appropriate billings when completed by the Contractor and pass the receipts through to the Contractor. Contractor acknowledges that documentation which is untimely or incomplete may jeopardize or delay payments to the Contractor. Any disallowed expenses will accrue to the Contractor. During Fiscal Year 1999, the Contractor will provide the staffing required to deliver the services specified in the Mental Heath in the Schools collaborative plan. State grants will be managed directly between the Contractor and the State with no Borough involvement. A monthly activity report of all activities of the Contractor will be submitted to the Borough Mayor by the 10th day following the end of each month. Section 3. TERM. Unless earlier terminated, this Agreement will remain in effect beginning January 2, 1998 and ending June 30, 1999. Section 4. COMPENSATION. As compensation for all services rendered under this Agreement, Contractor shall be paid $33,300 per month by the Kodiak Island Borough for the school program and all funds billed and received from the applicable state grants for the term of this Agreement. Said compensation shall be paid in equal installments of $33,300 on the first day of each month from January, 1998 through June, 1999. In addition, all state funds will be paid within five days of receipt from the State of Alaska. Mental Health in Schools Ageement Page 2 of 2 IN WITNESSETH WHEREOF the parties have executed this Agreement on this JL_ day of 1���, ��,: , 1997. KODIAK ISLAND BOROUGH 7 ome M. Selby, Mayor ATTEST: Borough C erk AMENDMElv"T A Tbas amendment to the lease Agreement by and between. KODIAK ISLAND BOROUGH (KIR) and the %STPRS OF PROVIDENCE 1N WASHNNGTON db/a PROVENCE HEALTH SYSTEM IN ALASKA, a Washington non-profit corporation (hereinafter referred to as "Providence) is Made as un Aincudwout to the Lcase Agreement between the parties. This Amendment is hereby incorporated into Haat Agreement by reference and supersedes any provisions of that Agreement that are contrary to this .'amendment. Except as modified by this and other Ame*ents, the U -mc Agl=wvuc muxaius ua full force aid effect. Community Mental Health Center A.1. Providence Health Systcm in Alaska (PIIS A), at its solo discretion, shall establish a community mental health program that will provide mental trealth anal behavioral medicine services to the community of Kodiak Island. A.2. PHSA shall operate its Kodiak Community Mental Health programs in accordance ,A ith the PHSA uiissivu mid valines. A.3. PHSA shall have full accountability for the operations, billing, staffing, etc. of the Kodiak Community Meatal Health programs. i A.4. No less Blatt. annually, PHSA shall prepare a statement of revenue and expemes for the Kodiak Community Mental Health programs. Any deficits related to operating these programs shall lie the responsibility of KIB, payable within 45 days of the cnd of the fiscal year. KIB shall have the right to use its portion of the net profits generated by the hospital as desvfibcd in section 8.2 of this agreement to support deficits related to the Kodiak Coaunaruty Mental Health programs. In the event that there are insufficient funds generated by the hospital operations to support tho Kodiak Community Mental Health programs in any given year.; KTR'c liability shall accrue against aw pxu� eeduig years fact profits from hospital operations. If there are insufficient funds from bespital operations to support KIR's liability related to the Kodiak Comanunity 14tental Health programs for two consecutive years, KIB shall be required to reimbnrsa PHSA in fiill for all deficits uutstaudinS within 45 days of the cnd of'the second fiscal year. A.S. In recogtaition that KIB will be accountable for financial shortfalls related to the community mental health programs, PHSA ^,hall present the mental health program operating budget to 'KIB winually for its review and approval. At a minimum of once per qumler, PHSA shall report the actual financial porformanoe of the mental health programs to kjb- A.6. PHSA shall maintain separate accounting lv ;ucds aald financial staterneuts for the _Kodiak Community Mental Health programs and shall provide M with Ute Kodiak Community Meatal Health programs' year-end $nancial statements. A.7. KM warrants by PHSA, rstablisltuig new Kodiak Community Mental Health programs and by entering into this agreement for KIB w helve financial accountahility for the PHSA Kodiak Community Mental Health programs does not breach any commitonents or responsibilities of KIB under prior agreements, including but rA* bunted do financing and employment agreements, and that KIR shall defend and hold PHSA ha ndess for any 0divaa, llabilitiies and expenses Arising from or in anyway related to any prior agre,mcnts of KIB. A.8. The tc=3 of tb,ia Amcndao"nt shall continue to the extent PASA operates Community Mental Health programb iaa Kodiak. At any time either KIB or PHSA may terminate this Amendment by one year's %vdren notice -tu the other party. 71%6 Amendment shall terminate one year from the date of such notice without further action by either party and shall be of no fi►rther force and effect other than to perform gay obligatiuu iucw red but not paid prior to the termination. SIGNATunEs, SISTERS OF PROVIDENCE IN WASH►NG'roN d/bia Providence Kodiak Island Medical Can By:_ Peter Bigelow Vice President - Health Care Operations Providence Health System in Alaska Washington/Alaska Date: KODIAK ISLAND BOROUGH BY'. (� r� — Jerome Iby Its: Borough Mayor Kodiak Island Borough riFlta' —t t I I ATTEST: l'/Y1 'C L 1 Tina Seelinger, Acting Borough Clerk Item No. 12.A Kodiak Island Borough AGENDA STATEMENT Regular Meeting of October 20, 2005 Contract No. 97-07-B Amending Contract No. 97-07 Agreement Between the KIB & Sisters of Providence in Washington d/b/a Providence Health System in Alaska for Lease of the Kodiak Island Hospital & Care Center. The attached lease is an amendment and restatement of the original Contract 1997-66 with Providence Health System in Alaska to lease and operate Kodiak Island Hospital. The term of the lease is from April 21, 1997 to April 20, 2007 with an option to extend for ten years. In 1997 Providence leased the Hospital with a $2,000,000 down payment and then lease payments of $720,000 per year for the next ten years. If Providence did not lease the Hospital for the full ten years then the proportional amount of the $2,000,000 down payment would be returned to Providence Health System in Alaska. The reason for the proposed amendments is to clear up ambiguities in the original lease that have been realized from several years of operating the hospital; clean up and eliminate unnecessary provisions that are no longer pertinent, can be integrated with the amendments and recognize new confidentiality requirements; maximize cost reimbursement from Medicare/Medicaid through depreciation of equipment; and recognize the relationship with Kodiak Community Health Center ("KCHC") and its operations within the hospital campus. The amended lease recognizes the operation of KCHC. Currently KCHC leases its space from Providence. The amended Providence lease proposes that Kodiak Island Borough ("KIB") will negotiate a lease directly with KCHC and the lease payments with Providence will be adjusted accordingly to take into account the lease with KCHC. Currently, KIB purchases $150,000 of equipment for the hospital every year. Since KIB purchases the equipment, the equipment is on the Borough's books. The amended lease will provide that KIB give Providence $150,000 each year for Providence to purchase equipment. The equipment will then be on Providence's books and Providence will be able to recapture the depreciation in their Medicare/Medicaid rates. In a recent presentation at a KIB Work Session, Hospital officials estimated an increase value to the community over 10 years of approximately $600,000 generated from Medicare and Medicaid reimbursement. The amended lease deletes the profit sharing language. The amended lease allows Providence to retain any profits for use by the hospital for equipment and operations. Providence will spend 50% of each year's profits, up to $200,000 for equipment and retain the profits for the benefit of the Kodiak Island Hospital. Under the current profit sharing provision, Hospital officials indicate the need to have operating income at twice the net operating margin in order to maintain sufficient working capital to operate and to fund cash reserves to replace equipment and expand services to the community. In addition, Hospital officials indicate that dividing the profits with the KIB actually is increasing costs to the community, as prices have to be significantly increased to operate at an acceptable margin. The following table SLlmmari7PR tha finnnriol 4- ♦L --_ ____ ....�..,...... .........n n.nw w Current Contract 11 IV lU[111 tlla. Pro osed Contract 150,000 in equipment each KI�andke KIB will give Providence $150,000 to purchase ele. new a ui ment each ear. KIB retained half of net income (including Providence will keep all income. depreciation on capital assets) less capital Providence will spend 50%, up to $200,000, of expenditures. If an asset is purchased and the previous year's income on equipment to be then depreciated it is a capital expenditure used at the Kodiak Hospital. Providence had to leave a like amount of KIB will give all operating supplies to operating supplies when they left the Providence. Hospital. $277,000 Lease payments of $720,000 per year. Lease payments of $720,000 per year. Providence provided an initial down payment of $2,000,000 for construction of new facility. FISCAL NOTES: ACCOUNT NO.: ® N/A Expenditure Amount Required: Budgeted: FOR AGENDA: The motion before the Assembly is to approve Contract No. 97-07B with Providence Health System - Washington d/b/a Providence Health System in Alaska. 6 e1o/ fo, AMENDED AND RESTATED LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as "KIB"), and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non-profit corporation (hereinafter referred to as "Providence"). WITNESSETH: WHEREAS, KIB is the owner of certain real property consisting of a Health Care Facility together with improvements located thereon, and certain Equipment located in and about the Premises known as Kodiak Island Hospital and Care Center, (hereinafter referred to as "Hospital"); WHEREAS, the KIB, in the interest of sound fiscal management and to ensure the continued operation of the Hospital in a professional and efficient manner, has requested Providence to lease and operate the Hospital; WHEREAS, Providence owns and operates a number of health care facilities, that are operated in keeping with its philosophy, mission and values; and WHEREAS, Providence desires to lease the Premises and the Equipment from KIB, subject to the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows: 1. AGREEMENT TO LEASE: KIB agrees to lease to Providence and Providence agrees to take from KIB, the Premises and Equipment described herein, for the term and upon the terms and conditions set forth in this Agreement. 2. PREMISES: The real estate which is the subject matter of this Agreement is described as follows: Lot Two -A (2-A) Hospital Subdivision according to Plat 95-03, located in the Kodiak Recording District, Third Judicial District, State of Alaska. Including all buildings appurtenances, and improvements thereto, (herein referred to as `Premises"). Notwithstanding anything to the contrary, Providence recognizes and acknowledges that KIB may lease space to other entities contingent upon available space and advance approval from Providence.. 3.1 EQUIPMENT: The Equipment which is the subject matter of this Agreement is all of the Equipment presently located in or on the Premises, in an "as is" condition, at the inception of this Lease Agreement and all Equipment subsequently acquired directly by the KIB. 3.2 NEW AND REPLACEMENT EQUIPMENT: The KIB agrees to budget a minimum of $150,000 each year effective for the KIB fiscal year beginning July 1, 2005, for purchase or lease purchase of new and replacement Equipment for use in the Hospital for the depreciable life of the equipment unless otherwise approved by KIB. This contribution will be paid to Providence on or before January 31 of each calendar year of the Agreement. Providence will place these funds in a Funded Depreciation account for the sole purpose of purchasing or lease purchasing new and replacement equipment for the Hospital. New and replacement equipment will remain on the balance sheet of Providence for the duration of the Lease Agreement. Providence, at the termination or expiration of this Agreement, including Agreement extensions, will transfer assets in an amount equal to the estimated book value of equipment(Exhibit D) purchased with KIB contributions based upon an average useful life of 5 years. 3.3 ADDITIONAL EQUIPMENT: Providence may purchase additional equipment to be used in the maintenance or improvement of the Hospital's operations. Such additional equipment shall be Providence's property, and shall be tagged as such. Upon termination or expiration of this Agreement, KIB may purchase any items of equipment used in the Hospital and paid for by Providence. The purchase price shall be Providence's book value of the acquired equipment. Minor equipment previously expensed by Providence and equipment and furnishings purchased by Providence with no book value shall be contributed to the KIB at the termination or expiration of this Agreement. Any equipment or personal property which belongs to Providence and is not purchased by KIB may be removed by Providence after the termination or expiration of this Agreement. 4.1 TERM OF AGREEMENT: The Premises and Equipment shall be leased to Providence by KIB for a term of ten (10) years, commencing on April 21, 1997, through and including April 20, 2007, unless sooner terminated as hereinafter provided. 4.2 ADDITIONAL TERM: Provided that Providence is not in default under this Lease Agreement, Providence shall have the option to extend this Lease Agreement for one additional term of ten (10) years by providing KIB with 180 days prior written notice. The extended term shall be on the same terms and conditions of this Lease Agreement, or as such terms and conditions are modified upon mutual written agreement of both parties, with monthly lease payments to be established by negotiation. 4.3 SURRENDER OF PREMISES: At the expiration of the term of this agreement or upon the termination of this agreement as provided for herein, Providence shall surrender possession of the Premises and Equipment to KIB as set forth under the terms of this Agreement. 5.1 FIRST RIGHT TO PURCHASE: KIB hereby gives and grants to Providence the first right to purchase all of KIB's interest in the Hospital, Premises, and Equipment at any time from the date of this Agreement until the termination of this Agreement as provided for herein. Said right of first refusal shall include space leased from KIB by other entities. KIB shall make any sale of said interest in the Hospital, Premises and Equipment between KIB and a third party conditioned upon and subject to Providence's first right to purchase as set out herein, including but not limited to space under Lease between KIB and other entities. Providence shall have the right to accept the purchase price and the terms of the intended sale to the third party as the terms and conditions of the sale between KIB and Providence. OA 5.2 NOTICE: Providence may exercise its first right to purchase by executing an agreement within ninety (90) days of notice of KIB'S intent to sell its interest in the Hospital, Premises and Equipment, on terms and conditions as agreed between the parties. If Providence does not exercise its first right to purchase as provided for herein or enter into a purchase with KIB within ninety (90) days of the notice by KIB to Providence of its first right to purchase, then and in that event Providence's first right to purchase shall lapse and KIB may sell the Hospital, Premises and Equipment or any part thereof to said third party or any other parties on substantially the same terms stated in the notice. If KIB does not sell and convey the Hospital, Premises and Equipment within 90 days after expiration of the 90 day notice period, any further transaction shall be deemed a new determination by KIB to sell and convey the Hospital, Premises and Equipment and the provisions of Sections 5.1 and 5.2 shall be applicable. 6. MONTHLY LEASE PAYMENT SCHEDULE: The fixed minimum monthly lease payment during the term of this Agreement shall be SIXTY THOUSAND DOLLARS ($60,000) payable by Providence in equal monthly installments, on or before the first day of each month in advance, at the office of KIB or at such other place designated by KIB, without any prior demand therefore, and without any deduction or setoff whatsoever. Notwithstanding anything to the contrary, this amount shall be reduced by the equivalent of the square foot cost of the hospital, not to include services, ($720,000 times percent of area used) of the premises KIB is leasing to other entities, regardless of the actual amount KIB charges other entities for the leased space. 7.1 HOSPITAL OPERATIONS: Providence shall be responsible for the total operations of the hospital. Providence shall operate the Hospital under the name Providence Kodiak Island Medical Center. Except as otherwise stated herein, Providence assumes all the rights, duties, liabilities and obligations which shall arise out of its operation of the Hospital and other activities on the Premises during the term of this Agreement. Providence shall cause all expenses incurred in operation of the Hospital after the effective date of this Agreement to be paid, including, but not limited to, utilities, insurance, salaries, supplies, fees, benefits and other costs normally incurred in the operation of the Hospital. Providence will spend an amount equal to or greater than 50% of the net operating income, up to a maximum of $200,000, per calendar year for equipment or capital assets to be used at Hospital. These funds will be kept in a Providence Funded Depreciation account, restricted for use at the Hospital. Unused portions of these funds will be carried forward to subsequent years. Funds can also be used to pay debt obligations of Providence Kodiak Island Medical Center. At the termination or expiration of this Lease Agreement unused funds will revert to KIB. 7.2 SEPARATE ACCOUNTING: Providence shall maintain separate accounting records and financial statements for the operations of the Hospital and shall provide KIB with the Hospital's year-end financial statements. KIB recognizes that Providence may, at its discretion, change the fiscal year of the Hospital to be aligned with Providence Health System. 7.3 TRAINING: Providence may conduct medical educational training programs at the Hospital, including training of interns and residents and other medical/technical personnel, in a manner consistent with applicable governmental regulations. 3 7.4 ACCESS TO BUSINESS RECORDS: Providence shall have access to all prior financial, business, medical and other Kodiak Island Hospital books and records, including, but not limited to, admitting register books, pricing schedules of the Kodiak Island Hospital and room services, patients' insurance records, pertinent Kodiak Island Hospital personnel records and such other books and records as are necessary to the continued operation of the Hospital. Original copies of all such books and records shall be maintained and stored in the Hospital at all times. No such books and records may be destroyed without the consent of the KIB, and in no event will patient medical records be destroyed, except in accordance with federal and state laws, rules and regulations. KIB agrees to defend and hold Providence harmless against all claims, liability and expense resulting from acts or omissions of KIB in connection with such books and records and relating to the period prior to the effective date of this Agreement. KIB shall continue to be liable for the performance of all agreements related to such books and records not so assigned to Providence. 8. UTILITIES: Providence shall arrange and pay for all utilities and other services to be furnished to the Premises, including gas, fuel, oil, electricity, sewer, water, telephone, and garbage collection. 9. TAXES: Providence shall be responsible for and shall pay before delinquency all governmental taxes, assessments charges or liens assessed during the term of this Agreement against any leasehold interest or property of any kind or income or sales of any kind related to the Premises. KIB acknowledges that Providence will be entitled to a property tax exemption for property used exclusively for non-profit hospital purposes pursuant to AS 29.45.030(x)(3), except to the extent that the leasehold Premises are used by non-exempt parties for their private business purposes as elaborated in Greater Anchorage Area Borough v Sisters of Charity, 553 P.2d 467 (Alaska 1976). Providence may contest, by appropriate proceedings, any tax assessment, charge or lien, but such contest shall not subject any part of the Premises or Equipment to forfeiture or loss. Providence and KIB agree to negotiate in good faith regarding any KIB property taxes levied or assessed on the Premises and Equipment owned by KIB and leased to Providence, or any property owned by Providence during the term of this Agreement. 10. SUPPLIES: Providence shall take ownership all of the supplies maintained at the Hospital at the commencement of this Lease Agreement. Providence shall supply and maintain all expendable Hospital supplies as may be required in Providence's discretion for the proper operation of the Hospital. Upon termination of this Agreement, Providence will transfer ownership of all of the supplies maintained at the Hospital to KIB. The value of the supplies provided by Providence at the termination of this Agreement shall be equal to the value of the supplies transferred to Providence at the commencement of this Agreement increased by three percent annually. The increase will be prorated based on the number of months for partial years. A partial month will be considered a full month for the calculation. If providence does not transfer sufficient supplies under the formula in the previous sentence, then Providence will pay the balance to KIB at the time of termination. Likewise, if the value of inventory is greater than the calculation KIB will pay the balance to Providence at time of termination. 11. USE: Providence shall use and operate the Premises for a general acute care hospital, extended care facility, home health care provider, retail pharmacy and for any additional health care related purposes as may be appropriate. Providence shall provide, equip and maintain adequate facilities for the continuation of full range general medical and surgery services as economically feasible and warranted by the local physicians' levels of ability and the 0 reasonable needs of the community, as determined in Providence's sole discretion and in accordance with the terms and conditions as set forth in this Agreement. Contingent on Borough approval Providence may convert parts of the Premises into use for other related purposes consistent with KIB's obligation to supply its inhabitants with facilities for the care of sick and injured persons. Providence shall operate and maintain a duly licensed Hospital under the Alaska Statutes and in accordance with the standards prescribed by the Alaska Department of Health and Social Services. 12. QUIET ENJOYMENT: KIB warrants that Providence, upon paying the rent and any other charges as provided for in this Agreement and upon performing all other obligations herein, shall quietly have, hold and enjoy the Premises without hindrance. 13. WARRANTY OF TITLE: KIB hereby warrants that it has good and marketable title to the Premises, subject only to the encumbrances and security interests stated in Exhibit B, attached hereto and incorporated herein. 14. PRIOR AGREEMENTS: KIB warrants that entering into this Agreement does not breach any commitments or responsibilities of KIB under prior agreements, including but not limited to financing agreements, and that KIB shall defend and hold Providence harmless from any claims, liabilities and expenses arising from or in any way related to any prior agreements of KIB except to the extent such agreements are assumed by Providence. 15. BUILDING REGULATIONS: As of April 21, 1997, KIB warrants that there are no existing violations of applicable building, fire and health code regulations of which it is aware. KIB is responsible for all costs of correcting any existing violations of applicable building, fire and health code regulations. Providence shall otherwise keep and maintain the Premises in good condition. 16. ACCREDITATION: Providence will use its best efforts (so long as it is in the best interests of Providence and KIB) to cause the Hospital to become and remain accredited by the Joint Commission on the Accreditation of Health Care Organizations. Providence shall send to the KIB upon any loss of accreditation a written notice that the Hospital is no longer accredited and the reasons for non -accreditation. 17. MEDICARE/MEDICAID PARTICIPATION: Both parties hereby represents and warrants that they are not and at no time have been excluded from participation in any federally funded health care program, including Medicare and Medicaid. Both parties hereby agree to immediately notify the other of any threatened, proposed, or actual exclusion from any federally funded health care program, including Medicare and Medicaid. In the event that either party is excluded from participation in any federally funded health care program during the term of this Agreement, or if at any time after the effective date of this Agreement it is determined that either party is in breach of this Section, this Agreement shall, as of the effective date of such exclusion or breach, automatically terminate. 18. DISPOSAL OF MEDICAL WASTE AND/OR GARBAGE: Providence shall at its expense, properly and timely dispose of all medical waste and/or garbage refuse according to any and all laws governing disposal of the same. 5 19.1 INSURANCE: Providence shall, at its expense, maintain throughout the term of this Agreement the following insurance: A. Insurance against loss or damage by fire and such other risks as may be included in the current KIB hazard insurance policy with extended coverage in an amount not less than the replacement value of the Premises from time to time; B. Insurance against claims for personal injury and property damage occurring on the Premises under public liability and malpractice policies with limits of not less than $1,000,000 per person, $3,000.000 per occurrence and $500,000 for property damage arising out of any single occurrence. Such insurance policies may provide for partial self-insurance under the same terms as the policies for hospitals owned and operated by Providence. KIB shall be named as an additional insured party on each such policy of insurance, and certificates thereof shall be furnished to KIB. 19.2 Providence shall also provide tail coverage for hospital professional liability for the KIB and Lutheran Health Services (LHS) Management System for the period in which LHS operated the Hospital by purchasing coverage with the current carrier which provides coverage for all occurrences since 1987. 19.3 KIB shall, at its expense, maintain throughout the term of this Agreement insurance to cover all conditions, events and liabilities arising out of its actions and activities relating to the Hospital. 20.1 MAINTENANCE AND REPAIRS: Providence shall cause the Hospital to be maintained and repaired in accordance with all state and local codes, and keep the Hospital in a condition at all times reasonably acceptable to KIB, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care and such other maintenance and repair work as may be necessary. KIB shall provide and pay for any major maintenance and repairs. Major maintenance and repairs are defined as repairs greater than $25,000. If a repair is greater than or equal to $25,000, the KIB shall be responsible for the full amount of the repair. Providence shall be responsible for all repairs less than $24,999. If repairs go over the $25,000 limit because maintenance or repairs were not accomplished by Providence in a timely manner, KIB reserves the right to perform repairs or maintenance. KIB will be reimbursed for all costs of such repairs and maintenance by Providence. 20.2 DEPRECIABLE CAPITAL ASSETS: KIB shall provide and pay for depreciable capital assets, mutually agreed to by KIB and Providence, including the cost of building components, land improvements, fixed equipment and building services equipment with useful lives of 10 years or more as defined by the latest edition of the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets (Exhibit Q. Providence shall provide and pay for depreciable capital assets with useful lives of 9 years or less as defined by the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets. The Section 3.2 $150,000 equipment contribution will not be used to purchase these assets. 21. CONDITION ON SURRENDER: Upon termination or expiration of this Agreement, Providence shall surrender the Premises to KIB in substantially the same condition as exists on the date hereof, except for reasonable wear and tear. 22. IMPROVEMENTS AND ALTERATIONS: Providence shall make no alterations in, or additions or improvements to, the permanent structure of the Premises without first obtaining the written consent of KIB. Any additions and improvements made to the permanent structure of the Premises shall remain upon and be surrendered with such Premises as a part thereof at the expiration of the term of this Agreement, by lapse of time or as otherwise provided herein. 23. CONTRIBUTIONS: In the event that contributions are made to Providence for the benefit of the Hospital and/or KIB, Providence may accept such contributions, it being understood, however, that Providence shall comply with the wishes of the donor insofar as they are compatible with the operation of the Hospital and that all property purchased with such contributions shall be and remain a part of the Hospital and shall revert to KIB at the expiration or termination of Lease Agreement. Should the terms or conditions of the contribution indicate that it is intended for Providence and not for the Hospital or KIB, Providence shall accept the contribution on its own behalf and utilize the funds in its sole discretion. For purposes of this paragraph the term `contribution' shall include a gift, bequest, grant or donation of money or property. It is expressly understood that the term "contribution' does not include any money derived by, or from, taxes or other governmental funds or entities. 24. MEDICAL STAFF: Any medical physician or osteopathic physician holding an unlimited license or any appropriately licensed dentist, who is recommended for approval by the Medical Staff and approved by the governing board of Providence shall be permitted privileges to practice in the Hospital. This section does not prohibit Providence from entering into an exclusive contract for the practice of an anesthesiologist or another specialist for the benefit of the community. 25. ADMISSION TO HOSPITAL: All persons in need of hospitalization shall be admitted to the Hospital without regard to race, creed, color, national origin or financial circumstances. 26.1 INDEMNIFICATION: Providence hereby agrees to indemnify and hold KIB harmless from and against any and all claims and demands for injury or death to persons and damage to property occurring on the Premises during the term hereof, and will defend KIB from any claim of liability on account thereof. Providence shall have no obligation for, and KIB shall indemnify and hold Providence harmless from and against, any and all liability with respect to any claims resulting from the negligence of KIB or its agents or employees, or any claims arising out of acts or omissions which occurred prior to the effective date of this Agreement. 26.2 HAZARDOUS SUBSTANCE INDEMNIFICATIION BY PROVIDENCE: Providence shall indemnify, defend, and hold KIB harmless from and against any and all claims, demands, damages, losses, liens, costs and expenses (including attorney's fees and disbursements) which accrue to or are incurred by KIB arising directly or indirectly from or out of or in any way connected with: (A) any activities within the Hospital or on the Premises during the term of this Agreement which directly or indirectly resulted in the Premises being contaminated with Hazardous Substances, (B) the discovery of Hazardous Substances on the Premises whose presence was caused during the term of this Agreement, and (C) the clean-up of Hazardous Substances on the Premises whose presence was caused during the term of this Agreement. 7 26.3 HAZARDOUS SUBSTANCE INDEMNIFICATION BY KIB: KIB shall indemnify, defend, and hold Providence harmless from and against any and all claims, demands, damages, losses, liens, costs, and expenses (including attorney's fees and disbursements) which accrue to or are incurred by Providence arising directly or indirectly from or out of or in any way connected with: (A) any activities within the Hospital or on the Premises prior to the term of this Agreement which directly or indirectly resulted in the Hospital and/or the Premises being contaminated with Hazardous Substances, (B) the discovery of Hazardous Substances on the Premises whose presence was caused prior to the term of this Agreement, and (C) the clean-up of Hazardous Substances on the Premises whose presence was caused prior to the term of this Agreement. 27.1 ACCESS TO RECORDS: KIB and Providence further agree that Providence shall retain and make available upon request for a period of four (4) years after the furnishing of such services (operation of the Hospital) as described in this Agreement, the books, documents and records which are necessary to certify the nature and extent of the costs thereof when requested by the Secretary of Health and Human Services or the Comptroller General, or any of their duly authorized representatives. If Providence carries out any duties of this Agreement through a subcontract with a related organization, valued at $10,000 or more over a 12 -month period, the Subcontract shall also provide that the Secretary of Health and Human Services or the Comptroller General may have access to the subcontract and the subcontractor's books, documents and records necessary to verify the costs of the subcontract for a period of four (4) years after the services have been furnished. This provision relating to the above retention and production of documents is included because of possible application of Section 1861 (v)(1)(l) of the Social Security Act to this Agreement; if this Section should be found to be inapplicable, then this clause shall be deemed to be inoperative and without force and effect. 27.2 PERSONNEL RECORDS: Should this Agreement terminate for any reason, Providence agrees to provide to KIB all personnel records for those employees who are to be re- employed by KIB who consent to the release of such records to KIB. 27.3. OPERATIONAL RECORDS: Except as otherwise provided herein, Providence agrees to provide KIB with the books, documents and records, including medical records, in regard to the operation of the Hospital, in accordance with all federal, state and local laws, rules and regulations including, but not limited to, privacy laws. 27.4 CONFIDENTIAL INFORMATION: Providence shall comply with all laws, regulations, directives or requirements in any form related to operating and managing hospitals and long-term care facilities, including, but not limited to the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), and regulations adopted under HIPAA. The KIB shall not have access to Protected Health Information as defined by HIPAA. KIB has read 45 C.F.R. 164.504(e), understands Providence's position is that 45 C.F.R. 164.504(e) applies to this Agreement, and that Providence therefore has the following obligations: Providence agrees to hold all individually identifiable patient health information ("Protected Health Information") that may be shared, transferred, transmitted, or otherwise obtained pursuant to this Agreement strictly confidential, and provide all reasonable protections to prevent the unauthorized use or disclosure of such information, including, but not limited to the protection afforded by applicable federal, state and local laws and/or regulations regarding the security and the confidentiality of patient health care information. Providence further agrees to make every reasonable effort to comply with any regulations, standards, or rules promulgated pursuant to the authority of the HIPAA, including those provisions listed below, as soon as possible, but in no event later than April 14, 2003. Providence may use and disclose Protected Health Information when necessary for Providence's proper management and administration (if such use or disclosure is necessary), or to carry out Providence's specific legal responsibilities pursuant to this Agreement. Specifically, Providence agrees as follows: (1) to maintain safeguards as necessary to ensure that the Protected Health Information is not used or disclosed except as provided herein; (2) to mitigate, if possible, any harmful effect known to Providence of a use or disclosure of Protected Health Information by Providence; (3) to ensure that any subcontractors or agents to whom it provides Protected Health Information will agree to the same restrictions and conditions that apply with respect to such information; (4) to make available respective internal practices, books and records relating to the use and disclosure of Protected Health Information to the Department of Health and Human Services or its agents; (5) to incorporate any amendments or corrections to Protected Health Information when notified that the information is inaccurate or incomplete; (6) to return or destroy all Protected Health Information that Providence still maintains in any form and not to retain any such Protected Health Information in any form upon termination or expiration of this Agreement, if feasible or, if not feasible, Providence agrees to limit any uses of Protected Health Information after this Agreement's termination or expiration to those specific uses or disclosures that make it necessary for Providence to retain the information; (7) to ensure applicable policies are in place for providing access to Protected Health Information to the subject of that information; (8) if requested by the KIB, report to KIB any use or disclosure of Protected Health Information which is not provided for in the Agreement; and (9) to make Protected Health Information and an accounting of disclosures available to the individual who is the subject of the information or to KIB, to the extent required by HIPAA. Breach of this section shall be considered material. 27.5 STORAGE SPACE: Providence shall provide at no cost to KIB sufficient storage space for KIB to store its existing books and records relating to the Hospital. 