HomeMy WebLinkAboutItem A: Memorandum of Understanding
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Memorandum of Understanding Between McKenzie-Willamette
Medical Center and the City of Eugene
Meeting Date: February 15, 2006 Agenda Item Number: A
Department: City Manager’s Office Staff Contact: Dennis Taylor
www.eugene-or.gov Contact Telephone Number: 682-5010
ISSUE STATEMENT
This is an opportunity for the City Council to review the proposed Memorandum of Understanding
(MOU) between McKenzie-Willamette Medical Center and the City of Eugene with regard to the
location of the hospital at the Delta Ridge site in north Eugene. A draft of the MOU was provided
to the City Council on January 26, 2006. At the request of several members of the City Council,
this item has been added to the agenda for the work session on February 15, 2006.
BACKGROUND
On November 28, 2005, a council work session was held to provide an update on the efforts of
McKenzie-Willamette Medical Center to locate a site for a new hospital in Eugene. During that
work session, the City Council directed the City Manager to develop an MOU related to the
proposed Delta Ridge site. Questions and issues were provided by McKenzie-Willamette in a
November 15, 2005, letter from Roy Orr, which is included as Attachment B to this agenda item
summary. As noted above, the draft MOU was provided on January 26, 2006. The MOU sought
to outline the preliminary understandings between the two parties.
RELATED CITY POLICIES
This work session is to review the MOU in light of existing city policies and the current priority
issue related to siting a hospital in Eugene.
COUNCIL OPTIONS
1. Authorize the Manager to sign the MOU.
2. Direct the City Manager to undertake additional negotiations with McKenzie-Willamette
before signing the MOU, and specify what issues should be addressed in those additional
negotiations.
3. Direct the City Manager to discontinue negotiations with McKenzie-Willamette related to the Delta Ridge site.
CITY MANAGER’S RECOMMENDATION
The MOU is consistent with current adopted City Council policies and is in support of one of the
City Council priority issues. To move the project forward, the City should continue to partner
L:\CMO\2006 Council Agendas\M060215\S060215A.doc
with McKenzie-Willamette using the MOU as the means to move forward. Therefore, the City
Council should authorize the City Manager to sign the MOU.
SUGGESTED MOTIONS
Move to authorize the City Manager to sign the Memorandum of Understanding.
ATTACHMENTS
A. Memorandum of Understanding
B. Letter from McKenzie-Willamette Hospital CEO Roy Orr, dated November 15, 2005
FOR MORE INFORMATION
Staff Contact: Dennis Taylor
Telephone: 682-5010
Staff E-Mail: Dennis.M.Taylor@ci.eugene.or.us
L:\CMO\2006 Council Agendas\M060215\S060215A.doc
A TTACHMENT A
BETWEEN:
MEMORAND~UM ~F ~S:ANDING
Tbe City oKil.~ ~nieipal Corporation
ofthe Stat~~regon ,
("City")
AND:
McKenzie-Willamette Medical Center,
an Acute Care Medical Center ('"McKenzie-Wmamette'~)
RECITALS
, A. City is a municipal corporation of the state of Oregon. organized and constituted
by the Eugt'..ue Charter of 2002.
H. McKenzie..WiHamette Medical Center is a full-service acute care medical facility.
C. City has prioritized location of a ,fuB-service hospital in Eugene as impOltant to
the health, safety and welfare of the City and its residents. McKenzie- Willamette plans to build
a full service, acute care hospital. McKenzie- Willamette will also pay property taxes and income
taxes, and provide uncompensated care consistent \vith its history as a regional healthcare
resource.
D. Both City and McKenzie-Willamette wish to have McKe.n7ie-Wil1amette locate a
fun service hospital within the boundaries of the City of Eugene. During the last two years
McKenzie..WiHamette has attempted to acquire a location for a full service hospital at .a site
preferred by City south of the WiUsJnette River. ,M,cKenzie-Wi1l<l.mette's efforts induded
undertaking detailed investigation an.d site planning actions for the EWEB site and negotiations
with EWlm. Due to E\VEB's time frame, the EWEB site is not viable. McKe.nzie-Willamette
also investigated other sites in the City's preferred area, inch-H..-ling areas suggested by City.
