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LOAS- 26 C7)
CITY OF
MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: March 25, 2025 Title: Approval of Community Foundation Fund
Requests in Parks & Recreation
Submitted by: Kyle Karczewski, Parks and Department: DPW- Parks
Recreation Director
Brief Summary:
Staff requests authorization to receive grants and awards from the Community Foundation For
Muskegon County from certain Parks & Recreation-related funds for a total of $91,153.
Detailed Summary & Background:
The Community Foundation for Muskegon County has several funds set up to benefit City of
Muskegon Parks. Some of these state they need approval from the City Board of Directors, and while
others do not specifically need CC approval, this will serve as an informative update on the progress
of the funds. On March 19th, the Parks & Recreation Advisory Committee voted to approve these
funds to be formally requested for the purposes listed below:
Darl & Kathleen Staley Charity Fund - $37,600 - Teen activities & Summer Rec staffing
City of Muskegon Parks Fund - $4,659 - Mobi-Mat System at new South PM Restroom Facility
Lakeshore Trails Improvement Fund - $13,106 - Trail Maintenance, deck replacement & treat
invasives
Celebration Square Splashpad Fund - $35,788 - Shade sail, landscaping, painting & other
beatification
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Blight cleanup, Enhanced Parks and Recreation Department and Services, Events and activities,
Transportation options
Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life - Parks and Recreation Department and
Services
Amount Requested: Budgeted Item:
$71,153 Yes No |x| N/A
Fund(s) or Account(s): Budget Amendment Needed:
TBD Yes x | No N/A
COMMUNITY FOUNDATION for MUSKEGON COUNTY
COMMITTEE ADVISED FUND AGREEMENT
AGREEMENT made February 17, 2009, between the Estate of Darl E. Staley,
(hereinafter called "Donor") and COMMUNITY FOUNDATION
forMUSKEGON COUNTY, a
Michigan non-profit corporation (hereinafter called "Foundation"), with reference to the
following facts:
A. The purposes of the Donor are within the purposes of the Foundation.
B. The parties believe that establishment of this Endowment Fund will enhance
Donor's ability to carry out its charitable purposes.
L
ESTABLISHMENT
1.1 ‘Transfer. Donor transfers to the Foundation $91,391 to be held by the Foundation
or its Agent, to establish a fund to be known as the Darl and Kathleen Staley Charity Fund.
1.2 Additions. Donor and others at any time may make contributions to the
Foundation designated for addition to the Fund.
1.3. Acceptance. Foundation accepts the transferred property and additions and agrees
to hold, administer and distribute the Fund as provided in this Agreement.
IL.
DESIGNATED PURPOSES
2.1 General. The Fund is established to allow the net income to be distributed to the
City of Muskegon for its recreation programs. The Fund is to be endowed with income only
distributed. The City will report to the Community Foundation regarding how each grant
distribution was spent.
At such time the City of Muskegon establishes a new park, the Donor directs that the
CFMC make a distribution from the fund to City of Muskegon in an amount sufficient for the
purchase of a plaque listing all the names of past and present employees of the City of Muskegon
who have served 25 years or more with the City of Muskegon. This plaque shall be displayed in
the new park.
2.2 Expenditure of Fund. The Fund will be an "Advised Fund" as defined in a certain
resolution adopted by the Board of Trustees of the Foundation with respect to such funds. The
Advisory Committee shall consist of: The City of Muskegon Finance Director and the City
Manager for the City of Muskegon who will advise the Foundation toward the funding of
recreation projects.
They may make written recommendations as to the use of the fund. It is the intent of the
donors that the Fund be held in perpetuity with income only to be used in accordance with the
Foundation's Spending Policy.
2.3 Status of Fund. The Fund will be administered by the Foundation as its property,
held by it in its normal corporate capacity, and not as Trustee, for purposes within its charitable
purposes and in accordance with its Articles of Incorporation and By-laws; and Donor agrees to
all the terms of said Articles of Incorporation and By-laws, including, without limitation,
provisions as to presumed intent of donors, variance from a donor's restrictions, and amendments
and termination, so long as Foundation's Trustees conclude such changes will promote the
purposes of the Foundation.
IL.
ACCOUNTING AND CHARGES
3.1 Accounting. Foundation shall keep records of the Fund's receipts, disbursements |
and property on hand and, at least annually, shall provide Donor with an accounting for the Fund.