28.1 HOSPITAL ADMINISTRATOR: All administrators for Hospital shall be selected and hired with KIB consultation. Providence shall conduct annual evaluations regarding the Administrator in consultation with KIB. The Administrator shall attend meetings of the Kodiak Island Service Area Community Board and KIB, representing Providence and reporting on the condition and affairs of the Hospital. Providence agrees to provide reasonable support and assistance to the Administrator to enable the Administrator to administer the business and affairs of the Hospital in an efficient and business -like manner consistent with the needs of the community. 28.2 TERMINATION OF ADMINISTRATOR: Notwithstanding any other terms and conditions of this Agreement to the contrary, in the event this Agreement is terminated prior to the expiration of its full term, then Providence shall provide an Administrator for the Hospital on a contract basis for ninety days following the termination if requested by KIB. X 29. KODIAK ISLAND HEALTH CARE FOUNDATION OFFICE SPACE: Providence will work cooperatively with Kodiak Island Health Care Foundation to provide financial assistance at mutually agreed upon levels, subject to Providence's annual budgetary limitations, for the committed development of community healthcare. 30. GOVERNANCE: The overall management and control of the Hospital will rest with the Providence Alaska Regional Board. It is anticipated that two KIB residents will be eligible to participate as voting members on this Board. One member shall be the Chief of Staff and one member shall be the Board Chair of the Kodiak Island Service Area Community Board. 31. KODIAK ISLAND SERVICE AREA COMMUNITY BOARD: An Advisory Board meeting the requirements of 7AAC 13.030(a) will be appointed by Providence to provide input to the hospital staff, the medical staff, and Providence Alaska Regional Board about the concerns of the community regarding the operation of the Hospital and to undertake the responsibilities set out at 7 AAC 13.030(b) and (c). One KIB Assembly member shall be appointed by Providence as a full voting member of the Kodiak Island Service Area Community Board, and Providence shall give KIB the opportunity for review and comment before appointments to the Board are made. Providence shall keep the Kodiak Island Service Area Community Board updated with respect to matters of Hospital policy and the relationship of the Hospital to the community and surrounding areas which it serves. 32. RIGHT TO ENTER PREMISES: Upon reasonable notice, Providence shall permit KIB, its agents and employees to have access to and to enter the Premises at all reasonable and necessary times to inspect the Premises. 33. DEFAULT REMEDIES: `Event of Default' means any one or more of the following events, whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body: A. Failure to pay rent required by Section 6 or 7.1 when such rent becomes due and payable, and continuance of such failure to pay for a period of ten (10) days; or B. Default in the performance, or breach of any other covenant or warranty by Providence under this Agreement, with the exception of any obligations imposed under Exhibit B, and continuance of such default or breach for a period of thirty (30) days after there has been given, by registered or certified mail, to Providence by KIB a written notice specifying such default or breach and requiring it to be remedied stating that such notice is a notice of default hereunder; or C. The entry of a decree or order by a court having jurisdiction in the premises adjudging Providence as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of Providence under the Federal Bankruptcy Act or any other applicable Federal or State law, or appointing a receiver, liquidator, assignee, trustee (or other similar official) of Providence or of any substantial part to its property, or ordering the winding up or liquidation of its affairs; or 10 D. The institution by Providence of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the Federal or State law, or the consent by it to the filing of any such assignee, trustee (or other similar official) of Providence or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by Providence in furtherance of any such action. 34. CONTINUING DEFAULT: If an Event of Default by Providence occurs and is continuing, KIB may: A. At its option, declare all installments of rent payable to be immediately due and payable by Providence; B. Re-enter and take possession of the Hospital without termination of this Agreement, and use its best efforts to sublease the Hospital for the account of Providence, holding Providence liable for the difference between the rent and other amounts payable by the sublessee and the rents and other amounts payable by Providence hereunder; C. Terminate this agreement, excluding Providence from possession of the Hospital and use its best efforts to lease the Hospital, or to another for the account of Providence, holding Providence liable for the difference between the rentals received and the rentals which would have been receivable hereunder; D. Terminate this Agreement, exclude Providence from possession of the Hospital and either operate the Hospital or contract with a responsible operator to operate the Hospital; E. With respect to any personal property, exercise any remedies available to a secured party under the Uniform Commercial Code; and/or F. Take whatever action at law or in equity may appear necessary or appropriate to collect the rent then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of Providence under this Agreement. 35. TERMINATION: At any time either KIB or Providence may terminate this Agreement by one year's written notice to the other party. This Agreement shall terminate one year from the date of such notice without further action by either party and shall be of no further force and effect other than to perform any obligation incurred but not paid prior to the termination. However, if Providence is required to perform any duty or provide any service under the terms of this agreement that is in conflict with the philosophy, mission and values of Providence Health System, pursuant to Exhibit A, Providence may terminate this Agreement upon 90 days prior written notice to KIB. Upon such termination, Providence shall surrender possession of the Hospital to KIB. On the effective date of such termination KIB shall have the option to purchase any such accounts receivable, inventory, or supplies at a value agreed to by both parties. KIB shall have option to purchase equipment pursuant to Section 3.3 of this Agreement. Providence agrees to co-operate in such a way as to allow KIB to show the Hospital to a prospective tenant or accommodate the active transition needs of KIB for the actual termination. KIB agrees to cooperate in such a way as to accommodate Providence transition needs and the removal of Providence's assets. 11 36. TRANSFERS OF LICENSES AND PERMITS: The parties will cooperate and jointly prepare and file all applications for transfer of licenses and permits incident to operation of the Hospital, including but not limited to transfer of permits for and inventories of alcohol, narcotics and dangerous drugs. 37. NOTICES: All notices, demands, or other writings in this Agreement provided to be given, made or sent, or which may be given, made or sent, by either party hereto to the other, shall be deemed to have been given, made or sent when made in writing and deposited in the United States Mail, Registered or Certified Mail, postage prepaid, and addressed as follows: KIB: Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Providence: Regional Vice President and Chief Executive Providence Health System in Alaska 3200 Providence Drive P.O. Box 196604 Anchorage, Alaska 99519-96604 38. The address to which any notice, demand or other writing may be given or made or sent to any party as above provided may be changed by written notice given by such party as above provided. 39. ASSIGNMENT AND SUBLEASE: Providence may assign this Agreement and may sublease the Hospital, in whole or in part, only with the prior consent of the KIB, but subject to each of the following conditions: A. At the time of the making of any such assignment or sublease, there shall be no event of Default under this Agreement; B. Any assignee will continue to operate the Hospital as a hospital, in accordance with this Agreement; C. Any assignee of this Agreement shall expressly assume and agree to perform and comply with all the covenants and provisions of this Agreement on the part of Providence and shall be jointly and severally liable with Providence for any default in respect to any such covenant or provision; D. No assignment or sublease shall relieve Providence from primary liability for all rents and other payments due and for the performance of all other obligations required under this Agreement; E. In the case of an assignment of the Agreement or a sublease of all or substantially all of the Hospital, the assignee or sublessee shall agree to pay all rent payable by it directly to KIB, less a pro -rata share of reasonable maintenance, repair, or administrative handling costs; 12 F. KIB shall be provided promptly a duplicate original of the instrument or instruments containing such assignment or sublease. Providence may not mortgage or grant a security interest in this Agreement or leasehold interest. Approval of all subleases assigned by Providence shall be concurrent with the terms of this Agreement. Nothing herein will prevent Providence from leasing space to physicians or other health care providers. No assignment for the benefit of creditors or by operation of law shall be effective to transfer any rights to the Assignee. 40. DAMAGE OR DESTRUCTION: When all or any part of the Hospital is destroyed or damaged, the KIB may: A. Proceed promptly to replace, repair, rebuild and restore the Hospital to substantially the same condition as existed before the taking or event causing the damage or destruction. B. All buildings, improvements and equipment acquired in the repair, rebuilding, replacement or restoration of the Hospital, together with any interests in land conveyed to the KIB as necessary for such restoration, shall become a part of the Hospital and available for use and occupancy by Providence without the payment of any rents other than those provided in Section 6 and 7.1. C. Rent shall be abated in the event of any destruction of damage to, or taking all or any part of the Hospital in proportion to the square footage which is unusable by Providence. D. If fifty percent (50%) or more of the Premises are rendered untenantable by the aforementioned causes, KIB shall have the right to be exercised by notice in writing, from and after said occurrence, to elect not to reconstruct the Premises, and in such event this Agreement and the tenancy hereby created shall cease as of the date of such occurrence, the rent to be adjusted as of such date. 41. CONDEMNATION: If the Premises, or such part thereof as in the reasonable opinion of Providence renders the remainder unusable for its purpose shall be acquired by eminent domain, then this Agreement shall cease and terminate as of the date that possession is taken in such proceeding. Such termination, however, shall not be deemed to deprive Providence of any of its rights to receive compensation by reason of such taking. 42. WAIVER OF SUBROGATION: KIB and Providence, both on their own behalf and on behalf of all others claiming through or under either of them, hereby mutually waive and release all claims, liabilities and causes of action against the other and the agents, servants, employees and invitees of each other, for all loss, damage to or destruction of the Premises or any portion thereof, as well as the fixtures, equipment, supplies and other property of either party located in, upon or about the Premises resulting from fire or other perils covered by standard fire and extended coverage insurance, whether caused by the negligence of any of said persons or entities or otherwise, except to the extent such waiver would violate or otherwise abrogate the terms of such insurance coverage. 13 43. MISCELLANEOUS: All covenants and agreements in this Agreement by KIB or Providence shall bind their successors and assigns, whether so expressed or not. In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. None of the terms, conditions, covenants or provisions of this Agreement can be waived by either party except by appropriate written instrument. The waiver by either party or any breach of any term, condition, covenant or provision herein contained shall not be deemed a waiver of the same of any term, condition, covenant, or provision herein contained or of any subsequent breach of the same or any other term, condition, covenant or provision herein. This Agreement shall be construed in accordance with the laws of the State of Alaska. Nothing in this Agreement, express or implied, shall give to any person, other than the parties hereto, and their successors and assigns, any benefit or other legal or equitable right, remedy or claim under this Agreement. The parties agree the effective date of this Amendment is January 1, 2005. IN WITNESS WHEREOF the parties have respectively executed this Agreement the day and year written below. PROVIIDENCE HEALTH SYSTEM -WASHINGTON d/b/a Prov' Health System in Alaska By: Its: c�� Date: /�/2i/zoos ATTEST: STATE OF ALASKA ) )ss.: THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the ,2qls_ day of A'oY�'���2zvtY� before me, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Al Parrish, to me known to be the Regional Vice President and Chief Executive, Providence Health System Alaska, and known to me to be the person who executed the above and foregoing instrument on behalf of Providence Health System — Washington, and who acknowledged to me that he executed the same as a free act and deed of the said entity for the uses and purposes therein stated and pursuant to the authority granted to him by the Borough Assembly. WITNESS my hand and notarial seal the day and year first above in this Certificate written. A NMI- ................. N. q >•OS� F^NfOp�F���• NOTARY�� 14 Itary Public in and 4 y commission expires KODIAK ISLAND BOROUGH By: Its: f Ka Date: ATTEST: STATE OF ALASKA ) )ss.: THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the 6364A day of lbw- )6657 before me, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Rick Gifford, to me known to be the Manager of the KODIAK ISLAND BOROUGH, and known to me to be the person who executed the above and foregoing instrument on behalf of the municipality, and who acknowledged to me that he executed the same as a free act and deed of the said entity for the uses and purposes therein stated and pursuant to the authority granted to him by the Borough Assembly. WITNESS my hand and notarial seal the day and year first above in this Certificate written. Notary Public in and r Alaska OJ A JA V� My commission expires: <(p 07 NOTAR y 15 EXHIBIT A PROVIDENCE HEALTH SYSTEM PHILOSOPHY MISSION AND VALUES Letter from Archbishop of Anchorage Francis T. Hurley Off Ke of the ArC*Ibhop aWhalocese of anchonge res coebma suet •arwtoescs rpa 9"01-240 Mr. Duuyt#%x Bruce Administrator Providence Alaska Medical center 3200 Providen<# Drive P.O. box 196604 Anchoriige, AK 49519-6604 September 9, 1996 Dear Mr. brute, Thw c:Iltiative of Providence Alaska Mrtdical Center to enter into an .operating agreement with small Alas Kan rural communities for the purpube of providing better health care for more people is one that I applaud. It Without qutstiun is fully consistent with the commitment of the Catholki Church and Ire Sisters of Providence to Meet the human as well as the - spiritual nt;tds of people. From my own observation of with the health care available In the smatter communities of Southcentral Alaska, I know how much the people strongly desire that more medical services be more readily available to them locally. local communities can not meet the escalating costs of medical equipment and care. The people are often prevented from traveling to medical centyrs in Anchorage because of distance and weather. In addition to that, It is the desire of patients to be close to their famitica, friends and ministers at the time of Illness. The operating agretmont being developed by the City of Kodiak and by Providence Alaska Medical Center will alleviate these ditricultles. The pian is. if you will allow a play on words, providential. Forging operating agreements presents some difficulties in communities where there are many varied and at times confikting attitudes and convictions about what medical practices are morally permissible. The uldelines utilized for Catholic health care systems are contained In the thleal and Religious Directives for Health Services of the Catholic 615twps of the United States. * '7F a 'trity o a "has" standards for Kodiak Hospital`. Vou hove indicated that the City of Kodiak deems it necessary that their long standing practice of elective sterilization be continued. As you know this practice is not within the Directives. You ask if it would be within the parameters of the Catholic teaching for providence Medical Center to tolerate the continuance of that practice within the rity of Kodiak as part of the agreement. 16 SOPttmber 9, 1996 Page i I take note of an important factor. Kodiak Hospital renins a community hospital. The operating lea" does not changt that. The mutually accepted terms of the lease Identify the principles and practices that will alfa* both Providence and the City of Kodiak to be faithful to their c=mltments. ,n this cortex: I make an observation about mora! decisions. Moral decisions are generally not Trade by the appliCation of only one principle, Rather. several principles must be recognized and brought into harmony. In this instance the principle of t Into play with our principles relative tv life and respn may be brought body . Within the principle of c Peet for the human Arid circumstances it ;s cooperation 'and under certain conditions p"misslble that one may cooperate materially, In an action of another that is contrary to one's convictions. ;rl my ludymertt the principle of material cooperation does apply in the situation that prevails in Kodiak. Kodiak Hospital remains a community "0%Plt2I- The operating agre*me,tt with Providence Alaska Medical Cantor does not transform it Into a Catholic Hospital. Rather Kodiak Hospital remains a rr-Mmunity ho4;nital of. the City of Kodiak. The mutually - a=-ept*d ttrins of agreement define the practiCes that will be permitted. The material cooperation fne 0*61i7ation In no way Implies approval Of the oraedure by Providence. L hops that the arrangement with the City of Kodiak comes tO coanpletlon. I know the community well. 1 was personally involved in work! agreement with the a6ninistrators of the City for the "tabliSh eM n= of n Brother Frencis Shelter - Kodiak. Cad bless. '-sem Sincerely In Christ. a qe4 •Francis T. Hurley Archbishop of Anchorage 17 EXHIBIT B ENCUMBRANCES AND SECURITY INTERESTS There are no encumbrances and security interests. EXHIBIT C American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets Revised 2004 Edition (See Attached) 19 EXHIBIT D Estimated Book Value of KIB Contributions KIB Contributions to Providence Estimation of Book Value at Expiration/Termination of Lease Book Value at the End of Five Years Year 1 Year 2 Year 3 Year 4 Year 5 Total Yearly Contribution $150,000 $150,000 $150,000 $150,000 $150,000 $750,000 Esimated Depreciation Year 1 $30,000 $30,000 Year 2 $30,000 $30,000 $60,000 Year 3 $30,000 $30,000 $30,000 $90,000 Year 4 $30,000 $30,000 $30,000 $30,000 $120,000 Year 5 $30,000 $30,000 $30,000 $30,000 $30,000 $150,000 Year 6 Year 7 Year 8 Year 9 Year 10 Book Value $0 $30,000 $60,000 $90,000 $120,000 $300,000 Assumptions: Useful Life of Equipment 5 is I naLea s of Depre use vital A.'q-qp-f :IIIr: g ,...,.��' a�tv `_ r' Introduced by Manager Word Requested by Manager Gifford Drafted by. Borough Attorney Introduced: February 15, 2007 Adopted: KODIAK ISLAND BOROUGH +� RESOLUTION NO. FY2007-23 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AUTHORIZING A RENEWAL OF THE LEASE WITH PROVIDENCE HEALTH SYSTEM ALASKA FOR THE KODIAK ISLAND HOSPITAL AND CARE CENTER WHEREAS, by means of an Amended and Restated Lease Agreement ("the Lease") executed in November 2005, the Kodiak Island Borough leased the premises known as the Kodiak Island Hospital and Care Center to Providence Health System Alaska ("Providence"); and WHEREAS, the terms of the Lease included a provision bywhich Providence could extend its term for ten years provided it gave notice of its desire to do so 180 days prior to the expiration s the current lease term; and WHEREAS, the current lease term expires April 20, 2007, and on October 4, 2006 Providence gave notice of its desire to extend the lease term; and WHEREAS, the terms and conditions of any extended lease term are to be the same as those of the Lease unless the parties mutuallyagree to change them; and WHEREAS, there is a mutual agreement between the parties that any extended lease term should include an amendment reducing Kodiak Island Borough's annual equipment contribution from $150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and thereafter; and WHEREAS, it is in the best interest of the Kodiak Island Borough to extend the lease and to continue with the existing terms and conditions but with an amendment reducing Kodiak Island Borough's annual equipment contribution from $150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and thereafter; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that Section 1: The Manager is authorized to execute an agreement with Providence Health System Alaska to extend for another ten-year term, on the same basic terms (but with an amendment reducing Kodiak Island Borough's annual equipment contribution from ,$150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and 'thereafter), the Amended and Restated Lease Agreement for the premises known as the K-Pdiak Island Hospital and Care Center. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTEENTH DAY OF FEBRUARY 2007 ATT ST Nova M. Javier, CMC, -B-oro Clerk Kodiak Island Borough, Alaska KODIAK ISLAND BORO GH Jer a M. Selby, Borough r Resolution No.FY2007- 23 Page 1 of 1 RENEWAL OF LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the Kodiak Island Borough a municipal corporation of the State of Alaska ("KIB") and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non- profit corporation ("Providence"). The parties confirm: RECITALS a. They entered into an amended and restated lease agreement which commenced on April 21, 1997 and is to end on April 20, 2007, by which Providence leased the premises described as: Lot Two -A (2-A) Hospital Subdivision according to Plat 95-03, located in the Kodiak Recording District, Third Judicial District, State of Alaska. b. They desire to renew the term of that lease agreement. C. They have agreed that there will be no increase in the monthly lease payments and that the lease agreement shall be modified to reduce Kodiak Island Borough's annual equipment contribution from $150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and thereafter; and In consideration of the mutual covenants contained in this agreement, the parties agree as follows: (1) The execution of this agreement shall constitute a renewal of the basic lease agreement between the parties (excluding, however, the right to renew in paragraph 4.2) with no increase in the monthly lease payments and shall extend the termination date to April 20, 2017. (2) Paragraphs 3.2 and 20.2 of the lease agreement between the parties are amended as follows: 3.2 NEW AND REPLACEMENT EQUIPMENT: The KIB agrees to budget a minimum of $108,000 each year effective for the KIB fiscal year beginning July 1, 2007, for purchase or lease purchase of new and replacement Equipment for use in the Hospital for the depreciable life of the equipment unless otherwise approved by KIB. This contribution will be paid to Providence on or before January 31 of each calendar year of the Agreement. Providence will place these funds in a Funded Depreciation account for the sole purpose of purchasing or lease purchasing new and Renewal of Lease Agreement — p. 1 of 4 replacement equipment for the Hospital. New and replacement equipment will remain on the balance sheet of Providence for the duration of the Lease Agreement. Providence, at the termination or expiration of this Agreement, including Agreement extensions, will transfer assets in an amount equal to the estimated book value of equipment (Exhibit D) purchased with KIB contributions based upon an average useful life of 5 years. 20.2 DEPRECIABLE CAPITAL ASSETS: KIB shall provide and pay for depreciable capital assets, mutually agreed to by KIB and Providence, including the cost of building components, land improvements, fixed equipment and building services equipment with useful lives of 10 years or more as defined by the latest edition of the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets (Exhibit C). Providence shall provide and pay for depreciable capital assets with useful lives of 9 years or less as defined by the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets. The Section 3.2 $108,000 equipment contribution will not be used to purchase these assets. (3) Exhibit D to the lease agreement is amended consistent with the aforementioned amendments to Paragraphs 3.2 and 20.2. A copy of the amended Exhibit D is attached hereto. (4) Nothing in this agreement shall operate to discharge or release Providence or its assigns from the duty and obligation to perform each of the terms and conditions of the original lease. In witness, each party has caused it to be executed on the date indicated below. Kodiak Island Borough By: ick Gifford, It anager ATTEST: Nova Javier, Boro gh Clerk Renewal of Lease Agreement — p. 2 of 4 Providence Health System - Washington d/b/a Providence Health System in Alaska By: E. . P rrish, Its Regional Vice President and Chief Executive STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) On this day personally appeared before me Rick Gifford, to me known to be the person who signed as the Manager of the Kodiak Island Borough, an Alaska municipal corporation and acknowledged that he was duly authorized to execute said instrument as the free and voluntary act and deed of said corporation, for the uses and purposes qZ ; ••' 1 my hand and official seal this day of , 2007. NQTAgy O10 • � w % , r •�.pV6L�G,� •� OTAR BLIC for a Stat of aska •••••••'��0-p�•`� My commission expir s: 16 SWW4Ft0RSKA ) ) ss. THIRD JUDICIAL DISTRICT ) On this day personally appeared before me E. A. Parrish, to me known to be the Regional Vice President and Chief Executive of Providence Health System - Washington d/b/a Providence Health System in Alaska the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute said instrument on behalf of said corporation. GIVEN official •I , l� NorAq�, : �p s 3 ARY :9� g`��.' OF My cp to 'p Renewal of Leas�e1flkQt4L p. 3 of 4 day of IC for the Statp of laska expires: 2007. EXHIBIT D to Renewal of Lease Agreement Estimated Book Value of KIB Contributions KIB Contributions to Providence Estimation of Book Value at Expiration/Termination of Lease Book Value at the End of Five Years Year 1 Year 2 Year 3 Year 4 Year 5 Total Yearly Contribution $108,000 $108,000 $108,000 $108,000 $108,000 $540,000 Esimated Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Book Value Assumptions: Useful Life of Equipment $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $43,200 $21,600 $64,800 $21,600 $21,600 $86,400 $21,600 $21,600 $21,600 $108,000 $0 $21,600 $43,200 $64,800 $86,400 $216,000 k, Renewal of Lease Agreement - p. 4 of 4 Parrish, Al From: Humphrey Barnett, Susan Sent: Thursday, February 15, 2007 5:33 PM To: Parrish, Al Subject: FW: FW: Lease P] H Renewal Resolution draft 3 agreement 3 (2).doc (2).doc FYI. Susan -----Original Message ----- From: Rush, Donald Sent: Thursday, February 15, 2007 2:39 PM To: Humphrey Barnett, Susan; Gilbertson, Joel Subject: FW: FW: Lease Legal approval obtained. Being voted on tonight at 730. Don -----Original Message ----- From: Mays, Stephanie Sent: Thursday, February 15, 2007 12:28 PM To: Rush, Donald Subject: RE: FW: Lease Hi Don, It's been a while since I have touched this document. Having said that, the renewal of the Lease Agreement, looks fine, from a legal perspective, as does the Resolution. Please ensure that from a business perspective, it meets your expectations. As well, the Resolution looks great. But again, if you have specific business concerns, do let me know. If you have additional questions, please let me know. L. Stephanie Mays Office of Legal Affairs Providence Health & Services System Office 506 Second Avenue Suite 1200 Seattle, WA 98104-2329 206.464.3986 - phone 206.464.5034 - fax stephanie.mays@providence.org Assistant: Terry Shahrivar 206.464.4733 -----Original Message ----- From: Rush, Donald Sent: Thursday, February 15, 2007 12:46 PM To: Mays, Stephanie Subject: FW: FW: Lease Importance: High Hi Stephanie, 1 Your review of the attached is urgent. I will call. The KIB votes tonight. 19:=61 -----Original Message ----- From: Rick Gifford [mailto:rgifford@kib.co.kodiak.ak.us] Sent: Thursday, February 15, 2007 11:42 AM To: Rush, Donald Subject: FW: FW: Lease Importance: High Hi Don, Please review the attached revisions completed by the Borough Attorney this morning. I need to know fairly quickly if this will work, if we want the Assembly to act on it tonight. Please let me know as soon as possible. Thanks. Rick Rick Gifford Borough Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Phone: 907-486-9301 Fax: 907-486-9374 Email: rgifford@kib.co.kodiak.ak.us -----Original Message ----- From: Matthew St John [mailto:Matthew@JESMKOD.COM] Sent: Thursday, February 15, 2007 11:41 AM To: Linda Brown; Rick Gifford Cc: Alan Schmitt Subject: Re: FW: Lease Rick, Attached for your review are copies of a resolution and agreement incorporating a reduction in the equipment budget in lieu of an increase in lease payments, per your request. Please give us a call if you have any questions or concerns. Alan can be reached in Anchorage at 907-222-1691 after about 2:30. I will be in the office in Kodiak. Alan noted that you should anticipate any possible ramifications that a reduction in the equipment budget might have on spending for equipment under the Fern Fuller Fund, and that you might check in with Karl about the same. Thanks, Matt St. John This electronic message transmission contains information belonging to Jamin Schmitt St. John that is solely for the recipient named above and which may be confidential or privileged. Jamin Schmitt St. John EXPRESSLY PRESERVES AND ASSERTS ALL PRIVILEGES AND IMMUNITIES APPLICABLE TO THIS TRANSMISSION. If you are not the intended recipient, be aware that any disclosure, copying, distribution, or use of the contents of this communication is STRICTLY PROHIBITED. If you have received this electronic transmission in error, please notify me by telephone (907-486-6024) or by electronic mail (matthew@jesmkod.com) immediately. Thank you. >>> "Rick Gifford" <rgifford@kib.co.kodiak.ak.us> 02/14/07 09:18AM >>> Hi Linda, N Here are the changes that I would like to have reflected in the resolution and the agreement. If you have any questions, please contact me. Thanks. Rick Rick Gifford Borough Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Phone: 907-486-9301 Fax: 907-486-9374 Email: rgifford@kib.co.kodiak.ak.us <mailto:rgifford@kib.co.kodiak.ak.us> From: Rush, Donald [mailto:Donald.Rush@providence.org] Sent: Tuesday, February 13, 2007 4:40 PM To: Rick Gifford Subject: Lease Hi Rick, Well, Al Parrish is adamant about the need for us to reduce the contribution by 42K instead of increasing the lease payments by 42K. He just doesn't want to reflect a decreased net income of 420K over the life of the lease. He thinks any reduction is going to impact us because we our margins are so tight every year. I have attached a modified Exhibit D, reflecting the decrease. I am also attaching the amended Sections 3.2 and 20.2 that reflects the change. Your attorney could quickly check for other areas as well but I think this covers it. Don Rush PKIMC CEO 1915 East Rezanof Drive 3 1Todiak, AK 99615 (P) 907-486-9596 (F) 907-486-2336 DISCLAIMER: This message is intended for the sole use of the addressee, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the addressee you are hereby notified that you may not use, copy, disclose, or distribute to anyone the message or any information contained in the message. If you have received this message in error, please immediately advise the sender by reply email and delete this message. Introduced by. Manager Gifford Requested by. Manager Gifford Drafted by. Borough Attorney Introduced: 02/15/2007 Adopted: 02/15/2007 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2007-24 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AUTHORIZING A RENEWAL OF THE LEASE WITH PROVIDENCE HEALTH SYSTEM ALASKA FOR THE KODIAK ISLAND MENTAL HEALTH CENTER NOW KNOWN AS PROVIDENCE KODIAK ISLAND COUNSELING CENTER WHEREAS, by means of a Lease Agreement ("the Lease") executed in November 1997 the Kodiak Island Borough leased the premises known as the Kodiak Island Mental Health Center to Providence Health System Alaska ("Providence"); and WHEREAS, the terms of the Lease included a provision by which Providence could extend its term for ten years provided it gave notice of its desire to do so 180 days prior to the expiration of the current lease term; and WHEREAS, the current lease term expires April 20, 2007 and on October 12, 2006 Providence gave notice of its desire to extend the lease term; and WHEREAS, the terms and conditions of any extended lease term are to be the same as those of the Lease unless the parties mutuallyagree to change them; and WHEREAS, the monthly lease payments for any extended term are to be established by negotiation; and WHEREAS, it is in the best interest of the Kodiak Island Borough to extend the lease and to continue with the existing terms and conditions and the amount of monthly lease payments for the extended term (excluding, however, the right to renew in paragraph 4.2); NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that Section 1: The Manager is authorized to execute an agreement with Providence Health System Alaska to extend for another ten-year term, on the same terms (excluding, however, the right to renew in paragraph 4.2), the Lease Agreement for the premises known as the Kodiak Island Mental Health Center. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTEENTH DAY OF FEBRUARY 2007 KODIAK ISLAND BORO GH Jerdrhe M. Selby, Borough Mayo A�T `/1 /I , .` Nola M. Javier, CMC, Borough Clerk Kodiak Island Borough, Alaska Resolution No. FY2007-24 Page 1 of 1 Item No. 12.A Kodiak Island Borough AGENDA STATEMENT Regular Meeting of October 20, 2005 Contract No. 97-07-B Amending Contract No. 97-07 Agreement Between the KIB, & Sisters of Providence in Washington d/b/a Providence Health System in Alaska for Lease of the Kodiak Island Hospital & Care Center. The attached lease is an amendment and restatement of the original Contract 1997-66 with Providence Health System in Alaska to lease and operate Kodiak Island Hospital. The term of the lease is from April 21, 1997 to April 20, 2007 with an option to extend for ten years. In 1997 Providence leased the Hospital with a $2,000,000 down payment and then lease payments of $720,000 per year for the next ten years. If Providence did not lease the Hospital for the full ten years then the proportional amount of the $2,000,000 down payment would be returned to Providence Health System in Alaska. The reason for the proposed amendments is to clear up ambiguities in the original lease that have been realized from several years of operating the hospital; clean up and eliminate unnecessary provisions that are no longer pertinent, can be integrated with the amendments and recognize new confidentiality requirements; maximize cost reimbursement from Medicare/Medicaid through depreciation of equipment; and recognize the relationship with Kodiak Community Health Center ("KCHC") and its operations within the hospital campus. The amended lease recognizes the operation of KCHC. Currently KCHC leases its space from Providence. The amended Providence lease proposes that Kodiak Island Borough ("KIB") will negotiate a lease directly with KCHC and the lease payments with Providence will be adjusted accordingly to take into account the lease with KCHC. Currently, KIB purchases $150,000 of equipment for the hospital every year. Since KIB purchases the equipment, the equipment is on the Borough's books. The amended lease will provide that KIB give Providence $150,000 each year for Providence to purchase equipment. The equipment will then be on Providence's books and Providence will be able to recapture the depreciation in their Medicare/Medicaid rates. In a recent presentation at a KIB Work Session, Hospital officials estimated an increase value to the community over 10 years of approximately $600,000 generated from Medicare and Medicaid reimbursement. The amended lease deletes the profit sharing language. The amended lease allows Providence to retain any profits for use by the hospital for equipment and operations. Providence will spend 50% of each year's profits, up to $200,000 for equipment and retain the profits for the benefit of the Kodiak Island Hospital. Under the current profit sharing provision, Hospital officials indicate the need to have operating income at twice the net operating margin in order to maintain sufficient working capital to operate and to fund cash reserves to replace equipment and expand services to the community. In addition, Hospital officials indicate that dividing the profits with the KIB actually is increasing costs to the community, as prices have to be significantly increased to operate at an acceptable margin. The following table summarizes the finanriai amonrimonfc +„ +tie ^^, # -4 -- --- - -' -- ....�. �..... Current Contract ........ ..w...v..w w u w trvl lll4M%A. Proposed Contract KIB purchased $150,000 in equipment each KIB will give Providence $150,000 to purchase year and kept title. new equipment each year. KIB retained half of net income (including Providence will keep all income. depreciation on capital assets) less capital Providence will spend 50%, up to $200,000, of expenditures. If an asset is purchased and the previous year's income on equipment to be then depreciated it is a capital expenditure. used at the Kodiak Hospital. Providence had to leave a like amount of KIB will give all operating supplies to operating supplies when they left the Providence. Hospital. $277,000 Lease payments of $720,000 per year. Lease payments of $720,000 per year. Providence provided an initial down payment of $2,000,000 for construction of new facility. FISCAL NOTES: ACCOUNT NO.: ® N/A Expenditure Amount Required: Budgeted: APPROVAL FOR AGENDA: The motion before the Assembly is to approve Contract No. 97-07B with Providence Health System - Washington d/b/a Providence Health System in Alaska. RENEWAL OF LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the Kodiak Island Borough a municipal corporation of the State of Alaska ("KIB") and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non- profit corporation ("Providence"). RECITALS The parties confirm: a. They entered into a lease agreement which commenced on January 2, 1998 and is to end on April 20, 2007, by which Providence leased the premises described as: That certain office space located in various buildings located on Lot 5A-1 A, Military Reserve, U.S. Survey 2538 according to plat 95-04 recorded in the Kodiak Recording District, Third Judicial District, State of Alaska, and more particularly described below. 