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HomeMy WebLinkAboutResolution No. 2009-03:,~~~\ Suggested by: Administration ~I°t`Y ®F i{ENL~Pi RES®LLTTI~LV N®. 2009-®3 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING NOMINATIONS FOR PROJECTS FOR THE 2010-2013 STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM (STIP). WHEREAS, the State of Alaska, Department of Transportation and Public Facilities (ADOT/PF) has announced its Call for Nominations for roads and trail projects to be considered for federal funds in the 2010-2013 STIP; and, WHEREAS, the Kenai City Council each year establishes capital improvement priorities, including proposed state and federally funded road and trail projects; and, WHEREAS, the City of Kenai wants their road and trail capital improvement projects to be nominated and considered for inclusion in the ADOT/PF 2010-2013 STIP; and, WHEREAS, the projects are as follows: 1. Kenai Bridge Access Road Pedestrian Pathway 2. Kenai Spur Highway -Upgrade Five Intersections 3. Kenai Spur Highway -Upgrade to Five Lane Configuration between Soldotna and Kenai 4. Beaver Loop Road Improvements and Pedestrian Pathway NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, it approves nominations for the above-listed projects for the 2010-2013 Statewide Transportation Improvement Program (STIP). PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18th day of February, 2009. ATTEST: _~/~ Carol L. Freas, City Clerk PAT PORTER, MAYOR `s ~=~~` _ Suggested by: Administration ~euh °f CITY OF KENAY KEKA~ SKA RES®Y.IS1°YfSYS PI®. 2®®3-62 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 anon-profit ("SOl(e)(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 Foundation 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: C~,..~~ Corene Hall, Acting City Clerk Approved by Finance: ~ ~~ .~ -, AGENCY FUND AGREEMENT AGREEMENT: This Agreement to create the Kenai Commw~ity 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 Commluvty 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 wlvch 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 in 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 (imitations of tills Agreement. The initial contribution by the Foundation to the Fund shall be Crenerally 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 Ia LJNDS: The City shall pay over money from the Fund only to the Foundation and only upon delivery by the Foundation to the City of a properly completed fiords distribution requestrn such form as the City shaII require. Normal requests should allow approximately ] 0 working days for disbursement. Emergency requests, however, can be handled on an expedited basis. RESOEUTION 2009-2 ATTACHMENT `A" C7TY OF KENAI AND THE KENAI COMMUNITY FOUNDATION ENDOWMENT FUND AGREEMENT Page I oft MANAGEMENT OP FUND: The Fund shall be invested as part of the pooled investments of Che City, receiving a proportionate share of income and realized and um'ealized capital gain or loss net of all related investment adnunistration 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 and agrees to hold the City of Kenai and its officers, employees, elected officials and agents harmless for investment performance provided the investment activity complies with KMC 7.22, or for any disbursement of funds made in accordance with the direction of the Foundation. GOVERNING 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 administrative fees to the Foundation. TIIE KENAI COMMUNITY FOUNDATION CITY OF KENAI BY: Date: Rick R Koch, City Manager Date: RESOLUTION 2009-2 ATTACHMENT "A" CITY OF KENAI AND THF., KENAI COMMUNITY FOUNDATION P,NDOWMENT FUND AGREEML;NT Page 2 of 2 /.\ ~3~-~~ a I -. theu~af KENA~ SKA To: Rick Koch, City Manager "I/illa~e rvit~r a Aast, Ga~ wit~r a Fr~tr~re" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 ext 221 /FAX: 907-283-3014 From: Ten:y Eubank, Finance Director ~~ Date: January 29, 2009 Re: Formation of the Kenai Community Foundation (KCF) Agency Fund Resolution 2009-02 will create a Agency Fund in which the City will account for the funds invested on behalf of the KCF. Agency Fund Accounting is one of the simplest forms of fund accounting and will not add any significant demand upon Finance Department staff or ~6naueial resources. The fund that will be created will consist of two accounts. Cash, an asset account representing the balance of funds being held by the City as an Agent KCF, and Due to KCF, a liability account representing that all funds held are due and payable to the KCF upon request. Unlike other types of Governmental Funds, an Agency Fund does not represent the operations of the City and thus there is no need to measure the effectiveness of the Ftmd. Effectiveness of KCF will be evaluated by an examination of its financial statements on which the City has no control or interest. With no need to measure the effectiveness of the fund, there are no revenue or expenditure accounts within the fund and thus no requirement for annually adopted budgets. Discussions with the City's external auditor, Mikmida, Cottrell & Co. indicate no anticipated change in either the performance or fees 'For the City's annual audit will result from the creation of this Agency Fund. Beyond the accounting issues, which I believe to be nunimal, there are three areas of concern that I believe have been addressed and satisfied by the proposed Agency Fund Agreement. These three concerns are 1) it should be clear the City's only responsibility is to invest the funds given to it by KCF and has no direct or advisory capacity in the use of KCF funds, 2) KCF's acceptance of the inherent risk of investing, and 3) adequate time must be allowed for the City to process a disbursement request from KCF. With no significant impact on the Finance Depatment acid addressing all of the concerns raised, I have no objection to the creation KCF Agency Fund nor the proposed Agency Ftimd Agreement.