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HomeMy WebLinkAboutMO # 1609MUNICIPAL ORDER NO. 1609 A MUNICIPAL ORDER AUTHORIZING AND DIRECTING THE MAYOR OF THE CITY OF PADUCAH TO ENTER INTO A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PADUCAH, McCRACKEN COUNTY, GREATER PADUCAH ECONOMIC DEVELOPMENT, INC. AND MURRAY STATE UNIVERSITY WHEREAS, the Board of Commissioners of the City of Paducah has determined that it is in the best interest of the citizens of Paducah, Kentucky to increase local access to undergraduate opportunities by expanding the courses and programs offered by Murray State University, and WHEREAS, the goal of increasing educational opportunities will be greatly enhanced by the development of a Murray State University Paducah Campus, and WHEREAS, all parties involved have reached understandings as how they will work cooperatively for the establishment of the Paducah Campus and now wish to memorialize their understandings by entering into a written Memorandum of Understanding. BE IT HEREBY ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. The Mayor of the City of Paducah is hereby authorized and directed to execute the Memorandum of Understanding which is attached hereto. SECTION 2. Upon satisfaction of all contingencies set forth in the Memorandum of Understanding, any final, binding documents, which may be necessary to complete the contemplated transaction, shall be brought before the City Commission for their consideration and approval in Open Session at a duly called meeting of the Commission. SECTION 3. The City's understanding as set forth in the Memorandum of Understanding may not be materially altered without first being approved by the City Commission. SECTION 4. A copy of this Municipal Order shall be provided to all other parties to the Memorandum of Understanding. SECTION 5. This Order shall be in full force and effect on and after the date of its adoption. ATTEST: S 6fl-0 J, Tammara S. Brock, City Clerk Adopted by the Board of Commissioners May 17, 2011 Recorded by Tammara S. Brock, City Clerk, May 17, 2011 IMO\MOU-MSU MEMORANDUM OF UNDERSTANDING BETWEEN Murray State University, McCracken County Fiscal Court, City of Paducah And Greater Paducah Economic Development Council THIS MEMORANDUM OF UNDERSTANDING, by and between MURRAY STATE UNIVERSITY ("MSU," "University"), McCracken County Fiscal Court ("County"), City of Paducah ("City") and Greater Paducah Economic Development Council ("GPEDC"), is entered into for the purposes of memorializing the parties working cooperatively to: Communicate the Greater Paducah region's goals for higher education attainment; Establish the terms and conditions upon which MSU will provide courses and programs offered through the proposed MSU Paducah Campus, currently known and referred to herein as the "Paducah Campus"; and 3. Articulate the roles and responsibilities of the University, County, City, and GPEDC in this educational cooperative agreement. WHEREAS, it is the intention of the parties to form an educational arrangement to increase the public higher education opportunities for residents of the Greater Paducah region to have access to baccalaureate and graduate degrees; WHEREAS, it is the intention of this educational cooperative agreement to increase access to undergraduate opportunities offered through MSU at the Paducah Campus in order to achieve the following for the region: Increase the percentage of adults 25 and over in McCracken County with a bachelor's degree from 20.8 percent to 25 percent over the next 20 years (Based on U.S. Census Data, and focused on all sources, including the results of all local higher education institutions and imports of graduates for new jobs created in the community); • Double the enrollment serviced by the Paducah Campus over the next 20 years to 2,000; WHEREAS, MSU will work with the Western Kentucky Community and Technical College ("WKCTC") to develop completion programs and expanded undergraduate programs that will not duplicate lower -division courses, and explore new and expanded collaboration opportunities for area students and businesses; WHEREAS, MSU and GPEDC will assist in the identification and development of degree programs to benefit area industry and organizations; and, WHEREAS, the County, City, and GPEDC have committed to increasing the number and percentage of adults with baccalaureate and masters' degrees in McCracken County and the County will issue a bond, not to exceed $10 million, with the intent of MSU's constructing an approximately 40,000 sq. ft. educational building and associated streets, parking lots, utilities and infrastructure for MSU with the purpose of achieving this MOU on land owned by MSU. THEREFORE, in consideration of the mutual covenants and conditions herein contained, each party does hereby agree to the following: 1. Responsibilities of the County, City, and GPEDC: a) To bond the costs (said bond to be issued by the County) associated with building an educational building, and associated streets, parking lots, utilities, fixtures, and related infrastructure and property development not to exceed 10 million dollars ($10,000,000) for housing MSU campus administrative offices, faculty and staff offices, classrooms, and student support activities. The $10 million will be placed in a drawing account and be made available upon the County's receipt of MSU -approved invoices for costs related to the construction of the educational building and associated streets, parking lots, utilities and infrastructure including design, construction, testing, and surveying. b) To provide a combined $500,000/year for twenty (20) years to service the debt of such a bond. c) To consult with M51.1 as requested during design and construction of the educational building and associated streets, parking lots, utilities and infrastructure. 