714 Eagan Way, Kodiak Island Borough Mental Health Offices and Dorm Building Apartments A through G. Partial Use of 716 Eagan Way, Kodiak Island Borough Mental Health boiler room. 718 Eagan Way, Kodiak Island Borough Mental Health Offices and Dorm Building Apartments H through M. b. They desire to renew the term of that lease agreement. In consideration of the mutual covenants contained in this agreement, the parties agree as follows: 1. The execution of this agreement shall constitute a renewal of the basic lease agreement between the parties (excluding, however, the right to renew in paragraph 4.2) and shall extend the termination date to April 20, 2017. 2. Nothing in this agreement shall operate to discharge or release Providence or its assigns from the duty and obligation to perform each of the terms and conditions of the original lease. In witness, each party has caused it to be executed on the date indicated below. ATTEST: :Arp aw"_� Nova Javier, orough Clerk A Kodiak Island Borough ck Gifford, Its agAer .' O Providence Health System - Washington d/b/a Providence Health System in Alaska By: E.P rish, Its Regional Vice President and Chief Executive STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) On this day personally appeared before me Rick Gifford, to me known to be the person who signed as the Manager of the Kodiak Island Borough, an Alaska municipal corporation and acknowledged that he was duly authorized to execute said instrument as the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned. GIVEN under my hand and official seal this 6 d day of 1AC-, 2007. �6 �pN UCIe �iow, NOTA BLIC for t State of 41aska �j�'�•,........• My commission expir 8 A 51d -C14 TA•• •X4nft9gf•�• `Agreement - Page 2 of 3 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) On this day personally appeared before me E. A. Parrish, to me known to be the Regional Vice President and Chief Executive of Providence Health System - Washington d/b/a Providence Health System in Alaska the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute said instrument on behalf of said corporation. A GIVEN under my hand and o ':pONNA e'1''► NOTggy s o :�'� pUBUG r. OF P&'. . 4444 * -440 04, air 'i,�N;��, seal this2Q\day NOTARY PIJBLIC for the Statf l oaska My co_mfhission expires: a/ (� 4702\961 PKICC lease\Renewal Agreement Renewal of Lease Agreement - Page 3 of 3 Meyers, Teresa From: Rush, Donald Sent: Monday, February 19, 2007 9:20 AM To: Swanson, Amanda Subject: FW: FW: Lease -----Original Message ----- From: Mays, Stephanie Sent: Thursday, February 15, 2007 12:28 PM To: Rush, Donald Subject: RE: FW: Lease Hi Don, It's been a while since I have touched this document. Having said that, the renewal of the Lease Agreement, looks fine, from a legal perspective, as does the Resolution. Please ensure that from a business perspective, it meets your expectations. As well, the Resolution looks great. But again, if you have specific business concerns, do let me know. If you have additional questions, please let me know. L. Stephanie Mays Office of Legal Affairs Providence Health & Services System Office 506 Second Avenue Suite 1200 Seattle, WA 98104-2329 206.464.3986 - phone 206.464.5034 - fax stephanie.mays@providence.org Assistant: Terry Shahrivar 206.464.4733 -----Original Message ----- From: Rush, Donald Sent: Thursday, February 15, 2007 12:46 PM To: Mays, Stephanie Subject: FW: FW: Lease Importance: High Hi Stephanie, Your review of the attached is urgent. I will call. The KIB votes tonight. Don -----Original Message ----- From: Rick Gifford[mailto:rgifford@kib.co.kodiak.ak.us] Sent: Thursday, February 15, 2007 11:42 AM To: Rush, Donald Subject: FW: FW: Lease Importance: High Hi Don, Please review the attached revisions completed by the Borough Attorney this morning. I need to know fairly quickly if this will work, if we want the Assembly to act on it tonight. 1 Please let me know as soon as possible. Thanks Rick Rick Gifford Borough Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Phone: 907-486-9301 Fax: 907-486-9374 Email: rgifford@kib.co.kodiak.ak.us -----Original Message ----- From: Matthew St John [mailto:Matthew@JESMKOD.COM] Sent: Thursday, February 15, 2007 11:41 AM To: Linda Brown; Rick Gifford Cc: Alan Schmitt Subject: Re: FW: Lease Rick, Attached for your review are copies of a resolution and agreement incorporating a reduction in the equipment budget in lieu of an increase in lease payments, per your request. Please give us a call if you have any questions or concerns. Alan can be reached in Anchorage at 907-222-1691 after about 2:30. I will be in the office in Kodiak. Alan noted that you should anticipate any possible ramifications that a reduction in the equipment budget might have on spending for equipment under the Fern Fuller Fund, and that you might check in with Karl about the same. Thanks, Matt St. John This electronic message transmission contains information belonging to Jamin Schmitt St. John that is solely for the recipient named above and which may be confidential or privileged. Jamin Schmitt St. John EXPRESSLY PRESERVES AND ASSERTS ALL PRIVILEGES AND IMMUNITIES APPLICABLE TO THIS TRANSMISSION. If you are not the intended recipient, be aware that any disclosure, copying, distribution, or use of the contents of this communication is STRICTLY PROHIBITED. If you have received this electronic transmission in error, please notify me by telephone (907-486-6024) or by electronic mail (matthew@jesmkod.com) immediately. Thank you. >>> "Rick Gifford" <rgifford@kib.co.kodiak.ak.us> 02/14/07 09:18AM >>> Hi Linda, Here are the changes that I would like to have reflected in the resolution and the agreement. If you have any questions, please contact me. Thanks 2 R _cL Rick Gifford Borough Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Phone: 907-486-9301 Fax: 907-486-9374 Email: rgifford@kib.co.kodiak.ak.us <mailto:rgifford@kib.co.kodiak.ak.us> From: Rush, Donald [mailto:Donald.Rush@providence.org] Sent: Tuesday, February 13, 2007 4:40 PM To: Rick Gifford Subject: Lease Hi Rick, Well, Al Parrish is adamant about the need for us to reduce the contribution by 42K instead of increasing the lease payments by 42K. He just doesn't want to reflect a decreased net income of 420K over the life of the lease. He thinks any reduction is going to impact us because we our margins are so tight every year. I have attached a modified Exhibit D, reflecting the decrease. I am also attaching the amended Sections 3.2 and 20.2 that reflects the change. Your attorney could quickly check for other areas as well but I think this covers it. Don Rush PKIMC CEO 1915 East Rezanof Drive Kodiak, AK 99615 (P) 907-486-9596 (F) 907-486-2336 DISCLAIMER: This message is intended for the sole use of the addressee, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the addressee you are hereby notified that you may not use, copy, disclose, or distribute to anyone the message or any information contained in the message. If you have received this message in error, please immediately advise the sender by reply email and delete this message. 3 AMENDMENT B Section 2 of the lease between the Kodiak Island Borough and Sister of Providence in Washington d/b/a Providence Health System in Alaska for the Mental Health Center is hereby deleted and amended as follows: 2. PREMISES: The real estate which is the subject matter of this Agreement is described as follows: That certain office space located in various buildings located on Lot 5A -IA, Military Reserve, US Survey 2538 according to plat 95-04 recorded in the Kodiak Recording District, Third Judicial District, State of Alaska and more particularly described below. a. 714 Eagan Way, Kodiak Island Borough Mental Health Offices and Dorm Building Apartments A through G. b. Partial use of 716 Eagan Way, Kodiak Island Borough Mental Health boiler room. c. 718 Eagan Way, Kodiak Island Borough Mental Health Offices and Dorm Building Apartments H through M. Including all buildings, appurtenances, and improvements thereto, as well as the existing parking areas as identified on Exhibit A, attached (herein referred to as "Premises") IN WIT 1NESS W"EREOF, the parties have hereunto set their hands and seals this / 7tK day of 2006. TENANT: Sisters of Providence in Washington dba Providence Health System in Alaska B yscvv\ q'i rh ir, �Y e N- e 4u_ 00erdn b" A ym1 T'iher a i, AT T, B y : �aw rt ,�' � s o,\ Name hireckoy , f81SCi Title 444 LANDLORD: THE KODIAK ISLAND BOROUGH Rick Gifford, Borough Mana er r 6 A T - Nova Javier, CMC, B ough Clerk a tl Ii a �s� tit J r tl Ii a �s� tit r ,� jjd3 • Item No. 12.A Kodiak Island Borough AGENDA STATEMENT Regular Meeting of October 20, 2005 Contract No. 97-07-B Amending Contract No. 97-07 Agreement Between the KIB & Sisters of Providence in Washington d/b/a Providence Health System in Alaska for Lease of the Kodiak Island Hospital & Care Center. The attached lease is an amendment and restatement of the original Contract 1997-66 with Providence Health System in Alaska to lease and operate Kodiak Island Hospital. The term of the lease is from April 21, 1997 to April 20, 2007 with an option to extend for ten years. In 1997 Providence leased the Hospital with a $2,000,000 down payment and then lease payments of $720,000 per year for the next ten years. If Providence did not lease the Hospital for the full ten years then the proportional amount of the $2,000,000 down payment would be returned to Providence Health System in Alaska. The reason for the proposed amendments is to clear up ambiguities in the original lease that have been realized from several years of operating the hospital; clean up and eliminate unnecessary provisions that are no longer pertinent, can be integrated with the amendments and recognize new confidentiality requirements; maximize cost reimbursement from Medicare/Medicaid through depreciation of equipment; and recognize the relationship with Kodiak Community Health Center ("KCHC") and its operations within the hospital campus. The amended lease recognizes the operation of KCHC. Currently KCHC leases its space from Providence. The amended Providence lease proposes that Kodiak Island Borough ("KIB") will negotiate a lease directly with KCHC and the lease payments with Providence will be adjusted accordingly to take into account the lease with KCHC. Currently, KIB purchases $150,000 of equipment for the hospital every year. Since KIB purchases the equipment, the equipment is on the Borough's books. The amended lease will provide that KIB give Providence $150,000 each year for Providence to purchase equipment. The equipment will then be on Providence's books and Providence will be able to recapture the depreciation in their Medicare/Medicaid rates. In a recent presentation at a KIB Work Session, Hospital officials estimated an increase value to the community over 10 years of approximately $600,000 generated from Medicare and Medicaid reimbursement. The amended lease deletes the profit sharing language. The amended lease allows Providence to retain any profits for use by the hospital for equipment and operations. Providence will spend 50% of each year's profits, up to $200,000 for equipment and retain the profits for the benefit of the Kodiak Island Hospital. Under the current profit sharing provision, Hospital officials indicate the need to have operating income at twice the net operating margin in order to maintain sufficient working capital to operate and to fund cash reserves to replace equipment and expand services to the community. In addition, Hospital officials indicate that dividing the profits with the KIB actually is increasing costs to the community, as prices have to be significantly increased to operate at an acceptable margin. The followina table summarizes the financial nmenrimante fn fho rnnfron4• Current Contract Proposed Contract KIB purchased $150,000 in equipment each KIB will give Providence $150,000 to purchase year and kept title. new a ui ment each year. KIB retained half of net income (including Providence will keep all income. depreciation on capital assets) less capital Providence will spend 50%, up to $200,000, of expenditures. If an asset is purchased and the previous year's income on equipment to be then depreciated it is a capital expenditure. used at the Kodiak Hospital. Providence had to leave a like amount of KIB will give all operating supplies to operating supplies when they left the Providence. Hospital. $277,000 Lease payments of $720,000 per year. Lease payments of $720,000 per year. Providence provided an initial down payment of $2,000,000 for construction of new facility. FISCAL NOTES: ACCOUNT NO.: ® N/A Expenditure Amount Required: Bud FOR AGENDA: The motion before the Assembly is to approve Contract No. 97-07B with Providence Health System - Washington d/b/a Providence Health System in Alaska. 113 711/zolo� AMENDED AND RESTATED LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as "KIB"), and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non-profit corporation (hereinafter referred to as "Providence"). WITNESSETH: WHEREAS, KIB is the owner of certain real property consisting of a Health Care Facility together with improvements located thereon, and certain Equipment located in and about the Premises known as Kodiak Island Hospital and Care Center, (hereinafter referred to as "Hospital"); WHEREAS, the KIB, in the interest of sound fiscal management and to ensure the continued operation of the Hospital in a professional and efficient manner, has requested Providence to lease and operate the Hospital; WHEREAS, Providence owns and operates a number of health care facilities, that are operated in keeping with its philosophy, mission and values; and WHEREAS, Providence desires to lease the Premises and the Equipment from KIB, subject to the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows: 1. AGREEMENT TO LEASE: KIB agrees to lease to Providence and Providence agrees to take from KIB, the Premises and Equipment described herein, for the term and upon the terms and conditions set forth in this Agreement. 2. PREMISES: The real estate which is the subject matter of this Agreement is described as follows: Lot Two -A (2-A) Hospital Subdivision according to Plat 95-03, located in the Kodiak Recording District, Third Judicial District, State of Alaska. Including all buildings appurtenances, and improvements thereto, (herein referred to as `Premises"). Notwithstanding anything to the contrary, Providence recognizes and acknowledges that KIB may lease space to other entities contingent upon available space and advance approval from Providence.. 3.1 EQUIPMENT: The Equipment which is the subject matter of this Agreement is all of the Equipment presently located in or on the Premises, in an "as is" condition, at the inception of this Lease Agreement and all Equipment subsequently acquired directly by the KIB. 3.2 NEW AND REPLACEMENT EQUIPMENT: The KIB agrees to budget a minimum of $150,000 each year effective for the KIB fiscal year beginning July 1, 2005, for purchase or lease purchase of new and replacement Equipment for use in the Hospital for the depreciable life of the equipment unless otherwise approved by KIB. This contribution will be paid to Providence on or before January 31 of each calendar year of the Agreement. Providence will place these funds in a Funded Depreciation account for the sole purpose of purchasing or lease purchasing new and replacement equipment for the Hospital. New and replacement equipment will remain on the balance sheet of Providence for the duration of the Lease Agreement. Providence, at the termination or expiration of this Agreement, including Agreement extensions, will transfer assets in an amount equal to the estimated book value of equipment(Exhibit D) purchased with KIB contributions based upon an average useful life of 5 years. 3.3 ADDITIONAL EQUIPMENT: Providence may purchase additional equipment to be used in the maintenance or improvement of the Hospital's operations. Such additional equipment shall be Providence's property, and shall be tagged as such. Upon termination or expiration of this Agreement, KIB may purchase any items of equipment used in the Hospital and paid for by Providence. The purchase price shall be Providence's book value of the acquired equipment. Minor equipment previously expensed by Providence and equipment and furnishings purchased by Providence with no book value shall be contributed to the KIB at the termination or expiration of this Agreement. Any equipment or personal property which belongs to Providence and is not purchased by KIB may be removed by Providence after the termination or expiration of this Agreement. 4.1 TERM OF AGREEMENT: The Premises and Equipment shall be leased to Providence by KIB for a term of ten (10) years, commencing on April 21, 1997, through and including April 20, 2007, unless sooner terminated as hereinafter provided. 4.2 ADDITIONAL TERM: Provided that Providence is not in default under this Lease Agreement, Providence shall have the option to extend this Lease Agreement for one additional term of ten (10) years by providing KIB with 180 days prior written notice. The extended term shall be on the same terms and conditions of this Lease Agreement, or as such terms and conditions are modified upon mutual written agreement of both parties, with monthly lease payments to be established by negotiation. 4.3 SURRENDER OF PREMISES: At the expiration of the term of this agreement or upon the termination of this agreement as provided for herein, Providence shall surrender possession of the Premises and Equipment to KIB as set forth under the terms of this Agreement. 5.1 FIRST RIGHT TO PURCHASE: KIB hereby gives and grants to Providence the first right to purchase all of KIB's interest in the Hospital, Premises, and Equipment at any time from the date of this Agreement until the termination of this Agreement as provided for herein. Said right of first refusal shall include space leased from KIB by other entities. KIB shall make any sale of said interest in the Hospital, Premises and Equipment between KIB and a third party conditioned upon and subject to Providence's first right to purchase as set out herein, including but not limited to space under Lease between KIB and other entities. Providence shall have the right to accept the purchase price and the terns of the intended sale to the third party as the terms and conditions of the sale between KIB and Providence. 2 5.2 NOTICE: Providence may exercise its first right to purchase by executing an agreement within ninety (90) days of notice of KIB'S intent to sell its interest in the Hospital, Premises and Equipment, on terms and conditions as agreed between the parties. If Providence does not exercise its first right to purchase as provided for herein or enter into a purchase with KIB within ninety (90) days of the notice by KIB to Providence of its first right to purchase, then and in that event Providence's first right to purchase shall lapse and KIB may sell the Hospital, Premises and Equipment or any part thereof to said third party or any other parties on substantially the same terms stated in the notice. If KIB does not sell and convey the Hospital, Premises and Equipment within 90 days after expiration of the 90 day notice period, any further transaction shall be deemed a new determination by KIB to sell and convey the Hospital, Premises and Equipment and the provisions of Sections 5.1 and 5.2 shall be applicable. 6. MONTHLY LEASE PAYMENT SCHEDULE: The fixed minimum monthly lease payment during the term of this Agreement shall be SIXTY THOUSAND DOLLARS ($60,000) payable by Providence in equal monthly installments, on or before the first day of each month in advance, at the office of KIB or at such other place designated by KIB, without any prior demand therefore, and without any deduction or setoff whatsoever. Notwithstanding anything to the contrary, this amount shall be reduced by the equivalent of the square foot cost of the hospital, not to include services, ($720,000 times percent of area used) of the premises KIB is leasing to other entities, regardless of the actual amount KIB charges other entities for the leased space. 7.1 HOSPITAL OPERATIONS: Providence shall be responsible for the total operations of the hospital. Providence shall operate the Hospital under the name Providence Kodiak Island Medical Center. Except as otherwise stated herein, Providence assumes all the rights, duties, liabilities and obligations which shall arise out of its operation of the Hospital and other activities on the Premises during the term of this Agreement. Providence shall cause all expenses incurred in operation of the Hospital after the effective date of this Agreement to be paid, including, but not limited to, utilities, insurance, salaries, supplies, fees, benefits and other costs normally incurred in the operation of the Hospital. Providence will spend an amount equal to or greater than 50% of the net operating income, up to a maximum of $200,000, per calendar year for equipment or capital assets to be used at Hospital. These funds will be kept in a Providence Funded Depreciation account, restricted for use at the Hospital. Unused portions of these funds will be carried forward to subsequent years. Funds can also be used to pay debt obligations of Providence Kodiak Island Medical Center. At the termination or expiration of this Lease Agreement unused funds will revert to KIB. 7.2 SEPARATE ACCOUNTING: Providence shall maintain separate accounting records and financial statements for the operations of the Hospital and shall provide KIB with the Hospital's year-end financial statements. KIB recognizes that Providence may, at its discretion, change the fiscal year of the Hospital to be aligned with Providence Health System. 7.3 TRAINING: Providence may conduct medical educational training programs at the Hospital, including training of interns and residents and other medical/technical personnel, in a manner consistent with applicable governmental regulations. 3 7.4 ACCESS TO BUSINESS RECORDS: Providence shall have access to all prior financial, business, medical and other Kodiak Island Hospital books and records, including, but not limited to, admitting register books, pricing schedules of the Kodiak Island Hospital and room services, patients' insurance records, pertinent Kodiak Island Hospital personnel records and such other books and records as are necessary to the continued operation of the Hospital. Original copies of all such books and records shall be maintained and stored in the Hospital at all times. No such books and records may be destroyed without the consent of the KIB, and in no event will patient medical records be destroyed, except in accordance with federal and state laws, rules and regulations. KIB agrees to defend and hold Providence harmless against all claims, liability and expense resulting from acts or omissions of KIB in connection with such books and records and relating to the period prior to the effective date of this Agreement. KIB shall continue to be liable for the performance of all agreements related to such books and records not so assigned to Providence. 8. UTILITIES: Providence shall arrange and pay for all utilities and other services to be furnished to the Premises, including gas, fuel, oil, electricity, sewer, water, telephone, and garbage collection. 9. TAXES: Providence shall be responsible for and shall pay before delinquency all governmental taxes, assessments charges or liens assessed during the term of this Agreement against any leasehold interest or property of any kind or income or sales of any kind related to the Premises. KIB acknowledges that Providence will be entitled to a property tax exemption for property used exclusively for non-profit hospital purposes pursuant to AS 29.45.030(a)(3), except to the extent that the leasehold Premises are used by non-exempt parties for their private business purposes as elaborated in Greater Anchorage Area Borough v. Sisters of Charity, 553 P.2d 467 (Alaska 1976). Providence may contest, by appropriate proceedings, any tax assessment, charge or lien, but such contest shall not subject any part of the Premises or Equipment to forfeiture or loss. Providence and KIB agree to negotiate in good faith regarding any KIB property taxes levied or assessed on the Premises and Equipment owned by KIB and leased to Providence, or any property owned by Providence during the term of this Agreement. 10. SUPPLIES: Providence shall take ownership all of the supplies maintained at the Hospital at the commencement of this Lease Agreement. Providence shall supply and maintain all expendable Hospital supplies as may be required in Providence's discretion for the proper operation of the Hospital. Upon termination of this Agreement, Providence will transfer ownership of all of the supplies maintained at the Hospital to KIB. The value of the supplies provided by Providence at the termination of this Agreement shall be equal to the value of the supplies transferred to Providence at the commencement of this Agreement increased by three percent annually. The increase will be prorated based on the number of months for partial years. A partial month will be considered a full month for the calculation. If providence does not transfer sufficient supplies under the formula in the previous sentence, then Providence will pay the balance to KIB at the time of termination. Likewise, if the value of inventory is greater than the calculation KIB will pay the balance to Providence at time of termination. 11. USE: Providence shall use and operate the Premises for a general acute care hospital, extended care facility, home health care provider, retail pharmacy and for any additional health care related purposes as may be appropriate. Providence shall provide, equip and maintain adequate facilities for the continuation of full range general medical and surgery services as economically feasible and warranted by the local physicians' levels of ability and the 13 reasonable needs of the community, as determined in Providence's sole discretion and in accordance with the terms and conditions as set forth in this Agreement. Contingent on Borough approval Providence may convert parts of the Premises into use for other related purposes consistent with KIB's obligation to supply its inhabitants with facilities for the care of sick and injured persons. Providence shall operate and maintain a duly licensed Hospital under the Alaska Statutes and in accordance with the standards prescribed by the Alaska Department of Health and Social Services. 12. QUIET ENJOYMENT: KIB warrants that Providence, upon paying the rent and any other charges as provided for in this Agreement and upon performing all other obligations herein, shall quietly have, hold and enjoy the Premises without hindrance. 13. WARRANTY OF TITLE: KIB hereby warrants that it has good and marketable title to the Premises, subject only to the encumbrances and security interests stated in Exhibit B, attached hereto and incorporated herein. 14. PRIOR AGREEMENTS: KIB warrants that entering into this Agreement does not breach any commitments or responsibilities of KIB under prior agreements, including but not limited to financing agreements, and that KIB shall defend and hold Providence harmless from any claims, liabilities and expenses arising from or in any way related to any prior agreements of KIB except to the extent such agreements are assumed by Providence. 15. BUILDING REGULATIONS: As of April 21, 1997, KIB warrants that there are no existing violations of applicable building, fire and health code regulations of which it is aware. KIB is responsible for all costs of correcting any existing violations of applicable building, fire and health code regulations. Providence shall otherwise keep and maintain the Premises in good condition. 16. ACCREDITATION: Providence will use its best efforts (so long as it is in the best interests of Providence and KIB) to cause the Hospital to become and remain accredited by the Joint Commission on the Accreditation of Health Care Organizations. Providence shall send to the KIB upon any loss of accreditation a written notice that the Hospital is no longer accredited and the reasons for non -accreditation. 17. MEDICARE/MEDICAID PARTICIPATION: Both parties hereby represents and warrants that they are not and at no time have been excluded from participation in any federally funded health care program, including Medicare and Medicaid. Both parties hereby agree to immediately notify the other of any threatened, proposed, or actual exclusion from any federally funded health care program, including Medicare and Medicaid. In the event that either party is excluded from participation in any federally funded health care program during the term of this Agreement, or if at any time after the effective date of this Agreement it is determined that either party is in breach of this Section, this Agreement shall, as of the effective date of such exclusion or breach, automatically terminate. 18. DISPOSAL OF MEDICAL WASTE AND/OR GARBAGE: Providence shall at its expense, properly and timely dispose of all medical waste and/or garbage refuse according to any and all laws governing disposal of the same. 5 19.1 INSURANCE: Providence shall, at its expense, maintain throughout the term of this Agreement the following insurance: A. Insurance against loss or damage by fire and such other risks as may be included in the current KIB hazard insurance policy with extended coverage in an amount not less than the replacement value of the Premises from time to time; B. Insurance against claims for personal injury and property damage occurring on the Premises under public liability and malpractice policies with limits of not less than $1,000,000 per person, $3,000.000 per occurrence and $500,000 for property damage arising out of any single occurrence. Such insurance policies may provide for partial self-insurance under the same terms as the policies for hospitals owned and operated by Providence. KIB shall be named as an additional insured party on each such policy of insurance, and certificates thereof shall be furnished to KIB. 19.2 Providence shall also provide tail coverage for hospital professional liability for the KIB and Lutheran Health Services (LHS) Management System for the period in which LHS operated the Hospital by purchasing coverage with the current carrier which provides coverage for all occurrences since 1987. 19.3 KIB shall, at its expense, maintain throughout the term of this Agreement insurance to cover all conditions, events and liabilities arising out of its actions and activities relating to the Hospital. 20.1 MAINTENANCE AND REPAIRS: Providence shall cause the Hospital to be maintained and repaired in accordance with all state and local codes, and keep the Hospital in a condition at all times reasonably acceptable to KIB, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care and such other maintenance and repair work as may be necessary. KIB shall provide and pay for any major maintenance and repairs. Major maintenance and repairs are defined as repairs greater than $25,000. If a repair is greater than or equal to $25,000, the KIB shall be responsible for the full amount of the repair. Providence shall be responsible for all repairs less than $24,999. If repairs go over the $25,000 limit because maintenance or repairs were not accomplished by Providence in a timely manner, KIB reserves the right to perform repairs or maintenance. KIB will be reimbursed for all costs of such repairs and maintenance by Providence. 20.2 DEPRECIABLE CAPITAL ASSETS: KIB shall provide and pay for depreciable capital assets, mutually agreed to by KIB and Providence, including the cost of building components, land improvements, fixed equipment and building services equipment with useful lives of 10 years or more as defined by the latest edition of the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets (Exhibit Q. Providence shall provide and pay for depreciable capital assets with useful lives of 9 years or less as defined by the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets. The Section 3.2 $150,000 equipment contribution will not be used to purchase these assets. 21. CONDITION ON SURRENDER: Upon termination or expiration of this Agreement, Providence shall surrender the Premises to KIB in substantially the same condition as exists on the date hereof, except for reasonable wear and tear. no 22. IMPROVEMENTS AND ALTERATIONS: Providence shall make no alterations in, or additions or improvements to, the permanent structure of the Premises without first obtaining the written consent of KIB. Any additions and improvements made to the permanent structure of the Premises shall remain upon and be surrendered with such Premises as a part thereof at the expiration of the term of this Agreement, by lapse of time or as otherwise provided herein. 23. CONTRIBUTIONS: In the event that contributions are made to Providence for the benefit of the Hospital and/or KIB, Providence may accept such contributions, it being understood, however, that Providence shall comply with the wishes of the donor insofar as they are compatible with the operation of the Hospital and that all property purchased with such contributions shall be and remain a part of the Hospital and shall revert to KIB at the expiration or termination of Lease Agreement. Should the terms or conditions of the contribution indicate that it is intended for Providence and not for the Hospital or KIB, Providence shall accept the contribution on its own behalf and utilize the funds in its sole discretion. For purposes of this paragraph the term `contribution' shall include a gift, bequest, grant or donation of money or property. It is expressly understood that the term "contribution' does not include any money derived by, or from, taxes or other governmental funds or entities. 24. MEDICAL STAFF: Any medical physician or osteopathic physician holding an unlimited license or any appropriately licensed dentist, who is recommended for approval by the Medical Staff and approved by the governing board of Providence shall be permitted privileges to practice in the Hospital. This section does not prohibit Providence from entering into an exclusive contract for the practice of an anesthesiologist or another specialist for the benefit of the community. 25. ADMISSION TO HOSPITAL: All persons in need of hospitalization shall be admitted to the Hospital without regard to race, creed, color, national origin or financial circumstances. 26.1 INDEMNIFICATION: Providence hereby agrees to indemnify and hold KIB harmless from and against any and all claims and demands for injury or death to persons and damage to property occurring on the Premises during the term hereof, and will defend KIB from any claim of liability on account thereof. Providence shall have no obligation for, and KIB shall indemnify and hold Providence harmless from and against, any and all liability with respect to any claims resulting from the negligence of KIB or its agents or employees, or any claims arising out of acts or omissions which occurred prior to the effective date of this Agreement. 26.2 HAZARDOUS SUBSTANCE INDEMNIFICATIION BY PROVIDENCE: Providence shall indemnify, defend, and hold KIB harmless from and against any and all claims, demands, damages, losses, liens, costs and expenses (including attorney's fees and disbursements) which accrue to or are incurred by KIB arising directly or indirectly from or out of or in any way connected with: (A) any activities within the Hospital or on the Premises during the term of this Agreement which directly or indirectly resulted in the Premises being contaminated with Hazardous Substances, (B) the discovery of Hazardous Substances on the Premises whose presence was caused during the term of this Agreement, and (C) the clean-up of Hazardous Substances on the Premises whose presence was caused during the term of this Agreement. 7 26.3 HAZARDOUS SUBSTANCE INDEMNIFICATION BY KIB: KIB shall indemnify, defend, and hold Providence harmless from and against any and all claims, demands, damages, losses, liens, costs, and expenses (including attorney's fees and disbursements) which accrue to or are incurred by Providence arising directly or indirectly from or out of or in any way connected with: (A) any activities within the Hospital or on the Premises prior to the term of this Agreement which directly or indirectly resulted in the Hospital and/or the Premises being contaminated with Hazardous Substances, (B) the discovery of Hazardous Substances on the Premises whose presence was caused prior to the term of this Agreement, and (C) the clean-up of Hazardous Substances on the Premises whose presence was caused prior to the term of this Agreement. 27.1 ACCESS TO RECORDS: KIB and Providence further agree that Providence shall retain and make available upon request for a period of four (4) years after the furnishing of such services (operation of the Hospital) as described in this Agreement, the books, documents and records which are necessary to certify the nature and extent of the costs thereof when requested by the Secretary of Health and Human Services or the Comptroller General, or any of their duly authorized representatives. If Providence carries out any duties of this Agreement through a subcontract with a related organization, valued at $10,000 or more over a 12 -month period, the Subcontract shall also provide that the Secretary of Health and Human Services or the Comptroller General may have access to the subcontract and the subcontractor's books, documents and records necessary to verify the costs of the subcontract for a period of four (4) years after the services have been furnished. This provision relating to the above retention and production of documents is included because of possible application of Section 1861 (v)(1)(1) of the Social Security Act to this Agreement; if this Section should be found to be inapplicable, then this clause shall be deemed to be inoperative and without force and effect. 