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
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