2. Responsibilities of the GPEDC: a) Identification of Programs and Courses No later than February 1 of each year, the designated contact persons for GPEDC, MSU, and WICCIC will review and assess programs, degrees, and progress made toward meeting the goals spelled out in this Memorandum of Understanding. It will be at this time that any new courses or programs will be jointly identified. b) Areas of Academic Focus The GPEDC, County, and City have identified the following programs and degrees fields as required for current work force needs and to fulfill the goals established in this Memorandum of Understanding: 1) Allied Health/Health Care Administration 2) Distribution/Logistics 3) Physical Therapy 4) Manufacturing/Applied Engineering 5) Information Technology/Computer Engineering 6) Business/Management/Accounting 3. Responsibilities of MSU: a) Under the terms of this Memorandum of Understanding, MSU will design, construct, and assume responsibility for operation of the educational building and grounds, and have an expanded presence in Paducah/McCracken County as the primary provider of public postsecondary education at the baccalaureate and graduate degree level b) Provide biennially renewable lease payments to the County for the difference in the County and City $500,000/year contribution, as they may allocate, towards debt service and the total amount of debt service required to service the $10 million bond for 20 years, projected payment to be no more than $290,000/year. c) MSU, along with WKCTC and GPEDC, will identify and promote academic programs aligned to the economic development and work force needs of the area and students. d) MSU will provide the Paducah Campus appropriate administrative and student support services to recruit, retain, and graduate students. e) The management and operation of the programs offered by MSU herein, employees and students enrolled therein, and the conduct and delivery of all academic programs shall be in accordance with MSU's established policies and procedures applicable to MSU students, faculty, and/or staff. 1) MSU agrees to offer programs in the following focus areas as student needs and enrollments justify as hereafter provided. 1) Programs and Degree Offerings • MSU will identify at least ten (10) resident faculty to meet student demands consistent with MSU main campus student - faculty ratios (e.g., full-time, part-time, tenure, non -tenure, and rank). • Course work and degrees at the Paducah Campus will be aligned to the extent possible to the present degree offerings and additional work force expectation detailed in this Memorandum of Understanding. • Upper -division courses and faculty that lead to degree completion and that are not provided by WKCTC may be offered, in consultation with WKCTC, to complement mutual degree offerings. • Degree programs and full-time faculty in professional disciplines such as education, psychology, communications, and other degrees will be established based on other demonstrated community need and student demand, in addition to those disciplines mentioned per Section 2. b). 2) Faculty MSU agrees that in the interest of providing high-quality undergraduate and graduate programs, Ranked or Special Appointment Faculty, except adjunct/part-time faculty, as defined in MSU's Faculty Handbook as of the date this document is executed by all parties, will teach a majority of courses once justification of need is established. Resident Paducah Campus faculty in each program will hold faculty status commensurate with their MSU "home" department. The utilization of part-time or adjunct professors at the Paducah Campus will be utilized for new programs until justification and funding is established for Ranked or Special Appointment Faculty, except adjunct/part-time faculty, 3) Funds Generated by M5U-Paducah Campus MSU agrees that one hundred (100) percent of all philanthropic funds secured and designated to the Paducah Campus will be invested in the Paducah Campus for the purpose of future building projects or other purposes for the Paducah Campus as may be specifically designated by the donor and allowed by law. Additionally, procurement for the Paducah Campus will utilize local vendors for products and services where possible and consistent with law. It is understood among the parties that any donations specifically made for the Crisp Center, located at 3000 Irvin Cobb Drive in Paducah, can only apply "to such use and no other" pursuant to Kentucky Revised Statutes 164.470. 4) Cooperative Effort The Paducah Campus is intended to be a cooperative effort between MSU and the Greater Paducah region through the locally established Paducah Campus. Collaboration between the elected leadership of McCracken County, City of Paducah, GPEDC officials, and University officials will be formally established through the MSU- Paducah SUPaducah Campus Advisory Committee. Further, MSU agrees that representatives from the County, City, GPEDC, and local community as a whole will participate in the selection of the top administrator of the Paducah Campus through representation on the search advisory committee if such a vacancy should occur. MSU's obligations and responsibilities under this Memorandum of Understanding are contingent upon its receiving continuing appropriations for each subsequent fiscal biennium of the Commonwealth of Kentucky from the Kentucky General Assembly sufficient for it to perform its obligations hereunder, and its receiving all approvals including any needed approvals from the Council on Postsecondary Education, or successor state agency overseeing higher education program approval. 