27.2 PERSONNEL RECORDS: Should this Agreement terminate for any reason, Providence agrees to provide to KIB all personnel records for those employees who are to be re- employed by KIB who consent to the release of such records to KIB. 27.3. OPERATIONAL RECORDS: Except as otherwise provided herein, Providence agrees to provide KIB with the books, documents and records, including medical records, in regard to the operation of the Hospital, in accordance with all federal, state and local laws, rules and regulations including, but not limited to, privacy laws. 27.4 CONFIDENTIAL INFORMATION: Providence shall comply with all laws, regulations, directives or requirements in any form related to operating and managing hospitals and long-term care facilities, including, but not limited to the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), and regulations adopted under HIPAA. The KIB shall not have access to Protected Health Information as defined by HIPAA. KIB has read 45 C.F.R. 164.504(e), understands Providence's position is that 45 C.F.R. 164.504(e) applies to this Agreement, and that Providence therefore has the following obligations: K Providence agrees to hold all individually identifiable patient health information ("Protected Health Information") that may be shared, transferred, transmitted, or otherwise obtained pursuant to this Agreement strictly confidential, and provide all reasonable protections to prevent the unauthorized use or disclosure of such information, including, but not limited to the protection afforded by applicable federal, state and local laws and/or regulations regarding the security and the confidentiality of patient health care information. Providence further agrees to make every reasonable effort to comply with any regulations, standards, or rules promulgated pursuant to the authority of the HIPAA, including those provisions listed below, as soon as possible, but in no event later than April 14, 2003. Providence may use and disclose Protected Health Information when necessary for Providence's proper management and administration (if such use or disclosure is necessary), or to carry out Providence's specific legal responsibilities pursuant to this Agreement. Specifically, Providence agrees as follows: (1) to maintain safeguards as necessary to ensure that the Protected Health Information is not used or disclosed except as provided herein; (2) to mitigate, if possible, any harmful effect known to Providence of a use or disclosure of Protected Health Information by Providence; (3) to ensure that any subcontractors or agents to whom it provides Protected Health Information will agree to the same restrictions and conditions that apply with respect to such information; (4) to make available respective internal practices, books and records relating to the use and disclosure of Protected Health Information to the Department of Health and Human Services or its agents; (5) to incorporate any amendments or corrections to Protected Health Information when notified that the information is inaccurate or incomplete; (6) to return or destroy all Protected Health Information that Providence still maintains in any form and not to retain any such Protected Health Information in any form upon termination or expiration of this Agreement, if feasible or, if not feasible, Providence agrees to limit any uses of Protected Health Information after this Agreement's termination or expiration to those specific uses or disclosures that make it necessary for Providence to retain the information; (7) to ensure applicable policies are in place for providing access to Protected Health Information to the subject of that information; (8) if requested by the KIB, report to KIB any use or disclosure of Protected Health Information which is not provided for in the Agreement; and (9) to make Protected Health Information and an accounting of disclosures available to the individual who is the subject of the information or to KIB, to the extent required by HIPAA. Breach of this section shall be considered material. 27.5 STORAGE SPACE: Providence shall provide at no cost to KIB sufficient storage space for KIB to store its existing books and records relating to the Hospital. 28.1 HOSPITAL ADMINISTRATOR: All administrators for Hospital shall be selected and hired with KIB consultation. Providence shall conduct annual evaluations regarding the Administrator in consultation with KIB. The Administrator shall attend meetings of the Kodiak Island Service Area Community Board and KIB, representing Providence and reporting on the condition and affairs of the Hospital. Providence agrees to provide reasonable support and assistance to the Administrator to enable the Administrator to administer the business and affairs of the Hospital in an efficient and business -like manner consistent with the needs of the community. 28.2 TERMINATION OF ADMINISTRATOR: Notwithstanding any other terms and conditions of this Agreement to the contrary, in the event this Agreement is terminated prior to the expiration of its full term, then Providence shall provide an Administrator for the Hospital on a contract basis for ninety days following the termination if requested by KIB. Z 29. KODIAK ISLAND HEALTH CARE FOUNDATION OFFICE SPACE: Providence will work cooperatively with Kodiak Island Health Care Foundation to provide financial assistance at mutually agreed upon levels, subject to Providence's annual budgetary limitations, for the committed development of community healthcare. 30. GOVERNANCE: The overall management and control of the Hospital will rest with the Providence Alaska Regional Board. It is anticipated that two KIB residents will be eligible to participate as voting members on this Board. One member shall be the Chief of Staff and one member shall be the Board Chair of the Kodiak Island Service Area Community Board. 31. KODIAK ISLAND SERVICE AREA COMMUNITY BOARD: An Advisory Board meeting the requirements of 7AAC 13.030(a) will be appointed by Providence to provide input to the hospital staff, the medical staff, and Providence Alaska Regional Board about the concerns of the community regarding the operation of the Hospital and to undertake the responsibilities set out at 7 AAC 13.030(b) and (c). One KIB Assembly member shall be appointed by Providence as a full voting member of the Kodiak Island Service Area Community Board, and Providence shall give KIB the opportunity for review and comment before appointments to the Board are made. Providence shall keep the Kodiak Island Service Area Community Board updated with respect to matters of Hospital policy and the relationship of the Hospital to the community and surrounding areas which it serves. 32. RIGHT TO ENTER PREMISES: Upon reasonable notice, Providence shall permit KIB, its agents and employees to have access to and to enter the Premises at all reasonable and necessary times to inspect the Premises. 33. DEFAULT REMEDIES: `Event of Default' means any one or more of the following events, whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body: A. Failure to pay rent required by Section 6 or 7.1 when such rent becomes due and payable, and continuance of such failure to pay for a period of ten (10) days; or B. Default in the performance, or breach of any other covenant or warranty by Providence under this Agreement, with the exception of any obligations imposed under Exhibit B, and continuance of such default or breach for a period of thirty (30) days after there has been given, by registered or certified mail, to Providence by KIB a written notice specifying such default or breach and requiring it to be remedied stating that such notice is a notice of default hereunder; or C. The entry of a decree or order by a court having jurisdiction in the premises adjudging Providence as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of Providence under the Federal Bankruptcy Act or any other applicable Federal or State law, or appointing a receiver, liquidator, assignee, trustee (or other similar official) of Providence or of any substantial part to its property, or ordering the winding up or liquidation of its affairs; or 10 D. The institution by Providence of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the Federal or State law, or the consent by it to the filing of any such assignee, trustee (or other similar official) of Providence or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by Providence in furtherance of any such action. 34. CONTINUING DEFAULT: If an Event of Default by Providence occurs and is continuing, KIB may: A. At its option, declare all installments of rent payable to be immediately due and payable by Providence; B. Re-enter and take possession of the Hospital without termination of this Agreement, and use its best efforts to sublease the Hospital for the account of Providence, holding Providence liable for the difference between the rent and other amounts payable by the sublessee and the rents and other amounts payable by Providence hereunder; C. Terminate this agreement, excluding Providence from possession of the Hospital and use its best efforts to lease the Hospital, or to another for the account of Providence, holding Providence liable for the difference between the rentals received and the rentals which would have been receivable hereunder; D. Terminate this Agreement, exclude Providence from possession of the Hospital and either operate the Hospital or contract with a responsible operator to operate the Hospital; E. With respect to any personal property, exercise any remedies available to a secured party under the Uniform Commercial Code; and/or F. Take whatever action at law or in equity may appear necessary or appropriate to collect the rent then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of Providence under this Agreement. 35. TERMINATION: At any time either KIB or Providence may terminate this Agreement by one year's written notice to the other party. This Agreement shall terminate one year from the date of such notice without further action by either party and shall be of no further force and effect other than to perform any obligation incurred but not paid prior to the termination. However, if Providence is required to perform any duty or provide any service under the terms of this agreement that is in conflict with the philosophy, mission and values of Providence Health System, pursuant to Exhibit A, Providence may terminate this Agreement upon 90 days prior written notice to KIB. Upon such termination, Providence shall surrender possession of the Hospital to KIB. On the effective date of such termination KIB shall have the option to purchase any such accounts receivable, inventory, or supplies at a value agreed to by both parties. KIB shall have option to purchase equipment pursuant to Section 3.3 of this Agreement. Providence agrees to co-operate in such a way as to allow KIB to show the Hospital to a prospective tenant or accommodate the active transition needs of KIB for the actual termination. KIB agrees to cooperate in such a way as to accommodate Providence transition needs and the removal of Providence's assets. 11 36. TRANSFERS OF LICENSES AND PERMITS: The parties will cooperate and jointly prepare and file all applications for transfer of licenses and permits incident to operation of the Hospital, including but not limited to transfer of permits for and inventories of alcohol, narcotics and dangerous drugs. 37. NOTICES: All notices, demands, or other writings in this Agreement provided to be given, made or sent, or which may be given, made or sent, by either party hereto to the other, shall be deemed to have been given, made or sent when made in writing and deposited in the United States Mail, Registered or Certified Mail, postage prepaid, and addressed as follows: KIB: Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Providence: Regional Vice President and Chief Executive Providence Health System in Alaska 3200 Providence Drive P.O. Box 196604 Anchorage, Alaska 99519-96604 38. The address to which any notice, demand or other writing may be given or made or sent to any party as above provided may be changed by written notice given by such party as above provided. 39. ASSIGNMENT AND SUBLEASE: Providence may assign this Agreement and may sublease the Hospital, in whole or in part, only with the prior consent of the KIB, but subject to each of the following conditions: A. At the time of the making of any such assignment or sublease, there shall be no event of Default under this Agreement; B. Any assignee will continue to operate the Hospital as a hospital, in accordance with this Agreement; C. Any assignee of this Agreement shall expressly assume and agree to perform and comply with all the covenants and provisions of this Agreement on the part of Providence and shall be jointly and severally liable with Providence for any default in respect to any such covenant or provision; D. No assignment or sublease shall relieve Providence from primary liability for all rents and other payments due and for the performance of all other obligations required under this Agreement; E. In the case of an assignment of the Agreement or a sublease of all or substantially all of the Hospital, the assignee or sublessee shall agree to pay all rent payable by it directly to KIB, less a pro -rata share of reasonable maintenance, repair, or administrative handling costs; 12 F. KIB shall be provided promptly a duplicate original of the instrument or instruments containing such assignment or sublease. Providence may not mortgage or grant a security interest in this Agreement or leasehold interest. Approval of all subleases assigned by Providence shall be concurrent with the terms of this Agreement. Nothing herein will prevent Providence from leasing space to physicians or other health care providers. No assignment for the benefit of creditors or by operation of law shall be effective to transfer any rights to the Assignee. 40. DAMAGE OR DESTRUCTION: When all or any part of the Hospital is destroyed or damaged, the KIB may: A. Proceed promptly to replace, repair, rebuild and restore the Hospital to substantially the same condition as existed before the taking or event causing the damage or destruction. B. All buildings, improvements and equipment acquired in the repair, rebuilding, replacement or restoration of the Hospital, together with any interests in land conveyed to the KIB as necessary for such restoration, shall become a part of the Hospital and available for use and occupancy by Providence without the payment of any rents other than those provided in Section 6 and 7.1. C. Rent shall be abated in the event of any destruction of damage to, or taking all or any part of the Hospital in proportion to the square footage which is unusable by Providence. D. If fifty percent (50%) or more of the Premises are rendered untenantable by the aforementioned causes, KIB shall have the right to be exercised by notice in writing, from and after said occurrence, to elect not to reconstruct the Premises, and in such event this Agreement and the tenancy hereby created shall cease as of the date of such occurrence, the rent to be adjusted as of such date. 41. CONDEMNATION: If the Premises, or such part thereof as in the reasonable opinion of Providence renders the remainder unusable for its purpose shall be acquired by eminent domain, then this Agreement shall cease and terminate as of the date that possession is taken in such proceeding. Such termination, however, shall not be deemed to deprive Providence of any of its rights to receive compensation by reason of such taking. 42. WAIVER OF SUBROGATION: KIB and Providence, both on their own behalf and on behalf of all others claiming through or under either of them, hereby mutually waive and release all claims, liabilities and causes of action against the other and the agents, servants, employees and invitees of each other, for all loss, damage to or destruction of the Premises or any portion thereof, as well as the fixtures, equipment, supplies and other property of either party located in, upon or about the Premises resulting from fire or other perils covered by standard fire and extended coverage insurance, whether caused by the negligence of any of said persons or entities or otherwise, except to the extent such waiver would violate or otherwise abrogate the terms of such insurance coverage. 13 43. MISCELLANEOUS: All covenants and agreements in this Agreement by KIB or Providence shall bind their successors and assigns, whether so expressed or not. In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. None of the terms, conditions, covenants or provisions of this Agreement can be waived by either party except by appropriate written instrument. The waiver by either party or any breach of any term, condition, covenant or provision herein contained shall not be deemed a waiver of the same of any term, condition, covenant, or provision herein contained or of any subsequent breach of the same or any other term, condition, covenant or provision herein. This Agreement shall be construed in accordance with the laws of the State of Alaska. Nothing in this Agreement, express or implied, shall give to any person, other than the parties hereto, and their successors and assigns, any benefit or other legal or equitable right, remedy or claim under this Agreement. The parties agree the effective date of this Amendment is January 1, 2005. IN WITNESS WHEREOF the parties have respectively executed this Agreement the day and year written below. PROVIIDENCE HEALTH SYSTEM - WASHINGTON d/b/a Prou'ee Health System in Alaska By: -144 sit c Ji Its: c.E 4z.rs Date: ///zi/zoos' ATTEST: STATE OF ALASKA ) )ss.: THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the �?q/sem day of NoYF,,liE6 ��, zap before me, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Al Parrish, to me known to be the Regional Vice President and Chief Executive, Providence Health System Alaska, and known to me to be the person who executed the above and foregoing instrument on behalf of Providence Health System — Washington, and who acknowledged to me that he executed the same as a free act and deed of the said entity for the uses and purposes therein stated and pursuant to the authority granted to him by the Borough Assembly. WITNESS my hand and notarial seal the day and year first above in this Certificate written. , A.�Giy/ !.{� •O�pas""10^ tary Public in and u commission exp: OF '111111\\\\\\\ 14 KODIAK ISLAND BOROUGH By: Its: Date: rl ?u oS ATTEST: STATE OF ALASKA ) )ss.: THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the day of 7005, before me, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Rick Gifford, to me known to be the Manager of the KODIAK ISLAND BOROUGH, and known to me to be the person who executed the above and foregoing instrument on behalf of the municipality, and who acknowledged to me that he executed the same as a free act and deed of the said entity for the uses and purposes therein stated and pursuant to the authority granted to him by the Borough Assembly. WITNESS my hand and notarial seal the day and year first above in this Certificate written. 15 urk) At'� Notary Public in and i6r Alaska My commission expires: l% D% EXHIBIT A PROVIDENCE HEALTH SYSTEM PHILOSOPHY MISSION AND VALUES w Letter from Archbishop of Anchorage Francis T. Hurley -- - aachaiocESE of anchoRage sn caebova sit a &KhO oe am ""I.Se0e 907~4119e • FM- Wl-w9 3M Office of ern ArCobinhap September '1, 1996 Mr. Duuyfas Brucw Administrator Providence Alaska Medicai Center 3200 Providence Drive P.O. box 196604 Anchorage, AK 99519-6604 Dear Mr. Bruce, The :nitiative of Providence Alaska Medical Center to enter info an .operating agreement with small Aiaskan rural communities for the purpuae of providing better health care for more people is one that I applaud. It without question is fully consistent with the commitment of the Catholk Church and the Sisters of Providence to meet the human as well as the spirituel needs of people. From my own observation of with the health care avallable In the smaller conemunities of Southcentral Alaska, I know how mtxh the people strongly desire that more medical services be more readily available to them locally. Local communities can not meet the escalating costs of medical equipment and care. The people are often prevented from :raveling to medical cent9rs in Anchorage because of distance and weather. In addition to that, It Is the desire of patients to be close to their famillcs, friends and ministers at the time of illness. The operating agreement being developed by the City of Kodiak and by Providence Alaska Medical Center will alleviate these difficulties. The plan is. if you will allow a play on words, providential. Forging operating agreements presents some difficulties In communities where there are many varied and at times conflicting attltudes and convictions about what medical practices are morally permissible. The uldelines utilized for Catholic health care systems are contained In the thleat and Religious Directives for Health Services Of the Catholic bishops P the tlnliid States. 1� �ii'q oi�lirodfa�c has standards for Kodiak Hospital. you have Indicated that the City of Kodiak deems it necessary that their long standing practice of elective sterilization be continued. As you know this practice Is not within the Directives. you ask If it would be within the parameters of the Catholic teaching for Providence Medical Center to tolerate the continuance of that practice within tho riry of Kodiak as part of the agreement. 16 September 9, 1996 Pages 1 take note of an important factor. hospital. The operating lei" does accepted terms of the lease identify allow both Providence and the City commitments. Kodiak Hospital remains a community not change that. The mutually the principles and practices that will of Kodiak to be faithful to their in this context 1 make an observation about moral decisions. Moral decisions are generally not made by the application of only one Principle. Rather, several principles must be recognized and brought into harmony. In this instance the principle of cooperation may be brought Into play with our principle$ relative to life and respect for the human body • Within the principle of, cooperation *and under certain conditions and circuonstances it .s permissible that one may cooperate materially. in an action of another that is contrary to one's convictions. in toy judgment the principle of material cooperation does apply in the situation that prevails in Kodiak. Kodiak Hospital remains a community hospital. The operating agreement with Providence Alaska Medical Cantor does not tra,isform It Into a Catholic Hospital. Rather Kodiak Hospital remains a rreimunity hoanital of. the City of Kodiak. The mutually axeptvd terns of agreoment define the practices that will be permitted. The material cooperation fns sterilisation In no way Implies approval of the Procedure by Providence. L hope that the arrangement with the City of Kodiak comes to canpietlon. I know the community well. I was personally involved in working out an agreement with the adteinistrators of the City for the establishment of Brvther Francis Shelter - Kodiak. Cal bless. -%I"- Sincerely in Christ. •Francis T. Hurley Archbishop of Anchorage 17 EXHIBIT B ENCUMBRANCES AND SECURITY INTERESTS There are no encumbrances and security interests. W. EXHIBIT C American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets Revised 2004 Edition (See Attached) 19 EXHIBIT D Estimated Book Value of KIB Contributions KIB Contributions to Providence Estimation of Book Value at Expiration/Termination of Lease Yearly Contribution Esimated Depreciation Year 1 Year Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Book Value Assumptions: Useful Life of Equipment Book Value at the End of Five Years Year 1 Year 2 Year 3 Year 4 Year 5 Total $150,000 $150,000 $150,000 $150,000 $150,000 $750,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $60,000 $30,000 $90,000 $30,000 $30,000 $120,000 $30,000 $30,000 $30,000 $150,000 $0 $30,000 $60,000 $90,000 $120,000 $300,000 5 o] Estimated Useful Lives of Depreciable Hospital Assets ." Izet Introduced by. Requested by Drafted by. Introduced: Adopted: KODIAK ISLAND BOROUGH RESOLUTION NO. FY2007-23 Manager Gifford Manager Gifford Borough Attorney February 15, 2007 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AUTHORIZING A RENEWAL OF THE LEASE WITH PROVIDENCE HEALTH SYSTEM ALASKA FOR THE KODIAK ISLAND HOSPITAL AND CARE CENTER WHEREAS, by means of an Amended and Restated Lease Agreement ("the Lease") executed in November 2005, the Kodiak Island Borough leased the premises known as the Kodiak Island Hospital and Care Center to Providence Health System Alaska ("Providence"); and WHEREAS, the terms of the Lease included a provision by which Providence could extend its term for ten years provided it gave notice of its desire to do so 180 days prior to the expiration of the current lease term; and WHEREAS, the current lease term expires April 20, 2007, and on October 4, 2006 Providence gave notice of its desire to extend the lease term; and WHEREAS, the terms and conditions of any extended lease term are to be the same as those of the Lease unless the parties mutuallyagree to change them; and WHEREAS, there is a mutual agreement between the parties that any extended lease term should include an amendment reducing Kodiak Island Borough's annual equipment contribution from $150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and thereafter; and WHEREAS, it is in the best interest of the Kodiak Island Borough to extend the lease and to continue with the existing terms and conditions but with an amendment reducing Kodiak Island Borough's annual equipment contribution from $150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and thereafter; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that Section 1: The Manager is authorized to execute an agreement with Providence Health System Alaska to extend for another ten-year term, on the same basic terms (but with an amendment reducing Kodiak Island Borough's annual equipment contribution from $150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and 'thereafter), the Amended and Restated Lease Agreement for the premises known as the Kpdiak Island Hospital and Care Center. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTEENTH DAY OF FEBRUARY 2007 KODIAK ISLAND BORO GH ATT ST JerWne M. Selby, Borough M r Nova M. Javier, CMC, Boro Clerk Kodiak Island Borough, Alaska Resolution No.FY2007- 23 Page 1 of 1 Item No. 12.A Kodiak Island Borough AGENDA STATEMENT Regular Meeting of October 20, 2005 Contract No. 97-07-B Amending Contract No. 97-07 Agreement Between the KIB & Sisters of Providence in Washington d/b/a Providence Health System in Alaska for Lease of the Kodiak Island Hospital & Care Center. The attached lease is an amendment and restatement of the original Contract 1997-66 with Providence Health System in Alaska to lease and operate Kodiak Island Hospital. The term of the lease is from April 21, 1997 to April 20, 2007 with an option to extend for ten years. In 1997 Providence leased the Hospital with a $2,000,000 down payment and then lease payments of $720,000 per year for the next ten years. If Providence did not lease the Hospital for the full ten years then the proportional amount of the $2,000,000 down payment would be returned to Providence Health System in Alaska. The reason for the proposed amendments is to clear up ambiguities in the original lease that have been realized from several years of operating the hospital; clean up and eliminate unnecessary provisions that are no longer pertinent, can be integrated with the amendments and recognize new confidentiality requirements; maximize cost reimbursement from Medicare/Medicaid through depreciation of equipment; and recognize the relationship with Kodiak Community Health Center ("KCHC") and its operations within the hospital campus. The amended lease recognizes the operation of KCHC. Currently KCHC leases its space from Providence. The amended Providence lease proposes that Kodiak Island Borough ("KIB") will negotiate a lease directly with KCHC and the lease payments with Providence will be adjusted accordingly to take into account the lease with KCHC. Currently, KIB purchases $150,000 of equipment for the hospital every year. Since KIB purchases the equipment, the equipment is on the Borough's books. The amended lease will provide that KIB give Providence $150,000 each year for Providence to purchase equipment. The equipment will then be on Providence's books and Providence will be able to recapture the depreciation in their Medicare/Medicaid rates. In a recent presentation at a KIB Work Session, Hospital officials estimated an increase value to the community over 10 years of approximately $600,000 generated from Medicare and Medicaid reimbursement. The amended lease deletes the profit sharing language. The amended lease allows Providence to retain any profits for use by the hospital for equipment and operations. Providence will spend 50% of each year's profits, up to $200,000 for equipment and retain the profits for the benefit of the Kodiak Island Hospital. Under the current profit sharing provision, Hospital officials indicate the need to have operating income at twice the net operating margin in order to maintain sufficient working capital to operate and to fund cash reserves to replace equipment and expand services to the community. In addition, Hospital officials indicate that dividing the profits with the KIB actually is increasing costs to the community, as prices have to be significantly increased to operate at an acceptable margin. The followinq table summarizes the financial amendments to the contract Current Contract Proposed Contract KIB purchased $150,000 in equipment each KIB will give Providence $150,000 to purchase year and K@Et title. new equipment each year. KIB retained half of net income (including Providence will keep all income. depreciation on capital assets) less capital Providence will spend 50%, up to $200,000, of expenditures. If an asset is purchased and the previous year's income on equipment to be then depreciated it is a capital expenditure. used at the Kodiak Hospital. Providence had to leave a like amount of KIB will give all operating supplies to operating supplies when they left the Providence. .Hospital. $277,000 Lease payments of $720,000 per year. Lease payments of $720,000 per year. Providence provided an initial down payment of $2,000,000 for construction of new facility. FISCAL NOTES: ACCOUNT NO.: ® N/A Expenditure Amount Required: Budgete APPROVAL FOR AGENDA: The motion before the Assembly is to approve Contract No. 97-07B with Providence Health System - Washington d/b/a Providence Health System in Alaska. C 113 1 /zolos AMENDED AND RESTATED LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as "KIB"), and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non-profit corporation (hereinafter referred to as "Providence"). WITNESSETH: WHEREAS, KIB is the owner of certain real property consisting of a Health Care Facility together with improvements located thereon, and certain Equipment located in and about the Premises known as Kodiak Island Hospital and Care Center, (hereinafter referred to as "Hospital"); WHEREAS, the KIB, in the interest of sound fiscal management and to ensure the continued operation of the Hospital in a professional and efficient manner, has requested Providence to lease and operate the Hospital; WHEREAS, Providence owns and operates a number of health care facilities, that are operated in keeping with its philosophy, mission and values; and WHEREAS, Providence desires to lease the Premises and the Equipment from KIB, subject to the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows: 1. AGREEMENT TO LEASE: KIB agrees to lease to Providence and Providence agrees to take from KIB, the Premises and Equipment described herein, for the term and upon the terms and conditions set forth in this Agreement. 2. PREMISES: The real estate which is the subject matter of this Agreement is described as follows: Lot Two -A (2-A) Hospital Subdivision according to Plat 95-03, located in the Kodiak Recording District, Third Judicial District, State of Alaska. Including all buildings appurtenances, and improvements thereto, (herein referred to as `Premises"). Notwithstanding anything to the contrary, Providence recognizes and acknowledges that KIB may lease space to other entities contingent upon available space and advance approval from Providence.. 3.1 EQUIPMENT: The Equipment which is the subject matter of this Agreement is all of the Equipment presently located in or on the Premises, in an "as is" condition, at the inception of this Lease Agreement and all Equipment subsequently acquired directly by the KIB. 3.2 NEW AND REPLACEMENT EQUIPMENT: The KIB agrees to budget a minimum of $150,000 each year effective for the KIB fiscal year beginning July 1, 2005, for purchase or lease purchase of new and replacement Equipment for use in the Hospital for the depreciable life of the equipment unless otherwise approved by KIB. This contribution will be paid to Providence on or before January 31 of each calendar year of the Agreement. Providence will place these funds in a Funded Depreciation account for the sole purpose of purchasing or lease purchasing new and replacement equipment for the Hospital. New and replacement equipment will remain on the balance sheet of Providence for the duration of the Lease Agreement. Providence, at the termination or expiration of this Agreement, including Agreement extensions, will transfer assets in an amount equal to the estimated book value of equipment(Exhibit D) purchased with KIB contributions based upon an average useful life of 5 years. 3.3 ADDITIONAL EQUIPMENT: Providence may purchase additional equipment to be used in the maintenance or improvement of the Hospital's operations. Such additional equipment shall be Providence's property, and shall be tagged as such. Upon termination or expiration of this Agreement, KIB may purchase any items of equipment used in the Hospital and paid for by Providence. The purchase price shall be Providence's book value of the acquired equipment. Minor equipment previously expensed by Providence and equipment and furnishings purchased by Providence with no book value shall be contributed to the KIB at the termination or expiration of this Agreement. Any equipment or personal property which belongs to Providence and is not purchased by KIB may be removed by Providence after the termination or expiration of this Agreement. 4.1 TERM OF AGREEMENT: The Premises and Equipment shall be leased to Providence by KIB for a term of ten (10) years, commencing on April 21, 1997, through and including April 20, 2007, unless sooner terminated as hereinafter provided. 4.2 ADDITIONAL TERM: Provided that Providence is not in default under this Lease Agreement, Providence shall have the option to extend this Lease Agreement for one additional term of ten (10) years by providing KIB with 180 days prior written notice. The extended term shall be on the same terms and conditions of this Lease Agreement, or as such terms and conditions are modified upon mutual written agreement of both parties, with monthly lease payments to be established by negotiation. 4.3 SURRENDER OF PREMISES: At the expiration of the term of this agreement or upon the termination of this agreement as provided for herein, Providence shall surrender possession of the Premises and Equipment to KIB as set forth under the terms of this Agreement. 5.1 FIRST RIGHT TO PURCHASE: KIB hereby gives and grants to Providence the first right to purchase all of KIB's interest in the Hospital, Premises, and Equipment at any time from the date of this Agreement until the termination of this Agreement as provided for herein. Said right of first refusal shall include space leased from KIB by other entities. KIB shall make any sale of said interest in the Hospital, Premises and Equipment between KIB and a third party conditioned upon and subject to Providence's first right to purchase as set out herein, including but not limited to space under Lease between KIB and other entities. Providence shall have the right to accept the purchase price and the terms of the intended sale to the third party as the terms and conditions of the sale between KIB and Providence. 2 C^Aza /997- o 76 RENEWAL OF LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the Kodiak Island Borough a municipal corporation of the State of Alaska ("KIB") and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non- profit corporation ("Providence"). RECITALS The parties confirm: a. They entered into an amended and restated lease agreement which commenced on April 21, 1997 and is to end on April 20, 2007, by which Providence leased the premises described as: Lot Two -A (2-A) Hospital Subdivision according to Plat 95-03, located in the Kodiak Recording District, Third Judicial District, State of Alaska. b. They desire to renew the term of that lease agreement. C. They have agreed that there will be no increase in the monthly lease payments and that the lease agreement shall be modified to reduce Kodiak Island Borough's annual equipment contribution from $150,000 to $108,000 effective in the KIB fiscal year beginning July 1, 2007 and thereafter; and In consideration of the mutual covenants contained in this agreement, the parties agree as follows: (1) The execution of this agreement shall constitute a renewal of the basic lease agreement between the parties (excluding, however, the right to renew in paragraph 4.2) with no increase in the monthly lease payments and shall extend the termination date to April 20, 2017. (2) Paragraphs 3.2 and 20.2 of the lease agreement between the parties are amended as follows: 3.2 NEW AND REPLACEMENT EQUIPMENT: The KIB agrees to budget a minimum of $108,000 each year effective for the KIB fiscal year beginning July 1, 2007, for purchase or lease purchase of new and replacement Equipment for use in the Hospital for the depreciable life of the equipment unless otherwise approved by KIB. This contribution will be paid to Providence on or before January 31 of each calendar year of the Agreement. Providence will place these funds in a Funded Depreciation account for the sole purpose of purchasing or lease purchasing new and Renewal of Lease Agreement — p. 1 of 4 replacement equipment for the Hospital. New and replacement equipment will remain on the balance sheet of Providence for the duration of the Lease Agreement. Providence, at the termination or expiration of this Agreement, including Agreement extensions, will transfer assets in an amount equal to the estimated book value of equipment (Exhibit D) purchased with KIB contributions based upon an average useful life of 5 years. 20.2 DEPRECIABLE CAPITAL ASSETS: KIB shall provide and pay for depreciable capital assets, mutually agreed to by KIB and Providence, including the cost of building components, land improvements, fixed equipment and building services equipment with useful lives of 10 years or more as defined by the latest edition of the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets (Exhibit C). Providence shall provide and pay for depreciable capital assets with useful lives of 9 years or less as defined by the American Hospital Association's Estimated Useful Lives of Depreciable Hospital Assets. The Section 3.2 $108,000 equipment contribution will not be used to purchase these assets. (3) Exhibit D to the lease agreement is amended consistent with the aforementioned amendments to Paragraphs 3.2 and 20.2. A copy of the amended Exhibit D is attached hereto. (4) Nothing in this agreement shall operate to discharge or release Providence or its assigns from the duty and obligation to perform each of the terms and conditions of the original lease. In witness, each party has caused it to be executed on the date indicated below. Kodiak Island Borough By: Rick Gifford, Its ag 1;0&� Nova Javier, Oorough Clerk Renewal of Lease Agreement — p. 2 of 4 Providence Health System - Washington d/b/a Providence Health System in Alaska By: efExecutive h, Its Regional Vice President and STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) On this day personally appeared before me Rick Gifford, to me known to be the person who signed as the Manager of the Kodiak Island Borough, an Alaska municipal corporation and acknowledged that he was duly authorized to execute said instrument as the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned. y hand and official seal this day of , 2007. ! _ NOTAR BLIC for pe State of Alaska '•.•pUBL�C; � My commission exp' s: '?