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HomeMy WebLinkAboutCC-11-18-24-05 Creation of Joint Committee to Evaluate Related Entities SPONSOR: Worrell This Resolution was prepared by Samantha Karn, on November 11, 2024, at 1:00 p.m. No subsequent revision to this Resolution has been reviewed by Ms. Karn for legal sufficiency or otherwise. RESOLUTION CC 11-18-24-05 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, CREATING AN AFFILIATE REVIEW COMMITTEE. Synopsis: This Resolution authorizes the creation of a joint committee of the executive and legislative branches to evaluate the purpose, governance and tax structure and related fiscal and risk aspects of all nonprofit corporations and community development corporations that are affiliates of the City of Carmel. WHEREAS, the Mayor of the City of Carmel and the City Council are co-equal branches of municipal government that each have a vested interest in ensuring that affiliated nonprofit corporations and community development corporations (together “Affiliated Entities”) operate in compliance with their governance documents and federal tax laws; and WHEREAS, the Mayor and the City Counsel have both received questions relating to the governance, tax, operations, risks and fiscal impacts of the Affiliated Entities and both parties desire to understand the impact that these Affiliated Entities have upon the City and to provide full transparency to the taxpayers of the City regarding the City’s investment of dollars and staff time in supporting these Affiliated Entities. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Carmel, Indiana, as follows: Section 1. The foregoing Recitals are incorporated herein by reference. Section 2. Pursuant to Carmel City Code 3-29(l), the Common Council hereby forms a committee known as the Affiliate Review Committee (the “Committee”). The Committee will have six (6) members with three (3) members appointed by the Mayor (with the Mayor serving on the Committee in one (1) of her three (3) appointed spots) and three (3) members of the Common Council. The chair of the Committee shall be appointed from Common Council appointees, by a simple majority of the members of the Committee. Section 3. Since the finances of the Affiliated Entities will be a critical component of the Committee’s review process and many of the Affiliated Entities are in the middle of their taxable years, the Committee will commence its work on or after February 1, 2025 and will cease once all Affiliated Entities have been reviewed. The Committee will meet at least monthly, with meetings to be called by the chair of the Committee or a majority of all Committee members. Section 4. To ensure full transparency to the community, the Committee will issue a final report with regard to each Affiliated Entity that it reviews. The report will provide a summary of (a) the purpose of the entity as expressed in its governance documents and any tax records; (b) the governance structure for the Affiliated Entity; (c) the federal tax requirements that pertain to such Affiliated Entity; (d) the total cash compensation of the executives of the Affiliated Entity; (e) any risks that inure to the City by virtue of the activities of the Affiliated Entity; (f) a historical Docusign Envelope ID: CC89333B-AF74-44B3-8953-5FBD47055E74 SPONSOR: Worrell This Resolution was prepared by Samantha Karn, on November 11, 2024, at 1:00 p.m. No subsequent revision to this Resolution has been reviewed by Ms. Karn for legal sufficiency or otherwise. record of the investments that the City has made to each Affiliated Entity, both in terms of dollars and staff time by City employees; and (g) a current balance sheet of the Affiliated Entity’s assets and liabilities. Section 5. The Mayor’s office will present an executive review of all governance and tax structures of the Affiliated Entities at the Committee’s first meeting. The Mayor's office will make available all resources and documents pertinent to the Committee's work, pending the requests are reasonable in time/cost, relevant to the Committee’s scope and do not violate attorney- client privilege. Section 6. Pursuant to Carmel City Code 3-28(b), the Committee is authorized to engage an independent law firm to support the Committee’s efforts as outlined in this Resolution, with the selection of any law firm to be made by the affirmative vote of a simple majority of the members of the Committee. Docusign Envelope ID: CC89333B-AF74-44B3-8953-5FBD47055E74 SPONSOR: Worrell This Resolution was prepared by Samantha Karn, on November 11, 2024, at 1:00 p.m. No subsequent revision to this Resolution has been reviewed by Ms. Karn for legal sufficiency or otherwise. SO RESOLVED, by the Common Council of the City of Carmel, Indiana, this ______ day of ______ , 2024, by a vote of _____ ayes and _____ nays. COMMON COUNCIL FOR THE CITY OF CARMEL Anthony Green, President Adam Aasen, Vice-President Jeff Worrell Matthew Snyder ______________________________ Rich Taylor Teresa Ayers Anita Joshi Ryan Locke ______________________________ Shannon Minnaar ATTEST: ______________________________ Jacob Quinn, Clerk Presented by me to the Mayor of the City of Carmel, Indiana this day of ___________________________, 2024, at __________ ___. M. Jacob Quinn, Clerk Approved by me, Mayor of the City of Carmel, Indiana, this ____ day of ___________________________, 2024, at __________ ___. M. Sue Finkam, Mayor ATTEST: Jacob Quinn, Clerk Docusign Envelope ID: CC89333B-AF74-44B3-8953-5FBD47055E74 18th 19th 19th November A 11:30 11:15November A 09 November