ITEM TITLE:
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#23-06 - Authorizing Lease Amendment #1 to the Lease Agreement with the Valdez Medical Clinic, LLC. for a 4,137 Square Foot Portion of the Mary Kevin Gilson Medical Center
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SUBMITTED BY: Mark Detter, City Manager
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve Resolution #23-06 amending lease agreement between the City of Valdez and Valdez Medical Clinic for lease dated 10/22/2020 and authorize City Manager to negotiate further lease rate reduction at a rate of $1.00 per year.
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SUMMARY STATEMENT:
The Valdez Medical Clinic has proposed amending lease to reduce lease rates to $1.00 per year until expiration of the current lease expiring on June 30, 2025. The lease will not eliminate the Tenant's requirement to pay taxes.
Healthcare in Valdez is facing many challenges including staffing of Physicians, which has led to the creation the Physicians Recruitment and Retention Program. While the expansion of the Physician Recruitment and Retention program to include established Valdez Physicians has had mixed feedback, the reduction of the lease rate seems a reasonable compromise.
The City Code says a lease can be negotiated by the City Manager that considers the public interest. The established fee waiver policy for staff states under section 5 of the City fee waiver policy-paragraph 3 "The purpose of the fee waiver is a defined public purpose." The Valdez City Council has made a few public policy statements on the need for Physicians in terms of the overall healthcare system in Valdez. In Resolution 18-20 establishing the Physician Recruitment and Retention Program, the City Council stated Whereas "the provision of high quality medical service is of great importance to the health and wellbeing of Valdez citizens; and Whereas, the City has determined that an insufficient number of physicians presently serve the community and the high turnover rate of physicians presently...
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