ORD 39473 - Interlocal UNO Med Center Cancer Center - Design Construction Maintenance JO
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Telefax(402)444-5125
�4TL'D FEB11°* r)
City of Omaha y Paul D. Kratz
Jim Suttle,Mayor City Attorney
Honorable President
and Members of the City Council,
The attached Ordinance is submitted by Council President Mulligan and Councilmembers
Gernandt, Jerram, Festersen, and Gray.
The Ordinance approves an interlocal agreement between the City of Omaha and the Board of
Regents of the University of Nebraska. The agreement commits the City to provide $35 million to
support designing, constructing and maintaining a comprehensive cancer center campus (the
"Project") to be located on the University of Nebraska Medical Center campus in Omaha.
Payment will be made over ten (10) or more years so this agreement can only be approved by
Ordinance.
The Project has a total expected capital cost of $370 million and is expected to result in the
creation of more than 4,500 new jobs and an infusion of an additional $537 million annually into
the City's economy. Financial support is provided pursuant to the City's authority to promote
the general interests and welfare of City residents. It's anticipated that the Project will assist in
retaining residents employed in medical research and treatment, attracting new residents
employed in those fields, and attracting persons seeking both in-patient and out-patient cancer
treatment. This will add to the City's economic vitality during construction and after the Project
is completed in 2016. The Project will further enhance the Medical Center's reputation and
ensure the Center's continued competitiveness in cancer research and treatment. In addition to
the City's contribution, the project is supported by state and county funding and private
donations.
Respe y submitted:
Thomas O. Mumgaard 1
Deputy City Attorney
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ORDINANCE NO. 39y�,3
1 AN ORDINANCE to approve an interlocal agreement between the City of Omaha and the
2 University of Nebraska; to commit the City to provide $35 million over ten (10) or more
3 years to support designing, constructing, and maintaining a cancer center campus on the
4 University of Nebraska Medical Center campus in Omaha; to designate the funding
5 source; to authorize the Mayor and City Clerk to execute and attest the agreement; and to
6 provide the effective date hereof
7 WHEREAS, the University of Nebraska operates a Medical Center in Omaha that is a premier,
8 nationally ranked research and academic medical facility providing excellence in
9 professional medical education, research, and treatment; and
10 WHEREAS, the University of Nebraska Medical Center employs thousands of residents of the
11 City, provides educational opportunities for thousands of students, and attracts equally
12 large numbers of visitors for medical treatment and care; and
13 WHEREAS, the University of Nebraska Board of Regents is embarking on constructing a
14 comprehensive cancer center to be located on the Medical Center's campus and has
15 requested the City enter into an agreement to provide funding to assist in the design,
16 construction, and maintenance of the cancer center campus; and,
17 WHEREAS, his City Council finds it is in the best interests of the citizens of the City to enter
18 into the attached multi-year interlocal agreement to assist the University of Nebraska, add
19 to economic vitality and growth in the City, and provide funding from a proposed
20 occupation tax on persons engaged in the occupation of tobacco dealers within the City.
21 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
ORDINANCE NO. (39y?3
Page 2
1 Section I. That the attached interlocal agreement between the City of Omaha and the
2 Board of Regents of the University of Nebraska is hereby approved and the Mayor and City
3 Clerk are authorized to execute and attest, respectively, that Agreement.
4 Section 3. This ordinance shall be in effect and in full force fifteen days from and after
5 the date of its passage.
INTRODUCED BY COUNCILMEMBER
,41.477/etli(71A
APPROVED BY:
AYO' OF THE CITY OF OMAHA DATE
PASSED OCT - 2 2012 c3, ye
, s t v! a 4o4 may,
ATTEST: S4/�/,� 1�/
/*/ /%7L1'04
4LEOTHEITYOFOAHADATE
APPROVED AS FORM:
cm/4e
DEPUTY CITY AT9RNEY DATE
p:\law—city council documents\2012\50058s1w.doc
INTERLOCAL COOPERATION AGREEMENT
This Interlocal Cooperation Agreement ("Agreement") is made and entered into, as of the
dates indicated below, by and between BOARD OF REGENTS OF THE UNIVERSITY OF
NEBRASKA, a public body corporate of the State of Nebraska ("University"), by and on behalf
of its administrative unit, the University of Nebraska Medical Center ("UNMC"), and the CITY
OF OMAHA, NEBRASKA, a municipal corporation ("City") (UNMC and City together, the
"Parties").