McKenzie-\Villameite ha$ concluded that none of those sites in the City's preferred area is
viable, and time is oftne essence in locating and securing a viable site,
E. McKenzie-\Vmamette's new preferred site for location of a hospital is identified
as the River Ridge property located north of Ayres Road and west of North Delta Highway, as
more particularly depicted on the map attached as Exhibit A hereto. Accordingly, McKenzie-
Willamette has entered in~o a binding agreement to purchase the property for the purpose of
constructing a hospital, McKenzie- WiIlamette has de..,>ignated the site Delta Ridge.
}l', The pmpose of this Mt-'IDorandum of Understanding is to identify sOIneof the
actions that will be necessary in order to enable McKenzie-Willa.rllette to construct a hospital and
related support facilities at its preff.'ITed location.
G. Thc:bdta'Ridge propertY' is located-contiguous tothenrfugeneCity' ihirhs a11cf
partially \vithin the Eugene Urban Growtb Boundary. In order to ensure construction of the
necessary infrastructure, the portion located within the City's Urban Gro\vth houndary will need
Memorandum of Understanding - 1 - January 23, 2006 draft
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to be annexed to City and other planning ~19. d7.ve1opment approvals win need to be procured.
Prior to such annex~tion, County's coo~eratVi1f ll\",processing any required amendments. to
existing plans will be necessary. ' ,
H. McKenzie-Willamette wi11 also need to obtain,a(tertificate of need from the State
of Oregon. McKenzie- Willamette submitted its application fhr approval to build a full service
hospital at the Delta Ridge site on December 9, 2005.
I. The parties acknowledge that even without location of a hospital at Delta Ridge,
there are serious traffic problems in the Belttine Road and North Delta Highway area. Those
problems are recogniz.ed in regional transportation pla.ns. Solutions to those problems are
contained in those plans, although not all of the solutions are funded in the plans. The parties
also recognize that construction of a hospital at Delta Ridge 'Win exacerbate some of those
problems and that it would be equitable for McKenzie- Willarnette to share in the cost of
improvements.
AGREEl\-ffiNT
1. McKenzie-wuiamette win build a 148-bed hospital, with expansion space for the
addit-ion of another 50 beds over the next decade at'anestimated cost of$224 million. This state-
6fhthe-art hospital wi11 bc1ude a 24-hour fun service Level III Trauma Center Emergency
Department, a.~ weU as cardiac, medicallsurgic.al, women's and children's, diagnostic, and
rehabilitation services.
2. McKel17ie- WiUamette will constrw::t the ne"'.' medkal center consistent willi the
standards of Leadership in Energy and Environmental Design (LEED) certification, and engage
in sustainable businesses practices in the constmction and subsequent operation ofthe hospital.
3. McKenzie- WiHamette and its representatives wlH employ local contractors,
subcontractors and vendors to the tullest extent possible in construction of the new hospital.
McKenzie- Willarnette will give preference to contractors, subcontractors and vendors who
employ union members to the fullest extent possible.
4. McKenzie- Willamette will ensure Eugene residents continue to have
opportunities to influence hospital decision-making about the design and construction of the new
hospital, including creation of a hospita1~spl}ns!}fed citizen committee. Community members
and area neighbors wm he provided routine opportunities to monitor progress and raise issues of
concern.
5. McKenzie-Willamette will fund a position in City's Planning & Development
Department, and with that additional resource, City will eXl)edite review of applications
submitted by McKenzie~ WiUamette. Su(':h applications will include applications for any
necessary Metro plan amendments, zone change, conditional use permit, and other planning
applications in support ofthe project.
Memorandum ofUnderstandillg - 2 - January,23, 2006 draft
lIDlli~~~
6. McKenzie- WiHamerte win submit timely applications to provid.e City with
sufficient time to process necessary applications to enable McKcl1zie- Willamette to commence
site preparation (including clearing, earthwork, utilities and build pad) no later than September 1,
2006, With the staff resources funded by McKenzie-WiUamette under paragraph 5 of this
Agreement, City win make every. reasonable effort to process applications to achieve that
ohjective.
7. McKenzie-WiUamette will provide City'.vith a more detailed description of the
proposed hospital project, and wiU prepare and submit a Traffic Impact Analysis Re\11eW
("TIN') based on that description. .
8. Upon receipt and review of McKenzie-WiUamette's 1'1:\, City will consult with
McKenzie- Willamerte to identify potential costs, funding sources and implementation strategies
related to transportation improvements and other infrastructure improvements.