/-X 20i0 ��� ) ss. it ft'6AL DISTRICT ) On this day personally appeared before me E. A. Parrish, to me known to be the Regional Vice President and Chief Executive of Providence Health System - Washington d/b/a Providence Health System in Alaska the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute said instrument on behalf of said corporation. n GIVEN NMt' apd and officialseal V • ''".., .,,. .99'/ +Irl �fn NpTgq '. y '. ZJ800�I '4 3� •'•F OF AL�,�'' ruenMy ci Renewal of�'�L' %'XgW" et — p. 3 of 4 Y of Y -PUBLIC for the Stat of Naska mission expires: d 7. EXHIBIT D to Renewal of Lease Agreement Estimated Book Value of KIB Contributions KIB Contributions to Providence Estimation of Book Value at Expiration/Termination of Lease Book Value at the End of Five Years Year 1 Year 2 Year 3 Year 4 Year 5 Total Yearly Contribution $108,000 $108,000 $108,000 $108,000 $108,000 $540,000 Esimated Depreciation Year 1 $21,600 $21,600 Year 2 $21,600 $21,600 $43,200 Year 3 $21,600 $21,600 $21,600 $64,800 Year $21,600 $21,600 $21,600 $21,600 $86,400 Year 5 $21,600 $21,600 $21,600 $21,600 $21,600 $108,000 Year 6 Year 7 Year 8 Year 9 Year 10 Book Value $0 $21,600 $43,200 $64,800 $86,400 $216,000 Assumptions: Useful Life of Equipment 5 Renewal of Lease Agreement - p. 4 of 4 RENEWAL OF LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the Kodiak Island Borough a municipal corporation of the State of Alaska ("KIB") and Providence Health System - Washington d/b/a Providence Health System in Alaska, a Washington non- profit corporation ("Providence"). RECITALS The parties confirm: a. They entered into a lease agreement which commenced on January 2, 1998 and is to end on April 20, 2007, by which Providence leased the premises described as: That certain office space located in various buildings located on Lot 5AAA, Military Reserve, U.S. Survey 2538 according to plat 95-04 recorded in the Kodiak Recording District, Third Judicial District, State of Alaska, and more particularly described below. 714 Eagan Way, Kodiak Island Borough Mental Health Offices and Dorm Building Apartments A through G. li. Partial Use of 716 Eagan Way, Kodiak Island Borough Mental Health boiler room. iii. 718 Eagan Way, Kodiak Island Borough Mental Health Offices and Dorm Building Apartments H through M. b. They desire to renew the term of that lease agreement. In consideration of the mutual covenants contained in this agreement, the parties agree as follows: 1. The execution of this agreement shall constitute a renewal of the basic lease agreement between the parties (excluding, however, the right to renew in paragraph 4.2) and shall extend the termination date to April 20, 2017. 2. Nothing in this agreement shall operate to discharge or release Providence or its assigns from the duty and obligation to perform each of the terms and conditions of the original lease. In witness, each party has caused it to be executed on the date indicated below. ATTE T: ` Nova Javier, ugh Clerk Kodiak Island Borough By: Rick GIfford, It anager �r Providence Health System - Washington d/b/a Providence Health System In Alaska By: E. AtEaMsh, Its Regional Vice President and Chief Executive STATE OF ALASKA } )ss. THIRD JUDICIAL DISTRICT ) On this day personally appeared before me Rick Gifford, to me known to be the person who signed as the Manager of the Kodiak Island Borough, an Alaska municipal corporation and acknowledged that he was duly authorized to execute said Instrument as the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned. urllfa�Wnder my hand and official seal this��day of '2007. aoTAAr'; o -.0 4Z NOTARY LIC for th tat of Alaska My commission expires AN Renewal of Lease Agreement - Page 2 of 3 STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT } On this day personally appeared before me E. A. Parrish, to me known to be the Regional Vice President and Chief Executive of Providence Health System - Washington d/b/a Providence Health System in Alaska the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute said instrument on behalf of said corporation. GIVEN under my hand and offici I eal th s day o 007. -.gCNNA g ,,�� P iA0TARy �•�. TAR PUBLIC for the Stateof Alaska pU1300 E My commission expires: /v �•P O �•��; 0� F .���F A• = 4702/961 PKICC IeaselRenewal Agreement 111'0017 '10 j a Renewal of Lease Agreement - Page 3 of 3 M1 -61b-1 THIS AMENDMENT NO. 1 TO LEASE AGREEMENT ("Amendment") is entered into as of April 21, 2017, by and between Providence Health & Services -Washington (formerly known as Providence Health System -Washington) dba Providence Kodiak Island Medical Center ("Providence"), and Kodiak Island Borough ("Landlord"). Providence and Landlord are sometimes referred to in this Amendment as a "Party" or, collectively, as the "Parties." RECITALS A. Providence and Landlord entered into that certain Lease Agreement dated April 21, 1997, and amended and restated on April 21, 2007 ("Lease") pursuant to which Providence leased certain space from Landlord. B. The parties are actively negotiating a renewal of the lease for an additional 10 year term, but have yet to finalize a new lease agreement. C. The Parties wish to extend the term of the Lease for a period of up to three months through July 20, 2017 to allow the parties additional time to complete and execute a new lease agreement. D. If a new lease agreement is completed and executed prior to July 20, 2017, the current lease agreement will end and be replaced by the new lease agreement at that time. AMENDMENT THE PARTIES AGREE AS FOLLOWS: 1. Extension of Term. Subject to the Parties' respective termination rights as set forth in the Lease, the term of the Lease is hereby extended through the earlier of either the date of completion and execution of a new lease agreement or July 20, 2017. 2. Capitalized Terms. All capitalized terms in this Amendment shall have the same meaning given to such terms in the Lease unless otherwise specified in this Amendment. 3. Continuation of Lease. Except as specifically amended pursuant to the foregoing, the Lease shall continue in full force and effect in accordance with the terms in existence as of the date of this Amendment. After the date of this Amendment, any reference to the Lease shall mean the Lease as amended by this Amendment. The Parties have executed this Amendment on the date first above written. PROVIDENCE Providence Health & Services - Washington dba Prroovild1e�nce K diak Island Medical Center By: I Bruce Lam u ux Its SVP and Alaska Region Chief Executive LANDLORD Kodiak Island Borough By: ( Z,% Michael Powers ANO eLI 0� ATTEST: Q O G1 ,Nova Zvier, Bor gh Clerk �!SkA aachNocese of anchoaace m ce.eera sweat • anmasre. awta e1i�OtaeOe 90 V*7$n • Fm- W479%WN September 9. 1996 Office of it* Arcbbiehop Mr. Douglas Bruce Administrator Providence Alaska Medical Center 3200 Providence Drive P.O. Bo% 196604 Anchorage. AK 99519-6604 Dear Mr. Bruce. Tna ,nitiotive of Providence Alaska Mac operating agreement with small Alaskan r of providing better health care for more without question is fully Consistent with Church and the Sisters of Providence to spiritual needs of people. ical Center to enter into an ural communities for the purpuae people is one that i applaud. It the cemmltment of the Catholk meet the human as well as the From my own observation of with the health care available In the smatter communities of Southeentral Alaska, I know how much the people strongly desire that more medical services be more readily available to them locally. Local communities can not meet the escalating costs of medical equipment and care. The people are often prevented from traveling to medical centyrs in Anchorage because of distance and weather. In addition to that. It Is the desire of patlents to be close to their famiitca. friends and ministers at the time of Illness. The operating agrsoment being developed by the City of Kodiak and by Providence Alaska NWdkal Cantor will alleviate these ditticultles. The plan is. if you will allow a play on words. providential. Forging operating agreements presents sant difficulties in communities where there are many varied and at toes conflicting attitudes and convictions about what medical practices are morally permissible. The guidelines utilised for Catholic health care systems are contained In tho Fthiral and Rel' jou Directives for Health Services Of the Catholic Bishops of Chs Unkid 1States• "1'tlle��ity o faTc has standards for Kodiak taocpito. Vou have Indicated that the City of Kodiak deems it necessary that their long standing practice of elective sterilization be Continued. As you know this practice is not within the bireeUveS. You ask if it would be within the parameters of the Catholic teaching fbr Providence Medical Center to tolerate the continuance of that practice within the riry of Kodiak 88 part of the a9 September 9, 1996 Page i I take note of an important factor. hospital. The operating lease does accepted terms of the lease Identify allow both Providence and the City Commitments. Kodiak Hospital remains a community not change that. Tho mutually :he principles and practices that will of Kodiak to be faithful to their n this Context 1 make an observation about moral decisions. Moral decigion5 are generally not made by the application of only one principle. Rather, several principles must be recognized and brought into harmony. In this instance the principle of cooperation may be brought Into play with our principles relative to life and respect for the human body. Within the principle of cooperation *and under certain conditions and circumstances it Is permissible that one may cooperate materially, In an action of another that is contrary to one's convictions. in MY lodgment the principle of material cooperation does apply in the situation that prevails in Kodiak. Kodiak Hospital remains a community hospital. The operating agetoment with Providence Alaska Medical Center does not transform It Into a Catholic Hospital. Rather Kodiak Hospital remains a rre;munity hospital of the City of Kodiak. The mutually acCepised terns of agreement define the practices that will be permitted. The material cooperation the sterilisation in no way Implies approval of the procedure by Providence. i hope that the arrangement with the City of Kodiak comes to completion. l know the community wall. 1 was personally involved in working out an agreement with the adieinistraters of the City for the establishieent of Brviher Francis Shelter - Kodiak. God bless. Sincerely in Christ. •Franck T. Hurley Archbishop of Anchorage TOTAL P.03 EXHIBIT C EQUIPMENT LIST =.rF ED CF FIXED ASSES i• +,OEM= mm�mmm� NEED= 24 -Feb -97 New Capital DEPRE DEPRECIATION SCHEDULES Depreciation Monthly Depreciation YTD Accumulated Book Value FOR YEAR ENDI (FORMULA) (FORMULA) (FORMULA) (FORMULA) (FORMULA) Depreciation (CoN-Salvage) (Boo Depr.* (Sum of each (Beg D.. epr (Cwm t-Acou. BUILDING: /Life/12 YTD DW.) month detail) YTD Deer.) Dapr.) B%Adkp improvemer" 1991 Acclualkson Useful Acquisition pepracNam Monthly Depreciation YTD Accumulated Book Value And Cost life Date End Date Depreciation YTD 6/3096 Depreciation Depreciation RemarJrp No. Description 72391 72311 0.93 3.33 55.34 191.03 11.16 39.96 CT Stan Building 135,O00.OD 30 31591 31521 375.00 23,812.50 4,500.00 28,312.50 106,687.50 TOTAL BUILDING $135,000.00 $375.00 _-$23,612_50 - $4,500_00 - $28,31250 --- $106,687.50 Building imprmismrds 1992 -Rin eeauesasa:. ---- 15 120192 120107 15.37 BUILDING IMPROVEMENTS 0.00 0.00 0.00 0.00 0.00 ---- --- ----- ------ TOTAL LAND IMPROVEMENTS $0.00 $0.00 $0.00 $0.00 $0.00 $0,00 Acquisition Ueslul Acquiulbn Depreciation Monthly Depreciation YTD Accumulated Book Value And Cod Lila Data End Date Depreciation YTD 6/30/96 Depreciation Depreciation Remakuig No. Description - B%Adkp improvemer" 1991 335.34 5 61591 61596 5.03 304.32 31.02 335.34 0.00 Buildfp kriprovrrrnts 1991 246.94 20 72391 72311 0.93 3.33 55.34 191.03 11.16 39.96 66.50 230.99 180.44 43401 Building; klprovpnerlM 1991 8:%.00 15 9591 91192 959506 91107 4.89 222.50 58.68 281.18 598.82 Building imprmismrds 1992 -Rin 880.00 15 120192 120107 15.37 660.91 184.44 845.35 1,921.61 Btlildkg luproyrmrile 1982 2,766.96 15 122192 122107 6.51 276.68 76.12 354.80 817.75 Building krpreyen srlls 1992 1,172.55 788.07 15 10 21583 21503 6.57 266.09 78.84 344.93 443.14 BWk6g improvements 19934Car 5 22293 22298 5.48 216.46 65.76 282.22 46.78 BumM Improvements 1993 -Car 329.00 1,606.89 10 30794 30704 13.39 374.92 160.68 535.60 1,071.29 BtWOkg krp vnww" 1994 780.00 5 30794 30799 13.00 364.00 156.00 520.00 260.00 SukWV improvements 1994 21.64 584.28 259.66 843.96 3,050.79 Buydirill Improvements 1994 3,894.75 15 3 40494 40894 40409 40897 91.08 2,459.16 819.82 3,278.98 0.00 Bukkg kmplievernairds 1994 3,276.96 5,028.16 15 41194 41108 27.93 754.11 335.16 1,089.27 3,930.00 Buydiv 1994 2.641.85 3 41594 41007 73.38 1,981.26 660.39 2,641.65 0.00 BWldkg improvements 1994 2,969,00 3 41594 41597 82.47 2,226.00 742.31 2,900.00 0.00 B kWeywnsrft 1994 1,900.00 15 51294 51208 10.56 264.00 126.72 390.72 1,509.28 BWMWg lmprpysmriy/994 2,472.40 3 51004 51007 68.68 1,717.00 755.40 2,472.40 0.00 Buildtg krprovarnente 1994 2,606.11 10 100394 100304 23.38 490.98 280.56 771.54 2,034.57 BWMkg knWwjwn ft 1994 OR 2,720.06 15 91195 91110 15.11 143.55 181.32 32487 2,395.49 BuMV krprove rents 199543rt 1,428.07 20 110695 110615 5.94 47.52 71.28 118.80 1,307.27 BWWM knprewnrrKs 1995 -Boil 1,415.00 20 10898 10816 5.90 35.40 70.80 106.20 1,308.80 BuiMkg MnpraneGrmaraPor Pum 2,017.50 10 71096 71006 16.81 0.00 201.72 201.72 1,815.78 BwWft knprove-Rod Repair TOTAL BUILDING IMPROVEMENTS $42,140.43 $13,636.20 $5_300_82 $19_006.02 $23,134.41 __$517_38 -__-_ LAND IMPROVEMENTS: Acquisition Useful Acquisition Depreciation Monthly Depreciation YTD Accumulated Book Value Assel Cod Life Date End Date Depreciation YTD 6/30/96 Depreciation Depreciation Remaining No. Desuiption 0.00 0.00 0.00 0.00 0.00 ---- --- ----- ------ TOTAL LAND IMPROVEMENTS $0.00 $0.00 $0.00 $0.00 $0.00 $0,00 AUTOMOBILE: Mat Acquisition Use1W Acquisition Depreciation Monthly Depreciation YTD Accumulated Book Value No. Description Coat Lib Data End Dab Depreciation YTD WOW Depreciation Depreciation RemwnuV --_- F. Fuller Van 73,085.00 4 41891 41895 1,370.53 $73,095.00 $0.00 $73,095.00 $0.00 Ford Tempo 199D -Bronze 5,600.00 4 30293 30296 116.67 $4,750.14 $849.86 $5,600.00 $0,00 Ford F150 Plckup•19968ku 22,500.00 4 112795 112799 468.75 $3,515.63 $5,625.00 $9,140.63 $13,359.37 Ford Escort4Dr-Green-VINL3F 6,150.00 4 92396 92300 126.04 WOO $1,134.36 $1,134.36 $4,915.64 Ford EaM-40r-GreyVINN31FA 6,050.00 4 92396 92300 126.04 ---- $0.00 $1.134.36 -- $1,134.36 $4,915.64 ToW ardarwbtes $113.296.00 $2.208.03 $81,360.77 $8 ,743.58 $90.104.35 $23,190.65 ----------- FIXED EQUIPMENT: Mat Ac*&Wbm UseM Acquisition Depreciation Monthly Depreciation YTD AccumWated Book Vakn No. Description Cat Lib Date End Data Depreciation YTD 6130196 Depreciation Depreciation Remaining ----_4,464.82 Electric BONK 5,972.80 20 111391 111311 22.40 1,239.18 268.80 1,507.98 See 330 aWArd ICOM VHF 8,843.68 10 21593 21503 72.03 2,917.22 864.36 3,781.58 4,862.10 Generator Mincer Owrhdl 1,848.56 10 60793 60703 15.40 569.80 184.80 754.60 1,093.96 TOTAL FIXED EQUIPMENT $109.83 $4,726.20 $1,317.96 $6,044.16 $10,420.86 $16,465.04 Fiord Operations :scszxs Mire$ Acquisition UseU Acquisition Depreciation Monthly Depreciation YTD Accumulated Book Vakie No. Dascrom Cost Lite Date " End Date Depreciation YTD 6f30196 Depreciation Depreciation Remaotrp Electronic Combistm Tester $723.85 10 100291 100201 5.43 $309.51 65.16 $374.67 $348.18 40340526 LWATW oxer $550.00 5 81192 81197 9.17 $426.41 110.04 $536.45 $13.55 SP Monitor Tater; Printer $4,840.08 5 10494 10499 80.67 $2,420.10 968.04 $3,388.14 $1,451.94 Boiler Fust Fier Houstrl8 913.72 5 21297 21202 $15.23 $0.00 76.15 $76.15 $837.57 100 Gal Fust ON Taft 550.00 20 21297 21217 $2.29 $0.00 11.45 $1145 $538.55 AGWTrah Cyn 1,318.34 5 21297 21202 $21.97 $0.00 109.85 $109.85 $1,208.49 AWologn 2,242.50 5 21297 21202 $37.38 $0.00 186.90 $186.90 $2,055.60 TotalPlant Operations �___ $11,138.49 ._• -•--- $172.13 '---- $3,156.02 --------- $1,527.59 ----------- $4,683.61 ----------- ------_Total $6,454.88 zzzz¢zaaacszz zzzzzzzzo=czz zzzzzcczzzzzz zz¢_=cazzz¢z _____________ _________zz Hwisekeeping zscczzcsszzz Assist Acquisition UeetW Acquisition Depreciation Monthly Depreciation YTD Accumulated book Value No. Description Cast Life Dye EM Date Depreciation YTD 613086 Depreciation Depreciation Remarntny Total Hou akeepkp Laundry 8 Linen suss==es=aesee Anat Ila. Daaaip8on Linan Crb Mule) Purpose Carte Linn Service Truck sm DBC Carts WrAver Tool Laundry 8 Lkrn wbry ssseeex +•- $10.59 Anel Ila. Descriplian -4050594 Reach -in frester SN223692T 403-0516 Dartos convadton own 4034525 DAplry Caw 61092 Steam TOW (FSA}Catakom 5 Food Warmers Depreciation Remodel Old Sleam TOW Depreciation Wallt-M Coder Repair Accumulated Food Warmers 403-0610 We Machine 4050873 Fond Chopper -Robot Coupe Depreciation Food Orb $1,905.76 15 $1,905.76 esasssaa:.:.: Acquadi Coo Lib Date 9,051.57 10 1,580.00 10 1,425.00 10 350.0 10 $12,366.57 useesesusas 307943D409 10.59 $296.06 127.08 $42314 $1,482.62 non Useful +•- $10.59 $296.06 --$127.08 $423.14 -------$1,482.62 10 82291 $7,850.00 10 61092 $1.587.33 5 62082 Depreciation Monthly Depreciation YTD Accumulated Book Value $511.68 End Deb Depreciation YTD 6/30!96 Depreciation Deprecldkn RenwNmp 21297 21207 $75.43 $0.00 377.15 $377.15 `$8,674A2 21297 21207 $13.00 $0.00 65.00 $65.00 $1,495.00 21297 21207 $11.88 $0.00 59.40 $59.40 $1.365.60 21297 21207 $2.92 $0.00 14.60 $14.60 $335.40 Acquisnon Useful Acquwlton coat Lie Date $3,127.63 10 82291 $7,850.00 10 61092 $1.587.33 5 62082 $594.00 10 51694 $400.00 10 50195 $511.68 10 51595 1,075.10 15 63095 407.04 10 70395 1,738.19 10 51396 761.30 10 21097 1,136.41 10 21297 $103.22 ` $0.00 $516.15 $516.15 ------$11,870.42 xecxeeeee=see =x xxxxeee== ___====eeeexx Depreciation Monthly Depreci d m Y7D Accumulated End Date Depreciation YTD 6/30M Depreciation Depreciation 82201 23.46 1372.41 281.52 1653.93 81002 63.75 3091.68 765.00 3856.88 62097 26.48 1283.31 304.02 1587.33 51604 4.95 123.75 59A0 183.15 50105 3.33 46.62 39.96 86.58 51505 4.26 55.38 51.12 106.50 83010 5.97 71.64 71.64 143.28 70305 3.39 40.68 40.68 81.36 51306 14.48 14.48 173.76 188.24 21007 6.34 --0.00 31.70 - 31.70 21207 $9.47 $0.00 47.35 $47.35 Book Value Remaureng ------_. 1473.70 3793.12 0.00 410.85 31342 405.18 931.82 325.68 1549.95 729.60 $1,089.06 --'-'-'- --_'_---""-"'-- --------- TaW Dktry ary $18,988.68 $165.87 $6,100.15 $1,886.15 $7,986.30 $11,022.36 eee:ee:e:e::e exxxxeeeeeexe xxexxeeexxe=: xxeeexxxxxx=e e=_ Adn vWatrA a CIWWW esassea Ased No. 008""M Spo dnaOlfice•Med Epp Radio Telphone SYatem PC CaMulaa w/opllote Fax Mechem Fax Mod" UPlop MbuW Computer PC 403.0631/40 CompukerffawfModarn Token RkV Ad•Plar Cards Sed - CkIW Site mkrowwm SoBwwre-WP OmVrawr4alion 103-06284O AppleCmr*uW Equip Olks Equip -HDI 403.0656 HP -950 Plain Paper Fax Medline Handheld Rediae 5edln✓twtMY F"whwre111Hadh Extwatae GO MY Retrld W8fAm Chore t Workstations Wodo Cane TV MorAor Reca wr Copy SII/ COW- 0187 Copy SN8 OKU-020615 Copier SNY OKU4 20984 Copal SNY OKU-020071 Copy SNM 791430650 Remote COW SOCuM Cates Ka$icard TWO Cham W/Arms 8 Stools Micoarwe WAMdennond Micaawe WAIndermaat Microvnve VCR - Pardeorllc VCR - Perdeonao VCR -Panasonic VCR - Pen c= VCR - PwOWk VCR - Pamwor c VCR - Pardwnae Furn"O Trial Admina negra ive 6 General Medical Records s�caccc=eoe=ecce $173,791.92 _ $1,877.86 $28,033.58 $14,257.72 Y12,291.30 131,500. 62 3 C S i DepneCk15on Monthly Depreciation YTD Accumulated Book Value Acqueffion Useful Acquisition End Date Depreciatm YTD 6/30/95 Depreciation Depreciation Remwwv Cost Lde Date 72992 72902 76.56 3636.60 916.72 4555.32 4,63201 9,187.33 10 72202 126.37 6002.58 1516.44 7519.02 7,644.98 15,164.00 15 72292 91897 168.00 7644.00 2016.00 9860.00 420.00 10,08D.00 91892 101995 37.49 1349.61 0.00 1349.61 0.00 1,349.61 599.98 3 3 101992 120992 120995 16.67 599.96 0.00 380.04 599.96 1808.00 0.00 94.00 1,90DAD 5 100792 100797 31.67 33.67 1425.96 1026.94 404.04 1430.98 589.02 2.02D.OD 5 122093 122098 10499 12.36 370.80 148.32 519.12 222.33 711.45 5 10494 11509 3.71 109.45 44.52 153.97 514.03 868.00 15 11894 22199 10.0D 285.00 120.00 405.00 194.99 699.99 5 22194 62899 119.5 2901.29 1432.20 4333.49 2,827.24 7,190.73 5 62894 100399 49.63 1038.58 595.56 1634.14 1,343.48 2,977.80 5 100394 1010099 700.04 399V8 1511804 827.62 2,OOD.00 5 101094 102404 16.22 324.40 194.6433.33 1.4,02 1,848.88 10 102494 32798 25.46 381.90 305.52 687.42 229.02 916.44 3 32795 101600 27.82 236.47 333.84 570.31 1,08909 1,889.40 5 101695 21207 $134.09 50.00 680.50$80.50 70.45 $670.45$$5.851.72 ,420 16,091.00 10 21297 21207 $16.10 $0.00 1,93222 10 21297 21207 $38.04 $0.00 190.20 $190.20 $4,374.32 4,584.52 10 21297 21207 $14.53 89.00 72.65 $72.65 $1,67075 1,743.40 10 21297 21202 $$47.67 $0.00 773.35 $7735 $8,506.65 9,280.00 5 21297 21202 $47.06 $0'00 235A0 $235.40 $2.5N.W 2,825.00 5 21297 21202 $47.08 �.� 235.40 $23540 $2,509.60 2,825.00 5 21297 21202 $47.06 $0.00 25.40 $235.40 $2,589.60 2,825.00 5 21297 21202 $0.00 25.40 $25.40 $2.588.80 2,825.00 5 21297 21202 179$47.89 $1$6.50 $0.00 897.50 $897.50 $9,872.50 10,770.00 5 21297 21297 21202 $6.77 $000 33.85 $33.85 $49.65 $372.55 $1,142.5 408,40 1,192.00 5 10 21297 21207 $9.93 $0.00 �'� 49.�r 14.10 $14.10 $492.90 510700 15 21297 21212 $2.82 $3.93 $0.00 19.65 $1965 $216.5 235.00 5 21297 21202 $4.25 19.65 $19.65 $2185 238.00 5 21297 21202 $'t'S $000 � � 21.25 $21.25 $233.75 255.00 5 21297 21202 $427 $0.00 21.5 $21.5 $234.55 256.00 5 21297 21202 $4.27 �.� 21.35 $21.5 $234.65 256.00 5 21297 21202 $4.27 x0.00$2135 21.5 $21.5 $234.65 256.00 5 21297 21297 21202 21202 $4.27 $O.00 2135 $2135 $23C65 $23465 258.00 256.00 5 5 21297 21202 $4.27 $0'00 s.00$234.65 21.5 21.5 $21.35 $231.65 258.00 5 21297 21202 $4'27 x'27 $0.00 $21.5 $234.65 2556.00 5 21297 21202 $302.81 $000 1,514.05 $1,514.05 $52,991.16 54,505.21 15 21297 21212 $173,791.92 _ $1,877.86 $28,033.58 $14,257.72 Y12,291.30 131,500. 62 3 C S i Aeest NO. Description File Cabinet ComgNr 8 equip 403-0517 Lamar Printer HP4L swft - Spacesawr 403.0632 Dictation Sys{Vaiwaad 800) Spanner Synctm RG4AA Syd FwJCopier TaW Method nal Records Library d Dr Lm" And NO. Description Total Library ary 6 burps uacp a Aeset NO. Description Modwn 6 D" Upgrade Tool PurGa hmft Business Office xszaxx_ zxxxxxx Asset NO. Description 403-0533/40 computers 4asmo Mattern 4034)531/40 Fib Cabinets AcQuisdm Useful Acquisition Cod Lila Date 834.77 15 51391 5,997.00 5 72391 750.00 5 122793 909.89 20 91994 12,500.54 5 110894 35,749.84 20 21297 1,895.00 5 21297 $58.836.84 axxsaauass:z Acquisition UseU Acquisition cwt Life Date Depreciation Mor" Depreciation Enol Dab Depreciation YTD &30/96 51306 $4.17 $256.54 72396 $69.96 $5.352.62 122798 $12.50 $381.25 91914 $3.79 $79.59 110899 $206.34 $4,096.96 21217 $146.96 $0.00 21202 $31.58 $0.00 YTD Accumulated Book Value Depreciation -_- Depreciation Remaining 50.04 $308.58 _-- $528.19 644.38 $5,997.00 $0.00 15000 $531.25 $218.75 45.48 $125.07 $784.62 2,500.08 $6.599.06 $5,901.48 744.80 $744.80 $35,005.04 157.90 $157.90 $1,737.10 ----'___'------ $499.30 $10,170.95 $4,292.68 $14,463.66 $44,173.18 Depredation Monthly Depreciation YTD Acwnulated Book Vatw End Dab Depredation YTD 6MOM Depreciation Depreciation Remam ng ---"'----- $0.00 $0.00 f0.00 $0.00 $0.00 $0.00 zzzxxxxasaax ____________ Acqugition Ueslul Acqumdm Depreciation M��Ny Depreciation�ec�on YTD AccumWaleo Book Vabe Cwt Lib Date End Date Deprecation Depreciation Remaining --_-- ---_____ -. 595.00 5 120693 120698 $9.92 $307.52 119.04 $426.56 $168.44 x.00 $9.92 $307.52 $119.04 $426.56 $168.44 Acquisition Useful Acquisition Depreciation Mon"* Depreciation YTD Accumulaled Book Value coat Uro Dab End Data Depreciation YTD 6/30/96 Depreciation Depredation Remairilnp - ' 3,563.75 5 122093 122096 $59.40 $1,611.70 712.80 $2,524.50 $1,039.25 835.60 15 21494 21409 $3.53 $100.61 42.36 $142.97 $492.83 file Cabinsts Office Fumikre 403.0537/40 Computer 4111110X/0 w/Lan card FwJCopiw Tolei Buswu nen Office Mwinger wM Information System 728.98 995.15 2,140.00 1.895.00 $9,958.88 ssswuuuss 15 41894 41809 $4.05 15 81094 81009 $5.53 5 90294 90299 $35.67 5 21297 21202 $31.58 $105.30 $127.19 $784.74 $0.00 48.60 $153.90 $575.08 66.36 $193.55 $801.80 428.04 $1,212.78 $927.22 157.90 $157.90 $1,737.10 $139.76 $2,929.54 $1,456.06 $4,385.80 $5,573.08 ______ _____________ _____________ __====s=ssss. s=s===ss=== And Acqustlen U"U Aequalion Dapree bon Mornay Depreciation YTD AccumWated Book Value No. Description Cwt Life Dole End Date Depreciation YTD 6/,40196 Depreciation Deprecation Remanin9 Taken Ring Cards 748.80 5 31395 31300 $12.48 $187.20 149.76 $336.96 ---------- $111.84 403-0557/40 PC Systems 40BDX2/86 3,625.00 5 31395 31300 $60.42 $906.30 725.04 $1.631.34 $1,993.66 WordPartxt 6.0 So0wre 423.00 5 32795 32700 $7.05 $105.75 84.60 $190.35 $232.65 Lotus 2.4 SoBwre 234.00 5 40395 40300 $3.90 $58.50 46.80 $105.30 $128.70 Computer Systems 6 Software 4,290.05 5 50195 50100 $71.50 $1,001.00 858.00 $1,859.00 $2,431.06 Sed Be" Back-up 1,036.00 3 61995 61998 $28.78 $361.90 345.36 $707.26 $328.74 Frmttste Budget Sollvvew 6,050.16 5 80195 80100 $100.84 $1,109.24 1,210.08 $2,319.32 $3,73084 4034XM /40 NoMook PC P90 Mideast Micro 4,090.96 5 92985 92900 $68.18 $613.62 818.16 $1,431.78 $2,659.18 Pertkrx 100 compWr Systema 42,337.34 5 102395 102300 $705.62 $5,370.60 8,467.44 $13,838.04 $28,499.30 Software-WP6.1:Grapwas 4.1 1,521.85 5 121895 121800 $25.36 $168.09 304.32 $472.41 $1,049.44 PrirNr Sharing Device 695.00 5 123195 123100 $11.58 $69.48 138.96 $208.44 $488.56 Eduoods SoftwwLHS 8,522.86 5 13096 13001 $108.71 $543.55 1,304.52 $1,648.07 $4,674.79 Herd Drive-Tosfiihs Laptop 680.00 3 42996 42999 $18.33 $45.83 219.96 $265.79 $394.21 403-812 Law Printer - HPSL LaserJet 519.50 3 52296 52299 $14.43 $14.43 173.16 $187.59 $331.91 SoftwarsNWtleNst IV 505.00 3 52496 52499 $14.03 $14.03 168.36 $182.39 $322.61 40343816140 IBM 750PC 2,883.45 3 63096 63099 $80.10 $0.00 961.20 $961.20 $1,922.25 Del Pwwedgs PC Sarver P166 7,962.00 3 83086 83099 $221.72 $0.00 2,217.20 $2,217.20 $5,764.80 RAM Upgrades to 32 MEGS 1,687.00 3 83098 83099 $46.86 $0.00 468.60 $46880 $1.2181.40 4034)&94 HP Dssl$s1855CSE Printer 543.77 3 82096 82099 $15,10 $0.00 151.00 $151.00 $392.77 Laptop P5.100/Fax Modem 28.8 3,610.95 3 83096 83099 $100.30 $0.00 1,003.00 $1,003.00 $2,607.95 Network Setup EW prwnt 492.73 3 83096 83099 $13.69 $0.00 136.90 $136.90 $355.83 1034)828 HP 5L Law Prktr 442.01 3 82096 82099 $12.28 $0.00 122.80 $122.80 $319.21 Novel 4.11100 uw Sotwere 2,775.00 3 91696 91699 $7708 $0.00 693.72 $693.72 $2,081.28 PCs Midwest Micro -P5.150 Syst 40,201.64 3 91696 91699 $1,116.71 $0.00 10,050.39 $10,050.39 $30,151.25 Redundant Power Supply Unk 4,337.07 3 101596 101599 $120.17 -48.00 1,024.00 $1,024.00 $3,313.07 Hub - Baptadr 12P 10BT 3,060.18 3 101596 101598 $85.56 $0.00 727.26 $727.26 $2,352.92 EBxrnet Swtk:MBsystack 22=2 1 3,385.75 3 101596 101599 $94.05 $0.00 799.43 $799.43 $2,586.32 Patch Cards B Modusl 788.85 3 101596 101599 $21.91 $0.00 186.24 $186.24 $602.61 Hub -12Pod 108neT 2,029.00 3 110595 110599 -$56.36 $0.00 394.52 $394.52 $1,634.48 Keybwrds/Sou dcrdaMpeakers 2,016.02 3 111296 111299 $56.00 $0.00 448.00 $448.00 $1,568.02 HP LnrJd 5L FS 4PPm 508.84 3 112596 112599 $14.08 $0.00 98.56 $98.56 $408.28 403-0577/05486 Computer Durscan $1,725.00 5 21494 21499 28.75 $819.38 345.00 $1,164.38 $560.62 Phi pro software iter~ 6 train $2,625.00 5 10495 10400 43.75 $787.50 525.00 $1,312.50 $1,312.50 4034MV40 PC Madame 340 MB System 1,675.00 _ 5 120594 120899 27.92 516.52 335.04 851.56 823.11 4030550140 PC 4BBd4M 340MB lax/mxode 1,824.00 5 120694 120699 30.40 562.40 364.80 927.20 896.80 Computer Cable At Cortadors 553.05 5 20397 20392 9.22 0.00 46.10 46.10 506.95 Computer Table 5011.76 10 21297 21207 $4.24 $0.00 21.20 $21.20 $487.56 ----- --- ------ - --------- $158,932.60 $3,527.78 $13,255.32 $36,134.49 $/9,389.80 $109,542.80 ____ _____________ e===aaaaaaaz- aaaaaaaaa=caz cacaaaacaa aaaaazzsazzaz Cw&ucim In Progress - Equipment Acquisition Ussful Acquisition Depreciation Monthly Depreciation YTD AccumuWed Book Vakie Asset Cost Life Date Enc Date Deprecia ion YTD 6!30196 Depreciation DWeclatlen Remain ni; .- No, peseriplgn $0.00 -- $0.00 $0.00 - $0.00 -- $0.00 -------- $0.00 aazzaaaasaaaa aaaazaaaaaaz as azaaaaaaa z....zzaaaaaa aezaaaaaaaaa= ===e_-_____ DOWW suets aazzaazzaaazaaas Acquisition Useful Acquisition Depreciation Monthly Depreciation YTD Accumulated Book Value Asset Cost Life Date End Date Depreciation YTD 6/30185 Depreciation Depreciation Remaining No. Description Pro 1978 42,588.23 10 1177 123177 $354.90 $43,588.23 $0.00 $43,588.23 ($1,000.00) Assets 1978 2,094.84 10 1178 123178 17.46 2094.84 0.00 2094.84 0.00 pews 1779 15,718.85 10 1179 123179 130.99 15718.85 0.00 15718.85 0.00 Assets 1980 6,257.77 10 1180 123180 52.15 5944.80 0.00 5944.80 312,97 Assets 1981 46,049.14 10 1181 123181 383.74 39071.96 0.00 39071.96 6977.18 Assets 1962 22,641.53 10 1182 123182 186.68 17079.37 0.00 17079.37 5562.16 Assets 1963 12,491.13 10 1183 123183 104.09 8119.18 0.00 8119.16 4371.95 Assets 1954 2,644.19 10 1184 123184 22.03 1454.21 0.00 1454.21 1189.98 Assets 1895 299.05 10 1185 123185 2.49 134.56 0.00 134.56 164.49 Assets 1968 3,383.64 10 1188 123186 28.20 1184.32 0.00 1184.32 2199.32 Assets 1987 695.64 10 1187 123187 5.80 143.93 0.00 143.93 551,61 (154,863.91) -134534.25 -134534.25 Assets 1991 CWtrs 4.000.00 1 21890 21694 0.00 0.00 $0.00 $0.00 $4,000.00 okknww 81wm Table (FSA) $855.25 10 51694 51804 7.13 7.13 -7.13 0.00 855.25 Delete FY96 Beet 00" Bsok-UP 262.00 3 61995 61998 $7.26 0.00 0.00 $0.00 $0.00 Delete FY97 Ford EWM wagon 1968 -/Wo 2,800.OD 4 40793 40797 58.33 $2,274.87 $174.99 $2,449.86 $350.14 $570.38 Delete FY97 Ford Tempo 1969 -,Auto 3,650.00 4 52493 52497 76.04 $2,851.50 700.04 $228.12 33.33 $3,079.62 733.37 1,266.63 Delete FY97 Apple Computer Equip 2,000.00 5 101094 1010099 33.33 Delete FY97 Building knprovements 1991 -Ad 642.80 5 61091 61096 9.64 588.04 54.76 642.80 0.00 Total Asset NO. TOW delated Fhduros, and EWlpne^t $1,482.29 _ _$6421_58 $48<07 $6,905.65 $27.372.06 =14,210.05 essasssasss s.sssssssss _ _S $4.46D_94 ___ $57,415.43 ___ $24_646.54 $82.061.97 __$239_617.66 83M.61 1.99 s ssasssssssss saseasasssa.s DP97 New -A dddmm 198 DnwWtwn Bu**V TotaM Budov ImKovermnt Taws Land Imprwarmt Totals Automoblls Taws Mapr Movapk-Nasp Touts Ftasd Equip Tolleft Corwhudion In PmWowEWIpn Oeprecialm YTD Accumulated Book Value AcQUhOU Ac Date End Date YTD 6309Deeciation Dpeciation Remamin9 ---- Cod Life 375.00 23,812.50 4,500.00 28,312.50 106,687.50 135,000.00 517.38 13,63620 5,389.82 19,006.02 23,134.41 42,140.43 0.00 0.00 0.00 0.00 0.00 0.00 2,208.03 81,360.77 8,743.58 90,104.35 23,190.65 113.296.00 6,506,43 64,249.17 60,296-95 124,546.12 321,788.42 413.39454 _ 109.63 4.726.20 1.3170. 6'w0.00 416 10,420880.00 16,465.04 0.00 0.00 0.00 9,716.66 187,784.84 80.228.31 268.013.15 268,013.15 485,221.86 485,221.66 753,235.01 9,718.88 187,781.84 80,228.31 - 753,235.01 Now CmPW Mc45ta9 ........ Acquatm Deprecator Mord* Deprecudw YTD AmumuWeo Bouk Value Acqualow Uestul Date Ertl Dale Deprecatm YTD ti730196 DeprecWm Dep -19 n Remaawtp And Qmtty DepwUnat Coal Lit/ -__...... oncpm___.___.. - 5-_--'-- 61792 61797 5703 2,765.86 65574 3,42370 000 ----- � 3 104 3,421.70--- 51593 51598 15 69 635.45 160 28 e23 73 2,001 27 Mmnq Omw (fit) 5 104 2,825.00 15 10 11894 11899 45.02 1]06.71 54024 1,846.96 3,55555 4W475tip Srralrarl llld iCalaMara 1 0 104 5,402.50 7 10494 10401 19161 5,678.71 2,29932 ,976.03 6,11697 BP fP~i Payal 1 35 104M.00 16,095.00 5 52694 51699 26.20 70500 33840 1 1.0434 0 64 060 403-0560/40 VartraanwW W Pcwnlalrr 1 ' 105 1,692 S 82394 62398 1304 345.49 16608 51157 31068 Tewnwy TamendW 1 105 830.25 743.32 15 81594 01509 413 9499 4956 14455 22 540 77 540 03 403-0530 SWop CabYrt (Vtoea) 1 102 104 724.25 10 121294 121204 604 112 74 72 48 52500 184 1.18125 3.01875 IV Pao 1 1 103 4.200 40395 40305 4375 656.25 83.46 7704 16050 61025 40.T-0556 S7alAM 14 104 tU 5 52205 70300 70300 6 42 33 40 400.80 40080 50160 1.202 40 Inshum rd Calacbon CompWw AW YWSUG-6011~0 4 104 ;;�.05 75 70395 70885 1096 13152 13152 26304 1,71011 40346" Gib i Stwr6V Tap 1 101 634.76 5 71895 71800 8 91 106.92 106 92 21364 38100 32092 3,42900 VCR VR 639 2 1 102 104135 3,810.00 10 71096 71006 31 75 000 $0 00 38100 13305 $13305 $1.46345 403-087&��� SCOM 104 1,596.50 5 21297 21202 S2661 $000 497 50 $497 50 $11,44190 !!earl Maalar &acaak 104 11,939.40 10 21297 21207 $99.50 $1, 104 47 $0.00 5,522 35 $5,522 75 S153.521 08 403-0827M TubWMiirlpaal 0 104 159,043.43 12 21297 21209 531.58 $O 00 15790 $15790 $1,737 10 pa wt BcoNV Pdo 1 104 1,895.00 5 21297 21202 $000 3.58360 S3'�0�0 Sit50695 FW)CWM 1041051135 65,934.83 10 21297 21207 $71612 S861 $0.00 PaSert � PedOW SCOW B BMWV 1 104 1,550.00 0 21297 21297 21212 21204 $184.54 1-0o 81000 $92270 $14,57830 FoW Mentor SMW3000206 1 104 15,501 .00 7 10 21297 21207 $2.00 $000 $1000 $230 0 $13510 4034mi740 TeyaWpwv IV Poles 3 104 240.10 141.00 10 21297 21207 . $118 10.00 590 200 $590 $55480 IV Ptle 1 40 104 103 1,780.75 3 21297 21200 549.47 $10.96 $000 5480 $1,91835 403-0b.e 8758w GDiapanals SNO TAC009460 1 104 1,973.15 15 21297 21212 21207 $20.61 5so0.00 103.05 $10305 $2.37030 quodwrAb -08 Mobdo Chot Caoo7 1 104 2,473.35 10 10 21297 21297 21207 530 .37 50.00 151 85 $15185 $3.49215 40387 3 13571077104 3,644.00 403-0861740 ke LUMNlea ------5372,739.19 _------- . $2,782.76 _...____.__ 21736248 W,385 40 $302.35371 s_..=t1_5,02300 .. . TaW MsdrS p Pheaary :....ss lL elW AcDo" t3end Mothtyecat Deprecator YTD 6/!0796 YT D Deprecator Amu Deq Wm Reuartxrp Asset Ouald4V Depart Lte Dale Date Ertl Dale DepecWm ...............__00 _..__....... He Daaiplm ------------ ------ 21212 $1709 $000 8545 $8545 $2.99163 ---------'--"-'-- 403-065b BleBeattW Per SVYcm SNa FiCF t 112 3,077.08 15 21297 _ --------- - $1709 ............. __.-.._. -__ $(15 45 _ ------_..._ 15 45 $2.991 63 $3.077.08_ _ __s____s_.� _ TOW WurcerV ObstNr cs .......ss Acqurtpn Uce1W Acqurotm Deprecator MOMhIy Deprecator YTD Amreciam Rte` en AsaN 4uerltdY OeWrtrrwt C� Lte Date Eno Date YTD 6/d019G DeprecWm Deprecator wn9 Oep ----- Pb. Desuplrrl __.......... __ .. 96480 10 9591 9501 724 $42354 266 88 $51042 $45438 403-0312 Be lb wlOWbs 1 108 1.25982 5 10494 10499 2100 63000 25200 88200 377 82 4030765740 Vdso LOMry Cnt1car Concepts In 1 104 5 21395 21300 13 17 22389 158 04 38193 40827 4074565 PC" Dupplar 11 1 108 790.20 754.15 10 53195 53105 628 8164 7536 15700 59115 403{1561 Let" BIlaat Pump 1 100 7 42996 42903 16543 41458 1,98516 ?39974 11,496 76 4030831 FaW Mentor SyMam 1 106 13,89650 1.42277 10 52296 52206 1186 11186 14232 154 16 1,26859 4030811 Exam Lights 1 1061104 78300 10 112595 112506 6.53 0.00 45 71 4571 73729 I" Mon*omg Carl - Oak 1 110 ..... 819,671.24 $231.50 $1,78551 $2,74547 54,53098 $15,34026 Teal Obareklca Rn idwy ThMP7 ....AcquisdW Useful Acguutm Depreciation Monthly Deprecuean YTD AaeeAaled Bads Value Aug 1}lel DaPartmart 4k Dile Eno Dale Depreciabon YTD 6rXM1 Depreciation DepecWvl Renew"_ No. Description, y _ _...._ .....__... - --------- ............ .-------- _--- ---------- .. .._.___.._ ._....... - 1 _ 130 _ 1,05228 5 92091 92096 1623 925.83 S15645 1.00228 000 40396 &xalh Mmtor 495.00 10 30591 30501 371 237.44 144 52 28196 21304 4030508 Peak Flow Malar 1 130 7,325.00 10 63092 63002 61 04 2,960 44 $73246 3,69292 3,63200 403-0576 oto Ventilator 1 130 734.75 10 101992 101902 6.12 272.34 $7344 34570 30897 4030597 Mark 8 ReepimnWe 1 130 733.75 10 20293 20203 611 250.51 S7332 32383 409 92 4030595 OnYa BWdar BMr Mian pad 1 130 121895 120815 11.05 71.83 $13260 20443 1,12107 403.0591/Q Pula, Owna/C1Wpen 1 130 1,32550 10 10 20397 20307 16341 0.00 $81705 81705 18,791 95 Venumer AE7200 1 130 19,609.00 21297 21204 $2168 $0.00 10840 $10840 11.71235 4030654 Capedydt-FWO Md SW{260 1 130 1,620.75 6.624.70 7 10 21297 21207 $55.21 50.00 27605 $27605 $6.34865 403-0873740 &PAP ST -0 VWUMW SUppal 1 130 __--------- $34456 --- __------ 54,718.39 ..__.____. $2,414.31 ---------- $7,13270 ....... $32.61803 Taal Respiratory ThORW $39,750.73 OperWq Roan Omn lheful Aogastion Dlprecuilion Monthly Deprmotan YTD Accum.Weo Bok Value Aetal Lila Date Eno Date Depr-bon YTD 613GO96 Deprm Mw Depecialm ma Rening NO. OutrM4y Depennienl Cly _._.____ -------Surgery -_- _ .... _.. _____..- ...... 2,943.28 .__..._.. 10 61091 61001 2207 1,326.66 $26464 1,59150 125176 mWuniats 1 106 10 81391 81301 566 333.94 $6792 40186 35219 Surgery klavurnere 1 106 754.05 9591 9501 443 259.16 $5316 31232 27943 Neem moire oissedw 7 106 590.75 2,500 00 10 10 123191 123101 1875 1,01250 $22500 1,23750 1,26250 AMSCO 2180 Tads Depose 1 106 10 30292 30202 19363 10,26239 $2,32356 12,58595 13,23105 Lapaacape 1 106 25,817.00 571 37 10 42192 42102 4 29 216.65 251 48 268 13 303 24 Laparpcop/ Conch 1 106 781.80 10 42192 42102 586 295.93 $7032 36625 41555 MaryW Damecton 6 Cable W 1 106 40192 40102 6703 3,418.53 580436 4,22289 4,71510 2080 OR Table 7 106 8,937.99 10 61092 61002 528 256.08 $6336 31944 31406 Erdacopy Grxapar rarciW 1 106 633.50 10 60192 60192 0612989 29.69 S132 3721 3621 Hel earn S40tpW Mire" 1 106 73.42 10 5 50192 50197 6585 _ - -3,292 50 $79020 4.08270 30130 403-0608 � 1 106 4,390.00 50393 50303 2888 1,09744 534656 1 444 00 2,02196 403-0515 Taaniquet 1 106 3,46596 10 61193 61103 5500 2,00750 $66000 2,66750 3,93250 4030518 000 Warm Cabinet 1 106 6,600.00 10 80393 80303 3373 1,18055 1404 76 1,58531 ?46244 10mn Diagnostic Scope 1 105 4,047.75 10 83093 83003 519 176.46 $6228 23874 35376 Chdxppgnaplry 5mn 1 106 622.50 10 83093 63095 16235 5,51990 $1,94820 7.46810 2,27290 BOOWAOR r Fda tor Kt 1 706 9,741.00 5 5 100493 100493 23167 7.645.11 $2.18004 10.42515 3.47485 4030806 GsskanlaMM Fiberscope 1 106 13 9D0.00 6,913.00 7 110293 110200 8230 2.63360 196760 3.621 20 3,29180 4030562 E Unt(CMAery LAM) & Can 1 106 855.93 5 122093 122098 1427 435.24 $171 24 60648 24945 Cabot FOar LQM 1 106 4,600.00 7 13194 13101 5476 1 586 D4 S657 12 2,24516 2.35404 403-0568 tomos we (Zo") 1 106 634.10 10 12594 12504 528 155.76 $6336 21912 41496 Forcepts TelBtsa CUP Grp 1 106 82493 82496 3083 104622 $6178 1,11000 000 Cantons Capon 1 106 1,110.00 3 43093 43096 21805 $7.99582 2,61696 $10.61278 S2.47178 403-0607 Calorla OOPO 1 106 $13,084.56 5 90204 601 $13222 7212 $20434 551633 MwiWd Dissector 1 106 72067 10 90294 403-0751 Pound Marmw veEGG43Pa2 S 1 107 8,153.85 7 103194 103101 9707 $1,941.40 1,16484 $3,10624 $5.04751 4034)649 VCR Panaaate 1 106 1,230.25 5 121294 121299 2050 $379.25 246.00 $62525 560500 Latprrw9e Rqm 1 105 1,838.00 7 42495 42402 21.86 $306.32 262.56 $66888 51,26912 Lepmea" Clad 1 106 718.00 7 61695 61602 855 $106.88 10260 $209 48 5508 52 SMOaaa V GnoW 1 106 518.49 3 72495 72498 14.40 $172.80 17280 $345.60 $17289 M1Mchon Gnopa Cpara 11 1 108 1,01123 3 83195 83198 2817 $281 70 33804 S61974 $39449 Drptat Cwnwa 1 106 6,953.25 5 91895 91800 11589 $1,100.96 1,390.66 $2,49164 $4,46161 LapMaemps tOmm 300pne 1 106 2.773.63 3 52296 52299 7705 $7705 92460 $1,00165 51,77198 4034=9 ChobdoscWo CHF4120 1 106 9,100.00 3 52296 52299 25278 $252.75 3,03336 $3,28611 $5.81389 Lapaacopa LAP5,3OM-5MM 30 1 106 3,115.63 3 102196 102199 86.55 $0.00 69240 5692 40 $2.42323 403-0762 Table tWWlArtn WAIW 1 106 1,208.50 15 120296 120211 671 $0.00 46.97 54697 57,16153 403WOMO 1Wntaat: 6calpd Garrata/CMl 1 106 18,375.00 7 12197 12104 21875 50.00 1,09375 57,093.75 $17,28125 403-0834 Mdale Apm Rads 1 106 711.50 10 10797 10707 593 $0.00 35.56 $35.58 $67592 Gas Or8am 0 Lak51r 2 108 36,531.95 10 21297 21207 $30443 $0.00 1,52215 $1,52215 $35,00980 Map stwmV Poles 11 106 7,028.94 15 21297 21212 53904 $000 19520 $19520 $6,83174 Autodaws 1 106 205,635.47 10 21297 21207 $1.713.63 $0.00 8,568.15 58,58815 S197,06732 403.0858 Ow MoM* Wee Rada 6 106 5,545.36 20 21297 21217 $2311 $000 115.55 511555 55,42981 aa ToWOperpRoom —.._. $424,738.68 ._....___..