RECITALS
WHEREAS, UNMC is the academic and research health science medical component of
the University, and it is desirous of designing, constructing and maintaining a comprehensive
cancer center campus (the "Project") to be located on its campus in Omaha, Nebraska; and,
WHEREAS, City is a municipal corporation with the authority to provide for economic
development in the City and to provide for the general health and welfare of its citizens; and,
WHEREAS, the Parties acknowledge that the Project, which has a projected capital cost
of $370 million, will result in the creation of more than 4,500 new jobs and will infuse an
additional $537 million annually into to the metro City area, producing a substantial positive
economic impact to the City; and,
WHEREAS, the Parties acknowledge that the proposed sources of financial support for
the Project include a $50 million appropriation from the State of Nebraska, pursuant to Nebraska
Legislative Bill 968 (2012), and other public and private sources; and,
WHEREAS, UNMC has requested financial support from the City for the Project, and
the City desires to provide financial support to UNMC for the Project, in an amount equal to the
Funding Amount (as defined below); and,
WHEREAS, the City has adopted an Ordinance on , 2012 (the "Ordinance")
creating an occupational tax on businesses in the City that sell tobacco products at retail (the
"Occupation Tax"), in order to provide additional revenues to support the City's payment of the
Funding Amount.
NOW, THEREFORE, in consideration of the following terms and conditions, the Parties
mutually agree as follows:
Section 1. Interlocal Cooperation. Pursuant to the Nebraska Interlocal Cooperation
Act, NEB. REV. STAT. §§ 13-801 to 13-827, inclusive (Reissue 2007, as amended) (the "Act"),
UNMC and the City enter into this Agreement for the purpose of enabling the City to participate
in the funding by UNMC for the construction of the Project. This Agreement shall not create any
separate legal or administrative entity, nor any joint budget. There shall be no jointly held or
owned property by the Parties under this Agreement. The City shall not have any interest in or
rights with respect to the Project, and City shall not be entitled to exercise any control or
direction with respect to the Project, other than as set forth in Section 4 below.
Section 2. Duration and Termination. This Agreement shall be effective from the date
it is fully executed by the Parties, and shall terminate on the earlier of payment in full of the
Funding Amount, as set forth in Section 4 below, or the written agreement of the Parties.
Section 3. Obligations of UNMC. UNMC shall perform, or cause to be performed, as
appropriate, at no expense to the City other than as set forth in Section 4 below, at its sole
expense, the following tasks:
A. Design and construct the Project in accordance with Project documents approved
by the University as may be required.
B. Provide to the City, in form as the City may reasonably request, accounting and
certification that the funds provided by the City under Section 4 below are expended in strict
compliance with Project requirements, including but not limited to, the costs of design,
constructing and equipping the Project, or for debt service payments on revenue bonds or other
bonds issued by or on behalf of the University, the proceeds of which are used for such costs.
Section 4. Obligations of the City. The City shall perform its obligations as set forth in
the Ordinance, and shall make payments to UNMC of the Funding Amount as follows:
A. The Funding Amount is $35,000,000.00.
B. The City shall create a special account in the general fund into which collections
from the Occupation Tax shall be deposited. The City shall make annual payments to
UNMC in the amount of$3,500,000.00 per year, or lesser amount in the event, and to the
extent, that collections of the Occupation Tax during the prior applicable twelve month
collection period are less than $3,500,000.00, until the Funding Amount has been paid in
full. The first payment shall be made to UNMC on July 1, 2014, and subsequent
payments shall be made on the first day of July each year thereafter until the Funding
Amount has been paid in full. The Funding Amount may be prepaid by the City, in whole
or in part, at any time.
C. UNMC acknowledges that the City's obligation hereunder is limited to the
amount of Occupation Tax actually collected and that the City is not required to use any
other funds to make up any shortfall.