3.2 Chargesto Fund. Foundation may charge to the Fund expenses and fees which it
customarily charges to other Advised Funds. Foundation also may charge an extra-ordinary fee,
reasonable in amount, for services to the Fund which are requested by the Donors and are a
significant and unusual administrative or economic burden to the Foundation. During any quarter
that the Fund balance is less than $10,000 a $50 service fee will be charged. We further
understand the fee schedule is subject to modification and may be increased or decreased at the
sole discretion of the Community Foundation's Board of Trustees.
COMMUNITY FOUNDATION for MOSKEGON COUNTY
Chris A. McGuigan, President/CEO _)
lc\dvlp\funds\agreements\2009\staley01 09commniittee advisedshortform.doc
2012-15(d)
COMMUNITY FOUNDATION for MUSKEGON COUNTY
ORGANIZATION ENDOWMENT FUND AGREEMENT
LAKESHORE TRAILS IMPROVEMENT FUND
AGREEMENT made March 13 _ , 2012 between the City of Muskegon, (the "CITY") and
COMMUNITY FOUNDATION for MUSKEGON COUNTY, a Michigan non-profit corporation
(the"FOUNDATION'), with reference to the following facts:
A. The CITY is presently a tax-exempt organization.
B. The FOUNDATION is a publicly-supported community foundation, meeting the public
support test of IRC §509(a) and organized and operated exclusively for charitable purposes as provided in
IRC §501(c)(3).
C. The CITY desires to establish a permanent Endowment Fund with the FOUNDATION which
shall be known as the Lakeshore Trails Improvement Fund (hereinafter referred to as the "FUND").
D. The FOUNDATION, pursuant to the terms of this AGREEMENT and the restrictions imposed
hereby, desires to accept donations to the FUND, and to administer and distribute the same in accordance
with the terms and conditions of this AGREEMENT.
1. Establishment of FUND. The FOUNDATION acknowledges receipt of $10,138.92 as the
initial property of the FUND. CITY and FOUNDATION acknowledge that none of the money donated is
CITY’S money, but rather are donations from individuals donating their tax refund monies, or individuals
making gifts directly to the FUND,
2, Property of the FUND. The FUND shall include the property received to establish the
FUND, such property as may later be transferred to the FOUNDATION from any source for inclusion in
the FUND and accepted by the FOUNDATION, and all undistributed income from the FUND. The
FUND shall be the FOUNDATION’S property held by it in its corporate capacity and shall not be
deemed a trust fund held by it in a trustee capacity. The FOUNDATION shall have the ultimate authority
and control over all property in the FUND, and the income derived therefrom, in accordance with the
Articles of Incorporation and Bylaws of the FOUNDATION (as they may be amended from time to time),
and the terms of this Agreement applied in a manner not inconsistent with said Articles and Bylaws.
3. Designation of Purposes. The FUND shall be used for the general support of the bike
trails which are located within City of Muskegon.
4, Distributions of Income. All or a portion of the spendable income (as defined herein) of
the FUND shall be distributed to CITY upon the written request of CITY, which may be submitted
periodically to the FOUNDATION. The request shall include a City Commission written resolution
approving the request for a distribution from the FUND.
5. Other Distributions. Distributions in excess of the spendable income of the FUND may
be made to the CITY as the FOUNDATION’S Board of Trustees determines. Recommendations for such
distributions may be made from time to time to the FOUNDATION by the CITY’s Commission as
provided in Paragraph 4 above. Excess distributions may be made only from the portion of the FUND’S
balance which represents contributions made by the CITY plus allocated investment realized/unrealized
gains and/or losses to such portion. Recommendations of the CITY’s Commission shall be solely
advisory and not binding on the FOUNDATION.
6. Successors to the CITY,
(a) The FUND will continue for the exclusive use and benefit of the successor or
surviving organization if the CITY merges or consolidates with another entity which is also a tax-exempt
organization.
(b) Upon dissolution of the CITY, the FUND shall continue for the benefit
of such other tax exempt organization as identified by the CITY Commission, providing such
identification is consistent with the charitable purposes of the FOUNDATION. Any designation made
under this section shall be in writing and shall be delivered by the CITY to the FOUNDATION prior to
the filing of legal dissolution of the CITY.
(c) If CITY fails to identify such other tax exempt organization or such
identification is not consistent with the tax-exempt status of the FOUNDATION, the FUND shall become
a part of the Unrestricted Endowment of the FOUNDATION.