__. $4,35624 556,93920 _.__._..._. $35,45877 _..._...._. $92,39797 ...__ ---- $332,34071 Emapancy Room Asad Acquntan Uselo Aoquraan Dep obon Moro* Depmmam YTD Accumuatea Boor Value No. odacnpbn Gaantb DepNnWt Cod Lte Dale Eno Date Depreamoon ____._._._ YTO 6/30196 - -- DepecWpn ------------ Deprmabn Remaawg 403-0510 IrAteion Warmer 1 135 565.00 10 43091 43001 424 26288 550 88 --- -------- 31376 __._-- 251 24 46/-0571 HpoBMmw Equip 1 135 6,733.00 10 72391 72301 5050 3,004 75 $60600 3.61075 3.12225 Goownwk HabgO Lamp 1 135 263.00 10 21395 21305 219 37.23 $26.28 6351 19949 Mho Table 1 135 126.05 15 30695 30610 070 1120 $840 1960 10645 Happen Lamp & Bre 1 135 416.50 10 30695 30605 347 5552 $41.64 97 16 31934 WA C&W* Repos 1 135 936.88 15 41095 41010 520 72.80 56240 13520 80168 403.0614140 Brkd Slyddar 1 136 703.00 10 53196 53106 5.86 5.86 $70.32 7618 62682 4034555 Peak Fbw Mdw 1 135 583.50 10 13195 13105 486 8262 $5832 14094 442 56 ER To 4)oposit 135 3,235.44 10 21297 21207 $2696 $000 149.80 $14980 $3,00564 IV Plea 2 135 282.00 10 21297 21207 $235 $000 1175 $1175 $27025 LQm - DOW—W HOWO ITFWW 11 135 1,497.20 10 21297 21207 $1248 $0 00 6240 $6240 S1.434 80' Ldepk 9p 1 135 7,462.10 5 21297 21202 5124.70 $000 62350 S62350 56,858 60 Ltepk 9p 1 135 7,482.09 5 21297 21202 S12470 $000 62350 $62350 $6.85859 FSWCq er 1 135 1,89500 5 21297 21202 $3158 $000 15790 $15790 $1,73710 Tod Ema9ency Room LaEmday _----------- $32,200.76 ------- $39980 ..._....... $3,53286 ------------- $2,55309 _.__.__.... $6,08595 ._.... ... 526,11481 Asset Acqulsilm UseU Acqum4m Depreciatgn mwltey Depecolm YTD Accumulated 6wk Val ae No Desmlpbn Ousoay Depeltmera Coat LED Date End Dela Depeddwl . YTD MOM ...__._-- Deprecwwr DepecWlm ............ Reawnnp - 403-0548 Mimrcope 1 122 _........ - __ 4,652.08 7 ..._..__._ 11894 .__— 11801 .......... 5538 1,63371 $66456 2,29827 ...._. 2.35381 403-0570 Bkwt Gr An*m 1 122 30,905.00 5 11194 11199 515.08 15,19486 $6,18096 21,37582 9,52918 4034$87 IWIWSkWAOPW 1 122 25,585.90 5 41095 41000 426.43 6,56072 55,11716 11,67188 13,90802 Bedardopy klC n"m 1 122 898.30 5 91696 91601 11417 000 $13473 13473 76357 403-0747 Gn lncubelor 12DW 1 122 2,099.92 10 21297 21207 $1750 50.00 8750 S6750 $2,01242 4030746 RONWQK Wr 42.8 w8 1 122 3.39192 10 21297 21207 $26.27 $000 14135 $14135 $3,25057 403-0750 Bbod P"m Freezer 1 122 3,426.36 10 21297 21207 $2855 $000 14275 $14275 S3.28361 4034=3 Reastpestw7Fresze 1 122 961.32 10 21297 21207 $801 $0.00 4005 S40 05 $92127 403.0893 Refr VwdonFrepe Caul -Lab 1 122 89824 10 21297 21207 $7.49 $000 3745 $3745 5860 79 4030763 RON OPWAM 42.8 w 8 1 122 3,654.34 10 21297 21207 $30.45 50.00 152.25 S15225 $3,50209 Fp7Copie 1 122 1,895.00 5 21297 21202 531.58 50.00 15790 $15790 $1,73110 4030669 OWWW eAy CoOV"M 1 122 465.05 10 21297 21207 $386 $0.00 1940 $1940 $44565 Toto Lobwak" EKG V $78,83343 DEPRE $1,167.59 $23,38929 $12,87606 $36,26535 $42,56806 AW $481.42 Acgrtmn Acquadw tAWW Aoqu"mn Aoqumdm Osprec49— Uwrov Dep AMM YTD Accumulated Book Value No. Doscnplion OunMM Dspwkrwt 71192 Cod Lee 132 Dare End Date Depraciatlm YTD 630/96 --- —..__------------ Depecosm ------------ Depree"m _.__.. Remaewtg __.------ 403-0514 EMWOCWdopaph 1 131 $9,81370 10 30293 30203 8178 3,264.97 $98136 4,24633 5,56737 Eosmr a Testing mochm 1 131 13,722.10 8 21297 21205 S14294 50.00 714 70 $714 70 $13,00740 Read" 1 131 6,078.68 B 21297 21205 S6332 $000 316 60 $31660 $5.76200 EKG ByWrnCollptaM System 1 131 11,602.73 5 21297 21202 $19330 $0.00 96690 $96690 S10.63583 Tato EKG Ubatomq & Cat Sun Aust No. DBWJWbM 403-0519 WON 4 Bartk Tdmtine View Masomld Tranodmer Toto Lwasound Leased Egmprwt (X-Ray,RT, 8 PT) Apel No. Descrblion 403-0524 Molw¢ad Never Leased Eq EMG/EP 4034583 Puawlory FLocim Tem Mwtl Loosed Eq MwnogrioW System Loosed Eq CT Scam Rokmmwe T09W Leased Eq PYwd (X -Ray, Sw9ery) OLM" Depatmert ---- 1 -- 127 1 127 ----$41,217.21 Com Lte Date ---- $04957 --_- 5 --- 62392 $2,ODD.01) 7 62193 ------------ $2.84957 _....$2,84957 $481.42 Acgrtmn UseM Aoqu"mn Quorttty OeporbTwt Depemabon Cost Lie ---- DOS ------- ---- ......... 1 127 ------ $6,970.00 5 71192 1 132 $11,000.00 5 32293 1 130 27,000.00 B 40794 1 120 73,219.32 5 50195 1 127 119,046.78 2.33 100195 _._. $84521 Depeowtion -'-_--$237,236 10 Depreclmmn YTD $481.42 53,264.97 $2,97956 $6,24453 $34,97268 Depemabon Mordnty Depeclstm YTD Accumulated Bcwk Vakte Eno Dole Depreclmm YTD 673096 Depregmm Depecotm Rema"ng __—..... 92397 _____...._. 1416 ----------- —__.._..... 679.68 .... ..._._ $16989 .__._.__-- 84957 .....------ 000 62100 2381 86907 $28572 1,154 79 84521 ------------- $3797 ------------- $1.54875 .__._----- $45561 __- ...... $2,004 36 _._. $84521 Depeowtion Monllry Depreclmmn YTD Accumulated Roots Value End Date Depecabon YTD 613096 Depreclatm DepemahDn Remaawg '------ 71197 ----`--- 116 17 -------"----'---- $6,91212 ----'---- 6788 ----------- $6,97000 --....---- $000 32298 18333 $7,33320 2,19996 $9.53316 $1,46684 40702 28125 6,90624 $3,37500 10,28124 16,71876 50105 1,220.32 17,08448 $14,64384 31,72832 4149100 100197 4,25775 38,31975 551,09300 69,41275 29,83403 -------- _--- $6,05883 ............. $76,55579 ----------- $71,36968 -_------.... $14792547 ... _.. 589,31063 Total Pharmacy IV Tltrepy Ape Na Descriptor Taw IV Thaw $9,210.53 AWuuam Quaraey Dewirem Cat ---.______ 50.00 -------------------------- ------------- ------ ------------ __...... 510596 ----$2.13872 $1,18004 $3,31876 $589177 UsMul Acgws4m Deprecalan MoMNy DepecWm YTD Accumulated Lee Drs End Date Deprecation YTD 6/OM Depecatm DepecWm ._...... __ --- _------ ....... _.... ------------- $0.00 $000 $000 $000 Hark Vaue Remwnsg $000 And Ac* -dM UMerul AcQaprott Deprecmtm Malley Depreccrm YTD AcixiMuated Book Vapor No, Dpapion pualeiy Department CAM Lee DW End Date -_--------. Degauatun YTD 6/30196 Deprecation Depecalm --_-__-...._ Remrnnp ----------- -_--Steal gMlVes 1 126 31,358.91 20 20293 20213 566 S232 D6 6792 $29998 $1,05893 Steal Shoo" 1 128 5654.05 20 20893 20913 3.56 $14596 4272 $18868 5685 37 ECG 1 126 $6,120.00 7 62193 82100 7286 $2,65939 87432 $3.53371 $2,58629 4034564 X -Ray Fem Prcauor 1 126 $21,952.59 6 121393 121301 228.67 $6,96593 2.74404 $9,70997 $12,24262 403-0575 S*.W RK Mry Ura 1 126 $776.00 7 11194 11101 9.24 527258 11088 $38346 $39254 4034546 PaUbb Xoy EWW 11 1 126 $37,145.00 5 13194 13199 619.08 $17,82951 7,428.96 $25.25847 $11,888 53 4034545 C -Arm OEC 1 126 10,000.00 5 51694 51699 166.67 54,000.05 2,00004 $6,00009 $3,99991 CompWr Syiem 6 Sdataa 1 126 9,027.00 5 102494 102404 15045 $3,00900 1,80540 $4,81440 54,21260 Xray Maar 1 126 1,000.00 5 110894 110899 1667 $33340 20004 $53344 $46656 Cal Warmer 1 126 20916 8 30695 30603 218 $34.88 2616 56104 $14012 ' Ped Malllep 1 126 125.16 5 30695 30600 209 $3344 2508 SW 52 $6664 Ve1w 8ac-2 Tae Mamo A HwW 1 126 635.04 10 30695 30605 5.29 $84.64 6348 $14812 $48692 Bucky hay 1 126 1,043.00 5 52295 5220D 1738 $22594 20856 $43450 $60850 4 03 45 8574 0 Floao Moraur W106d 1 126 4,355.00 5 61995 61900 7258 $90725 870.96 $1.77821 $2.57679 X -Ray Ural 1 126 947.44 5 429% 42901 1579 $3158 18948 $22106 $72638 4034658 Fem DupkeMorlCpeee R41ar 1 126 1,065.25 5 101596 101501 17 75 $000 15088 $15088 $91437 4034857/40 Mobile Aeon Re" 2 126 1,531.74 10 21297 21207 $1276 50.00 6380 $6380 $1,46794 Fein Nkmmlar 126 9,267.22 10 21297 21207 $7723 $0.00 38615 $38615 $8,881 07 Fem-INrrasor 126 801.27 10 21297 21207 $668 $0.00 3340 $3340 $76787 X -Ray trte4lwkr Depose 126 240,188.80 5 21297 21202 $4,00315 $000 20,015.75 $2001575 $220.17305 4034875 SMM RG Mobile Skr+atp- 126 25,312.10 20 21297 21217 $105.47 $0 00 52735 $52735 $24.78475 Lad Apices 5 126 518.75 4 21297 21201 $1081 $000 5405 $5405 S46470 Apm Be11-Black 1 126 103.75 4 21297 21201 $216 50.00 1080 S1080 S9295 TpM Radiology Rarnary 5374,337.23 ............. $5,62417 $36.765.61 $37,90022 $74,66583 $299,67140 A y Acqua lm Uselul Arquwelon DeprecWm MoreNy Depeurim YTD AccumuWed N..k Value No, Description Ouereey Dep ffwg Cost LM Dale End Dale Depcecalm ------------- YTD 6/30196 "._.-------------------- DeprecWm ___------ Deprecator ..____..__. Renameg ...__.... .. ----- ...... 4034579 '....... _ Pr~ Printer & Sand -...--_ 1 .......... 137 __.---- _-- ...... 53,507.00 5 ........... 21494 ------- 21499 5845 $1.66583 701 40 $2.36723 $1.13977 4034559 Vertical Lrmr Flow Hund 1 137 $3,581.62 10 31395 31305 29.85 $44775 35820 S805 95 $2.77567 4034593 Ramypridw 1 137 $548.00 10 11596 11506 457 $2514 5464 $7998 $46002 IV Sokitimla Cad 1 137 1,573.91 10 21297 21207 $1312 $000 6560 $6560 $1,50831 Total Pharmacy IV Tltrepy Ape Na Descriptor Taw IV Thaw $9,210.53 AWuuam Quaraey Dewirem Cat ---.______ 50.00 -------------------------- ------------- ------ ------------ __...... 510596 ----$2.13872 $1,18004 $3,31876 $589177 UsMul Acgws4m Deprecalan MoMNy DepecWm YTD Accumulated Lee Drs End Date Deprecation YTD 6/OM Depecatm DepecWm ._...... __ --- _------ ....... _.... ------------- $0.00 $000 $000 $000 Hark Vaue Remwnsg $000 Then" Ams No. Dwa0m Mya9aaPen Crrl 8yalem Nritus Gym 13 pea PT EgAprwM Foklmo-Mr Tare MarkM Til Table -Mut Bw TWI Ptryalcal Therapy ArrNIMw ANM No, Descnplrn kduar Pump PMP Pune Look Bak PMP Pure Rept-Dols Ocepe Mwd- Vialen 3200 4034654 AnOWMw Can ............. ...... _.... . ------------- ------------- ._. ..... Tar Arun these $16,254.32 $164.46 $3,22462 $1,87737 $5,10199 $11,15233 Asset Acclu"m Useull Acquastm Deprecwtan mw" Depecunm YTD Aooumuwle0 Huck Value No. Des JWbot pusraay Deparlmra Cor Lie Dula End Date Depreciab- YTD 6/30196 DeprecWon Depecwtan Rumaironp Markwgen (Jureer) 6 Aa baps 1 102 666.00 10 21794 20704 555 16095 6660 22755 43845 TOW kwerkb ry ewe Cerar No. DeswOm Bed & Me6rMa-Craury 403-0520 Warldr Guard WA Cuara 6 Hrgrs Geri Cao 6 Eno MMsek*wir Malresses 40345W Hrld Held Pulse Ou11er Wheal Over .__........ $666.00 Gust" Dewffwd Acquatm Useful YTD Aoqueitm Depreaalan Marcy Depeaatnrl YTD Ao ukatee Book Value fhryily Dep lUrwt Cal LM 120992 Date End Date _..... _.. Deprawlm ----- __-_ YTD 6!-40786 ..... ................ ............. DepecWim DepecralM .-_.__..- Remrralp ..__.__. 1 132 $752.80 10 72792 72702 6.27 $297.83 7524 $37307 $37973 1 132 $22,175.85 15 22394 22309 123.20 53,37111 147840 $4,84951 $17,32634 27 132 $10,784.39 15 41894 418M 59.91 $1,54117 71892 $2,260.09 $8,52430 1 132 $509.95 10 41095 41005 4.25 $5950 51 00 $11050 5399 45 1 132 S1,841.22 15 90996 90911 10.23 50.00 9467 594.67 $1,74655 .....__... 538,064.21 --------- $203.66 ........... $5,26961 ............. S2,41823 ............. $7,687.64 ..._.. $28,37637 MqumuIM Useful Acqustem Deprecialan MN try Depeaatan YTD AoounuMw Book Value Durally Dperlrrrnl Cor Lie Dale EM Dale Depeciran YTD 6130196 Depecabon Depecwtm Reffwm V 1 120 1,814.00 10 63092 63002 15.12 733.32 181.44 91476 89924 1 120 265.00 10 72292 72202 2.21 104.98 26.52 13150 13350 1 120 500.00 10 90392 90302 4.17 189.74 5004 239.78 26022 1 120 633.30 5 11695 11600 10.56 179.52 12672 306 24 32706 1 120 11,390.00 6 101695 101803 11865 100853 1,42380 243233 895767 1 121 1,652.02 10 12197 12107 1377 100853 6885 107738 57464 ............. ...... _.... . ------------- ------------- ._. ..... Tar Arun these $16,254.32 $164.46 $3,22462 $1,87737 $5,10199 $11,15233 Asset Acclu"m Useull Acquastm Deprecwtan mw" Depecunm YTD Aooumuwle0 Huck Value No. Des JWbot pusraay Deparlmra Cor Lie Dula End Date Depreciab- YTD 6/30196 DeprecWon Depecwtan Rumaironp Markwgen (Jureer) 6 Aa baps 1 102 666.00 10 21794 20704 555 16095 6660 22755 43845 TOW kwerkb ry ewe Cerar No. DeswOm Bed & Me6rMa-Craury 403-0520 Warldr Guard WA Cuara 6 Hrgrs Geri Cao 6 Eno MMsek*wir Malresses 40345W Hrld Held Pulse Ou11er Wheal Over .__........ $666.00 Gust" Dewffwd AcqulSA- Useful COW Lee YTD AcquetM Dale 2 214 4,181.04 15 92192 1 214 1,499.40 10 120992 10 214 1,958.78 10 92793 1 214 414.97 10 122093 1 - 214 950.40 5 21494 3 214 87300 15 31794 1 214 864.50 10 31395 1 214 1,555.17 5 72495 $555 $160.95 S66 60 $22755 $43845 Deprwwtan mwd* Deprecwrn YTD AxumW3te0 lAruk Value End Dale Deprecwbm YTD 6/30196 Deprecudw Depecudm Remauwq _........ 92107 ------------- 23.23 ..._-------------------- 1056.97 ............ 27876 __......_.. 1335.73 2.84531 120902 12.50 493.75 15000 64375 85565 92703 1632 56154 19584 757 311 1.20140 122003 346 10553 4152 147 05 26792 21499 1584 45144 190 08 641 52 30888 31709 485 13095 5820 189 15 60385 31305 720 10800 8640 19440 67010 12400 2592 31140 31140 62280 93237 Toa lame ce other a::==$aav29:26 21,424,107.44 MprM Heads _= Acquadon Useful Acquisdon And sta Detaipttm QUNW Q5pe0mere Cod La Date FyJCopfar 1 139 1,895.00 5 21297 Toa Horne Health $1,895.00 ------------------------- -- - ------ 570932 S3,21958 2131220 $453178 27,76548 $16,032.28 5158,98106 $72168546 2280,66652 51,143,44092 Deprecation Morshly Depreciation YTD AocunkAI a Book Vdua End Date Depe anon YTD 6P30796 Deprocal n Deprecation Rerlaraq 21202 $3158 50.00 15790 $15790 $1.73710 spowmychma======.aa=a==== Depreciation YTD Accumulated Buck Value DepecWion YTD WON a:= :aassu Deprecation Remamo9 ............. 085 AaJuaem lkelul Acpuaeon ------------ ._.__------085 3200 Deprecwm And puaMay Dewbvwd 8208 Cod Lee 3.59 Data End Date !b. DescrW on 48.17 1252.42 57804 163046 105954 956 `----Slod (GreNrtet) --'-- 1 578 10168 10 50994 50904 69370 Chw(BlaWMIrine) 1 578 258.83 10 41894 41804 215 04 FM CaaarLL 4 578 647.02 15 41894 41809 54.62 Cane tw B Later Pmtw 1 578 2,890.00 5 41894 41899 4920 Clwr & 2 Fee Cobras 3 drar4a 1 578 1,721.00 15 52494 52409 403-0572140 2 chops 61 Enda" 1 578 861.00 15 81594 81509 M" IrarunanM 1 578 1,052.71 7 81094 81001 4034)555 Epson Rater 1 578 1,075.00 5 90294 90299 Scent 1 578 213.65 10 100394 100304 4094554 CU"SCDPe (Zpk) 1 578 4,588.32 7 110894 110801 80115 MoWW Feinp LWd 1 578 491.70 20 80195 4034)613 Capnoope Lente -30051M 1 578 715.75 8 21996 21904 403.0888 FWJCapw Pon paper 1 578 528.61 5 12197 12102 $31.58 SO.00 $15790 $15790 $7,73110 Stanchly Depreciation YTD Accumulated Buck Value DepecWion YTD WON Depecalion Deprecation Remamo9 ............. 085 ____:__=_o_ ............._._ 2180 _ . 1020 ------------ ._.__------085 3200 6968 2.16 5616 2592 8208 17676 3.59 93.36 4308 13646 51056 48.17 1252.42 57804 163046 105954 956 239.00 11472 35372 136720 - 4.78 109.94 5736 16730 69370 12.53 287.90 15036 43826 61445 17.92 39424 215 04 60928 46572 1.78 3738 2136 5874 15491 54.62 1036.74 65544 169218 2896 14 2.05 2460 2460 4920 44250 7.46 3357 89.52 12309 59266 8.81 000 4405 4405 45456 VCR - Palrpac 1 578 256.00 5 21297 21202 Total Specialty Crac __--$15,401.27 Specialty Crac aaa>:aaa>=aa..aa Aug aaaaa AoWj"M LkekA Aoquialm Depm,afm No. Destro- Olwltay DWwbrwd Cast Lase Dale End Dale S427 $000 2135 $2135 $23465 ............ $17854 ............. $3,587.13 Micro 100 Wnddm 1 577 4,262.01 5 80296 80201 MalaYrrdua kaWrarwde Deprecialm 577 1,533.29 10 80296 80206 AMOWOpa 30 Degree 1 577 4,505.99 5 82096 82001 08w Faraalrp 1.39271 577 809.88 15 82088 82011 Map Ttay4mwd as SWI 000 577 47377 15 82096 82011 Coal Vaaulrn /E%jW(we 2630 577 2,766.60 10 82696 82606 Malc Iraburwds 623 577 598.50 8 82096 82004 RadmWW Aprwr-Land Lind 5 577 518.75 4 90996 90900 Ar1l aMW kaanarade 7,97082 577 10,627.71 3 91696 91699 Onh*AWm Frapawa Sal-karr wft 000 577 700.79 10 91696 91606 Ortho at i AOWoWWV Cerle M 2 577 1,361.85 10 90996 90906 OM-brbunvnls 17 577 58757 10 100796 100706 Ectra Carp) Tumel Syalsm 1 577 5.31075 3 101596 101599 Martin OwnwW Wall CuUm 1 577 92.59 10 111896 111806 Fracomil PkA Taab - Modal 1100 1 577 45,767.11 10 111296 111206 403-0767 Inlnmmpwbnw fY Prarua mon 1 577 1,295.87 6 121095 121002 S427 $000 2135 $2135 $23465 ............ $17854 ............. $3,587.13 ----.____._. $2,05104 ------ $5,63817 $9,76310 Momtay Deprecwm YTD Acwmuipled Buok Vakm Deprecialm YTD 6/3096 -------------------------------------- Depr im wl Deprec1ypn Remaswtg 7103 000 781 33 ------- 781.33 3,48068 12.78 000 14058 140.56 1.39271 75.10 000 75100 751.00 3.75499 450 000 4500 4500 76488 263 000 2630 2630 44747 2306 000 23060 23060 2,53600 623 000 6230 6230 53620 1081 000 10810 10810 41065 29521 000 2.65689 2.65689 7,97082 584 000 5236 5236 648 43 1135 000 10783 10783 1,254 02 4 90 000 41 65 41 65 54592 14752 000 1,25392 1,25392 4.05863 077 000 539 539 8720 38139 000 2.66973 2,66973 43,09738 18.00 0.00 11700 11700 1,17887 81,91303_ 000 _9,04998 9,04998 72,16305 Ased NO ..... —......... Dawatl Assals 12/31795 CT Scan Tube 1 127 $20,77165 4 32795 32799 43274 (0.00) $2.59644 2.59644 18.175 21 01H1N8 Nat"m Gym l place 1 132 1200 15 22394 22309 667 0.00 4002 $4002 $1,15998 DP97 Naar -8 AcpuailW Ucetia AOW"icn Owwalim mor" Deprecaim YTD Accumulated Book Value Deewiplwl OurMsy ----___---..... DeprinaM ---------- Oar Lee ......... ...... Dale End Date ........... -------_.__.__...._...-. Depreclalim YTD 6/50185 Deprepa6m Deprecwm Reinaimng Map MOgb*+imp Taloa 1,413,70518 --- -15,95455 155,76148 _._..""- 120,53116 __...-_._. 276,29264 1,13741254 Map Movebla-Care Cher Totals 12,297 26 10932 3,21958 1,31220 4,531 78 1.76548 Leased EWpr MTotals 237,236.10 6,05683 76,55579 71,36968 147,92547 89,31063 SPecrlty Crm Malmo Movable 96,614.30 178.54 3,58713 11,10102 14,68815 8192615 1,759,85294 22,30123 -'239,12398 204,31406 443.43804 131641480 1,759,85284 22,30123 239,12398 204,31406 443,43804 1,316,41480 24FaP87 Old Captal DEPRE DEPRECIATION SCHEDULES FOR YEAR ENDI (FORMULA) (FORMULA) (FORMULA) (FORMULA) (FORMULA) BLINDING: (Cog-Sahrage) (Beg 0ep.. (Sum IX exn (Beg Dep (Comr &IW12 YTD Deer) aelai) YTD Deer) Dept I ApM Acgmlmn 11ce1W Acquistmn Depswmn MMM' Depecwim YTO YTD Aaumuwed Book Value No. D-cipian .___.._.._._..._ Cal Lde ___.._ ______ Dale _.... End Date _......... Depecmlmn ----- YTD 6730196 --- ...__ Dep Wu DoWecWan Remarq Buidrp 11,204,313.00 30 10178 10108 3345.31 --------- _....... 973,06259 ............ 36,12836 ..__------- 1,009,191 .95 ......--.- 1 195,12105 Cara Cama BW*q new addbm 1878 2,223,560.00 30 10179 10109 6176.56 1,163,51661 66,70660 1,230,22341 893,33659 Cala Certo BWdtq rlm adOtm 82 173,428.86 30 10182 10112 48175 6362422 5,78100 89,605.22 63,82364 BWdegarpgaq 2,506.00 a 10178 10186 0.00 2,506.00 0.00 2,508.00 000 Cale Cerdw Butlsq rlarP addition 93 4.998.99 30 10183 10113 13.89 2,250.12 16668 2,416.80 2,58319 ` BudOV nl &dw urlil 77,480.00 10 10184 10194 64567 77,48000 0.00 77,460.00 000 aann9 Roan 000 000 000 000 000 BLW*VAddbm 000 000 000 000 000 Starape BLWdaq 000 000 000 000 000 Norla 0.00 000 000 000 000 TOTAL BUILDING $3,686,287.85 $10,663.17 $2,302,63954 $108,78384 $2,41142338 $1274,86447 BUILDING IMPROVEMENTS'. ------------- ------------- ANM Aoquldm UceM Acqu"m DepmWm mm" Depacalpn YTD Axumu131ed Bi Value No. Desppbon Cad Lte Data End Date Depe- __--___.--- YTD e130 Oep Depecam Remnxq I Wdmg WWMMmwft 1983 141,170.66 28 10183 10111 $42015 _---------- $67,646.44 ______------ $5,04180 ____._-..--. $72,68824 $68,40262 Bui6rq tinpownrrts 1983 83 62,768.03 29 10183 10112 180.37 29,497 75 2,16444 31.66219 31,105 84 Buidaq anpvA wb 1966 3,694.65 15 10186 10101 2053 2,46348 24636 2.70984 98481 BuidwV inprwnrrwte 1986 4,075.00 10 10186 10101 3396 4,07500 000 4.075 00 000 Buidtg nprownwiM 19137 18,293.33 15 10187 10102 90.52 9,77614 108624 10,86238 5,43095 BAWWm mwrrwte 1988 1,711.66 5 10188 10193 25.67 1,711.68 0.00 1,71168 000 BWdnq mpww wte 1988 835.00 10 10188 10198 4.76 45698 5712 51410 12090 Bu*kv wpfowrwta 1988 2,04720 15 10188 10193 1024 98333 12288 1,10621 94099 Bukkv wwm arwte 1988 1,574.59 20 10188 10108 590 566.43 7080 63723 93736 BuYOrq UWMV rrwts 1909 932.07 5 10189 10194 1400 93207 000 93207 0 w MwchgmpVwmwte1890 35,418.47 15 32990 32905 177.09 12,32216 2,12508 14,44724 20,97123 BW*g wwmw wte 1980 12,400.90 5 123190 123195 18601 12,276.66 12424 12,40090 000 TOTAL BUILDING IMPROVEMENTS $282,721.78 ----- ---$1,16920 ----_--___ $142,706.12 .-__-_..._. $11,03896 ____-___--. $153,74708 ._ $128,97470 LAND IMPROVEMENTS: ------------- ----------�-� Anal Acgtnd m Use1W Acqustmn Deer a tmn MMNy Depecalim YTD Accumulated Ooue Varve No Deuption Cog Lie Dale End Date ...._._-_. Depecwmn YTD 6!30/96 Deprmotmn Depeualmn Reina.neq Lara MWMWMWds1986 24,24481 15 73186 73101 ............. 13469 -------------- I ----------- 15,94943 -------- .--- 161628 ------------ 17,56571 _ ... .. 6,67910 Land arlpvwmews 1986 2,172.00 15 93066 93001 1207 1,448.30 14484 1,59314 57886 Land Yll9rwerrwn 1986 360.03 15 113006 113001 2 00 ---- - 24000 2400 26400 9603 Land alprOwnwta 1967 2,08986 10 73187 73197 1742 1,881 28 20858 2,08986 000 Land wprownleMs 1907 925.97 10 83187 83197 7.72 83370 9227 92597 (000) Land mparerrwts 1968 748.55 15 21288 21203 375 376 72 45 DO 42372 32583 Land mpawnwts 1990 1,724.14 15 73190 73105 8.62 60753 10344 71097 1,01317 AgWffwd OOD 0.00 000 000 000 TOTAL LAND IMPROVEMENTS _------ $32,266.36 ............. $186.26 ------------- $21,338.96 -----_--..... $2,23441 ----- ------- 623,57337 .. _..... $8,69299 AUTOMOBILE And Acqu"m UsNW Acquiatmn Dop tmm MM No. Descrpan Cog Lie Dale End Dale om WDfirliart YTD Dewmuwed Re,. value ----- - YTD6730--- Dep------ n Depe---- Renwineq Total wAoMo5eaa FOXED EQUIPMENT. ------------ ...ao ---.......... -- -------- ----------- $0 00 $000 S000 $000 S000 USSM Acquaeicn uon DeWeMi Monthly Deprecuarm YTD Aocu Kd@MO Book Value Anel Coal Lee Date Erw Date Depreuaeon YTD WWII Deprecation Depredation Rwnralp Ne Daaalphort _____________ _.— .......... ........ _.. ..__.._ .....__ J Seclaay 2,886.06 5 21688 21893 $43.29 52,886.06 $0.00 $2,866.06 $000 wAten 410.45 5 81588 81593 616 410.45 000 41045 000 161,719.90 8 120188 120196 154425 149,27749 15,44241 164,71990 000 1XraU*oy1X 415.00 10 32489 32499 311 27057 3732 30789 107 11 DOW b* Catania 5,680.71 15 70389 70304 2840 2,385.60 340.80 2,72640 2,95431 An earrrwV BdlerR.pr.o.nrnt 2,733.74 15 22690 22605 1367 103892 16404 7,20296 1,53078 3,899.81 15 81590 81605 1950. 1,36500 234.00 1,59900 2,30081 Iphta 4, Bad WCalora 9,835.00 15 81590 81905 4918 3,44260 59016 4,03276 5,80224 Aa cortdltortv4ab 1,700.00 15 73190 73105 850 603.50 10200 70550 99450 CeoirMs It Causer -08 ---------- _____________ ------ ---- .. ...._____._ .... ...... $192,28026= $1,71606 $178,59092 $11,66975 TOTAL FIXED EOINPMENT =_ _$161,68019 __— _516,91073 PMra Dpara0ora AOQL-d n Uceke Aw^tM Depreciation Monthly Deprecation YTD Accumualeo klouk Value Armed Ouantay Wellhead Coat Lee Date Eno Die Depreciation YTD 6130196 Deprecalm Deprecation RenawwV NO, Daaarphon, __.—..._------------- ----------_ ._......... .......... — --- yypten Morytp 1 55 $403.68 10 1177 1187 3.36 540368 000 $40368 $000 Auodrw aMaT 1Mar 1 55 $723.80 10 93063 93093 603 $72380 000 $72380 $000 1 55 $252.75 10 93083 93093 2.11 $25275 000 $25275 $000 Ladd 0CW 1 55 5352.40 10 20883 20893 2.94 $352.40 0.00 $352.40 $000 Morator 9 arA 1 55 $2,12060 10 20883 20693 17.67 $2,120.60 000 $2,12060 $000 ER door camera Dyne Mdt paMnt taratatd 1 55 $1,097.20 10 103187 103197 914 $98718 11002 $1,09720 S000 1 55 $2,353.00 10 12888 12896 17.65 $1,69439 21180 $100619 $44681 PuncMaorYo swmw 1 55 $516.98 3 93088 93091 1292 5516.98 000 $51698 $000 MVAar 1 55 $865.00 5 81288 81293 12.98 $865.00 000 $86500 $000 praaauaw•aMr t 55 $597.04 5 lilies 111193 8.96 $59704 0.00 $597D4 $000 Tod tel 1 56 52,026.25 5 111188 111193 3039 $2,026.25 0.00 $2,02625 5800 Portable aoOpe 1 55 5298.00 10 123183 123193 2.49 $29900 000 $299 OD $000 Radial amr 118m, 1 55 5978.14 5 21789 21794 14.67 $97814 000 S97814 S000 Hand tool 1 55 52,156.67 5 90790 90795 32.35 $2,156.67 0.00 52,15667 5000 Cabnata 403-0503 Snore NOW 1 55 $1,099.00 5 110890 110695 16.49 $1,09900 000 ____._____-- 51,09900 _.._____-- ..__.._ $000 _ ......-_____ $15,841.51 ..-__._____ $190.15 ____.._._... $15,07288 $321 82 $15,394 70 S44681 TOW Plana OpMaticlM NXAatakeepap Asset Acquisition Useful Aaquwaicn Depreclatwn Monthly Deprecabon YTD Amumuated Book Vaiue Ouenoty DepaMaM Coat Lee Dale End Date Depreciation YTD 6130196 Deprecwhon Deprecatm Remaimp Na Description ....._______ ..._—______________--- .... NSS 20" Electric BUNK1 __. —. 53 ._____ 51,042 .35 _—.. 10 ____.__ 930 80 —___.. 93090 869 104235 000 104235 000 403-0808 1 53 $653.90 10 73164 73194 5. 45 653 90 000 65390 00 403-0809 CM wwlp Carta ROIMRoyce 7 53 $653.90 10 73184 73194 5 45 653 90 0.00 65390 0000 403-0173 Camp Cate ROeaRWca 53 $653.90 10 73194 73194 5 45 65390 000 65390 000 403-0170 Ck4trwr9 Claris RaaaRoym 1 53 $653.90 10 73184 73194 5.45 65390 000 65390 000 403-0171 Cbwp Ceft ROMRwyce 1 T4Wllorsalteepnp ------- $3,657.95 ............ ------- $3048 ------- $3,657.95 ........ 5000 -------- $3,65795 -_..._..- $000 Lmadry a Lren And Acquisition Ueelul Aoqurdgn Deprerxtnn MOruhty DeprecWian YTD AOcurtarWed Book Vets No Daedriplion QuK* Qwa *ort Cpl Lit Dae End Dole _-.. Dwecmon ------- YTD MOM Depreui l idi Depredalton Rmrlraig 403-0611 MWMWWWSI 1 54 ___-__ - $14,315.80 -- 10 93081 93091 $119.30 --- -_------------- $14,31580 ---------- _ $000 _- 514,31580 ._......._ SOOD 4034810 Miner WWW 1 54 $15,971.56 10 123181 123191 13310 1597156 000 15971.56 000 403-0812 Quol Drym 1 54 $2,083.26 10 123181 123191 1736 205326 000 2083.26 000 403-0613 D"Wdw Dryer 1 54 $2,368.00 10 1177 1187 1973. 2368.00 000 236800 000 40341014 Drys Orsnge Foot 1 54 $2,011.80 10 93081 93091 16.77 201180 000 201180 000 403-0615 Drys W1kt Front 1 54 52,011.79 10 93081 93091 1676 201179 000 201179 000 403-0618 TedwOup Unsn Cot 1 54 $1,227.25. 10 13184 13194 1023 1227.25 000 122725 000 403-0617 Lien (art 1 54 $1,227.25 10 13184 13194 1023 1227.25 0 00 122725 000 403-0618 - 0 Leen Cmt 11 54 $1,633.94 10 71489 71499 1225 1029.00 14700 117600 45794 4034029 - O Stool SWAY 3 54 U92.58 10 123183 123193 577 69258 0 00 69258 000 TOW Laundry 8 Li en OMWy __.... $43,643.23 ..a........------------ - ----------- $36150 _-._ $42.93829 .._.. $147 00, $43.08529 5457 94 ASMI Acqu dM Uselru Ac*ni ion Deprecation Monthly Depredalan YTD Acoumuated Boor Vaue No. Deo -urban Quaintly Department Coat Lb Dat End Dae Depwabon YTD 67.10196 Deprecator Deprecator Remaekrg Kannwo Mciamme 1 52 $0.00 10 1177 1187 $0.00 .,--- -_-___---- --- 50 00 ------------ SO OO ........ $000 ...._....- $0 00 Crain 30 52 $0.00 10 1177 1187 000 000 0.00 000 000 Char 1 52 $0.00 1D 1177 1187 9.00 0 00 000 000 0 D0 Round Tobin 6 52 $0.00 10 1177 1187 000 0 00 000 000 000 Square Toots 5 52 50.00 10 1177 1187 000 0 00 000 0 00 000 FUWp Tabu 2 52 $0.00 10 1177 1187 000 000 000 OW 000 Cmrpsc CMV" 1 52 $4,827.00 10 123185 123195 40.23 4827.00 000 482700 000 DMnh*M8mdW 1 52 SO.OD 10 1177 1187 000 000 000 0 D 000 ALPS 200D Prwdw 1 52 S1,395.00 10 103186 103195 1163 139500 0 00 1395 00 000 IBM Setart Typownt 1 52 $216. DD 10 53184 53194 180 21600 0 00 21600 000 Tvs cine sr go caGirel 1 52 $155.00 10 113093 113093 129 155 W 000 15500 0 DO Scotmon toe Medan 1 52 60 OD 10 1177 1181 0.00 0 00 0 00 000 0 DO Fngidae Me Madles 1 52 $167.29 10 1177 1187 1.39 167.29 000 16729 000 Four Dram FY Cabins 1 52 50.00 10 1177 1187 0.00 0.00 000 0 00 000 Desk 1 52 50.00 10 1177 1187 000 _ - -- - 0 00 000 000 000 MW Trey Cad 2 52 $13,196.02 10 123185 123195 10997 13196.02 000 1319602 000 4034223 Cold PmVSrraze Gumd 1 52 52,005.29 10 43054 43094 1671 200529 000 2005 29 0.00 403-0166 Caw Cash Register 1 52 $458.80 10 83184 83194 3.81 456.80 0.00 45680 000 Coon StsgAMNawlep 1 52 5583.28 10 53186 53196 466 58328 0 00 58328 000 Boma Funned 1 52 $2,147.00 10 1177 1187 1789 214700 0 00 214700 0 00 Freezer 1 52 51,301.52 10 1177 1187 - 11.35 136152 0.00 136152 000 Sek 1 52 5782.63 10 1177 1187 6.52 782.63 0.00 78263 000 Toems 1 52 $271.09 10 123180 123190 2.26 27109 000 27109 000 403-0138 Moor-1looert 1 52 $1,713.00 10 123181 123191 14.28 1713.00 000 171300 000 Robot-Colrpe FonaProcessol 1 52 $436.06 10 123162 123192 363 43606 000 43606 000 403-0144 Ice NUMB MOs 1 52 S2.62757 10 43054 43094 2190 262757 000 262757 000 403-0225 Cookup RWW 36S -3A 1 52 $2,675.00 10 93004 93094 22.29 267500 000 267500 000 Hobart Food Cuder 1 52 $2,632.64 10 63007 63097 21.94 236949 26315 263264 -000 Hdm sbm Datbr Waft BOW BOYO Fu mWwd TOW DMYT Yy 1 52 $500.00 1 52 $1,76100 1 52 $60131 1 52 $1,48300 93098 —..._.$41,993.50 1268.15 15852 5 52788 52793 750 500.00 000 50000 000 10 93086 93098 1321 1268.15 15852 142667 33433 10 83189 83199 501 41082 6012 47094 13037 10 1177 1167 1236 1483.00 ----------- 000 _$48179 _...--.$41.52880_..- 148300 000 -.....—_-$35181 ...-...--S41,04701 $46470 AdrleWrrwe a Qarwr Anal Acquwaron UWU Acqu"m Deprewlm ModhhV Depreaatm YTD ACCumuwed Book Veue No. DesaVbm Ouud*V DOPNMwt CGM Lila Date End Date Depremb- YTD WOW Deprewtm Oeprecwrm Renwwig Once Char 1 80 646.42 10 113087 113097 $5.39 $58206 $6436 $64642 SGOO Crodania 1 80 900.00 10 93084 93094 750 90000 000 90000 000 Bookshaaes 2 80 564.80 10 93064 93094 471 5648D 000 56480 000 Gter Chairs 2 60 439.90 10 93064 93094 367 439.90 000 43990 000 Lateral Fee CebwmAr" 1 80 550.00 10 1184 1194 4.58 55000 000 55000 0 OD Brother M-1509 PnMr 1 60 470.00 10 123187 123197 392 42330 4670 47000 000 Kerarwe Rddgwdw 1 80 0.00 10 1177 1187 0.00 000 000 000 000 EIw Um Daus 1 60 799.20 10 93064 93084 666 79920 000 79920 000 IBM Cwnpulr 1 80 2052.50 5 31488 31493 30.79 2052.50 000 205250 000 IBM Temkrw (Nunwn Ree) 1 80 1100.00 10 1188 1198 8.25 940 50 99 W 103950 6050 Secrdry Dask Char 1 60 335.46 10 93084 93094 2.80 33546 000 33546 000 Binder Slorapa Catlrw 1 80 325.00 10 113086 113096 271 325.00 0 OD 32500 000 Phnom SyW m 1 80 63384.00 10 53184 53194 528.20 63384.00 000 6338400 000 Eremal Disc Drew 1 80 300.00 5 123187 123192 500 30000 000 30000 000 Paatln -OFM p Morrwp" _ 1 80 450.00 10 113086 113096 375 45000 000 45000 000 Color TV(Apw msn() 1 80 495.00 10 93086 93096 413 495.00 000 49500 000 Didalnp Mwhm 1 80 2285.00 10 93086 93096 1904 228500 000 228500 000 Board Furrd~ 1 80 5700.00 10 1177 1187 47.50 5700.00 000 5700 00 000 Son (WWW Room) 2 80 250557 12 13189 13101 1566 139374 18792 158166 92391 FurnmNng*VaOnp Room) 1 80 3079.37 12 72189 72101 1925 1597.75 23100 182875 125062 Hon Fie CabNNM Lateral 2 80 820.00 10 1177 1187 6.63 82000 000 82000 000 Oak Desk 1 80 799.20 10 93084 93094 6.66 799.20 000 79920 000 Desk Chir 1 80 469.95 10 93084 93094 4.08 48995 000 48995 000 Bods Shell 1 80 117.82 10 43081 43091 0.98 11782 0.00 11782 000 Oak 001101rw 1 80 900.00 10 93084 93094 7.50 900.00 0.00 90000 000 IBM SaMWic III 1 80 798.00 10 113084 113094 6.65 79800 000 79800 000 Comport Computer 1 80 482700 10 123185 123195 40.23 4827.00 000 482700 000 Cwt Dask RLHwxI Realm 1 80 1095.00 10 93084 93094 9.13 1095.00 000 109500 000 Two drawer W cadre 1 80 159.00 10 1176 1186 1.33 159.00 0 00 15900 000 Sound Cwer 1 80 460.00 10 51689 51699 3.83 325.55 4596 371 51 8849 Toshiba P341E 1 80 646.53 5 43087 43097 1414 848.53 000 84853 000 BookOW 1 ou 262.40 10 93084 93094 235 282.40 000 28240 000 OwdwWPlopdor 1 80 169.47 10 33179 33189 141 169.47 000 169.47 000 Codrerlce TOM 1 60 680.00 10 93084 93094 567 680.00 000 68000 000 Credpwa 1 60 900.00 10 93084 93094 750 900.00 000 90000 000 Biro%mw"m 1 60 550.38 10 113082 113092 459 550.38 000 55038 000 Chm 1 80 3079.30 10 93084 93094 25.66 3079.30 000 307930 000 FurrKturpf(WOOrp Roan) 1 80 956.00 12 72189 72199 5.98 49634 7176 56810 38790 Storage Cabirws 1 80 441.64 10 10881 10891 368 441.64 000 44164 000 File Cabirwl 1 80 297.00 10 113081 113091 2.48 29700 000 29700 000 Date Mash Mod 1 80 57500 10 123181 123191 479 57500 000 57500 000 Fee Cabo* 1 80 531.00 10 103182 103192 443 53100 000 53100 000 VwIrod )Mad Sealer Wcab 1 80 975.84 10 123162 123192 8.13 975.64 000 97564 000 VCR 1 80 1295.00 10 123162 123192 10.79 1295.00 000 129500 0 00 Desk 1 80 54900 10 123182 123192 458 549.00 000 54900 000 Laend Fee Cabrlat 1 w 531.00 10 123162 123192 44353100 531.00 000 53100 000 Steel Cabirel 1 80 388.73 10 13184 13194 324 _ 388 73 000 38873 000 Fees 1 811 619.39 10 123183 123193 6.83 81939 000 81939 000 On"my WnaN a pagers 1 811 1008.64 10 83183 83193 841 100864 000 100864 000 VCR 1 80 600.00 10 1177 1187 500 600 OD 000 60000 000 Couch sow 1 BD 535.00 5 121189 121194 803 535.00 000 53500 0 00 Medrembw stomp 1 80 327.00 10 122889 122899 2.45 191.10 2940 22050 10650 Keypm 0-p Ate paten 1 80 1910.00 5 11990 11995 - 28.65 1910.00 000 191000 000 Waatw adm hl 1 80 300.00 3 112089 112092 8.33 300.00 0.00 30000 000 Dryer nam hove 1 80 300.00 3 112089 112092 8.33 30000 000 300 W 000 Rdngwatw &tett house 1 80 750.00 3 112089 112092 2083. 750.00 000 75000 000 Bookcasms 1 80 529.00 10 113087 113097 441 476.25 5275 52900 000 Dolt 1 80 600.00 10 123180 123180 500 600.00 000 60000 000 Fork Machm 1 80 1300.00 3 30590 30593 3250 130000 000 130000 000 403-0504 Lase Pieter 1 80 2150.00 3 62990 62993 5375 215000 000 215000 000 623.26 10 80390 80300 4.67 295.70 5604 35174 271 52 Bed 6 Rile StWfs 1 80 325063 10 73190 73100 2438 1730.98 29256 2023 54 122129 Taaplaas 4 60 500.00 5 72390 72395 7.50 500 00 000 500 00 000 moray Extension 1 80 5 92490 92495 34.43 2295.00 000 229500 000 CMIIX K WGIAM 1 66 229500 ------ _ ---------- ........... _.._._ S127.69640 51,1559- $722,202.22 $1,17745 11 23,37967 ,31673 Taal Afnas rtillud" B Dsrtsrat Medical Records 017 Useful AOWWAion DepreciMan mor" Deprocwlan YTD AcaxrRAMW Book Value Clayey, ppelylrnl Cod Lie Dale End Date Depreciation YTD 6140196 Deprecom Oeprecrlan Ranwwq NoM o. DMWWbw _- ..__ ^• ^_ 84 (6,644.00 10 123185 123195 $55.37 $6,64.00 $000 $6,64400 5000 m1038 copier / 0.00 10 1177 1187 $000 0.00 000 000 000 %idea 1 84 64 79500 10 113084 113094 $665 798.00 000 79800 000 _ IBM owed III 4VWAF&er 1 64 16,032.00 10 113065 113095 $13360 1603200 0 00 1603200 000 Psrtey barrios diateptana 1 84 798.00 10 113084 113094 $6 65 79800 000 796.00 000 IBM selcd III 4powder 1 949.66 10 61088 61098 $7.12 669.01 85.44 75445 19523 Deak MR Im10 CUMMIM 1 64 124.32 10 61088 61098 $093 89.29 1116 100 45 2387 Desk c11se 1 84 180.00 10 13184 13194 $150 18000 000 18000 000 Hun Me colonst 2 dr 1 84 180.00 10 13184 13194 $150 180.00 000 18000 000 Hon Me caWw12 A 1 84 0.00 10 1177 1187 50.00 0.00 000 0.00 000 Oak book sfa$ 1 84 0.00 10 1177 1187 So.00 0.00 0.00 0 00 000 Desk LH rattm 1 84 560.00 10 43087 43097 S467 49566 56 04 55170 8 30 CNK 1 84 0.00 10 1177 1187 fo oo O.00 000 000 000 Baalala$ 1 94 0.00 10 1177 1187 20.00 $000 000 f0 00 $000 Desk m Warn 1 84 1,518.30 10 33187 33197 $12.65 $1,366.25 152.05 $151830 $000 403.0281 S1leltsblar 4 84 1,046.50 10 103081 103191 $8.72 $1,04650 0.00 $1.04650 $000 Slakes 6 NOW 2 N 43094 $3.18 5382 06 0 W $36206 $000 Sound c a1er 1 84 382.06 10 43064 62384 62394 $3129 $3.75457 0.00 S3,75457 $000 D Van COOK OltaNes 1 84 3,754.57 10 53186 53196 $3 37 S40422 000 S40422 $000 Stakes 8 her. 1 64 404.22 10 93086 93091 S1667 $1,000.00 0.00 5100000 $000 IBM Norval 5291 1 64 1,000.00 5 5 123186 123191 $2354 S1.41250 0.00 ft 41250 $000 IRM nnninal 5291.2 2 84 1,412.50 5 13087 13092 57188 $4,312.60 000 $4,31260 $000 IBM pmW 4214 1 84 4,312.60 537.69 10 33186 33196 $4.48 $537.69 0.00 S53769 5000 Xerox CVA ww 1 64 10 72288 72898 55.24 $503.06 62 86 5565 94 S13306 ParK supply 88730 1 84 699.00 6469 8494 $15675 $10.450.00 0 00 510,450 00 $0 00 PMary tan at1$sare 1 64 10.450.00 9,567.00 5 5 73189 73199 S14351 $9,567.00 000 19,56700 SO 00 Patient t Carol) OKs 1 54 452.59 2l1 92889 92899 $1.70 S13770 20.40 515810 S29449 Slakes floor 1 44 20 31990 31910 $404 $303.00 48.48 535148 $72555 Shown 84er 3 54 1,077.03 __..._ 54364536149956 $1380 $62,880 TOW Msocalcall Retards i06 __-____±70500 t235ai6=_06311 LyaKy 6 Dr LourW MoMMy Dgxwwl n Y10 Accumulated Bok Value Acqualbon Usda AWaOyan Dale Deprecation End Dale Depreciation YTD 6l-0196 Delle---- n ..epactal an Rerna4w g Descnpbon Ctrwyy7 DOpytmay COM LN ........... W -.-....... _.___ __._.. ........"" __... 824.74 ...�_. 10 43081 43091 56.87 (624.74 000 $82474 so 00 Book Wakes 7 829 80 2,400.25 10 123185 123195 $20.00 $2,40025 --`53.20814 0.00 $2,40025 $000 $000 Home IW*V tables 5 3,208.14 10 123185 123195 526.73 000 $3,20814 Slaclap olaea SWckw 18 8o 475.00 10 83183 63193 $396 $47500 0 00 547500 SO DO V -P relic Duk" -Pat�w 1 60 1177 1187 $0 00 $0.00 0.00 $000 $000 1 a 000 10 10 83183 83193 $1.62 $19466 000 $19466 $000 colt Luxor c t LURK 1 80 194.66 10 93082 93092 $288 $34500 0 00 $34500 $000 1 so 345290 33079 33089 $1.66 $19900 000 $19900 $000 Resusa baby 1 80 199.00 10 10 1177 1187 $0.00 $0.00 0.00 $000 sow Kaiak 570 AF PropUar Kodak 7 1 80 0.00 93082 93092 $23.59 $2,831.00 000 $2,83100 5000 Ams 1 80 2,831.00 10 63179 83189 $1.66 $19900 0.00 $19900 $000 KoOak sefe propdor 1 80 199.00 10 1177 1187 $8.93 $1,071.00 000 $512875 5000 VCRICP50000 1 80 1,071.00 10 123176 123186 $107 S12875 0.00 f 128 75 f0 00 Am Ntaion 4aslsr 1 50 128.75 10 1177 1187 $1.77 $21183 000 $21183 $000 Fate cNk al 4 K 1 80 211.83 10 12678 12688 $398 $47712 000 $47712 S000 Resuea Ana 1 80 477.12 10 113087 113097 55.44 $587 52 6533 $65285 ($000) Reauad Ana 1 s0 652.85 10 ROWAM Anne 1 60 0.00 10 1177 1187 $000 $000 000 $000 $000 Emsron Sry V Tapas 10 80 1,12000 10 53183 53193 $933 $1,12000 000 $1,12000 $000 statical 4awg Fim 1 80 502.50 10 13184 13194 $419 $50250 000 $50250 $000 Rakiprassr Says 1 80 374.99 10 121286 121296 $312 $374.99 000 $37499 $000 Micremre Kerimom 1 80 319.99 10 123183 123193 $267 $31999 000 $31999 SO O0 mod OFM I= 1 80 7,307.20 10 63088 63096 $6089 $7.30720 000 $7.30720 $000 Dam Clefs 3 80 1608.00 10 63086 63096 5840 $1,008.00 000 $1,00800 $000 Tabs 48" 101141011; 1 so 0.00 10 1177 1187 $000 $000 000 $000 $000 Book Shall 1 60 117.82 10 43081 43091 $098 $11782 000 $11782 $000 Way film lMtier 1 80 0.00 --- 10 1177 1187 $000 ---------- $000 000 $000 $000 Trial UbrW ary8 burp PulC "sho $23,968.64 $189.71 -------- $23,903.51 ------------ 565.33 ------------ $23,888.81 z:..aaaa.aa - - (11000) aaa..a.a=a. Acquisition t *W AcW"M Deprecwn Monthly Deprecuam YID AccwnWalee Book Value Dasorrplrorl Ow" DsDsrtrrlra Cod Date End Date ----------- Depreckidw ------------ YTD 6ri0196 ---- ----- - Deprecation Depreclabon Remyml0 Gray metal shwt a 2 50 200.00 10 1177 1187 $167 ------ -------------- $20000 0.00 ._.------- 520000 ._....... $0 00 Greed Insist shshss 1 50 100.00 10 1177 1187 $0 83 $10000 0 DO $10000 SO OO C edwM beck 1 50 300.00 10 1177 1187 $2.50 $30000 0.00 $30000 SO OO Xarmcopsr88723 1 50 1,895.00 5 13188 13193 $28.43 $1895.00 000 $1,89500 $000 Ri0011W 20 fax machine 1 50 2,355.00 3 71588 71591 $58.88 $2,35500 000 $2,35500 $000 Hors be 00enet 4 dr 3 50 800.00 10 1177 1187 $5.00 $60000 0.00 $60000 $0 00 Hw So 00blw 2 dr 1 50 151.00 10 - 1177 1187 $126 $151.00 0.00 $15100 $0 00 Form 5n catenate 1 50 400.00 10 1177 1187 $333 $400.00 000 540000 $0 OO Douce pedestal tlaets 2 50 0.00 10 1177 1187 $000 $0.00 000 $000 $000 Slnpe patiaetel desk vnsium 1 50 400.00 10 1177 1187 $3.33 3400.00 000 $40000 $000 Kay pro GmVt w 1 50 2,673.06 5 4868 4893 $4010 $2,67306 000 $2,67306 50 00 ALPS 2400 paster 1 50 1,622.85 5 4888 4893 $24.34 $1,622.85 000 $1,62285 $0 00 Ows" 193 pmtr 1 50 603.00 5 53186 53191 $1005 $603.00 000 $60300 $0.00 Lary tabu 1 50 480.05 10 123185 123195 $400 $480.05 000 $48005 $0 00 Blue oioe Cwr 1 50 200.00 10 1177 1187 $1.67 $200.00 0.00 5200 00 $O 00 Blown side cte , 1 50 200.00 10 62384 62394 $1.67 11200.00 0.00 $20000 $0 00 Photo ID system 1 50 1,595.00 10 72783 72793 $13.29 $1,595.00 0.00 51,59500 $000 Cam k6ulr 1 50 932.54 10 4888 4898 $699 $671.07 8388 $75495 $17759 Bw poser oaclolp 1 50 955.80 10 33187 33197 $797 $880 67 9513 595580 $0 00 Cmuser ee 1 50 3,118.24 10 123182 123192 $25.99 53,118.24 0.00 $3,11824 $0.00 Caaakw elft 1 50 3.118.24 10 123182 123192 525.88 53,118.24 0.00 53,11824 $000 Pat" 2 say, (ado 1 50 730.60 10 113081 113091 56.09 $730.60 000 $73060 $0 00 ' Bard ksraslW 1 50 1,926.OD 10 1177 1187 $16.05 $1,92600 000 $192600 $000 Dsia shield 1 50 1,595.00 10 83186 83196 $13.29 $1,59500 000 $159500 5000 Slmfinp Equrprrwa 1 50 525.52 5 42790 42795 $788 $52552 000 $52552 Sq OO Odw ohm 2 50 760.00 15 12189 12103 $390 531005 46 80 S35685 S42315 ToPeC1a Nmp ............. $27,456.90 ------------- $31448 ------------- $26,630 35 ----- 5225 81 -------.._.. $26,85616 S60074 Business 011100 And AcquNd n Useful Acqueulm Dep -Mid n Monthly Deprecelan YTD Accumulated Book Value No, Omrplim Ouareay DeW..w Cosi Lie Date End Date Depecwbn YTD 6!.10186 Depreciation Depreciatnn Renauwp IBM 5291 tamsW 1 66 1,000.00 5 93086 93093 _ $16.67 ------------ $1,00000 ----------- 0.00 ----------- $100000 .