Section 5. Liability and Indemnification. Each Party agrees that it will be responsible
for its own acts and the results thereof and shall not be responsible for the acts of the other Party
and the results thereof. Each Party therefore agrees that it will assume all risk and liability to
itself, its agents or employees, for any injury to persons or property resulting in any manner from
the conduct of its own operations and the operations of its agents or employees under this
Agreement, and for any loss, cost or damage caused thereby during the performance of this
2
Agreement; and to the extent allowed by law, each Party agrees to indemnify the other from
liability to third persons resulting from its own negligent acts, errors or omissions.
Section 6. Conflict of Interest. Pursuant to Section 8.05 of the Home Rule Charter of
the City of Omaha, no elected official or any officer or employee of the City shall have a
financial interest, direct or indirect, in this Agreement.
Section 7. Discrimination. Neither UNMC nor the City shall, in the performance of this
Agreement, discriminate or permit discrimination against any person because of race, sex, age,
disability, national origin, political beliefs or affiliations in violation of federal or state laws.
Section 8. Governing Law. This Agreement shall be governed by and interpreted in
accordance with the statutory and decisional law of the State of Nebraska.
Section 9. Amendment. This Agreement may be amended in writing signed by the City
and UNMC. Any amendment to this Agreement must first be approved by resolution of the
governing body of each Party.
Section 10. Miscellaneous. The instrument contains the entire agreement of the Parties
and shall be binding upon the successors and assigns of the respective Parties. No amendment,
deletions, or additions shall be made to this Agreement except in writing.
Executed this Jay of , 2012.
CITY OF OMAHA, NEBRASKA, THE BOARD OF REGENTS OF THE
a municipal corporation UNIVERSITY OF NEBRASKA, a public
body corporate of the State of Nebraska and
c governing body of the University of
By: Nebraska Medical Center
]im ttle, ayor
Ci of Omaha
By:
Date: __ 3a es R. Milliken, President
Date: October 26, 2012
ATTES
Ey:
C en K. Ma rer, r oration Secretary
APP ED A TO ORM:
4ed4 /‘
� � Y
City Clerk Ocg City Attorney
p\luw—city council doeuments12012150066siw.doe
3
REQUEST TO LAW DEPARTMENT
For Law Department Use Only
TO: Paul D. Kratz, City Attorney_
Log Book#: 176-12 = COUNCIL
DATE: September 10, 2012 Date Assigned: 09/10/12
Assigned to: frltwipccr„j/ / ' -T
Answered/Sent Out: cl/l //
Withdrawn:
REQUEST BEING MADE BY: On behalf of Councilmembers Mulligan, Gernandt, Jerram,
Festersen and Gray
Warren Weaver, City Council Chief of Staff 5518
(Name) (Department) (Phone)
TIME LINE (Due Date): September 18, 2012, City Council Agenda
(12 Working Days from Date Received by Law Department)
REQUEST FOR: Ordinance for Occupational Tax and Inter-Local Agreement with UNMC
(State Specifically What You Are Requesting)
DETAILS: (Do Not State"See Attached)
Councilmembers Mulligan, Gernandt, Jerram, Festersen and Gray request an ordinance be
prepared and placed on the Council agenda for September 18, 2012, to implement an
occupational tax on the gross sales of tobacco products by tobacco retailers, as discussed with
Deputy City Attorney Tom Mumgaard.
These same Councilmembers request an inter-local agreement with UNMC to provide up to
$35 million over a ten year period to be used for construction of a cancer research center, as
previously discussed with Mr. Mumgaard.
Call Warren Weaver with any questions.
INFORMATION ATTACHED: YES NO x NONE AVAILABLE
WW/tlb
c: All Councilmembers
Steve Oltmans, Mayor's Chief of Staff
Pam Spaccarotella, Finance Director
Rick Cunningham, Planning Director
Buster Brown, City Clerk
Council Staff
��„er/
ORDINANCE NO. L3W '
AN ORDINANCE to approve an
interlocal agreement between the City
of Omaha and the University of
Nebraska; to commit the City to provide
$35 million over ten (10) or more years
to support designing, constructing, and
maintaining a cancer center campus on
the University of Nebraska Medical
Center campus in Omaha; to designate
the funding source; to authorize the
Mayor and City Clerk to execute and
attest the agreement; and to provide
the effective date hereof.
