Title/Name/Summary
Power Wellness Management - Approval
History
On March 23, 2016, the Village of Orland Park (VOP) and Palos Community Hospital (PCH) entered into a Memorandum of Understanding (MOU) regarding the preservation of the existing fitness center, including a possible land exchange between the parties. On July 18, 2016, the Village Board approved the Land Exchange Agreement which reflects the terms of the land exchange negotiated between both parties.
As a result, the transfer of ownership of the fitness facility to the Village of Orland Park will occur on January 2, 2017. Throughout the due diligence period, staff had been working with Power Wellness Management, who has been overseeing the operations of the fitness center since its inception in 2001.
Power Wellness Management, founded in Chicago in 1996, has been a proven leader in the development and management of institutional based fitness centers. Power Wellness manages over 1.4 million square feet of facilities and employs approximately 2,400 team members serving nearly 100,000 members, including students, employees, and community members. Power Wellness has experience in developing multi-purpose fitness centers for healthcare, academic, and nonprofit institutions.
Among many awards, Power Wellness had been selected as one of the Chicago Tribune’s Top 100 Workplaces in 2014 and 2015. In 2014, their first year of participating in the award, they placed 10th overall in the Midsized Company group. Power Wellness scored the highest amongst all participating Mid-sized companies in the Managers scores category. The evaluation for the Top Workplaces program was based on the feedback from an employee survey among their Chicagoland team members.
In 2014, Power Wellness was the recipient of the first annual Excellence in Management Award from the Medical Fitness Association. This award is based on the overall service to patients, clients and communities in which the winning management company serves.
Power currently manages 32 institutional and multi-purpose centers throughout the United States and in Asia. Power’s comprehensive services include: feasibility studies, project planning, development, equipment specification and procurement, fitness programming, information technology, sales and marketing, staffing and on-going operations management.
Power Wellness has proven to be very helpful during the transition period and staff is confident that with their assistance, the transfer of the facility on January 2, 2017 to the Village will be seamless. Staff is recommending entering into a three year agreement with Power Wellness to manage the operations of the facility; the agreement would include a renewal option.
The costs to have Power Wellness operate the fitness center will be as follow:
Calendar Year Base
2017 $ 80,000
2018 $ 90,000
2019 $100,000
Power will also be eligible to receive incentive fees totaling $65,000, $60,000, and $55,000 in years 1, 2, and 3 respectively, should they meet certain agreed upon annual performance measurements as described in Exhibit B of the attached agreement.
Financial Impact
Monies will be budgeted in FY17, FY18 and FY19 to cover the cost of the agreement.
Recommended Action/Motion
I move to approve a three year agreement and the option to renew with Power Wellness, LLC in the amount described in Exhibit B of the attached agreement;
And
Approve the Interim Village Manager to execute the contract.