__._.. $000 IBM praaar 5219 1 68 1,500.00 5 93086 93093 $25.00 $1,500.00 000 51,50000 $000 IBM 5380 dmolsa$lvra 1 68 40,869.55 5 93086 93093 $681.16 540,869.55 OOO $40,86955 $000 BW poser urd(WM-5) 1 88 7,995.00 10 12288 12296 $59.96 $5,75618 71952 $6.47570 $1,51930 IBM 5224 1 68 5,568.OD 5 93086 93093 $92.80 $5,568.00 000 $5,56600 60.00 Al condaiorer 1 88 73091 5 81288 81293 $12.18 $73091 000 $73091 $000 System supPod 1 68 4,600.00 5 121286 121293 $76.67 54,600.00 000 34.60000 $O OO Oak sofwve scarps, 1 68 1,000.00 5 53186 53193 $16.67 $1,000.00 0.00 21.00000 $000 System softs, e d base 1 60 695.00 5 33186 33191 $11.58 $695.00 0 00 $69500 $000 IBM Model up9raae 8234324 Capon" oa811ars Dmas GIL DnMs AIP Drrlss PIR Drnos It APP GUNNY Prop Cout (wb$eltooa) Prop Cal (auto m9^It) Prop Cal (1 dmmd) Onk LH rattan Fib cabllet FY rabktut 4 dr IBM Tooff" 5291 IBM lerllw"W 3196 IBM politer 5256 Fie cabnst 3 dr Plblay Boras oM kap tw IBM samom 11 Fee cabktets 4 dr Mian kche lies Border SWIP cabnet Mcalaer kNIALOW&OKINs Keybora relom Sa6rars i banns wIBM ownpLAW homiis III Hon Lot" Fie Cabiout Hon Lateral Fie Caberb Outs Cabinet Doak RH rsban Desk LH rakan Bolt OW Sel►Mo Link SM b471602 IBM Sutocft lypommew ACCMMbrtye creek t8lsrut We Desk Chow IBM le Wins b 3198 4030254 Paper shodd r Tr Macturte ypwm* Pe43aws Poutet Scab Copy Art*= OIRa C7oeke Once asters Rog Cod (sfMeemsom Taal BaYtesrless OMa ame w assets AasN 14o Deacnpltarl ---.-_- Pre 1978 Assets 1978 Aaeb 1779 1 1 68 68 6,429.86 10 33185 33195 $5356 $6.429 1 66 20,500.00 5 123187 123192 $$11 67 52 00 000 26.42986 f0 00 675.50 5 123187 123192 211.26 000 $20 90000 1 68 2.805.00 5 123187 123192 f9675 $67500 2675 50 000 2675 50 $000 30OD 1 66 2,805.00 5 123187 123192 248.75 22.80500 000 i000 1 BB 3.7%.00 5 123167 123192 SM 25 $2,805.00 000 $2,80500 $2,80500 2000 1 66 1,815.00 5 123187 123192 530.25 23,79500 000 1 68 moo 5 123187 123192 $ 215 83 2 00 000 $1.81500 51,815 00 $000 $000 1 1 68 13,995.73 5 123188 123193 $20994 5950 (950.00 $13,99573 000 595000 $000 68 20,770.62 5 123188 123193 2311.55 000 213,995.73 $000296.76 1 68 8,450.40 5 430$9 43094 220,770.62 000 520,770.62 1 67 700.00 10 83087 93097 $6.45040 Opp $6.45040 $000 000 1. 87 178.00 10 93067 93097 $5 83 $829.70 70 30 $700.00 $ $0.00 1 67 139.72 10 1177 1187 $1.48 37 18 $15980 1820 $17800 2 87 2,000.00 5 93056 93093 555 $139 72 000 $13072 $000 3 67 3.300.00 5 113086 113091 00 $5500 000 22,00000 1 67 1,500.00 5 93006 93093 $25.00 $3.30000 $3,30000 000 23.30000 $000 $000 1 67 75.20 10 1177 1187 2463 S7'�20 000 $1,50000 2000 1 67 2,916.06 10 113787 113197 2Si 275.20 000 $7520 $000 1 67 216.00 10 53184 53194 so S0 2 291 66 $2,91606 5 87 0.00 10 1177 1187 00 $000 $21640 5216.00 Opp2000 52 $21600 $0 pp 17 67 0.00 10 1177 1187 $271 2000 000 $000 So 1 67 325.00 10 113086 113096 $2 77 2000 Opp 2000 oo $000 1 67 7,253.47 10 113068 113098 $54.40 232500 000 2325 f0 1 67 430.50 10 113087 113097 2359$1,37826 25.222.41 65280 $5.87521 26 1 67 9,050.16 10 63089 63099 5387.68 42 82 $430 543650 $000 1 87 11,719.00 10 63089 63099 $87,89 55782 $5,701.92 87466 $6,53646 $2,28156 1 67 948.75 10 63069 63098 2 76 1,05468 $0.437 4a 1 67 750.00 10 31488 31498 $5.63 $598 OB$3,26158 $599 85 44 U83 $593 52 23 1 1,989.00 10 61289 61299 $1492 6756 2596 43 $153 57 $153 6607 940.00 10 31488 31498 $7.05 S1,11900S 17904 2$74702 2 60 0.00 10 1177 1187 $0.00 5662.42 8460 $7$0 02 $19096 219298 1 so 328.80 10 1181 1195 $272 20.00 000 50 00 2000 1 60 117.82 10 43087 43091 $0.98 $326.00 000 1 BD 400.00 10 1177 1187 $3.33 $117.82 0 00 $11780 $1 t 7 82 $000 $0 00 1 60 216.00 10 53184 53194 $180 $400'00 000 $40000 $0.00 1 60 806.00 10 62364 62394 $216.00 0.00 $21600 $000 2 60 400.00 10 62384 62394 $672 $ 806.00 0.00 5906.00 $000 1 60 282.40 10 93084 93094 $2.35 $280.00 000 $000 1 60 800.00 10 62384 62391 SS5S_87 $282.40 000 $282 40 $282 40 $000 1 60 620.00 10 62384 82394 $80000 000 $60000 $000 1 60 445.00 10 62384 82394 53.71 00 000 $620 00 $000 3 1 60 3,300.00 5 113086 113081 $56.00 $445 2445.00 pop 114500 2000 1 60 3,117.91 5 87389 913!)1 $46.77 $3.300.00 $3,117.81 000 $3,30090 1 60 3,117.23 10 123182 123192 $2598 $3,11723 Opp $000 $000 60 795.00 10 113083 113093 26.63 0.00 $3,11791 $ 717 23 $000 1 60 0.00 10 1177 i0 � $7$0 00 0.00 $ $7$000 $000 1 80 4,495.00 10 123185 123195 $0.00 000 5000 $000 1 1 60 4,612.00 10 4783 4793 $3746 538 43 $4,49500 54.612.00 000 $4,49200 $000 60 570.00 10 73186 73198 $4/5 $57000 000 $ 00 $000 11 3 67 3,267.00 15 12189 12103 $16.34 $1,29086 000 $570 $570 00 $000 80 891.00 15 12189 12103 63 12 19608 $ 94 5 1 80 4,208.25 5 101588 101594 563.12 __ $35234 -$4,20825 53 52 S486 520588 $405 16 2485 1 4 - 000 14,20825 $222,169.04 ----------- --..... _. $2,855.69 $205,556.52 $4,33078 $209,88730 $12,28174 OuBriey Dspalmry AowjWm L cold AoquWAion Deprecom Mor4nly Oepaaalan YTO Dote Era Aaun%Amed &mk Value Dale Dqx-- YT06130196 DepreCOW Depecrsbon . --- Runiaerg 1 0 42,588.23 2.084.84 10 10 1177 1176 123177 $354.90 (43.589 .23 .--.. ..._-_.._ _.._.._ _$000 $43,58823 . (61.00000) 1 0 15,718.85 10 1179 123178 123179 17.46 209484 000 209484 000 130.99 15718.85 000 15718.95 000 1 0 6,257.77 10 1180 123160 5215 594480 000 594480 31297 Anela 79W 1 0 46,049.14 10 1181 123181 383.74 3907196 000 3907196 697718 Aastlt 1981 1 0 22,641.53 10 1182 123182 18868 1707937 000 17079 37 556216 Aaasls 1982 1 0 12,491.13 10 1183 123183 104.09 811918 000 811918 431195 Aosta 1983 1 0 2,6".19 10 1184 123184 2203. 145421 000 145421 118998 AsNta 1964 1 0 299.05 10 1185 123185 249 13456 0.00 13456 16449 Mate 1985 1 0 3,383.64 10 1186 123186 28.20 118432 000 1184 32 219932 Masts 1966 1 0 695.54 10 1187 123187 5.80 143.93 000 14393 55161 Atom 1987 (154.86391) -134534.25 -13453425 CsletKM 1989 As"ts 1991 4,009.00 4 21690 21694 000 000 $000 $000 $4,00000 Olatmabis CUU11" Dw Cal PYlsbte 7Vsy 1 126 5,000.00 10 1177 1187 41.67 5,000.00 0.00 5000.00 0.00 11,423.00 4 33186 33190 225.00 $11,42300 $000 $11,423.00 $000 P"waVn FY97 DNatnrr 1 53 $54.57 10 1177 1187 $045 f54 57 $000 $54 57 $0 00 MuKOn Fstsr SUNW 1 53 $0.00 10 1177 1187 0.00 000 000 000 000 - "t*o Ckm Ctesnar 111 1 53 $907.00 5 8189 8493 1361 90700 0.00 90700 000 EWsoW 611ssd 1 53 $450.00 10 123181 123191 3.75 450.00 0.00 45000 000 403-0245 Tnkt=Vsaalln Vacuum 1 53 $822.21 10 72988 72998 6.17 59230 3702 62932 19289 Rmwbw V uppbt Vous 1 53 3499.00 10 43054 43094 4.16 49900 000 49900 000 1 53 3962.00 10 1177 1187 802 96200 000 96200 000 Bawd Furrwhe0 1 53 $307.52 10 83184 83194 2.56 30752 000 30752 000 Stage utay CM 1 54 $75.95 10 1177 1167 0.63 75.95 0.00 7595 000 Tw Dower FY 1 54 $59.31 10 1177 1187 0.49 5931 0.00 59.31 000 Dmk SWOB POOMW 54 $100.00 10 1177 1187 0.83 10000 0.00 10000 000 SWArrp Ma"m Ks 1 1 54 $0.00 10 1177 1187 0.00 0.00 000 0.00 000 L1nsn Cwt VA" 54 $0.00 10 1177 1187 0.00 0.00 0.00 000 000 Can AN I~ Cat / $24.660,56 (1,597.87 $20.43065 $3702 $20.467.67 $24.52255 TaW Cabled ted MMU TOW FedW". snd EqupnWd beWe adtu PAW -As ... _........ $593,867.99 .......... $7,894.76 - $562.50249 '_---___-_ $7,223.45 ---__._---. $569,72594 ...._-'_ $44,47171 ANat DP97 OIC -A ACW"m UwU ACW"= DepocwhM mmft Deprecadw YTD Accumulated &ma Value DpMment Cast LM Date End Date owes auto YTD 6l30I96 Deprecedlon DeprecWm RM1aawV No. Dasapsdn QLW*ty ---. 3,686,287.85 10,663.17 2.302.639 54 708,78784 2,41142338 1,274.86447 a,"%Tdalc tiwldar9 lmgaemtB d Task 252,721.78 1,169.20 142,708 12 11,03896 153,747 08 128,974 70 Land lmpmvwneM Tat" 32,266.36 186.26 21,338 96 2.23441 23,573.37 8,69299 000 0.00 0.00 0.00 000 000 Autonlobse T04b Map? Mow@bWHMP TahM 569,207.43 6.296.69 541,07184 7,16643 549,25827 19,91918 Fwd Equp Tales 192,280.67 1,716.06 161,68019 16,91073 178,59092 13,66975 4,762,764.09 1,781,781.09 20,031.57 20,031.57 3,170,438.65 3,170,438.65 146,154.37 146,15437 3,316,59302 3,316,59302 1,116,171.07 1,446,17107 24fet 97 Oa CapllaI MedlSaa And NO. DescrOw Bodo Furnished K-20 Modde K-20 Modees Traction Ecitipnere Chmoo m Suction Pumps MerusY WON SO" Palade Camra. Suction Linda LN Pack 6 Cardec Gra S Strpmr St means Thermotic Pump Brownian RaaOaA LrM 1M1Ym Cart I Line W1laaetlea Otarbed Tabes Taroc isolation Cads Burrtate Swoon Sets Hospital Bad Hoapeal Bed No"M Bed - Hospeal Bed MaOrosom Rennin TV Conroe Hapaal Bad Matlievem Lapides As FW P.LVd HOWIMI Bed Lapides As Float Pune S. TV WON Moab Brody Bow" Srspmslar Son Rdnoer*w Ho"M Bea Hospital Bad Hospeal Bed Hospital Bed Hoalsal Baa Hnpial Bed Bench Cabinet 30" Dopplat Blood Flow Detector A$WatinO Pump STD Aspralin9 Pw W STD Dine Map 18463 Therm Robs Sled Slop Cars Hide a Cnw 4034269740 Suction tlnd Card lnpseer Taenstry 9aedsca K Therms lkd Electrical Bps Blood Pso m e More Teemlry Yrts9aldn Hoop" Bed Oinks Esvmalen LWd Hospital bed Patalla rasa Micravane aen Acgasem uceM Aalwseion Deprecatm Monthly Depreuatm YTD Accwnuwlea 800 vapor wavey DepM^rnt Cad Lde Data End Date Depreciation YTD 6110196 Deptecalan Depecalm ------ RernwM ........... 1 104 $17,578.00 10 1177 1187 14648 $17,578.00 $000 $17,57800 $000 1 104 194.64 10 101378 101379 1.62 194.64 000 19464 000 1 104 134.89 10 101878 101879 1.12 134.89 000 134.89 000 1 104 1,572.62 10 33079 33089 1311 1,572.62 000 1,572.62 000 2 104 902.40 10 12580 12590 7.52 902.40 000 902 4D 000 12 104 556.56 10 63080 63090 4.89 58656 000 588.56 0 00 4 104 182.70 10 82280 82290 1.52 182.70 000 18270 000 2 104 744.57 10 113080 113D90 6.20 74457 000 74457 000 1 104 6,829.79 10 123180 123190 5691 6.82979 000 6.82979 000 4 104 8,740.44 10 22881 22891 7284 8,74044 000 8,74044 000 1 104 559.64 10 103101 103191 466 559.64 000 55964 000 1 104 848.28 10 123181 123191 707 84828 000 84828 000 1 104 696.35 10 113081 113091 580 69635 000 69635 000 6 161 1,150.00 10 111781 111791 958 1,1500D 000 1,15000 000 1 104 483.28 10 13181 13191 403 48328 000 48328 0 OD 8 104 2,303.59 10 32982 32992 1920. 2,30359 000 2.30359 000 2 104 902.02 10 51782 51792 752 902.02 000 902 02 000 12 161 1,422.00 10 123182 123192 11.85 142200 000 1422.00 000 1 104 2,065.75 10 123183 123193 1721 2,065.75 000 2,06575 000 2 104 3,150.92 10 13184 13194 2626 3,15092 000 3.15092 000 2 104 3,572.53 10 22984 22994 29.77 3,572.53 000 3,57253 000 6 104 1,03337 10 103183 103193 8.61 1.03337 000 1.03337 000 12 104 643.80 10 113003 113093 537 64380 000 643 W 0 W 7 104 901.35 10 22383 22393 751 90135 000 901 35 000 1 104 1,305.75 10 22964 22994 10.88 1,305.75 000 1,30575 000 2 161 3,194.24 10 43084 43D94 2662 3.19424 000 3,194 24 000 1 104 1,010.90 10 53184 53194 842 1.01090 000 1'010 90 000 12 104 623.25 10 63084 63094 519 62325 000 62325 000 1 104 457.49 10 63084 63094 3.81 45749 000 45749 0 OD 1 104 621.46 10 73164 73194 518 621.46 000 62146 000 2 104 3,02531 10 73184 73194 25.24 3,028.31 000 3,02631 000 2 104 3,327.86 10 93084 103084 2773 3.32786 000 3,32786 0 00 2 104 3,327.86 10 93084 93094 2773 3,327.86 000 3,32786 000 2 104 3,353.32 10 103184 103194 2794 3.35332 000 3.35332 000 2 104 3,25218 10 103184 103194 2710 3,25218 000 3,25218 OW 1 104 1,891.93 10 113084 113094 1517 189193 000 109193 000 1 104 85148 10 53186 53196 710 851.48 000 851 48 000 1 104 499.28 10 83186 83196 416 49928 000 49928 000 1 104 1,031.58 10 13187 13197 8.60 92874 10284 103158 000 1 104 1,032.09 10 13187 13197 860 928.81 10320 1.03201 000 1 104 6.089D0 10 123187 123197 5074 5,479.95 60905 6,08900 000 1 104 320.00 10 21588 21598 2.40 23040 2880 25920 60 80 1 104 2,915.22 15 21288 21203 1458 1,39878 17496 157374 134148 1 104 1,289.39 10 91688 91698 967 --- 92833 11604 1.04437 245 02 2 105 962.55 10 93088 93098 722 69312 8664 77976 18279 1 104 451.56 5 92388 92393 6.77 451.56 0 00 45156 000 1 104 53,647.77 10 113088 113096 402.36 38.62655 1,828.32 43,45487 10,19290 1 We 853.35 10 123188 123198 6.40 630.02 7680 70682 14653 1 104 71.07 10 12789 12799 053 47.83 636 5419 1688 1 104 3,229.10 10 21489 21499 24.22 2,156.26 290.64 2,44890 78020 1 104 2,054.00 10 41489 41499 15.41 1,356.06 18492 154098 51302 1 104 1,703.63 10 1177 1187 14.20 1,70363 000 1,70363 000 1 104 262.50 10 1177 1187 2.19 262.50 000 26250 000 1 104 463.44 10 22883 22093 3.86 463.44 000 46344 000 1 1D1 2806.00 10 13184 13194 23.38 2,80600 000 2,80000 000 1 104 730.60 10 113081 113091 6.09 730.60 000 73060 000 1 100 342.53 10 71883 71893 2.85 342.53 000 34253 0 00 TOW Nm" ObWlrce Neat No. Olsdate pmler 1 104 899.00 5 31990 31995 1049 699.00 000 699 40 000 Falai heart ff"dw Suwon wpuhWr 1 104 48220 10 32790 32700 362 27150 4344 31494 16726 93091 Lasa PrNer 1 104 2,025.00 5 61590 61595 30.38 2,02500 000 2,02500 000 123186 011m Fumtm 1 104 1,195.00 10 81090 61000 8.96 636.16 10752 74368 45132 10 011ioa Furniture 1 101 2,229.00 10 101690 101600 16.72 1136.96 20064 1,33760 89140 518.53 Waterloo Una CN 1 104 $346.10 10 123162 123192 2.86 346.10 000 34610 000 4034)507 Procedure Tates 1 104 8,495.00 10 113090 113000 4871 3,263.57 58452 3,848 09 2.64691 403.0257 Pe6Wis crib 1 104 2,380.56 10 10190 10100 17.70 1,380.60 21240 1.59300 767.56 TolatMadlSurO ------ 5780,032.04 --------- S1,44906 ----------- $153,870.00 ---------- S7,75709 ............ $161,627.89 --------- S78,40415 momy Meat Acqum*- _ Usdul Aoquesem Depreclatm Mordhly Deprecestm YrD AocummeMed Book Value Nu Denalpldn Ouwft Dapednrae Cod Lee Date End Date Deprecom YTD6!30196 Deprec"m ._.--- Depraciatm Renesawg 403-0123 Seoe Baby Scate 1 112 940.00 10 123182 123192 7.83 940.00 _---- 000 ......... 94000 ....__.._.. 000 403-0794 Neaeslat 1C Cama 1 112 8,704.74 10 51883 51893 7254 8,704.74 000 8.70474 000 403-0795 Neonatal laJ 1 112 7,910.00 10 101885 101895 65.92 7,910.00 0.00 7,91000 000 40341798 Bei Lght MOM 70 1 112 995.00 10 13187 13197 8.29 995.00 000 995 W 000 TOW Nm" ObWlrce Neat No. Dall"Oon 403-0793 ----Same; r-24 resuscitator 4034)79 Fated hug nWrsla Bed Mak 14 & 8 Erare kpN 4034r250 Yellow Cat 403-0798 FOW nada 403-0246 Falai heart ff"dw 4034)266 BatNnp bed Pulse Omes1a TOWd Nursery rrwrda Wessell Total Obdelrres RM" Awt No. Dasatpldn ................... 403-0040740 ConmrWMml Hater 403-0779 Ped Aerosol Tae 4030780 Bed Mak 14 & 8 403-0781 Mlssoyan Dryer 403-0769 VentMw Baa 2 403-0783 RespmffWw BMW" APS 4034)782 lMraakC Nebufear 403-0784 Pulse Omes1a 40.760785 APNEA Mala - System 5 4034=1 Asad Pod Tere $18,549.74 $15458 578,549.74 $000 $18,54974 $000 -----548,101.31 $41822 YrD Acquseion Useful 130 k Value Acquiseim Depreamem Monthly Ouaaay Dsprtrrrra CW LM ........... 52,81225 Oats End Dae Depreuatm 1 108 $2,812.25 10 1177 1187 23.44 1 108 10,69361 10 93081 93091 8911 1 106 463.44 10 22683 22893 3.86 1 108 1,138.73 10 123186 123196 949 1 108 11,040.00 7 91666 91695 11829 1 108 10,740.22 10 103185 103185 89.50 1 108 9,938.81 10 100689 10699 7454 1 108 518.53 10 13181 13191 4.32 1 108 755.72 10 31789 31799 5.67 -----548,101.31 $41822 Depreciator YrD Acquwaion Uselu1 130 k Value AcgeWm Deprecralm Morerey Ouaaay Dspartrnaa $2,812.25 Cat Lee ........... 52,81225 Dae End Date DepieckVm 1 130 1,405.02 10 13184 13194 12.38 1 130 3,789.89 10 63068 63098 2842 1 130 1,236.93 10 1177 1187 1031 1 130 502.00 10 53189 53199 377 1 130 14,143.00 10 123187 123197 117.86 1 130 445.00 10 123182 123192 371 1 130 854.50 10 53186 53196 712 1 130 6,214.50 10 63087 63097 5179 1 130 2,272.75 10 10288 10298 1894 1 130 3,864.21 10 81090 61000 2098 Depreciator YrD Accumulated 130 k Value YTD 6/301% _._..-.... -____----- Detrecestm ------------ Deprecestor Remmurg $2,812.25 $0 00 ........... 52,81225 _......... SO OD 10,693.61 $0 00 10,693 61 000 463.44 SO 00 46344 000 1,138.73 $000 1138.73 000 11.040M $000 11,04000 000 10,740.22 $000 10,74022 000 4,919.64 5894.48 5,81412 4,12469 518.53 $0 00 51853 000 493.29 $68.04 56133 194 39 542,819.71 S96252 $43.78223 14,31908 Depretlsbon YTD AccurnuWed Roos Value YTO MOM ..._-.-_------ Depreaetm ------------ Depreciation Rerrmur rm0 1485.02 $000 ....__....._ 1,48502 ....__... 000 2,72835 534104 3,06939 72050 1,236.93 $000 1,23693 000 32045 $4524 36569 13631 12,718.95 $142405 14,14300 000 445.00 $000 44500 000 85450 $0 01) 85450 0 00 5,593.27 $62123 6,21450 000 1,81298 $22728 2,040 26 23249 2.05719 $34776 2.40495 1,45926 403-0502 Apw MW" 403-0282 Fm rtsgws TOW Reg malalf TrsmpY open" Roam Bawd Furnished EpuWnW* PuM mgd SG9nnidofna Scop Ten Gann Snap Vao Vaoaan Oxon 9e Sygem EAmnal FOOM Mtq Sind Satamd Sanas EmOOMOM DOMW GedrarieMaW FbwswW Brn OR Mr4wre nt Set Scapa Rd" SW W PWICINC aW Cartat AM Toumiquq SWFMP Cobineft Molt BaSMa Fmc" Maras CLOW CwnoraM200 Stal on Gen Naaanr Rslmatcr LumwtaAWAte LxW Carl Bra cho8aer Says CguaY Lkd VCR Fatopen Rap Applrata SbruP ulfil to CNasr ToW DpaMap Roan Enw9ency Room AWl No. Deacrlpnn 130 130 OVeMn �� 106 106 106 105 106 108 106 106 106 106 106 106 106 106 106 106 106 106 105 106 106 106 106 106 105 106 106 105 106 106 2,015.63 7 103190 1,400.00 3 122169 538,223.43 Aogmmbon Useful Aogu"= Coq LAe Dale --_- 10,767.00 --_ 13,792.84 4,732.91 318.95 1,750.00 435.00 553.00 3,300.00 992.00 1,03000 8,53100 1,506.41 1,798.90 2,050.00 957.48 526.78 376.28 4,974.10 7,03560 3,585.00 2421.03 517.00 6,390.00 3,665.61 325.00 9,443.80 3,899.00 1,285.00 2,138.95 954.76 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 e 10 10 10 15 10 1177 1177 31081 73181 123182 123182 123182 123182 4383 41483 91683 113083 1983 32983 73184 103184 123184 42585 42585 103187 21288 13188 103197 21 79 1.47384 122192 3100 1,400.00 .....-._-$336.06 $32.12648 Deprftmt xt Mminly End Ogle Deprecation 31488 31488 32588 42988 715W 72988 123182 $702,051.40 Acqulgmn Useful Acgulslnon Ouorw Department Cast Lite Date 1167 1187 31091 73191 123192 123192 123192 123192 4393 41493 91693 113093 1993 32993 73194 103194 123194 42595 42595 103197 21298 13198 4898 31499 31596 32599 42999 71596 72903 123192 De;x wt n End Dale 8973 11494 3944 2.66 14.58 363 461 27.50 8.27 8.58 7109 1255 1499 17.08 7.98 4.39 3.14 41.45 5863 2988 18.16 3.88 6293 2749 3.05 7083 2924 964 1068 7.96 Depec,M m YTD MOM 10,76700 13,792.84 4.73291 31895 1,750.00 43500 553.00 3,30000 99200 1,03000 8,531.00 1,506.41 1,798.90 2,05000 95748 52678 376.28 4,974.10 7,03560 3,22695 1,74335 37246 6,04125 2,63906 ---29278 6,79967 2,80706 92542 1.02467 95476 _.__._..:.- _........... S818.96 $92,255.68 Monthly Depecotm Degeclaan YTD 6130106 S26148 1,73532 28031 $0 00 1,40000 000 $3,26608 $35.39456 S2.82887 YTD Deprecatan $0 00 $000 $0 00 SO 00 $0 00 S000 $0 00 S000 $000 S000 $000 $0 00 $000 $000 SOW S000 $0 00 $0 00 $0 00 S35805 $21792 $4656 $75516 S329 88 S3222 $84996 $35088 $11568 S12816 $0 00 Accumulated Depeaatan 10,76700 13,792 84 4.73291 31895 1,75000 43500 55300 3,30000 99200 1,03000 8.53100 1,506 41 1,79890 2,05000 95748 52678 37628 4,97410 7.03560 3,58500 1,961 27 41902 6.79641 2,96894 32500 7,64963 3.15794 1.041 10 1.15283 95476 Book Vaka Remainep .... _.. 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 00(l 000 000 000 45976 9798 1.59359 69667 000 1.79417 74105 24390 98412 000 ------ _----- ...._..._.- . _... .. $3,18447 $95,44015 $6,61125 YTD Amumulated Bouts V" Depreasuon Depecwt- Ren g Bdafd FtarMrMd Lee Pack ECG Motel" Exvmnmbof LOO Ommen mawar VVwd Pmosaw fp dwk Gomw ltrowretic dF X41 Les peak d aelenal BWwekal 11 Bond kerNshed 403-0272 ThumPw W34501 TpnpafffcTwmwldw 4034282 Puha 0 -yaw 403-0509 Cmh Can Tfwwort klkdian Ptarfp ToW EmargemY Roofs LaaaaraM ------ �----- (]fwreey ..__.._-- ___2198 -------- -------- 10177 10167 19.15 2.29800 $000 W OOD 1 135 2,298.0 70 123182 123192 11638 13,965 0 0 13,965 0 000 1 135 13.985.00 10 22883 22893 3.86 46344 $000 463 44 0 0 1 135 463.44 10 92283 92293 6.25 75000 $000 750 0 0 0 1 135 750.00 10 113093 4.91 589.00 $000 589 0 0 0 1 135 589.00 10 113083 61686 61696 5.22 62641 $000 626 41 0 0 1 135 628.41 10 43087 43097 80.68 8,71341 $96797 9,68138 00 1 135 8,88738 10 122 72898 42.75 4,1040 55130 4,6170 1,08287 1 135 5,66138 10 72888 10187 64.73 7,76789 f00 7,76789 00 7 135 7,767.89 10 10177 3270 34.84 2,6130 $41808 300 16125 1 135 4,6M.70 10 32790 42795 1062 708 25 $0 00 00 1 135 706.25 5 42790 9070 16.22 1,13540 $19464 1.33004 83246 1 135 2,162.50 10 90790 7.84 $50176 9408 3595 64 $449.52 .1 135 31.045.36 15 10190 70195 3350 2.23325 $0.0 2.23325 000 1 135 2.233.25 Jade 24(Saone) 122 610.56 __..___.---- ... __... 122 2,254.75 Buaw Meer hm 182 a OMgW wicrtar 182 1 $446.94 646,468.81 32.187.77 348.85658 1 122 352.835.05 403-0097 7rfelco IrfGlDatw 1 1 717.0 _$3,97847 EWM Hoak Up 1 122 1.43905 403-0183 Fax mBd** 1 122 499.0 llaelW Acqu"- LM Dab And (]fwreey Deprlrrrw ACQU"on Con Ito. Dutton ....-__ __-.-^-.- 1 122 4.839.60 IEC Certduge 1 122 2,647.39 Blood Bw* Frig 7 172 2,176.53 Blvd Bove Frig 1 122 1 036.0 Tush" PWW 7 122 2,814.0 IBM PCXT 1 122 375.0 Tads t 122 300-09 D 1 122 489.95 ofte Chir 1 122 650.00 SpeM Photanfww 1 122 1.189.0 Pfec aids Balance 1 122 10,90.0 ion SeW Elect AcOm 1 122 2.147.0 Bowd Ftowhsd 1 122 217.80 Dales Chale 7 122 799.30 Oafs CNr 1 122 20.0 403 -OM Preeb" M ChW 1 122 62700 CMnfkf9a 7 122 451.63 PWW1 122 93664 Miaoccope spwxmr 1 122 136.50 $Blwtrgp fr1eY AOwha 7 122 12.429.56 403-0038 Blood Gee aYc WW 1 122 2,130.0 Se Cwec SderM:e 1 122 258.35 Freezwa Frac 1 122 1,597.50 a Spin (SIS) Ecom 1 122 0.0 Jade 24(Saone) 122 610.56 cart kwRSk IEB BM;ofnb lrpa 1 1 122 2,254.75 Buaw Meer hm 182 a OMgW wicrtar 182 1 122 122 0.0 29,307.M Cauew Cafaeer T860 1 122 600.83 403-0097 7rfelco IrfGlDatw 1 1 122 717.0 EWM Hoak Up 1 122 1.43905 403-0183 Fax mBd** 1 122 499.0 403-0267 PCem SuPPM 1 122 300.0 Pres DW V Model 1 122 30.0 Duch lkWkHMmm^mp 1 122 30,00 Fleetw 1 122 300:00 BMulbBC FMM war BBC Fl 1 122 730.60 res DOMm radio 1 122 990.60 Oeea��vm 1 122 5,455.30 A 1 122 105,880.40 DwrmNAXLI RC Dwrnrlaiarl RCRT AneYyaer 122 4,508.0 Oafrrrfafan sehp wata 1 t0 70 70 5 5 10 10 t0 1D 10 70 10 70 10 10 10 t0 10 10 t0 t0 70 10 10 10 10 10 10 10 10 3 5 10 10 10 t0 10 70 10 10 10 Deprecotm MomhM End Date Depw:iwkxf ------------- 40783 73185 73185 43087 43087 92883 10177 93084 123176 123182 93084 10177 123176 123181 10176 123187 10183 123176 123176 113083 51779 113079 92487 1177 11982 32486 32496 123176 101589 122189 121569 1177 1177 1177 1177 113181 0187 13189 121369 11990 40793 73195 73195 43097 43097 92893 10187 93084 123186 123192 93094 10187 123186 123191 10186 123197 103193 123186 123186 113093 51789 113009 92497 1187 4300 11992 32496 3250 123186 101599 122192 121594 1187 1187 1187 1187 113091 0197 13199 121399 1190 Depreciatim YTO Accumulated Bo Valu: YTD snolm Depeaalan DgxwW n Rertwwrq 4033 2206 18.14 1727 4690 313 250 408 5.42 991 9083 1789 1.82 666 167 523 3.76 759 114 103.58 1775 224 1331 00 50 1904 00 23615 501 5.61 3211 749 250 250 20 2.50 6.09 826 4092 794.10 3382 4,83980 2,647.39 2,176 53 1.036 0 2,814 0 37500 30000 48995 65000 1.189 0 10,900 0 2147 00 21780 79930 20000 56475 45163 91064 136 50 12,42956 2,130.0 26835 1.43753 00 61056 2.28475 OW 28,337 44 ---60063 45441 1.43995 49900 30000 300 0 300 00 300.0 73060 594.63 3.60096 62.73390 260414 SODO $000 3000 3000 $000 $000 $000 $000 $000 $0.0 $000 $000 $000 $000 $000 $6225 $000 $0.0 $000 30 0 $000 $000 $159.97 $000 $000 $000 $000 $0.0 3000 $6732 3000 $000 $000 $000 $000 $000 $000 $99.12 $49104 $9.52920 $40584 4,83980 2.64739 2.17653 1.036 0 2.81400 37500 30000 45995 65000 1,189 0 10.90000 2,14700 21780 79930 20000 62100 45163 91064 13650 1242956 2.13000 26835 1.59750 00 61056 2284 75 OW 28,337 44 60063 52173 1.43995 49900 30 0 30000 30000 30000 73060 69375 4,020 72,263 10 3,00996 ------------- OW 00 OW 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 0 0, 00 OW 00 000 00 OW 00 OW 22617 00 00 OW 00 OW 00 00 29685 1.36430 33,617 30 149882 Total laboratory EKG Aad NO, DaecnpbM TfAd EKG UbuWW L Cat Bcan A"d He DoscrOw UY�acond ffmhm Phwttam Ukra$aard Scavorig Probe uWaw Ktd Frage No Tap PtrMUM MrnnagePh 403-0508 Laepedr-5 TaW Ubvwu d Loosw Equprard (X -Ray) Asset No. Desc+ipron $202,819.88 _=111 1,646.86 1:115154.60170 =-_ $10.81474 $165,61644 -__ $37,003.44 fi3:3y Leesw Eq 1Nrasnno uyaan Acquodw WaU Acquwebn Depecahm Monhly Depecalm YTD Aecu Wed Rook VNue Pkmbw* CT Snnwr Maud Eq LN Loosed Eq Date End Date DeMecebon YTD 6!-40/96 Depem" Depacwm Rerrasrtp paparintera 40390 Cad 1 127 53,900.00 5 41890 4189D 1 126 5438,130.61 5 31191 31196 1 125 $000 SD 00 1000 5000 $0 00 126 514,462.50 $0.00 40390 40395 1 126 $14,500.00 5 101591 101596 11493 1 126 5332.50 10 112979 112989 2.77 ,"P., m 11ceM ACquaMm DepwWm End Date Mm811y DeprecWm Deprecatm YTD 6730196 YTD Depeaatim Aa kdeo Depecat- Rook Value Reaaawq Qum* DoWment Cod Lde Date 10 53185 53195 59125 S70,94968 000 $70,94968 $000 1 129 $7094968 52089 52099 10.72 $90048 128.64 $102912 $39988 1 129 $1,429.00 10 9889 9899 40.22 $3.619.80 48264 54,10244 $1,25956 1 129 55,36200 10 72 72300 5.18 $367 78 62.16 $42994 $260.08 1 120 $690.00 100 90 80300 4.19 $297.49 50 26 $347 77 $21048 1 129 $558.25 7 113190 113197 38.75 $2,59625 465.00 $3,06125 $55525 1 127 $3,616.50 __... $690.29 $78.731 48 $1,18872 $79,92020 $2,66523 502 605,43 Leesw Eq 1Nrasnno uyaan Leered Eq Lammou d Eosin Took yaw Eq CT Sonar Loomed Eq Pkmbw* CT Snnwr Maud Eq Tayndyp WW Carrwn Loosed Eq Motonzed Vetwd Taut Lmesed Equpnwa Ra6dopy Aad NO, Dowdo- Frlrwa gd X-ny dupW&W Foss Fwn Stamps cabwW M6 way him prouosor xmV,,"I9rd 10x12 $604,693.35 Monthly Deprecation Acquaillon Useful Axumuated Aopusalon Depecahm quanliry oewkrad Deprecation Cast Life Remaawq Date End Dale --- 1 -----^- 127 $133,275.00 5 40390 40395 1 127 53,900.00 5 41890 4189D 1 126 5438,130.61 5 31191 31196 1 125 $425.24 20 52891 52811 1 126 514,462.50 5 40390 40395 1 126 $14,500.00 5 101591 101596 $604,693.35 Monthly Deprecation YTD Axumuated Book Value Deprecod- YTD 6/30196 Deprecation DepecWm Remaawq ---._---1,999.13 $119,94780 13,327.20 $133,27500 $000 58.50 $3,510.00 39000 $3,900.00 $000 6,57196 $395,39760 42,733.01 $438,13061 $000 159 $95.40 1900. $11448 $310.76 216.94 $13,016.40 1446.10 $14,46250 $000 217.50 12,288.75 2,211.25 14,50000 000 $9,055.62 ..___._.. $544,25595 ------------- $60_126.64 _........... $604,38259 .__.._. $31076 Depeaatm YTD Aop"m U6dul Aogtewtan YTD MOM Depecretm DepecWuln Morltltly CAMM4n, Dpadnwa _ __._..._._-- _.__....___ $39670 Cat Los ....... $39870 Date End Date Depre win _...... _ ---_ 7 126 $39870 10 1177 1187 3.32 1 126 $600.00 10 1177 1187 5.00 1 126 $105.50 10 1177 1187 OAS 1 126 $23200 10 122978 122988 193 1 126 $13,791.00 10 92779 92789 11493 1 126 5332.50 10 112979 112989 2.77 Depeaatm YTD Accumu Med Book VMue YTD MOM Depecretm Deprecom Remaewlp ....... _ __._..._._-- _.__....___ $39670 000 ....... $39870 $000 5600 00 000 $60000 $000 $10550 000 510550 $000 $23200 0.00 $232 W $000 $13,79100 000 513,79100 $000 $332.50 000 533250 $000 403-0274 403.0275 Wig divider taaa9s 7 1 126 126 Peg" Sim mamy Wd e4u 1 1 126 128 mw magmptw Mord pegica 1 126 IBM 4210 FVW 1 1 125 126 Probes 119t" chmi1v pole t 1 126 126 Eam tglt 7 126 Table Desk dUMW POO" 1 128 Fee (44WARK) 1 126 125 Desk orgW�1 Fee Cabinet (44aoer) 1 - 126 Fee Cabiral(44MAw) 1 - 126 Mohee OATWM ion 7 7 128 125 IBM 52872 CRT 1 126 Conptar Oak 1 126 SOWA mte gnd WNbe 1 128 *KMI" 4612110893 1 125 Tw Way now 1 1 126 126 LOW 11mdwm 9rrd 1 126 IBM dote" maolt 1 125 Decaplwre KVP make mod 232 Portable SelOMOIdN 1 1 125 126 stem 6h*^V 3 126 Told Radial" Ptlamw.Y Asset 110. Dascrptibn 4030767 Dory ode 4030788 Lslrr 11ve hood 4830789 IBM v4udeaM gpaats Pkrmpro I 4030792 Drug cart 4030791 Dak 2 pedMlal 4030790 Fee cabinet 3 Orawr $67000 $903 25 $918.83 166,594.78 $1.53901 $1,659.91 $10,687.50 5318.50 5463.44 $100.00 1393.00 1300.00 $15000 $300.00 $300 00 $2,49200 $1.47000 $375.00 5539.61 $14,182.00 $34000 $646.00 $610.51 $230.63 $488.25 $2,172.25 5548.50 $1,215.00 _--$M,065.87 10 123181 123191 5.58 $67000 000 $670 DO $000 10 103183 103193 753 S90325 000 $90325 $000 10 123183 123193 7.66 $91883 000 $91883 SO 00 10 53186 53196 55496 S66.59478 000 $66.59478 SO OO 10 83186 83196 1203. $1,53901 000 5153901 5000 5 73187 73192 2767 $1,65991 000 $165991 5000 10 41588 41598 80.16 $7,695.34 96192 $8,65726 $2,03024 10 81988 81998 239 $24942 2868 $27810 S4040 10 22873 22883 386 $463.44 000 546344 5000 10 1177 1187 0.83 $100.00 000 S10D.00 $000 10 1177 1187 328 539300 000 539300 $000 10 1177 1187 250 $30000 000 $300.00 5000 10 1177 1187 1.25 $15000 000 515000 SO 00 10 1177 1187 2.50 $30000 000 130000 SO OO 10 1177 1187 250 $30000 000 $30000 $000 10 62363 62393 2077. $2,49200 000 $2,49200 $000 10 83185 83195 1225 $1.41000 000 51,470 00 $000 10 92283 92293 313 537500 000 $37500 $000 10 33189 33199 405 S35235 4860 S40095 $13886 1177 1187 118.18 $14,18200 000 $14,18200 $000 10 10 61080 51090 2.83 $340 OD 000 $34000 11000 10 123182 123192 538 564600 0 OD 5646 00 $000 10 113083 113093 5.09 $61051 0.00 5610 51 SO 00 10 53184 53194 192 5230.63 000 $23063 $000 10 101083 101093 4.07 $48825 0.00 5488 25 SO DO 10 50790 50700 16.28 51,20546 19548 $1,40094 577131 10 50790 50700 410 $30340 49.20 $35260 $18390 20 122990 122910456 5300.96 5472 $35568 $85932 ... ....... $ . 7,046.93 I $120,693.24 $1,33860 $122,03184 54,031.03 Monthly Depreciation Acgaib0n Useful Acqud4W Depreciation 0ua" DqmUnWK Deprecation CNA We ode End Date 1903 137 -_- 5600.00 10 ____ 1177 $599.00 1 137 $2,284.00 10 63082 61187 9092 1 137 $599.00 10 123188 123196 1 137 1112,500.00 5 22699 22693 1 137 $1,930.43 10 123086 123098 1 137 $300.00 10 113083 113093 1 137 5300.00 10 1177 1187 Monthly Depreciation YTD Accunwated Depreoidron YTD 6/30196 Depreciation Deprecation ._._.__ 5.00 560000 000 560000 1903 52,284.00 0.00 $228400 4.99 $599.00 000 559900 17685 $12,500.00 000 512,50000 1448 $1,390.07 17376 51,56383 2.50 1300.00 000 1300 00 250 $300.00 0.00 $30000 134 kVae Ren ng $000 $000 $000 sow $36660 $090 $000 $22535 $17_873.07 $17376 $18,14683 $36660 $18,513.43 _ _ ___ Total Pha"nWV IV Tromw Monmry peprecalan YTD ACcumWMM Hook Valor AcquMOon UedW AWuwlion Depracalan End Date Dnprecidion YTD 613096 Deprecation Deprecation Reinaawy Areal Depemart Cod La Dale _...._.... .......- No. Descrown awt4Y 2790 882 ...__.___.._..._....__...._.____. 0 OD S1.05192 $000 elusion cordrulw 1 138 92 10 2780 83182 83192 1576 $1,89086 000 $169086 1000 IVAC CMnds 3 138 $1,057 11,890.86 11,272.80 10 10 83182 63192 1061 51657.92 51,272.80 000 1127280 fb0440 $000 1000 IVpaswrdptanacr 2 138 138 5604.40 10 83183 83193 504 $60<.40 000 IV stands 4 1 138 $2,150.00 10 42386 42396 17.92 $2,15000 000 $2,15000 SO OD W&y p6p mpdst 4 138 54,800.00 10 83087 63097 40.00 (4.32000 480 00 S4,1100 00 $000 mwo pump 4 1 13B 51,900.00 10 83187 83197 15.83 $1,70970 19030 51,90000 5000 Matto pruw 1 $13,957.00 10 12888 12898 104.68 $10.04927 1.25616 $11,705 43 $2.65157 PCA pumps B Shoda 4 135 136 $960.00 10 31488 31498 7.20 $69120 8640 $77760 $18240 YlkwiOrn Pip 1 136 $4,160,0 10 101488 101498 31.20 $3.01201 37440 $3,30641 $77359 kwo PUMPS 1 130 112.900.00 10 31789 31789 21.75 S1,89225 261 W (2,15325 $74675 Mian 1A pump 1 138 52,900,0 10 31789 31799 21.75 $1,89225 26100 $2,15325 $74675 Macm mceel 4 PUMP 1 $6,500,00 10 42889 42899 48.75 $4,143.75 58500 54,728.75 $7,77125 PCA uiklsionpump 2 13B =__ _534,68641 =____ S3.49426 __::....8087 ==$6-51231 . TOW IV Theraw .�_:. .0..:� __=_-=_5348.28 Phyatcst Thww+ AoqumMw Ufetui Acqu"M DeprwAWM Mo6ty DeprecWmn YTD Accunktred Book Value Quertty Dprlmart Cod Lik Dale End Date Deprecation YTD 6130M DepreoWmn Deprecudw Remauwp No onanpbon --Lo 132 $0.00 10 0.00 50.00 000 $0.00 $000 BW Whirlpool 132 50.00 10 0.00 $000 0.00 sow $000 Hah BoyW 1 132 $463.44 10 33163 33193 3.86 $463 44 0.00 $46344 $000 LaIIrD Exv(w1 132 $950.00 10 93087 93097 7.92 $855.30 9470 $950 00 $000 Rsaporn0 It Urd 1 $0.00 10 0.00 5000 000 $000 $000 Hol Pads Wid=D Mor 1 132 $507.75 15 61088 61003 2-54 $243.74 30.48 $27422 $233.53 Parallel Bre 1 132 $0.00 10 0.00 $0.00 0 .00 000 $000 Prafn urd lath earl 1 132 0.00 $0.00 000 5000 $ $000 CourM Cool psok 1 132 132 $0.00 $2,529.70 10 10 113084 113094 21.06 $2,529.70 000 $2,529.70 $000 4034)207 TN Trac Traction taro 1 132 $2,565.00 10 53181 53191 2154 $2,585.00 000 $2,58500 $000 Ultrasound Rich Mark It 1 $514.00 10 93087 93097 5.12 $55290 6110 $61400 $000 Mmark asarcae bWVcle - 1 132 111,720.OD 10 33189 33199 12.90 $1,083.60 154.80 $1.23840 548160 H LO keatmala tam 1 132 1 132 $345.47 10 93087 93097 2.88 $311.02 34.45 $34547 1000 Whlpod apt 132 $273.00 5 53189 53194 4.10 $273.00 000 $27300 $000 Eomatwm vioao we 1 132 $360.33 5 63089 63094 5.41 5360.33 0.00 $36033 $0.00 Edncaboral Myo tape 1 132 $320.00 5 42689 42894 4.80 $320.00 000 $32000 $000 WtuuadMk 1 1 132 5381.50 5 81988 81993 5.72 $381.50 0.00 $38150 $000 $000 WhaidM#IV potos 132 52,767.00 10 10177 10187 23.06 52,767.00 000 $2,76700 Board Farkahed 1 1 132 $777.00 10 123182 123192 6.48 $777.00 0.00 $77700 SO OD $0.00 l+K leg astaramn fade $1,215.00 7 123188 123195 13.02 $1,215.00 000 $1,21500 Polars dhaound RichM 1 132 $528.18 10 121286 121296 4.40 5528.18 0.00 $52018 $000 403-0252 Mabruo poll rust 1 132 132 $535.10 10 22469 22499 4.01 $352.88 4812 S40100 $13410 Baas tone ust 1 $1,607.33 10 53186 53196 1339 $1,607.33 000 $1,60733 5000 Tradion lnadWM t 1 132 132 $0.00 10 0.00 $0 00 000 $000 f0 00 2000' Wlkrlpod Chir 403-0279 TVNCR CondWRIAion 1 132 $599.99 5 52390 22984 52395 22994 9.00 127.77 $59999 (12,074.27 000 1,533.24 $59999 $13,60751 $1,72440 403-0194 Odlton tree&" S EKG 1 131 $15,331.91 10 91890 91800 782 $547 40 93 B4 $64124 $641 24 $40111 900872 Tmcbm Egnwrlrt 1 132 $1,042.35 10 --- '--------- -______ _ - $30680 $30.42856 $2,05073 $32,47931 $2,97474 S35=454.z05 TCW Ph7amst ThWaW _--_ - _ _-_-_ __-- AnestlMra •=3iZ====- AcgosaMn l/sdW Acqumfim Opreoabon Monty Depreciation YTD Ac mulsteo 8(u Vane And Cost Lao Date EM Dar Deprecation YTD 6!.1096 DeprecWmn Deprecatmn Rernaneg fb. Desorption 011rtay DWodmera -----Labrp MM" ,�. 120 455.00 .- 10 72481 72491 $3.79 5455.00 $000 115500 $000 000 1 1 120 1,487.20 10 113082 123092 12.18 1461.20 OD 000 000 146120 38200 000 Potable (OOM Walk tare 1 120 362,0 10 123182 123182 -123192 123192 3.02 115.83 352 13899 00 000 1389900 000 Harkormd It AIMS Mach 1 120 13,898.00 10 22964 22994 1158 139000 000 139000 000 FourM gPorizar 1 120 120 .1]90.00 4,200.00 10 10 5683 5593 35.00 4200.00 000 421600 000 OD Mrdor Cardiac racordr 1 1 120 5,216.20 10 62686 62696 43.47 521620 000 521620 0 74929 NrkomAneMlnsaM Made ad P11Me OIondw 1 120 2,828.85 10 42889 42699 21 22 182492 254 64 201956 Pula mwor dwm oro mpeortwlw V"md mor wr Tad ArwN tlww Rtnelp WOWM ASW Fa. DeWipia^ IV back Pwtw: cwd wlprnw VCR EMWW wlpkew sorri VCR Sk m PM)9CWr Moble R" on Stomp elwkws/orwdws TOW kwMo ry W NO Fee cebmd 2 dr Modules wwk ashes Mod wteral $Ms Roam de10w Ong un Dnk two ped OWksr*B Be$ S Rom$ Projnwr Blorop uUkww Resides" bsh Over bed Win Shcs,WusuM,hb .WM Recwwr clots OPT scope 6 cllwpw PMWtt M 120 236.00 10 63069 63099 120 5019 10 63082 63092 120 10.580.00 10 72790 72700 $3.58 --- $41,156.44 End ---- -- -- o - 0,00 429.50 1.96 164.64 2352 18816 4984 4,55 546.19 000 54619 000 79.20 5623.20 95040 657360 3986 40 ---------- --------- $331.79 (35,142.35 5722856 $36,37091 (4,70553 Scale Ill whom 4ws ecsls Srwwr aonwnods ores" Lormoo msd cwt nunl 430 Calor leskatdwes mm Rewwr clwk Adlwk'a'ork Obin DnV dMwWsrwwn Snkm cararw word processor Fn V016 dr Fn coUna4 4 Or Rehpwwor kiydwre Auld ryrrgorrwlw samck h bowl Cwd mpnw 403-026514D XT wmpilw W"n & Pdntw Mommy Depreawwrl UseM Deprmobw AGW"ion otlw * Depwbrlwe -- -- $000 ACQuia4wh Cat Lire $3.58 Date End ---- -- -- o - 0,00 429.50 o 10 - 0 4783 0 4793 S 102 102 400,00 10 103183 103193 $ 102 500.00 10 22984 22994 1 102 422.94 10 63084 s094 1 102 1,710.75 10 73184 3194 7 73196 1 102 07.30 10 13188 214 7 102 812.97 10 13186 13196 1 102 1,332,0 10 53187 53197 10 $6,31546 $15.0 $1,B�� 00 $189559 00 1 214 1,895.59 10 Scale Ill whom 4ws ecsls Srwwr aonwnods ores" Lormoo msd cwt nunl 430 Calor leskatdwes mm Rewwr clwk Adlwk'a'ork Obin DnV dMwWsrwwn Snkm cararw word processor Fn V016 dr Fn coUna4 4 Or Rehpwwor kiydwre Auld ryrrgorrwlw samck h bowl Cwd mpnw 403-026514D XT wmpilw W"n & Pdntw Mommy Depreawwrl YTD Deprmobw YTD B! -OM - Deprederwn -------- .... ---- $000 -- -- $000 000 $3.58 $429.50 0 0 $3.33 S400.00 000 $5.0 $60000 000 $3.52 $422.94 000 $14.26 S1.710.75 000 $6.73 $00730 000 $511 S61297 000 $11.10 $1,198.0 133.20 AccuasWed Deprecom (0.00 $42950 5400 OD $800 00 542294 61,710 75 S07 30 $61297 $1.332 DO _---- -------____-_-___. $52.63 $6,182.26 $13320 $6,315.46 Boole Vnw Renwwlp -- $000 $000 000 000 $0 OD 0.00 000 00 000 $00 Mor4wy Depwwh YTD na Accumulated Book Vakm Acpenlo0 UsehA Acoat* Deproc"- End Dale pepreawba YTD B/d0196 DepreGwlon Delxecwkon Remanaq DepwUTWA CW IJe Data Downy --10 ----- 63.39 ---- 123183 123193 053 $63.39 000 - 000 $6339 S32373 0 oo s000 1 1 214 214 323.73 10 63081 6�3 S4.5$277 32373 •$548.13 0 0 $54813 $000 2 214 548.13 10 8" 0.0 $0.0 00 $00 00 1 214 0.0 10 1187 $15.0 $1,B�� 00 $189559 00 1 214 1,895.59 10 13182 13192 1187 0.0 00 0.0 $00 1 214 0.0 10 1177 1187 $0 0 $0.0 00 S000 00 1 214 0.0 10 1177 1177 1187 $0.00 000 $0 0 $000 $22154 1 214 0.0 50.0 10 15 27288 27203 $3.06 9174 $291.74 36 72 000 $32846 $5.700 OD 1 214 2U 5,700. 0 10 123`177 123187 $47.0 $1565 $5,700 00 $1900 $000 19 19 214 1,900.00 10 123177 123187 51.9880 00 $199850 000 1 214 1'998 50 10 73184 73194 13197 $5 71 $61659 6802 $68461 (090) 1 214 664.61 10 13187 12999 52 47.42 3336 $20010 5 46 $0 000 1 214 ..78 37124 10 12989 71883 71893 $2.0 5348.28 $3 0 0 5340 TB S63413 s000 7 274 348.28 634.13 10 10 102381 1 5528 3413 000 0 0 $1 300 0 0 1 214 1,35000 10 123185 123195 11.2 $15 . $1.70 0 00 00 00$000 3 10 214 214 0.0 10 1177 1787 123192 000 $24.79 $2,875.0 000 $2.97500 000 000 1 214 2,9750 10 123182 83181 83191 (1439 (1,7270 00 $17270 1 214 7,727.0 10 10 51782 9102 __ S2.65421 000 2 214 027 53 2,654.21 10 113086 151307902 $27 $2.654 21 0 0 0 000 590 0 000 1 2 214 214 990.0 10 933086 93096 i8 25 $4.72 5990 5566.10 0 0 556610 0 0 1 214 588.10 10 93084 93094 $3.30 $277.20 39.0 $316.0 $12263 4 2 14 439.43 10$521 7789 7799 83199 55.55 $455.10 70 .2 1830 0 0 1 214 740.0 10 83189 123188 123193 38.99 3599.20$171 0 0 (599 20 49 000 1 274 599.20 5 10 1177 7007 $41000171 49 00 $41000 1 1 214 214 171.49 410.0 10 113081 113091 $343 0.42 $410 0 $58499 000 $58499 $000 1 214 584.99 10 53186 53196 54.87 $2345 $ 15 281 40 55 $67 $80545 1 214 3,127 0 10 41489 41499 $672 $591O6 5591 $22451 1 214 896.51 10 22389 22389 $333 000 340 0 $000 1 214 40 0 10 103183 103193 28 04 868 0.00 1869 0 0 0 1 214 1869.0 5 122789 122799 DP97 0" pespplm Map MowaoN-MWP TO" $8�60712=99_68802SM_38884__ 596,54659 5 11990 11900 10.67 71100 000 000 71100 20000 000 000 DWml n Rnrwnkq .._..__- 1 414 711.00 200,00.200,005 902,512.81 31990 31995 3.00 20000 990.88 0.00 99088 000 103-0284 � 1 214 990.86 61190 60195 14.86 ............. ------------- ........... 403.0277 Larir RCYW 1 214 .-_-- - $33335 $34,957.71 560631 $35,56405 $1,66289 $37.246.94 Tari tan m career ........... Damw Aisles •• .....= ACQU"W DOWWA W MordOb Depmcotm De9raaiYYn RWnwrrp AO4r+aew umM Dsla End Date Deere----- papreciYm ANaI p$ps1lrrMf COY Les ____...___._ _._.._.