7. Variance.
(a) The FOUNDATION agrees that if its Board of Trustees proposes to exercise the
variance power under Article VIII, Section (8) of the FOUNDATION’S Bylaws, the exercise of such
power shall not be effective earlier than at least 30 days after the FOUNDATION notifies CITY in
writing of (i) its intent to exercise such power and (ii) the manner in which the FOUNDATION proposes
to vary the purposes, uses, or methods of administration of the Fund. During the notice period, CITY
may advise the FOUNDATION of its views regarding the proposed exercise of thé power and take such
other action as it deems appropriate. If the FOUNDATION becomes aware of any other action instituted
or proposed by any person to vary the purposes, uses, or methods of administration of the FUND, it will
promptly notify the City Commission.
(b) If the FOUNDATION ceases to be a qualified charitable organization or if the
FOUNDATION proposes to dissolve, the assets of the FUND shail, after payment or making provision
for payment of any liabilities, properly chargeable to the FUND, be distributed to CITY. If CITY is not
then a qualified to receive such monies, said assets shall be distributed in such manner and to such
organization or organizations in Muskegon County as satisfies necessary requirements and serves
purposes similar to those of the CITY.
(c) Notwithstanding anything in this Agreement or in the FOUNDATION’S Articles or
Bylaws to the contrary, the FOUNDATION agrees not to exercise the modification provisions contained
in Article VII of its Bylaws except to the extent and as may be required from time to time by the laws of
the State of Michigan or by the Internal Revenue Code, including the rules and regulations with respect
thereto, in order to qualify the Organization Endowment Fund as a component part of the
FOUNDATION. Internal Revenue Service regulations presently require that any restriction or condition
may be modified if it becomes unnecessary, incapable of fulfillment, or inconsistent with the charitable
needs of the Muskegon County area.
8. Definitions and Construction.
(a) As used in this Agreement:
(i) “Qualified charitable organization” means an organization described
in §501(c)(3) and which is other than a private foundation under §509(a) of the Internal Revenue
Code.
(ii) References to any provision of the Internal Revenue Code shall be
deemed references to the U.S. Internal Revenue Code of 1986 as the same may be amended from
time to time and the corresponding provision of any future U.S. Internal Revenue Code.
(iti) "Spendable income” means the amount determined under the spending
rule policy being used by the Foundation for its component Funds (less fees).
(b) It is intended that the FUND shail be a component part of the FOUNDATION
and that nothing in this Agreement shall affect the status of the FOUNDATION as an entity which is a
qualified charitable organization, This Agreement shall be interpreted in a manner consistent with the
foregoing intention and so as to conform to the requirements of the Internal Revenue Code and any
regulations issued pursuant thereto applicable to the intended status of the FOUNDATION.
(c) Each Fund is charged two fees. One is the investment manager fee, which is
negotiated with the various managers and may vaty from year to year, This fee is currently included in
the total net investment gains and/or losses that are applied to the FUND quarterly. The second is a
FOUNDATION administrative fee for the FUND which is currently at .5% and reviewed annually, If
there are transfers of property to the Fund on any day after the first day of the Foundation’s fiscal year,
only a pro-rata portion of the annual fees will be charged against the Fund.
9. Gift Acknowledgments. The Foundation shall make all information with respect
to the FUND available to CITY during normal business hours of the FOUNDATION, or on-line, with
authorization, but not limited to, name, address, amount of gift and restrictions on gift, if any.
10. Copies of AGREEMENT.
The CITY and the FOUNDATION may furnish copies of this AGREEMENT to other potential
donors to the FUND to demonstrate the protocol and procedures that have been put in place with regard to
the administration and disbursement of the FUND.
The Parties execute this Agreement by its duly authorized officers effective as of the day and year above
as evidence of their agreement,
LAKESHORE TRAILS IMPROVEMENT FUND
COMMUNITY FOUNDATION for MUSKEGON COUNTY
By: Clam
Chris A. McGuigan, President/CEO S
kAdvIp\funds\agreements\20 | 2\lakeshoretrailsimprovementorgfind-cityofinuskcgon.doc
COMMUNITY FOUNDATION for MUSKEGON COUNTY
ORGANIZATION ENDOWMENT FUND AGREEMENT
City of Muskegon Parks Fund
Amendment
AGREEMENT made ft pril 4 2018, between the City of Muskegon (the
"Donor") and the Community Foundation for Muskegon County (the "Foundation"), a
Michigan non-profit corporation.
