Agenda - 12-13-2011 - 8f - Laserfiche WebLink

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2 FINANCIAL IMPACT: The project was funded via numerous grants and agencies to a total of $1.4 million. The first year's operational expense is partially funded within grant revenues with the partner counties agreeing to subsidize operations if revenues fall short of budgeted expenses for a period of three (3) years. Spinning the project off to non-profit status will allow the organization to move forward with fewer functional business constraints now applicable as a County operational function with Economic Development. It will also allow the management of the organization to transition to a user based board of directors and relieve the counties of further financial obligations associated with operations. A reasonable rental rate for the County building will need to be established along with appropriate lease agreements, insurance and other applicable considerations. If the County continues to provide administrative support (accounting, insurance, and personnel functions), some type of agreement and appropriate overhead charge will need to be established. Arrangements may also be necessary for the facility equipment, some of which may be linked to grants the County received for the project. The counties are currently obligated to subsidize operations for a period of three (3) years based on annually approved budgets regarding expenses and estimated income fees to be paid by users of the facility. After that time frame or before, the non-profit, if successful, will no longer be a financial obligation to the four county partners unless otherwise agreed to by the appropriate elected boards. There will be minor expenses associated with registering the new non-profit with the North Carolina Secretary of State's Office. RECOMMENDATION(S): The Manager recommends the Board: 1) Approve the proposed bylaws with amendments, if any; 2) Authorize the Manager and Attorney to establish a nonprofit corporation; 3) Direct the Manager and Attorney to establish a timeline for the appointment of the initial directors working with others involved in the initial formation of the non-profit; 4) Authorize the Manager and Attorney to develop the appropriate agreements between the non-profit for lease of the County-owned building along and a contract for the provision of administrative support services; 5) Direct the Manager and Attorney to work with the partner counties to secure their appointments to the initial board of directors of the organization; and 6) Authorize the Manager and Attorney to facilitate an orderly transfer of control and administrative management of the PFAPC operations to the new non-profit within the context of the upcoming FY 2012-13 County budget process.