-________ ------------ Na DaSaplon _-- ----_ ---- 1187 1516 $1,81900 $000 $7,81900 $000 FV1997 1 112 $1,81900 10 1177 1187 18 39 2,206 51 000 2,20651 000 000 BoarO FurnYtao 1 112 2.206.51 10 1177 34.71 4,165 00 SO OD 4.16500 Nunay PWPO s 1 106 4.16500 10 1177 1187 113090 2.14 25711 50.00 25711 000 722 B8 Bowel kffn hW 1 108 257.11 10 t 13080 93088 93098 394 378 22 $23.64 401 BB 40186 122.69 ObMYrk:Y rie• Crysnpion 6 02 swan 1 130 130 524.75 524.75 10 10 93099 93098 3.94 8.74 37822 943 95 $23r4 $52 M 99639 5261 GNrDpion 0 02 Sawa 1 130 7,ON.OD 10 113087 113097 3.90 34710 $2340 37050 14925 Brave 02 CarlCararslar 1 130 519.75 10 27089 21099 3.90 347 10 $23.40 370 50 14 925 CNnpm 6 02 Swan 1 130 518.75 10 21089 21099 34710 S2340 370 50 148 25 ClWrpm 602 SOW 1 130 519.75 10 21089 21099 390 34710 $23.40 37050 14925 CrrrVm 602 Saver 1 130 51975 10 21089 21099 6158 5,91170 $369.48 6,28118 1,92996 COMpIOrr 602 Swaf 1 130 8,211.14 10 123188 123198 4.45 48353 $$0 70 St0 23 23 2 ry 9� 1 130 533.50 10 63087 83097 462 61 46261 000 Shap Apra YorYor 1 130 462 67 10 33079 33089 2.80 33545 $0.00 50 00 33545 000 4030730 UCrap 1 131 335.45 10 61279 61289 11193 8.31 987 52 5000 99752 009 000 WtwdTMt Ra 1 131 997.52 10 11183 32879 32889 59A5 7• 133.72 50.00 7,13372 60434 000 C,nd MA -1 aMwm 1 130 7.133.72 604 34 10 22880 22890 504 604 34 785 65 $0 00 $0 00 78565 000 qka 1214 yarYpr 1 13D 130 1p 123182 123192 6.55 3.61 43296 009 USra Saaw Dail Bots 1 130 432.96 10 1777 1187 3.15 37825 378.25 $000 5000 37825 000 ReapranYM Beaten AP5 130 378.25 10 123183 t21187 4.58 $55000 000 Bsrsrs0 AP5 1 131 $550.00 10 1177 4.78 357400 0.00 $55000 $000 50 OD EKG Mahar EKG Maoarr 1 t 131 $574.00 10 73181 73791 1187 2.75 $32988 0 DO $32980 88 $000 $000 Tow 4k r7aY M t 137 5329.86 1p 1177 32993 3.49 $418 21 D 00 5418 21 $418 $000 Sears alOr S 1 137 $418.21 10 32983 22698 22893 75.00 $6 389 00 000 $G,389 00 $2.414.59 $000 KOosk F nsor 7 1]7 36389.00 5 22893 20.72 $2,414.59 0.00 S68632 S30868 P1NtnrprO OAST 1 137 32,111.59 100 69 43098 7.46 $64156 44.76 5473.19 $13331 Lett bM rsMs 1 137 599500 92388 92399 4.55 $415.89 27 30 $56235 f73265 MpoiAsr hoYG 7 1]T S606.50 10 10 93998 93089 5.21 $531.09 31.26 0.00 $37500 $000 NUWQ Propane B&Bay OeakUP 1 737 $37500 5375.09 70 123182 123792 3.13 $37500 55,07721 000 $5,07721 $009 Nsraolla aabmd 1 137 $5,077.21 10 83184 B3t94 42.31 TMmrO4w's RicMta 1 132 $134.77 546,80957 $692.82 547,50139 33,4 2326 $50.924.65 DP97 0" pespplm Map MowaoN-MWP TO" $8�60712=99_68802SM_38884__ 596,54659 21.034.623.45 f • =_= Mor4nly Dgxw4W W YTD = =5936,07666- AaurkssleO Book V" Sion U"U Alxp ut on DePWIM a' Eno DYa DeprecrMan VT05/30M DSWWA M DWml n Rnrwnkq .._..__- 0�7ar4q marl Coo. L/s DYe -------- --------^ 8,27377 ___...__.._64.7 . 684,73031 37,782.50 902,512.81 94.563 7C 997,376.51 MW MogEMCwe CwW Taub Uwy Eq*ffWd Taub 37,246.94 604.693.35 1,639.316.60 1,639,316.60 333.35 34.957 71 9,065.62 544.255.95 17,672.74 1,443,943 97 17,67274 1,443,943 97 60634 35,56405 60.12664 604,352 59 96,515 46 1.542,459 45 96,51546 1.542.459 45 1,66269 31076 96.85735 96,657 35 lljla� LEASE AGREEMENT ";� THIS AGREEMENT is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as"KIB"), and SISTERS OF PROVIDENCE IN WASHINGTON d/b/a PROVIDENCE HEALTH SYSTEM IN ALASKA, a Washington non-profit corporation (hereinafter referred to as "Providence") WITNESSETH: WHEREAS, KIB is the owner of certain real property, and certain equipment located in and about the Premises known as Kodiak Island Mental Health Center ("Mental Health Center"); WHEREAS, the Borough, in the interests of sound fiscal management and to ensure the continued availability of a Mental Health Program ("Mental Health Program") in the Kodiak Island Borough managed in a professional and efficient manner, has requested Providence to lease the Premises; WHEREAS, Providence owns and operates a number of health care facilities, that are operated in keeping with its philosophy, mission and values; and WHEREAS, Providence desires to lease the Premises and the Equipment from KIB, subject to the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows: LEASE AGREEMENT - Page 1 0112 AGREEMENT TO LEASE: KIB agrees to lease to Providence and Providence agrees to take from KIB, the Premises and Equipment described herein, for the term and upon the terms and conditions set forth in this Agreement. 2. PREMIE : The real estate which is the subject matter of this Agreement is described as follows: That certain office space located in various buildings located on Lot 5A-1 A, Military Reserve, U.S. Survey 2538 according to plat 95-04 recorded in the Kodiak Recording District, Third Judicial District, State of Alaska and more particularly described below. h Mental a Building A, Offices and Dorm l Building Apartmeak Island nts C throughG. b. Building B, Kodiak Island Borough H through Health th Offices and Dorm Building Apartments C. Building A, ,Kodiak Island Borough Mental Health Cottages. including all buildings, appurtenances, and improvements thereto, as well as the existing parking areas as identified on Exhibit A, attached (herein referred to as "Premises"). 3 Ent IEMENI. The Equipment which is the subject matter of this Agreement is all of the Equipment presently located in or on the Premises, in an "as is" condition, and all Equipment to be acquired during the term of this Agreement. 4,1 TERM OF AGREEMENT: The Premises and Equipment shall be leased to Providence by KIB for a term of approximately ten (10) years, commencing on January 2, 1998, through and including April 20, 2007, unless sooner terminated as hereinafter provided. ence is not in default under this Lease Agreement, 4.2 Provided that Provid Providence shall have the option to extend this Lease Agreement for one additional term LEASE AGREEMENT - P"g" 2 d 12 of ten (10) years by providing KIB with 180 days prior written notice. The extended term shall be on the same terms and conditions of this Lease Agreement with monthly lease payments to be established by negotiation. 4.3 At the expiration of the term of this agreement or upon the termination of this agreement as provided for herein, Providence shall surrender possession of the Premises and Equipment to KIB as set forth under the terms of this Agreement. n�v�eGNT Gc HEDULE. The fixed annual lease payment during the 5. L rn term of this Agreement shall be Ten Dollars ($10.00 ) payable by Tenant on or before the first day of each contract year in advance, at the office of KIB or at such other place designated by KIB, without any prior demand therefor, and without any deduction or setoff whatsoever. g, TI ITI .. Providence shall arrange and pay for all utilities and other services to be furnished to the Premises, including gas, fuel oil, electricity, sewer, water, prorated between the parties as of telephone, and garbage collection. All utilities shall be the effective date of this Agreement. ll use and operate the Premises for a mental health 7 t�F: Providence sha program and for any additional health care related purposes as may be appropriate. Providence shall operate and maintain the premises under the Af Heaassth and Social ka Statutes and in accordance with the standards prescribed by the Alaska Department Services. 8. gU R5T ENJOYMENT: KIB warrants that Providence, upon paying the rent and any other charges as provided for in this Agreement and upon performing all other obligations herein, shall quietly have, hold and enjoy the Premises without hindrance. LEASE AGREEMENT - Page 3 of 12 9. WARRANTY OF TITLE: KIB hereby warrants that it has good and marketable title to the Premises. 10. CLOSING ACTIVITIES: KIB shall, at its expense, conduct an audit of the Mental Health Center's financial statement as of October 31, 1997. The audit shall be performed according to generally accepted accounting principles by an independent certified public accountant approved by Providence. 11. CURRENT ASSETS LIABILITIES AND GRANTS: 11.1 Providence will receive from KIB at Closing current assets defined as prepaids, existing and future rights under the Alaska Community Mental Health Services Act (AS 47.30.520 to .620) and any other state or federal programs, and such other current assets of the Mental Health Center as identified in the audit provided under sections 10. of this agreement. KIB agrees to execute and deliver any and all documents necessary or proper and to cooperate with Providence to accomplish the transfer of these assets. KIB will retain and pay all Mental Health Center liabilities through October 31, 1997, including, accounts payable and accrued liabilities identified in the audit. KIB will retain and pay non-current payables attributable to prior years cost reports related to governmental payers, including those resulting from the filing of the termination cost reports of the Mental Health Center. The excess, if any, of current assets over current liabilities shall accrue to the sole financial benefit of Providence to offset the Mental Health Center operating losses. 11.2 Subject to this Agreement except as otherwise provided during the term of this Agreement, KIB shall retain all liability for notes payable and other debts, however characterized. LEASE AGREEMENT - Page 4 of 12 11.3 KIB agrees to pass onto Providence all revenue sharing or grant funds which it receives from the State of Alaska for the Community Support Program or other mental health related programs. Providence agrees that it will use all such funds for the mental health related purposes for which they are established or provided. 12. INSURANCE: Providence shall, at its expense, maintain throughout the term of this Agreement the following insurance. a. Insurance against loss or damage by fire and such other risks as may be included in the current KIB hazard insurance policy with extended coverage in an amount not less than the replacement value of the Premises from time to time; b. Insurance against claims for personal injury and property damage occurring on the Premises under public liability and malpractice policies with limits of not less than $1,000,000 per person, $3,000,000 per occurrence and $500,000 for property damage arising out of any single occurrence. Such insurance policies may provide for partial self-insurance under the same terms as the policies for mental health programs owned and operated by Providence. KIB shall be named as an additional insured party on each such policy of insurance, and certificates thereof shall be furnished to KIB. 13. MAINTENANCE AND REPAIRS: Providence shall cause the Premises to be maintained and repaired in accordance with all state and local codes, and keep the Premises in a condition at all times acceptable to KIB, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care and such other maintenance and repair work as may be necessary. KIB shall provide and pay for any major maintenance and repairs in the amount of $10,000 or more. LEASE AGREEMENT - Page 5 of 12 14. CONDITION ON SURRENDER: Upon termination or expiration of this Agreement, Providence shall surrender the Premises to KIB in substantially the same condition as exists on the date hereof, except for reasonable wear and tear. 15. IMPROVEMENTS AND ALTERATIONS: Providence shall make no alterations in, or additions or improvements to, the permanent structure of the Premises without first obtaining the written consent of KIB. Any additions and improvements made to the permanent structure of the Premises shall remain upon and be surrendered with such Premises as a part thereof at the expiration of the term of this Agreement, by lapse of time or as otherwise provided herein. 16. ADMISSION TO MENTAL HEALTH PROGRAMS: All persons in need of mental health services shall be admitted to the Mental Health Programs without regard to race, creed, color, national origin or financial circumstances. 17. INDEMNIFICATION: Providence hereby agrees to indemnity and hold KIB harmless from and against any and all claims and demands for injury or death to persons and damage to property occurring on the Premises during the term hereof, and will defend KIB from any claim of liability on account thereof. Providence shall have no obligation for, and KIB shall indemnify and hold Providence harmless from and against, any and all liability with respect to any claims resulting from the negligence of KIB or its agents or employees, or any claims arising out of acts or omissions which occurred prior to the effective date of this Agreement. 18.1 GOVERNANCE: The over all management and control of the Mental Health Program will rest with Providence Alaska Service Area Board. It is anticipated that two KIB residents will be eligible to participate as voting members on the Providence Health System in Alaska Community Board ("PHSACB"). LEASE AGREEMENT -Page 6ol 12 18.2 An Advisory Board will be appointed by KIB with the approval of Providence, and function as liaison between KIB, the Mental Health Program staff, and Providence, and shall be responsive to the concerns of the community regarding the operation of the Mental Health Program. Providence shall keep the Advisory Board updated with respect to matters of Mental Health Program policy and the relationship of the Mental Health Program to the community and the surrounding areas which it serves. Specifically, the duties and responsibilities of the Advisory Board include the following: a. Review any changes in Mental Health Program policy. Policies may be suggested by Providence of the Advisory Board; but all require review by the Advisory Board. A policy is defined as a definite course of action as pursued by administration. b. Review any new client care services. C. Review the operating and capital budgets prepared for the Mental Health Program. d. Review the rate and charge structures in the Mental Health Program. e. Review and comment concerning the quality of care rendered to the clients of the Mental Health Program. f. Review any reports prepared by Providence. g. Assist the Administrator in long range planning for the Mental Health Program. h. Assist Providence in determining and deciding all matters of policy relating to the public relations of the Mental Health Program and the relationship of the Mental Health Program to the community and the surrounding area which it serves. LEASE AGREEMENT - Pap 7 d 12 19. RIGHT TOENTER PREMISES: Upon reasonable notice, Providence shall permit KIB, its agents and employees to have access to and to enter the Premises at all reasonable and necessary times to inspect the Premises. 20.1 DEFAULT REMEDIES: "Event of Default" means any one or more of the following events, whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body: nt required by Section 6.1 or 7.1 when such rent a. Failure to pay re becomes due and payable, and continuance of such failure to pay for a period of ten (10) days; or b. Default in the performance, or breach of any other covenant or warranty by Providence under this Agreement, and continuance of such default or breach for a period of thirty (30) days after there has been given, by registered or certified mail, to Providence by KIB a written notice specifying such default or breach and requiring it to be remedied stating that such notice is a notice of default hereunder; or 20.2 If an Event of Default by Providence occurs and is continuing, KIB may terminate this agreement, excluding Providence from possession of the Premises and use its best efforts to lease the Premises to another for the account of Providence, holding Providence liable for the difference between the rentals received and the rentals which would have been receivable hereunder; and take whatever action at law or in equity may appear necessary or appropriate to collect the rent then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of Providence under this Agreement. LEASE AGREEMENT - Page 8 0112 21. TER_ INMS At any time either KIB or Providence may terminate this urinate Agreement by one year's written notice to the other party. This Agreement shall ter one year from the date of such notice without further action by either party and shall be of no further force and effect other than to perform any obligation incurred but not paid prior to the termination. Agreement provided 22 N TI : All notices, demands, or other writings in this be iven, made or sent, by either party hereto to to be given, made or sent, or which may 9 the other, shall be deemed to have been given, made or sent when mad, prepaid, ruing and and deposited in the United States Mail, Registered or Certified Mail, p 9 addressed as follows: KIB: Mayor Kodiak Island Borough 710 Upper Mill Bay Road Kodiak, Alaska 99615 Providence: Chief Executive Providence Health System in Alaska 3200 Providence Drive P.O. Box 196604 Anchorage, Alaska 99519-96604 t which any notice, demand or other writing may be given or made The address o given by such or sent to any party as above provided may be changed by written notice party as above provided. _ ...r�,T Agin SI IBLEASF: 23. A I—iv �� Providence may assign this Agreement with the prior consent of the KIB* and may sublease the Premises, in whole or in part, only Agreement or Providence may not mortgage or grant a security interest in this Ag leasehold interest. Nothing herein will prevent Providence from leasing space to LEASE AGREEMENT - Page 9 d 12 psychologists or other mental health providers. No assignment for the benefit of creditors or by operation of law shall be effective to transfer any rights to the Assignee. 24. DAMAGE OR DESTRUCTION: When all or any part of the Premises is destroyed or damaged, the KIB may proceed promptly to replace, repair, rebuild and restore the Premises to substantially the same condition as existed before the taking or event causing the damage or destruction. Rent shall be abated in the event of any destruction of, damage to, or taking all or any part of the Premises in proportion to the square footage which is unusable by Providence. If fifty percent (50%) or more of the Premises are rendered untenantable by the aforementioned causes, KIB shall have the right to be exercised by notice in writing, from and after said occurrence, to elect not to reconstruct the Premises, and in such event this Agreement and the tenancy hereby created shall cease as of the date of such occurrence, the rent to be adjusted as of such date. 25. gQNQEMNATION: If the Premises, or such part thereof as in the reasonable opinion of Providence renders the remainder unusable for its purpose, shall be acquired by eminent domain, then this Agreement shall cease and terminate as of the date that possession is taken in such proceeding. Such termination, however, shall not be deemed to deprive Providence of any of its rights to receive compensation by reason of such taking. 26. WAIVER OFSUBRnrATION: KIB and Providence, both on their own behalf and on behalf of all others claiming through or under either of them, hereby mutually waive and release all claims, liabilities and causes of action against the other and the agents, servants, employees and invitees of each other, for all loss, damage to or destruction of the Premises or any portion thereof, as well as the fixtures, equipment, supplies and other property of either party located in, upon or about the Premises resulting from fire or other LEASE AGREEMENT • Page 10 of 12 perils covered by standard fire and extended coverage insurance, whether caused by the negligence of any of said persons or entities or otherwise, except to the extent such waiver would violate or otherwise abrogate the terms of such insurance coverage. 27 _M131 nNFOUS- All covenants and agreements in this Agreement by KIB or not. In or Providence shall bind their successors and assigns, whether so expressed ihe validity, case any provision in this Agreement shall be invalid, illegal or unenforceable, be affected or legality and enforceability of the remaining provisions shall not in any way impaired thereby. None of the terms, conditions, covenants or provisions of this by either party except by appropriate written instrument. The Agreement can be waived waiver by either party or any breach of any term, condition, covenant or provision herein be deemed a waiver of the same of any term condition, covenant, or contained shall not other term, provision herein contained or of any subsequent breach of the same or any condition, covenant or provision herein. This Agreement shall be construed in accordance with the laws of the State of Alaska. Nothing in this Agreement, express or implied, shall give to any person, other than the parties hereto, and their successors and assigns, any or claim under this Agreement. benefit or other legal or equitable right, remedy ive executed this Agreement the IN WITNESS WHEREOF the parties have respectively day and year written below. SISTERS OF PROVIDENCE IN WASHINGTON OVIDE ALASKA ME L ;NTER By: X Z DATE: LEASE AGREEMENT - Page 11 of 12 KODIAK ISLAND BOROUGH By. rome M. Selby, M DATE: ll qCO STATE OF ALASKA ) ) ss.: THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the -2 A day of 1997, before me, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Jerome M. Selby, to me known to be the Mayor of the KODIAK ISLAND BOROUGH, and known to me to be the person who executed the above and foregoing instrument on behalf of the municipality, and who acknowledged to me that he executed the same as a free act and deed of the said entity for the uses and purposes therein stated and pursuant to the authority granted to him by the Borough Assembly. WITNESS my hand and notarial seal the day and year first above in this Certificate written. " Notary ublic in an for A sk My Commission Expires: 0 7� ATTEST: j7 STATE OF ALASKA j ss.: THIRD JUDICIAL DISTRICT ) da of 1997' THIS IS TO CERTIFY that on the Y before me, a Notary Public in and for the State of Alaska, duly commissioned roe known to as such, personally appeared the of SISTERS OF PROVIDENCE IN WASHINGTON d/b/a be PROVIDENCE ALASKA MEDICAL CENTER, and known to me to be the person who executed the above to a tha heoexecuted the same as a free act and deed of the said eregoing instrument on behalf of the corporation, and ntity for the uses and purposes therein stated and pursuant to the authority granted to him by the Board of Directors. WITNESS my hand and notarial seal the day and year first above in this Certificate written. Notary and for Alaska My Commission Expires: 4702%M.001 LEASE AGREEMENT • page 12 0112 :A 19 1 ti r CCN VWO I 'X e. C � __. < w. .� j.7 only .disr.•..r. SPG e4e, s e .kr..�wnl in+rwr Ar:.t wr.w tW M ww �y wn...+w . wy�� b wr r.r• .•� ✓ ,.�kw.»rM Mw+••/. www Mr..+dM y. yM�.+. wI MIM✓wr.lwlrn. rMw n Fund 425-HsapitA Const -co" Revnews: Intwl Ewwnp pwceedt of 1993 Bonds proceeds of 1994 Bonds Revenue AntieWmm Nous Si@W Lout Proceeds Mudock Chuinble Truu Tobi Revausea Tramfu in Fwd 300 Trmstfa inFood 410 Trwfer in Fwd 470 Trwkr in Fwd 540 Rmodwl Equity Tramfa ToolRevenuedl}unf- pwjecb: 95 Kodiak sled HORHal 166 Kodiak Island Hospital Told Howd., project Trutsfw Hospdal Bntwpme Fwd 540 Trial EV dsdue✓f[wf- Fend Bslm abepsure ofYeu Fwd Bdu uend of Year Fend 540 Cwnructim Wok y Fog Fund 430 SWe Cspksl Grunts Rewenes State Gant - Hospital Rmndel DOB Em V Crud Hospiul Mdchvg Grad H project HmpiW Randal DOE ErAW Orad H,R,W h4aWti WGnMll Total Cost of New HospiW please Note: The S1,300.0006wfe to Fud 300 besnotbern i ehrded N the tataleent oftln Hospitd. Thisyrotput ofHognW eumts im gmoutAvadable 47,973 Shee11 (4) hosp0al COW-Ids/v,/ i/t% s Amowt FY FY FY FY FY Tey( Differeme 10/16!98 Taal Available BudRd 1994 1995 1996 1997 1998 - 1.120.673 32,538 161,011 363,377 377,707 192,764 25,814 120 673 1,, 4,528,471 32,538 1 _ 4,526,471 1 - 1,088,135 _ 4,757,749 4,528,470 4,578,471 4,757,749 _ . 4,757,749 4,757,749 - - - 230,000 - 250,000 250.000 32,539 " 10,656,893 32,539 250.000 363,377 377.707 192.764 275.814 10,656,893 10 ,624,354 9,447.231 1 1 146,713 1 1,146,713 1,146,713 _ 830,532 - 1,146.712 830,532 830,532 2,600,000 . 830,532 7,800.00D 2• 800,000 2,500.000 _ _ 2,500,000 - - 2.600000 2,500000 _ 1.405.646 2,500.000 1,405,646 1.405,616_ - 32,540 _ -9 339,794 32.540 11405,646 363,377 3,177,707 6,075,655 275,814 19,339,784 19,307,244944723 2,191,271 10,993,195 4,250, 584 (1.223,853) 16,258,071 1,749,173 1,733,740 16,258,071 1,733,740 (1,749,173) 1 733,740 18,007,244 46,874 1,733,740 _ 1,733,740 15,433 17,991811 C 15,433) 46,874 2,191$71 10, 993,195 4,250,564 509,887 17,991,811 ' 16,007.244 1,300,000 1,300,000_ 1.300.000 15,433 - 19,291,811 (15,433) 1,30D,000 46,874 2,191,271 10,993,195 4,250, 584 1,809,887 19,291,811 19,307.244 (743,073) 1,582,046 47,973 47,973 0 9,400,357 7,572.463 47,973 47.973 9400,357 7.577,463 (743,025) 1.582,046 47,973 2,3T7,779 1,543,824 3,921.602 4.444 4.444 3,97,6.046 - 3,926,046 500,000 500.000 36,079 500,000 36•079 61,505_ 36,079 61.505 _ 597,584 61,505 597,584 597,584 500,000 500.000 36,079 500.000 36.079 61.505 36,079 61.505 _ 597.5&7 61,505 597,584 597,584 1515 441 Total Cost of New HospiW please Note: The S1,300.0006wfe to Fud 300 besnotbern i ehrded N the tataleent oftln Hospitd. Thisyrotput ofHognW eumts im gmoutAvadable 47,973 Shee11 (4) hosp0al COW-Ids/v,/ i/t% s AMENDMENT A Lpg� This arnendment to the Lease Agreement by and beh-men KODIAK 181.AND DOROUGH (KID) and the SISTPRS OF PROVIDRNCE IN WASHLNGTON &WIL PROVIDENCE HEALTH SYSTEM IN ALASKA, a Washington non-profit corporation (neinaAw referred to as -providence) is made ds au Atnculwcut to the ens A,graeMent between the parties. This Amendmentis hereby wootpor ated. into 110 Agreement by reeference and supersedes aro' provisions of that Agreement that are contrary to this Amendment Except as modified by this and other Aenair rents, the Lean Agimnaut rauwiw in full force and effect Community Mental Health Center A.I. Providence Health System in AlaskajS.Ai , its solodiscretion, 1 establish acommmity Mang prof�pimh(b wd behavioral medicine services to the community of Kodiak Island. A.2. PHSA Shall operab ib Kodiak Community Mental Health programs in accordance with the PHSA rrtubitrn and values. AX PHSA shall have full accountability for the operations. billing, staffing, etc. of the Kodiak Community Mortal Health programs. A.4. No less than annually, PHSA shall prepare.a statement of revenue and expelma for the Kodiak CommunhY Mental Health programs. Any deficits related to operating theme programs Shap bet the respamsibility of KIB, payable within 45 days of the end of the fiscal year. KID shall have the right to use its portion of the net profits genw&ted by the hospital as deet ril W iu section 8.2 of this agreement to support deficits related to the Kodiak Community Mental Health programs. In the event tbat them aro instefiicieet funds generated by the hospital oFemtions to support tho Kodiak Community Metal Health programs to any given yelw, KTR'a liability shall &0=a1Wu" Pts; ptucee ding years net profits from hospital opxstions. If there are insufficient funds from bospital operations to support KIR's liability related to the Kodiak Community Mental Health programs tot two consecutive years, KID ahall be required to reimburm P1ISA in full for all deficits uutsto otding within 45 days of the cad of the sxond f coal year. A.5. In recog oition chef KM will be accountable for f oancial shortfalls related to the community mental health propJama, PHRA shall present the mental heahh p opa+tin6 Mrdgct to X annually for its review Sad approval. At a mum oft per quarter, PHSA shall reiwrt the actual financial performtmoe of aha metal health programs to &W- A.6. PHSA shall maintain separate accountiug itxords and financial statements for the Kodiak Community Mental Health programs and shall provide KlB with the Kodiak Community Mo0al Health programs' year-end financial statements. A.7. KM warrants by PHSA ty"Ilshiug new Kodiak Community Mental Health programs and by entering into this agreement for KlB w have financial accountability for the PHSA Kodiak Community Mental Health programs does not breech nay commitments or responsibilities of KIB under prior agreements, including but riA luuiWd to financing and omployment agreements, and that. KTR ahall defend and hold PHSA harmless for any cldinra, liabilities and oxpcnses arising from or in any way related to any prior agreements of KIB. A.& The term of this Anicadvicat shall continue to the extent PHSA operates Community Manual Health propau& iu Kodiak. At any time either KID or PHSA may terminate this Amendment by one year's written notice to div other party. This Amendment sball terminate one year from the date of such notice without further action by either patty and shall be of no fitrther fottx and effect other than to perform may obilgadun imcared but not paid prior to the termination. SIONATUttES: SISTERS OF PROVIDENCE IN WASHING fON d'bla Providence Kodiak Island Medical Con By:_ eter Bigelow Its- Chief Exeoutiyo_ ftvidence Health Systan in Alaska Date: KODIAK ISLAND BOROUGH C\� icy:_----��L Jenome SWbv Its: Borough Mayor Kodiak bland Borough tints' ATTEST: J I/Y10�' ��✓ri-e� Tina Seelinger, Ac`tting Borough Clerk Vice President - Health Care Operations Washington/Alaska MENTAL HEALTH SERVICES THIS AGREEMENT is entered into by and between the Kodiak Island Borough, Alaska (`Borough") and Sisters of Providence of Washington, dba Providence Health Systems of Alaska ("Contractor") for the purpose of setting forth terms and conditions pursuant to which the Contractor shall be contracted to provide mental health services. WITNESSETH Section 1. INTENT OF AGREEMENT. The Contractor is hereby contracted to provide a Mental Health in Schools Program as described in the attached collaborative plan and fulfill all of the mental health services required by the attached grants from the State of Alaska Department of Health and Social Services for community mental health support program services. Contractor agrees to be bound by the terms and conditions of the attached collaborative plan and grants. Section 2. SCOPE OF WORK. During Fiscal Year 1998, the Contractor will provide the staffing required to deliver the services specified in the mental health in the schools collaborative plan and the grants from the State of Alaska. The Contractor will complete all documentation, billing and reporting as specified. The Borough will submit the appropriate billings when completed by the Contractor and pass the receipts through to the Contractor. Contractor acknowledges that documentation which is untimely or incomplete may jeopardize or delay payments to the Contractor. Any disallowed expenses will accrue to the Contractor. During Fiscal Year 1999, the Contractor will provide the staffing required to deliver the services specified in the Mental Heath in the Schools collaborative plan. State grants will be managed directly between the Contractor and the State with no Borough involvement. A monthly activity report of all activities of the Contractor will be submitted to the Borough Mayor by tl0a' day following the end of each month. Section 3. TERM. Unless earlier terminated, this Agreement will remain in effect he beginning January 2, 1998 and ending June 30, 1999. Section 4. COMPENSATION. As compensation for all services rendered under this Agreement, Contractor shall be paid $33,300 per month by the Kodiak Island Borough for the school program and all funds billed and received from the applicable state grants for the term of this Agreement. Said compensation shall be paid in equal installments of $33,300 on the first day of each month from January, 1998 through June, 1999. In addition, all state funds will be paid within five days of receipt from the State of Alaska. Mental Health in Schools Agreement Page 2 of 2 IN WITNESSETH WHEREOF the parties have executed this Agreement on this 7 day of A m ems, 1997. KODIAK ISLAND BOROUGH SISTERS OF OF WASHIN 7 me M. Selby, Mayor ATTEST: Borough C erk C `qq7 07 ADDENDUM TO LEASE AGREEMENT August 20, 2003 This addendum is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as "KIB") and PROVIDENCE HEALTH SYSTEM -WASHINGTON (formerly known as Sisters of Providence in Washington) d/b/a PROVIDENCE HEALTH SYSTEM IN ALASKA, a Washington non-profit corporation (hereinafter referred to as "Providence"). For the purposes of this addendum "Providence" includes Providence Alaska Medical Center and Providence Kodiak Island Medical Center. Purpose: This Addendum is entered into between "Providence" and "KIB" in support of continued assess to hospital services within the Kodiak Island Borough. Agreement: In consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows This is an Addendum to the Lease Agreement dated April 21, 1997: (a) "Providence" shall make rent payments to "KIB" during the term of the Lease as described in section 6.1 MONTHLY LEASE PAYMENT SCHEDULE. For the Lease Year commencing 2004, "Providence" shall pay an additional lease payment of $1,300,000 for use of the hospital facilities owned by "KIB". (b) Unless otherwise agreed by the parties, "Providence" will make the additional lease payment as a single payment, without demand and without setoff, prior notice or demand, at a location designated by the Borough. (c) Thirty (30) days prior to the commencement of each subsequent lease year, "Providence" and "KIB" will negotiate the additional lease payment for the following year. "Providence's" obligation to make any additional lease payments to "KIB" shall be null and void and "KIB" agrees to waive any and all of it's rights (if any) to receive any such additional lease payments from "Providence" upon the occurrence of any or all of the following: 1. Upon "Providence" dissolution, if no successor corporation is organized for at least thirty days thereafter; 2. Upon the loss by "Providence" of any license or certification required by State or Federal Law or Regulations to operate a hospital in Kodiak, Alaska; 3. Upon bankruptcy, insolvency or receivership of "Providence"; Page 1 of 2 4. In the event "Providence", in its sole discretion, fails to obtain disproportionate share funding from the Department of Health and Social Services, State of Alaska sufficient to fund the full -value of the lease payment described in section (a) of this addendum; or 5. In the event "Providence" Medicare revenue declines by more than 50 percent from one year to the next. 6. In the event that KIB fails to make payments required to Providence Kodiak Island Medical Center or Providence Alaska Medical Center pursuant to the terms and conditions of the Intergovernmental Agreement dates as of the same date hereof. In Witness whereof the parties have respectively executed this Addendum the day and year written below. PROVIDENCE HEALTH SYSTEM - WAS N d/b/a PROVIDENCE HEALTH YS M IN ALASKA r By: Title: Al Parrish VP/CEO Providence Health System — Alaska Date: August 20, 2003 Page 2 of 2 KODIAK ISLAND BOROUGH MR.."WIVERNI, Title: fV—cQ1Ja�n Date: \5 : e0,p0 co y,q Critical Access Hospital Community Education Plan C- (17- 07 RECEIVED MAR :i_ 8 2003 KIB MANAGER 1. The principal effort to educate and involve the community of Kodiak in discussions and decisions regarding the role and responsibilities of the Kodiak Island Borough and the Providence Kodiak Island Medical Center in providing health care services shall include, but not limited to: a. Monthly meetings of the Providence Health System Kodiak Island Service Area Board. These meetings include both public and closed executive sessions. b. Joint meetings and work sessions of the Providence Health System Kodiak Service Area Board and the Kodiak Borough Assembly. These meetings occur as necessary. c. The utilization of media available to the general public, such as newspaper and radio. 2. The times of these meetings and public announcement are a matter of public record in both the governing bodies' minutes and in the Public Information files at PKIMC. &A* diak sland Borough Manager Donald Rush ` Providence Kodiak Island Medical Center CEO .3 03 Date: -Z, // -,� /0 D e: C ` P -07P ADDENDUM TO LEASE AGREEMENT August 20, 2003 This addendum is made and entered into by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the State of Alaska (hereinafter referred to as "KIB") and PROVIDENCE HEALTH SYSTEM -WASHINGTON (formerly known as Sisters of Providence in Washington) d/b/a PROVIDENCE HEALTH SYSTEM IN ALASKA, a Washington non-profit corporation (hereinafter referred to as "Providence"). For the purposes of this addendum "Providence" includes Providence Alaska Medical Center and Providence Kodiak Island Medical Center. Purpose: This Addendum is entered into between "Providence" and "KIB" in support of continued assess to hospital services within the Kodiak Island Borough. Agreement: In consideration of the mutual covenants contained herein, and each of the parties intending to be legally bound hereby, it is mutually agreed as follows This is an Addendum to the Lease Agreement dated April 21, 1997: (a) "Providence" shall make rent payments to "KIB" during the term of the Lease as described in section 6.1 MONTHLY LEASE PAYMENT SCHEDULE. For the Lease Year commencing°`providence" shall pay an additional lease payment of $1,300,000 for use of the hospital facilities owned by "KIB". (b) Unless otherwise agreed by the parties, "Providence" will make the additional lease payment as a single payment, without demand and without setoff, prior notice or demand, at a location designated by the Borough. (c) Thirty (30) days prior to the commencement of each subsequent lease year, "Providence" and "KIB" will negotiate the additional lease payment for the following year. "Providence's" obligation to make any additional lease payments to "KIB" shall be null and void and "KIB" agrees to waive any and all of it's rights (if any) to receive any such additional lease payments from "Providence" upon the occurrence of any or all of the following: 1. Upon "Providence" dissolution, if no successor corporation is organized for at least thirty days thereafter; 2. Upon the loss by "Providence" of any license or certification required by State or Federal Law or Regulations to operate a hospital in Kodiak, Alaska; 3. Upon bankruptcy, insolvency or receivership of "Providence"; ED Page 1 of 2 Date ig �" 4. In the event "Providence", in its sole discretion, fails to obtain disproportionate share funding from the Department of Health and Social Services, State of Alaska sufficient to fund the full -value of the lease payment described in section (a) of this addendum; or 5. In the event "Providence" Medicare revenue declines by more than 50 percent from one year to the next. 6. In the event that KIB fails to make payments required to Providence Kodiak Island Medical Center or Providence Alaska Medical Center pursuant to the terms and conditions of the Intergovernmental Agreement dates as of the same date hereof. In Witness whereof the parties have respectively executed this Addendum the day and year written below. PROVIDENCE HEALTH SYSTEM - WAS N d/b/a PROVIDENCE HEAL YS M IN ALASKA r By: Title: Al Parrish VP/CEO Providence Health System — Alaska Date: August 20, 2003 Page 2 of 2 KODIAK ISLAND BOROUGH Title: j— Date: - f I - �f1P5J`•� lldt �L ,,t. .�✓ ,�rou�, ele�K �S\AND SON '10Gni - •. v � '�SKA �% 1 1P Critical Access Hospital Community Education Plan C- W- 07 REC-EIVED MAR 1 8 2003 KIB MANAGER 1. The principal effort to educate and involve the community of Kodiak in discussions and decisions regarding the role and responsibilities of the Kodiak Island Borough and the Providence Kodiak Island Medical Center in providing health care services shall include, but not limited to: a. Monthly meetings of the Providence Health System Kodiak Island Service Area Board. These meetings include both public and closed executive sessions. b. Joint meetings and work sessions of the Providence Health System Kodiak Service Area Board and the Kodiak Borough Assembly. These meetings occur as necessary. C. The utilization of media available to the general public, such as newspaper and radio. 2. The times of these meetings and public announcement are a matter of public record in both the governing bodies' minutes and in the Public Information files at PKIMC. \g\,AND e�� O a Carl on Date: diak sland Borough Manager Donald Rush D e: Providence Kodiak Island Medical Center CEO