2004 - 12-13-04 Regular Meeting - Laserfiche WebLink

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0 UN 2`0 PAGE 157 unreserved fund balance. Prior to the effective date of this Agreement, July 1, 2005, Lee-Harnett Authority shall not engage in any conduct or practice outside the regular and ordinary course of its business to deplete or reduce the unreserved fund balance. The use of the fund balance to lawfully and reasonably address retiree health insurance costs or employee retirement issues shall not be deemed as conduct or a practice outside the regular or ordinary course. Lee-Hamett Authority, Lee County, and Harnett County hereby guarantee that, upon the effective date of this Agreement, at a minimum, eight percent (8%) of the July 1, 2004 Operating Budget or any amendment to said budget if the Amendment resulted in an increase in the budget, will be transferred to Sandhills Center for the purpose of continuing mental health, developmental disabilities and substance abuse operations in the Sandhills Center catchment area. In no event shall the amount transferred be less than 8% of the July 1, 2004 Operating Budget. 11. Liabilities/Indemnification. Lee County Harnett County and Lee-Harnett Authority Indemnification. Any liability of Lee County, Harnett County or Lee-Harnett Authority arising prior to this Agreement, existing at the time of this Agreement, or coming into existence after the effective date of Agreement for omissions or acts prior to the Agreement (the "Liabilities") that are not covered by applicable insurance coverage shall remain the sole responsibility of Lee County, Harnett County and Lee-Harnett Authority. This potential liability specifically includes, but is not limited to, the acts or omissions of Lee-Harnett Authority's directors, officers, employees or contractors. Provided, however, this indemnification shall not impact any dispute or defense as to the validity of the liability with any third party or limit any immunity available as a defense against the third party. It is not the intent of Lee County, Harnett County, Lee-Harnett Authority, or Sandhills Center to contract away or waive its sovereign immunity by entering into this Agreement with respect to claims made by third parties. Sandhills Center Indemnification. Any liability of Sandhills Center arising prior to this Agreement, existing at the time of this Agreement, or coming into existence after the effective date of this Agreement [or acts rendered or omissions of Sandhills Center prior to the Agreement (the "Liabilities") shall remain the sole responsibility of Sandhills Center. This potential liability specifically includes, but is not limited to, the acts or omissions of Sandhills Center's directors, officers, employees or contractors. 12/07/2004 10:40 Ant 6