9. City will advocate that County and ODOt transportati<m capital improY(,menl
planning processes indude McKenzie..WiHamette's TIA study area transportation needs in
County and ODOT err plans at sufficient levels, when considered with the resources identified
in the next sentence, to satisfy the State's Transportation Planning Rule ("TPR') McKenzie-
WiHamette will collaborate with City on developing additional financial resources to enable the
needed transportation improvements to move forward, and win participate proportionately in that
funding.
10, City wiU actively support McKenzie-"Villamette's application for a certificate of
need from the State of Oregon, including presentation of written and oral testimony.
11. City makes no representations with respect to, nor does it commit that it will
approve, any rezoning applications, amendments to land use plans, permit applic:ations, nr any
other discretionary land use application submitted by McKenzie- Willamette.
TIris Memorandum of Understanding executed the date indicated below.
CITY OF EUGENE
By
Dennis M. Taylor, City Manager
Date
MCKENZIE-WILl,AMETTE MEDICAl, CENTER
By__
Roy Orr~ CEO
nat(~
Memorandum of Understanding - 3 - January 23, 2006 draft
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ATTACHMENT B
McKen:zie...Willamette
........................_...~.._~M.~........------.,.,...
November 15,2005
MEDICAL CENTER
extraordinary care
Mr. Dermis Taylor, City Manager
City of Eugene
777 Pearl Street, Room 105
Eugene, Oregon 97401
Dear Dennis:
McKenz-ie..'\ViUamette Medical Center has agreed to purchase approAlmakly 42 acres of
land now in use as a golf course off Delta Highway north of Ayers Road. McKenzie-
\VillarneHe Medical Center seeks to build a 148-bcd state-of-the-art acute care hospital on
the property. We anticipate adjacent development of one or more medical office or
surgery center buHding(s) totaling as much as 100,000 square feet each.
We now seek information from the City of Eugene atJOut the following questions/issues:
1. Z-oniug and Regulatory Reviews
M(;Ktnzie~ Willamettc dt!Sires to assure itself that the prollcrt,y is or can ht~ properly
zoned for hospital devel(,pment, and appropr.iat{~ regulatory reviews can he
{.'ompleted quickly, to facilitate start of construction.
Please describe the steps and estimated time lines (critical path) for all applicable
land use review and building permit processes in order for us to gain access to site
for construction
3. Annexation
h. Zoning
c. Land use plan amendments (Would the City initiate any Plan arnendments?)
2, Site Issues
Over the next thirty days, pJI,~a5e ('USUl'{' there are no unreasonable limitations for
redevelopment of the property--wb1th may be contained either in existing
regulations or held by the City on its own behalf or on behalf of the County or any
other source.
Please address any unique regulatory requirements for construction on the
property, such as (but not limited to)
'a. setbacks,
h. height restriction.s.
C. Morro water.,
d. waste water,
e. floodplain,
f, parking, and
g, public safety requirements,
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City of Eugene
November 15, 2005
Page 2
and the City's expectations regarding each of these. Are there other n{}n~
regulatory expectations held by the City?
3. Utilities
Ensure (water, gas, sewer) can be delivered to the site. McKenzie- WiHamette
Medical Center seeks fiber optic, telecommunications, dc(:trical and cable TV (ail
buried) at the site,
4, Transportation Improvements
Ensure transportation improvements neces:>ary to support our proposed
devdopment We understand the property to be served by a county mad.
McKenzie-WiHamette Medical Center seeks a minimum oftnree curb cuts or
access points to the property from Delta Highway, improvement of the existing
roadway to four lanes including turn lanes, and addition oftrafik signals to
facilitate emergency vehicle trame. We also seek installation of appropriate street
lights, covered bus stops, landscaping and inigation.
5. Fees and Charges
Facilitate filing and processing of all applicable land use, building permit, and
systems development charges. Please identify any of these reviews, fees or
timelines the City is prepared to ahsorb or expedite to f.1cihtate its goa.l of
hospilal development.
We would like to recdve this informalion Iiom you no later than MondaYt November
21 st. Our goal is to clarify roles, responsihihties and expet..i.ations. Please let us know if
you have questions or need additional information. We continue to be grateful for the
support of Mayor Piercy, members ofthe City Council, and you and your staff.
s~M-"
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