Vera Whole Health Inc 12/20/2019 Amendment 1

avernird ( ineod_r ` EVERETT Project title: Authorize the Mayor to sign the Amendment to the Vera Clinic Agreement and Claremont Village Lease Amendment in substantially the form provided. City Council Agenda Item Cover Sheet Council Bill# Consideration: Approve the Amendment to the Vera Clinic Agreement Project: Vera Clinic Implementation Agenda dates requested: Partner/Supplier : Vera Whole Health 12/11/2019 Location: 4931 Evergreen Way, Suite 931 Everett, WA 98203 Briefing Preceding action: Mayor authorized Vera Clinic Agreement 6.7.2019 Proposed action Fund: Various Consent Action Fiscal summary statement: Ordinance The Vera clinic costs will be distributed based on the number of HMA participants as follows: Public hearing FUND DESCRIPTION AMOUNT Yes x No Fund 162 CIP 4(General Govt. Funds) $672,210 Fund 153 EMS 9,190 Budget amendment: Fund 401 Utilities 290,153 Yes x No Fund 425 Transit 181,182 PowerPoint presentation: Fund 440 Golf 13,129 Fund 501 MVD 28,884 Yes x No Fund 507 Telecommunications 5,252 Attachments: Total $1,200,000 Project summary statement: Department(s) involved: The Vera Clinic will provide primary and preventive care, including generic prescriptions, HR, Legal,Administration for City employees and their dependents starting on January 22, 2020. It will be located in the Claremont Village Shopping Center on Evergreen Way. The purpose of the Vera Contact person: Clinic is to reduce the cost of the City's medical benefits. Susy Haugen The original agreement with Vera was approved by Council in May 2019. Under that Phone number: agreement,the City is responsible for start-up expenses and is responsible for ongoing 425.257.8612 clinic expenses, such as salaries, equipment, and rent. The majority of the start-up expenses is for tenant improvements to the Clinic location. In the original agreement, the start-up expenses were roughly estimated at$733,000. The start-up expenses are Email: now estimated at$1,600,000. This increase is primarily due to the fact that the size of shaugen@everettwa.gov the Clinic was originally estimated at 2,200-2,500 sq. ft. The Claremont Village space is actually 4,100 square feet. While representing a larger initial cost,this larger size presents a future opportunity, as it will allow Vera and the City to find other employer- partners to share the Clinic. This would have the effect of allowing the City to share on- going Clinic expenses. N Initialed by: The primary purpose of the proposed amendment to the Vera Clinic Agreement is to deal with this start-up expenses increase. The amendment provides that the City will Department head not pay all of the increase in start-up expenses. Instead, the City's start-up expenses will Cf be capped at$1,200,000,with Vera paying the rest. The secondary purpose of the Administra amendment to the Vera Clinic Agreement is to approve a technical lease amendment to �I Vera's Claremont Village lease. Cou cil President Recommendation (exact action requested of Council): v Authorize the Mayor to sign the Amendment to the Vera Clinic Agreement and Claremont Village Lease Amendment in substantially the form provided.