4. Other Considerations Regarding the Facility and Property: a) The parties agree to good faith negotiations and the execution of all leases, easements, extensions, and subsequent agreements necessary to effectuate the terms and provisions of this Memorandum of Understanding. b) It is understood among the parties that the Request for Proposals for design work for the educational building and associated streets, parking lots, utilities and infrastructure will have issued within 120 days of the bonds proceeds being available for draw by MSU, but nothing in this Memorandum of Understanding is intended to guarantee a specific date for the completion of construction of the Paducah Campus. c) MSU has authority to design and construct the Paducah Campus under this Memorandum of Understanding to meet the University's design, architectural, and engineering standards, as well as all applicable federal and state codes and regulations. In the event that construction bids are received which would cause the total construction budget based on available net proceeds of the bond sale to be exceeded, all parties will work together to find a solution for covering any projected overruns prior to awarding of bids. If agreement cannot be reached between the parties, the project will be value engineered to the extent possible and if necessary re -designed and re -bid. d) Upon repayment of the bond to be issued by the County, sole ownership of the facility shall be deeded to MSU, but only if the headcount enrollment at the Paducah Campus in credit bearing courses is 2,000 students or larger (based upon MSU Office of Institutional Research data). Other provisions will also apply to this requirement: 1) If MSU has not met the 2,000 enrollment target at the date of the final bond payment, the parties agree to good faith negotiations to determine an annual lease payment amount that MSU will pay to the County, City, and/or GPEDC until the enrollment target is met. In no case shall that annual lease payment exceed the amount of MSU's previous annual bond payment contribution. 2) If MSU achieves the 2,000 enrollment target for any four (4) consecutive fiscal years during the 20 -year bond -repayment period, the enrollment requirement for MSU ownership will be deemed to have been met notwithstanding whatever the enrollment is at the time the bonds are repaid.��� 3) If WKCTC or its successor -in -interest offers baccalaureate degrees or any additional postsecondary institution establishes a physical presence in McCracken County during the bond - repayment period or while subsequent lease payments are being made by MSU following bond repayment, the parties agree that the requirements of this section are subject to renegotiation. e) Costs for the regular upkeep, operations, maintenance, and insurance of the educational building will be borne by MSU. If MSU constructs the streets and utilities in accordance with City requirements and they are dedicated to and accepted by the City, the City upon acceptance will maintain the streets and utilities so dedicated. f) As MSU owns the land on which the Paducah Campus will be constructed, nothing in this Memorandum of Understanding limits the ability of MSU to develop and manage the remainder of the property according to its wishes in accordance with law. g) MSU will provide all furniture and instructional equipment for the educational building. h) Signage clearly identifying the Paducah Campus as a campus of MSU will be prominently displayed, including along the frontage of 1-24, in accordance with law. i) Securing funds from philanthropic donors, including for the granting of any naming rights for the Paducah Campus including the educational building is assigned to MSU as long as consistent with MSU policy on the naming of campus facilities. 5. Modification of Memorandum of Understanding: The Memorandum of Understanding may be modified only by written amendment executed by all parties hereto. 6. Insurance/liability: Each party will be responsible for liability coverage of its employees and agents in fulfilling its responsibilities under this Memorandum of Understanding, to the extent authorized by law. 7. Term of the Memorandum of Understanding/Termination: The period of performance for this Memorandum of Understanding shall begin on July 1, 2011, and shall continue through the later of October 31, 2031 or the date the original bonds are retired, unless terminated earlier in accordance with the provisions herein. The initial twenty (20) year term of this Memorandum of Understanding is established in order to allow for the repayment of the bonds which will be issued to finance the project. On or before the beginning of year twenty (20) of the arrangement, the parties will conduct a comprehensive review and, upon mutual agreement, the parties may enter into an extension of this Memorandum of Understanding. s. Contingencies: In addition to other provisions herein, this Memorandum of Understanding shall be contingent upon: (i) the issuance of the Bond, (ii) the County's satisfactory completion of legal due diligence, including review of title examinations, surveys, and environmental reports, (iii) approval and consent of this Memorandum of Agreement by the governing body or the board of directors of each party, and (iv) finalizing all subsequent documents required to implement this Memorandum of Understanding. 9. In the event language in subsequent agreements between the parties conflicts with language in this Memorandum of Understanding, the language in the subsequent agreements will be controlling. Signature of Parties Authorized Representatives: Judge -Executive Van Newberry Date McCracken County Fiscal Court Bill Paxton, Mayor City of Paducah Dr. Randy Dunn, President Murray State University Chad Chancellor, President/CEO Greater Paducah Economic Development Council Date Date Date