This Amendment supersedes entirely the prior Muskegon Skate Park Fund Agreement
between the Donor and the Foundation dated June 28, 2016. The purpose of this
Amendment is to change the fund to an Organization Endowment Fund, and to change
the name of the Fund. Agreement language has been updated to be consistent with
current agreements.
This agreement is made with reference to the following facts:
A. The Donor is presently a qualified tax-exempt organization (as defined herein).
B. The Foundation is a publicly-supported community foundation, meeting the public
support test of IRC §509(a) and organized and operated exclusively for charitable
purposes as provided in IRC §501(c)(3).
C. The Donor desires to establish a permanent Endowment Fund with the Foundation
which shall be known as the City of Muskegon Parks Fund (the "Fund’).
D. The Foundation, pursuant to the terms of this agreement and the restrictions imposed
hereby, desires to accept the initial contribution of Donor as well as any subsequent
donations to the Fund, and to administer and distribute the same in accordance with
the terms and conditions of this agreement.
1. Establishment of Fund. The Foundation acknowledges the balance of the Fund as of
December 31, 2017 was > 4, &boO.Sb
2. Property of the Fund. The Fund shall include the property received to establish the
Fund, such property as may later be transferred to the Foundation by Donor or from any
other source for inclusion in the Fund and accepted by the Foundation, and all ’
undistributed income from the Fund. The Fund shall be the Foundation’s property held
by it in its corporate capacity and shall not be deemed a trust Fund held by it in a trustee
capacity. The Foundation shall have the ultimate authority and control over all property in
the Fund, and the income derived therefrom, in accordance with the Articles of
incorporation and Bylaws of the Foundation (as they may be amended from time to time),
and the terms of this Agreement applied in a manner not inconsistent with said Articles
and Bylaws.
3. Designation of Purposes. The Fund shall be used for the general support of parks and
recreation within the City of Muskegon.
A. Distributions of Income. All or a portion of the spendable income (as defined herein) of
the Fund shall be distributed to Donor upon the written request of Donor, which may be
submitted periodically to the Foundation. The request shall include a Board of Directors’
written resolution or minutes from a meeting approving the request for a distribution from
the Fund.
5. Other Distributions. Distributions in excess of the spendable income of the Fund may
be made to the Donor as the Foundation’s Board of Trustees determines.
Recommendations for such distributions may be made from time to time to the
Foundation by the Donor’s Board of Directors as provided in Paragraph 4 above. Excess
distributions may be made only from the portion of the Fund’s balance which represents
contributions made by the Donor plus allocated investment realized/unrealized gains
and/or losses to such portion. Recommendations of the Donor’s Board shall be solely
advisory and not binding on the Foundation.
6. Successors to the Donor.
a. The Fund will continue for the exclusive use and benefit of the successor or surviving
organization if the Donor merges or consolidates with another entity which is also a
qualified tax-exempt organization under the Internal Revenue Code.
b. Upon dissolution of the Donor, the Fund shall continue for the benefit of such other
qualified tax-exempt organization as identified by the Donor’s Board of Directors,
providing such identification is consistent with the charitable purposes of the
Foundation. Any designation made under this section shall be in writing and shall be
delivered by the Donor to the Foundation prior to the filing of legal dissolution of the
Donor,
c. If Donor fails to identify such other qualified tax-exempt organization or such
identification is not consistent with the tax-exempt status of the Foundation, the Fund
shall become a part of the Unrestricted Endowment of the Foundation.
7. Variance. ;
a. This Agreement is subject to the Foundation’s authority to vary the terms of the gift as
stated in Article VIII, Section (8) of the Foundation’s Bylaws.
b. The Foundation shall promptly notify the Donor of any decision made to exercise the
variance power. Notification of the exercise of the power shall be delivered in writing
to the last known address of the Donor within 30 days following the Board’s decision.
The Foundation shall also notify the Donor if it becomes aware of any other action
instituted or proposed by any person to vary the purposes, uses or method of
administration of the Fund.
c. lf the Foundation ceases to be a qualified tax-exempt organization or if the
Foundation proposes to dissolve, the assets of the Fund shall, after payment or
making provision for payment of any liabilities properly chargeable to the Fund, be
distributed to Donor. If Donor is not then a qualified tax-exempt organization, said
assets shall be distributed in such manner and to such organization or organizations
in Muskegon County as satisfies the requirements of a qualified tax-exempt
organization and serves purposes similar to those of the Donor.
