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lliNEW Of Report Number 09-090 PRIGM Agenda Section VI-9 the city that works for you Council Meeting Date March 24, 2009 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: APPROVE THE MEMORANDUM OF UNDERSTANDING WITH NATIONAL INDEPENDENT HEALTH CLUB ASSOCIATION (NIHCA) AT THE FAMILY SERVICE CENTER. DEPARTMENT HEAD'S APPROVAL: Sandy Breuer; Director of Parks and Recreation r"- CITY MANAGER'S APPROVAL: ��f No comments to supplement this report L/-- Comments attached Recommendation: Approve the Memorandum of Understanding the National Independent Health Club Association (NIHCA) in the Family Service Center. Legislative History: - The City of New Brighton City Council approved a Lease Agreement with NIHCA at the November 14, 2006 council meeting. The City of New Brighton's Economic Development Authority approved NIHCA to lease space within the Family Service Center at the December 12, 2006 EDA meeting. The City of New Brighton entered into a lease agreement effective November 16, 2006 through December 31, 2007 to lease approximately 382.5 square feet (Room 229) of the Family Service Center. The City of New Brighton City Council approved the two year term lease (January 1, 2008 through December 31, 2009) at the August 14, 2007 council meeting. Financial Impact: The National Independent Health Club Association (NIHCA) will be leasing the additional space (Room 233) at the Family Service Center for $12 per square foot at 244 square feet totaling $2,928 per year. This rate is consistent with the current Lease Agreement. As the current Lease Agreement states NIHCA will pay for data line(s) at a monthly access rate of $15 per line, quarterly. Due to the additional space, NIHCA will also pay a monthly rate of 0.895% of all associated utility costs, garbage/refuse pick-up and inspection fees, etc. NIHCA will continue to provide reimbursement credits for members who hold insurance that NIHCA provides at no cost to the FSC budget (cost savings of approximately $1,000). Explanation: NIHCA has expanded in staffing and is in need of additional space. New Brighton Parks and Recreation Department has worked through the details to accommodate this need. A Lease Amendment will be presented to Council at the April 14, 2009 Council meeting. Cost and Funding: All room impro ents and f irnishmgsPwill be at the cost of NIHCA. 'Jason T. West Assistant Director of Parks and Recreation C;\Aocumems and Scnings\sbrcue\Local Settings\Temporary Intemet Fi1es\0LKC5\NIHCA MOU 3 24 09AM