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HomeMy WebLinkAbout~Master - Memorandum of Understanding Between the City of Ames and Mary Greeley Medical Center RESOLUTION NO. 19-418 RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AMES AND MARY GREELEY MEDICAL CENTER FOR THE CITY OF AMES,IOWA WHEREAS, City staff has been working to finalize the agreement with Mary Greeley Medical Center (MGMC) prior to the September 10, 2019, bond referendum for the Healthy Life Center(HLC); and, WHEREAS, MGMC will be a tenant in the HLC building while occupying approximately 3,221 square feet for rehabilitation services; and, WHEREAS, the agreement calls for MGMC to provide funding for the construction of the facility as well as ongoing financial support for the operations for a limited number of years of operation; and, WHEREAS, the major provisions of the proposed agreement are: • MGMC will contribute$7,000,000 towards the construction of 3,221 square feet for its tenant space,therapy pool,and other shared spaces within the Healthy Life Center building. This total will be distributed in four payments based on specific performance indicators. • MCMC will make annual payments to the City to cover a portion of the operating costs of the HLC building and projected operating deficit. The first payment will be $105,000, which will be increased by 3% each succeeding fiscal year. The initial payment will be due in the first fiscal year that an individual is hired to manage the facility. • MGMC will be responsible to pay for any improvements to its tenant space and purchase any equipment after the HLC is constructed. • MGMC is responsible for 100% of its operating expenses (staffing, supplies, etc.). • Rather than collect funds from MGMC in the future to help cover the cost for the building replacement items,the City will establish a Replacement Fund derived from the operating revenues each year of the HLC to be used to replace items. • The City will be responsible for maintenance and repairs of the MGMC's tenant space (custodial services, painting walls, plumbing, HVAC, electric) • The term of the agreement is for 15 years after the HLC is first opened. After this initial term,the agreement can be extended or renegotiated by mutual consent of the parties. • Within 30 days after the agreement is terminated,MGMC is required to remove all of its possessions/equipment from its tenant space and the City will have the right to utilize the space without any compensation to MGMC. • The agreement provides for a "hold harmless" covenant, along with insurance requirements in order to protect both the City and MGMC. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Memorandum of Understanding between the City of Ames and Mary Greeley Medical Center for the Healthy Life Center is hereby approved. ADOPTED THIS 13"'day of August, 2019. Diane . Voss, City Clerk John A. Haila, Mayor Introduced by: Nelson Seconded by: Gartin Voting aye: Betcher, Corrieri, Gartin, Martin,Nelson Voting nay: None Absent: Beatty-Hansen Resolution declared adopted and signed by the Mayor this 13t1i day of August, 2019.