8. Definitions and Construction.
a. As used in this agreement:
i. “Qualified tax-exempt organization” means an organization described in
§501(c)(3) and which is other than a private foundation under §509(a) of the
Internal Revenue Code, and a governmental entity or an affiliated entity
exercising an essential governmental function.
ii. References to any provision of the Internal Revenue Code shall be deemed
references to the U.S. Internal Revenue Code of 1986 as the same may be
amended from time to time and the corresponding provision of any future
U.S. Internal Revenue Code.
iii. "Spendable income" means the amount determined under the spending rule
policy being used by the Foundation for its component Funds (less fees).
b. Itis intended that the Fund shall be a component part of the Foundation and that
nothing in this agreement shall affect the status of the Foundation as an entity which
is a qualified charitable organization. This agreement shall be interpreted in a
manner consistent with the foregoing intention and so as to conform to the
requirements of the Internal Revenue Code and any regulations issued pursuant
thereto applicable to the intended status of the Foundation.
c. Foundation will charge an annual administrative fee to the Fund, currently 0.5% of the
average fund balance. Foundation also may charge an extra-ordinary fee, reasonable
in amount, for services to the Fund which are requested by the Donor and are a
significant and unusual administrative or economic burden to the Foundation. During
any quarter that the Fund balance is less than $10,000, a $50 service fee may be
charged. Fees are deducted from the Fund. If Donor transfers property to the Fund
on any day after the first day of the Foundation’s fiscal year, only a pro-rata portion of
the annual fee will be charged against the Fund. Donor further understands the fee
schedule is subject to modification and may periodically be evaluated and adjusted by
the Foundation’s Board of Directors.
9, Gift Acknowledgments. The Foundation shall make all Donor information with respect
to the Fund available to Donor during normal business hours of the Foundation, or online,
with authorization, but not limited to, name, address, amount of gift and restrictions on
gift, if any.
10. Copies of Agreement. The Donor and the Foundation may furnish copies of this
agreement to other potential Donors to the Fund to demonstrate the protocol and
procedures that have been put in place with regard to the administration and
disbursement of the Fund.
The Parties execute this Agreement by its duly authorized officers effective as of the day and
year above as evidence of their agreement.
City of Muskegon
By: ——_
"Steve Gawron, Mayet
Community Foundation for Muskegon County
By: Chin beet;
Chris A. McGuigan, PresidentiCEO
k:Advip\funds\amendments-changes-dissolutions\2018\muskegon parks amend 1-2018.docx
COMMUNITY FOUNDATION for MUSKEGON COUNTY
NON-ENDOWED DESIGNATED FUND AGREEMENT
Celebration Square Splash Pad Fund
AGREEMENT made December 14, 2019, by the Community Foundation for Muskegon County (the
“Foundation”), a Michigan nonprofit corporation.
The Foundation transfers $10,000.00 to be held by the Foundation to establish a non-endowed,
designated fund known as the Celebration Square Splash Pad Fund (the “Fund’). Donors at any
time may make contributions to the Foundation designated for addition to the Fund.
It is the intent of the Foundation that the Fund be held in perpetuity and that income and
principal, in accordance with the Foundation's spending policy, be primarily used to support the
maintenance, upgrades, and expenses related to the Splash Pad at Celebration Square. Funds
can also be used to support maintenance of other public art pieces.
Foundation will charge an annual administrative fee to the Fund, currently 1.0% of the average
fund balance. Fees are deducted from the Fund. If property transfers to the Fund on any day
after the first day of the Foundation’s fiscal year, only a pro-rata portion of the annual fee will be
charged against the Fund. The fee schedule is subject to modification and may periodically be
evaluated and adjusted by the Foundation’s Board of Directors.
It is understood and agreed the Fund shall be owned by the Foundation and held by it in its
normal corporate capacity. It shall not be deemed a trust fund held by the Foundation in a
trustee capacity. The Foundation’s Board of Trustees shall have the power to modify any
restriction or condition on the distribution of funds for any specified charitable purposes or to
specified organizations if, in the sole judgment of the Board (without the approval of any trustee,
custodian, or agent), such restriction or condition becomes, in effect, unnecessary, incapable of
fulfillment, or inconsistent with the charitable needs of the community or area served.
Foundation accepts the property transferred to it and agrees to hold, administer, and distribute it
as provided in this agreement.
Celebration Square Splash Pad Fund
Community Foundation for Muskegon County
OG. &
me “pe President/CEO
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K:\DVLP\Funds\Agreements\2019\Celebration Square Fund 12-19
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