HomeMy WebLinkAboutResolution No. 2009-02$v ~\__
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Suggested by: Administration
~~ tH«tty a f // CYTY OF KENAI
KENA\U~ SKA
RESOLUTION NO. 2009-02
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
THE CITY TO ENTER INTO AN AGENCY FUND AGREEMENT WITH THE KENAI
COMMUNITY FOUNDATION.
WHEREAS, the Kenai Community Foundation (Foundation) is a non-profit ("501(c)(3)")
corporation dedicated to support museums, parks and recreation, music, fine arts,
library and historic purposes within Kenai's city limits; and,
WHEREAS, in order to keep its overhead low and maximize the amount of donations
reaching its charitable purposes, the Foundation does not wish to have paid staff to
manage it money; and,
WHEREAS, the City of Kenai already has the staff, structure and financial controls to
manage the Foundation's donations as part of the City's investments; and,
WHEREAS, because of that established structure and policy, the City can manage the
Foundation's money without significant expense to the City; and,
WHEREAS, while the City will manage the donations for the foundation, the decisions
regarding to whom the Foundation awards money shall be made by the Foundation,
not the City; and,
WHEREAS, under an agency fund agreement, the City will be authorized to manage
the Foundation's donations while allowing the Foundaton to retain decision making
authorized for award of grants and donations; and,
WHEREAS, because the charitable purposes of the Foundation directly benefit the
citizens of Kenai, it is in the best interest of the City to enter into an agency fund
agreement with the Foundation.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the City of Kenai is authorized to enter into the attached agency fund
agreement (Attachment "A") with the Kenai Community Foundation.
PASSED BY THE COUNCIL OF THE CITY OF EN LASKA this fourth day of
February, 2009.
PAT PORTER~MAYOR
ATTEST:
Cie
Corene Hall, Acting City Clerk
Approved by Finance: ~ ,,
AGENCY FUND AGREEMENT
AGREEMENT: This Agreement to create the Kenai Community Fund (the "Fund") is
made effective the day of , 2009, between the City of Kenai ("the City")
whose address is 210 Fidalgo Avenue, Kenai AK 99611 and The Kenai Community Foundation
(referred to as "Foundation) whose address is 125 No. Willow Street, Kenai, AK, in
consideration of the promises contained in this Agreement.
PURPOSE: The parties desire to establish the Fund as an agency fund of the City for the
charitable purposes described on the attached Exhibit A. Should the purposes for which the
Fund was created ever become obsolete, incapable of fulfillment, or inconsistent with the
charitable needs of the community, the Funds's governing Board of Directors will use the fund
for charitable purposes as similar as possible to those set forth iii the Agreement.
CONTRIBUTIONS TO FUND The City Agrees to accept and hold funds delivered by or
on behalf of the Foundation in accordance with and subject to the limitations of this Agreement.
The initial contribution by the Foundation to the Fund shall be
Generally accepted accounting principles require contributions from anot-for-profit entity
(Agency) into a fund for its own benefit to be reported as assets on the financial statements of the
Agency. Contributions from other sources will not be permitted.
DISTRIBUTION OF FUNDS: The City shall pay over money from the Fm1d only to the
Foundation and only upon delivery by the Foundation to the City of a properly completed funds
distribution request in such form as the City shall require. Normal requests should allow
approximately 10 working days for disbursement. Emergency requests, however, can be handled
on an expedited basis.
RESOLUTION 2009-2 ATTr1CHMENT "A"
CITY OF KENAI AND THE IZENAI COMMUNI'T'Y FOUNDATION
ENDOWMENT FUND AGREEMENT Page I of 2
MANAGEMENT OF FUND: The Fund shall be invested as part of the pooled
investments of the City, receiving a proportionate share of income and realized and unrealized
capital gain or loss net of all related investment administration fees. The City shall hold and
manage the investment of Funds in accordance with KMC 7.22. The agency recognizes and
accepts the inherent risk of investing azrd agrees to hold the City of Kenai and its officers,
employees, elected officials azid agents harmless for investment performance provided the
investment activity complies with IC.MC 7.22, or for any disbursement of funds made in
accordance with the direction of the Foundation.
GOVERNTNG LAW: The Fund and this Agreement shall be governed by and construed in
accordance with the laws of the State of Alaska.
CANCELLATION: This Agreement may be canceled by either party upon 60 days written
notice. Upon cancelation the City will return money held in the agency fund net of any capital
gain or loss and investment admalistrative fees to the Foundation.
THE KENAI COMMUNITY FOUNDATION .CITY OF KENAI
BY:
Date:
Rick R. Koch, City Manager
Date:
RF,SOLUTION 2009-2 ATTACHMENT "A"
CITY OF KENAI AND THE KENAI COMMUNITY hOUNDATION
ENDOWMEN'I'FUND AGREEMENT
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