p:\law — city council
documents\2012\50059s1w.doc
` _
PRESENTED TO COUNCIL
1,st Readin SEP 1 8 2012 - I .C L1;.(,
Hearing SEP 2 5 2012 --d.*v
PUBLICATIONS
PUBLICATION OF HEARING Final Reading OCT - 2 ZOIz
Date LOI
PaS,3ed -
PUBLICATION OF ORDINANCE 62S/S , /'°X
44/ 7� " ��SUSTER BROWN
Date i i LC City Clerk
"NOTICE TO PUBLIC" THE DAILY RECORD
The following Ordinance has been set for OM A LT A
City Council Hearing on September 25, OF lJl!'1L- HA
2012,at TOO p.m.:
AN ORDINANCE to approve an interlocal LYNDA K. IIENNINGSEN, Publisher
agreement between the City of Omaha and
the University of Nebraska; to commit the PROOF OF PUBLICATION
City to provide $35 million over ten (10)or
more years to support designing,
constructing,and maintaining a cancer tether UNITED STATES OF AMERICA,
campus on the University of Nebraska
Medical Center campus in Omaha; to The State of Nebraska, ss.
designate the funding source; to authorize District of Nebraska,
the Mayor and City Cleric to execute and
attest the agreement; and to provide the County of Douglas,
effective date hereof.
BUSTER BROWN, City of Omaha,
City Clerk
9-21-12 J.BOYD
being duly sworn,deposes and says that the is
LEGAL EDITOR
of THE DAILY RECORD, of Omaha, a legal newspaper, printed and
published daily in the English language, having a bona fide paid
circulation in Douglas County in excess of 300 copies, printed in
Omaha,in said County of Douglas,for more than fifty-two weeks last
past; that the printed notice hereto attached was published in THE
DAILY RECORD,of Omaha,on
September 21, 2012
That said Newspawrt during that time was art published and
in general ciri,ul{ttion A. ...County of Dougla , tate of Nebraska.
•
h.(discribed Ll fn p esoneo and sworn to (loreoccom g14 * e this 21 St: day of
EXPIRES 5eptemhe 2U 12
Additic*al[pies
. �J i
i._ UfF N 0.- Notary Public' f 1 1 1 •_ ounty,
�dL�] S• ,.ofNo was c.4�
CORRECTED THE DAILY RECORD
"NOTICE TO PUBLIC"ORDINANCE NO.39473 '/'�F OMAHA
AN ORDINANCE to approve an iiiterlocal
agreement between the City of Omaha and
the University of Nebraska; to commit the LYNDA IC. HENNINCSEN, Publisher
City to provide es $to millions overrtten(gni or PROOF OF PUBLICATION
more
years to support designing,
constructing,and maintaining a cancer center
campus on the University of Nebraska
Medical Center campus in Omaha; to UNITED STATES OF AMERICA,
designate the funding source; to authorize
the Mayor and City Clerk to execute and The State of Nebraska, SS.
attest the agreement; and to provide the District of Nebraska,
effective date hereof.
SUMMARY: County of Douglas,
AN ORDINANCE to approve an interlocal City of Omaha,
agreement between the City of Omaha and
the University of Nebraska; to commit the
City to provide$35 million over ten(10) or J. BOYD
more years to support designing,
constructing,and maintaining a cancer center being duly sworn,deposes and says that she is
campus on the University of Nebraska
Medical Center campus In Omaha; to
designate the funding source; to authorize LEGAL EDI'1`Olt
the Mayor and City Clerk to execute and
attest the agreement; and to provide the of THE DAILY RECORD, of Omaha, a legal newspaper, printed and
effective date berg, published daily the English language, havinga bona tide paid
PASSED:October 2,2012,5-2 in � �r
APPROVED BY: circulation in Douglas County hi excess of 300 copies, printed in
JIM SUITLE I0/9/12
MAYOR OF THE Omaha,in said County of Douglas,for more than fifty-two weeks last
CITY OF OMAHA past; that the printed notice hereto attached was published in'1'IiE
BUSTER BROWN,
City Clerk DAILY RECORD,of Omaha,on
10.15.12
October 15, 2012
That. r:.r er during that time was regular published and
in ge e,_n+#s1 n.; is .,•4.%
i l the County of Douglas,and S at Al Nebraska.
Ai IA
6. Subscribed in lily pi'eien .:oiu1 swo ve-fOre
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a 15th
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